Section XVI - Market Dynamics BRAND SHARE SHRINK: 1995 - 2015 "Brand shrink" is a term Lang Marketing coined in the 1990s to describe the tendency of leading aftermarket brands to diminish or "shrink" in brand share as they pass through the multiple tiers of the Traditional channel. The five top brands within each of the 75 product categories studied by Lang Marketing during 2015 (brands vary by product) combined for 81.3% Warehouse share. They captured a smaller 2015 Jobber share, 65.4%, and diminished further to only 32.1% Service Station and Garage 2015 share. From the Warehouse level to Service Stations and Garages, the five leading brands within each of the 75 products suffered a 61% average decline in total 2015 market share. $9.8 BILLION PRODUCT SALES LOSS Brand shrink between the Warehouse and Service Station/Garage levels of the light vehicle aftermarket resulted in a $9.82 billion loss in 2015 product volume, at user-price, for the five leading brands across 75 products compared to sales they would have recorded had these brands captured the same 2015 product share among Service Stations and Garages as they held at Warehouse level. This is a 85% increase in 2015 brand share loss versus 1995. HIDDEN BRAND COMPETITORS Major Manufacturers controlling large shares of Warehouse product volume are unaware of the vast sales potential they are losing to competitive brands whose tactics and marketing impact remain largely "hidden" to them. SALES LOSS FROM BRAND SHRINK BETWEEN WAREHOUSES AND SERVICE STATIONS/GARAGES Percent Dollar Product Share Product Sales Decline Loss 1995................................................................... 45.6%...............................................$5.3 2007................................................................... 54.2%...............................................$8.1 2008................................................................... 55.2%...............................................$8.1 2009................................................................... 56.3%...............................................$8.2 2010................................................................... 56.5%...............................................$8.3 2011.................................................................... 57.3%...............................................$8.5 2012................................................................... 57.9%...............................................$8.7 2013................................................................... 58.7%...............................................$9.0 2014................................................................... 59.5%...............................................$9.4 2015................................................................... 60.5%...............................................$9.8 Volume in $ Billions at User-Price © 2016 by Lang Marketing Resources, Inc. 206 www.langmarketing.comhttp://www.langmarketing.com