Brand Marketing is Key to Success in Intensely Competitive Aftermarket
1 March 1999
Frost & Sullivan - Brand Marketing is Key to Success in Intensely Competitive Belts, Hoses, Gaskets and Seals Aftermarket
MOUNTAIN VIEW, Calif., March 1 -- The U.S. belts, hoses,
gaskets and seals industry is experiencing slow growth, and finding new
markets or niche segments is becoming increasingly difficult. In addition,
consumers are becoming more demanding as their product knowledge grows. To
combat these challenges, companies are utilizing brand marketing as the
primary means of competition.
According to new strategic research conducted by Frost & Sullivan
(http://www.frost.com), U.S. Belts, Hoses, Gaskets and Seals Aftermarket, total
revenues reached almost $1.1 billion in 1998. Revenue growth is attributed to
higher prices, which in turn are due to higher costs of raw materials and
labor, and the use of higher quality materials.
A major factor driving demand is the aging vehicle population, because as
the useful lives of vehicles are extended, the average service life per
vehicle also increases, says Frost & Sullivan Analyst David Yu. Other trends
that provide growth opportunities include the increasing number of vehicles in
operation, increasing annual miles driven, improved diagnosis equipment, and
brand recognition.
The two most crucial competitive factors in this market are price and
quality. Yu says price sensitivity has intensified as the power of buying
groups grows. Also, a shift toward two-step distribution is occurring at the
expense of traditional three-step distributors, which results in price
reductions for manufacturers that do not differentiate. In addition, quality
is important to reduce comebacks due to minimal defects.
Growth strategies for market participants depend on company size and
resources. Large companies can take advantage of economies of scale and
maintain brand loyalty, while smaller players must implement niche marketing
strategies. However, while availability, timely delivery and technical support
are still major competitive factors, effective brand management is the key to
success for all players in the U.S. belts, hoses, seals and gaskets
aftermarket.
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 automotive aftermarket.
The companies participating in this market include: Belts & Hoses,
Advance Belt Company, Bando Manufacturing of America, BRYCO by Carfel Inc.,
Continental Hose, Dayco Products, Dynagear Manley-Badger Inc., Ferdinand
Bilstein Jr. GMBH & Co. KG, Foreign Autopart Inc., The Gates Rubber Company,
The Goodyear Tire & Rubber Co., Hosecomatic, Mackay Consolidated Industries,
Mark IV Automotive, Plews/Edelmann (Stant), Spectre Industries, Thermoid/HBD
Industries Inc., Topline Automotive Engineering Inc., Wirthco Engineering
Inc., Gaskets & Seals, A&A Midwest/Enginequest, Automotive Bearings
International (ABI), ACL Automotive America Inc., AE Clevite Engine Parts,
Asimco Components Group, BRYCO by Carfel Inc., CR Industries, D-J Rock
Products, Dana Automotive Sales Division, Detroit Gasket (Div. of Indian Head
Industries), Diesel Guard (Div. of Universal Coach), Federal-Mogul
Corporation, Fel-Pro Incorporated, FIT Bearings & Seals Inc., Freudenberg-NOK,
The Gasket King, Green Bearing (Div. RB&W Metal Forming), ITM Engine
Components, King-O-Matic Industries, Kotek America Inc., L&S Automotive
Products Co., Loctite Corporation, Make Waves Instrument Corporation, Mellin
Automotive Products, Metex Corp., Mission Trading Company, Inc. and Orbitrade
North America Inc., Nickson Industries Inc., Power Train Components Inc.,
Precision Automotive Industries, Rol Manufacturing of America Inc., Safety
Auto Parts Corporation, Superior Auto Parts Corp., Topline Automotive
Engineering Inc., Wynns Precision, Related Companies: Armstrong Industrial
Specialties Inc., Homer Enterprise Co. LTD, Johnson Industries, Transtar
Industries Inc.
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
subscriptions such as the Automotive Aftermarket Custom Subscription, and to
support industry participants with customized consulting needs.
U.S. Belts, Hoses, Gaskets and Seals Aftermarket
Report: 5569-18 Publication Date: Feb. 1999 Price: $3450
Visit the Frost & Sullivan Web site: http://www.frost.com