APRIL 2016
Auto Plus customer in car
Welcome to the April Edition of News and Views

LETTER FROM THE CEO: BRENT WINDOM

Brent Windom headshot photo

In the two months since Auto Plus SM and Pep Boys have joined forces, we have made remarkable progress in integrating the two companies. Here is an overview of some of the recent milestones in our integration:

These are some impressive achievements early on in our integration process. We have more work to do, but we are off to a great start. Thanks to everyone who made them possible.

We anticipate many more accomplishments to celebrate in the coming weeks and months as we continue on this path together. We appreciate your continued support and focus on delivering First Choice, Expert Service to customers.

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LEADERSHIP TEAM INTERVIEW:
XAN SWENSON — DIRECTOR, MARKETING

This month, we sat down with Auto Plus’ new Director of Marketing, Xan Swenson, to discuss her goals for the company and her plans to get there.

  1. What is your role at Auto Plus?
    1. I currently serve as Director of Marketing for Auto Plus. In this role, I am responsible for all aspects of marketing. I am leading a team of talented people to deliver powerful tools, promotions and campaigns to build both the Auto Plus business, as well as the businesses of our independent customers. It’s a really great place to be.
  2. What brought you to Auto Plus?
    1. I was eager to join the Auto Plus family because of its unique positioning in the industry, as well as its trajectory for the future. The opportunity to work both internally and with our independent store owners and technicians was really enticing. We’re on the cusp of a very exciting time for this company — a company that is determined to keep customers first as we move forward.
  3. What is your first plan of action for the company?
    1. First and foremost, we need to complete the branding transition that started months ago. Though the current news is all around the integration with Pep Boys, we have to focus on completing our transition from Uni-Select. Right now, we’re in the “heavy lifting” portion of changing over signage on more than 1,000 corporately owned and independent locations. This is a massive project that will require a concerted effort through the end of May.
  4. How will the Auto Plus and Pep Boys branding be managed?
    1. The question about branding or the management of both brands is not a simple one to answer. Making these types of decisions requires significant consideration of a number of factors and data analysis. The organization is currently undergoing a comprehensive brand study to determine the equity of each brand. The study will look at existing data as well as new information collected from customer and non-customer surveys and focus groups. Based on learnings from this brand study, the executive leadership will make informed decisions on appropriate next steps, which will likely determine how each brand is managed.
  5. How will your team’s efforts influence or bolster the success of Auto Plus?
    1. My goal is to work closely with customers, both external and internal, to better understand the needs of each group. With that understanding in place, we can bolster the value offered to customers, helping drive growth and eliminate any issues that might exist day-to-day. Because our marketing team at Auto Plus has such a passion for the industry, we’re truly motivated to develop tools for success.
  6. What can customers expect this year in terms of marketing support as you roll out with new company branding?
    1. The specific programs around branding will be determined after the brand study is completed and the new strategy is finalized. That being said, we have powerful programs today that help drive our customers’ businesses, and I expect those programs to continue. We understand that, when our customers succeed, we succeed, and the entire organization is committed to helping our customers exceed their business goals.
  7. How is the marketing team preparing to leverage data in their decision making?
    1. I come from a school of thought that relies heavily on data to make the best decisions possible and intend to implement this approach in all of Auto Plus’ marketing efforts. In fact, I’ve recently brought on a marketing analyst whose primary responsibility will be to assist in evaluating the effectiveness of our marketing, branding and promotional programs. I want to ensure we’re putting our efforts toward the right projects that are truly delivering value to our customers and their businesses.
  8. How will you measure success?
    1. As we move forward, it’s my intention to incorporate specific, measurable and timely goals to each project we undertake, whether it be a new sales promotion or a new program we launch with our customers. Our success will be measured by goals and criteria determined right from the beginning.
  9. What are your goals for Auto Plus?
    1. That’s pretty easy: to be the “First Choice, Expert Service” provider for our family of customers at every level of the automotive aftermarket. That means delivering value and expertise to our customers every day.
  10. What are you most excited about for the future of Auto Plus?
    1. The events over the past year — becoming part of Icahn Enterprises L.P. and adding Pep Boys to the family — puts us in a very unique position to continue growth, drive our Auto Plus brand in the automotive aftermarket and, through co-branding with our customers and providing them business-building programs, create a professional network like no other.
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PROGRAM UPDATES

It’s long been said in the marketing industry that peer-to-peer referrals are the best kind of advertising. For automotive repair facilities, this statement is especially true. Business typically comes from customer referrals — individuals who share their positive experiences with others. Today, as the shift to digital communication continues to grow, most consumers are making their shopping and service decisions based on online referrals and reviews.

Consider the following statistics:

It’s clear that automotive repair facilities that wish to acquire new business among an increasingly younger customer base will need a strategic online presence.

This year, the Auto Plus Professional Service Center program launched a new marketing tool to boost online presence and increase service centers’ competitive edge in their local markets.

We’ve partnered with AutoMD, the mega force behind the repair center search engines found on AutoTrader, Yahoo Auto, MSN Autos and Kelley Blue Book, to offer this tool. It will provide our participating customers with powerful visibility to millions of consumers. This user-friendly platform will allow centers to offer customizable and competitive instant quotes for repair jobs and collect consumer reviews, all on a 24/7 basis. The average ticket for a repair job booked through AutoMD is in the $300 – $450 range.

Now through the end of 2017, Auto Plus Professional Service Center program members may elect the AutoMD consumer marketing program for a reduced fee.

You can find more information on the AutoMD program in the Auto Plus Professional Service Center program guide. If you are interested in becoming an Auto Plus Professional Service Center program member, please contact your Auto Plus sales representative.

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THE ADVANTAGES OF CO-BRANDING:
XAN SWENSON

A new pair of Skechers ® shoes with Star Wars imagery. Fiery Doritos ® Locos Taco Supreme at Taco Bell ®. Jack Daniel’s ® flavored food options at TGI Fridays SM.

Every single day, we experience products and advertising that bring two great brands together for one cause or another. Often, it could be two major brands that are each strong enough on their own to drive new customers and repeat purchase decisions — yet, they choose to team up. Why would they do that? CO-BRANDING! Co-branding is a marketing partnership between at least two different brands of goods or services.

So, let’s translate this into our industry. Co-branding is a beneficial tactic used to create value for each of the brands participating. For the independent stores, shops and technicians that we work with at Auto Plus, co-branding is part of the value we bring to the table. When owners of well-known, local businesses (let’s say Xan’s Auto Parts in Anytown, USA) decide to join the Auto Plus family as an independent partner, that business is deciding to co-brand in order to bring even more opportunity, equity and “scale” to their business.

Think about this: Someone moves to your community because of business or family needs. They see that Xan’s Auto Parts is flying the Auto Plus flag and think to themselves, “Hey, we had an Auto Plus in our last city. Good to know we have someone we can trust here, too.” Co-branding does not replace or diminish the strong brand that already exists — it simply gives it a sense of being part of a greater network and presents an opportunity to leverage the strengths of both brands. It also conveys the idea that both brands uphold the same standards of excellence and customer service.

Of course, being part of the Auto Plus extended “family” brings value beyond co-branding. Auto Plus offers enhanced marketing and sales-boosting tools (such as AutoMD), along with a variety of assurance programs that can establish a presence in the consumer’s mind and attract and keep customers.

Though Auto Plus is a relatively new brand, having just carved out from Uni-Select last year, it is built on a legacy of knowledge and expertise that will drive its growth well into the future. Our core values of Integrity, Passion and Pride are part of our collective DNA, being lived by example every day. We believe those core values are shared by our independent stores and shop teams — in fact, we believe the values are part of what draws new network partners to us. And it is demonstrating those same values to customers in our network that will continue to build the Auto Plus brand equity.

This is an especially exciting time to be part of the Auto Plus family. As we begin to move through our integration with Pep Boys, we are starting to uncover tools, synergies and opportunities from which both brands can benefit. As part of the integration process, we are conducting a brand study targeting each brand. This involves going out into the field and talking with customers, non-customers, competition, prospective customers and associates to determine the true strengths of each brand and organization so that we can put together the best strategy for the future — one that will benefit not only our collective customers and those employed by Auto Plus and Pep Boys, but the entire aftermarket industry.

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RECAP OF AUTO PLUS CUSTOMER SHOWS

Auto Plus kicked off 2016 with a series of regional customer shows to engage with independent store and service center owners across the country. Each event took place in an area that is highly concentrated with customers, driving optimal attendance. A total of 1,000 customers, manufacturers, aftermarket software representatives and associates came out for the shows this year.

The first show on the tour was held January 29 and 30 in Charlotte, NC. This event was a huge success, bringing in customers from Georgia, North Carolina, South Carolina, Virginia, West Virginia, Ohio and Tennessee. The next show took place in Indianapolis, IN, on February 19 and 20. This event attracted customers from Illinois, Ohio, Indiana and Missouri. Our third show was held in King of Prussia, PA, and attracted customers from all over the New England, New York, New Jersey and Baltimore areas. The next show in Bloomington, MN, March 18 and 19, had a good showing of customers from Minnesota, Wisconsin and Iowa. Most recently, the final show was held in Dallas, TX. Despite the poor weather, there was a tremendous showing of attendees to the trade show, as well as the training event. The warehouse staff went above and beyond the call of duty by preparing the Dallas Distribution Center for the show and then meeting and greeting customers and manufacturers at their car in the pouring rain. Customers came from across Texas, Oklahoma and Arkansas for this show, and as with all shows, a good time was had by all.

Each event commenced with a reception on Friday evening to welcome all attendees and allow them to network with others in the industry. Saturday started with a series of sessions to provide our customers, manufacturers and associates with insight and details on what is going on at Auto Plus. These shows are the first time associates have been able to meet with customers on a regional level since the acquisition of Auto Plus by Icahn Enterprises L.P. last summer, as well as the announcement of Auto Plus’ integration with Pep Boys in February. Therefore, it provided a great opportunity to give customers and manufacturers the most up-to-date information on the company, the future of our partnerships and an improved supply chain process, in addition to the latest product strategies and new marketing programs.

The guest speakers leading these sessions are experts in the field, such as Brent Windom, Mike Buzzard and Richard Mattiussi, who presented the company update and the Pep Boys integration plans. Scott Sangrey and Pete Bednarzyk shared the supply chain strategy and an update on warehouse operations, followed by Don Poole and Kevin Mack speaking to the group about product strategy. Furthermore, Al Mosher spoke about the new Paint, Body and Equipment program that he and Richard Mitchell have been working very hard on, and Xan Swenson and Mike Buzzard reviewed the Auto Plus branding program and the new elements of the Auto Plus Professional Service Center programs.

Auto Plus’ manufacturer partners were the focus of attention at our booth show, showcasing new and tried-and-true products while talking to customers about their specific needs. Attendees were able to visit with traditional aftermarket manufacturers, along with software companies, OE providers and paint and body specialists. Customers were able to take advantage of show specials only available for attendees.

The evening events included cocktail parties, formal dinners and customer award presentations. We recognize our valuable customers with sales awards for parts purchases ranging from $500,000 to $8 million.

We would like to thank all of our customers who have attended the shows this year, our manufacturer partners for their support, and our associates who helped make the shows a huge success!

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AUTO PLUS IN THE COMMUNITY

In February, Jorge Rosario, the store manager at Consumer Auto Parts/Auto Plus in Worcester, MA, and his staff collected food and other treats for students living at an orphanage in Bonao, a small city in the Dominican Republic. Their generous donation was matched by members of H.C.R.N., a local church with a large Hispanic congregation. By partnering with their community members, Jorge and his staff were able to send three large shipments of goods to the deserving kids.

The orphanage was extremely thankful for the donation, and Auto Plus is proud of Jorge’s efforts!

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“SUCCESSFUL COMPANIES HIRE
SUCCESSFUL ASSOCIATES”

MARCH

Congratulations to our dedicated associates who are celebrating their anniversary with Auto Plus! Whether you’re new to the team, or you’ve been with us for years, we thank you for your
continued support!

APRIL

Congratulations to our dedicated associates who are celebrating their anniversary with Auto Plus! Whether you’re new to the team, or you’ve been with us for years, we thank you for your
continued support!

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