U. S. Radio (Jan-Dec 1960)

Record Details:

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At this point, Charles Hires named the beverage "root beer" and launched an advertising campaign to encourage drinkers to switch to root beer. As a result of this approach, the Hires Company soon was able to promote the product as "the National Temperance Drink." By 1890, the enterprise which started with a capitalization of $400 was incorporated with a capital of $300,000. Last year, the company's sales were over $9 million, and according to Peter E. Hires, grandson of the founder and current president of company, 1960 is expected to set a ne^v record for sales. Franchise Botflers In getting its current campaign into gear. Hires has had to strengthen and enlarge its franchise bottler organization. Typical of most soft drink firms. Hires must depend heavily on its local bottler for sales, advertising and promotional cooperation. "In accomplishing this aim," Mr. Finnic states, "our franchise division executives worked to develop or replace weak territories with aggressive bottlers, adequately capitalized and willing to push Hires for real sales increase and steady growth. "We are convinced that we now have the type of bottler organization that can grow with us. We are also convinced that splitting our coop efTort between radio and print media multiplies impact far more than a concentrated approach alone. We are depending on our 'push market' campaigns to prove this to the satisfaction of all our bottlers." Mr. Maguire, speaking for the agency, says ". . . it is becoming increasingly difficult for newspapers to reach outlying market areas with real consistency, and the franchise holder who wants other than metro penetration, and he usually does, has inevitably to turn to radio." General Strategy Overall, Hires has developed the following benchmarks which guide its efforts in "push market" territories: 1. Advertising should be directed as much as possible to the high potential consuming and buying groups — teen-agers, housewives, etc. 2. Advertising must be tied in f^yPi^¥i£i ONLY Twe-Ktyfive: Gekw AND TODAY PROOF THAT HIRES has long believed in the power of advertising is seen (top) in copy of ad that goes back to the Rutherford B. Hayes administration. A user of radio since 1921, the company today believes that advertising and merchandising go hand-in-hand. The product display recently set up in the building of a Los Angeles station (above) shows this theory in action. closely with the in-store merchandising effort. Continuity of advertising on a year-round basis is vital. At the same time, the means of delivering the advertising message must be flexible enough to take advantage of local variations in buying habits and other marketing conditions. Hard sell copy is at least as important as entertainment ni any given commercial. "Radio," according to Mr. Finnic, "enables us to live with these requirements very nicely. We like the way it can target a specific audience with accuracy and economy — and get us the kind of consumer reaction that made the Hires name for many years synonymous with soft drinks and sfood times." • • • V. S. RADIO September 1960 27