Globalization

Market pressures have pushed many OE's to move to more vertical (brand exclusive) production of components.  Just-auto.com today published a nice summary of this trend with a perspective from both sides of the Atlantic.  The article is part of the larger Global Trucks Report sold by supplier business.

Ken Cummings Retires

Many of us have had the unique pleasure of working with Ken Cummings at Newport Communications over the years.  And most everyone who's met him is able to call him a friend. Last month Ken announced that he'd be stepping away from his day-to-day duties.  

When I talked with Ken at his home shortly after the announcement, he told me how overwhelmed he's been with the calls and emails he received from friends and colleagues.  He shouldn't be.  If Ken's been as much assistance to others as he has been to me over the last six years,  his phone may keep ringing through the Fall with those well-wishers

On behalf of everyone you've helped in the industry, thanks Ken.

Green Technologies with Tony Picarello

Tony Picarello joined Westport Innovations, Inc. as the Vice President of Sales and Marketing in January of this year.   Prior to this position, he was the Executive Director of Marketing for Volvo Trucks North America. Westport is developing alternative energy engine solutions for the transportation industry.  He joined me by phone for a discussion on the industry and his marketing goals at Westport.

YM: You started in automotive marketing – can you give me a brief background on the jobs you held before you got into the trucking industry?

TP: I started out working for Ford for over 18 years. At Ford I was calling on dealerships working for the Parts and Service Division responsible for part sales and dealership service operation improvements; at Ford Division I was responsible for vehicle sales, customer satisfaction and dealer profitability. While working at Ford, I got immersed in the world of retail, learning what was important to dealers and what they needed to move the iron across the curb. That was our goal, that and customer satisfaction.

Then I moved to Lincoln Mercury where I managed the sales force and was the regional advertising manager among many other assignments. The success I had in these positions grew from the solid foundation of what I learned from calling on premier automotive dealerships.

After that I moved to traditional brand marketing – price, product, packaging and planning, all of which, as you might imagine, very relevant to the heavy truck market.

YM: What was different about the marketing challenges when you moved from automotive to trucking?

TP: The key difference is that you are selling to a business, not to an individual consumer. You need a strong return on your value proposition, but still the emotional piece needs to connect to people as well. Fleet Managers want to feel comfortable and confident in doing business with you and the company you represent.

That piece of it correlates to the alternative energy field as well. We are attracting forward thinking people who have a desire to not only improve the environment, but also deliver on a better business equation. They are forward thinkers, who are willing to take a first step with a company they respect and like.   

YM: Westport Innovations Inc. is a developer of alternative fuel and low-emission engine systems. When you joined the company what was your primary marketing goal? And has that changed with the continuing rise in the cost of diesel fuel?

TP: You have to of course first substantiate the technology. And we have been very successful to that end.  We continue to get more interest from people coming to us requesting demos and looking for solutions, versus us trying to find them. There are a lot of progressive thinkers out there, and they are looking for transportation solutions that make sense for their bottom line and for our environment.

YM: What is the audience you are marketing to?

TP: Regional-haul and Port drayage applications. LNG offers significant fuel savings   The Westport technology is best suited for dedicated routes ranging from 250 to 600 miles per shift. To expand the market opportunity, infrastructure is being built to support the technology and the customer demand. For example, the Port of Long Beach and the Port of  LA’s are trying to improve their air quality and market competitiveness, that is why they are interested in Westport’s ISX-G engine that runs on LNG. The opportunity at the Port is very large and it is in part due to this opportunity that Kenworth Truck Company has decided to partner with us to create an environmental and viable business solution for these target customers.

We see expansion growing from southern California north and east; the whole I-5 corridor is important because of the high usage traffic lane. We are also seeing interest in states like Texas and Oregon.

Other applications that this technology makes sense for are waste-hauling, transfer trucks, along with many other vocational applications.

YM: Talk about your primary audiences and the greatest challenge you face in discussing alternative fuel engines with them.

TP: The initial cost of the system is higher than a traditional diesel truck, so we have to talk about the life cycle cost, fuel cost savings and the positive effects on the environment.  The return on investment is very appealing. Many states and the federal government help with this point through tax breaks for environmental sound solutions.   Product demos  have been a great tool for customers to experience and see all the positive aspects of the Westport solutions.

We are very fortunate to be partnered with Kenworth, as well as the good fortune to base our HPDI (High Pressure Direct Injection) system on the Cummins ISX engine..

YM: What upcoming marketing initiatives are you working on that you can tell me about?

TP: One of our key priorities is to get the technology out on the road and continue to develop customer testimonials. You will also see us at targeted trade shows so people can see the technology first hand. We are also having open houses regionally with Kenworth to make sure the technology is accessible.

YM: What will the keys to your success be for you through the rest of 2008 and looking into 2009?

TP: The priority is to have a successful, integrated product launch with Kenworth and to ensure that the dealers are equipped and ready to provide customer service. We are right on schedule on that front.  Our customers are going to be the biggest advocates of this technology. We will continue to participate in key tradeshows and putting information online to educate more people about this cleaner and viable solution for heavy duty trucks.

YM: Which customers are you working with currently?

TP: There are lots of customers we are working with, we have already announced a project with Wal-Mart (we are targeting four units for them).  Plus many regional and port drayage fleets such as  HayDay Farms, Border Valley, TTSI,  Southern County Express, Clean Air Logix and many other municipalities.   

YM: What is the biggest challenge ahead for you and Westport?

TP: The biggest challenge, introducing new technology into a traditional industry.   Change isn’t easy, that’s our biggest challenge. Many of our progressive customers see that providing energy security for our country is an important element, over 97% of the natural gas consumed in the U.S. is North America sourced[ They also understand that this product will provide better air quality by cutting greenhouse gas and NOx emissions compared to ’07 U.S. emission vehicle. Finally, the fleet’s overall operations can run more cost effectively with the significant fuel savings advantage versus a diesel equivalent truck

You can learn more about Westport Innovations at http://lngtrucks.westport.com/.

You can see some of the work Jennings has done in the trucking industry at www.jenningsco.com.

Introduction

This is the yard mule, a series of conversations with some of the individuals making the marketing and advertising decisions in the trucking industry.

I'm Dewey Mooring and I serve as the Director of Account Leadership at Jennings.  We're an advertising agency in Chapel Hill, NC.  Since 2002 we've worked with Volvo Trucks to market their class 8 vehicles to long-haul, regional-haul and vocational customers.

I hope you'll enjoy these entries and will gain some insights from the marketing and advertising pros that we talk to.

Feel free to post comments or email me at dmooring@jenningsco.com.  I welcome your thoughts as well as suggestions on future interviews.