The Name of the Game: Sales Promotion

by Vol Montegronde

Advertising ond Sqles Promotion Mgr.

Aiox Hordwore Corp.

TO u large extent the predecessor r of todav's lumber and buildine materials store was one up on us. These general stores, mercantile stores or dry goods stores, were in most cases the center of social activity.

In those days "advertising" and tosales promoting" were done on a one-to-one basis. Service was truly personalized and communications were at the "gut level."

'We can't resort to such techniques of merchandising . our markets just won't allow it. One basic reason is that they're just too large a market group.

For instance, let's just quickly review some statistics. Our market research has indicated that younger families (female head under 30 years of age) account for the highest incidence of buyers (and this group gets larger and younger due to population growth). Yet, the important age group today, from the standpoint of dollar potential, is still a youthful 35-39 years old.

Even though families with incomes of 12,000 or more account for the largest share of buyers of cabinet hardware in terms of dollar volume. families with lower incomes ofier the best opportunities since they spend more per family. These are virtually untapped market groups. Our research also indicates that a substantial number of customers purchase on impulse and are swayed by point-ofsale material.

How much do they have to spend?

If you can motivate these groups into the store, then the average amount spent by those customers that do buy is nearly $20 per household on our line of merchandise alone. There is potentially over $100 million a year in sales to be had in cabinet jewelry and home security items.

Sfory dI d Glonce

Cooperative advertising programs can go a long way to helping you promote your operation as a consumer source for hardware and houseware items . . . a number of promotional methods are reviewed.

The next obvious question is how we reach this complex market? The name of the game is sales promotbn. Until recently there has been no firm in the cabinet hardware or home security device industry that has recognized these merchandising hurdles and offered a solution, until now!

In the beginning of this year, our company was the first in the industry to ofier a cooperative advertising program for our line of cabinet hardware and low cost home securitv devices. The plan is simple, we wili pay to any lumber or building materials merchant 5O/o oI his Ajax advertising costs if our goods are stocked and displayed.

The benefits of co-op advertising are obvious: tr The simplified and standardized performance standards of an independent clearing house assures the merchant quick repayment of co-op expenditures. n Ads can be placed at the merchantos local earned rate, often times insuring lower rates.

E An organized directory and file of ad mats, electrotypes, slicks, etc., is continually be' ing up-dated and maintained by Ajax for the merchant's uso.

E More retail advertising is made possible for the merchant at a lower cost due to the manufacturer paying a percent of the total cost.

! More "co-operative advertising" is possibleo leading to ce ordinated promotions at a national and local level between the merchant and Ajax' The total promotion concept should be carried out at the store level as well and not begin and end on the pages of a newspaper.

Signs at the point of purchase should direct the customer to specials and sales. Larger chains or independents could ofier a variety of promotional services to the do-it-yourselfer.

For instance, clinics or workshops opened to the public and held on the premises could instruct and educate the consumer to new techniques and materials. Ofier clinics on furniture and cabinet antiquing or refrnishing, picture framing, screen door or window installation, etc.

The merchant might find a book or magazine rack on how-to-do-it ideas of great value-(some literature is offered free from manufacturers and associations ).

Also try appointing a store official as an official "handy-man answerman."

We must be continually prepared to meet the needs of consumer demands. We are in a market where tastes are quickly changing and we are in an industry that is being deluged with new materials and products. We must remember that in the final analysis we have to communicate to a large segment in the most economical way . and the name of that game is advertising and sales promotion.