In today’s AMN Executive Interview, Mike Schwab, senior vice president of aftermarket for NGK, brings us up to speed on the company’s recent acquisition of Wells Vehicle Electronics and gives us an overview of the company’s global footprint. He also talks about the NGK’s overall marketing strategy and offers his thoughts on how to really listen to customers.
Earlier this year, NGK acquired Wells Vehicle Electronics (Wells VE) from UCI Holdings. Can you bring us up to speed on where the acquisition stands at this point?
We are in the initial stages of integration, as this was only a recent transaction. Our two companies will remain separate entities under the ownership of NGK Spark Plugs Company LTD. However, from an aftermarket point of view, we are looking at the potential of creating value in new and innovative ways for our aftermarket channel partners. Wells VE shares many of NGK’s quality-oriented and customer-centric principles, and we look forward to forging ahead and growing the business of our combined customer base. Of course, this results in the growth of our business.
Tell us a little bit about NGK’s current place in the global aftermarket? Where are your primary areas (geographical) of focus right now and why?
We are already widely available in every corner of the globe. The markets we service can certainly be vastly different from the market we know here in North America, so we tailor our offering and our go-to-market strategies accordingly. That said, we have many opportunities all over the world. Currently, our larger geographic opportunities for growth are Eastern Europe as well parts of Asia, including the India and China markets. Our business is growing incrementally in these regions now, and we will continue to develop the business on both the OEM front and the aftermarket front. The future looks very bright for strong and sustainable growth.
What is NGK’s market strategy right now? Do you plan to add more product lines, expand the company’s geographical footprint? Are there more plans to grow through acquisition?
Our strategies are fairly direct and the tactics we employ are not so different from what earned us the No. 1 position across the world; it starts with quality and ends with quality at every stage of our operations. This is the essence of the NGK Spark Plug Company culture. From each stage of our manufacturing process, along the journey and into the hands of the end consumer, we endeavor to provide the highest quality in everything we do. Our internal staff theme for 2015 is “Driven by Perfection” and it serves as a daily reminder of our inspired focus and commitment.
In terms of product expansion and additional acquisition, yes, we are always considering various opportunities for both. We are dedicated to developing our business strategically, yet cautiously. However, when we do make a move, it is not a short-term strategic decision. We are keenly focused on the automotive business, and invest heavily in research and development, which leads to advanced solutions for our customers.
With media (including print, TV, radio, digital and social media) evolving so rapidly today, tell us how NGK most effectively reaches out to its customers?
We have many means of reaching out to our end customers, and we participate in all of the above media types at some level. What I feel is very important, whichever the medium, is the message we deliver. Does the message resonate? For this reason, tantamount to the message we deliver is the message from the market. I think this is critical, which is why we activate using our race trailer and displays at events all over the country, so we can speak one-on-one with consumers. We are building connections and brand touch points along the way, as well as, engaging with many people on our social media platforms.
We listen and react, because after all, our brand is not what we think it is; it is what they think it is. These measurable indicators help determine the messaging mediums, message content and our engagement categories. (Our more than 300,000 fans on our page told us so!)
AAPEX 2015 will be here before we know it. What does NGK have planned for this year’s show? What other trade shows will NGK participate in in the next year and why?
We participate in many trade shows outside of the automotive space such as The GIE Power Equipment show, the Motorcycle and Marine shows in Florida as well as the Performance Racing Industry show. AAPEX remains an extremely important event for us and so are the AWDA meetings held prior to the show. Our plans this year are to better utilize our time during spent during the event overall. We have many things to discuss, especially considering the Wells VE addition to the NGK family of companies.
Although we are still developing our final AAPEX plans, we intend to listen to the voice of our distributors attentively. We want to strengthen our alliances and partnerships as we look toward the creation of value-driven solutions for our channel partners. We expanded our booth size and we are adding staff to our attendee list. Not only sales staff, but each department will be present to listen and learn. Please stop by and see us at Booth No. 1833.