LAKE FOREST, IL– Richard Alameddine is vice president of marketing, North American Aftermarket, for Tenneco Automotive, manufacturer of Monroe shocks and struts, Walker exhaust products, DynoMax performance exhaust, Rancho performance/off-road suspension technologies and DNX products for the tuner market. Among the company’s other key products are DuPont Car Care appearance and performance chemicals, developed through a strategic product alliance with DuPont. Tenneco Automotive is based in Lake Forest, Ill., with aftermarket product engineering and marketing operations in Monroe, Mich.
Join us as Alameddine shares his perspectives on brand-building and marketing a well-known name in today’s business environment.
What are the challenges associated with managing and building a brand that is among the leaders in its category?
First of all, that’s a great problem to have. It’s important to realize that category leadership allows you to do a lot of things other brands can’t. Monroe has always been willing to invest in marketing programs, tools and training, for example, that have a positive impact on the success of our aftermarket business partners. We’ve upped the ante a great deal in just the past three years with very effective national consumer advertising and education. No other brand has committed the time, energy and capital to grow the ride control category, yet we continue to shoulder that responsibility because that’s what leaders do.
If there is a downside to market leadership, it’s that some smaller players have a tendency to do or say anything to try to gain a foothold in the business. We’ve seen some smaller players promise the world to distributors to try to get their foot in the door, then repeatedly fall short of the distributor’s expectations. That’s another key difference between a leading brand like Monroe and a smaller competitor — we do exactly what we say we’re going to do in terms of supporting the long-range growth and profitability of our customers’ businesses.
How does Tenneco Automotive counter the perception that exhaust – a key part of its business portfolio – is a declining category?
We see tremendous opportunity in exhaust, particularly in our premium automotive and performance product lines, as well as in the converter business. And while any company can say its excited about the category, I’d urge aftermarket distributors and service shops to take a look at who is really investing in exhaust. For example, Tenneco Automotive is in the midst of its biggest coverage expansion in several years. We’re adding hundreds of Walker direct-fit mufflers and welded assemblies for domestic and import applications, and more than 200 new direct-fit converters. We’re also dramatically increasing our product coverage and marketing investment in the DynoMax performance brand to maximize consumer demand for the exclusive sound and power delivered through DynoMax products.
Our investment also includes industry-best coverage and quality for distributors who see the opportunity in import exhaust. Our Walker Quiet-Flow3 direct-fit welded assemblies enable the installer to deliver the OE-style sound and exceptional flow preferred by the owners of import models. And we’re the only brand investing in the installer’s business through a comprehensive product guarantee and risk-free trial offer.
How would you like Tenneco Automotive to be perceived by your distributor and installer customers? If they were to be asked about your company, what would you hope to be their answer?
Great products, leading-edge technology, exceptional field sales support and all of the programs and tools needed to build strong, profitable businesses in the ride control, exhaust, appearance chemical, performance additive and other categories.
Regardless of the Tenneco Automotive brand or product line, we want to be perceived as both the engineering leader and the best overall business partner. We also hope customers see and appreciate the additional value we provide to their businesses in terms of cutting-edge consumer marketing, customer education and world-class consumer and trade promotions. If you were to base your evaluation solely on the popularity and impact of our promotions, for example, we would be the clear leader in both the ride control and exhaust categories. In fact, our Expert Plus installer marketing program is on track to exceed 20,000 members this year; that’s 20,000 shops that prefer our products and brands over any other. That tells us we’re doing something right.
Since you joined the company, Tenneco Automotive has launched several aggressive initiatives to grow the ride control category by enhancing consumers’ involvement in undercar maintenance. How have these activities been received, and have they led to bottom-line results?
I think we’ve surprised a lot of people with our ability to execute programs that other brands might shy away from – programs that focus on helping the consumer enhance his or her driving safety. There’s no question that vehicle owners fail to recognize the safety-critical role of shocks and struts. We believe it’s our responsibility as the category leader to help close this information gap by clearly defining the interrelationship between properly functioning ride control components and a vehicle’s overall steering, stopping and stability characteristics. We’ve done this by developing the concept of the Safety Triangle, which represents the key chassis system components that work together in delivering the handling characteristics drivers need and expect.
This initiative is clearly working, with a growing number of consumers asking for Safety Triangle inspections as part of their annual vehicle maintenance or as an add-on to a brake job or alignment. As a result, there are thousands of additional shock and strut service occasions available to Monroe installers.
Can the same consumer-focused approach work in the exhaust category? In which other undercar segments might these types of initiatives be effective?
We think a modified approach could have a positive bottom-line impact on the exhaust category. For example, we believe too few installers recognize and capture the opportunity to sell their customer a premium replacement muffler or system by emphasizing the improved sound, exceptional flow characteristics, increased durability, and comprehensive warranty.
Will there always be a segment of consumers who want the cheapest muffler possible? Absolutely. But I’m confident we will continue to have an opportunity to move a large percentage of customers up to better technology, just as they ‘buy up’ in other product categories, like home appliances and computers. It’s all a case of having the right product and the confidence that you’re providing the customer with a truly better solution for their vehicle; the Walker premium product is an excellent match to this selling occasion.
Are shocks and struts sold effectively at the installer level? If not, how do you enhance this sell-through?
Some shops do an unbelievably good job, while others are reluctant to recommend any add-on service to the consumer. We’ve seen countless examples, however, of shops that use our sales training and latest merchandising tools to double or even triple their ride control volume. The key is helping the customer understand that your service recommendation will help result in a better ride, improved handling and a safer driving experience. If you can convey these messages – and you have the brand and product to deliver on that performance expectation – you’re going to be successful in making the sale and enhancing the value you’ve delivered to the vehicle owner.
Same question for exhaust, but with a specific focus on performance: It’s been said the performance exhaust category is one of the best opportunities for market growth. Do installers effectively merchandise and sell this service?
Once again, we’ve seen some shops do a very good job of making consumers aware that performance-enhancing exhaust technologies are available for their vehicles. As just one example of this, we’ve see incredible demand for DynoMax exhaust systems for diesel-powered light trucks because those consumers understand that increased exhaust flow helps enhance fuel efficiency and engine performance and can increase torque in many towing situations. The same benefits are available for virtually any popular passenger vehicle, a fact that needs to be communicated in shop advertising, signage and point-of-sale materials.
Tenneco Automotive has expanded into the chemicals category with the new DuPont Car Care line. Has it been difficult to get distributors to think of you as more than simply a ride control and exhaust company?
I think we’ve surprised a lot of people with a product line that’s clearly differentiated – not only through a great brand but exceptionally effective, science-based formulas. It’s fair to say that some competitors in the appearance chemicals and, now, the performance additives categories underestimated the combined value of the DuPont brand and Tenneco Automotive’s extensive aftermarket footprint. Our business is growing very aggressively within aftermarket distribution, and we’ve seen strong interest among key players in the mass-market retail community. That tells me we’ve got a winner.
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