x-treme co-op: winner takes all! - rab.com€treme co ‐op: winner takes all! rab webinar, june,...

X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011

Radio Advertising Bureauwww.rab.com

Copyright 2011Page1

X-Treme Co-op: Winner Takes All!

ON-AIR ONLINE ON-SITE ON DEMAND

Brandeis C. Hall · VP/Training · [email protected]

• 25+ years in broadcasting

• Personality, promotions, co-op, alternative revenue development, sales, marketing, production

• Radio 74, France

• WRG FM Geneva Switzerland

About Your Presenter…About Your Presenter…

Brandeis C. HallVP/TrainingRadio Advertising [email protected]

• WRG-FM, Geneva, Switzerland

• Swiss Broadcasting Corporation

• WBAP, Dallas/Ft. Worth

• KAAM, Dallas/Ft. Worth

• RAB 8 years

Calculating The CoCalculating The Co--opop

Some $50 billion of media advertising is financed through co-op programs.



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• On-Air

Online

• Signage

Events

Co-op is available for…

What Do We Sell Them?What Do We Sell Them?

• Online

• Print

• Events

• Promotions

And more things you haven’t even thought of…

Who Is Getting The Money?Who Is Getting The Money?

Heaviest Media Co-op Users:

• Newspaper

• Yellow Pages

• Magazines

• Other Print

• Broadcast TV

• Cable

• Radio

• And now…Internet

Why Do Manufacturers Provide CoWhy Do Manufacturers Provide Co--op?op?

Armstrong World Industries Co-op Usage Study: Dealers

Group 2 + no co-op funding

Group 1 + co-op funding no co op funding

x 3 years

Results: Group 1 = 3 x greater sales growth

co op fundingx 3 years



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Calculating the CoCalculating the Co‐‐op In your Marketop 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.*

*Revenue Development Systems

Market # 1: New York, NY

Population: 15,730,000

Calculating the CoCalculating the Co--op In your Marketop In your Market

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.



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


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


$10,548,000 is UNUSED.


Market # 100: Boise, ID

Population: 475,400

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


$4,754,000 is UNUSED.


Basically, $10 per person

in your market goes unused…

Every year.

So, let’s go get it…



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RAB CoRAB Co‐‐op Directoryop Directory

• Plan Examples…





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Internet CoInternet Co--op Availabilityop Availability

RAB.com Internet Co-op Options:

1. Yes.

2. No.

3. With Prior Approval.pp

4. On a Case-by-Case Basis.

Companies are highly interested in integrated marketing

campaigns.



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• Banner ads

• Streaming

• Auctions/Deals

• Social

• Mobile

Internet CoInternet Co--op Availabilityop Availability

• Sponsorships

• Online video

• Podcasting

• Directories

• Contests





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Three Ways to Use CoThree Ways to Use Co--op Effectivelyop Effectively

• Retail Programs

•Dealer Group Programsp g

•Distributor Programs



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Retail Programs

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

products/servicesproducts/services

1. Visit the Retailer.2. Ask what brands they carry have co‐op.3. Go on Rab.com and research brands that offer co‐op.

Three Ways to Use CoThree Ways to Use Co‐‐op Effectivelyop Effectively

Retail Programs

p4. Put a program together.5. Contact Manufacturer: Get co‐op program details, approval on the script.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.10. Make sure retailer got the reimbursement.11. Start over.

The BIG Co-op Money is in:

Dealer Groups and Wholesale Distributors

Why TargetWhy Target Dealer Groups and Distributors?Dealer Groups and Distributors?

• Better use of your time• Volume – in aggregation of money

Dealer Groups and Wholesale Distributors are a source of untapped revenue for Radio

Volume in aggregation of money• More campaign options• More brand options• Better consumer engagement




Selling Dealer GroupsSelling 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:

What Do We Sell Them?What Do We Sell Them?

• Dealer-tagged commercials

Mi it & th di it l ti

• Distributor-approved promotions

C t i d d l l tt• Micro-site & other digital options

• In-market station event options

• Relevant cause marketing affiliation

• Customized dealer newsletter

featuring upcoming opportunities

• Other options as desired.

Three Ways To Use CoThree Ways To Use Co--op Effectivelyop Effectively

Dealer Group Programs

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

one or more productsone or more products.





The key to these plans is to 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)

• Different products that can be spotlighted at different times of the year.

Step 1: Pick your category

Top Dealer Group / Distributor Categories:

• Appliances• Automobiles

• Hardware• Heating /AC (HVAC)


• Automotive Aftermarket• Beverages (incl. liquor)• Boats• Building Materials• Consumer Package Goods• Electronics• Farm Equipment• Flooring• Franchises

• Insurance• Lawn and Garden• Motorcycles (ATV / Water)• Optical• OTC Pharmaceuticals• Paint• Plumbing• Power Tools• Real Estate

Step 2: Select A Consumer-Motivating Theme


Summer SplashAuto Racing Winterize your car




Example: Example: BaquacilBaquacil

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:p

• Who are his biggest customers

• How much merchandise each retailer has bought

• If other market funds are available

If you already have a good relationship with a retailer…

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

Tracking Down the Elusive Manufacturer’s Rep…Tracking Down the Elusive Manufacturer’s Rep…

suggest.

2. Google / Bing

3. Phone Book




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 i ti t ll If t th hi th b th li t i d


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

Selling The Manufacturer’s Rep…Selling The Manufacturer’s Rep…

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

Selling The Manufacturer’s Rep…Selling The Manufacturer’s Rep…

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

Set Up The Group Meeting…Set Up The Group Meeting…

campaign. The letter explains concept, timing and price. You might include a reply card.

RAB.com CoRAB.com Co‐‐op Dealer Group Letterop Dealer Group Letter





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

Set Up The Group Meeting…Set Up The Group Meeting…

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.

Set Up The Group MeetingSet Up The Group Meeting

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.

Tips For The Group MeetingTips For The Group Meeting

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




Present Using Co-op As Means for Expansion

Co-op should always be positioned as a means of

expanding, and not reducing an ad program.

Working The Group MeetingWorking The Group Meeting

• Banner sponsorship

• Audio commercial

• Video commercial

• Pre-rolls

• Player banner ads

• Player sponsorships

Dealer CoDealer Co--op For Sponsorshipsop For Sponsorships

• Marketing Tools (including)

• Formula 1 display car

• C6 Corvette display car

• Video race car simulator

• BIGFOOT® monster truck

B

Dealer CoDealer Co--op For Events…op For Events…

• Banners

• Displays

• Mailers

• Radio scripts

• Print ads

• Etc.




Using IncentivesUsing Incentives

Use Incentives:

In many markets, dealers are given incentives for participation.

The manufacturer wants their dealers to advertise. They want enthusiasm and momentumThey 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.

Dealer Incentive Example:

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


Incentive Pricing:

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 t ti i l di t ib trepresentative or regional distributor.

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




Consumer Incentive Example:

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

Three Ways To Use CoThree Ways To Use Co--op Effectivelyop Effectively

Wholesale Distributor Programs

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

d t f lti l dproducts from multiple vendors

Step 1: Pick your category

Top Dealer Group / Distributor Categories:

• Appliances• Automobiles

• Hardware• Heating /AC (HVAC)

Selling DistributorsSelling Distributors

• Automotive Aftermarket• Beverages (incl. liquor)• Boats• Building Materials• Consumer Package Goods• Electronics• Farm Equipment• Flooring• Franchises

• Insurance• Lawn and Garden• Motorcycles (ATV / Water)• Optical• OTC Pharmaceuticals• Paint• Plumbing• Power Tools• Real Estate




Step 2: Select A Consumer-Motivating Theme

Selling DistributorsSelling Distributors

Home Improvement Sporting Events Themed Holidays

Distributor CoDistributor Co--op Onlineop Online

March Madness Pick & WinMarch Madness Pick & Win

Distributor CoDistributor Co--op Onlineop Online

MarchMarch Madness Pick & Win

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




Step 3: Make Contact

Selling Wholesale DistributorsSelling Wholesale Distributors

• Represent multiple brands

Wholesale Distributors

• Have powerful sales forces

• Always have co-op funds available

Selling Wholesale DistributorsSelling Wholesale Distributors

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.”

Selling The Wholesale DistributorSelling The Wholesale Distributor

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.

Selling The Wholesale DistributorSelling The Wholesale Distributor

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)

CoCo--op Case Study: Fessenden Hall, Incop Case Study: Fessenden Hall, Inc

(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

Case Study: Fessenden Hall, IncCase Study: Fessenden Hall, Inc




Results• Campaign’s 1st month was one dealer’s

best month since 1965

Case Study: Fessenden Hall, IncCase Study: Fessenden Hall, Inc

• Distributor experienced increased sales

Distributor CoDistributor Co--op Banner Adsop Banner Ads

• Banner sponsorship

• Audio commercial

• Video commercial

• Pre-rolls

• Player banner ads

• Player sponsorships

Distributor CoDistributor Co--op Sponsorshipsop Sponsorships




Distributor CoDistributor Co--op For Eventsop For Events

Dealer listings

Current Happenings

Special Offers

Upcoming Options

Recaps / Successes

Formula For SuccessFormula For Success

Create a Turn-key program

• Target-market research – Educate yourself on the client’s industry and market.

• Preparing detailed media plans – Adhere to budget guidelines.

M ki th ff ti d ffi i t ibl T k th• 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.

RAB CoRAB Co--op Directoryop Directory

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 th t i d t b t ill ti t th ththe 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!





• Retail Programs

•Dealer Group Programsp g

•Distributor Programs

Questions?Questions?

X-Treme Co-op: Winner Takes All!

ON-AIR ONLINE ON-SITE ON DEMAND

Brandeis C. Hall · VP/Training · [email protected]

x-treme co-op: winner takes all! - rab.com€treme co ‐op: winner takes all! rab webinar, june,...

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