Broadcasting Telecasting (Jul-Sep 1959)

MONDAY MEMO from JACK W. RUNYON, 'president, Jack W. Runyon & Co., San Francisco The small account gives more than profit Challenges, whether large or small, are what keep us interested in our job. Very recently I had occasion to face one of these challenges. Most of my life, during my association with national agencies, the account had sizable appropriations. This particular challenge, a small wine account, had anything but that. No fault of anyone's, but like so many accounts continually popping up day in and day out, this one seemed to have the potential backed by solid management and a sales force that enjoyed getting behind a product with the enthusiasm so necessary in the field. Every business has to start, so the smaller babies need special care in infancy just as the larger ones originally had. The Profit Theory • I've been in agencies, where in one fell swoop, they resigned as many as six small accounts at one time. "Not profitable — can't pay their way." Granted, the one who gave this command was extremely successful in the advertising business and possibly he was right at the time in what he was doing. But strangely enough, after his death, the new owners today would love to have about four of those rejected accounts from a billing standpoint. Actually they are just as important, or should be, as any of the larger accounts. After all, every business had to start and somebody had to raise the baby and do all the dirty work. For this they receive the satisfaction of growing up with their account — knowing its problems thoroughly and sharing in the pleasure of good sales achievements. This latter experience happened to the Runyon Agency and it was most pleasant. We started with, first, the principle that the product must be right before any advertising. Then sufficient and correct distribution, good-marketing-merchandising and the right kind of advertising to fit the total picture. Our clients, Dino and Pete Barengo, who jointly produce and sell Barengo Wines (California wines), saw one of their new red table wines (Vino Mio) gradually being accepted in several cities in the state of Nevada. This was true in spite of very strong competition from several well-known national wines in the same price structure. Necessary Groundwork • After several agency-client sessions, and a consumer test of Vino Mio by the agency in the San Francisco area (a rough wine market), we were convinced of consumer acceptance of the product, but we had several other problems to overcome before breaking with any sort of a campaign. These were, namely, standardization problems in the packaging, need of point-of-sale material and the need of additional distribution of Vino Mio to warrant the type of campaign we really thought would fit the pattern. Labels lacked color effectiveness we hoped for, but since there was more than a sufficient supply already in stock, it was necessary and only practical to live with what we had on hand. However, we brightened the scene with client approval by redesigning and brightening our very effective new point-of-sale pieces, being careful to conform and not hurt our over-all standardization effect. The new look also went up on Scotch-Lite highway painted bulletins throughout Nevada. Radio spots, the backbone of our contemplated campaign, had to be good — not just average. We, the agency, knew the feeling we wanted but we were limited cost-wise. We had experimented with a singing jingle we liked very much. It told the entire story pleasantly and was one which upon testing we found would be retentive after proper usage. In almost any area there is competition with national jingles produced by top artists and talent — therefore if we were to spend our dollars in radio time competing with same, why waste good time and money with an amateurish jingle? Decision for Quality • We didn't, thanks to the client for seeing it our way, even though at the time it seemed way out of line in comparison to a small budget. In order to have an expensive but correct jingle much juggling had to be done in the planned saturation spot radio campaign. This hurt for the moment, but we had to start within the budget. Unfinished distribution of the product soon filled out with the attractive new point-of-sale pieces aiding the client's sales force. The product was right. Spot purchases in Nevada cities were carefully planned for one-minute and 30-second spots, approximately 296 per week with Reno stations carrying the load. Adjacencies were carefully watched throughout the spot buying. With our house in order and living up to our pattern, our one-month campaign on Vino Mio started. On June 30 our campaign finished. Results? Sales increased 500% in one month over total sales for the entire sales period last year, with sales still showing up even in excess of this figure since the close of the campaign. Advertising-wise the account may not be the most profitable to the agency, but we have shown our client results, and this will ultimately result in more new business for the agency. Already there are indications of just this. Jack W . Runyon was formerly with Lord & Thomas, Buchanan Co., Ted Bates, Biow, Beirn Toigo as manager for IOV2 years in Los Angeles and for the last three years vice president in charge of the Los Angeles region of Kenyon & Eckhardt, before finally fulfilling a lifetime urge to own his own shop in San Francisco, his birthplace. In his 30 years in the agency business, Mr. Runyon has spent considerable time in radio and television as writer and producer and supervisor of many top national shows. At about the half way mark in his career, Mr. Runyon changed over to the more general phases of advertising and in recent years, in addition to other duties, supervised all Pepsi-Cola advertising in the western part of the U.S. The PepsiCola Bottling Co. of San Francisco followed Runyon's move to his own agency as did Belfast Beverages and several other accounts. The Runyons, including their four children, live in Hillsborough, Calif. BROADCASTING, August 3, 1959 1 I