Document gb5VX9ZB0Djk67Zg9BBRdykne

MEMORANDUM TO: Mr. D. A. Merson, Vice President FROM: T. H. Sarine DATE: July 31, 1953 I am not prepared at this time to submit our Paint Advertising Budget for your approval. This will be done in early September when you have returned from vacation. I do wish, however, to point out to you what I con sider a veiy serious situation, advertising-wise and promotionwise. This is graphically shown on the attached record of expenditures since 1947 when we first went into the mixed paint business. Note that our position in the industry has gone from 3rd place to 7th and:8th. True, our total paint budget has increased from $800.OOP to about a million but the percentage of this budget devoted to space advertising has dropped from 37$ in 1947 to an average of 23$ the past four years. Plus the fact that in 1947 we were paying $11,600 for a page in Better Homes & Gardens as against $16,325 now, $15,000 for a S.E.P. page compared with the present $23,310. The result: we have dropped from a 22-page schedule with double pages to a straight 15-page deal. This might not be so serious if competition had stayed where they were in 1947. But look what has happened to competitive expendituresi Sherwin-Williams has more than doubled Pittsburgh has tripled DuPont has expanded from just a Duco job to a full paint schedule Glidden is up over 50 per cent DeVoe and BPS have doubled What has occurred - and the pace is accelerating is that more and more competitive impressions are being made .. ."Dutch Boy" is getting shoved farther and farther back in the public consciousness. We are well on the way toward losing the very thing we have to sell against competition "Dutch Boy" acceptance and "Dutch Boy" recognition. When we started the mixed paint business in 1947 only two paint advertisers were doing more than "Dutch Boy". Now a short six years later there are six or seven ahead of us in line, some not even in the running in 1947. Note that the total spent by the eight companies listed has gone from 1.7 million to 4*6 million in the <5- years. NL 000039904 -2 The indication seems clear - and I know Sales fully agrees - that our space advertising in 1954 Should definitely "be stepped up. i ? NL 000039905 Year 1947 1948 1949 1950 1951 1952 1953 Approp. $ 801,000 923,143 959,696 900,923 861,010 1,006,218 968,313 Dutch Boy Paint Advertising Mag., 1292,453 312,545 298,695 197,421 222,453 230,366 248,626 % Total 37 33 31 22 23 22 25 No. Pages 22 16 20g16 16 15 15 Comoet. 3 4 4 6 8 7 S-W Pittsburgh Glidden BPS DeVoe DuPont Reardon U. S. Gypsum Totals M $ 803,600 256,000 306,000 132,700 105,800 55,000 -- 89,1Q0 $1,748,200 Competitive Advertising 1248 $ 818,700 372,900 339,600 145,300 83,500 48,800 _____ 63.000 $1,871,800 $1,530,128 360,385 333,458 234,565 138,064 211,861 135,482 144.825 $3,088,768 1250 $1,624,745 421,741 564,163 274,400 208,670 116,524 6,200 ____22*260 $3,309,403 125i $1,824,337 707,097 508,924 280,315 291,601 353,118 316,732 ... J6*.72> $4,418,883