CHAPTER 4 EVALUATION OF SMITHS 102
4.9 Surveys Conducted to Evaluate Smiths Aftermarket
4.9.1 Overview of the Survey with the P&A Outlets and Objectives
It was concluded during discussions with the management of Smiths Aftermarket that a sample survey could be conducted as a representation of the wider market (Appendix I).
The 14 Ford P&A outlets situated in Kwa-Zulu Natal were selected to represent a microcosm of the wider market. Appointments were made with the relevant P&A Managers and Dealer Principals and individual interviews took place. A trial was done in December 2002 and interviews took place between January and May of 2003. The survey aimed to fulfil several objectives:
• Evaluate how many P&A outlets are following the motor plant branded route.
• Understand what the P&A outlets believe to be important aspects when selecting an aftermarket air-conditioner.
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Understand what the customer believes to be important when selecting an air- conditioner.
Identify with whom the balance of power lies when selecting the air-conditioner.
Ifthe P&A outlets fit the air-conditioner themselves or outsource fitment.
Problems experienced with Smiths Aftermarket air-conditioner kits (Motorcraft).
How service to the P&A outlets can be improved.
What spares are replaced most frequently and where they are sourced from.
What sort of catalogue is used and whether or not they use the Smiths website.
Whether or not the outlet concerned participates in the Ford incentive programme and how important they consider an air-conditioner kit within the programme.
Of the 14 P&A outlets in KZN, interviews were conducted with 11 outlets as 3 elected not to participate. An additional outlet in JHB was interviewed. Motorcraft as a brand name refers here to the Smiths Aftermarket manufactured product.
4.9.2 Results of the Survey with the P&A Outlets
83% of the P&A outlets surveyed fit both Motorcraft and Crispair air-conditioners, with only 17% fitting the Motorcraft brand only. 17% of outlets would consider fitting Arcotemp units, but only if no other units are available. The choice made between Motorcraft and Crispair depends on the deal.
On graph 4.9 from the P&A outlets' perspective availability was the most important factor (average 4.83) when considering which air-conditioner to fit, particularly in summer in KZN when customers want the unit fitted 'yesterday'. This often determines which kit is fitted. This is followed by quality (average 4.75), price and aftercare (both average 4.67). Motor plant approval (average 4.58) was deemed to be an indication of quality with the brand/reputation featuring thereafter. The least important factor is the discount offered (average 3.5) as prices are dictated by Ford Motor Company to the P&A outlets with little room for manoeuvre.
Graph 4.9 Importance of Factors for P&A Outlets and Customers
Importance of Factors for P&A Outlets &
Customers 5.00 -
4.00 g' 3.00
~ 2.00 1.00 0.00
Factor
Ratings for P&A outlets are shown in blue and in purple for customers. The discount factor is only applicable to the P&A outlets.
Customers focus primarily on price, with each outlet giving this a 5 rating in terms of importance to the customer. This was closely followed by quality (average 4.3%) with one manager summing it up as customers "want the best quality at the best price"
(Kirkland A., 2003). Before quality, availability and aftercare are considered to be most important (average 4.7). Motor plant approval then followed (average 4.25) and the least important factor to customers is the brand or reputation, and they appear to have little awareness of brands.
Only two (17%) of the P&A outlets have the ability to fit air-conditioners in-house, leaving the majority (83%) sending vehicles to fitment centres. The main reason cited for this is that the amount of aftermarket air-conditioning business does not justify the cost of the air-conditioning fitment jig, which costs about Rl00 000 and the full-time employment of an air-conditioner fitment technician. The two outlets with fitment facilities also tended to serve other P&A outlets in the area. The fitment centre that the P&A outlet used was selected on criteria such as; good service, turnaround time, price, convenience and Ford approval.
The P&A outlet has a lot of power as 83% select which aftermarket air-conditioner to fit and the remainder (17%) leave the decision to the fitment centre. Customers do not decide for themselves (0%). 75% of outlets indicated that they have had no problems with the Motorcraft air-conditioners with 25% experiencing minor problems, such as faulty switches. 41.7% of respondents source spares from both Ford as Motorcraft products and from fitment centres. 33.3% source from Ford only and 8.3% source only from fitment centres. Condensers and radiators are replaced most frequently.
The most common form of receiving a catalogue is in hard copy (50% of outlets) with 16.7% having catalogues on CD. Although happy with the hard copy they receive (50%
of outlets) the majority (58.3%) would prefer to receive a CD as they feel it is easier to use and can be kept up to date more easily. All outlets have access to emails, but only 33.3% knew that Smiths Aftermarket has a website, and none of them have used it.
91.7% of the outlets participate in the Ford incentive programme and the 8.3% that do not are smaller outlets, where they feel that their turnover does not justify their participation.
Within the incentive programme 50% of the outlets rated air-conditioners as being important or very important. The average rating was 3.09, with some outlets remaining negative towards the programme itself. Over the period taken to conduct the survey (January -May 2003) it was interesting to note that there was a subtle change by the P&A outlets in their attitude toward the Motorcraft brand and the incentive programme, with more P&A outlets evaluating the programme as being important as time progressed.