Document bB45kr6QEYpvgG50bYjn09oXk
TO: Mr. D. A. Merson
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MEMORANDUM
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RE: Paint Advertising Budget for 1962
JAM q j .
I am pleased to submit the Pajqt. Budget for 1962, both
for the Eastern Group and for the Pacific
__
The proposed magazine and newspaper schedule represents a reduction of about $116,000 from the amount approved and budgeted in 1961 for the same media. This helps compensate for the cost of the special direct mailing going out in April which runs $185,000.
The above reduction in publication space coupled with the fact that space rates and production charges have increased 8 to 10 per cent since this time last year meant that, in order to maintain a comparable number of insertions to what we had in 1961, we had to go to half pages on about one third of the schedule.
However, this gives us a schedule flexible enough to support regular house paint, latex house paint and Nalplex. Also there is one full page advertisement to appear in 28 Sunday papers featuring the new Decorator's Color Harmonizer book which we plan to sell to our dealers at cost. Most of these papers will carry name listings of dealers in the locality who have bought a supply of the book.
As the figures show, the 1961 expenditure is below the budgeted amount. This is due in part to decreased dealer activity brought about by unfavorable business conditions during the first half of the year. Also in July, as is our annual practice, we took a look at our sales position, both actual and projected to the end of the year, to limit media expenditures to a reasonable percentage of sales. The result was that two scheduled pages of advertising were cancelled. In addition, plans for a fall promotion using news papers were dropped. .
Submitted January 11, 1962 by T. Howard Sarine
Advertising Manager
ML 000040034
1962 PAINT BUDGET EASTERN GROUP
1
NL 000040035
N 26159.01
Page 1
MEDIA Magazines, Newspaper, Direct Mail, Business Papers
McC alls American Home Better Homes Popular Mechanics Popular Science Mechanix Illustrated Readers Digest Look Look (regional) Post Post (regional) Extension Sunday (magazine) Newspapers
Circulation
Insertions
8,000,000
3
3, 750,000
4
5,700,000
5
1, 300,000
3
1, 250,000
3
1, 100,000
3
13,300,000
1
7, 000,000
2
3,000,000
3
7, 000,000
1
3,000,000
2
400,000
3
19,500,000
1
Not Yet Scheduled
74,300,000
34
Preparation Costs
Less Pacific Coast Share
Net Cost
$ 85,462 67,483
127,417 14,495 10,690 8, 759 28,016 94, 702 61,092 43,498 47, 285 4, 000 61,000 15,000
$668,899 32,000
$700,899 94,000
$606,899
1
Painter and Dealer Magazines Space Placed Direct Preparation Costs
Less Pacific -Coast Share
$ 20,000 1,000 5,000
$ 26,000 3, 750
$ 22,250
Direct Mail
Less Pacific Coast Share
$185,000 50,000
$13*5, 00'0'
NL 000040036
Page 2
*)
Dealer Advertising, Promotional and Point-of-Sale Material
Cooperative Advertising Classified Directories Booklets & Printed Matter Color Cards Trade Shows Window & Store Displays Store Signs & Decals
$250,000 60,000 75.000
150,000 7, 500
50.000 40.000
$632,500
1
NL 000040037
Page 3
Contractural Agreements
Factory Sign Maintenance
$ 7,500
$ 7,500
Administrative Expense
Association Memberships Personal and Travel Expense Office Expense Rent, Light, Heat Salaries Misc, Production Costs
$ 2, 500 4, 000 2, 500
10,000 31, 500
2, 000
$52,500
1
ML 000040038
Page 4
Recapitulation and Comparison with 1961 (Eastern Group only)
Media Magazine Space Magazine Prep. Costs Newspapers Trade Paper Space Trade Paper Prep. Costs Direct Mail Space Placed Direct
Advertising Through Dealers Cooperative Advertising Classified Directories Booklets & Printed Matter Color Cards Trade Shows Window & Store Displays Store Signs & Decals
Contractural Agreements Administrative Promotional Materials
1962 Request
1961 Approved
Budget
1961 Expenditures (Estimated)
$ 565,000
$ 589,415
$ 523,710
27, 000
42, 376 ^
34,943
15,000
60,000/
10,671
17,000
17, 000
13,230
4,250 / 135,000/
4, 250
3,..6.7. 4
1,000
1,000
400
250,000 60,000 75,000
150,000 7,500
50,000 40,000
7, 500 52,500
$1,456, 750
266,500 60,000 45,000
175,000 10,000 50,000 54,000 10,800
---52,500
$1, 437, 841
248,018 61, 594 46,770 ,,
157, 968 -i 7, 390 T
37,078 36, 473 11,219 47, 799 22, 942 $1,263, 879
ML 000040039
1962 PAINT BUDGET PACIFIC COAST
NL 000040040
Page 5
Cooperative Advertising Direct Mail General Advertising Dealer Presentation Classified Directory Listings Displays & Exhibits Booklets & Folders Promotional Material Dealer Signs Company Store Signs Company Store Displays Company Store Advertising Color Cards Admini s trative
Schorn Division
National Lead Co. of Hawaii
1962 Request
$ 52,500 45,000
133,200 6, 000
16,000 14,500
6,000 4, 000 18,000 3, 700 6,800 9, 100 70,000 39,800 $424,600
30,500
14,000 $469,100
1961 Budget
$ 69,000
mm
jjSf 133,000 L 6, 000
15,500 12,500 10,000
5, 000 16,000
7, 500 5, 500 8,000 90,000 37, 500 $415, 500
30,000
10,000 $455,500
1961 Expenditures
...$ 59,400
129, 300 A' 13,000
16, 000 19,000 20,500
5,000 18,000
5, 200 6, 800 15,000 70,000 34,500 $411, 700
26,750
9, 700 $448, 150
NL 000040041
Page 6
COMBINATION RECAP
TOTAL PAINT BUDGET
Eastern Group Pacific Coast Totals
1962 Request
$1,456, 750
469,100 $1,925,850
1961 Budget
$1,43 7, 841
455,500
$1,893,341
1
NL 000040042