O'Reilly Auto Parts 2015 Annual Report Download - page 17

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FORM 10-K
We purchase automotive products in substantial quantities from over 900 suppliers, the five largest of which accounted for approximately
22% of our total purchases in 2015. Our largest supplier in 2015 accounted for approximately 6% of our total purchases and the next
four largest suppliers each accounted for approximately 3% to 5% of our total purchases.
Marketing
Marketing to the DIY Customer:
We use an integrated marketing program, which includes radio, direct mail and newspaper distribution, in-store, online, and social media
promotions, and sports and event sponsorships, to aggressively attract DIY customers. The marketing strategy we employ is highly
effective and has led to a measurable increase in awareness of the O'Reilly Brand across our geographic footprint. We utilize a combination
of brand, product and price messaging to drive retail traffic and purchases, which frequently coincide with key sales events. We also
utilize a problem-resolution communication strategy, which encourages vehicle owners to perform regular maintenance on their vehicles,
protecting their long-term automotive investment and establishing O'Reilly as their partner for auto parts needs.
To stimulate sales among racing enthusiasts, who we believe individually spend more on automotive products than the general public,
we sponsored multiple nationally-televised races and over 1,300 grassroots, local and regional motorsports events throughout 43 states
during 2015. We were the title sponsor of two National Association for Stock Car Racing (NASCAR) National series events and one
National Hot Rod Association (NHRA) race.
During the fall and winter months, we strategically sponsor National Collegiate Athletic Association ("NCAA") basketball. Our
relationships with over 30 NCAA teams and tournaments have resulted in prominently displayed O'Reilly logos on TV-visible signs
throughout the season.
We target Spanish speaking auto parts customers through marketing efforts that include the use of Spanish language radio, print, and
outdoor advertising, as well as sponsorships of over 45 local and regional festivals and events.
As consumers increasingly turn to the Internet for information and offers, we continue to invest in digital channels to expand the O'Reilly
brand presence online and through mobile devices. Search engine optimization strategies are used to drive traffic to our website, and
popular social media platforms are used to provide excellent customer service through interaction and dialogue with our customers.
To show appreciation for our DIY customers for their continued business, we maintain our O'Reilly O'Rewards customer loyalty program.
The program provides members with the opportunity to earn points through purchases and other special events and allows members to
redeem those points toward coupons, which provide discounts on future merchandise purchases in our stores. The programs allow us to
reward our customers for their continued business, as well as enhance engagement with our customers to earn more of their business
with targeted promotions tailored to their specific needs and purchasing patterns.
Marketing to the Professional Service Provider Customer:
We have approximately 700 full-time O'Reilly sales representatives strategically located across our market areas as part of our First Call
program. Each sales representative is dedicated solely to calling upon, selling to and servicing our professional service provider customers.
Targeted marketing materials such as flyers, quick reference guides and catalogs are produced and distributed on a regular basis to
professional service providers, paint and body shops and fleet customers. Our industry-leading First Call program enables our sales
representatives, district managers, and store managers to provide excellent customer service to each of our professional service provider
accounts by providing the products and services identified below:
• broad selection of merchandise at competitive prices;
• dedicated Professional Service Specialists in our stores;
• multiple, daily deliveries from our stores;
• same-day or overnight access to an average of 146,000 SKUs through seven day store inventory replenishments;
• separate service counter and phone line in our stores dedicated exclusively to service professional service providers;
• trade credit for qualified accounts;
• First Call Online, a dedicated proprietary Internet based catalog and ordering system designed specifically to connect professional
service providers directly to our inventory system;
• Mitchell shop management systems;
• training and seminars covering topics of interest, such as technical updates, safety and general business management;
• access to a comprehensive inventory of products and equipment needed to operate and maintain their shop; and
• Certified Auto Repair Center Program, a program that provides professional service providers with business tools they can utilize
to profitably grow and market their shops.