Two Aftermarket Areas Forced to Improve Customer Relations
9 November 1998
Frost & Sullivan: Tight OEM Specifications and Consolidation Spur Transmission And Clutch Parts Aftermarket Manufacturers to Improve Customer Relations
MOUNTAIN VIEW, Calif., Nov. 9 -- As the market becomes more
and more saturated, competing successfully in the transmission and clutch
parts aftermarket is becoming increasingly difficult. Tighter OEM
specifications, parts proliferation and distributor consolidation continue to
concern participants. To survive, it is crucial that competitors develop a
solid reputation and customer base, through learning to capitalize on the
changing needs of the end user.
According to strategic research conducted by Frost & Sullivan
(http://www.frost.com), U.S. Transmission and Clutch Parts Aftermarket, total
revenues reached almost $1.6 billion in 1997.
Over 100 companies participate in the transmission and clutch parts
aftermarket. In fact, another market tier has been created due to the growing
demand for transmission and clutch kits. Kit assemblers that repackage parts
from various manufacturers to be shipped to aftermarket consumers make up this
new tier.
Growth strategies depend on company size and resources, says Frost
& Sullivan Analyst David Yu. The market leaders have gained a competitive
advantage in production, distribution, and research and development because
larger companies can take full advantage of economies of scale and better
maintain brand loyalty. Large corporations can also grow by acquiring smaller
companies to improve differentiation. Smaller companies must develop niche
marketing strategies, including finding a loyal customer base and improving
customer service.
Customer service is crucial to survival, Yu says. A primary concern of
professional installers is the amount of returns due to faulty products,
shipments of incorrect transmission system parts, or poor instructions. To
generate repeat business and improve customer relations, companies must
monitor changes in customer profiles and be prepared to satisfy increasing
demands.
Frost & Sullivan's new study, U.S. Transmission and Clutch Parts
Aftermarket, is divided into two major segments: transmission parts and
clutch parts. Provided in the study are revenue forecasts, market shares,
market and technology trends, competitive issues and strategies.
Frost & Sullivan presents Market Engineering awards to the automotive
industry to recognize companies that have worked hard to make a positive
contribution to the aftermarket. Winners are selected from an in-depth
analysis of the market competitors and interviews with those companies that
make up the industry. Frost & Sullivan is pleased to present the 1998 Market
Engineering Leadership Award to LuK, AS, Automotive, who has gained market
share in an increasingly competitive industry with the development of its
RepSet clutch kits.
This automotive industry research has integrated the Market Engineering
consulting philosophy into the entire research process. Critical phases of
this research include: 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 transmission and clutch parts aftermarket.
Frost & Sullivan is an international marketing consulting company that
monitors the automotive industry for market trends, market measurements and
strategies. This ongoing research is utilized to update a series of research
publications such as #5156-18 North American Import-Car Hard-Part Aftermarket
and #5767-18 North American OE Undercarriage Component Markets, and to support
industry participants with customized consulting needs.
Report: 5367-18 Publication Date: Nov. 1998 Price: $2950
$4900 if bought in conjunction with #5124-18
For more information in the United States, please contact:
Kathleen Cooney
California
650-237-4385
650-903-0915 fax
kcooney@frost.com
or, visit the Frost & Sullivan web site: http://www.frost.com