Based on its recent analysis of the automotive aftermarket, Frost & Sullivan has recognized Federal-Mogul Motorparts with the 2016 North American Company of the Year Award. Federal-Mogul Motorparts, one of the first automotive aftermarket companies to have earned recognition as Frost & Sullivan’s North American Company of the Year, has carved a niche for itself in the fiercely competitive market by rolling out various initiatives related to digitization, globalization and service technician training. Its continued investments in distribution capability and continual product innovation have helped it create a robust ecosystem that allows it to leverage its regional capabilities at a global level, according to the consulting and research firm.
In selecting Federal-Mogul Motorparts for this recognition, Frost & Sullivan said it finds that aftermarket retailing is shifting from a service model to a solution model. In line with this trend, Federal-Mogul Motorparts has aggressively expanded its product portfolio with acquisitions, including Interfil’s filter business, Affinia’s chassis components business and Honeywell’s friction materials business.
While the acquisitions have strengthened the company’s presence in traditional parts sales, Federal-Mogul Motorparts also has been enhancing its presence on digital platforms, as traditional companies increasingly sell replacement parts online. For instance, it established a series of global brand websites and a direct eStore in a Chinese business-to-consumer marketplace (TMall.com).
“As part of its digitization strategy, Federal-Mogul Motorparts makes available e-catalogs, buyers guides, updates on marketing initiatives and detailed product-related information on its portal,” said Frost & Sullivan Research Analyst Anuj Monga. “Further, it has invested in online order management, vendor management and customer relationship management systems. It also has opened its direct eStore in China’s growing e-commerce aftermarket, and offers its multiple brands via partner-distributor online portals that are already popular in North America.”
Federal-Mogul Motorparts has taken strategic initiatives to expand in emerging markets, launched various supply chain initiatives and adopted a streamlined approach to competitive manufacturing and solution-based support services. Frost & Sullivan notes that the company is well-placed to make the most of the opportunities from emerging markets where vehicles in operation are growing exponentially. In North America, the company is working on programs such as Garage Gurus, which is aimed at imparting technical education to service technicians, to not only empower its customer base but build a strong brand. The company has introduced similar programs in Western Europe and China, which are expected to go a long way in creating value-added touch points with the most influential customer group: service technicians and shop owners.
The company is making significant enhancements to its distribution footprint, including the opening of East and West Coast multi-product line distribution centers in the United States, and reconfiguring its distribution footprint to better serve customers in Western and Eastern Europe.
“Federal-Mogul Motorparts has adopted a multi-tiered product placement model, strategically competing with other OE [original equipment] and aftermarket brands,” noted Monga. “With the promise of OE-level or better quality as well as improvements in OE designs, these brands offer optimum value. While its premium products – and those it makes for its numerous private label customers – boast the highest quality and maximum levels of product functionality, the tiered-down lines aim to deliver substantial value at a relatively competitive price.”
Continual product improvements, multiple programs aimed at enhancing the service experience, and a superior price/performance value allow Federal-Mogul Motorparts to deliver an overall superior customer experience.
Each year, Frost & Sullivan presents this award to a company that has demonstrated excellence in terms of growth strategy and implementation. The award recognizes a high degree of innovation with products and technologies and the resulting leadership in terms of customer value and market penetration.
Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research to identify best practices in the industry.
