AutoZone 2013 Annual Report Download - page 69

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7
Merchandising
The following tables show some of the types of products that we sell by major category of items:
Failure Maintenance Discretionar
y
A/C Compressors
Batteries & Accessories
Belts & Hoses
Carburetors
Chassis
Clutches
CV Axles
Engines
Fuel Pumps
Fuses
Ignition
Lighting
Mufflers
Radiators
Thermostats
Starters & Alternators
Water Pumps
Antifreeze & Windshield Washer Flui
d
Brake Drums, Rotors, Shoes & Pads
Chemicals, including Brake & Power
Steering Fluid, Oil & Fuel Additives
Oil & Transmission Fluid
Oil, Air, Fuel & Transmission Filters
Oxygen Sensors
Paint & Accessories
Refrigerant & Accessories
Shock Absorbers & Struts
Spark Plugs & Wires
Windshield Wipers
Air Fresheners
Cell Phone Accessories
Drinks & Snacks
Floor Mats & Seat Covers
Interior and Exterior Accessories
Mirrors
Performance Products
Protectants & Cleaners
Sealants & Adhesives
Steering Wheel Covers
Stereos & Radios
Tools
Wash & Wax
We believe that the satisfaction of our customers is often impacted by our ability to provide specific automotive
products as requested. Each store carries the same basic products, but we tailor our inventory to the makes and
models of the vehicles in each store’s trade area, and our sales floor products are tailored to the local store’s
demographics. Our hub stores carry a larger assortment of products that are delivered to local satellite stores. We
are constantly updating the products we offer to ensure that our inventory matches the products our customers
need or desire.
Pricing
We want to be perceived by our customers as the value leader in our industry, by consistently providing quality
merchandise at the right price, backed by a satisfactory warranty and outstanding customer service. For many of
our products, we offer multiple value choices in a good/better/best assortment, with appropriate price and quality
differences from the “good” products to the “better” and “best” products. A key differentiating component versus
our competitors is our exclusive line of in-house brands, which includes the Econocraft, Valucraft, AutoZone,
SureBilt, ProElite, Duralast, Duralast Gold, and Duralast Platinum brands. We believe that our overall value
compares favorably to that of our competitors.
Brand Marketing: Advertising and Promotions
We believe that targeted advertising and promotions play important roles in succeeding in today’s environment.
We are constantly working to understand our customers’ wants and needs so that we can build long-lasting, loyal
relationships. We utilize promotions, advertising and loyalty card programs primarily to advise customers about
the overall importance of vehicle maintenance, our great value and the availability of high quality parts.
Broadcast and internet media are our primary advertising methods of driving traffic to our stores. We utilize in-
store signage, in-store circulars, and creative product placement and promotions to help educate customers about
products that they need.
Store Design and Visual Merchandising
We design and build stores for high visual impact. The typical AutoZone store utilizes colorful exterior and
interior signage, exposed beams and ductwork and brightly lit interiors. Maintenance products, accessories and
non-automotive items are attractively displayed for easy browsing by customers. In-store signage and special
displays promote products on floor displays, end caps and shelves.
Commercial
Our commercial sales program operates in a highly fragmented market, and we are one of the leading distributors
of automotive parts and other products to local, regional and national repair garages, dealers, service stations and
10-K