1. Marketing Executives Council February 20, 2007

2. Marketing Executives Council February 20, 2007 MEC Mission Statement To advance the automotive aftermarket supplier industry through collaborative marketing and communication solutions.

3. Marketing Executives Council February 20, 2007 MEC Purpose Forum for aftermarket supplier marketing executives to collaborate in helping improve the state and image of the North American manufacturer base. The Council will serve a major role in helping AASA communicate to key audiences and develop communication strategies and action items.

4. Marketing Executives Council February 20, 2007 How is the MEC Different? MEC was created strictly for aftermarket supplier marketing executives. MEC will focus on solving challenges specific to the North American aftermarket supplier and create opportunities to improve our collective image and strength.

5. Marketing Executives Council February 20, 2007 MEC Structure and Dues Council is organized under AASA, the aftermarket segment association of MEMA. An Advisory Committee was formed during 2006 to help establish the Council’s mission, objectives and structure. MEC Chairman: Brian Tarnacki, Director, Marketing – New Products, Federal-Mogul MEC Vice chairman: Brian Altenberger, Global Marketing Director, Delphi Product and Service Solutions

6. Marketing Executives Council February 20, 2007 MEC Structure and Dues Council Membership: Open to only AASA member companies Two council representatives per AASA member company Executive level membership

7. Marketing Executives Council February 20, 2007 MEC Structure and Dues Council Meetings: Four meetings per year (one per quarter) Three regular council meetings -working sessions One large annual conference (2008 target)  Open to other member personnel and industry executives Annual dues set at $2,000 per member company (2 executives per company limit)

8. Marketing Executives Council February 20, 2007 Today’s Agenda (Morning) 9:30 amAftermarket Data Discussion (Gardner) - Update on Other Aftermarket Data Initiatives 10:15 amAAPEX Update (Handschuh) 10:30 amBe Car Care Aware Update (Tarnacki) 10:45 amSupplier Image Enhancement (Owens) - Where Are We? - Why Are We There? 11:45 amBreak 12:00 pmLunch

9. Marketing Executives Council February 20, 2007 Today’s Agenda (Afternoon) 12:30 pmSupplier Image Enhancement (Breakout Sessions) - Where Should We Be? - How Do We Get There? 2:00 pmBreakout Group Presentations 2:45 pmBreak 3:00 pmMEC Summary of Breakout Groups Strategic Recommendations for AASA Board 4:00 pmAdjourn

10. Marketing Executives Council February 20, 2007 Optimizing Data for the Aftermarket Supplier Presented by: Chris Gardner, Vice President AASA

11. Marketing Executives Council February 20, 2007 Agenda Overview Data Types Data Communication Problems POS Data Digital IPR Issues Internal Data Management

12. Marketing Executives Council February 20, 2007 Overview Aftermarket Data – information in digital formats used to manage business, conduct commerce with trading partners or provide intelligence for planning

13. Marketing Executives Council February 20, 2007 Data Types Vehicle Attribute Product Attribute Catalog Application POS Data (transactional) Market Research Consumer / Behavioral

14. Marketing Executives Council February 20, 2007 Data Communication Problems Problems  Lack of consistency among resellers  Complicated standards (ACES)  Lack of executive mandates Solutions  Education  Receivers Group  IDM for manufacturers

15. Marketing Executives Council February 20, 2007 POS Data Uses Category Management Product Management Brand Management

16. Marketing Executives Council February 20, 2007 POS Data Issues Need better visibility of store-level transactions Need better forecasting capabilities Myriad of customer data being introduced No manufacturer influence Manufacturers pay for data that provides limited benefits

17. Marketing Executives Council February 20, 2007 POS Data - Vista Activant recorder at store/counter Application parts Look-ups, purchases, applications 1,300+ stores Available in several product categories Pricing range: $10,000 - $40,000 AASA Preferred Member Pricing

18. Marketing Executives Council February 20, 2007 POS Data - Industry Data Sources Activant store systems Wrenchead customer data Miscellaneous business systems Program groups Retailers

19. Marketing Executives Council February 20, 2007 POS Data - Industry AASA Task Force Seven manufacturers  Affinia Group, Cardone, Delphi, Federal- Mogul, Gates, Tenneco, Visteon Gain control over process (TecDoc model) Influence cost, format and delivery Aggregate data across all major sources

20. Marketing Executives Council February 20, 2007 POS Data - Industry Benefits Control/influence process Elimination/reduction of forced expenditures Simplified data integration Improved planning and supply chain processes

21. Marketing Executives Council February 20, 2007 Digital IPR Areas of Concern Electronic catalog Product attributes Pricing Images Line drawings

22. Marketing Executives Council February 20, 2007 Digital IPR VP International Business Development for AASA member company Member Input- VP International Business Development for AASA member company “We recently had a customer request that we remove our copyright statements on our catalog data. It’s not hard to guess what’s behind that request.”

23. Marketing Executives Council February 20, 2007 Digital IPR Issues Reverse engineering / “cherry picking” Counterfeiting  Brand copying  Part copying Category/product management  De-valuing full line suppliers  Off-shoring  Contract manufacturing

24. Marketing Executives Council February 20, 2007 Digital IPR Director of Information Technology of an AASA member company Member Input- Director of Information Technology of an AASA member company “The only way we’ll have successful seamless data flow in the future is if there are security controls on who is accessing the content.”

25. Marketing Executives Council February 20, 2007 Digital IPR Solutions Education Supply Chain

26. Marketing Executives Council February 20, 2007 Digital IPR Manager of catalog applications of an AASA member company Member Input- Manager of catalog applications of an AASA member company “Even with protective language in our customer agreements, we have to be willing to walk away from business if a customer uses our data IP to source with an off-shore supplier…so far sales hasn’t been willing to do that.”

27. Marketing Executives Council February 20, 2007 Digital IPR Michael Cardone Jr., Cardone Industries Member Input- Michael Cardone Jr., Cardone Industries “We must protect our intellectual property rights that we deliver through our value-add.”

28. Marketing Executives Council February 20, 2007 Internal Data Management Data environment internal to mfgs.  Multiple formats, owners, locations  Little if any synchronization with customers  Poor visibility Enables one version of the truth Required for seamless e-commerce with customers

29. Marketing Executives Council February 20, 2007 Internal Data Management IDM Program by MIS Council Webinar by two PIM providers Member survey Focus group activity White paper on best practices

30. Marketing Executives Council February 20, 2007 Internal Data Management Benefits Eliminates significant data mgmt costs Feeds executive dashboard applications Reduces errors in invoices, inventory, forecasting, etc. Helps prepare product data for customers Helps prepare for data synchronization

31. Marketing Executives Council February 20, 2007 AASA IT & Data Management Contact Information Chris Gardner 919-406-8830 cgardner@mema.org

32. Marketing Executives Council February 20, 2007 AAPEX Update Presented by: Steve Handschuh, President AASA

33. Marketing Executives Council February 20, 2007 Car Care Aware Update Presented by: Brian Tarnacki Director, Marketing – New Products Federal-Mogul

34. Marketing Executives Council February 20, 2007 Historical Perspective 2000AAIA Determined Need for Consumer Education -- $62 billion 2001Conducted viability research Created workgroup Began designing campaign 2002Finalized campaign, name, logo, Web site, etc. Incorporated Car Care Council Announced at AAIA Town Hall 2003Full campaign launch 2004$10 million publicity value 2005$12.8 million publicity value 2006Car Care Guide introduced, gas price frenzy

35. Marketing Executives Council February 20, 2007 2006 Media Value Budget $500,000 2005 – ROI $12.9 million 29% increase over 2004 2006 estimate – $15 million

36. Marketing Executives Council February 20, 2007 Car Care Guide Resource guide for vehicle maintainers Non-threatening; easy to use Two main sections  Typical Maintenance and Repair  Why I Need It; Typical Service; Questions To Ask  Vehicle Systems and Parts  What Is It; What Does It Do; Wear Factors; Symptoms Also contains checklist and index

37. Marketing Executives Council February 20, 2007 Field-Tested Three audiences  Female Vehicle Maintainers  Male Vehicle Maintainers  Shop Owners/Managers Geographically dispersed markets  St. Louis, Mo.  Philadelphia, Pa.  Phoenix, Ariz. Discussed attitudes toward vehicle ownership and maintenance; reviewed Car Care Guide mock-up

38. Marketing Executives Council February 20, 2007 Car Care Guide Marketing Added to online Media Kit Featured on “NASCAR Angels” Trade press house ads PRNewswire releases Newspaper syndicated articles Newspaper op-ed

39. Marketing Executives Council February 20, 2007 Car Care Guide Marketing Added to campaign POS starter kits Copies to broadcast and print media Polybag with Aftermarket Insider Lauren Fix in top 15 media markets New video segments & podcasts Meetings with groups & associations Polybag with February Brake & Front End

40. Marketing Executives Council February 20, 2007 Printing & Distribution Since June 2006… First million printed & distributed  Customized  Individual copies  Bulk orders Second million being printed

41. Marketing Executives Council February 20, 2007 Participating Accounts Alliance Group AutoZone NAPA Meineke CARQUEST Pronto Gemini More to come Focus has been on getting retailers, program groups and service chains to promote and distribute the guides to their customers…

42. Marketing Executives Council February 20, 2007 2007 Priorities Re-design Web site Build participation in Car Care Months Explore new technologies to reach Generation Next motorists Expand Car Care Guide distribution

43. Marketing Executives Council February 20, 2007 What Can Manufacturers Do? Provide “feet on the street” to promote the guides to parts stores and installers Include guide and order form in installer mailings Promote guide in customer newsletters / communications Help customers build programs Other ideas?

44. Marketing Executives Council February 20, 2007 Supplier Image Enhancement Presented by: Jon Owens Babcox

45. Marketing Executives Council February 20, 2007 Breakout Groups Discussion points: Prioritize target audiences What thoughts or behaviors do we want to reinforce or change? What strategies should we deploy to accomplish the above?

46. Marketing Executives Council February 20, 2007 Group 1 Kevin Burton (Four Seasons) Frank Oliveto (ADVICS) Dave Touchette (Cooper Bussmann) Chris Brant (AC Delco) Mitch Bolinsky (Permatex) Laura Sullivan (Akebono) Rob Christi (Dayco)

47. Marketing Executives Council February 20, 2007 Group 2 Scott Howat (Affinia) Ray Swetman (Airtex) Tom Tecklenburg (Honeywell) Mark Sprague (NGK) Barry Harris (Timken) Meg Vanderlaan (Gates) Frank Murkowski (Tenneco)

48. Marketing Executives Council February 20, 2007 Group 3 Layne Gobrogge (Proliance) Bob Clark (Aisin) Don James (Continental Teves) Mark Boyle (Visteon) Randy Mordue (Akebono) Bill Dennie (Tenneco) Gary Nix (AP Exhaust)