SSGM October 2010 Monaco Group Supplement

Congratulations to the MONACO Group celebrating 50 successful years in the Canadian Automotive Aftermarket.

From your friends at Federal-Mogul Canada Ltd.

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October 2010  www.ssgm.ca

The man is not very tall. He is discreet, almost shy. He doesn’t stand out in a group. He won’t get up on a stage and leaves others to tell his success story. In spite of his low profile, he took some time to talk to us about his life, his story and his business.

Very often, we discover what is truly important about a man in the privacy of an interview. We discover values, loyalty to one’s roots and discipline.

Ernesto Monaco was in his twenties when he came to Montreal from Italy, looking for new opportunities in the post-war years in Canada. In the first years after he arrived, he made a point to learn French and English, and to become familiar with the way of life in his community. Shortly after, he opened his own garage and later purchased a parts supplier and started Jarry

Mister Monaco Auto Parts.

In the early years of his entry into Canada’s competitive aftermarket, Ernesto followed a formula of keeping a low-profile while building profitable, long-term relationships with other local parts suppliers and installers. For two decades, the business steadily grew.

Ernesto opened a second store in 1978 that showcased many modern merchandising practises for the aftermarket. He was soon joined by his son Dominic.

THE SPARK

In the 1980s, Ernesto noticed a increasing need for import car parts, especially in big markets like Montreal. In 1983, he flew to Germany for Automechanika in order to meet and develop contacts with manufacturers

By René Primeau

of import parts. Meetings with Italian and Japanese suppliers soon produced an agreement to import rotor and brake parts on an exclusive base for Canada.

This was the first step in creating his own branded rotor product, Eurorotor.

In 1986, Ernesto Monaco founded Entrepôt de Montréal allowing him to become a major warehouse distributor for the jobbers of Greater Montreal. At first he was a rotor and brake specialist supplier, but soon Ernesto widened his range of products. Suppliers trusted him and shortly, national brands like Walker, Monroe, Fram, TRW and others became official lines of Entrepôt de Montréal. He made further inroads in the market by becoming the best continued on page 4

The Monaco Group marketed its own product lines over the years while still offering national brands to both of its banners, ASX and TechStop

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continued from page 3 second-source supplier for most affiliate jobbers in the marketplace.

During the 1980s and 1990s, the automotive aftermarket was less segmented than previously. In Montreal, some players like Imperial Automotive, Mendelssohn and Century disappeared while Kingsway and IPA were boughtoff or merged. At the same time, the national networks like NAPA, UniSelect and Carquest have grown by becoming totally dedicated to their own stores and developing their own private brand. The vacuum created by this approach allowed Entrepot de Montreal and the Monaco Group to grow rapidly as an independent openend warehouse.

The growth impact

In 1987, when Dominic Monaco joined his father on the managing team of the Monaco Group, he built a solid management team to keep up with the growth of the company. In only 13 years, the company grew from a modest 18,000 square foot warehouse

to where the Entrepot de Montreal operation is housed in a modern facility of 160,000 square feet. The product lines are numerous and Entrepot de Montreal, once perceived as a secondsource supplier, has now grown to the status of a full-line warehouse, offering a complete line of products and services. It now has a top-notch sales force, advanced marketing tools and computer systems, and dedicated and enthusiastic administrative personnel to meet the challenges of the aftermarket. It also has a network of 80 affiliate members in Quebec and a warehouse in Ontario.

Projects and peoples

“The key to success,” says Ernesto Monaco, “is directly related to the involvement of our employees. We can guide, motivate and lead them; but if there is no commitment from them, we will not achieve our goals. From my part, I am proud to say that so far, our employees have met our expectations.”

“We have targeted two big urban markets in Quebec which are excellent opportunities for us to grow substantially. Our corporation has the product

lines, the logistics, the administrative structure to open a new warehouse and a new super store in an urban market.

But we have not made a schedule because we haven’t found the right people to make it happen. Like it has been in the past, human resources allow us to make it a success.”

No plans for retirement

Today, half a century later, the Monaco Group has 375 employees, is active in three Canadian cities serving eight super stores, 80 affiliate jobbers, plus 1,000 customers and thousands of repair shops.

Ernesto Monaco is still the same low-profile man who came to Canada 60 years ago. He confirms that peoples coming from other countries, by their hard work, their dedication and vision in order to create opportunities and improve and contribute to our industry.

One man cannot build an organization of this size without attracting strong and skillful human resources, and the torch is now passed to his son Dominic. Ernesto Monaco is the man who made the difference. y

You’ve only just begun.

50 once seemed miles away.

Congratulations to Monaco Group in your remarkable success.

Blue Streak is proud to play a part in this significant milestone.

Keep the pedal to the metal.

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October 2010 www.ssgm.ca

A landmark for the Monaco Group SSGM and L’automobile magazines have witnessed growth of the Monaco Group since 1960. SSGM has been published since 1955 and L’automobile since 1939, and both magazines saw the aftermarket industry grow and the Monaco Group taking a prominent place among Quebec’s warehouse distributors.

Ernesto Monaco came from Italy in the early fifties and started building a small empire he can truly be proud of.

But most of all, the whole industry recognizes the accomplishment of the man.

SSGM and L’automobile take the opportunity to congratulate Ernesto Monaco and the exceptional team that leads the Monaco Group.

A group of individuals with strong leadership and undeniable expertise have made the company grow over the years, and it will continue to expand with his son Dominic Monaco at the helm.

A reporter’s story I was waiting at the airport before taking off for Las Vegas to attend the SEMA show about 15 years ago, and I noticed before boarding that I would be sitting next to Ernesto Monaco. Imagine, four hours next to one of the icons of the industry.

I had this odd feeling I would be close to a modern replica of CharlesÉmile Préfontaine, founder of UAP. I was already taking notes and getting ready for a relaxed interview with a

man who is usually quite discrete with the media.

The interview never materialized.

Moments after take-off, the man was already sound asleep and woke up as we were about to land in Sin City. ­ Ernesto Monaco, unaware of my intentions, smiled at me as we touched the tarmac. He told me that the best way he could use the time when flying was to relax and take a nap.

Michel Poirier-Defoy, L’automobile

SSGM and L’automobile want to take the opportunity to congratulate the Monaco Group for 50 years of ongoing success. Our publisher Marc Gadbois from Business Information Group, Michel Poirier-Defoy, editor and René Primeau, account manager for L’automobile applaud the Monaco Group for its accomplishment and its reputation in the aftermarket industry.

To the MONACO GROUP for achieving 50 years of growth and success.

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The banner challenge

By René Primeau After decades of building a reputation as a warehouse distributor providing efficient, customer-driven service, the Monaco Group is now at a turning point: provide its 80-store jobber network with an efficient banner program to help increase installer loyalty and gain market share against competitors.

“In the Monaco Group, we recognize the importance of offering our jobber network the marketing tools they need to hit the market place with a competitive edge,” says Mr. Daniel Boyer, sales and marketing manager with the Monaco Group. “The automotive aftermarket is constantly

challenging the major distributors to improve their offerings in order to gain market shares. The banners are an answer to that challenge: it increases the loyalty of the buyer coupled with an increased visibility of his business.

However, for us, everything starts with proper supply, unequalled professional service and consumer satisfaction.”

Boyer adds the success of any banner program comes from how it enhances the communications between the front-line jobber staff and the installer. That communications has to go beyond selling the auto part. It needs to build on the professionalism of the jobber staff and helping the jobber build loyalty with the installers.

“The most important link in the chain of success of the banner program is the jobber,” continues Daniel Boyer. continued on page 8

Besides enjoying golf and holidays in the sun, Ernesto and Dominic Monaco like to go fishing occasionally. And you can be sure the global strategy on the company must be the topic as they wait for the fish to bite.

At Tenneco, we have appreciated the support of the MONACO Group for many years.

Thank you for the thrust you have put in our company and our Best Wishes for your 50th Anniversary

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October 2010 www.ssgm.ca

Y ou have been excellent business partners during so many years.

C ongratulations to the MONACO Group for 50 years of success.

We are proud to be part of the celebration of 50 years of business accomplishment and success.

Congratulations for your 50th Birthday

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continued from page 6 “He is the one on the front line, in contact with the installer. If the bond is solid, if he delivers what the buyer expects, he will surpass the basic function of selling auto parts. He will sell a concept, increase the relationship and loyalty, and spread the visibility of the banner in his market. After a while, the supplier and the customer become partners in business.”

“I think that the more we demonstrate our professionalism with the banners, the more our relationship with the installer and the consumer will improve. Shops are proud of their banners and it is up to us to show the added-value of the program so they can pass it on to the consumer. One of the important added values is the continuous training programs we can provide to the installer.”

The Monaco Group’s banner program includes such jobber programs as ASX and TECHSTOP, as well as programs for helping installers better promote their businesses and to deepen the business relationship with the jobbers.

ASX and TECHSTOP banner pro-

grams are available in Québec and Ontario wherever the MONACO Group have jobber stores, corporate stores or affiliates.

These banners are offered to automotive repair shops and specialty repair shops.

The general idea behind the ASX & TECHSTOP concept: The banner program benefits the automotive repair shop owner by increasing the visibility of the business enabling the shop to partner with their parts supplier and take advantage of a number of features such as: • Warranty on labor • Roadside assistance • An insurance plan • Reduced credit cards fees • Connectivity and on line ordering.

A few of the benefits are as follows: The ASX program is designed for 3/4 bay shops and contains territorial protection. The TECHSTOP program is designed for more modest shops, 1 or 2 bay operations with less visibility, no territorial exclusivity.

There are currently 75 shops that are part of the program, 15 of these

shops are TECHSTOP. Twenty automotive repair shops are in Ontario and 55 are in Québec.

Mr. Michel Lepage, banner manager, comments: “At the Monaco group, our ASX and TECHSTOP banners are rapidly growing. The programs are still young but they are taking more and more space in the automotive aftermarket.

“In our case, we have acknowledged the needs of the marketplace and have adapted to the expectations of the installer. Since last year, we have appointed no less than 15 new ASX and TECHSTOP members as part of the Monaco Group family due to the efforts and commitment of the jobbers who endorse the program.

“The network can now count on more than 75 loyal installers properly advertising our banner program. We are presently setting up a Web site www.groupe-monaco.ca to further assist our members.” y

Congratulations to MonaCo group on 50 years of suCCessful business

Forming the

Future

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October 2010 www.ssgm.ca 10-09-27 11:14

Monaco Group: A company on the move

After more than a quarter of a century successfully managing his business, Ernesto Monaco was proud to welcome his son Dominic to the organization who has since become president of the company. We have asked him what were the major reasons for the success and the growth of the Monaco Group?

“In order to ensure the growth of the Group, it was of prime importance to develop a program which would allow us to become the number one supplier for our targeted customers.

One of the reasons for our growth has

been the level of inventory we carry even with the proliferation of application SKUS. “We have adjusted those inventories for our affiliate prospects and customers to make sure they were getting the same advantages as the major players in the market. This is why, like others, we made arrangements to join an American group in the early part of 1998.”

Dominic Monaco, president

The mission

“Once the tools and programs were

in place, which were endorsed by the senior management and we could count the commitment from our personnel, we were ready to launch our mission statement: “Become the best supplier of automotive and light truck replacement parts in Quebec and Ontario.

“We must be alert to our customer base and make the necessary changes as time goes. The automotive aftermarket is in constant evolution and we are ready to react and initiate the improvements that our market needs.”

Dominic Monaco, president

Corporate super-stores: a key to gain urban market share

After establishing a good reputation with Jarry Auto Parts, Ernesto saw the opportunity of opening a second store in 1978. The new branch is one of the first to use new marketing practices that were being developed in the 1980s to reach out more effectively to the aftermarket and to grow the business further.

In the early 1990s, a new satellite store was established on the intersection of Pie IX and Jarry Street in Montreal. In 1997, the satellite store, continued on page 10 www.ssgm.ca October 2010

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continued from page 9

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Hymus Auto Part, is set up to make inroads in the West Island market.

In 1999, the satellite store is moved to the campus of Entrepôt de Montreal. This new super-store features a huge showroom, state-of-the-art merchandising, and expert personnel, high inventory and a more professional image. Lead by Régis Boivin, Eugène Fortin and Claude Lombardi the branch establishes itself as a major player in the Montreal North East market.

In the course of his activities, Ernesto Monaco met Marc-André-Plante, a highly respected store manager in the industry. For some years, Ernesto and Dominic wanted to establish a super-store in Laval, a city of 400,000 peoples, the third biggest urban market in Quebec. The missing link was to getting the right people for the project.

Under the supervision of MarcAndré Plante, the Monaco Group’s Laval super-store has been operating for two years in a 27,000 square foot building with $2.5 million of inventory available to customers.

Pièces d’Autos Vaudreuil has been in operation since early 2009 in the Vaudreuil areas in West End Montreal, under the guidance of Marco Sanelli.

The facility is 18,000 square feet, carrying some $1.5 million in inventory, and offers a wide showroom, training center and a new computer system for installers. y October 2010 www.ssgm.ca

Congratulations to the Monaco Group on the achievement of 50 Years of success through commitment and service to your customers!

You are a valuable part of our team!

TM Trademark of Ashland or its subsidiaries, registered in various countries.

www.ssgm.ca  October 2010

Š, 2010, Ashland Canada Corp.

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Using technology to stay ahead of the competition Like any large organization, the Monaco Group had to develop its own state of the art telecommunication systems in order to cope with the needs of its customers. Headed by Daniel Massé of the company’s communication group unveils the main frame of their operations.

All the telecommunication and computer systems are located under the same roof, in Montreal, in a secured area of the main warehouse and are referred to as the IT department for Information Technologies. Operations are grouped under an MPLS system – for MultiProtocol Label Switching – a system that links the three distribution centers, superstores and the installer shops.

The installers, superstores and distribution centers can access an electronic online parts catalogue to know what is available for each part number, file an

order and, in some cases, get a real-time update on available inventory.

The Monaco Group’s IT department handles nine call centers linked to the distribution warehouses and the corporate superstores.

“Through these call centers” says Daniel Massé, “we can handle quite a large volume of orders in a very short time. The data we collect gives us a chance to evaluate the performance of

each agent and find new ways to make our system even better. Most of the orders are still sent by telephone even as online ordering gains ground.”

The Monaco Group’s IT department offers its staff and installer customers training and on-line support.

They also provide services for developing customer networks for those who need to implement larger communication systems in their business. y

Ernesto Monaco’s business was built delivering parts on time. Ernesto Monaco stands at the main store on Jarry Street with Entrepôt de Montréal’s largest warehouse in the background.

We are proud to be associated to the MONACO Group for many years.

Thank you for your support and congratulations to the whole team on your 50th Anniversary in business.

GROUPE

M

NACO GROUP

A U T O M O T I V E

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October 2010 www.ssgm.ca

Expansion in Ontario

At the end of the 1980s, Ernesto Monaco was looking to expand his business in Ontario and establish a strong relationship with the owners of the Toronto-based independent warehouse World Automotive.

Over that next decade, that partnership with World Automotive grew and soon Monaco purchased a 50 per cent share in World Automotive, and

www.ssgm.ca October 2010

teamed up with a new associate, Alan Alber. Since then, the Monaco Group has become the sole shareholder of what is referred to as World amongst employees. The company offers an 80,000 square foot capacity facility, a strong business structure and a professional staff that lets the Monaco Group tackle the Toronto aftermarket, one of the largest and most competitive in the

country.

Looking to broaden the business, Monaco looked at another important market in Ontario, the Ottawa Valley.

The project took a while to materialize, but in 2005 land was purchased and construction of a 65,000 square foot warehouse began in order to supply Greater Ottawa and Greater Gatineau in Quebec. Monaco is proud this expansion has given his company modern facilities with plenty of growth potential.

“We are very happy with the business relationships we have developed with the installers in Ontario and our positioning in the Metropolitan Toronto and the Ottawa and Kingston areas,” said Monaco. “Our strategy is always the same: inch our way progressively into a market and never look back. We will continue to maintain high standards of service towards our installer customers and help them service their customers.” y M13

Foundation Monaco: Contributing to great causes!

by René Primeau

Last September 12, the Monaco Group held the 19th Edition of its Golf Classic under the presidency of Ernesto Monaco. It was a full day that began with breakfast at 6:00 a.m. before a shotgun start on the course at 7:30 a.m.

No less than 300 golfers took to the links at Le Versant golf course in Terrebonne nearby Montreal. Among the participants were customers and suppliers of the Monaco Group, and staff.

Without a doubt, one of the major events of the aftermarket industry in Quebec.

After breakfast, 150 carts were lined up for the golfers to reach their starting points before the official start was given. In the clubhouse, a silent auction was held and bids were put on hockey sweaters, namely those of the Flyer’s Daniel Brière, the Canuck’s Roberto Luongo and more from the Montreal Canadiens.

Under the Vegas formula, best score of the day was a 64, good enough for a PGA tournament; but that’s the way the formula favours better players. But the goal of the Group Monaco Classic

a large number of individuals involved in the aftermarket industry to spend an enjoyable day and make the best of their philanthropy. y

When we turn eighty, we hope to be golfing like Mr. Monaco.

was first and foremost to raise funds and this year’s charity commitment, a record $116,000 that was shared between Montreal Institute of Cardiology Foundation and the Montreal Thoracic Surgery Foundation.

The Monaco Group Foundation has amassed large donations every year, totalling more than $1.2 million, proof that founder Ernesto Monaco is generous and the company is a good corporate citizen.

Sporting activities like the Group Monaco Golf Classic give a chance to

In the usual order, Dominic Monaco, CEO; Daniel Massé, IT director ; Yvan Domingue, vice-president, operations and sales; Marco Sanelli, Montreal superstores director; Ernesto Monaco, founder and chairman of the board; Marc-André Plante, Laval superstore director; Régis Boivin, Jarry director; Daniel Boyer, sales and marketing director and Gilbert Roy, purchasing director.

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Mr. Monaco calls them his guardian angels. Right is Doctor André Duranceau, CHUM thoracic surgeon and Doctor Pasquale Ferraro (nephew of Mr. Monaco), CHUM Department Head and associate professor.

The Monaco Group employees getting involved The Entrepôt de Montréal employees proudly started getting involved in the Make-a-Wish Foundation in 2004. The first two years consisted of a simple fund raising amongst themselves. But the last five years have seen more activities take place.

An annual activity called Disco Bowling is held in the spring with all the families joining in.

BBQs are organized for the employees with the Monaco Group setting up food and supplies; employees take these opportunities to raise more funds and the company doubles the amount.

Over the last six years, more than $16,000 have been raised for the Make-a-Wish Foundation.

October 2010 www.ssgm.ca

1960: a year of great men!

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HAppY 50tH ANNIVERSARY tHANkS foR mANY YEARS of gREAt pARtNERSHIp. HERE’S to mANY moRE.