Document VG1KarK2L4MzBpVwxekYmYLLq

I am submitting, herewith, the 1958 budget covering all "Dutch Boy" mixed paintjidyextising. It is in two parts; one, amounting to $1, 253, OffSTapplies to the Eastern operation; the other, amounting to $413, 000, to the Pacific Coast branch. The total is $1. 666.000. EASTERN BUDGET Our dealers are required to obtain more and more of their "Dutch Boy" business from the consuming public rather than from the professional painter. Consequently the value of the "Dutch Boy" brand image in creating acceptance and demand for our dealers becomes increasingly important. This fact was a prime consideration in the planning of the "Dutch Boy" paint merchandising plan for 1958. While some changes are being suggested in the composition of the budget, the total sum is approximately the same as budgeted for 1957. Some increases have been occasioned by such factors as rising production and space costs, additional color card stocks for new lines and the inclusion of Disneyland expense formerly covered by a C & R. However, the ratio of advertising investment to sales, which dropped considerably in 1957, is not expected to increase in 1958. Media Advertising Magazines Our media advertising has been revised to give us wider coverage of the home market, exposure to a new audience and greater impact and extra emphasis in certain key markets. In magazines we are placing our campaign in just one general mass circulation magazine. Look. Limiting ourselves to one instead of two general magazines enables us to go into both of the important shelter magazines, American Home and Better Homes and Gardens. We have been in Better Homes and Gardens consistently for many years. American Home has been on our list most of the time. However, we have been out for the past two years. Both magazines are widely used by our competitors and offer a homeowner audience particularly receptive to paint advertising. NL 000039764 -2- Also, we have added a short schedule (3 pages) in McCalls, a high circulation women's publication. This exposes "Dutch Boy" advertising to a large new audience. These four magazines give us an impressive campaign as to circulation (nearly 18,000,000); well rounded as to audience (10, 000, 000 primary men and 19, 000, 000 primary women readers); pinpointed as to active prospects (an average of 72. 5% home ownership.) There is a total of 18 pages, one more than in 1957. But due to the fact that last year we had two 3-page spectaculars we were in only 13 issues compared with 18 in 1958. Also, we are buying 5, 000, 000 more in circulation. With a total of 18 insertions we also have enough flexibility to advertise "Dutch Boy" Paints throughout all the active paint buying months. The Eastern share, including preparation costs, is $382, 500 which compares with $440, 000 budgeted for 1957. Television The suggested rearrangement of the magazine schedule, plus other adjustments in the promotional program, makes it possible to do additional advertising in four key markets. The New York, Boston, Philadelphia and Chicago markets account for 42% of our sales and include 36% of our dealers. Since these market areas represent so much of our volume and include so many of our dealers, it was suggested by the agency that supplementary advertising be considered in these markets in the peak painting season. T-V was a natural choice since it has a large audience (14, 500, 000) and heavy concentration (95% of the total homes). Twenty-second spots were proposed because of their greater availability and lower time costs. This advertising is primarily to help sell "Dutch Boy" Paints for "Dutch Boy" dealers in the areas covered although a particular product is featured. Nalplex was selected as this product. The spots will run through a six-week period in the Spring with seven daytime and two nighttime spots each week. The total cost, including preparation, is $125, 500. f NL 000039765 -3- PACIFIC COAST BRANCH BUDGET Their request totals $413,000 (compared with $421,000 in 1957) and includes "Dutch Boy" advertising in the 13 western states, Schorn advertising and advertising in the Hawaiian Islands. The largest single item is the amount for General Advertising. In 1958 this is slightly increased, $116,000 compared with $110, 000 in 1957. The bulk of this amount or $70, 500 is their pro-rated share of our national advertising costs, averaging about 15%. Also included is their two-third share of Disneyland. The balance is to be devoted to more intensive regional promotion of "Dutch Boy" Paints in Sunset Magazine, which is circulated almost entirely in the three coastal states. Other items follow past procedure except they hope to make a $17, 500 reduction in Cooperative Advertising. Submitted December 5, 1957 T. Howard Sarine Advertising Manager f NL 000039766 -4- MIXED PAINT ADVERTISING - 1958 Eastern Budget Media Advertising (national and local) Magazines (including preparation) T-V (including preparation) Business Papers (including preparation) Space Placed Direct Cooperative Classified Phone Promotional Booklets and Folders Color Cards Dutch Boy Dealer Trade Shows Point of Sale Window and Store Displays Store Signs Special Factory Signs Color Gallery Disneyland Administrative Assn. Memberships Personal & Travel Expense Office Expense Rent, Light & Heat Salaries Misc. Production Costs Contingency Fund $ 382,500 / 125,500-/ 17,000 1,000 175,000 50,000 80,000 200,000 22,000 10,000 35, 000 40,000 4, 000 3,000 5, 500 2, 000 5, 000 3, 500 10,000 55,000 2,000 25,000 $1, 253, 000 1957 Expenditures $ 440,000 --- 20, 145 3, 000 175,000 50,000 60, 000 175,000 20,000 15,000 45,000 45,000 4,000 25,^000 -- 2, 000 5, 000 4, 000 10,Q00 52,000 3,000 25,000 $1, 178, 145 NL 000039767 - 5- National Magazines. - 1958 Publication Look Space 5 single 4-color pages Cost $160,325 Better Homes & Gardens 5 single 4-color pages 118,825 American Home 5 single 4-color pages 80, 500 McCall's 3 single 4-color pages Total Space Cost Less Cash Discount Net Space Cost Est. Art, Plates, Type Total Less Pacific Coast Share East Coast Share 72, 699 $432,349 7,349 $425, 000 25,000 T450,000 67, 500 $382,500 NL 000039768 -6- Trade Magazines - 1958 Publication American Paint & Wallpaper Dealer Space 12 Black & White Pages Cost $ 5,100 Paint 8c Wallpaper Logic 6 Black & White Pages 1, 170 American Painter & Decorator 12 Black & White Pages 4, 620 American Motel . 12 Black & White Pages Total Space Cost Less Cash Discount Net Space Cost Est. Art, Plates, Type Total Less Pacific Coast Share East Coast Share 4, 680 $15,570 245 $15,325 4,675 $20,000 3,000 J $17,000 NL 000039769 -7- T-V 20-Second Spots - 1958 Station New York - WCBS-2 Spots per Wk. 2 Night - 7 Day No. Wks. 6 Total Spots 54 Cost $55,025 Boston - WBZ-4 2 Night - 7 Day 6 54 16, 270 Chicago - WBNQ-5 2 Night - 7 Day 6 54 21, 375 Philadelphia - WCAU-10 2 Night - 7 Day 6 54 216 Total Time Cost Less Cash Discount Net Time Cost Spot Production Total 19,425 $112,095 935 $llk, 160 14, 340 $125, 500 NL 000039770 -8- 1957 - 1958 Budget Comparison Consumer Magazines Trade Magazines T-V Total Space/Time &t Preparation Costs 1957 1958 $517,000 $450, 000 Eastern Share 1957 1958 $440, 000 $382,500 Pacific Coast Share y 1957 1958 * $77, 000 $67, 500 23,7 00 20,000 20,145 17, 000 3, 555 3, 000 -- 125, 500 $540,700 $595,500 -- 125,500 -- $460,145 $525,000 $80, 555 -- $70f 500 NL 000039771 -9 - Pacific Coast Branch - 1958 Dealer Presentation Painter Advertising General Advertising Export Advertising Cooperative Advertising Cooperative Advertising Production Color Gallery Distribution Dealer Signs Electric Signs Telephone Book Listings Window Displays Cooperative Color Booklets Stuffers and Mailers Company Store Advertising Company Store Displays Company Store Signs Color Cards General Office $ 6,000 4, 500 116,000 4, 500 50,000 4,000 6, 500 9,000 6,000 13,500 15, 000 3, 500 5, 000 1, 000 6,000 4, 500 80,000 37, 500 $372,500 1957 Expenditures $ 9,000 4, 200 108,000 4, 000 67, 500 5,000 6,200 9,000 5, 900 12,600 19,000 3, 200 5, 100 3, 000 5,900 6, 300 70,000 37, 500 $381, 400 NL 000039772 - 10 - Schorn Division - 1958 Dealer Presentation Painter Advertising Dealer Aids General Advertising Cooperative Advertising Cooperative Advertising Production Dealer Signs Telephone Book Headings Window Displays Company Store Advertising Contingency Fund $ 500 5,000 2, 250 9,000 2, 500 500 500 1, 750 2,000 1, 500 4, 500 $30,000 1957 Expenditures $ f5o -- 950 12,500 4,000 1, 500 600 1, 500 6,400 1, 000 450 $29, 600 Hawaiian Islands - 1957 General Advertising Cooperative Advertising Dealer Signs Dealer Electric Signs Telephone Book Advertising Company Store Advertising Company Store Signs Coior Cards $ 5,000 2,000 500 250 650 1,000 100 1,000 $10,500 1957 Expenditures $ 4, 750 2, 500 500 -- 650 2,800 2, 200 1,000 $14,400 Pacific Coast Branch Budgets Grand Total - $413,000 NL 000039773