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X-Treme Co-op: Winner Takes All! RAB Webinar May 2012

Radio Advertising Bureau

www.rab.com

Copyright 2012

www.RAB.com

X-Treme Co-op: Winner Takes All!

ON-AIR ONLINE ON-SITE ON DEMAND

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

Calculating The Co-op

Some $50 billion of media advertising

is financed through co-op programs.



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Copyright 2012

• On-Air

• Online

• Print

• Signage

• Events

• Promotions

Co-op is available for…

What Do We Sell Them?

And more things you haven’t even thought of…

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.*

*Revenue Development Systems



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Copyright 2012

Market # 26: Riverside-San Bernardino

Population: 1,975,600

Calculating the Co-op In Your Market

1,975,600 people x $30 = $59,268,000

$39,512,000 is used in local media

$19,756,000 is UNUSED.

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



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Three Ways to Use Co-op Effectively

•Retail Programs

•Dealer Group Programs

•Distributor Programs


Retail Programs

Work with a single retailer to use accruals from

one or more vendors to advertise multiple

products/services



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The BIG Co-op Money is in:

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 / Wholesale Distributors

Selling Dealer Groups

Does Market size matter?

Large markets:

• More retailers

• More dollars

= Bigger campaigns

Smaller markets:

• Per capita retailers

• Combined dollars

= media access



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Three Ways To Use Co-op Effectively

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)

• Different products that can be spotlighted

at different times of the year.



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Integrated Co-op Programs:

What Do We Sell Them?

• 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.

• 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




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• 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



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Step 3: Get an ‘Inside Man’


Find the central source of merchandise…

…usually the manufacturer’s rep.

The rep knows:

Who are the 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…

• 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.

• Google / Bing

• Phone Book

Tracking Down the Elusive Manufacturer’s Rep…



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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.

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

Selling The Manufacturer’s Rep…

• Use your own style.

• Be comfortable.

• Make sure it’s justifiable.



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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.

Selling The Manufacturer’s Rep…



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In Four Easy Steps…

• 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.

Set Up The Group Meeting…

RAB.com Co-op Dealer Group Letter



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• 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.

Set Up The Group Meeting…


• 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.

• 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.

Set Up The Group Meeting



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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

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.

• Banner sponsorship

• Audio commercial

• Video commercial

• Pre-rolls

• Player banner ads

• Player sponsorships

Working The Group Meeting



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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 Sponsorships



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Using Incentives

Use Incentives:

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.

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

Using Incentives



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Using 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

representative 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

Using Incentives



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Three Ways To Use Co-op Effectively

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 (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

Selling Distributors



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Step 2: Select A Consumer-Motivating Theme

Home Improvement

Sporting Events Themed Holidays

Selling Distributors

Distributor Co-op Online

March Madness Pick & Win



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Distributor Co-op Online

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

March Madness Pick & Win

Step 3: Make Contact

Selling Wholesale Distributors

• Represent multiple brands

• Have powerful sales forces

• Always have co-op funds available

Wholesale Distributors…



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Selling Wholesale Distributors

Wholesale Distributors…

They buy the goods.

They own the inventory.

They own the co-op.


• 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.”

• Distributor hosts manufacturer’s

representative meeting. Manufacturer

reps agree to support program.

Selling The Wholesale Distributor



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• Wholesale distributor’s sales reps

communicate program details to

retailers.

• Retailers agree to buy more

product and comply with

promotion details.

Selling The Wholesale Distributor

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…



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Copyright 2012


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

month since 1965

• Distributor experienced increased sales


Courtesy of…



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Distributor Co-op Banner Ads

• Banner sponsorship

• Audio commercial

• Video commercial

• Pre-rolls

• Player banner ads

• Player sponsorships

Distributor Co-op Sponsorships



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Distributor Co-op For Events

Dealer listings

Current

Happenings

Special Offers

Upcoming Options

Recaps /

Successes

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.

• 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.

Formula For Success



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RAB Co-op 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 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!


•Retail Programs

•Dealer Group Programs

•Distributor Programs



www.rab.com

Copyright 2012

Questions?

www.RAB.com

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 | radio … co-op cbs rivers… · ·...

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