Document RoZaOwqvdMX8b9KzqOjJbpYV

SUMMARY 19 58 Advertising Paint Pacific Coast Branch Schorn Hawaiian Island Metals Pigments - M-50 Pigments - 45-X Chemicals Nuclear Metals Baroid Southern Screw Titanium Pigment Doehler-Jarvis Magnus Titanium Alloy Chas. Taylor Sons DeLore Division St. Louis Smelting & Refining Texas Mining & Smelting 1958 $1,253,000p 372;, 500* 30,000* 10,500* 65,000 130,000 11, 500 63,000 8, 150 335,275 161,700 135,800 103,600 79,350 57,000 33,000 6, 500 250 ' pf856, 425) 1957 $1, 178, 145 381,400 29, 600 14,400 86,000 --- 10,000 46,500 7, 500 302,260 134,700 111,750 110,355 48,500 51, 300 26,500 6, 500 250 300 $2, 546, 020 1 * Already approved by Executive Committee NL 000039809 1958 Advertising Me tail s Trade Paper Space Preparation Costs Directories Booklets & Folders Misc. Production Costs Personal & Travel Expense Salaries Contingency 1958 $34,000 --2, 500 7, 500 4, 500 2,000 12,000 2,500 $65,000 1957 $43,500 10,000 2, 500 7, 500 5,000 2, 000 12,000 3, 500 $86,000 Comment: The 1958 Advertising Budget for the Metal Department has been worked out with two principal ends in view -- first, to pare advertising expenditures to the bone in order to bring metal sales promotion costs into line with reduced profit margins on metal products; second, to get the best possible coverage of our various markets with the sums available. . The latest reduction has been achieved by repeating 1957 advertisements thus saving preparation costs, by dropping some publications, by switching from high-cost, low ad-frequency magazines to others better suited to our needs, and by economies in other directions. Despite the drastic parings, we still will be able in 1958 to buy about three million sales impressions. This impact will not only serve to supplement the necessarily lean and spotty coverage of prospects and customers by our field men but will also serve to bring dur products to the attention of a constantly changing purchasing personnel. We have the hope that our competitive position will not be seriously jeopardized by our restricted advertising activity since our competitors' promotion efforts will probably be reduced at least as much as ours. NL 000039810 1958 Advertising Pigm e n t s M - 50 Trade Paper Space Preparation Costs Direct Mail Color Cards Booklets Trade Show Sales Promotion Material Contingency 1958 $ 46,000 62,000 4, 500 1, 500 4, 000 5, 000 2,000 5,000 $130,000 No Advertising in 1957 Comment: This is the introductory campaign for a new pigment with tremendous sales potential. The relatively high preparation costs are due to the proposed use of 4-color inserts. In the case of trade magazines, which are not equipped to print four-color process, they charge only their black and white space rate plus a small amount ($50 to $250 per issue) for binding in the insert. However, we have to furnish the insert including art, en= gravings, paper and printing. This is all included in the preparation costs. Extra copies of the insert will be used for direct mail and the cost of these is included in that category. 45 - X Trade Paper Space Preparation Costs 1958 .... .................. 1957 $ 4, 000 $10,000 7, 500 - $11,500 $10,000 Comment: It was felt that a partial schedule in two colors would be helpful in featuring tint retention and color stability produced by 45-X. The list has been reduced to American Paint Journal and Official Digest giving us excellent coverage of both management and technical people. Preparation costs are relatively high be cause of the colors but these ads will probably be repeated in 1959 as we have done before. 3 - NL 000039811 1958 Advertising "Dutch Boy" Chemicals Stabilizers Bentones Ben-A-Gel Trade Paper Space Preparation Costs Trade Show Salary Contingency 1958 $40,000 15,000 6,000 1,000 1, 000 $63,000 19-57 $37, 000 7, 500 -- 1,000 1,000 $4&,500 Comment: -- L----- --- - Plastics World has been dropped from the schedule but it is felt that we should go back to two colors in the plastics field so there is an increase in space cost and preparation. The show is the Plastics Show which is held every two years. 1 Nuclear Metals Division Printed Matter Trade Shows Travel Expense Contingency 1958 $3,500 2, 750 400 1, 500 $8,150 1957 * $6r-600 900 $7,500 Comment: A new edition of the Nuclear Metals booklet is required. Other promotional activities will be confined to exhibits at trade shows. NL 000039812 4- 1958 Advertising Baroid Division Trade Paper Space Preparation Costs Product & Service Bulletins Catalogs Data Book Sections Distributor List Publications (5) Classified Directories Memo Pads Salaries Miscellaneous Contingency 1958 $123,494 37,375 17, 500 12,000 13,500 10,000 50,950 8, 250 15,056 23,250 1,900 22,000 $335, 275 1957 $115,804 33,450 15,000 18, 700 10,000 8,000 37, 000 7, 000 12,206 23,250 1,850 20,000 $302,260 Comment: The increase is due almost entirely to rate changes, higher production costs and the inclusion of three publications formerly charged in various departments. However, the percentage of sales dollar remains the same as in 1957, 0.58%. The following page details the advertising expenditure related, to the sales dollar for the various products and departments for both 1957 and 1958. -5- NL 000039813 1958 Advertising DEPARTMENTAL, BREAKDOWN Department Estimated Sales Advertising Expenditure % of Sales Dollar 1958 1957 1958 1957 1958 1957 Drilling Mud $52,000,000 $46,000,000 $171,049.50 $148,873.20 0. 33 0.32 Well Logging 3,200,000 3,200,000 37,922. 52 43,132.20 1. 19 1. 34 Bentone-Baragel 1, 000, 000 1,000,000 21, 552.89 24, 520. 70 2. 16 2.45 National Western Bentonite-Petro Bond 1, 000, 000 600,000 34, 642. 89 16, 567. 70 3.46 2. 76 Testing Equipment Louisiana Baroid Sales 350,000 --- 500,000 -- 17,053.38 11, 695. 89 34, 845. 70 4.87 6.97 11,070.50* T -- Export 4, 100,00Q** 18, 107.93 * T otal $57,550,000 $51,300,000 $312,025.00 $279,010.00 * This was for entire Mud Products, Inc. in 1957. ** Estimated $4, 100,000 included in Drilling Mud. TOTAL ALL PRODUCTS AND SERVICES Estimated Sales................................................. ..................... 1957 - $51,300,000.00 1958 - $57, 550, 000. 00 Salaries 1957 1958 Advertising Expenditure $279,010.00 $312,025.00 23,250.00 23,, 250.00 Grand Total (Including Salaries) 1957 1958 $302^ 260.00 $335, 275.00 -6- % of Sales Dollar ....... 0.54 0. 54 _ NL 000039814 0. 58 0. 58 1958 Advertising Southern Screw Division Trade Paper Space Misc. Local Advertising Hardware Shows Printed Matter Novelties Christmas Gifts to Customers 1958 $132, 000 1, 200 5, 000 10, 000 3, 500 10, 000 $161,700 1957 $105,000 1, 200 5,000 10,000 3, 500 10,000 $134,700 Comment: The increase in cost of trade paper space is due partially to rate increases which average 10% over 1957. Also it was felt necessary to increase space because of new lines. 1 - 7- NL 000039815 1958 Advertising Titanium Pigment Division Trade Paper Space Preparation Costs Convention Souvenirs Sales Promotional Literature Miscellaneous $78,750 25,000 9,000 22,300 750 $135,800 $59,000 20,000 9, 000 23,000 750 $111, 750 Comment: The only change over 1957 is in magazine space and preparation costs. This increase is due in part to general rate increases amounting to about $8, 000. Another major change is the addition of four 4-color spreads in Chemical Week. Re garding this Mr. W. B. Anderson says: "We are planning to use full color in four spreads during 1958 in Chemical Week not only for maximum attention getting value but for effective functional illustration of TITANOX white pigments at work. ^ ...................... "Because these pigments are employed extensively in colored coatings and compositions it is planned to show interesting and novel examples of colored products in colorful settings ... such as roofing granules, plastic floor coverings, colored glass. At the same time each example will be related to the many different products that need TITANOX pigments while preference for this brand will be stimulated through appropriate copy. "This program directed primarily to management and purchasing people in all of the industries that can use titanium dioxide will reach them, we feel, through Chemical Week as indicated in our recent survey. We expect these ads to reinforce our regular campaign in black and white in helping to combat competition, particularly DuPont, ex pected to be keener in 1958." NL 000039816 1958 Advertising Doehler-Jarvis Division Trade Paper Space Preparation Costs Trade Directories Classified Directories Motion Picture Service New 72-pa'ge Booklet Other Printed Matter Trade Shows University Machine & Service Salaries Contingency ! 1958 $45,500 6,600 3,000 1,000 1,000 12,500 3,000 24,000 2, 000 5,000 $103,600 1957 $44, 500 9,000 3,355 1,000 500 10,000 3,500 16,000 9, 500 8,000 5,000 $110,355 Comment: The magazine schedule is substantially the same as in 1957 except for the addition of Steel and the dropping of ten area purchasing magazines. The 72-page booklet was not produced in 1957 and has been continued over into 1958. The trade show in crease is due to adding three area shows and a new backdrop. The salary item has been reduced because the balance has been allo cated to other departments. -9 - NL 000039817 1958 Advertising Magnus Metal Division Trade Paper Space Preparation Costs Railroad Magazines Direct Mail.......................... Journal Stop Movie Salaries Contingency 1958 $38,000 9,850 3, 500 7, 000 15,000 3,000 3,000 $79, 350 1957 $23,000 6, 000 3, 500 7, 000 -- 7, 000 2, 000 $48,500 Comment: Preparation costs and space rates have both in creased approximately $6, 000 over 1957. The same list of magazines as used in 1957 are again proposed for 1958. However, to hold our own with other advertisers, particularly our competition, it is felt that a return to black and one color and alternate double page spreads is highly desirable. The $15, 000 for a new movie may not be spent since it is con tingent on getting the cooperation of the Santa Fe Railroad. - 10 - NL 000039818 1958 Advertising Titanium Alloy Mfg. Division Trade Paper Space Catalog Space Production Costs Monthly Reminder Trade Shows Printed Matter Contingency 1958 $32,000 4, 900 5,600 10,000 2, 000 1, 500 1, 000 $57, 000 1957 $28,300 4, 200 4, 300 10,000 2, 000 1, 500 1,000 $51,300 costs. Comment: Increase is due to advanced rates and higher production C ha s . Taylor Sons Co. Trade Paper Space Directories Preparation Costs Direct Mail Sales Literature Agency Service Fee Contingency 1958 $11, 200 ................... 2,100 3, 500 5, 200 6,000 1,800 3, 200 $33,000 1957 $11, 780 1, 780 3, 500 2, 000 5, 000 2, 500 $26,560 Comment: Most of the increase can be accounted for by a stepped up direct mail effort to combat increased competition and the adding of a service fee for the agency to bring their compensation in line with effort' expended. - 11 - <>00039819 De Lore Division Trade Paper Space Directories Calendars Printed Matter Contingency 1958 $3,600 700 1,200 1,000 -- $6,500 1958 Advertising 1957 $3,000 520 1,350 1,000 130 $6,500 St. Louis Smelting & Refining Div. Local Goodwill Advertising 1958 $ 250 .......... 1957 $ 250 Texas Mining &c Smelting Div. Local Goodwill Advertising 1958 1957 $ 300 American Bearing Master Metals Evans Lead Division These units report they intend to do no advertising in 1958. . - 12 - NL 000039820 SUMMARY 1958 Advertising Paint Pacific Coast Branch Schorn Hawaiian Island Metals Pigments - M-50 Pigments - 45-X Chemicals Nuclear Metals Baroid Southern Screw Titanium Pigment Doehle r -Jarvi s Magnus Titanium Alloy Chas. Taylor Sons DeLore Division St. Louis Smelting & Refining Texas Mining & Smelting 1958 $1, 253, 000f 372,500* 30,000* 10,500* 65,000 130,000 11,500 63,000 8, 150 335,275 161,700 135,800 103,600 79,350 57,000 33,000 6, 500 250 300 $2, 856, 425 1957 $1, 178, 145 381,400 29,600 14, 400 86,000 .... 10,000 46, 500 7, 500 302,260 134, 700 111,750 110,355 48,500 51, 300 26,500 6, 500 250 300 f2, 546, 020 * Already approved by Executive Committee NL 000039821 N 26110.01 1958 Advertising Pigments M - 50 Trade Paper Space Preparation Costs Direct Mail Color Cards Booklets Trade Show Sales Promotion Material Contingency 1958 $ 46,000 62,000 4, 500 1,500 4,000 5, 000 2,000 5, 000 $130,000 No Advertising in 1957 Comment: This is the introductory campaign for a new pigment with tremendous sales potential. The relatively high preparation costs are due to the proposed use of 4-color inserts. In the case of trade magazines, which are not equipped to print four-color process, they charge only their black and white space rate plus a small amount ($50 to $250 per issue) for binding in the insert. However, we have to furnish the insert including art, en gravings, paper and printing. This is all included in the preparation k costs. T Extra copies of the insert will be used for direct mail and the cost of these is included in that category. 45-X Trade Paper Space Preparation Costs 1958 $ 4, 000 7, 500 til,500 1957 $10,000 $10,000 Comment: It was felt that a partial schedule in two colors would be helpful in featuring tint retention and color stability produced by 45-X. The list has been reduced to American Paint Journal and Official Digest giving us excellent coverage of both management and technical people. Preparation costs are relatively high be cause of the colors but these ads will probably be repeated in 1959 as we have done before, - 3 WL 000039822 1 _____________ ' : $2M8$-'W^':*W**<(W!5 1958 Advertising Pigments M - 50 Trade Paper Space Preparation Costs Direct Mail Color Cards Booklets Trade Show Sales Promotion Material Contingency 1958 $57,000 95,000 1,500 1,500 4, 000 5, 000 2,000 5, 000 $171,000 No Advertising in 1957 / --i / <r- Comment: This is the introductory campaign for a new pigment with tremendous potential. The apparently disproportionate relation of preparation cost to space cost is due to the use of 4-color inserts (about $50 per page over black and white rates) which we print and furnish to the publications. The extra space cost is very little but we have to meet the printing, art and engraving costs. Also included in production costs are about 20,000 extra copies of each advertisement to be used for direct mail and other distribution. 45-X Trade Paper Space Preparation Costs 1958 $ 4,000 7, 500 $11, 500 1957 $10,000 $io,o o'er Comment: It was felt that a partial schedule in two colors would be helpful in featuring tint retention and color stability produced by 45-X. The list has been reduced to American Paint Journal and Official Digest giving us excellent coverage of both management and technical people. Preparation costs are relatively high because of the colors but these ads will probably be repeated in 1959 as we have done before. -3- NL 000039823 SUMMARY 1958 Advertising Paint Pacific Coast Branch Schorn Hawaiian Island Metals Pigments - M-50 Pigments - 45-X Chemicals Nuclear Metals Baroid Southern Screw Titanium Pigment Doehler-Jarvis Magnus Titanium Alloy Chas. Taylor Sons DeLore Division St. Louis Smelting & Refining Texas Mining & Smelting 1958 $1, 253, OOOj* 372,500* 30,000* 10,500* 65, 000" 171,000 11, 500 63,000 8, 150 335,275 161,700 135,800 103,600 79, 350 57,000 33,000 6, 500 250 300 $2, 897, 425 1 ..... . * Already approved by Executive Committee H V /" . V A17 " , V-' I >r |.X !vpIf 1957 $1, 178, 145 381,400 29,600 14,400 86,000 10,000 46,500 7, 500 302,260 134,700 111, 750 110,355 48,500 51,300 26,500 6, 500 250 300 $2, 546, 020 - | NL00003982A