Record earnings of $131 million in 1996 on revenues of $1.49 billion.
Key ingredients :
An unwavering commitment to high-quality, premium-priced products for a large but clearly defined marketplace;
An unusual credit system that gives its customers access to those products;
A well-oiled delivery system, employing an army of franchise dealers, that takes the product right to the customer's door.
Snap on Tools Brand name Product Service Automotive tools
FACTS AND FIGURE
Snap-on has 5,700 franchise dealers and sales representatives
retail stores stocked with more than $100,000 worth of inventory for 335,000 automobile dealerships, service stations and independent garages around the United States and abroad.
Another 325 vans are driven by Snap on technical representatives, who back up the dealers and their increasingly complex product line with training and expertise.
Each franchise dealer owns his own truck, combs his territory and vis -its his 200 to 300 customers every week, on a rotation as regular as clockwork.
Snap on Tools
Snap on has been consistent and has catered the auto mechanics into the 21 st century.
Mr Silverman said “ You don’t sell diagnostic systems and software the same way you sell tools”
Customers generally do not go for the look of the tool but concentrate more on it’s effectiveness
So it’s not about the feel of the tool but more of the functionality.
Snap on’s sales till now has told us the success regarding the sales & how successful the business model has been.
One of the main reason for the success of snap on today is because they truly respect there customers, auto mechanics
They also consider there franchised dealers as partners. Talking about profit , the business is extended which in turns benefit the company. This shows us the strength of the business model.
Non Traditional Marketer
As a financer loans are offered to there customers, auto mechanics where they can buy tools like wrenches, sockets etc. The interest charged are comparetively cheaper.
The most important thing that takes place in that relationship is the credit," said Branko M. Beronja, Snap-on's senior vice president for diagnostics. "Most of the customers we do business with cannot afford to pay cash for what they buy. The credit and convenience we provide, often with no credit check, creates the relationship with the dealer.
There are a lot of shops that would not be in business today were it not for a Snap-on dealer who extended them the credit to buy their tools.
A single Snap-on van, with an average of 160 square feet of cargo space, typically produces $350,000 to $400,000 in annual revenue for its dealer. Mr. Van Mater, one of the company's most successful dealers, had gross sales in excess of $600,000 in 1996. He said he carries 2,000 of the company's more than 14,000 products at any one time, with prices ranging from 75 cents for a spark plug gapper to $40,000 for a computerized diagnostic system. Snap-on's trademark red tool cabinets, all remarkably durable and some running the length of a garage wall, can sell for $10,000 or more
Snap-on stayed tightly focused on its core customer base, avoiding forays into even related markets like construction or home improvement.
Snap-on’s marketing has always steered away from huge advertising and promotional expenditures, relying instead on direct selling.
Snap-on sent out the message that its customers were professionals by producing high-quality tools.
Innovative Marketing Strategy
Snap-on has waged its own personal battle on behalf of the mechanics through marketing campaigns.
During the Depression, Snap-on extended credit to its customers to make atleast some purchases.
Snap-on dealers established a bond of trust with their customers who in turn have them a higher percentage of business.
A Snap-on dealer paid a visit to the mechanic every week just to check on their requirements.
Snap-on had diversified business. They were also into selling diagnostic equipments
Customer Based Brand Equity Pyramid for Snap on Tools Resonance Judgements Feelings Performance Imagery Salience (Marketing campaigns in community for mechanics) (Self respect and social approval) (Quality&Super-iority) (Dependable Mechanic) (Product Variety&Depth) (Durability&Reliability)
Selling The Snap On Way
“ Snap-on has excellent tools, but they also have more presence than anyone else," said Tom, a veteran mechanic”
Relationship (Convenience) Culture ( Sophisticated american culture) Physique (Packaging) Personality (Competence) Reflection (Auto technician) Self Image (I am dependable , trust worthy) Brand identity prism (Snap on tools)
Taparia Tools Pvt. Ltd.
About the Company
Taparia Tools Ltd – established- 1965
35 years in the hand tool industry- domestic & International markets
Driving Force- Mr. H.N Taparia- MD & Present Chairman
1965: Incorporated by “House of Taparia”
Technical Expertise- Reputed Swedish Manufacturer
1966: Became a limited company- Went public
1969: New Industrial estate promoted by the Maharashtra Govt.
1974: Achieved international standards for quality- Best Exporter awards
1980: Expanded due to export demands
Penetrated overseas markets
1985-91: innovative tools & designs introduced
1995: captured different segments across the world
2000: achieved planned capacity utilization
Taparia Tools Pvt. Ltd. BRAND IDENTITY BRAND AS PRODUCT BRAND AS ORGANISATION BRAND AS PERSON BRAND AS SYMBOL
Handy, fast in work
Different tools for many uses
Simple but yet flexible.
Customer Based Brand Equity Pyramid for Taparia Resonance Judgements Feelings Performance Imagery Salience
Product variety & depth
Tool manufactured by the following process:
Very low wear and tear.
Comfortable to work with.
Imagery, Feelings Resonance
Feels more confident while working
Getting the customers actively involved in the design process of particular new tools
Taparia should send its marketing executives to each and every garage and automotive on a weekly basis to demonstrate its latest tools
Taparia should play the role of a financier.
Taparia should encourage its dealers & consider them as there partners.
Taparia should have diversified businesses.
Characteristics of brand elements
Memorability- taparia tools go for may be with some jingle or may be with some picture or logo of tools which can help consumers to recognise and recall easily the brand
Meaningfulness-taparia tools should also design or have a logo which is meaning full and relate to the product category.
Likeability-taparia tools also through there marketing programs should try and develop likeability in consumers so that consumer don’t evaluate much information while making the choice
Some brand elements
Taparia tools should also have a brand character may be a mechanic holding the tools of taparia tools . Which will grab attention and also create awareness
Taparia tools should also have a slogan which convey descriptive or persuasive information “DOCTOR FOR THE CARS”.
Taparia tools should also go with a good packaging which can increase convineance and facilitate storage ..