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.., J r.T?. 'V.'/i.' xr.. <`.>.s. ' ^('/,7?I; '!' r\ -. r' ::"iif{"! '<?;y;'/" /'jr-.f'/',:v. j;c(;riir.:?;7 ' Sfi^rcd ` 1 / 'i/'r/i f/:/.- `v/.-'v ,W; * >9.0 ' if,C` '' *" '-`'gp> - ir i ' .T* \c\re\y-ev<vyihsv'ucv\l\ev.to.^-.tr*xSTmeVViJCo.tue'aNntST.ttvtUh^ViV.USvlKaVfeOj\lu<sS*yo,EovgotvTOxv^hiNV.WW.ucVeT^VU.VC. 'Sa.vVaitAiv\\TY2kV'tl.VC: ' i -^ CO `<5v.w hA hwn * to vvod g}yeo\ "c el-iter COVER STORY NAPA President Bob McKenna introduces NAPA's 1989 marketing theme--NAPA Lead On--and gives an overview of the current and new programs designed to make the coming year one of the most profitable for your NAPA AUTO PARTS store. Page 4. iE M Reaching the retail con sumer is becoming more and more important to the auto motive aftermarket. That's why in 1989 you and your employees will have the tools you need to understand the requirements of these cus tomers and how to best go about meeting those needs. Page 12. That's right. In 1990 NAPA AutoCare Centers, NAPA AUTO PARTS stores and automotive specialists have the opportunity to find out about the latest innova tions in the automotive after market when the NAPA AutoCare Congress takes place in Las Vegas. The "Spotlight On The Future" will be shining brightly. De tails on the AutoCare Con gress and the 1989 AutoCare Program. Page 14. On November 17, NAPA lost one of its strongest and most effective leaders when J.R. (Dick) Degnan died. Degnan, who was vice presi dent and general manager of NAPA from 1963 until 1975, is credited with bringing the organization into the mod em marketing age. A tribute to Dick Degnan appears in this issue. Page 8. The best programs NAPA has offered you in the past are back for the coming year. Programs that, when com bined with NAPA's newest additions, will make for the strongest selling year we've ever known. Take a look at the improvements made to these programs and deter mine how they'll work best for you and your market place. Beginning on... Page 16. Vol. 21, No. 10 December 1988 Kathy Randall Editor & Communications Manager Elizabeth Wong Assistant Editor & Communications Coordinator Margaret Hall Assistant Editor & Publications Coordinator Published periodically in the in terest of NAPA AUTO PARTS stores. Distribution Centers and Manufacturers across the nation. When notifying us of a change of address, please mention NAPA Outlook and give us the old ad dress and zip code. Litho in U.S.A. NAPA HEADQUARTERS 2999 Circle 75 Parkway Atlanta, Georgia 30339 1988 National Automotive Parts Association N< > pail of this publication may bo reprinted without the expressed permission of the National Automotive Parts Association. NAPA Batteries. .Page 28 NAPA Credit Card Program .. .Page 5 NAPA Echlin ... Page 26 NAPA Oil & Chemical.............. Page 2 NAPA Tapered Roller Bearings.. Page 11 NAPA United ... Page 23 NAPA Wearables.......... Page 25 Parts Craft........ Page 27 3 IN 1989 by Bob McKenna, NAPA President When those 28 men met in April of 1925 and built the organization which is now known as NAPA, they more than likely had no idea of how large theNational Auto motive Parts Association would become. In a short 63 years--less than one life time--NAPA has become the largest and best source of automotive replacement parts in the country. As we enter into the final year of the 1980s, NAPA will "Lead On" in the '90s. "NAPA Lead On" is our marketing theme for 1989 and we believe it's one which sums up exactly what all levels of the NAPA system will continue to do in the future. But in order to lead on both nationally and on the local level, the pro grams must be available to assist you, the NAPA AUTO PARTS store owner and manager, in maintaining your lead ership position. In this issue of Outlook we have compiled an overview of the programs which are available to you for the coming year. On the following pages you'll be able to see how the marketing efforts against all five market segments are going to become larger and stronger. For the traditional customer, the Auto Care Program and the establishment of more NAPA AutoCare Centers will be the focus. To offer those AutoCare Cen 4 ter customers even more, we're announc ing the NAPA AutoCare Congress to be held in Las Vegas during March of 1990. You'll also see how the Real Deals Pro gram and the P.B.E. Flyer are being improved. To assist you in gaining a larger share of the retail market, we've developed a pro gram which brings all of your retail efforts together--the Retail Marketing Program. The purpose of this program is to make it easier for your store to implement a sales event which brings consumers into your location and by doing so increases your overall sales and profits. But for so many NAPA AUTO PARTS stores retailing is a different way of doing business. So to help you understand more about the hows and whys of retailing we've also developed the Retail Training Seminar, a two-day course which demonstrates the most effective method for being an effective retailer. The farm market will continue to be a key segment and there have been major improvements with the Farm Circular Program. You'll be able to successfully market for these customers with the Farm Impact Kits and a sweepstakes whose spring winner will win a trip tc Hawaii and the fall winner, a Chevy S-10 pickup. The marine market will have a brand new catalog and you'll be able to offer special promotions from NAPA Manu facturers which will bring marine cus tomers directly into your store. The heavy duty marketplace will go further in reaching its full potential next year with an emphasis on brake systems. You'll also see a greater emphasis on training for this market in the months ahead. In this issue you'll also read a message from Larry Prince, president and chief operating officer of Genuine Parts Com pany and a member of the NAPA Board of Directors. His message is an important one, giving us insight into our business from both an historical and a futuristic perspective. Additionally, and on a sadder note, this issue contains a tribute to Dick Degnan, vice president and general manager of NAPA from 1963 until 1975. Dick passed away last month and we join together in mourning the loss. One thing 1 can tell you with certainty is that Dick Degnan was pleased with the direction in which NAPA is moving. He was a strong believer in the future of our organization and, in fact, laid much of the groundwork for the programs and success we have today and will continue to have in years to come. Our best programs return in 1989-- the NAPA Store Design Program, the NAPA Credit Card Program, the Yellow Pages Advertising Program, the NAPA National Warranty Program, Customized Classification, Computer Cataloging and 1-800-LET-NAPA to name a few--and in returning join together with our recent additions to give you the best in what the automotive aftermarket can offer. So, once again I invite you to read through this special issue of Outlook and discover for yourself just how NAPA will "Lead On" in 1989 and beyond. Our bestprograms return in 1989 and in returningjoin together with our recent additions to give you the best in what the automotive aftermarket can offer,, CUSTOMERS DESERVE CUBIT Rocky fountain BankCard System MM NAPA AUTO PARTS MARK ROBINSON And so do you.The NAPA Express charges. call today. Credit Card Program has the All of these services work If you have any questions answer. It includes four ser together to help you and your about the NAPA Credit Card vices rolled into one program customers. The NAPA/Visa Program, call U.S. BankCard to cover all of your credit and card promotes customer Center at 1-800-528-9129 check needs: loyalty and recognition. The (800-233-2470 in Tennessee) o A NAPA identified Visa card, credit card processing and or American Express at 1-404 e Electronic authorization and check guarantee services 395-7923 or 1-213-543-6882. payment for MasterCard and offer you nearly unbeatable Visa charges. discount rates. Check guarantee service for You will be receiving a com checks and authorizations for plete packet of enrollment other major credit cards, information from your All the right parts in e A national discount-rate program for American Distribution Center. If you have not received it, give them a all the right places? The NAPAA/ISA credit card is offered by Rocky Mountain BankCard System. U S, BankCard Center and First National Bank of Omaha provide bankcard processing service. Telecredit check guarantee service is made available through U.S B.C. American Express Travel Related Services Company. Inc provides American Express processing services A LOOK AT LEADERSHIP As a result ofNAPA's renewed leadership attitude, new programs have been started and old ones have been reinforced. Editor's Note: The following article is based on a speech made by Larry Prince, president and chief operating officer of Genuine Parts Co., at NAPA`s 1988 Annual Meeting, held October 1619 in Atlanta, Georgia. Because Prince's mes sage is crucial to everyone within the NAPA system, it is important that you, the NAPA AUTO PARTS store owner or manager, have an opportunity to read it. Recently a great deal has been said about NAPA's market leadership. In fact, our 1989 marketing theme "Lead On" ex presses our reputation for leadership in the industry and our desire to continue in this position. Currently, NAPA is significantly out pacing the growth of the industry. This is a wonderful situation to be in. But while we appreciate our success, we must also acknowledge that we have not always enjoyed this position. A closer look at our record indicates we can't af ford to become comfortable or to take our present situation for granted. If we look back at our record for the past ten years, 1978-1987, we get a clear perspective. During seven of those years, NAPA's sales growth exceeded the in dustry's by a range of .2% at the lowest to a high of 2.5%. Only in 1987 did we be gin to substantially outpace the industry. Our growth that year exceeded the in dustry's by about 7%. This was our best performance since 1971, when our growth surpassed the industry's by almost 8%. It appears that 1988 will be another 6 strong year for us, and we should again significantly outperform the industry. Perhaps this ten year picture surprises you. Viewing our growth pattern over these past ten years raises two questions. Why weren't we better in several of these years and what caused us to do better in 1987 and 1988? In order to sustain our current level of performance, we need to look closely for the answers to these questions. From time to time we find ourselves speaking with investor groups or poten tial investors, analysts, brokers and port folio managers. The recent improvement in our NAPA parts business has not gone unnoticed by these people. In 1985 and 1986 they wanted to know why we weren't doing better. Then, after 1987, they be gan asking why we were doing better. I assure you, these are questions we have seriously considered. From 1978 to 1986, we were slightly ahead of the industry, about 1.5% on aver age. Though our sales increases during those years weren't bad, they were made up quite heavily of substantial price in creases. In 1978 and 1979, for instance, sales growth was 13%, but price increases were 6-7% of this. In 1980 we actually lost ground with inflation exceeding our total sales increase. Admittedly, we had many negatives to deal with during those years. The country faced an energy shortage and general economic problems. The number of miles being driven showed little or no growth, and in six of these years, our target vehicle population declined. The demographics of vehicle registration were against us. But these factors also affected our competition. Our concern should not be that we had negatives facing us, but that we didn't lead our competition in dealing with them. Why didn't we? There is no single, simple answer to this question. We've all worked hard, we offered prem ium service, our products were of the highest quality, we collected our money and paid our bills. But, perhaps our poor showing was caused by something less tangible than level of service or product quality. Per haps the problem was with our attitude. We were getting along fairly well, our sales were okay and we managed to make a pretty good profit. But it may be that we had become complacent and conse quently our leadership position in the industry was slipping. So how did we turn this around in late 1986? What stimulated the growth we saw in 1987 and continue to see in 1988? I be lieve somewhere along the way we came alive and started working harder in the areas of sales and marketing. NAPA Headquarters' move to Atlanta in 1984 consolidated all marketing activities and more clearly focused the communication between NAPA Manufacturers, Distri bution Centers and NAPA store owners. This move seems to have been a major catalyst for the progress we have experi enced. As a result of NAPA's renewed leadership attitude, new programs have been started and old ones have been reinforced. In 1984 we created the NAPA National Advertising and Marketing Council. This group initiated the Pipeline Program (the NAPA Store Design Program) which is creating a national identity for NAPA and boosting the sales of the stores that are participating. It established the suc cessful National Warranty Program and encouraged D.C. and Division Ad Coun cils to involve and assist NAPA stores with advertising. Also, under the coun cil's guidance NAPA's import efforts evolved into a calculated program and the AutoCare program was launched. Additionally, in 1986, NAPA introduced an improved Customized Classification Program. Today we have the most accu rate inventory system in the industry. Currently we are reexamining our market position on every product line. The product management team at NAPA Headquarters is closely monitoring and analyzing all our programs. A good ex ample of this effort is the NAPA Battery Program. In recent years, we and our two sup pliers of batteries had become comfort able with our battery program even though we were experiencing little or no sales growth and we were getting whipped in the marketplace. Finally, after a close examination of the situation, we made the necessary steps to turn things around. In partnership with Exide, we have seen outstanding growth. So far in 1988, battery sales are up over 30%. In 1984, the NAPA MultiLine Program was established to aid NAPA AUTO PARTS stores in boosting sales of prod ucts from several of our important small er and medium volume lines, such as NAPA Lamps, NAPA Battery Chargers, NAPA Windshield Products and NAPA Tire Hardware. Today we have 89 sales people representing 22 such lines. Our list of positive changes in recent years could go on, and our sales improve ment has been no accident. But we can't help but worry about the tenuousness of our position. Success carries with it no guarantees; it takes vigilance and effort to stay at the top, especially in our con stantly changing industry. How can we ensure our continued growth? How can we meet our goals and stay at the forefront of our industry? I believe the answer lies in determined and aggressive leadership. It will take leader ship effort from everyone throughout the NAPA system--from you, the NAPA AUTO PARTS store owner or manager, from our NAPA Manufacturers, from Distribution Center personnel and from NAPA's Headquarters staff. We take this opportunity to challenge you to make the decisions necessary for your NAPA AUTO PARTS store to be the leader in your market place:Are your stores pipelined? If not, you're missing an opportunity to substantially increase your sales, because the sales increases of pipelined stores are, on average, twice those of nonpipelined stores. And with out the pipeline you're not contributing to or taking advantage of NAPA's nation al identity of quality and reliability. Are you participating in the AutoCare program? Are you taking advantage of NAPA's training opportunities so your employees can provide customers with the best possible service? Have you signed up for the 1989 Retail Marketing Pro gram which has been designed to boost retail business for your store and for NAPA? Are you getting the most out of the programs and suggestions offered at your Marketing Conference? Likewise, NAPA's Distribution Center personnel and manufacturer representa tives must give the support and service you need to be the best. And they too must be committed to the NAPA system and its programs and goals. NAPA Headquarters is continuing to monitor the factors that affect your busi ness and the industry. Several big issues that we face today are extended warran ties and technology that could force more service work to car dealers; increas ing numbers of repair specialists; the strengthening of retailers; growing im port registration; and the proliferation of parts. NAPA currently has programs under development or in place to help you combat and even benefit from these "negatives." I believe NAPA is in the best position to lead the industry in facing these new challenges, but it will take your commitment to these programs to do so. There are also other opportunities that NAPA is taking advantage of. Our Jobber Sales Assistance Program has added a new dimension to our outside sales effort. And we are in the process of structuring ourselves to be a leader in the heavy duty market--it's a natural for us. Nineteen eighty-eight is destined to be another good year for NAPA. But how about 1989 and beyond? Is our current success a fluke or do we have the grit, determination, and dedicated people to take our programs to our customers and make them work? Together in recent years we have all seen our NAPA programs become even more valuable to us in our marketing and management efforts--the results are now clearly telling us this. But these new programs are not simple ones. They are complex and reach into all areas of mar ket opportunity. Our success in the future will hinge not on the programs themselves but on how committed we are to making them work for us. We be lieve the commitment is there and NAPA will continue to be the leader again in 1989 and the future. We take this opportunity to challengeyou to make the decisions necessaryforyour NAPA AUTO PARTS store to be the leader in your marketplace. 7 With the recent death of Dick Degnan, NAPA has lost one of its greatest friends and supporters. During his 12-year ten ure as NAPA's vice president and general manager, from November 1963 to Decem ber 31,1975, Degnan brought NAPA into the modem marketing age and led the organization to new heights in sales and service. Joseph Riluf Degnan was bom in the early part of this century in a rural New Jersey town called High Bridge. In 1929, when he was 19 years old, he left High Bridge to begin his career with the Standard Oil Company at their head quarters in New York City. Unfor tunately, with the stock market crash following soon after this, his career with Standard Oil was short-lived. Not one to be easily discouraged, Deg nan soon found a position with Beckwith Chandler Company, a paint manufac turer, in Newark, New Jersey. He began as a quality control clerk and in just two years, he was appointed plant manager. In this position, he acted as a one-man sales force canvassing the entire eastern United States until 1937. In that year, Degnan decided to leave Beckwith Chandler for a position with Martin-Senour Company. In the forties, he was moved to the west coast and as signed the task of developing the market there for Martin-Senour automotive fin ishes, something the company had not been able to accomplish in the past. He was so successful in opening up this market that only four years after he was sent to the west coast, he was transferred to Chicago as midwest manager of the Trade Sales Division. Not too many years later he returned to the west coast as re gional manager of Automotive Finishes Trade Sales and Industrial Finishes. He returned to Chicago in 1955 as vice president and general sales manager. During his years with Martin-Senour, he helped pioneer the company's growth that established it as a nationally recog nized supplier of quality paint lines. In his many positions at Martin-Sen our, Degnan had daily contact with NAPA. He worked with many NAPA Jobbers throughout the country, as well as with the Distribution Centers. He was active on the NAPA Manufacturer's Council and was thoroughly knowledgeable of NAPA's uniquely successful distribu tion system. In 1963, when NAPA was looking for just the right person to fill its top posi tion as vice president, general manager, Degnan was the perfect choice. He ac cepted the position and moved to NAPA Headquarters, then in Chicago, Illinois. 8 1 When he came aboard, NAPA was rec ognized as having the best distribution system in the business. The system was established and, besides the normal small crises, it ran smoothly and effectively. As a master salesman, Degnan took NAPA's distribution strengths, applied his mar keting expertise and built an integrated system that has allowed NAPA to con tinue to lead the automotive aftermarket industry in the market-driven economy of the past decades. One of his most important undertak ings during his career at NAPA was the revitalization of the NAPA logo. Not long after he began as vice president, general manager, he decided that NAPA's logo needed to be modernized. As was his style, he solicited and got the support of all those involved in the NAPA system for the logo change. Under his leadership the present NAPA seal, known nationwide, came into being. With his sales and marketing instincts working overtime, Degnan then chose new colors for the NAPA logo, blue and gold. The logo with its simple design and vivid colors has proven over the years to be one of NAPA's most effective and im portant marketing tools. It has become recognizable throughout the United States and Canada as a symbol of quality auto parts. His emphasis on marketing gave rise to his "Wonderful World of Sales" pro gram and the "Magic of Marketing" meet ings. His energy and enthusiasm inspired individuals at every level of the NAPA system. He was indeed a motivator, and his energy could turn explosive if he felt that someone was not doing his utmost to further the NAPA cause. He knew as many NAPA Jobbers as any one person could and related to them on an individual basis. If he needed some thing done or support for one of his many ideas, he would pick up his phone and call several managers around the country. He was also a friend of NAPA's suppliers. As a result of his relationships at all levels of the NAPA system, he was able to get the support he needed to implement his marketing ideas. He masterminded the creation of the first product lines manufactured under the NAPA name. NAPA Filters and NAPA Batteries began a whole string of NAPA name brands that, through the years, have increased consumer recognition of NAPA and reinforced its reputation in the industry. After his retirement at the end of 1975, Degnan moved to California but con tinued to have a keen interest in NAPA. It was not unusual for him to drop in on jobbers in his area just to say hello and make sure everything was going all right. For many years, he worked with GPC's Western Division staff, calling on jobbers primarily serviced by the San Diego and Los Angeles Distribution Centers. He continued to be active in the sales and marketing arena, attending Marketing Conferences, sales meetings and jobber meetings. Even after he was no longer able to continue his travel schedule, many jobbers continued to visit him because of the special relationships he cultivated with them as adviser, teacher and friend. Because of his charisma and the rap port that he was able to build with his colleagues during his years with NAPA, Degnan will be missed by many not only as an inspirational, energetic leader but also as a personal friend. At his retirement from NAPA, Degnan (thirdfrom left) received a plaque recognizing his years of leadership as vice president, gen eral manager. Making the presentation were (from left) Paul Rollins, Vice President and General Manager ofNAPA; Fred Mancheski, Echlin; Bill Jasperson. General Automotive Parts; and Charles Lansdale. Tenneco Automotive. 9 NAM&MMSA WINNING COMBMAnON A year ago, NAPA began its National Accounts Program with Midas Interna tional. What started out as a 19-store test program in Tampa, Florida, in January of 1987 has grown into a nationwide opera tion that supplies auto parts to over 1,100 Midas locations. The NAPA-Midas relationship began in early 1986, when management repre sentatives from the two organizations met to discuss the possibility of a Nation al Accounts Program. From the begin ning, it looked as if the program would be beneficial to both NAPA and Midas. Though Midas has its own distribu tion system, its various distribution cen ters do not carry 100% of the automotive replacement parts and products sold by Midas stores. For years individual Midas stores had to find suppliers for those parts that its distribution centers didn't carry. Plain logic told Midas that an inte grated system of supply for these parts would take a burden off of their local stores. It was also evident that an estab lished relationship with one outside sup plier would prove economical in the long run. And NAPA, with its reputation for high quality products, premium service and the best distribution system in the business, fit their needs exactly. The National Accounts Program that resulted from that initial test in Tampa has proved successful for both Midas and NAPA. By supplying Midas with the parts they need, when they need them, participating NAPA AUTO PARTS stores have increased their sales and their profits. Mike Malone, sales manager of Midas locations in Green Bay, Eau Claire and Schoefield, Wisconsin, describes his busi ness philosophy as providing "good qual ity parts at competitive prices and above all giving our customers the best service we possibly can." NAPA Auto PARTS of Schoefield. Wisconsin, services Malone's Schoefield location. And Malone has come to rely on the store because he has learned that they do business under his same philoso phy of quality products and first-rate service. Though starting the program with Midas took extra effort, Jeff Heinz, out side salesperson for the Schoefield NAPA store, emphasized that it was worth it from a profit standpoint. In a year's time he has seen the store's business with Midas jump from $3(X)-$I00 a month to 10 $3000-$5000 a month. "We've bent over backwards to provide the Midas location with what they need, but we've more than made up for our efforts with volume and profits," he explained. To help smooth the transition for Midas, Heinz has scheduled technical clinics, and he often brings local NAPA factory representatives to the Midas out let to make sure the reps are familiar with developments and product information. Ed Becher of NAPA AUTO PARTS in Rochester, Minnesota, acknowledges that supplying Midas usually requires a store to increase its inventory, but "werealized that if we've got the inventory on hand, Midas is going to buy it." Becher's store also added delivery drivers and counter people to ensure that Midas and the rest of their dealer customers received needed parts quickly. As with the increased in ventory, this extra effort has paid off in sales and profits. Describing his store's relationshipwith Midas. Lucky Wells, manager of NAPA AUTO PARTS in North Olmstead, Ohio, echoes the enthusiasm of Heinz and Becher. "Midas calls us first because of our prompt delivery service and the avail ability of hard-to-find parts through our NAPA Distribution Center." The future looks bright for NAPA's National Accounts Program with Midas International. Midas has begun an ag gressive front end and suspension adver tising program that will increase chassis and suspension work substantially. And NAPA is committed to providing the parts and sendee Midas needs. Only a year old, NAPA's program with Midas is already running strong and getting stronger. If you are interested in receiving infor mation on how to participate in the Na tional Accounts Program with Midas, contact Alan Rideout, national accounts manager, NAPA Headquarters, at 404 956-2200. PS si p Iiff TAPERED ROLLER (?> BEARINGS TIMKEN TAPERED ROLLER BEARINGS INCREASE RETAIL MARKE1SHARE WITH THE LOOK OF TIC LEADER' With over two-thirds of NAPA's business stemming from traditional dealer customers, you may find your self focusing on the larger base--but what about that other customer base? Are you and your employees taking advan tage of a nearly untapped market to con tinue to lead the aftermarket business and stay competitive? A retail sales area increases profit per square foot by bringing products from the stockroom onto the sales area. By properly merchandising the display area, your sales will start to rise. Retail mar keting can increase your gross profit. Unlike traditional customers, retail cus tomers do not receive the price breaks that reduce your gross profit margin. 12 Therefore, when your retail sales in crease, your total gross profit will also increase. On the average, retail shoppers are fairly constant consumers who are not impacted by business fluctuations as traditional customers are. Retail market ing evens out your business cycles. To maximize your retail marketing efforts, "The Look of the Leader," a new retail marketing seminar, has been devel oped to cover vital information on retail strategy and marketing. It is available through your Distribution Center. The seminar is divided into two portions. The first consists of a two-day seminar for store owners and managers. The second section is a self-study course for store per sonnel to complete on their own. The two-day seminar brings together NAPA AUTO PARTS store owners and managers who have made a commitment to strengthening and expanding their retail business focus. The seminar identi fies the following elements necessary to reach that goal. Store design is a strong influence upon retail shoppers' decision to buy or not to buy. A pleasing, yet professional, exterior brings them in. An open, well displayed interior, as well as merchandis ing techniques, encourages them to pur chase. Store layout is another important design aspect covered. Promotional advertising, fol lowed up with displays, is an important method to reach the retail audience. Ad vertising is an important tool to solidify your place in retail. One session is devoted to identifying and using the most effec tive means of advertising, including sig nage, in your area. Hands-on activities about serving retail customers will help you and your employees successfully sell to this mar ket and deliver the service that keeps them coming back. The self-study portion allows your employees to learn the elements of effec tive merchandising and how to best use the tools of the trade that NAPA offers. Once your store has achieved the retail niche, don't allow yourself to become complacent. Store maintenance is a key to upholding your professional image. Retail customers will look to you as the leader--if you project the appearance. The seminar reinforces retail ideology with exercises and activities you can use in your store. Group discussions will bring to light the experiences of others, allowing you to profit from the ideas that work. As part of the seminar, your employees will have the opportunity to complete a self-study videotape course and accompanying workbook to learn the basics of retail business and its imple mentation. The retail marketplace offers a tre mendous potential to increasing your sales. "The Look of the Leader" helps en sure that you are prepared to serve those customers and operate a successful, prof itable retail marketing program. The nominal investment of $200 per partici pant will bring a significant increase to your retail business and gross profit. Contact your Distribution Center for registration information. REACH1H THE REUUL MARKET Increasing the sales of NAPA AUTO PARTS stores. It's a goal each and every NAPA store, as well as the entire NAPA distribution system, shares. In some NAPA programs this is accomplished with incentives for the traditional mar ket. In others it's done with incentives for the farm, marine and heavy duty markets. In 1989 increased sales to the retail market will be realized with a brand new initiative--the Retail Market ing Program. Basically the Retail Marketing Pro gram is one which establishes common dates and materials for six two-month periods, bringing together all the ele ments of both national and local promo tions and specials. And by bringing them together, produces a more effective and simpler means for NAPA AUTO PARTS stores to reach the retail customer. The program merges parts of past and current NAPA promotional programs-- Bargain Buys, Car Care Days, national price/product promotions and advertis ing and merchandising kits--with spe cials from NAPA Manufacturers. The Retail Marketing Program provides all of the elements a NAPA AUTO PARTS store needs for a promotion (products, plan-o-grams, point-of-purchase and ad vertising materials) and incorporates those elements with the flexibility needed to conduct an effective sales event in the local marketplace. The six promotional periods in 1989 are February/March, April/May, June/July, August/September, October/November and December/January 1990. Each pro motion will have an average of six to eight products which will be store traffic build ers, featuring special incentives such as manufacturers' rebates, sweepstakes and very competitive pricing, in addition to other high demand items. Prior to each of the six promotional periods, each participating NAPA AUTO PARTS store will receive a kit which contains plan-o-grams, four-color shelf talkers, danglers, window posters, news paper ad slicks, radio scripts and instruc tions. NAPA AUTO PARTS stores will then be able to choose the products, prices, length of the promotion and local adver tising they would like to use within the two-month period. Customarily, the two best selling sea sons for these types of promotions have been spring and fall. And that's the rea son national promotions will be tied into the April/May and October/November periods. Common themes, graphics and national advertising will be used to com municate that a sales event is occurring at the local NAPA AUTO PARTS store. The key dates for these two promotional periods are April 15-30 and September 30-October 15 and network television will be used to draw additional attention to the sales events. For these two key selling seasons and for the summer season as well, NAPA AUTO PARTS stores will have the oppor tunity to utilize another national advertis ing method--the National Circular Program. These three circulars will be four-color, four-page tabloids, each featur ing 30 to 40 fast moving products. Along with the predetermined products in each circular, an advance listing of pos sible additional items, to be included in a seasonal circular, will be provided. These "You Pick'em Lists" may be used if a cir cular is being customized to a store's trad ing area. Your Distribution Center will be able to tell you if the circularfs) is being customized for your area. The circulars may also be imprinted with the name and address of a store or group of stores. For those stores who do not wish to personalize an imprint, the message will read, "Available at partici pating NAPA AUTO PARTS stores. Call 1-800-LET-NAPA for the NAPA store nearest you." The circulars can be distributed to cus tomers in a number of ways, such as solo direct mail, marriage mail and newspa per inserts. NAPA stores may choose to participate in all three circulars or in just one or two. To assist NAPA AUTO PARTS stores in more aggressively pursuing the retail market and in making the Retail Market ing Program work even more effectively, the Retail Training Seminar is available. Read more about it on page 12. 13 LEAD ON WITH NAM AUTOCAR! PROGRAM The NAPA AutoCare Program con tinues to be one of the top customer bene fits you can offer to traditional service installers. The program assists them in effectively marketing and promoting their businesses in a way that no other competitor can match. Let installers know that NAPA understands their needs and wants to make them more successful. To assist you in that effort, NAPA Auto Care Program Manuals, along with sea sonal updates in the spring and fall, have been provided. Spring and fall AutoCare promotions, based upon seven automotive systems, will again be available to NAPA AutoCare Centers in 1989. The seven systems are: batteries, brakes, cooling and heating, ex haust, oil and filters, tune-up and shocks, and suspension and drive train. The promotions will be supported with Auto Care P.O.P./Ad Kits, containing P.O.S. materials and radio and newspaper ad materials. In addition, two-week national televi sion advertising periods featuring the "Best Garages in America" commercials will remind viewers that NAPA Auto Care Centers employ the best techni cians, offer the best sendee and install the best parts. The seasonal commercials will remind motorists that now is the time to take care of their cars. National advertising also encourages sendee con sumers to look for local specials on sendee work related to the seven automotive sys tems, making local advertising vital to the success of this segment of the nation al television advertising. To ensure that you and your tradi tional customers take full advantage of the NAPA AutoCare Program, a booklet has been developed covering 10 steps to "Building a More Successful AutoCare Program." The suggestions serve as an excellent guideline to nurture the per sonal commitment necessary from NAPA AutoCare Centers in order for the pro gram to prosper. The NAPA AutoCare Program is the link to building a better relationship with your best customers. It gives them the edge to compete with national chains. "1 see AutoCare as the centerpiece of my business future as a NAPA Jobber," says Lenn Lee, owner of NAPA AUTO PARTS/ Westbrook Supply, Inc. in Texarkana, Arkansas (serviced by NAPA Dallas). To continue to help sell NAPA Auto Care, the dealer leave-behind brochure continues to be available at a minimal cost of 75 cents each from NAPA Head quarters. Dealer advertising in major automotive magazines such as Motor, Motor/Age, Super Automotive Service, Service Station Management and Import Service will continue to run in 1989. a spotlight on the future of the automo tive aftermarket with the NAPA Auto Care Congress in early March of 1990 in Las Vegas, Nevada. This is an excellent opportunity for you and your traditional customers to hear lop industry speak ers, see manufacturers' exhibits and talk to representatives about changes in advanced automotive technology and vehicle servicing. A 100,000-plus-squarefoot exhibition hall will feature all NAPA product lines as well as major service equipment. Three days of seminars and four days of illuminating exhibits will be offered in hotels along the Las Vegas Strip. The 1990s bring a decade of new technology, innovative marketing and increased com petition. Make sure that you and your dealer installers are ready to meet the challenges. It's a chance that you and your best customers won't want to miss. An effective way to communicate in formation about the AutoCare Congress and enroll participants is to hold dealer meetings in January and February'. An other incentive to encourage sign ups is to develop an eamback program. The final enrollment deadline for the Auto Care Congress is March 15,1989. All par ticipants are automatically eligible for the enrollment sweepstakes as soon as they sign up for the AutoCare Congress. Prizes include air transportation for two couples to London, Paris or Madrid and air transportation for two people to Aus tralia with a stopover in Hawaii. Billings will be sent in three invoices: June 15, September 15 and December 15. To help defray expenses, many NAPA Manufacturers will offer NAPA Dollars throughout 1989 as part of product spe cials. NAPA Dollars may be ordered for your own use and are available in denom inations of $1, $10 and $20. The AutoCare Congress, developed for you to offer to your customers, is a way to present the latest information on the aftermarket industry that only an organ ization like NAPA could promise and de liver. Don't be left in the dark. Sign up to place a "Spotlight On The Future." Join the 1990 NAPA AutoCare Congress in Las Vegas! 14 PBE AND $9.2 BiLUON IN SALES It's out there. Over 9.2 billion dollars in sales to paint and body shops across the nation. But for the stores supplying the products, it's a sure bet that they must tell paint and body shop owners about what they can provide in order to get the biggest share of that 9.2 billion dollar market. In 1989 your NAPA AUTO PARTS store will be able to do just that with the PBE Flyer. Entering its second year, the PBE Flyer promotes NAPA's coverage and product availability to the paint and body shops in your marketplace. And it drives home the fact that NAPA can service the total needs of these customers. PBE Flyers will be distributed in the coming year for three promotional periods-- March/April, June/July and September/October. Each flier is a four-color, four-page tabloid which offers select product specials and highlights an average of 38 different items. The fliers can then be distributed to paint and body shops. The cost for all three of the fliers is $25.00, which provides you with 25 copies of each issue. Prior to each promotional period, participating NAPA AUTO PARTS stores will receive information which details the elements of the upcoming flier. Product orders will be shipped between the 15th and 25th of the month preceding each promotion and the fliers themselves will arrive at approximately the same time. Getting the paint and body shop business. That's what the PBE Flyer is all about. Make sure you get your share. Sign up today. GET A REAL DEAL IN 1989 In some instances, it's a combination of the old and the new which makes the present and the future better. By taking the best from what came before and adding to it, a program is improved. And that's exactly what the NAPA Tool and Equipment Group has done for 1989. It all begins with the return of the Real Deals Program, one of the most successful NAPA programs around. Again in 1989, there will be three Real Deals promotional periods, each with its own eight-page tabloid. And again in 1989, the Earn or Return option is available to let you sell NAPA tools and equipment and return anything you don't sell at the end of each Real Deals promotion (within 30 days of the promo tion's end). To help you in getting those Real Deals sales, the promotions will also be backed by national print adver tising in Motor magazine. As has been done in the past, there are two plans available for your Real Deals program. Plan A gives you copies of the tabloid and leaves the means of distribution in your hands. Plan B han dles all the aspects of distribution for you. But whichever plan you choose, you'll receive something else in the com ing year that is going to push your Real Deals sales even higher. Each of three promotions will have its own set of brand new merchandising materials, including window banners, shelf talk ers, tabloid counter stands and price tags. Thereby, making it easier to mer chandise Real Deals products and easier to increase sales. Once your Real Deals displays are up, you can win by entering the NAPA Tool and Equipment Group's Focus On Mer chandising Sweepstakes. By just setting up your Real Deals displays and follow ing the guidelines provided in the sample photograph included with each Real Deals information packet, you'll be elig ible for the Focus On Merchandising drawing. Just send in a photograph of your Real Deals display (with your name, your store name, address and telephone number on the back) after each promo tion and you could be the winner of an RCA VHS video camcorder. But if you don't win the camcorder and you're one of the first 500 stores to send in a photo for any of the three drawings, you'll still win. Because you'll receive a Kodak Fling self-contained camera absolutely free. New for 1989 are the pocket-size bro chures which will come out prior to each of the three Real Deals periods. These brochures contain product descriptions, feature benefits and suggested applica tions--in short, all the information you'll need to have at hand about the featured products. The NAPA Van Program is also going to make a big impact on your 1989 Real Deals sales. With the expanded Van Pro gram you can bring Real Deals products directly to your customers, both current and prospective. Your Distribution Cen ter will be able to tell you more about the expanded Van Program. Over 4,400 NAPA AUTO PARTS stores realized the value of the Real Deals Pro gram in 1988. Join them in 1989 and watch your tool and equipment sales take off. 15 NAM PIPELINE CONTINUES TO RAISE SALES MI: NAPA AUTO PARTS Pipelining works. Sales increases for pipelined stores are more than double increases recorded by stores without the blue and grey exterior accented with a gold pipeline. The NAPA Store Design Program has celebrated its third anniversary with more than half of the 6,600 NAPA AUTO PARTS stores as participants. The pro gram's strength lies in the number of stores able to take advantage of the local and national recognition and tie in im mediately with image advertising, suc cessfully used in 1988 and continued for 1989 to increase consumer awareness. Image advertising during sporting events will be a primary means of effectively reaching the service installers, service consumers and DIYers. In addition, net work and cable television will be the work horses of the 1989 advertising schedule. If you're still considering adding the gold pipeline to enhance your store's exterior, remember that 1989 is the final year to include pipeline material and NAPA AUTO PARTS letters for co-op reimbursement. The pipeline is undeni ably an immediate way for motorists to spot a NAPA AUTO PARTS store as they travel anywhere in the country. Don't hesitate and bypass this wise business investment opportunity. The gold pipeline easily distinguishes NAPA AUTO PARTS stores from the competition, symbolizes the basic com mon thread unifying the nation's largest auto parts distributor and reminds the public of the thousands of activities that must happen to get all the right parts in all the right places. Color is an important element of the NAPA Store Design Program, which cov ers the interior as well as the exterior. The neutral grey hides dirt and, when combined with blue accents, will make your store appear larger. The comprehensive interior design includes everything from fixture layout and counter design to product placement and track lighting location. Fixtures placed at 45 angles open up the store's aisles, encouraging customers to walk through the aisles. Counter design can motivate impulse buying by adding sales snapper fixtures. Banners strategically placed throughout the store tell custom ers where they can locate merchandise and seek top service and technical exper tise. Blue floor tape subtly draws con sumers to walk throughout the store and also prompts impulse purchases. Track lighting places the spotlight on featured products and helps to make your store look open with well lit store front win dows. The visual image projects a profes sional statement about your business. For information, contact the NAPA Store Design Group at 404-435-3522, or your NAPA Distribution Center sales department. CHARGE IT THE iARA WAY In 1988, NAPA launched its Credit Card Program to make shopping at NAPA AUTO PARTS stores easier, there by increasing your business. The pro gram also makes credit card and check transactions simpler and less expensive for you. Already over 1,000 NAPA AUTO PARTS stores are displaying the NAPA/ Visa card application form. The credit card is a big benefit for you because it in creases sales and customer loyalty, en courages repeat business at your NAPA store, and, most importantly, increases consumer recognition of the NAPA logo. Cards are available to your business ac counts as well as to individual consumers. Consumers benefit from carrying the NAPA/Visa card as well. Owners of the card do not pay an annual credit card membership fee and they receive addi tional cards for family members at no cost. Additionally, they are offered car rental discounts and travel, accident and group insurance. The card, which can be used anywhere Visa is accepted, can also be used to get cash at some 15,000 Plus System automatic teller machines. 16 As part of the program, you can have electronic terminals installed which authorize charges on Visa, MasterCard, American Express, Diner's Club, Carte Blanche and Discover cards in seconds. Because Visa and MasterCard transac tions are transmitted electronically, cash is deposited into your account in only days after a purchase. And you'll receive a discount rate of only 1.87%. The electronic terminals also allow you to receive instant guarantees on checks of up to $600. Additionally, check authorizations only cost you 1.9% of the face amount of the check with a min imum 50 cent transaction fee and a mini mum $50 per month charge. The electronic terminal costs only $250 or you can lease it for just $16 a month. And the equipment carries a 30-day money back guarantee and a oneyear warranty. There is a one time instal lation and set-up charge and during the second year, there is a monthly mainte nance and support fee. These installation and maintenance fees cover all replace ment and repair charges. If you already have a compatible terminal, all you have to pay is a one-time, reprogramming fee. Finally, with the Credit Card program, you have a choice of how you want your American Express charges processed. You can choose electronic or voice author ization. And, depending on the payment plan you choose, you can get reimbursed for charges in as little as three days at a 3.25% discount rate to 30 days with a discount rate of 2.75%. To get more information about NAPA's National Credit Card Program or to receive your NAPA/Visa In-store Sales Kit, contact U.S. BankCard Center 1-800 528-9189 or 1-800-233-2470 (in Tennessee). HAW DUTY LEADER The heavy duty marketplace is a customer base that, in the past, has not reached its full potential for NAPA. Those days are over. To meet the challenge of the heavy duty sector, NAPA has focused on one system at a time in order to secure a foothold in the market. In 1989, the attention will be on brake systems. Some of the features of the heavy duty brake systems program are: Price reduction on LRS, AFS and RS series thick block brake shoes. Increased coverage by adding 38 heavy duty brake drum part numbers and 428 part numbers for wheel attaching hardware. Introduction of a low end, non-asbestos block program. Addition of a remanufactured valve and compressor program. Expansion of the heavy duty oil bath seal line along with additional installation tools. Distribution of a complete heavy duty brake systems catalog. To complement the extensive heavy duty parts coverage, training--technical clinics and employee programs--will be a key to securing an increased share in the marketplace. 189 MARINE PROGRAM In 1989, NAPA is introducing a comprehensive Marine Program to let marinas know that NAPA has the parts and supplies they need. As part of its new Marine Program, NAPA has compiled a complete Marine Catalog of those NAPA products that have marine applications. In early 1989, NAPA will dis tribute the Marine Catalog to some 14,000 marinas across the country. To support the catalog and extend NAPA's coverage of the marine market, NAPA Manufacturers who produce marine parts and supplies are stepping up their pro motions of these products. For example, NAPA Batteries is reducing the suggested jobber net prices on marine batteries, such as the Marine Deep Cycle and Commander's Edge, so that you can offer competitive retail prices to your customers. In addition. Batteries is offering an extra 2% to 4% discounts for large orders of specialty batteries, including marine. They have also relabeled their batteries to help your customers immediately identify the batteries' varied purposes--marine, RV, lawn and garden. For more information on NAPA's Marine Program, and how you can take advantage of it, contact your Distribution Center's sales manager. m INTO THE Mi MARKET The farm and rural DIY market is a natural one for NAPA. Because farmers and rural DIYers are often miles from the nearest automotive repair shop, they must maintain and repair their vehicles and much of their farming equipment. Consequently, they have become the leading group of do-it-yourself auto mechamcs To help you and other NAPA AUTO PARTS stores tap into this market, NAPA launched its National Farm Circular Pro gram in 1988. The circulars came out twice a year, during planting and har vesting, and included 12 pages of product specials as well as a listing of NAPA AUTO PARTS stores and their locations. These circulars were distributed to farm ers and rural DIYers through direct mail, newspapers, shoppers and handed out at NAPA stores. In addition to the circulars, the pro gram was supported by point-of-purchase displays and ad slicks that were used in local advertising. The 1988 program proved so success ful in targeting the farmer and rural DIY customer and bringing more of their business into NAPA AUTO PARTS stores that it has been continued and enhanced for 1989. The highlights of the coming year's program will be the 1989 Farm Sweepstakes and the accompany ing national advertising campaign. The sweepstakes' grand prize giveaways in clude a trip to Hawaii for the spring win ner and a Chevy S-10 pickup for the fall winner. The 1989 Farm Circular Program will once again revolve around spring and fall promotional periods. This year's circu lars will feature specials on over 200 products from 28 of NAPA's Manufactur ers. The spring circular period is planned to run from February 15 through April 30 and the fall circular is scheduled to begin July 3 and end October 31. 17 NATIONAL WARRANTY PROGRAM ENSURES CUSTOMER SMISFACTION In 1986, NAPA introduced its National Warranty Program. Almost three years later, NAPA's warranty coverage is still the most extensive in the automotive aftermarket. Simply, the NAPA National Warranty Program says that every NAPA branded part, purchased or installed anywhere in the country, is covered by the manufac turer's warranty. If a part is defective, it will be handled by any participating NAPA AUTO PARTS store or service dealer, even if the part was not sold at that particular location. The program has given you, the NAPA store owner and manager, an edge over , your competition. Customers will asso ciate the level of service they receive at one NAPA AUTO PARTS store with the NAPA system and name as a whole. That's why the National Warranty Pro gram is so important; it reinforces NAPA's reputation by ensuring that wherever customers may travel or live they can depend on the same NAPA quality and service. Dealer customers know the parts they buy from NAPA and install in their cus tomers' vehicles are of the highest quality and they can pass this assurance along to their customers. No other automotive product supplier can give them as com plete a guarantee on their products as you can. And because their customers benefit, the warranty program helps im prove your traditional customers' busi ness, which is the best incentive for them to continue using NAPA auto parts. Motorists who are aware of the Nation al Warranty Program, as more and more are, look for service installers display ing NAPA signs because they know they'll receive quality parts and reliable service. NAPA's National Warranty Program is a plus for everyone involved in the NAPA system. It's good for you, the NAPA store owner and manager, because it means more customers for you. And it's good for your dealer accounts because it gives them a way to ensure their customers' satisfaction. DIAL 1AM FOR QUALITY AND SERVICE For almost three years, NAPA's toll-free referral number, 1-800-LET-NAPA, has put NAPA at the fingertips of consumers. Not only has the service helped consumers who are trying to find a reliable parts supplier, but it has also assured motorists across the U.S. that no matter where they are, they can find the quality auto parts and service they've come to depend on from NAPA. When a caller dials 1-800-LET-NAPA, the call is answered by a marketing repre sentative who gets the caller's location and then directs him or her to the nearest participating NAPA AUTO PARTS store. If the caller needs repair service, the NAPA store refers him or her to a NAPA service dealer. Currently 1-800-LET-NAPA receives an average of 40 calls every day. During pro motional advertising, this average can jump to over 100 calls a day. The toll-free number generated almost 15,000 prospective customers in 1988. This number is expected to climb as the program becomes more established and more and more con sumers are aware of the service. If you have participated in the National Advertising Program, you've already received customers as a result of the toll-free number and therefore you realize the benefits this NAPA service offers you. But in addition to bringing more customers into individual NAPA AUTO PARTS stores, the service lets motoring con sumers know that NAPA is ready and able to meet their automotive supply needs, wherever they may be. You can bet with service like this, NAPA will continue to be the automotive supplier more and more consumers choose first. 18 FINE TUNE YOUR INVENTORY WITH CUSTOMIZED CLASSIFICATION More muffler and exhaust system parts are stocked and sold in New England NAPA AUTO PARTS stores than other areas of the country. Radiator hoses are a popular item in St. Louis. On the West Coast, parts for import vehicles are fast sellers. With more than 125,000 part numbers in the NAPA classification system, how do you, as a NAPA AUTO PARTS store owner, keep an inventory sufficiently stocked and customized to meet your cus tomers' needs? NAPA provided the answer to that question in 1986 with its Customized Classification Program. This system suggests to New England jobbers that customers purchase mufflers and exhaust system replacement parts more frequently in the Northeast--a region that salts the roads, a process that leads to faster deterioration of mufflers and exhaust systems as well as clearing roads of snow and ice. On the other hand, import part numbers are popular items from Seattle down to San Diego. The customized classification cate gories of D, C, B and A were set up for you to identify fast moving parts in the area serviced by your NAPA Distribution Cen ter. The suggested classification code lets you know how frequently motorists in your area purchase a part. Not only does the listing suggest popular parts to stock but it also protects your inventory from obsolescence. Due to the size of the customized clas sification book, the annual part review process occurs over three periods rather than within one designated time frame. You then receive the updated customized classification catalog in shipments duringjanuary, May and September. Using the sales records for your area, NAPA's Classification Department will analyze each part number to determine how often it was replaced, overall part sales by the manufacturer, the age and types of vehicles using a certain part and the number of registered vehicles in a par ticular area. After gathering and review ing the information, each part number receives a classification code based on sales history and potential. Positive results prove that the Custom ized Classification Program works. This is just another example of how NAPA continues to develop better ways for NAPA AUTO PARTS stores to operate their business. Muffler and exhaust systems are pur chased more frequently by vehicle owners in New England. (Courtesy ofthe Greater Boston Convention & Visitors Bureau) Customized classification identifies parts for import vehicles as popularselling itemsfor Northern California NAPA store owners. (Courtesy of Golden Gate Bridge Highway and Transportation District) NAM YELLOW PAGES: THE EASY WAY TO ADVERTISE When potential customers let their fingers do the walking through your local yellow pages to find an auto parts sup plier, you hope that they come to rest on your NAPA AUTO PARTS store ad. To help you ensure that they do, NAPA has a National Yellow Pages Program through Telephone Directory' Advertising, Inc. (TDA). TDA can help you simplify yellow and white pages advertising in several ways. If you've been confused by the options open to you--Should you list your store in more than one directory? Should you run your ad under more than one head ing? Do you need a display ad?--you don't have to be anymore. TDA advises you on where and how to advertise in your local white and yellow pages so that your ad vertising dollars are used as effectively as possible. They recommend which di rectories will give you maximum coverage of your market and how you should run your ad to attract potential customers. When it comes time to renew your ad, they'll notify you of your deadline 60 to 90 days ahead of time. Then, once you've given them the updated information for the ad, they'll renew it for you and follow up on the details. It couldn't be easier. Probably the best way TDA helps you is by coordinating joint yellow' pages advertising with other NAPA AUTO PARTS stores in your area. Not only does listing your NAPA store with others save you money but it also lets you capi talize on the NAPA name and reputation. You get more advertising impact for less money and it's all taken care of for you. To sign up for the program or to receive additional details, contact your Distribu tion Center or call TDA toil-free at 1-800 422-0355 or 404-993-3222 (in Georgia). 19 COMPUTER CAIALOGING- RAISE SALES WITH A WISE INVESTMENT "Computer cataloging is the way to do business now.'' Better than one of every 10 NAPA AUTO PARTS stores can attest to the success of the program. After nearly one year since starting up computer catalog ing, 700 NAPA AUTO PARTS stores have installed the efficient, paperless system and increased their sales. Counterpeople can spend more time with customers rather than looking up part numbers in a paper catalog. With computer cataloging, counterpeople sim ply enter the make, model year and engine size of a vehicle into the computer to look up a part. In addition, the computer can suggest related sale items the customer may use. The computer cataloging system con sists of 12 major categories: tune-up and filters; belts and hoses; brake systems; fuel systems; heating and engine cooling; exhaust systems; steering and suspen sion; drive train; vision and safety; engine parts; electrical; and air conditioning sys tems. In turn, each category is divided into subcategories. Stores have gained counterspace by exclusively using computer cataloging, doing away with cumbersome catalog racks. The computer cataloging program completes the full line of services avail able through TAMS. Now all business activity is housed within the one com prehensive system. Computer cataloging also works for your traditional customers, who may tie into the system through the customer in quiry terminal. With an investment of a computer terminal or CRT screen and a telephone modem, dealers can easily: Check the availability of a part num ber--is it in stock? Look up parts. Order the parts and leave a message, if necessary. With a dealer terminal installed, your customers will automatically think of NAPA first when ordering parts because they save time by placing an order the first time rather than receiving a busy signal or being placed on hold. The dealer terminal is an additional benefit for important traditional custom ers. It is another symbol that NAPA of fers better, more complete services than competitors. What customer could turn down an opportunity to run a business more effectively? If you do not yet have computer cata loging or wish to offer the dealer inquiry system to your customers, contact your Distribution Center to set up a winning investment in your business future. NAM SIIVERUNE CONTINUES TO BE A 'STERLING' PERFORMER In 1987, NAPA introduced NAPA SIL VERLINE to target the more price conscious shopper and thereby attract more business to NAPA AUTO PARTS stores. This lower-priced product line, with its own packaging and marketing concept, has become one of NAPA's most successful programs. NAPA SILVERLINE is an extensive line of auto parts designed to give your D-I-Y and traditional customers a range of products and prices from which to choose. And like any NAPA part, NAPA SILVERLINE products are covered by the NAPA National Warranty Program. With NAPA SILVERLINE, you are better able to meet all the automotive needs of all your customers. The program has been successful because it includes its own advertising, merchandising and sales techniques in addition to its competitively priced, qual ity parts. By advertising the low prices of NAPA SILVERLINE products in your local market, you are able to draw more customers. Once the customers are in your NAPA store, the product line offers 20 you the chance to sell up to the NAPA brand line or sell products related to the NAPA SILVERLINE part they are purchasing. You can also use NAPA SILVERLINE to attract customers who call for infor mation on a certain part and its price. By giving them the price of the NAPA SIL VERLINE product, you let them know that NAPA has a range of prices that are competitive with other parts stores. For example, if a customer calls to inquire about your muffler prices, you can tell him or her that you have mufflers start ing at $19.95. When the customer comes in you then have an opportunity to show all your mufflers, NAPA SILVERLINE and NAPA brand, explain the differences and suggest related products such as muffler clamps and muffler hangers. Special merchandising for the line includes NAPA SILVERLINE gondola information panels that give product information and installation tips. The panels also explain the differences between NAPA SILVERLINE and the NAPA brand line to help customers choose the auto part that will best fit their applications. There are also other basic merchandising techniques that are effective when used with NAPA SIL VERLINE. Since its inception, the NAPA SILVER LINE program has grown to include over 1,000 part numbers. In 1988 several lines experienced hefty sales increases, evidence of the program's success. Martin-Senour introduced a NAPA SIL VERLINE Spray Paint and Belden added 33 new custom wire sets for domestic and import applications. Belden also in troduced a 5 year/50,000 mile warranty for all its NAPA SILVERLINE products. COUNTDOWN TO SUCCESSPLAN 10 ATTEND THE 1989 NATIONAL BUSINESS CONFERENCE Bigger and better--that's the best description of offerings from the 1989 National Business Conference in New Orleans. The New Orleans Hilton, rated a top four star by Mobil and four dia mond by AAA, is the site of the NBC. Approximately 95,000 square feet has been reserved for new product and tech nology exhibits, making this showcase one of the largest ever during an NBC. From March 16 to 19, the Crescent City will be geared up to provide you with quality entertainment and activities. The Riverwalk Festival Marketplace, offering casual and fine dining along with more than 140 specialty shops, is within walking distance of the Hilton. In addition to the French Quarter, the New Orleans Superdome and business and shopping districts are in close proximity to the NBC site. While you are at the mouth of the mighty Mississippi, take advantage of the paddlewheeiers, the Creole and Cajun Queen, and enjoy a sightseeing trip on water. No trip through New Or leans would be complete without a ride down St. Charles Avenue in a street car, part of the oldest continuously operating street railway system in the world. Dining in New Orleans is one of the most palatable trips you can make. From the spicy seafood gumbo to desserts of bananas foster or a cup of chicory and a beignet and almost anything in between, you can satisfy nearly any craving. (See August/September Outlook for New Or leans restaurant guide.) While New Orleans offers these fine selections, you will be coming primarily to attend the National Business Confer ence and find out how you can operate a more efficient, productive business and that's what you will learn. The NBC agenda includes the following: NAPA AUTO PARTS store: View the model equipped with the latest in merchandising items and techniques to make the most of your sales area. An ef fective display, covering the interior and exterior, of the NAPA Store Design Pro gram will be shown at this exhibit. Machine Shop: Displaying more equipment than ever before, the exhibit will run the gamut from the very basic to the very sophisticated. Learn how to plan the best business strategy to invest in this lucrative market. Manufacturers' Exhibit Hall: See one of the most expansive arrays of NAPA products ever assembled under one roof. Meet with your suppliers and find out what they have to offer not only along product lines but also in the important area of technical training. General Session and Seminars: In dustry leaders will be among featured speakers to discuss the state of the after market. Timely seminars have been de veloped to meet your business needs. Specialized seminars will answer your questions about how the new tax 'laws affect you, developing a well-rounded employee team, increasing your profits and employee productivity. The NBC is not all work, you can also let the good times roll at a Mardi Gras party for attendees. For NBC flyers, American and Delta Airlines are offering special discounted air fares. For the best rates, call either American Airlines at 1-800-433-1790 and give the NAPA STAR number 597074 or Delta Airlines at 1-800-241-6760 and give the NAPA File number E0015. While in New Orleans, Budget RentaCar is of fering economical rates. Call 1-800-772 3773 and indicate that you are with the NAPA Convention. Registration deadline is February 13, 1989. Act now to get a head start on the competition. 21 NAPA's training programs give you all the resources you need to have the competitive edge in the automotive after market and they have been developed explicitly to meet your needs. NAPA's Management Training Courses are designed to help you run the most effective business you can. In 1988, NAPA introduced the NAPA Sales Management Seminar to teach you how to organize and manage your outside sales program. Along with its companion course, NAPA Professional Sales Training, this course provides you with a complete approach to building your store's sales. And the latest addition, "The Look of the Leader" (see page 12), joins the line-up in 1989. One of the most popular courses in the Management Training area is the STAR self-study program. This course teaches you how to manage your time, how to build an effective team of employees and how to set management goals for your NAPA store. The second broad area under the NAPA Training umbrella is Employee Training. Courses in this area give your employees the skills they need to be personally and professionally successful. The NAPA Professional Sales Training Seminar is a favorite Employee Training course. Pre viously called the Outside Selling Skills Program, the course has "graduated" almost 10,000 people and was revised in 1988 to be even more relevant to today's outside salespeople. It teaches basic sell ing skills; how to analyze the market; and how to find, build and keep accounts. A new video/workbook program, Inside Opportunities at NAPA, has been added to the Employee Training program. If you have new employees inside your NAPA store--cashiers, counterpeople, or mer chandisers--this oourse is the perfect way to introduce them to their responsibilities and the opportunities they have within NAPA. It also covers the different types of NAPA customers and how inside em ployees can encourage their continued business. And, it explains the tools a coun terperson uses, from catalogs to the or dering and delivery system. The third category of NAPA Training, Store Customer Training, ensures that your traditional customers can handle any automotive repair problem. The Automotive Service Management Course teaches independent service and repair professionals the management skills they need to recruit employees, maximize profitability and productivity and, most importantly, get new customers and keep old ones. This course won an Automotive Training Managers Council Achieve ment Award for the value and scope of its content. The Store Customer Training pro gram also includes a multitude of tech nical clinics and videotapes developed by NAPA Manufacturers to explain the application, installation, maintenance and repair of their products. NAPA's training program gives you what you need to win in the automo tive aftermarket. If your business is to succeed in this changing industry, it is crucial that you take advantage of the training resources available to you, your employees and your customers. For de tails on the various seminars, self-study courses, videotapes and workbooks avail able, contact your Distribution Center. STAY AHEAD WITH NAPA COMMUNICATIONS NAPA's communications efforts are designed to keep you up-to-date on devel opments in the automotive aftermarket and familiarize you with the latest pro grams available from NAPA. And NAPA does this through its publications Out look, NAPA News and Update. 22 To make sure you get the information you need to stay on top of the automotive aftermarket, NAPA began publishing Outlook 10 times a year in 1988. The magazine features news about NAPA's marketing and advertising programs, as well as developments throughout the in dustry that may affect your business. As in the past, every NAPA AUTO PARTS store receives a free copy of Outlook. Addi tional copies are available by contacting your Distribution Center's sales manager. NAPA News, NAPA's longest-run ning publication, is published three times a year--spring, summer and fall. This technical publication is geared toward professional service technicians and seri ous do-it-yourselfers. It contains service and installation tips and information about the industry's latest products and equipment. A subscription to NAPA News costs $42.00 a year and gets you 100 copies each of all three issues. In addition to being a valuable and timely source of automotive information for you and your employees, the publication is an effective marketing and public relations tool. By distributing copies to your customers, you let them know that you are dedicated not only to providing them with top qual ity NAPA parts, but also to supplying them with the latest automotive informa tion. When left behind by your outside salesperson during sales calls, the publi cation helps keep NAPA on the minds of existing and potential accounts. The newest NAPA publication, Update, is published monthly and contains infor mation on NAPA programs, industry- trends, discount programs from manu facturers, special rebate offerings, and other timely issues. This two-page news letter contains brief news items announc ing critical developments. Its format has been designed so that you get a great deal of valuable information in a short time. Update is free to all NAPA AUTO PARTS store owners and managers. ANNUAL MEETING KICKS OFF '88 MARKETING PROGRAMS NAPA held its 1988 Annual Meeting in Atlanta, Georgia, October 16-18. Focusing on the 1989 marketing theme, "Lead On," the meeting launched the marketing pro grams for the upcoming year. Over 700 Distribution Center person nel, NAPA Manufacturers' representa tives and other invited guests convened in Atlanta to hear about the progress made in 1988 and about the plans to ex pand on this progress in 1989. Robert E. McKenna, NAPA president, set the tone for the Annual Meeting in his opening speech "NAPA Lead On." High lighting 1988, he said that sales were already up significantly. He challenged the Distribution Center and manufac turer representatives to lead in their areas so that NAPA can continue its phenom enal growth of the past two years. He also outlined factors in the industry that would work to NAPA's advantage in the coming years. He mentioned that new vehicle sales have increased, the average age of cars and trucks have leveled off at 7.6 and 8 years respectively, the number of miles traveled continues to set new records and that design and technological changes are pushing more repairs to the service market. Several other NAPA and Genuine Parts Company (GPC) execu tives gave state-of-the-organization ad dresses including Larry Prince, president and chief operating officer of GPC (see page 6). A highlight of the meeting was the an nouncement of Alan W. Keyes as the 1988 NAPA/ASE Technician of the Year. Keyes, who was nominated by Gerald Peters, owner of NAPA AUTO PARTS/ Mohawk Valley Auto Parts in New York Mills, New York (serviced by NAPA Syra cuse), received the award and addressed the audience during the first morning's session. Another highlight was the announce ment of NAPA Belden as the 1988 Spirit of NAPA Award recipient. This award, given annually, recognizes the NAPA Manufacturer that has shown overall excellence in supplying and servicing NAPA Distribution Centers during the past year. During the two-and-a-half days of the Annual Meeting, participants attended seminars and workshops to get details on the marketing programs planned for 1989. The sessions covered retail market ing programs, the AutoCare program, marine and farm programs, the heavy duty program and the new NAPA Credit Card Program. 24 NAPA President Bob McKenna presents Alan Keyes, 1988 NAPA/ASE Technician of the Year, with a replica of the 1989 Chevy S-10 pick-up truck he will receive, along with prizes from NAPA Manufacturers. Wayne Waterfield (at left), vice president and general manager of Parts Craft and 1988 chairman of NAPA's Manufacturers' Coun cil, passes the gavel to Dick Erler, 1989 chairman, during the An nual Meeting. Erler is vice presi dent of sales and marketing for NAPA Mufflers and Shocks. Representatives from NAPA Belden proudly display the Spirit ofNAPA ban ner and the plaque they received for winning the 1988 Spirit ofNAPA Award. NAPA Echlin is pleased to announce an all new Outside Salesperson Awards Program for 1988. This program is designed to award prizes to those that qualify by selling new or changeover stocking dealers during 1988. JUNE OSS WINNERS OSS Name Store Ron Rassmusen Ron Smith Dan Coon Fred McKinnon Bndgeview Auto Parts T.P. Auto Galesburg Auto Supply Genuine Parts Company Prize Sharp Remote TV Magnavox Stereo System G.E. 7500 Remote VCR Konica 35mm Camera NAPA ECHLIN BRANFORD, CT 06405 Or Win one of more thanf HyiMlii inner tnstHfii ftWarAig -?-r? l4P4 Gmkem 0*0* You and your customers can INSTANTLY win a free trip to Las Vegas or up to $10 in Wendy certificates. It's all part of the great new NAPA Spring Salesmaker Pro gram coming your way soon. Ask your NAPA Engine Parts Sales Representative for details. We Supporl dana^ Copyright 1989 4NAPA) Gaskets ......' . ^''^'totroSiicifig-THe LEGENDTM from' NAPA... created to be the ' ' 'battery of the future... created to boost your .sales right now. The LEGEND i,s better in reserve power. Better with a 75-month warranty. Better in durability with its unique Ancor-LokTM construction. And better to install since it comes with its own handle (most, sizes). . What's more. The LEGEND is being backed by the most aggressive battery sales promotion program ever developed. Starting in July, you can expect national network TV, anil national magazine advertising. Plus a special $10 rebate program available at stores arid dealers from July loth through August 15th, and during the month of October. All supported with heavy advertising on network TV and national magazines. Dealers can fake advantage of the "Legendary Reward" incentive Program including free trips to the Super Bowl. Plus you can get escalating discounts on LEGEND pur chases allowing you to extend additional savings to your dealers. ' Make sure you're part of this better battery program. It will lead to better sales and profits. And a better future for all. The LEGEND... a better battery. All the ri] Ml then: ......... ini- .1 i. r MIA I'l-iiihc m .1,. I\id -