Document jBw00N2wpbyqX52DX3Nra7MNR

io n al Lead Co mpan y ADVERTISING DEPARTMENT T. HOWARD SARINE. MANAGER APPROVED BY: EXECUTIVE COMMITTEE III BROADWAY New Yo r k 6 December 3, 1953 DEC 23 1953 Mr. J. A. Martino, President National Lead Company Building Dear Mr. Martino: I am submitting herewith, for approval, proposed advertising budgets for the various company divisions and departments. With the exception of Baroid Division, all budgets show some increase over 1953 although many of the increases are slight and all, I believe,..can be justified. oauuubiiCu xicivc; wcctii uj vxic? responsible heads of the divisions and departments involved. The total amount requested is $667,767 which compares with 1590,562* budgeted for 1953, a difference of $77,205. The comprehensive company budget, including the amounts already approved for paint advertising, totals $2,294,949* as compared with the 1953 budget of $1,931*675, a difference of $363,274* Very truly yours. Enc. * Includes an adjusted figure to project the Doehler-Jarvis budget to a full year period. NL 000039909 1954 Advertising SUMMAHT 1954 ADVERTISING Paint Pacific Coast Branch Sohom Paint Metals Baroid Titanium Pigment Magnus Doehler-Jarvis Titanium Alloy Mfg. Chas. Taylor Sons Chemical Products De Lore American Bearing Texas Mining & Smelting St. Louis Smelting & Refining A2& J $1,277,l82*Vy 310, 500* y/A 39,500* /J '121,790 185,529 101,000 y/y 84,351 VV 73,550 y 45,060 20,000 23,200 5,500 2,000 687 100 $2,294,949 1953 $1,113, 613 220,000 34,500 84,350 198,750 83,750 80,225 27,-050 44,465 16,280 23,445 4,522 625 100 $1,931,675 ` w 1 * Already approved fey Executive Committee -1- NL 000039910 N 26130.01 1954 Advertising METALS Trade Paper Space Preparation Costs Booklets and Folders Convention Exhibits Branch Expenditures Art Work and Cuts Salaries Contingency Fund mk / 32,250 8,000 19,000 11,500' 27,540 3,000 17,000 3.500 $121,790 y Comment: mi $ 29,100 4,250 Trade advertising for the above covers: Automotive Solders Chemical Lead Products Honeycomb Base Type Metals Lead Shielding General Metal Products Kirksite Dies All this represents a very important share of National Lead Company's business. Trade advertising done in the scale that conpetfcition and National Lead's prestige demands plays a vital role in holding and expanding that business. This year our advertising effort in the various fields has not been ade quate in the face of what competition is doing. On this & '~V ~ * "Due to the fact that no single competitor matches us item for item, we cannot make direct comparisons with competitors as to over-all. yearly expenditures. But, on single lines. Federated (and Gardiner) spends more on automotive products and type metals than we do, Kester spends more on solders and Imperial more on type metals, as oases in point. "In the chemical lead products field, we must meet the competiton not only of Knapp, Kelley and others in the lead industry but also that of other materials - metals, ceramics, glass, plastic, etc. When weighed against total competition, our effort seems impotent. "The recommended budget is aimed to give our metal products, item by item, the support they need to at least hold their own in the current tough competitive situation." NL 000039911 -2- 1954 Advertising The second major increase is under Booklets and Folders. This represents badly needed printed matter on solders, chemical lead products, Kirksite and plumber's goods. The increase in Convention Exhibits is due to the need for new exhibit backgrounds and entry into a new show, the Basic Materials Exposition. Also, in connection with our trade show program in the metal field Mr. Olson recommends the followings "We suggest, for reasons of Compary prestige, economy of space and construction and the probability of getting prominent up-front positions, that adequate space be taken in each show to house the exhibits of several divisions or branches interested in the same attendance. "In the Metals Show, we propose combining, each in its own portion of the booth, general lead products, chemical lead products, Kirksite stamping tools. Titanium Alloy Division and Doehler-Jarvis Division. "In the Basic Materials Show, we propose bringing together under the National Lead masthead, general lead products, chemical lead products, Kirksite tooling and Titanium Alley. "If these recommendations are approved, it would devolve upon the advertising department to bring to gether the affected branch and division people to agree on space, construction and expense allotments. It is obvious that a combined participation proposias a whole and be more economical for each participant." The budget increase under Salaries is to provide a full-time assistant to Mr. Olson who definitely needs the help. NL 000039912 1954 Advertising BABOID Trade Paper Space Production Costs Classified Directories News Bulletin Product and Service Bulletins Drilling Muds Magazine Distributors List Memo Pads Signs Dues Salaries Data Book Calendars Internal Sales House Organ Geological Posters Contingency 1954 $ 63,204 31,925 ^ 5,000 V 28,000 12,000 6,500 3,000 8,000 750 150 19,000 -- ------ -- -- 8.000 $135,529 1953 $ 58,406 , 29,200 . 5,000 27,000 13,000 6,500 4,000 8,000 2,500 . 150 19,000 10,000 / 4,000/ 2,000/ 2,000 -- - 8,QQ0 1198,750 1 Comment; This budget is $13,227 less than the 1953 figure, although Mr. Fowler, Baroid's advertising manager, states that they will actually spend some $4,000 less than the budgeted amount. J.O x SjJX'GWllOgi auuuw O-UC? i3wu6 i,l'auC .iUCtgci.a-i.AAC? schedule as this year plus their two house organs and other direct mall activities* Same of the 1953 material received a national award this year in the Direct Mail Advertising Association's........... annual contest as "Best of Industry". Also the Baroid News Bulletin was judged the best external house organ in the country at the Industrial Editors Convention this year. On estimated.1954 sales of $36,149,000 this budget represents .0051 cents per sales dollar. NL 000039913 4- 1954 Advertising TITANIUM PIGMENT Trade Paper Space Production Costs Reeeprocity Advertising Sales Promotional Literature Convention Souvenirs Wall Calendar mk / $ 5i,875 * 23,525 750 15,850 9,000 $101,000 1953 $ 35,500 19,500 750 17,500 7,000 . -2*500. $ 83,750 A substantial part of the above increase is represented by the restoration of Chemical and Engineering News to their trade magazine list. This was dropped in 1953 because the in troduction of Titanox-TG had been completed. Now, Mr. Corddxy indicates that other new products are ready for exploitation by research and development people of the process industries. This publication is fine for this purpose. There is also added promotion in the paper and ceramics fields. On this subject Mr. Corddxy states! "Additional appeal to the paper industry through the medium of the packages segment of this industry. Fibre Containers and Paperboard Mills. The trend to greater sales appeal in all kinds of packages made from paperboard warrants publicizing to the paper board people the value of titanium pigments in this field. The publication selected is read almost excjuuSj.vaj^' ay 6ue yaperooctru ouu pauaugjuig peopuc. "To the paper trade in general we propose to add seme color to our advertising for the first time in order to gain greater attention getting value and to help it contribute to strengthening our position In this field. "Another increase is in ceramics. The American Ceramic Society's Ceramic Bulletin is added as a means of supporting a campaign on. a new use for Titanox-TG ceramic glazes for clayware, tile, sanitaryware, etc., especially inasmuch as this publication reaches the people in the clayware Industry who are interested in new things." This division has done a particularly fine job this year in their trade paper advertising. Its attractiveness and qualtity are outstanding. NL 000039914 -5- : - .................r 'ZSi-r* 'r-c: iri:z-s. MAGNUS Trade Paper Space Preparation Costs Railroad Magazines Direct Mail Departmental Expense Salaries Contingency A 1254 $36,939 12,400 4,662 16,250 3,750 7,300 . 2,j>0 $34,351 1954 Advertising 1953 $34,193 12,300 3,562 , .14,000 / 3,965 / 7,200 / - 5.000 / $30,225 V Comment* The major part of the requested budget is for car journal bearing advertising although promotion for diesel motor support bearings, screen plates and paper mill products is also included. Magnus definitely has a big, continuing job to do in offsetting the roller bearing promotion. On this point, Mr. Altizer, advertising manager of the Magnus Division reports as follows* k * "During 1954 it will continue to be necessary to make available to all railroad personnel concerned factual details which establis the inherent economic and operating advantages of solid-type bearings. The pages of roller bearing advertising in trade papers still outnumber the pages of solid bearing advertising. Timken, Hyatt, and SKF have been joined by the Franklin- X'-..,,- -Sv-^------r- -5-------- X' ~ i .*u -'i-.-. * ... - 'v -> ` favor of roller bearings as far as total pages are concerned. "On the other hand, there is growing evidence that Magnus advertising is having its telling effect, and while railroads generally remain interested in freight oar roller bearings as a possible solution for hot boxes, there are no indications that arydefinite trend to roller bearings has been established or that it will be established. But for consistent, factual Magnus advertising during the past four years it is believed that the case for solid bearings would not be so clear to railroad management and that the promoters of roller bearings might have made consider ably more headway. "With increasing frequency Magnus sales and service representatives have reported that railroad officials are noticing and commenting favorably on NL 000039915 the Magnus campaign. Occasionally, during the past year such comments have been made in writing. The operating vice-president of a large system railway, . in acknowledging receipt of a mailing piece, wrote* I wish to commend your people for the very effective and informative advertisements you have been running'." 4 a 1954 Advertising DOEHLER-JARVIS Trade Magazine Space Preparation Costs Booklets Direct Mail Trade Shows Motion Picture Service VTO3,50 / 7.500 -- 5.500 / 3,500 / / 12,300 / -JaiOO $73,550 1953 6 months only |17,800 3,750 2,000 1,200 -l^OO $27,050 Comment: 1953 advertising for Doehler-Jarvis did not start until July so there is no full year comparison. Essentially the trade magazine campaign proposed for 1954 is an extension of that done in 1953* However, it has been slightly amplified to cover fields we believe important to the continued growth of this division. The direct mail activity suggested provides the best and most economical means of contacting present and potential customers between personal calls. It also will turn up leads for follow-up by salesmen. The increase in trade show expenditure is explained as follows by Mr. Olson:................. "While Doehler-Jarvis has not heretofore been am exhibitor at large trade shows, we believe that these Doehler-Jarvis business. In the two shows in which we suggest D-J participation will be found molding methods and metal parts materials directly competitive to ours. The people drawn to these expositions are there to learn the advantages of one process over another, of one material over another. In other words, the audience is composed of the same engineers, de signers, production men and principals that DoehlerJarvis salesmen want to call upon. A properly con ceived trade show exhibit brings these people to us, in large numbers, where the advantages of "dealing with Doehler" can be demonstrated in a manner not possible by ary other means." It might be added that this amount can probably be reduced if we adopt the cooperative type of exhibit proposed under Metal Advertising. NL 000039916 TITAHIPM ALLOY MFG. Trade Paper Advertising Monthly Reminders Convention Exhibits Printing Diaries Miscellaneous 10,000 4,000 1,500 ------ $45,060 1954 Advertising 1253. $23,965 10,000 3,500 1,500 4,000 -,.1-ig-QO $44,465 1 Comment i The total amount requested is practically the same as budgeted for 1953. The increase in space oosts is due to adding one magazine plus rate increases. Titanium Alloy, due to the versatility of its products, finds it necessary to advertise in six main fields plus appealing to technical people interested in research and development. CHAS. TAILOR SONS Trade Paper ana directories Direct Mail Sales Literature 1954 $14, OUU 1,500 A.000 $20,000 1953. -----4.000 $16,280 Comment: This is practically the same program followed in 1953. Advertising is done in magazines reaching the glass, steel, metallurgical and ceramic markets. -8- ML 000039917 1954 Advertising CHEMICAL PRODUCTS Trade Paper Space Preparation Costs Directories Contingency Fund 1954 $20,500 5,000 1,200 ..J*59SL $23,200 $15,276 5,900 269 2.000 $23,445 Comment: This budget covers advertising of vinyl stabilizers to the plastics field, both here and in Canada, and the Bentones to paint manufacturers. The increase in space costs is due (1) to a slightly in creased schedule in the plastics magazine, (2) the addition of two magazines in the paint field to reach chemists and'production managers and (3) a campaign in Chemical Week to reach top industrial executives who could logically be interested in the various chemicals made by National Lead Company. This latter effort is suggested to acquaint industry with the fact that we are in the chemical business and have products that will fit into their particular processes. The slight increase in directory adver tising is to provide space in Chemical Materials Catalog, an accepted medium for reaching those -* -9- NL 000039918 1954 Advertising DE LORE Trade Paper Advertising Trade Directories Calendar Card Handbook Miscellaneous 1954 $3,000 500 1,000 1,000 $5,500 1251 $2,852 420 1,000 -- 250 $4,522 Coganent: De Lore advertises only in the American Paint Journal and in various trade directories. The Handbook is to be a revised edition of a previous publication. 1953 sales are estimated at $1,250,000 which means the requested budget is about 0.4# of sales. .i T. - 10 - NL 000039919 AMERICAS BEABIHG Trade Advertising Sales Booklet 1954 Advertising Comment: This company had no budget in 1953 but for 1954 Mr. Lambertus has requested the above amount. He states: "The anticipated expenditure is being planned to be used for advertising in National Diesel Publications and for the preparation of a Sales Brochure. At this writing we do not have a specific program set up but have been, for same time, con sidering both items and are, therefore, asking to be included in the 1954 budget so that we may advertise when the appropriate time comes*w - 11 - NL 000039920 TEXAS MIMING & SMELTING Local Advertising 1954 $ 6S7 1954 Advertising 1252 $ 625 flnmmftTTht Advertising expenses of this Division are for good will support of the local community. They do no promotional advertising. ST. LOUIS SMELTING & REFIHIKG Local Advertising 1954 $ 100 1953 $ 100 . ? MASTER METALS INC. EVANS LEAD DIVISION Both these units report they did no advertising in 1953 and plan none for 1954. - 12 - NL 000039921