This week’s Executive Interview features Mike Schwab, who was recently promoted to vice president of NGK Spark Plugs’ (U.S.A.) aftermarket division. Schwab, a 20-year veteran in the aftermarket, has been with NGK since 1989 and previously served as director of sales and marketing for North America. Prior to that, he served as general manager for NGK Spark Plugs (U.S.A.). In his new role, Schwab will oversee sales and marketing functions for NGK’s aftermarket and OES channels. Here he talks about the company’s Oxygen Sensor Salvage Sensor Recovery Program, keys to success in the oxygen sensor category, as well as the company’s focus on social media, and plans for AAPEX 2009.
The aftermarket tends to lag slightly behind the rest of the world when it comes to social media, but NGK has been an early-adopter in this arena. Talk a little about NGK’s social marketing efforts and why the company sees value in it.
A year ago, we introduced a new method of igniting our consumers’ passion for their vehicles via the ‘ArtofFast.com’ online community, a new social networking Web site that allows enthusiasts to explore the deep connection that exists today between ‘man and machine.’
ArtofFast.com is an online destination that brings together nearly every existing popular vehicle community and creates a forum for these users to discuss their vehicles and lifestyles. The site allows users to upload vehicle pictures and videos to a virtual garage, promote local events and correspond with thousands of other users with whom they otherwise may never have the chance to connect with.
The Art of Fast Community is an extremely exciting project for us. We wanted to create something that would better connect us to our consumers and their passions. This site allows vehicle enthusiasts to engage in online content and get excited about their vehicles in a new way.
The vehicles we choose to drive and ride say so much about us as individuals. It is truly interesting to take a step back and realize the amount of contemporary culture that has originated from owning and upgrading various vehicles — anything from a scooter to an SUV. This is the kind of self expression that NGK is trying to support with the Art of Fast project.
This new online experience revolves primarily around the social networking community, but also includes other elements, such as videos, downloads, games and content designed with NGK fans in mind. We also highlight events we attend like Monster Jam and ESPN’s X-Games.
In addition, we’ve stepped up our Facebook, Myspace, Twitter, YouTube and Flickr presence. We not only promote Art of Fast, but also the NGK brand on these social networking sites. To date, we’ve seen thousands of people talk about and promote our brands for us, which is what social marketing is all about.
Around this time last year, NGK unveiled the NTK Oxygen Sensor’s Salvage Sensor Recovery Program (NTK SSRP) to all professional technicians. The program offers to dispose of oxygen sensors regardless of brand, to help promote environmentally responsible practices in the aftermarket. How’s the program going so far?
We developed the NTK SSRP to encourage responsible practices in the automotive aftermarket by promoting the recovery of replaced oxygen sensors. The NTK SSRP is a program that will reward technicians who recover oxygen sensors; similar to a box top program reward for collecting UPC codes. The NTK SSRP is designed for those who choose to reduce, re-use and recycle.
The benefits of the program include:
• Reduced amount of heavy metals going into landfills;
• Pride in knowing that we are protecting the environment;
• A closer connection to our technicians; and • Increased brand recognition for our product and our company.
So far, the program is doing well. We have received many compliments for our forward thinking and responsible environmental practices. Like every program, it takes a while to see the benefits, but to date we are more than surprised by the amount of participation and the amount of sensors we’ve collected.
I believe this is one of the programs that we offer that separates us from our competition. Being able to appeal to one’s sense of environmentalism helps us put our brand in front of the technicians in a strong and positive manner.
The company has seen significant success in its oxygen sensor program in the past few years. What do you feel are the keys to success in this category?
Our success starts with our OEM team and our OEM sensor placements. Oxygen sensors are an emission component and we know professional technicians prefer the OEM brand in this category. Without our leading presence as an OEM supplier, our aftermarket strategy would be completely different – and more challenging to say the least.
We also have a strong distribution plan and align ourselves with the right distribution partners. We believe a strong partnership starts with high quality parts and a full-line program.
Additionally, fair pricing and high service levels are critical. From high fill rates to professional technical training and support, we’ve been able to help our distributors grow their business from day one. We have been very successful.
Our team: One major key to our success is our people. Our sales and marketing staff prides themselves on doing whatever it takes to exceed our customers’ expectations – every day. We train our staff to provide the best service levels to every customer – no matter where they are in the channel.
You were recently promoted to vice president of NGK’s aftermarket division. In addition, in August, the company promoted Hideyuki Koiso to president and CEO of NGK Spark Plugs USA. What do you and Mr. Koiso hope to accomplish in your new roles? What are your goals for the next year?
Our goals are simple:
1. To continue to be a premier supplier of high quality parts and provide excellent value; and 2. To match our products to our customers’ visions each day while exceeding their expectations in service and performance.
The global automotive industry has been through a few years of dramatic change and the North American market in particular has seen a big shift in terms of manufacturing capabilities. Many North American manufacturers have moved production overseas to help cut costs, however NGK has a very different philosophy. Please talk about this philosophy and the company’s role in North America.
Most companies have been moving their production overseas to minimize the rising costs of manufacturing. We manufacture globally, however we feel it is important to manufacture where the product will be consumed to best serve our customers. By manufacturing locally, we provide higher service levels and bolster local economies. We invested a significant amount of money in 2007 when we built another spark plug plant in West Virginia, very close to our sensor plant.
In North America, NGK is headquartered in Wixom, Mich., and maintains manufacturing, inventory and distribution facilities in Irvine, Calif., Sissonville, W.Va., and Chicago, Ill. The manufacturing facilities in the U.S. further strengthen our global network and positions the company to better service its North American customers. With a base of manufacturing that is lean and flexible with strict quality controls we ensure that every single NGK or NTK manufactured product meets our customers’ stringent demands.
Will NGK be attending and exhibiting at AAPEX this year? Please update us on your plans.
Yes, but bigger and better than ever!
While many companies have downsized their plans at AAPEX, we will be introducing a new booth that I think will showcase our products in a way that no one in our industry currently does. We have positioned ourselves as a progressive and exciting brand. Our AAPEX booth, in my opinion, will carry that same message, while allowing perspective customers to learn more about what we do. In addition to our American staff, our booth will include staff from Canada, Mexico and Japan. Make sure to stop by our booth at AAPEX (booth #1645) and see what we are all about.
