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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 · bhall@rab.com
• 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 Bureaubhall@rab.com
• 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.
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page2
• On-Air
Online
• Signage
Events
Co-op is available for…
What Do We Sell Them?What Do We Sell Them?
• Online
• 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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page3
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
Population: 1,988,200
Calculating the CoCalculating the Co--op In your Marketop In your Market
1,988,200 people x $30 = $59,646,000
$39,764,000 is used in local media
$19,882,000 is UNUSED.
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page4
Calculating the CoCalculating the Co--op In your Marketop In your Market
Market # 50: Hartford-New Britain-Middletown, CT
Population: 1,054,800
1,054,800 people x $30 = $31,644,430
$21,096,000 is used in local media
$10,548,000 is UNUSED.
Calculating the CoCalculating the Co--op In your Marketop In your Market
Market # 100: Boise, ID
Population: 475,400
475,400 people x $30 = $14,262,000
$9,508,000 is used in local media
$4,754,000 is UNUSED.
Calculating the CoCalculating the Co--op In your Marketop In your Market
Basically, $10 per person
in your market goes unused…
Every year.
So, let’s go get it…
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page5
RAB CoRAB Co‐‐op Directoryop Directory
• Plan Examples…
RAB CoRAB Co‐‐op Directoryop Directory
RAB CoRAB Co‐‐op Directoryop Directory
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page6
RAB CoRAB Co‐‐op Directoryop Directory
RAB CoRAB Co‐‐op Directoryop Directory
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.
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page7
• Banner ads
• Streaming
• Auctions/Deals
• Social
• Mobile
Internet CoInternet Co--op Availabilityop Availability
• Sponsorships
• Online video
• Podcasting
• Directories
• Contests
RAB CoRAB Co‐‐op Directoryop Directory
RAB CoRAB Co‐‐op Directoryop Directory
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page8
RAB CoRAB Co‐‐op Directoryop Directory
RAB CoRAB Co‐‐op Directoryop Directory
RAB CoRAB Co‐‐op Directoryop Directory
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page9
RAB CoRAB Co‐‐op Directoryop Directory
RAB CoRAB Co‐‐op Directoryop Directory
Three Ways to Use CoThree Ways to Use Co--op Effectivelyop Effectively
• Retail Programs
•Dealer Group Programsp g
•Distributor Programs
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page10
Three Ways to Use CoThree Ways to Use Co--op Effectivelyop Effectively
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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page11
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.
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page12
Selling Dealer GroupsSelling Dealer Groups
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)
Selling Dealer GroupsSelling Dealer Groups
• 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 Dealer GroupsSelling Dealer Groups
Summer SplashAuto Racing Winterize your car
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page13
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’
Selling Dealer GroupsSelling Dealer Groups
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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page14
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
Tracking Down the Elusive Manufacturer’s Rep…Tracking Down the Elusive Manufacturer’s Rep…
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”
Tracking Down the Elusive Manufacturer’s Rep…Tracking Down the Elusive Manufacturer’s Rep…
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?”
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page15
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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page16
In Four Easy Steps…
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.
In Four Easy Steps…
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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page17
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.
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page18
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
Using IncentivesUsing Incentives
• 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
Using IncentivesUsing Incentives
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.
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page19
Consumer Incentive Example:
Kwikset Locks
• 1000 keys are given away through Kwikset retailers
Using IncentivesUsing Incentives
• 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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page20
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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page21
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.
In Four Easy Steps…
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.
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page22
In Four Easy Steps…
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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page23
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
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page24
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!
X‐Treme Co‐op: Winner Takes All!RAB Webinar, June, 2011
Radio Advertising Bureauwww.rab.com
Copyright 2011Page25
Three Ways to Use CoThree Ways to Use Co--op Effectivelyop Effectively
• 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 · bhall@rab.com
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