| Additives are one of the fastest growing and most profitable segments of the chemical market |
Did additives exist 20 years ago? Yes, but the category was not as strong as it is today. Today’s additives have the backing of many of the major oil companies and chemical companies, who have made sure their lines are complete with gas treatments, engine treatments, fuel injector cleaners, octane boosters, etc.
Additives have a broader appeal than motor oil, according to Fred Mulfinger, manager of analytical services for Gladson & Associates. Motor oil has converted a lot of do-it-your-selfers to the do-it-for-me category because of the time it takes and because of the intimidation of going under the vehicle. Additives, on the other hand, have given the usual do-it-for-me a simple do-it-for yourself activity that allows them to actively take care of their vehicle. |
Top 10 Brands of Automotive Treatment*
(52-week ending Jan 2, 2000)
- STP
- Private Label
- Prestone
- Slick 50
- Dura Lube
- Gumout
- Quaker State
- Restore
- Prolong
- STP's Technology Edge
* According to food, drug and mass merchandisers
Source: Information Resources, Inc. 2/8/00 |
|
He said the visibility and marketing of higher margined products by oil companies and other chemical companies has changed the perception of consumers. Consumers are trying products they don’t normally use, because they believe in the brand name supporting it. Now consumers are perceiving a value to these products.
“And I think additives in general are a pretty good example of that,” said Mulfinger, “because they are just that – they’re additives. They’re things that are going to improve performance. The car will run fine without them in a lot of cases.”
These higher margined products help make up the difference that products like motor oil, brake fluid, transmission fluid, etc. lack in sales margin. Because of the possible sales, the amount of shelf space used to attract customers to the additives category has increased.
“The most popular item that sells the greatest quantity of all products would be gas treatments, in the broadest sense,” said Stephen Alexander, president of Automotive In-Store Marketing. “But in this complex world of chemicals, we are confronted with the fact that there are at least 18 sub-segments of maintenance and performance chemicals.”
|
Sub-segments of gas treatments include gas treatments, fuel system cleaners, fuel injector and carburetor cleaners, combustion chamber cleaners, octane boosters, etc. The key for retailers is provide a vast quantity of buying options. And, if a retailer does not stock enough products to go top to bottom with gas treatments, then other additives should be added to fill out the shelves, he said.
“If you have six shelves you use the middle two or three for ordinary gas treatments, because it’s the hot item. Above and below it you put sub-segments of gas treatments, such as fuel injector cleaners, fuel system cleaners or octane boosters,” he said.
COPYRIGHT NOTICE:"Reprinted with permission from Aftermarket Business, March, 2000, page 38. Copyright by Advanstar Communications, Inc. Advanstar Communications, Inc. retains all rights to this material." To subscribe to Aftermarket Business, call 1-218-723-9477 or email fulfill@superfill.com.
|
Printer Friendly Version