Industry: Automotive // Manufacturing // Retail Consumer Products | Distribution Type: B2B // DTC | Time Period: 1999-2000

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Overview

Clutch Masters Industries, Inc. (henceforth CMI) opened in 1976 as a clutch rebuilder but became an industry leader with a mission to manufacture high-performance automotive clutches and flywheels. In the mid to late 90s, import drag racing and import motorsports culture sprouted up in California and quickly spread throughout the country. Economy cars like Honda Civics and Acura Integras became the hot rods of the day, and the aftermarket products for these sport compact cars grew into a multi-billion dollar industry. Around the same time, to get kids off the streets and into safer environments to test their vehicle’s performance, local drag strips opened for test and tune nights.

These events quickly evolved into sanctioned drag races, and professional import drag racing became a global phenomenon with CMI-sponsored superstar Ed Bergenholtz leading the way with the fastest front-wheel-drive car in the world, a fully built Honda CRX hatchback running 9sec 1/4 mile times. The abusive nature of drag racing created a need for robust replacement parts that could cope with the constant torture of hard launches. Clutches, like those offered by CMI, become the go-to accessory for racers who want reliable power delivery without failure. CMI’s primary competitor in the space was a company called ACT. While CMI clutches were very reliable and featured an OEM pedal feel, ACT clutches developed a reputation for being significantly stronger due to the high level of pedal pressure required to engage the clutch.

How I Got Involved

I was in my first year of college and was a self-proclaimed car guy. I purchased a 1988 Honda Civic at an auction for $1400 and on the way home I found that the car needed quite a bit of work – specifically a new radiator and a clutch. I got the car fixed and started driving it but had a desire to fix it up and make it my own. One day at a traffic light, I realized that I needed to get over to the right lane to avoid missing an upcoming turn. When the light turned green, I dropped the clutch and was blown away by how quickly the little econobox accelerated. I instantly became obsessed with that feeling. I began working on the car and visiting the local drag strip on test and tune nights. Word went around that a company from California (CMI) was hosting a race event at the local track. I attended that event and had the opportunity to meet Ed, the fastest import racer on Earth. 

The event was rained out, but I expressed my interest in being involved in future local events. Chris, the Sales Director from CMI, was relocating from California to North Carolina and opening a shop to build cars and sell parts. The shop became a hangout spot, and one day Chris expressed frustration about competition from ACT and the public perception of CMI clutches lacking durability. Having personally witnessed these conversations in social circles and online message boards, I chimed in with a suggestion that launched my career in Business Marketing.

Observations

CMI experienced a growing public perception that their clutch kits lacked durability compared to ACT. Message board chatter about clutch failures by overly abusive users spread, exacerbating the problem. Despite having kits installed in the fastest vehicles in the industry, CMI began to lose market share to ACT and sales peaked for the year at around $3MM.

Objectives

Challenges

Regardless of the advertising, it would take time and good PR to chip away at public perception.

Results

The campaign started running in the US, Canada, and in some English-language markets overseas. In the months following the launch of our Ad campaigns, the marketing department doubled down on sponsorships of high-profile racers to hammer home that CMI was the definitive industry leader in performance, quality, and ease of use. At the same time, sales used bench-testing graphics in reseller data sheets to help secure large stocking orders. With the massive growth in import aftermarket products, a solid ad campaign, and a strong distribution strategy, CMI experienced a 23% surge in sales. Today CMI remains one of the top 5 performance clutch manufacturers in the US and offers a diverse product lineup for a multitude of applications.

Clutchmasters.com | Author: Rolando Petit