Functional Fluids Aftermarket Participants Utilize Key Strategies
3 May 1999
Frost & Sullivan: Automotive Functional Fluids Aftermarket Participants Utilize Key Strategies to Maintain and Build Market Share MOUNTAIN VIEW, Calif., May 3 -- Vehicle population growth,
the aging vehicle population, an increasing number of miles driven annually
per vehicle and a strong United States economy are a few of the drivers of the
aftermarket for automotive functional fluids. However, most segments are fully
saturated, and consumer neglect of fluid maintenance continues to limit sales.
According to new strategic research conducted by Frost & Sullivan
(http://www.frost.com), U.S. Automotive Functional Fluids Aftermarket, revenues for
the total market reached about $1 billion in 1998. Revenue growth within the
industry is expected to remain modest. Fluctuations are due mainly to the
antifreeze segment, which shifts in response to raw material price
fluctuations.
This new study by Frost & Sullivan, U.S. Automotive Functional Fluids
Aftermarket, focuses on fluid additions and replacements made in passenger
cars and light trucks with a gross vehicle weight rating of 14,000 pounds or
less. The functional fluids covered in this research include:
Antifreeze/coolant, brake fluid, windshield washer fluid, transmission fluid
and power steering fluid. Also provided in the study are revenue forecasts,
market shares, market and technology trends, competitive issues and
strategies.
Research has revealed that while price remains the main consideration in
most fluid purchase decisions, new, higher-priced products offering improved
performance or appealing to niche markets are becoming increasingly popular
among consumers. In such cases, product performance is the most important
factor, says Frost & Sullivan Analyst Robin Salafia. Brand name also plays a
role in the purchase decision for many consumers, says Salafia.
The majority of revenues in the automotive functional fluids aftermarket
are generated by 27 companies that supply one or more of the products
addressed in this research. The competitive factors differ according to the
type of fluid. While the market is composed mainly of conventional products
that remain fairly undifferentiated across brands, higher-priced premium
products represent a growing force in the industry.
A key strategy that industry participants should consider is pursuing the
development and promotion of better-performing fluids for which consumers will
be willing to pay a premium. Other strategies include building brand awareness
and maintaining brand loyalty, aggressively targeting consumers at the point
of purchase, and expanding through strategic mergers and acquisitions.
Frost & Sullivan presents Market Engineering Awards to recognize companies
that have made a positive contribution to the automotive functional fluids
aftermarket. Winners are selected from an in-depth analysis of the market
competitors and interviews with those companies that make up the industry.
The recipient of the 1998 Market Engineering Product Innovation Award is
Prestone Products Corporation for its two newest innovations, Prestone Bug
Wash Windshield Cleaner and Prestone Windshield De-Icer Washer Fluid. These
products offer advanced performance targeted to specific seasons or climates.
In addition, the 1998 Market Engineering Sales Strategy Award goes to the
Valvoline Company for growing its share of the antifreeze aftermarket with its
Zerex line. This company has also been increasing awareness and sales of its
SynPower line of synthetic and semi-synthetic brake, automatic transmission
and power steering fluids.
This automotive industry research has integrated the Market Engineering
consulting philosophy into the entire research process. Critical phases of
this research included: Identification of industry challenges, market
engineering measurements, strategic recommendations, planning and market
monitoring. All of the vital elements of this system help market participants
navigate successfully through the automotive functional fluids aftermarket.
The companies participating in this market include: 20/10 Products Inc.,
Airosol Company Inc., Amalie Oil Company, Berkebile Oil Company Inc., Berryman
Products Inc., Castrol North America Automotive Inc., Coastal Unilube Inc.,
Fox Packaging Company, Gold Eagle Company, Jetgo Automotive Products, Mobil
Oil Company, Old World Industries Inc., Omni Industries Inc., Pennzoil-Quaker
State Company, Phillips 66 Company, Pitt Penn Oil Company, Prestone Products
Corporation, Radiator Specialty Company, Shell Chemical Company, STP Products,
Technical Chemical Company (TCC), Texaco Lubricants Company ,Tradco, Unigard,
Valvoline Company, Wagner Brake Products, Wynn Oil Company, Related Companies:
AlliedSignal Inc., Ashland Inc., Burmah-Castrol plc, Clorox Company, Coastal
Corporation, Federal-Mogul Corporation, Houghton Chemical Corporation, Howe
Laboratories, K&W Products, No Touch North America, Distributors: AutoZone
Inc., CSK Auto Inc., O'Reilly Automotive, Pep Boys, Target Stores, Wal-Mart
Stores Inc., Industry Associations, Automotive Chemical Manufacturers Council,
Automotive Parts and Accessories Association (APAA), Society of Automotive
Engineers (SAE).
Frost & Sullivan is an international marketing consulting and training
company that monitors the automotive industry for market trends, market
measurements and strategies. This ongoing research is utilized to update a
series of online research subscriptions such as the Automotive Aftermarket
Custom Subscription, and to support industry participants with customized
consulting needs.
Visit the Frost & Sullivan web site: http://www.frost.com
U.S. Automotive Functional Fluids Aftermarket
Report: 5466-18 Publication Date: April 1999 Price: $3450
