Jessica M. Hyde
October 6, 2014
Executive Summary Fram Filtration is a filtration solution company that manufactures both branded and private label filters for the automotive aftermarket. FRAM is operated by its parent company, UCI-FRAM AutoBrands, which is among North America's largest and most diversified companies servicing the vehicle replacement parts and car care market. UCI-FRAM Autobrands operates industry leading businesses include Airtex Products, ASC Industries, Autolite, FRAM Filtration, Holts, Prestone, and Wells Vehicle Electronics (Uci-fram.com, 2014). Fram Filtration is built upon the integration of FRAM and Champion laboratories and has created one of the strongest filtration companies in the world combined the best filter engineering talent in the industry. Fram Filtration offers comprehensive filtration coverage consisting of oil, engine air, cabin air, fuel, and transmission filters.
Situation Analysis Fram Filtration is entering its second year in business after being sold by Honeywell International Inc. and Champion Labs and operating as a combined business. FRAM filtration is known for its leading consumer brand FRAM filters. Champion Laboratories was known for its leading brands such as Luberfiner, Petroclear, Champion filters, and over 50 private label brands. With four major brands the company now operates as the leading filtration company within the automotive aftermarket. However, there has been quite the learning experience as two filtration companies integrate to create one of the strongest global filtration companies in the world.
Fram Filtration has a wealth of information about the automotive aftermarket and identifies many core characteristics of its top tier customers. This information will be utilized to better understand who the customer base is, what their specific needs are, and how Fram Filtration can better communicate with the end consumer.
Fram Filtration’s customer base includes leading aftermarket companies as well as a diverse group of original equipment manufacturers in the automotive, trucking and various industrial vehicle markets (Uci-fram.com, 2014)
Original Equipment Manufacturer (OEM)
Original Equipment Service (OES)
Heavy Duty Aftermarket
Marketing Demographics The customer profile for a classic Fram Filtration customer consists of the following geographic, demographic, and behavior factors:
Fram Filtration operates through a global network of manufacturing facilities, distribution centers and offices located throughout the United States, Canada, Mexico, Europe and China (Uci-fram.com, 2014)
The end consumer of FRAM filtration is Male between the ages of 20-54. This male has one or more vehicles and has shopped an autoparts store or retail store in the last 6 months (Russell Research, 2012).
The target consumer personally spends money to maintain, repair, or enhance their vehicle. Most of Fram’s customers have changed their oil filter in their vehicle in the past 12 months (Russell Research, 2012).
Marketing Needs Fram Filtration is providing the Aftermarket Automotive market with a wide range of filtration solutions for their cars, lawn mowers, and small engine vehicles. The company hopes to provide the following benefits that are important to its customer base:
Provide quality filters in an industry where filters have become commoditized.
Provide filters that provide protection.
Help keep car as close to purchase condition as possible for as long as possible.
Market Trends The automotive aftermarket industry is constantly changing. The life of a target consumer car is extended to 11.4 years in 2012 from 9.6 years in 2002 (Gareffa, 2014). Car (maintenance) attitudes are rapidly changing do to the economy and people are looking towards maintaining