Document k9NaeNDQaBygrvyxJj1BjGx1D

I am submitting, herewith, the proposed 1959 budget covering all "Dutch Boy" mixed paint advertising. It is in two parts. One, amounting to $1, 287, 367 applies to the Eastern operation. Two, amounting to $416, 150 to the Pacific Coast branch. The total is $1, 703, 517. Comparison of these figures with the 1958budgets will be fpund on pages 5 and 7. T. Howard Sarine Advertising Manager December 8, 1958 NL 000039749 N 26097 Page l EASTERN BUDGET t ? NL 000039750 N 26097.01 Media Magazines Publication Readers Digest Look Saturday Evening Post Better Homes American Home Ladies Home Journal Preparation Costs Circulation 11,750,000 5,550,000 5,800,000 4,600,000 3,200,000 5, 500,000 36,400,000 Less Pacific Coast Share Page 2 Total Cost $ 67, 335 101, 858 108,513 76,025 47,478 57, 210 $458,419 15,000 $473,419 71, 012 $402,407 Trading Area New York Chicago Boston Philadelphia Preparation Costs Television Total T-V Homes 4,621,200 2,132,309 1,323,300 1, 760, 240 9, 837,049 Total Cost $ 52,500 24,240 17, 820 ............ 17,100 $111,660 20,000 $131, 660 Business Papers and Space Placed Direct Publication Paint and Wallpaper Dealer Paint Logic American Lumberman Building Supply News Painter and Decorator Spotlights Space Placed Direct ' Preparation Costs Less Pacific Coast Share Grand Total Total Cost $ 5,426 1, 120 3, 686 3, 438 4, 541 700 l, 000 $ 19,911 ?, 500 $27,411 4, 111 I\IL 000039751 $ 23,300 $557, 367 Page 3 Dealer Advertising, Promotional and Point of Sale Material Cooperative Advertising Classified Phone Advertising Booklets and Folders Color Cards Dealer Magazine Trade Shows Window & Store Displays Store Signs & Decals $230,000* 52.000 70.000 150,000 25.000 10.000 35, 000 45, 000 $617,000 * This figure includes $30, 000 formerly spent by Branches, charged to their expense and not in cluded in the general advertising budget, A re cent change in accounting procedure puts this item under cooperative advertising and in the advertising budget. NL 000039752 Page 4 Contractual Agreements Factory Sign Maintenance Di sneyland $ 4,000 6, 500 $10,500 Administrative Association Memberships Personal & Travel Expense Office Expense Rent, Light, Heat Salaries Misc. Production Costs $ 2,000 5.000 3, 500 10,000 55,000 2.000 -i $77,500 In Reserve Contingency $25,000 IML 000039753 Page 5 Recapitulation and Comparison with 1958 Budget Media Magazines Television Business Papers Dealer Advertising, Promotional and Point of Sale Materials Contractual Agreements Administrative Contingency 1959 Request $402,407 131, 660 23,300 $557,367 617,000 10,500 77, 500 25, 000 $1, 287, 367 1958 Budget $382,500 125,500 18,000 $526,000 621, 000 9, 500 77, 500 19,000 $1,253,000 Making allowance for the $30, 000, as explained in the note on page 3, brings the 1959 request within $4, 000 of the 1958 budget. ML 000039754 PACIFIC COAST BRANCH BUDGET JL f NL 000039755 Dealer Presentation Painter Advertising General Advertising Export Advertising Cooperative Advertising Cooperative Advertising Production Color Gallery Distribution Dealer Signs Dealer Electric Signs Telephone Book Listings Window Displays Cooperative Color Books Stuffers and Mailers Company Store Advertising Company Store Displays Company Store Signs General Office Expenses 1959 Request --$ 87 715 5, 775 115,500 4, 500 50,000 5,000 9, 000 8, 750 7,000 14,500 12,950 3, 500 5, 000 6, 350 5, 300 6, 800 112,500 $381,150 1958 Budget 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, 500 117,500 $372,500 Summary of Three Budgets Pacific Coast Branch Schorn Division National Lead Co. of Hawaii 1959 Request ~~ $381,150 25.000 10.000 $416,150 1958 Budget $372,500 30,000 10> 500 $413,000 NL 000039756 Page 8 COMMENT The same need for continuing "Dutch Boy" paint ad vertising on a reasonably substantial scale exists in 1959 as it has for past years. In fact, with constantly increasing competi tion for the sales dollar and a rapidly expanding market due to the phenonenal population growth the need for keeping the "Dutch Boy" name before the consumer assumes even greater importance. Media Advertising Magazines The selection of our magazine list for 1959 was made with the same two objectives in mind that we have followed in re cent years. One is to expose "Dutch Boy" to as many qualified prospects as possible within the limitations of the budget. Two is a continuation of our policy of introducing "Dutch Boy" to additional new people each year. These reasons lie behind the choice of Reader's Digest as one of the list. Here is a magazine with the greatest circulation in the world, nearly 12, 000, 000. It also has great reader loyalty which tends to pass along to those who advertise in it. The two advertisements we are planning, one exterior and the other interior, are to be of the editorial type. In other words, although plainly marked as an advertisement, they will be similar in treatment to some of the articles in the Digest. The agency, through some of their other accounts who use this magazine, have found this treatment an effective aid in building up readership and response. We have also added Ladies Home Journal to intensify coverage of the women's market. You will remember that in 1958 we were in McCall's for the same reason. The Saturday Evening Post which we dropped in 1958 has been restored to the schedule and with Look gives us good coverage in the weekly field. Better Homes and American Home represent the two "tops" m the home service area. Altogether this list represents the impressive circula tion figure of 36,400,000 which is double what we had in 1958 and the largest in "Dutch Boy's" advertising history. In the matter of total impressions the figure goes tip to well over one hundred million. NL 000039757 There is a total ol 16 pages, one less than in 1958 but enough to keep "Dutch Boy" represented during all of the active pamt-buying months. Page 9 Television In the Spring of 1958 we conducted a spot T-V program for six weeks in our four major paint markets. New York, Boston, Chicago and Philadelphia. This was done to put extra "Dutch Boy" impressions in these markets where we get nearly half our volume and where we have 36% of our dealers. This basic thinking, I believe, is sound and since television offers a proven medium for effectively reaching large numbers of people, a similar program is being proposed for 1959. We are suggesting the addition of one-minute spots to the 20-second spots we used exclusively in 1958. This will allow oppor tunity to tell a more detailed sales story including demonstration. In fact, the major part of the program would be these one-minute spots, at least 7 out of the 10 each week. Nalplex will again be featured although it is recognized that being essentially "Dutch Boy" advertising it will react to the benefit of the whole line. Business Papers This represents a minimum schedule to reach dealers and painters. We have added two papers in the lumber and building supply fields because of the increasing importance of this type of outlet in paint distribution. NL 000039758