Friday, September 01, 2006

Brand equity extension evident at APAA show; yet innovative products are scarce - Automotive Parts and Accessories Association

Margin play was the mantra at the 1997 APAA Show earlier this month as diverse vendors of products from waxes to oil filters introduced step-up products they say will make more margin dollars for retailers -- if consumers will pay the higher prices.

Another pronounced trend: a number of suppliers are expanding into one another's businesses, such as Kiwi adding car wax and wash and Valvoline adding automotive chemicals such as fuel injector cleaners.

Genuinely innovative products were few and far between. But a couple of standouts were a $600 mini-van console from Texas Saddlebags, Arlington, Texas, that includes 9-in. television (facing the rear to keep kids happy, headphones optional), and a $15 battery master switch from Littlefuse that shuts off power to deter auto theft.

Another is Jump Star, computerized jumper cables from Storm Enterprises, Fort Smith, Ark., priced at about $120. A computer chip eliminates the need to hook up cables in precise order to prevent flying critical engine control modules.


Also in electrical, Test Rite introduced an AC Delco-licensed emergency car battery booster for $30. It consists of dry storage batteries that are used to boost a dead battery through a cigarette lighter jack.

Perhaps inspired by Barney, the purple dinosaur, vendors introduced new lines of waxes and washes in purple, including Prestone, as it moves into the wax business with its Bullet Wax and Wash, and TurtleWax with its Purple Muscle heavy duty cleaner and degreaser. Blue Coral introduced Gel Wax and Gel Wash in purple.

In a step-up move, vendors are attempting to turn oil filters from a commodity into a more profitable item at about double the price. Fram introduced its Tough Guard step-up filter, Purolator introduced Pure One, and Mobil introduced its Mobil 1 premium filter. All will retail around $6.

Miniature light bulbs are another step-up category, with GE Lighting, Philips Lightingland Osram/Sylvania introducing long-life miniatures that will last twice as long as standard bulbs and cost about 20% more. In addition, GE introduced a line of miniature bulbs for major German and Japanese cars. Philips also introduced its Weather Vision halogen headlight replacement bulb that casts an amber light, eliminating the need for separate fog lights.

Waxes are another step-up category.

TurtleWax is moving upscale with its new Emerald line of wax, for about $10, and wash.

Prestone steps up even further with its new Bullet line of wax, about $14. Bullet comes in a distinctive purple package with pump applicator and applicator all in one. Riding the purple trend, its Bullet liquid wash is the regal hue.

Although TurtleWax failed in attempts to sell shoe polish, Kiwi, the shoe polish kingpin, is banking that it can capitalize on its brand equity by introducing a line of waxes, polishes and detailing accessories under its name, a Sara Lee brand. Prices will be mid-level, about $6 for wax, for example.

In another example of brand equity extension, Prestone introduced its Jump It portable power pack, a portable battery for jump starting cars. Century also introduced its version, Booster Pak, with a $100 retail.

Winner also hopes to restore retail margins with the new LX, self-locking version of its basic Club, $50 at retail, as well as a longer version, the Sport Club for minivans, trucks and SUVs, $55.

Just as Winner moved into locks, Masterlock moved into steering wheel locks with its Master Block that is good for mini-vans and SUVs, as well as cars.

In another example of brand equity extension, Fram introduced a line of tie-down and towing straps that carry its name.

With prompting from AutoZone, STP introduced a line of oils and lubricants for motorcycles, including Harley Davidson oil in its distinctive black and gold trade dress.

AutoZone hopes to capture the biker oil business that now flows to motorcycle specialty shops and dealers.

STP introduced a number of other products, including diesel fuel supplement and Son of A Gun protectant towels.

Also in recognition of the growth in diesel powered trucks, Pennzoil introduced a diesel engine treatment product under its Gumout brand. Gumout also introduced a Long Life Formula fuel system treatment. And Texaco introduced a Havoline motor oil for light diesel trucks and SUVs.

Exxon expanded its line of synthetic motor oils by introducing 5W50 viscosity, meeting demands for better lubrication at high temperatures.

In packaging, cast aluminum cans and bottles are all the rage to replace conventional steel for automotive chemicals. The advantage is that graphics and type are printed during casting.

Gunk uses cast aluminum for its new Every Oil Change Engine Treatment (about $3.99, less a $3 introductory on-pack coupon), as well as its 100% Pure Fuel System treatment.

Supplier consolidation continues apace. At the show, Pennzoil announced it had purchased Snap Automotive Products (chemicals) and Total Action Automotive Products (Classic brand waxes and washes). Also at the show, Quaker State announced acquisition of RainX (glass treatment and glass cleaner) for its expanding Blue Coral Slick 50 stable.



# posted by Medical Information : 3:38 AM
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