Napa Auto Parts 2002 Annual Report Download - page 11

than NAPA. To complement these ser-
vices, our well-trained professional out-
side salespeople assist installers with
their parts needs, and work with facto-
ry-trained representatives for
additional technical knowledge and
assistance. Also, our distribution network
allows us to deliver parts to our cus-
tomers quickly and efficiently. Our
valuable experience with installers over
the years and our growing understanding
of their needs position NAPA to grow
these profitable relationships in 2003
and forward.
At the core of our wholesale business is
the NAPA AutoCare Center Program,
the nation’s largest independent auto-
motive service and repair network,
with approximately 12,000 NAPA
AutoCare Centers at the end of 2002.
The Program offers independent repair
facilities a complete package of benefits
and business support, ranging from
advertising to technical and business
management training to a nationwide
warranty program. The NAPA stores
benefit as they serve the NAPA
AutoCare Centers – creating a real
win-win relationship. As planned, the
Program enjoyed significant growth in
2002, and growth opportunities for
new NAPA AutoCare Centers continue
to be identified for 2003 and beyond.
Major Accounts
NAPA enters 2003 as the partner of
choice for some of the nation’s leading
companies in the automotive repair
chain. “Major Accounts” such as AAA,
Sears, Goodyear, Midas, BPAmoco,
CARMAX and Firestone are some of
the national service center chains that
rely on NAPA as their preferred parts
provider. NAPA secures these partner-
ships by offering fast delivery, complete
inventory coverage with quality parts
at competitive prices, and a national
warranty program.
Sales to “Major Accounts” continue to
grow as more and more large companies
focus on “their” business and search
elsewhere for inventory management
solutions. NAPA is actively pursuing
these customers to offer our expertise
in this area and to become their partner
of choice.
Integrated Business Solutions
We continue to focus on Integrated
Supply Business Solutions for the auto-
motive aftermarket. In an Integrated
Supply program, NAPA manages parts
that are redistributed within an entity,
rather than resold in the commercial
market. Although relatively new, it is
NAPA’s fastest-growing segment of
business. Our greatest sales opportunities
appear to be at government facilities
and other high-volume fleets, as these
types of customers have found Integrated
Supply programs beneficial. NAPA is
establishing a successful track record
with these types of customers as well.
In 2003, local and regional sales teams
will continue to evaluate fleets, munici-
palities, military facilities, and other
prospects within their trading area to
develop new and profitable Integrated
Supply Business Solutions.
Looking forward, we will continue to
seek opportunities to combine the efforts
of both major accounts and integrated
supply. Government and private industry
are looking for the cost savings and
inventory management solutions that
NAPA provides.
Retail/Do-it-Yourself Trade
The Retail segment of our business is
an important part of our growth strategy,
and — as a $36 billion market — offers
significant potential for the Automotive
Group. When walk-in, do-it-yourselfer
customers visit a NAPA AUTO PARTS
store, they will now — more than ever
— be shopping in a clean, friendly
facility that exceeds their expectations
for an auto parts store. Through new
merchandising initiatives, we are
upgrading store exteriors and interiors
to significantly enhance their customer
appeal. Combined with our compre-
hensive retail skills training for store
management and employees, and
competitive pricing, we are creating
an inviting and satisfying shopping
environment for today’s consumer.
As the NAPA brand is recognized by
95% of consumers, brand recognition
is a powerful asset to our retail business.
In 2003, we will continue to advertise
on both a national and local level to
reinforce brand awareness and NAPA as
the source for the highest quality auto-
motive parts and services – ultimately
driving existing and new customers into
NAPA AUTO PARTS stores. While
employinga variety of high-visibility
media, we will primarily reach the
consumer via national television, radio
and print advertising.
We will continue to build loyalty with
our core customer base — both retail
and wholesale — through our on-going
NASCAR partnership and continued
sponsorship of top-performer Michael
Waltrip in the number 15 NAPA car.
We are the only aftermarket group that
is the primary sponsor of a Winston
Cup team — creating a distinctive
marketing advantage.
We are now looking ahead to all that we
can accomplish in 2003 and beyond.
The Automotive Parts Group is extreme-
ly well positioned to capitalize on its
growth opportunities in the automotive
aftermarket. Our goals are defined, our
strategies are in place, and we look
forward to a year of profitable growth.
9
automotive parts group sales
NET SALES BY SEGMENT