O'Reilly Auto Parts 2014 Annual Report Download - page 16

FORM 10-K
9
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 42 states
during 2014. We were the title sponsor of two National Association for Stock Car Racing ("NASCAR") National series events in Texas
and three National Hot Rod Association ("NHRA") races across the country.
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.
In 2014, we continued our O'Reilly O'Rewards® DIY customer loyalty program, with a total of over 12 million customers enrolled. 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 and target
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
• 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
Marketing to the Independently Owned Parts Store:
Along with the daily operation and management of the DCs 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.
We currently provide automotive products to approximately 181 jobber stores, who participate in our proprietary jobber service program
called Parts City Auto Parts program, with total annual sales of approximately $60 million. 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 trademarked logo that is owned by Ozark. In return for a commitment to purchase automotive products from Ozark, we provide
computer software for business management, competitive pricing, advertising, marketing and sales assistance to Parts City Auto Parts
affiliate stores.