Document 3NaRrMdr9ZkQjmKzXpaDqq6d3

"TgSSwre JM, 12 use __-g' Paint Pacific Coast Branch Schorn Paint Hawaiian Island Metals Baroid Doehler-Jarvis Titanium Pigment Southern Screw Magnus Chemicals Titanium Alloy Chas. Taylor Sons DeLore SUMMARY 1956 Advertising 1956 $1,211,000* 302,500* 30, 000* 8,500* 124,820 225, 004 125, 40 101, 35C? 90,700 47, 200 46, 115 51,500 25, 820 7, 650 ^ 7, 800 1 000039846 NL 1956 Advertising Metal Advertising Trade Paper Space Preparation Costs Booklets & Folders Directories Trade Shows Branch Expense Art Work & Plates Salaries General Expense Contingency 1956 $ 43,500 -- 13,500 2, 500 ---- 35, 820 5, 000 18,000 3, 000 3, 500 $124, 820 1955 $ 42,587 10,800 19,000 15,000 36,665 3,000 18, 000 2,000 3,500 $150,552 Comment: Most observers agree that business in the metal working, automotive, electronics, chemical and allied industries will be good during 1956. These are the markets that consume our metal goods. These are the fields covered by metal products salesmen. These are the industries in which our advertising sows the seeds of sales. We feel that we can maintain our competitive position by following about the same program used in 1955, with certain modifications which entail a smaller investment. Preparation costs are omitted because we plan to reuse the 1955 ads. Since there is no difference in the products to be ad vertised or in the policy to be followed, there is no good reason to prepare new ads. In 1956 there is only one major Trade Show of interest to metals - the National Metal Exposition to be held in Cleveland - at which National Lead Company will be represented by other divisions. -2- NL 000039847 1956 Advertising Baroid Division Trade Paper Space Preparation Costs Radio Program Classified Directories News Bulletin Product & Service Bulletins Drilling Muds Magazine Distributors Lists Memo Pads Salarie s Contingency & Misc. 1956 $ 72,139 43,350 -- 5,000 30,000 8, 500 12,600 5, 000 10,125 20,290 18,000 $225,004 1955 $ 53,116 26,800 17,000 5,000 29,000 16,700 12,600 3,000 10,125 18,000 7, 900 $199, 241 Comment: The budget is based on a campaign which considers the following major factors: (A) the increased sales activity of Baroid's major competition, (B) Baroid's increased sales activity, (C) the rise in costs of magazine space; and (D) Baroid's present sales strategy based on the Brooks Survey. ? To enlarge a little on these points as outlined above - A. COMPETITIVE ACTIVITY We have every reason to believe, through checking available sources, that Magcobar is considerably expanding its magazine advertising program in 1956 over 1954 and 1955. In both 1954 and 1955 they used 10 to 12% more pages than in the previous year. For example, in the 12 leading oil magazines Magcobar used 84 pages in 1954 and 94 pages in 1955. Baroid, on the other hand, used 140 pages in 1954 but dropped to 117 pages in 1955; this cut being required to absorb magazine rate increases and provide funds for the radio program. B. BAROID'S INCREASED REGIONAL, ACTIVITY Baroid is greatly expanding operations in Louisiana, Canada, the Rocky Mountains, West Texas and California. There fore, it is deemed advisable to support this increased activity by the use of regional magazines in those areas. The proposed 1956 schedule includes one Louisiana magazine; two offshore publications keyed to the Louisiana Gulf Coast; two Canadian magazines; one Rocky Mountain magazine, one West Texas magazine and two California magazines. In the case of the West Texas-Rocky Mountain publications there is overlapping area coverage. -3- NL 000039848 1956 Advertising C. RISE IN MAGAZINE SPACE COSTS Three factors exist in oil trade papers which require increased expenditure to maintain the same results from space ad vertising: (1) the rates for 1956 will be 8% above rates for 1955, (2) the number of all advertisers (not mud advertisers alone) is increasing in these magazines, making it more important to produce outstanding ads since the reader will spread his reading time over more ads, (3) the use of large, colorful ads and inserts is increasing, with the result that an ad which formerly stood out prominently in one or two colors as a run-of-the-book ad may now be commonplace and sur passed by more attractive ads. This is what we have been bucking during 1955 in competition with Magcobar advertising. D. BAROID SALES STRATEGY Brook's survey indicated that attention should be directed to improving the customer's attitude toward Baroid engineering ser vice, particularly in regard to its scope and quality. The increase in the last item above is due to the fact that in 1955, there was actually no contingency. The $7, 900 was to cover special issues, oil directories and various miscellaneous expenses. This year they are asking for $10, 000 as a straight contingency fund. -4- NL 000039849 1956 Advertising Doehler~Jarvis Division Trade Paper Space Preparation Costs Booklets Direct Mail Trade Shows Special Machine for Show Use Classified Directories University Machines & Service Motion Picture & Service Contingency & Misc. 1956 36,400 8,000 5,000 1, 500 13,000 8, 000 1,000 17, 500 31, 500 3, 500 $125,400 1955 $ 45,400 6, 700 5,000 3,500 11,200 ---- .... 1,000 750 $ 73,550 Comment: The chief variances from 1955 are (1) the inclusion of $31, 000 for a new motion picture in color and (2) the donation of machines to two universities. While the old picture is still usable there have been so many new developments since it was made that it should be brought up to date. The value of the university machines to the future of our industry is obvious. The item for $8, 000 is for construction of an actually operating machine to be used at trade shows to demonstrate the die casting operation. It would be used over a period of several years. -5- NL 000039850 1956 Advertising Titanium Pigment Division Trade Paper Space Preparation Costs Convention Souvenirs Sales Promotional Literature Miscellaneous 1956 $ 48,100 20,000 9,000 23,500 750 $101,350 1955 $ 43, 700 20,000 9,000 15,500 750 $ 88,950 Comment: While this represents an increase over 1955 it is the same as expended in 1954. The chief change in Trade Paper Adver tising is the addition of Chemical Week to the schedule. This will reach the management group in industries that use chemicals and pigments. Increase in literature is requested for a new edition of Titanox Pigments, Properties and Uses. -6- ML 000039851 1956 Advertising Southern Screw Division Trade Paper Space Local Advertising Trade Shows Printed Matter Novelties Gifts to Customers 1956 $65,000 1, 200 2, 500 10,000 2, 000 10,000 $90, 700 1954-55 $52,000 1,200 650 7, 500 1,800 7, 000 $70, 150 Comment: This is the first year this budget has been included in the National Lead Company's comprehensive budget. They explain that heretofore they operated on a July to June fiscal year and the comparative figures are on that basis. They use a long list of trade magazines in the furniture, hardware, boating, building construction, and industrial fields. Also included is an item of $10, 000 for Christmas gifts which normally is classified as sales expense. - 7- NL 000039852 1956 Advertising Magnus Metal Division Trade Paper Space Preparation Costs Railroad Magazines Direct Mail Department Expense Contingency 1956 $22.500 6.000 3, 500 7,000 6, 200 2,000 $47, 200 1955 $29,100 6, 000 4, 290 7, 000 11, 550 2, 000 $59, 940 Comment: Essentially this is the same effort as in 1955. The decrease in trade paper expenditures is in going to single pages. 1 - 8- NL 000039853 1956 Advertising "Dutch Boy" Chemicals Trade Paper Space Preparation Costs Chemical Materials Catalog Trade Show Foreign Advertising 1956 $31, 615 10,000 ,3, 500 1 000 $46,115 1955 $23,500 7, 500 2, 750 1, 000 $34, 750 Comment: The increase in trade paper advertising is due to rate increases but mostly to a new schedule in Chemical & Engineering News, This is desirable from the standpoint of promoting the various chemicals - stabilizers, plasticizers and gelling agents - to the broad chemical field on the technical level. Extra preparation costs are involved for the extra schedule as well as new ads for Chemical Week which this year were a repeat of 1954. The trade show is that of the plastics industry in which it is felt we should be represented. -9- ML 00003985* Titanium Alloy Mfg. Division 1956 Advertising Trade Paper Advertising Monthly Reminders Trade Shows Printing Contingency 1956 $37, 000 10,000 2, 000 1,500 1,000 $51,500 1955 $28,264 10,000 3,000 1, 500 1,000 $43,764 Comment: No essential change in program. Rate increases and some additions to the list account for small increase. Chas. Taylor Sons Co. Trade Paper Space Directories Preparation Costs Direct Mail Sales Literature Contingency 1956 $11, 100 1, 720 3, 500 2, 000 5,000 2, 500 $25,820 1955 $13,600 1, 500 3,000 1, 750 2, 500 --- $22,250 Comment: With one exception, the publications recommended have been regularly used in previous years to carry Chas. Taylor advertising. To intensify advertising to the foundry industry, which is a mass production market comprising nearly 6, 000 plants spending over a million dollars an hour for materials and supplies, a schedule of six pages of advertising in Foundry is recommended. - 10 - NL 000039855 De Lore Division 1956 Advertising Trade Paper Advertising Trade Directories Calendar Cards Advertising Pencils Printed Matter 1956 $3,000 650 1, 300 --2, 700 $7, 650 1955 $4,500 300 2,000 1,000 . --$7, 800 Comment: Virtually the same program as in 1955. Texas Mining & Smelting Division Local Advertising 1956 $ 250 1955 $ 250 in 1956. American Bearing St. Louis Smelting & Refining Division Master Metals Evans Lead Division These units report they expect to do no advertising - 11 - NL 000039856