Marketing Executives Council

1. Marketing Executives Council November 14, 2007

2. MEC Mission Statement Toadvance the automotive aftermarket supplier industry through collaborative marketing and communication solutions.

3. 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. Today’s Agenda • Welcome and Introductions (Tarnacki) • Review of Anti-trust guidelines (Bruno) • AASA Vision Conference 2008 (Cameron) • Overview and Update • Membership and Market Research (Spera) • Recruitment and Retention • Value Proposition • AAPEX Overview (Beck) • 2007 Show Review • AASA Involvement • Supplier Image (Cameron, Altenberger) • China / AAPEX Initiative • Standard of Excellence / Code of Ethics

5. Today’s Agenda • Lunch & Telephone / e-mail break • Breakout Sessions • AAPEX Show Committee (Beck) • AASA Membership – (Spera) • AASA Supplier Image –(Cameron & Arent Fox) • Breakout Group Reports (Group Leaders) • General Discussion – (Tarnacki) • Chairman & Vice Chairman – terms (Cameron) • Meeting format & frequency

6. AASA Vision Conference 2008

7. AASA Vision Conference 2008 Event: • Inaugural gathering of all AASA members Format: • General sessions w/ Keynote Speakers • Three Vision Sessions (Breakouts) • Networking Opportunities Location: • Orlando, Florida • Swan and Dolphin Resort Dates: • Thurs. 2/28/08- MEC • Fri. and Sat. 2/29-3/1/08- Vision Conference Registration Info: • $695 / Early Bird $595 extended to year-end • Additional team members $495 • On-line direct at www.aasavision.org

8. AASA Vision Conference 2008 Keynote Speakers / Topics: • Peter Marks, chairman, president & CEO, Robert Bosch Corp and other top executives speaking on – • Breaking New Ground within the Aftermarket Industry • Success Stories from Other Leading Global Industries • Where the New Horizon Is – The Future Emerging Markets • Direction of Future Automotive Technologies Vision Sessions of Focus: • Member Collaboration • Facilitators: Susan Ulrey, Tenneco & Dil Kulathum, Cardone • Education and Training • Facilitators: Mac McGovern, KYB & Doug Vidler, Delphi • Selling and Sourcing Globally • Facilitators: Jeff Brekke, Gates & Jeff Stauffer, Affinia

9. AASA Membership Recruitment and Retention

10. AASA Membership Overview AASA Mission: AASA serves as the voice of the automotive aftermarket suppliers and is a recognized industry change agent, promotes a collaborative industry environment, provides a forum to address issues and serves as a valued resource for members

11. AASA Membership Overview AASA Value Proposition • AASA leads the North American aftermarket supplier through the expanding global market place through these strategic areas of focus: • Government Affairs • International Opportunities and Challenges • North American Supplier Industry Image • and Industry Analysis • Industry Collaboration • Brand Protection and Intellectual Property Rights • Education and Training

12. AASA Membership Overview AASA Membership Summary • 248 manufacturing members • 80% of NA aftermarket manufacturers are members AASA Member Involvement • Product and Peer Groups (MEC, GAC, BPC, FPMC) • Tradeshows and Events • Industry Projects and Studies (ADV, Roundtables, Event Committees)

13. AASA Membership Overview AASA Member Recruitment • Why join AASA? • How do we promote AASA value to new members? • Best way to market to new potential members?

14. AASA Membership Overview AASA Member Retention • Member involvement • Member services • Member communications • New services and benefits

15. AAPEX 2007 Overview

16. AAPEX 2007 Overview Exhibitors: 2016 • Members: 973 • Non-members: 1030 • Comps (associations) 13 • New exhibitors 836 • Total booths 4825 2006 Comparison • Members: 45 • Non-members: -99 • Comps (associations) 1 • New exhibitors -9 • Total booths -176 Total registration 119,000* *Estimated Verified 2006 total: 115,329

17. AAPEX 2007 Overview WT Glasgow general comments: • Better show, more energy • Improved activity on Thursday • 21 Green Zone exhibitors: traffic disappointing, so considering moving it to the Parkway in 2008 • Registration lines cut by advance mailing of badges and lanyards • 31 IPR/counterfeit complaints: 6 companies and NHTSA (non-compliant lighting) • Expects to meet 2007 budget

18. AAPEX 2007 Overview AASA Activities: • Executive Breakfast: Highest attendance ever = 640 • News conference: MEC supplier image campaign, Special Report: “Direct Importing,” Direct Importing ad • AASA/NHTSA Seminar: 75 attendees • Executive Lunch with Ernst & Young: 30 attendees • AAIW/OAC International Reception: nearly 900 • AASA member services: • Member Center • Member Packets

19. AAPEX 2007 Overview MEC Discussion Topics: • Upcoming joint meeting with AAIA Marking Committee from 10 a.m.-3 p.m., Tuesday, Dec. 18, at Robert Bosch, Broadview, Ill. • Purpose: Develop AAPEX promotion and marketing to increase attendance and participation • Facilitated by trade show expert, Sam Lippman • Kathleen Schmatz of AAIA and Steve Handschuh of AASA slated to attend • AASA Show Committee • Chaired by Barry Harris, Timken • Holds first meeting today; future meetings TBD • Purpose: Assist AASA with all AAPEX-related matters and serve as counterpart to AAIA AAPEX Show Committee • What was your AAPEX 2007 experience? • Traffic, Logistics, Breakfast(s), etc.

20. AAPEX 2007 Overview AASA Board Comments: • Wifi connection still not working • Responsive to IPR/counterfeiters • Increased non-member exhibitor fees driving more international companies to join AAIA • Registration for non-exhibiting manufacturers will increase in 2008; registration rate will not (SEMA) • Demonstrations/”entertainment” – limited opportunity; no room at Sands

21. AAPEX 2007 Overview Joint Meeting with AAIA Marketing committee • 10 a.m.-3 p.m., Tuesday, Dec. 18 • Robert Bosch, Broadview, Ill. • Purpose: Develop AAPEX promotion and marketing to increase attendance and participation • Facilitator: Sam Lippman, well-known trade show expert • 11 MEC attendess to date: more needed Sign up today! Confirm travel arrangements with Jack Cameron

22. AASA Supplier Image

23. AASA Supplier Image • Direct Import Threat: • Special Report / White Paper – “Direct Importing: Do the Risks Outweigh the Reward?” • China Quality / AAPEX Initiative: • Committee: Brian Tarnacki, Brian Altenberger, Pam Krebs, Laura Sullivan, Mark Boyle, Theresa Spera • Task: Strike while China quality concerns are still making headlines – target AAPEX show • Result: Trade ad in AAPEX Show Daily – “Its Not About Where Products Are Made. It’s About Who Stands Behind Them.” • Original Ad: “AASA Assurance” – Your best assurance quality replacement automotive parts… supplier members of Automotive Aftermarket Suppliers Association. • AAPEX Press Conference – NHTSA Seminar

26. AASA Supplier Image • AASA Standard of Excellence: • Sara Bruno / Arent Fox reviewed other industry initiatives • Code of Ethics – Group consensus on the best method to pursue • Objections by some top execs question the role of AASA in such an undertaking • Improved Supplier Image is the end game • Breakout Session will take a deep dive • Strategic Plan • Build on momentum and positive feedback • Overcome objections

27. Breakout Groups

29. MEC Breakout Groups Group 1: AAPEX Show Committee (Beck) Barry Harris, chairman Brian Tarnacki Brian Couch Brian Altenberger Tony Battaglia Dil Kulathum Kevin Burton Meg Vanderlaan Group 2: AASA Membership and Market Research (Spera) Group 3: Supplier Standard of Excellence (Cameron)

30. 2007 In Review:Slides of AASA Supplier Standard of Excellence and Improving the Image of the NA Supplier

31. Communications Campaign (session 1) Universal advertising campaign that can be repurposed for all target audiences • Primary goal of campaign will be designed to elevate the North American Aftermarket Supplier • Secondary goal of campaign will be to promote AASA to industry, members and media • Get approval from AASA board of governors to create an RFP to put for bid of a complete ad campaign that would include the following: • Print ads • Franchise pieces • Web site • Public relations strategy and campaign • Advertising strategy for trade publications, financial publications and consumer media

32. AASA Supplier Standard of Excellence (session 1) • “Standard of Excellence” will encompass the value-added supplier elements • Create a logo / seal for North American suppliers to utilize on packaging, ads, collateral materials that will reinforce the “Standard of Excellence” that they adhere to in their products, businesses and operations • Criteria can be designed and analyzed by a third party firm and administered and managed by AASA

33. AASA Supplier Standard of Excellence Criteria (session 1) • Quality • Supply • Safety standards • Training • Product lifecycle management • Cataloging / pricing • Innovation / latest technology • Designed for the aftermarket • Warranty • We are the “parts” experts • We’re more efficient/profitable to do business • Intellectual property

34. Where are we? Why are we there? Are we getting there? Where could we be? How do we get there? Brand Planning Process

35. Where Are We? (session 1) • “Brands” are highly valued in the aftermarket... • However, we have lost: • share to OE dealers • share to LCC’s (Low Cost Countries) • control of Brands to retailers/distributors

36. Where Should We Be? (session 1) • Primary target: end user (professional installers / DIYers) • Other audiences: distributors/retailers, government, Wall Street, vehicle owners • Have them trust the aftermarket supplier • Build our credibility • Get credit for what we do • Regain share from the LCC’s and OEMs

37. How Do We Get There? (session 1) • Aftermarket supplier standard of excellence - value-added supplier • Code of conduct • Value-added standards: • Quality • Supply • Safety standards • Training • Product lifecycle management • Cataloging / pricing • Innovation / latest technology • Designed for the aftermarket • Warranty • We are the “parts” experts • We’re more efficient/profitable to do business with • Manpower • Intellectual property • Support with communications campaign • Focus on the positive • All sing from the same hymn book • Better IP protection • Better industry standards (data, quality…) • Enforce adoption Need to flesh out

38. Communications Campaign to enhance the Image of NA Supplier (session 2) Communications Campaign • How do we know we are getting there: Measure market share in North America pre and post by product line or by dealer share • Measurements: Interest/response level of other AASA members • Pre and post evaluations: Survey key buyers pre & post • Frequency: Every six months

39. Communications Campaign to enhance the Image of NA Supplier (session 2) Communication Phase 1: • Target audience: Suppliers. • Message: Include meaning, measurements and some information from surveys regarding differentiation. How to get certified, where to get more information • Assumption: Standard is determined.

40. Communications Campaign to enhance the Image of NA Supplier (session 2) Communication Phase 2: • Target audience: Buyers and technicians • Message: Informational regarding the standard • Assumption: Standard is determined and some suppliers already have it.

41. Communications Campaign to enhance the Image of NA Supplier (session 2) **Prior to communication, benchmark the current market to have a pre and post opinion regarding certification. Benchmark other industries (UL or JD Powers) to understand their communication process and their methods.

42. Criteria for Standard of Excellence (session 2) • Basic Criteria for Standard of Excellence • Product Quality • Must adhere to industry standards (ISO, TS) or proprietary standards • Supply proof for sourced product • Adhere to current safety standards • Carry product liability insurance • NHTSA standards, OSHA standards, etc. • No banned substances

43. Criteria for Standard of Excellence (session 2) • Basic Criteria for Standard of Excellence • Cannot engage in illegal activities or business practices • No IP violations • Training • Tech line • Provide Catalog • ACES compliant • Conduct e-commerce with customers

44. Criteria for Standard of Excellence (session 2) • Cost of qualification or application • AASA Member - Minimum fee or reduced fee • Non-members to pay a higher fee or equivalent of membership dues for their category • Who Can apply for Standard? • Any North American Aftermarket supplier • Have three different application/cost levels • Company (highest) • Product (middle) • Brand (lowest)

45. Results of Breakout Groups-“Top Five things that can be done NOW to Reinforce doing Business with a North American Supplier”

46. China Quality • Recent events involving toothpaste, dog food, toys and now tires highlight the need for special care when sourcing products from here or abroad. • Is all product coming from China poor? No • How can you ensure that the product you source meets rigorous standards for quality, reliability and safety?

47. Solution Source from experienced, global aftermarket suppliers • Quality/supplier certifications • Rigorous product testing • Engineering/manufacturing expertise • We stand behind our products • Training and technical support • Cataloging

48. Communication Vehicles • Ad • Press conference • AAPEX booths • Press release • Editorial campaign • PowerPoint • Collateral • Website • Value-add template (Proliance) • White paper