O'Reilly Auto Parts 2009 Annual Report Download - page 25

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Our marketing activities have resulted in a significant increase in our brand awareness across our geographic footprint. We utilize a
combination of brand and product/price messaging to drive retail traffic and purchases, which frequently coincide with key sales
events. During 2009, we continued to co-brand our advertising in the markets where nonconverted CSK stores are located. This
advertising and marketing is essential to build awareness of the O’Reilly Brand in those markets to allow for a smoother transition as
stores are rebranded. In addition to co-branding in these select markets, we have co-branded all existing CSK advertising programs
that have national exposure.
To stimulate sales to race enthusiasts, who we believe on an individual basis spend more on automotive products than the general
public, we sponsored multiple nationally televised races and over 1,500 grassroots, local, and regional motorsports events in 38 states
during 2009. We continued our partnership with NASCAR as the Official Auto Parts Store of NASCAR and in the fall of 2009 we
sponsored the Checker O’Reilly Auto Parts 500 NASCAR Sprint Cup race, at the Phoenix International Raceway.
During the fall and winter, we strategically sponsor National Collegiate Athletic Association (“NCAA”) basketball and the National
Football League (“NFL”). We have relationships with over 80 NCAA teams and tournaments resulting in the placement of the
O’Reilly logo on courts, goal stanchions, seat backs, kick plates, and scoring table signs throughout the season. O’Reilly Auto Parts
radio advertising can be heard in approximately 200 NFL games through our sponsorship of a dozen teams.
In 2009, we continued our dedicated problem/solution messaging strategy, which encourages vehicle owners to perform regular
maintenance as a way to save money and protect their automotive investment over the long term. We expanded our Hispanic
marketing efforts to capture incremental sales from this dynamic and growing consumer segment.
Marketing to the Professional Installer. We have over 450 full-time O’Reilly sales representatives strategically located across our
market areas. Each sales representative is dedicated solely to calling upon, selling to and servicing our professional installer
customers. Targeted marketing materials such as flyers, quick reference guides and catalogs are produced and distributed on a regular
basis to professional installers, 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 installer
accounts by providing the products and services bulleted below:
• broad selection of merchandise at competitive prices;
• dedicated Installer Service Specialists in our stores;
• multiple deliveries from our stores per day;
• same-day or overnight access to an average of 118,000 SKUs through five-night-a-week store inventory replenishments;
• a separate service counter and phone line in our stores dedicated exclusively to service professional installers;
• trade credit for qualified accounts;
• First Call Online, a dedicated Internet based catalog and ordering system designed to connect professional installers directly
to our inventory system;
• 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
• the Certified Auto Repair Center Program, a program that provides professional installers with business tools they can utilize
to profitably grow and market their shops.
Marketing to the Independently Owned Parts Store. Along with the daily operation and management of the distribution centers and the
distribution of automotive products to our stores, Ozark Automotive Distributors, Inc., our wholly owned subsidiary (“Ozark”), also
sells automotive products directly to independently owned parts stores (“jobber stores”) throughout our trade areas. These jobber
stores are generally located in areas not directly serviced by an O'Reilly store. Ozark administers a dedicated and distinct marketing
program specifically targeted to jobber stores.
Approximately 183 jobber stores currently purchase automotive products from Ozark and participate in our Parts City Auto Parts
program, our proprietary jobber service program. As a participant in these programs, a jobber store, which meets certain financial and
operational standards, is permitted to indicate its Parts City Auto Parts membership through the display of the respective logo that is
owned by Ozark. We provide advertising, promotional assistance, marketing and sales support to Parts City Auto Parts stores
purchasing automotive products from Ozark. In return for a commitment to purchase automotive products from Ozark, we offer
assistance to Parts City Auto Parts jobber stores by making available computer software for business management and inventory
control.
Competition
We compete in both the DIY and professional installer portions of the automotive aftermarket. We compete primarily with the stores
bulleted below: