Category Brief- Auto Care: Game Day May 2015

Overview
Total revenue for the U.S. automotive service and repair industry was forecast to increase 2.1% in 2014 to
$59.5B, and continue to improve year-over-year through 2019

In a fast-changing industry, many believe 2015 will be a crucial year for the automotive aftermarket. From
increasingly advanced in-vehicle technology to more savvy customers to rising costs of doing business,
there’s no shortage of obstacles facing an independent shop today.(Source: Ratchet + Wrench, January 2015)

Businesses in the "Auto Repair, Services and Parking" category, on average, spend 0.2% of their total sales
revenue on advertising (which equates to 0.8% of their profit margin) (Source: Schonfeld and Associates, Advertising Ratios
and Budgets, 2014)
Q3 Timing
 Summer Road Trips/StayCation
 Back-to-School
Services/Opportunities Include
 Oil Change/Quick Lubes
 Auto Aftermarket Shops
 Auto Dealers Service Departments
 AutoBody
 A/C
 Smog/Muffler Shops
 Brake Shops
 Tire Shops
 Transmission Centers
 Gas Stations
 Windshield Repair
 Stereo Repair
Target
•
According to a survey from RepairPal, 49% of auto repair shop owners believe that Millennials
are the generation that is least likely to routinely care for their vehicles, while Baby Boomers account for
the most car-care conscious group (62%).
o
These differences may also account for the way each generation approaches
understanding their automotive ownership experience, even contributing to their research and
overall understanding (or lack thereof) when it comes to finding a qualified mechanic.
(Source: RepairPal, February 2014)
Objective
• Drive traffic and sales for Advertiser X.
• Position Advertiser X as the premier car care company in the area.
• Develop the customer base and build loyalty and referrals.
Prospecting
Oil Change/Quick Lube:
•
Quick-lube facilities service an average of 37.8 cars per day (including inspections, repair work,
etc.)(Source: National Oil & Lube News, 2013)
•
According to a 2013 Auto Laundry News survey of fast-lube facilities, 80% of these businesses
advertise in some way. Media used most often (more than one answer possible):
o
Direct mail, 45%
o
Newspapers, 45%
o
Yellow Pages, 43%
o
Social media, 33%
o
Radio, 31%
o
Television, 12%
o
Billboards, 10%
(Source: Auto Laundry News, 2013)

The top oil change/auto service chains, based on number of locations in 2014:
1. Wal-Mart Tire & Lube Express, 2,461
2. Goodyear Tire & Service Network Outlets, 2,423
3. TBC Retail Group (includes Tire Kingdom, National Tire and Battery, Merchant's Tire and Auto
Center, Big O Tires, SpeeDee Oil Change and Tune Up, and Midas Auto Service Experts), 2,400
4. Firestone Complete Auto Care, 2,216
5. Meineke Car Care Center, 899
6. Monro Muffler Brake & Service (also includes Mr. Tire, Treadquarters Discount Tire and Autotire Car
Care), 882
7. Pep Boys, 800
8. Sears Auto Centers, 758
9. Aamco Transmissions & Total Car Care, 714
10. Quick Lane Tire & Auto Center, 695
(Source: National Oil & Lube News, 2014)

The top fast-lube chains, according to number of locations in 2014:
1. Jiffy Lube, 1,957
2. Valvoline Instant Oil Change, 903
3. Pennzoil 10-Minute Oil Change, 750
4. Kwik Kar, 396
5. Mobile 1 Lube Express, 314
6. Valvoline Express Care, 308
7. Havoline xpress lube, 300
8. Express Oil Change & Service Center, 201
9. Grease Monkey, 200
10. Phillips 66, 186
(Source: National Oil & Lube News, 2014)

Major U.S. companies include:
o Bridgestone Retail Operations (BSRO), headquartered in Bloomingdale, IL, 2014 sales of
$2.57B
 The U.S. retail arm of Japan-based tire giant Bridgestone owns and operates about
2,200 service centers across the U.S. under the Firestone Complete Auto Care,
Expert Tire, Tires Plus, and Wheel Works banners.
 BSRO's stores offer a variety of automotive repair services, including drive train,
engine, heating and cooling, steering, and suspension maintenance, as well as tire
sales.
 The business serves both consumers and commercial clients.
 BSRO (formerly BFS Retail & Commercial) also maintains its own credit card
operation, Credit First National Association.
o Jiffy Lube, headquartered in Houston, TX
 A leading provider of oil changes, the company boasts more than 2,100
outlets throughout North America that are mostly franchised.
 The rest of its locations are company-owned and operated.
 Besides oil changes, Jiffy Lube facilities provide maintenance services for air
conditioning, fuel systems, and transmissions.
 At some of its locations, it also performs inspections and emissions testing, repairs
windshields, and rotates tires.
 The company serves vehicle fleet operators, as well as individual consumers.
 Jiffy Lube is a subsidiary of Shell Oil Company.
o Meineke Car Care Centers (formerly Meineke Discount Mufflers), headquartered in
Charlotte, NC, 2014 sales of $10.8M
 900-plus franchised stores in the U.S., Canada, Mexico, Saudi Arabia, South Korea,
and China.
 Meineke repairs brakes, aligns wheels, installs tires, and provides factory-scheduled
maintenance, among other services.
 From the company website, customers can learn about vehicle maintenance and
safety, print coupons, and apply for the Meineke credit card.
 Meineke is owned by Driven Brands, which also franchises the Maaco and Econo
Lube 'N Tune brands, among others.
o Midas, headquartered in Itasca, IL, 2014 sales of $67.8M
 In addition to focusing on brake and exhaust system services, the company's
facilities offer routine maintenance (oil changes, fluid replacements) and work on
suspensions, shocks, and struts.
 The Midas network includes nearly 2,250 franchised and company-owned stores in
13 countries, including almost 1,500 locations throughout the U.S. and Canada.
 In addition to these, the company has 160-plus quick-lube and maintenance shops
operating under the SpeeDee Oil Change banner in the U.S. and Mexico.
 Tire and auto repair company TBC Corporation owns Midas.
o Monro Muffler Brake, headquartered in Rochester, NY, 2014 sales of $831.43M
 The company provides a full range of brake, tire, exhaust system, suspension, and
steering and alignment services at more than 800 automotive repair shops.

Its operations span nearly 20 states in the Northeast and Midwest and include
Monro Muffler Brake & Service, Mr. Tire, Tread Quarters, Autotire Car Care Center,
and Tire Warehouse.
 Along with under-car work, the company offers air conditioning maintenance, state
inspections, and scheduled maintenance services, including fleet maintenance.
 Tire replacements and service account for more than 35% of sales.
 Monro Muffler Brake services more than 4.4MM vehicles annually.
o Pep Boys, headquartered in Philadelphia, PA, 2014 sales of $2.07B
 The company sells brand name and private label auto parts, and provides select
services through some 800 stores in 35 states and Puerto Rico.
 Pep Boys stock about 25,000 car parts and accessories, including tires, and
combined, operate more than 7,500 service bays for vehicle repairs, inspections,
and parts installations. It also offers credit and parts delivery to commercial
customers, such as repair shops, fleet operators, schools, and municipalities.
(Source: Hoover’s 2015)
 Companies in the related automotive parts and accessories category operate physical retail
establishments that sell automobile parts, supplies, batteries, and lubricants. The top 4 retailers
are:
o Advance Auto Parts, headquartered in Roanoke, VA, 2014 sales of $6.49B
 #1 provider of automotive aftermarket parts in North America.
 Serving both the do-it-yourself (DIY) and professional installer markets, AAP
operates more than 3,830 stores under the Advance Auto Parts, Advance
Discount Auto Parts, and Western Auto banners nationwide, Puerto Rico, and
the Virgin Islands, as well as an online site.
 Its stores carry brand-name replacement parts, batteries, maintenance items,
and automotive chemicals.
o AutoZone, headquartered in Memphis, TN, 2014 sales of $9.48B
 With more than 5,300 stores in the U.S. and Puerto Rico, it's the nation's #1
auto parts chain.
 Stores sell hard parts (alternators, engines, batteries), maintenance items (oil,
antifreeze), accessories (car stereos, floor mats), and non-automotive
merchandise under brand names, as well as under private labels.
 AutoZone's commercial sales program distributes parts and other products to
garages, dealerships, and other businesses.
o O’Reilly Automotive, headquartered in Springfield, MO, 2013 sales of $6.6B
 The fast-growing company sells automotive aftermarket parts (both new and
remanufactured), maintenance supplies, professional service equipment, tools,
and accessories.
 Operates more than 4,160 stores in 40-plus states and online.
 Many O'Reilly Automotive stores also offer customers a range of services,
including oil and battery recycling, battery testing, paint mixing, and tool rental.
o Pep Boys (see above)
(Source: Hoover’s 2015)
Case Studies
See Auto After Market Case Studies http://alphacasestudies.blogspot.com/
Why Radio
Radio Reaches adults 18+ households who purchased the following in the past 12 months:
Total AA
Hispanic
Auto glass replacement/repair
92%
92%
95%
Oil filter/oil change
91%
92%
92%
Tires
92%
93%
93%
Car battery
91%
92%
93%
Service/repair on car radio/stereo
94%
94%
96%
Muffler - past 12 months
92%
93%
94%
Transmission repair
92%
93%
92%
Brake repair
92%
93%
93%
Paint or body work
92%
91%
92%
Service on shocks/struts
92%
92%
93%
Anti-freeze/coolant
91%
91%
92%
Source: Scarborough USA+ 2013 Release 2 (August 2012-September 2013)