x-treme co-op co-op 2013.pdf · • station has more participants = more co-op dollars • station...

RAB Webinar – Xtreme Co-op; Dealer Groups and Distributors November 2013

Radio Advertising Bureau www.rab.com Copyright 2013

X-Treme Co-op

Brandeis C. Hall VP, Professional Development Radio Advertising Bureau

Working with Dealer Groups and Distributors

Calculating the Co-op $$

Some $23 billion of media advertising

is financed through co-op programs.

Source: 2012 Borrell Associates

Radio gets just a fraction of it.



• On-Air

• Online

• Print

• Signage

• Events

• Promotions

Co-op funding is available for…

And more you haven’t even thought of…

If not radio, who is getting the money?

Heaviest Media Co-op Users:

Newspaper

Yellow Pages

Magazines

Other Print

Broadcast TV

Cable

Radio

And now…Digital



Why do manufacturers provide co-op?

Armstrong World Industries Co-op Usage Study: Dealers

Group 2

+ no co-op funding

x 3 years

Results: Group 1 = 3 x greater sales growth

Group 1

+ co-op funding

x 3 years

Calculating the Co-op In your Market

$30 per capita x Market Population

Two-thirds is usually spent in local media

One-third goes unused

50,000 people x $30 = $1.5 million.

$1 million is used – $500,000 wasted.*

Source: Revenue Development Systems

Calculating Co-op In your Market



Market # 1: New York, NY

Population: 15,730,000

15,730,000 people x $30 = $471,900,000

$ 314,600,000 is used in local media

$157,300,000 is UNUSED.


Market # 25: Pittsburgh, PA


1,988,200 people x $30 = $59,646,000

$39,764,000 is used in local media

$19,882,000 is UNUSED.




Market # 50: Hartford-New Britain-Middletown, CT


1,054,800 people x $30 = $31,644,430


$10,548,000 is UNUSED.


475,400 people x $30 = $14,262,000


$4,754,000 is UNUSED.

Market # 100: Boise, ID

Population: 475,400




Basically, $10 per person

in your market goes unused…

Every year.

So, let’s go get it…


Three Ways to Use Co-op Effectively

•Retail Programs

•Dealer Group Programs

•Distributor Programs

Using Co-op Effectively



Retail Programs

Work with a single retailer to use accruals from one or more vendors to advertise multiple

products/services


1. Visit the Retailer.

2. Ask what brands they carry that have co-op.

3. Use Rab.com to research brands that offer co-op.

4. Put a program together.

5. Contact Manufacturer: Get program details, script approval.

6. Run the program.

7. Bill the retailer.

8. Fill out the affidavits, get copies of the retailer’s paid invoice.

9. Send to the manufacturer.

Retail Programs


10. Make sure retailer got the reimbursement.

11. Start over.



Dealer Groups and Wholesale Distributors are a source

of untapped revenue for radio.

The BIG Co-op Money is in:

Dealer Groups and Wholesale Distributors

Why Target Dealer Groups and Distributors?

• Better use of your time

• Volume – in aggregation of money

• More campaign options

• More brand options

• Better consumer engagement

Dealer Groups and Distributors

Selling Dealer Groups

Does Market size matter?

Yes…and no.

Large markets:

• More retailers

• More dollars

= Bigger campaigns

Smaller markets:

• Per capita retailers

• Combined dollars

= Media access




Integrated Co-op Programs:

• Dealer-tagged commercials

• Micro-site & other digital options

• In-market station event options

• Relevant cause marketing affiliation

• Distributor-approved promotions

• Customized dealer newsletter

featuring upcoming opportunities

• Other options as desired.

What do we sell them?


Dealer Group Programs

Work with a single manufacturer to use accruals from multiple retailers to advertise

one or more products.




Sign up multiple retailers for a full year’s

schedule based on their joint allowances on:

• One product with high turnover (i.e motor oil, cars, etc.)

• Various products that can be spotlighted at different

times of the year.


Step 1: Pick your category

Top Dealer Group / Distributor Categories:

• Appliances

• Automobiles

• Automotive Aftermarket

• Beverages (incl. liquor)

• Boats

• Building Materials

• Consumer Package Goods

• Electronics

• Farm Equipment

• Flooring

• Franchises

• Hardware

• Heating /AC (HVAC)

• Insurance

• Lawn and Garden

• Motorcycles (ATV / Water)

• Optical

• OTC Pharmaceuticals

• Paint

• Plumbing

• Power Tools

• Real Estate




Step 2: Select A Consumer-Motivating Theme

Summer Splash Auto Racing Winterize your car


Example: Baquacil

Summer Splash Sweepstakes

Objective

• Drive traffic to local dealers

• Increase awareness of product

Idea

• In-store Consumer Sweepstakes program

(Register-to-Win free Doughboy pool / year supply of Baquacil)

• On air commercials

• POS displays

• Flyer distribution at events

• Remotes at Dealer locations




Step 3: Get an ‘Inside Man’

Find the central source of merchandise – usually the manufacturer’s rep.

The rep knows:

• Who are his biggest customers

• How much merchandise each retailer has bought

• If other market funds are available


1. Ask the retailer how the store usually makes

contact. When they need him in a hurry, how

do they get through? The store should have

some shortcut to suggest.

2. Google / Bing

3. Phone Book

Tracking Down the

Elusive Manufacturer’s Rep…


If you already have a good relationship with a retailer…



The rep may travel extensively…

Most national manufacturer representatives don’t have offices

-- they work out of their homes. Monday and Fridays are

excellent days to reach them.

Most travelling salespeople like to get home early on Fridays.

This makes it prime time to call. If you get the machine, the

rep may be there, listening and handling paperwork. Make

yours the one the rep wants to return out of curiosity.

A day or two before a holiday weekend can actually be a

good time. The rep may return to the office early because it’s

been a tough day to see the retailers.


There’s nobody who responds to a good sales pitch better than someone who sells. You have 30-seconds to register.

Use your own style.

Be comfortable.

Make sure it’s justifiable.

And sell a concept that will make money for both of you.




Have your elevator speech ready for the voicemail

Who you are: “Hello, my name is _________________”

Who you are with: “I am a broadcast marketing specialist WRAB”

What you do: “I specialize in creating successful integrated promotions and

marketing programs using Radio.”

Purpose of the call: “I am calling to arrange a time for us to meet to

share how I can increase sales for you and your retailers.”

Ask for the appointment: “Could we meet next Wednesday at 2:15?”


If your station is impressive, bring them there.

Use the show biz. Take them on a tour.

Seeing the station makes them feel comfortable with

the idea and gets them excited.

If the station isn’t the right place to meet, pick a restaurant.




In Four Easy Steps…

1. You and the rep co-sign a

letter inviting the dealers

to participate in a group

campaign. The letter

explains concept, timing

and price. You might

include a reply card.

Setting Up The Group Meeting…






2. You don’t want to go out and call

on all dealers individually. If the

territory is spread out, you may not

even want to have a meeting. With

the rep’s encouragement and help

on the phone, plus a follow-up

letter, many dealers may buy in by

signing and returning a simple

contract.




3. The rep may agree to sell the dealers the concept while making sales calls on is own. This is ideal for many sellers as the ultimate time-saver.

4. The rep may not agree to sell dealers for you, but may participate in a meeting with dealers which you organize. You and the rep take turns selling them in at the meeting.





Issue an invitation well in advance, mention refreshments.

Many meetings include raffles.

Sell with lots of enthusiasm and sizzle. If you can, bring ‘em to

the station. Otherwise, book a nice hotel.

Whoever is charged with selling the dealers individually

(you or the manufacturer’s rep) makes the pitch.

Dealers are asked to sign up at this meeting

Tips For The Group Meeting


Dealer Co-op For Sponsorships




Marketing Tools…including:

Formula 1 display car

C6 Corvette display car

Video race car simulator

BIGFOOT® monster truck

Banners

Displays

Mailers

Radio scripts

Print ads

Etc.

Dealer Co-op For Events…


In many markets, dealers are given incentives for participation.

The manufacturer wants their dealers to advertise.

They want enthusiasm and momentum.

The station and manufacturer create a gift-with-purchase deal.

Build the trip price into the package…and buy the trip at a

discount via a quantity purchase.

Using Incentives




Gift-With-Purchase

• Every dealer who buys on site, receives a trip

• Dealers like association w/station and manufacturer

• Manufacturer strengthens relationships w/ dealers

• Station has more participants = more co-op dollars

• Station trades out trip or buys at volume discount


Dealer Incentive Example:

Apportion 10% of the package cost for incentives and mark

up the package price to cover it. Make it clear on the

invoice and work it out in advance with the manufacturer’s

representative or regional distributor.

Some co-op programs will actually pay for a trip used as a

consumer prize.


Incentive Pricing:



Kwikset Locks

• 1000 keys are given away through Kwikset retailers

• Consumers draw a key and try to open a door

• The lucky key holder wins a trip

• The cost of the trip is written into the campaign

• Dealers are pleased with additional store traffic


Consumer Incentive Example:

Banner ads

Streaming

Auctions/Deals

Social

Mobile

Sponsorships

Online video

Podcasting

Directories

Contests

Internet Co-op Funding



Present Digital Co-op As Means for Expansion

Co-op should always be positioned as a means of

expanding, and not reducing an ad program.

• Banner sponsorship

• Audio commercial

• Video commercial

• Pre-rolls

• Player banner ads

• Player sponsorships

Internet Co-op Funding

Distributor Co-op Banner Ads

• Banner sponsorship

• Audio commercial

• Video commercial

• Pre-rolls

• Player banner ads

• Player sponsorships

Selling Distributors



Distributor Co-op Sponsorships


Wholesale Distributor Programs

Work with a single wholesale distributor to use accruals to advertise one or more

products from multiple vendors




Step 1: Pick your category

Top Dealer Group / Distributor Categories:

• Appliances

• Automobiles

• Automotive Aftermarket

• Beverages

• Boats

• Building Materials

• Consumer Package Goods

• Electronics

• Farm Equipment

• Flooring

• Franchises

• Hardware

• Heating /AC (HVAC)

• Insurance

• Lawn and Garden

• Motorcycles (ATV / Water)

• Optical

• OTC Pharmaceuticals

• Paint

• Plumbing

• Power Tools

• Real Estate


Step 2: Select A Consumer-Motivating Theme

Home Improvement

Sporting Events Themed Holidays




Distributor Co-op Online March Madness Pick & Win


Distributor Co-op Online

Branded w/ Heating & Air Distributor to the tune of $25,000

March Madness Pick & Win




Wholesale Distributors…

Step 3: Make Contact

• Represent multiple brands

• Have powerful sales forces

• Always have co-op funds available


Wholesale Distributors…

They buy the goods.

They own the inventory.

They own the co-op.





1. Present the wholesale distributor the

concept.

“We put together an integrated

campaign to use your co-op

effectively.”

We help you sell in and sell through.”

2. Distributor hosts manufacturer’s

representative meeting. Manufacturer

reps agree to support program.



3. Wholesale distributor’s sales

reps communicate program

details to retailers.

4. Retailers agree to buy more

product and comply with

promotion details.




Objective

• Increase awareness of product

• Drive traffic to 25 local dealers

Idea

• Microsite (www.needcountertops.com)

• (Product information, answers to questions, videos, prizes)

• On air commercials

• Social networking (Facebook & Twitter)

• SEO and SEM (Google AdWords)

• Distribution of brochures & countertop samples

• Dealer breakfast

Co-op Case Study:

Fessenden Hall, Inc.

Courtesy of…



Co-op Case Study:




Results

• Campaign’s 1st month was one

dealer’s best month since 1965

• Distributor experienced increased sales

• Overall increased brand awareness


Co-op Case Study:


Courtesy of…

Distributor Co-op For Events

Dealer listings

Current

Happenings

Special Offers

Upcoming Options

Recaps /

Successes




Target-market research – Educate yourself on

the client’s industry and market.

Preparing detailed media plans – Adhere to budget guidelines.

Making the process as effective and efficient as possible – Take the burden off of the distributor/corporation and dealer/owner for co-op marketing.

Monitor, track and report performance – Be accountable for results and keeping participants on track.

Offer alternatives to traditional media – Uncover turn-key avenues that have not been previously explored.


Create a Turnkey Program

Cancellations and Changes To Existing Co-op Programs.

It is the manufacturer’s prerogative to change the marketing or

program any time they desire.

Many manufacturers have put their programs on moratorium during

the recent economic downturn but will re-activate them as the

economy improves.

The RAB is adding programs almost daily. Your leads help.

When you find a program or change to a plan not in the directory,

send in the lead!

RAB Co-op Directory



Goal-setting is the first step to real success

Include Co-op as part of your Client Needs Analysis

Always check program terms with manufacturer

before running a co-op advertising campaign

Summary

X-Treme Co-op

Brandeis C. Hall VP, Professional Development Radio Advertising Bureau

Working with Dealer Groups and Distributors

x-treme co-op co-op 2013.pdf · • station has more participants = more co-op dollars • station...

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