Document ev6VMMQwvk77E3dLj07OnnK6y

19 63 PAINT BUDGET EASTERN GROUP AWRBVEO BY; ex ec u t iv e COMMITTEE SEP 12 1962 i ? NL 000040021 MEMORANDUM TO: Mr. D. A. Merson RE: Paint Advertising Budget for 1963 I am pleased to submit the Paint Budget request for 1963, both for the Eastern Group and the Pacific Coast. are: In media the significant changes from the 1962 budget 1. A reduction in magazine advertising results in a a total magazine budget of $458, 848 compared with $654, 000 in 1962 or a reduction of $195, 000. 2. An intensification of our established practice of putting more advertising effort in those markets where we have best distribution and sales potential. In 1962 we used direct mail and regional magazine issues. For 1963 we are proposing, in addition to some regional magazine, issues, a newspaper campaign of eight 1000fline ads with dealer listings in 35 of our top markets. Both the magazine and the newspaper campaigns will support our major products - regular house paint, latex house paint and Nalplex - in addition to the "Dutch Boy" Color Harmonizer book which we feel is an important retail help to stimulate "Dutch Boy" sales. In addition to direct advertising of the Color Harmonizer, the agency has submitted a plan to promote the device through home decorating columns in newspapers and women's programs on radio and T-V. While there is no cost for space or time it is necessary to prepare scripts, photographs, film clips and informational material and the estimated cost of this is shown under "Product Promotion. " I wish to call attention to a change in allocation under "Factory Sign Maintenance." Up to now the cost of the Sayreville spectacular sign has been covered under a C&R although charged, of course, to the advertising budget. The amount carried for this in 1962 was $25, 800. This includes about $17, 000 in repair and repainting costs. NL 000040022 N 26155.01 Now that the sign is in A-l condition and is our property we have only maintenance and current to pay so it was thought logical to treat it as we do other signs on factory sites. Therefore the 1963 costs are included in the $15,000 figure. The total budget request of $1,412, 243 is about $70, 000 less than 1962 with the above $25, 800 included. Submitted September 7, 1962 by T. Howard Sarine Advertising Manage] NL 000040023 Page 1 MEDIA Magazines, Newspapers, Business Papers Better Homes Look Post (regional) Popular Mechanics Popular Science Mechanix Illustrated Handyman Extension Newspapers Circulation Insertions Net Cost 5,700,000 7,000,000 3, 000, 000 1, 300, 000 1,250,000 1, 100, 000 350,000 400,000 20,100,000 7 4 4 4 4 4 4 3 34 Preparation Costs Less Pacific Coast Share $132,528 189,405 83,596 16,495 15,670 13,290 4,325 3,539 $458,848 35,000 $493, 848 67, 480 $426, 368 ? Not Yet Scheduled Preparation Costs Less Pacific Coast Share $293,500 7,500 $301,000 69, 625 $231,375 Painter and Dealer Magazines Space Placed Direct Preparation Costs $ 16,000 2, 500 4,000 $ 22,500 Less Pacific Coast Share 3, 000 $ 19,500 Total Media (Eastern Group) $677, 243 NL 000040024 N 26155.02 Page 2 Dealer Advertising, Promotional and Point-of-Sale Material Product Promotion Cooperative Advertising Classified Directories Booklets & Printed Matter Color Cards Trade Shows Window & Store Displays Store Signs & Decals $ 26,500 250,000 60,000 75,000 145,000 5,000 65, 000 40,000 $666,500 '? NL 000040025 Page 3 Contractural Agreements Factory Sign Maintenance $15,000 $15,000 Administrative Expense Association Memberships Personal and Travel Expense Office Expense Rent, Light, Heat Salaries Misc. Production Costs $ 2,500 5, 000 3, 500 10,000 30,000 2, 500 $53,500 NL 000040026 Page 4 Recapitualtion and Comparison with 1962 (Eastern Group Only) Media Magazine Space Magazine Prep. Costs Newspapers Newspaper Prep, Costs Trade Paper Space Trade Paper Prep. Costs Direct Mail Space Placed Direct Advertising Through Dealers Product Promotion Cooperative Advertising Classified Directories Booklets & Printed Matter Color Cards Trade Shows Window & Store Displays Store Signs & Decals Contractural Agreements Factory Sign Maintenance Ad minis trative Association Memberships Personal & Travel Expense Office Expense Rent, Light, Head Salaries MiscT Production Costs Spectacular Sign 1963 Request $ 396,618 29,750 225,000 6,375 13,600 3,400 ... 2, 500 26,500 250,000 60,000 75, 000 145, 000 5, 000 65, 000 40,000 15,000 2, 500 5,000 3, 500 10,000 30,000 2, 500 $1,412, 243 1962 Approved Budget $ 565,000 27, 000 15,000 --- 17,000 4, 250 135,000 1,000 .... 250,000 60,000 75,000 150,000 7, 500 50,000 40,000 7, 500 2, 500 4, 000 2, 500 10,000 31, 500 2,000 $1, 456, 750 25,800 $1, 482, 550 1962 Expenditures (Estimated) $ 525,000 32,000 2, 500 -- 7, 600 8, 000 158, 544 1, 792 ... 250,000 60,000 45, 000$ 150,000 5,000 62,000 40,000 5, 000 2,400 3, 800 3,000 10,000 30,000 2, 000 $1,403,436 25,800 $1,429,436 NL 000040027 19 63 PAINT BUDGET PACIFIC COAST '? NL 000040028 Cooperative Advertising Direct Mail Coop Advertising Production General Advertising Trade Paper Advertising Dealer Presentation Telephone Book Listings Displays Exhibits Booklets & Folders Other Promotional Material Dealer Signs Company Store Signs Company Store Displays Company Store Advertising Color Cards Administrative Schorn Division National Lead Co. of Hawaii 1963 Request $ 50,000 2, 500 174, 000 ---5, 000 18,000 20,000 10,800 4, 000 20,000 4, 000 6, 800 4, 000 70,000 41,000 '$430,100 25,000 14,000 $469, 100 Page 5 1962 Approved Budget $ 50,000 45, 000 2, 500 131,200 2, 000 4, 800 16,000 14,500 7, 200 4, 000 18,000 3, 700 6, 800 9, 100 70,000 3.9, SOQ 1424, 600 30,500 14,000 $469,100 ? NL 000040029 COMBINATI ON RECAP TOTAL PAINT BUDGET Eastern Group Pacific Coast Totals 1963 Request $1,412,243 469,100 $1, 881,343 1962 Budget $1, 482, 550 469,100 $1,951, 650 t ? NL 000040030