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1999 Supplier Branding Study Released

3 May 1999

The Planning Edge and CSM Worldwide Release the 1999 Supplier Branding Study (SBS)

    NORTHVILLE, Mich., May 3 -- The Planning Edge, Inc. (TPE) and
CSM Worldwide, Inc. have released the first syndicated study to fully explore
the concept of supplier branding within the North American auto industry.  The
Supplier Branding Study (SBS) covers both consumer and original equipment
manufacturers' perspective on branding, determining the value that consumers
and vehicle manufacturers place on branded components in cars and trucks.
    "The results of this study deliver a clear message to automotive
manufacturers that consumers perceive value in branded products, and they want
to see more branded components in their vehicles," says Michael L. Schmall,
Managing Director of The Planning Edge, Inc.  "As cars and trucks become
packed with additional electronics that intersect with people's lives outside
of their vehicles, consumers will demand that key vehicle systems be branded,"
Schmall added.
    The SBS tested twelve different vehicle systems areas under three major
headings.  The three groups were:

    1.  Safety Features
        -  Anti-lock Brakes
        -  Crash Avoidance Systems
        -  Restraints (air bags and seatbelts)
        -  Security Systems
        -  Tires

    2.  Interiors
        -  Heating and Air Conditioning Systems
        -  Seats
        -  Speakers
        -  Stereos

    3.  Convenience and Communications
        -  Remote Entry
        -  Navigation Systems
        -  On-board Computers

    The most prominent brands in each category were:

    -  Safety Features: Michelin tires
    -  Interiors: Bose speakers
    -  Convenience and Communications: Motorola (which was closely followed by
       Sony, Panasonic, and Delco Electronics)

    "Michelin is proud to be acclaimed by consumers for producing tires
recognized for quality and safety," said a Michelin spokesperson.  "We
continue to build on our century of technological innovation to deliver the
ultimate driving experience for every type of vehicle."
    DuPont, Monroe, and Cummins were the most recognized companies and brands
falling outside the three major headings studied.
    According to the study, OEMs feel that carefully crafted supplier branding
can support their brand management efforts by enhancing their primary brands
and by adding value to their vehicles.
    "Supplier branding allows OEMs to clearly define their vehicle identities
and core values by tying into established brands that consumers know and
respect," remarked Jim Nader, Market Assessment Manager for CSM.  OEMs noted
other supplier branding benefits such as the ability to vary their own brands
from one another as well as to differentiate their products against
competitive vehicles.
    A growing awareness that automotive companies have to become more
consumer-oriented is one of the major themes mentioned throughout the study.
The research determined that certain companies, such as Ford, General Motors,
Johnson Controls, Intel, Harman and Michelin, have already adopted a consumer-
oriented strategy.
    The Planning Edge, based in Troy, Mich., is an innovative consulting and
analysis firm specializing in consumer and business-to-business information
for the auto industry.  CSM Worldwide, based in Northville, Mich., is a global
research and analysis firm supporting automotive suppliers with global market
intelligence and forecasting services.
    For further information on the SBS, contact Michael L. Schmall from The
Planning Edge, Inc., 248-269-8226, or Jim Nader from CSM Worldwide, Inc.,
248-380-9000.