Broadcasting Telecasting (Oct-Dec 1959)

BROADCAST ADVERTISING TAILORING DISTRIBUTION TO TV Here's how Busch Bavarian beer has built new markets by making its distribution patterns fit its television coverage It pays to sell— where you advertise. This sounds elementary but the logic behind this truism, nevertheless, can be elusive in this era of television. But Busch Bavarian Beer, a division of Anheuser-Busch Inc., St. Louis, has recognized that market distribution and market coverage via television are inseparable, and points to the following chronological highlights of its four-year experience in the popular-priced beer field: • In the fall of 1955, Busch Bavarian was introduced in the traditional way of opening new markets, state by state, in Kansas, Missouri and Illinois. Each wholesaler in each state was provided with advertising originating within his area, covering both investments in printed media and on radio-tv. Sales built up slowly but gradually. • Early in 1957, officials of Busch Bavarian and its agency, Gardner Adv., St. Louis, realized that this kind of local advertising could not deliver the greatest impact for each advertising dollar. Radio and tv, acknowledged as the most effective media for telling Busch Bavarian's story, did not confine themselves to geographical lines. They crossed wholesaler territories and state boundaries, and when the product's distribution did not follow the broadcast coverage, a portion of the company's advertising was dissipated. • Officials of Busch Bavarian and Gardner realized then that the important consideration is not where the advertising originates; it is where the advertising goes. Accordingly the company changed its method of selecting areas for new distribution. It started in the spring of 1957 by opening— not states — but areas that can be most effectively covered by advertising without any regard for geographical boundaries. • Television was selected as the primary advertising medium. Consequently, what Busch Bavarian now calls its "media coverage areas" are markets that are reached most effectively by tv emanating from the major population centers. • Busch Bavarian is now in a total 52 "media coverage areas," comprising part or all of 14 states. The company uses all media, but about 75% of the introductory budget is allocated to radio-tv, and 85% of the continuing budget is earmarked for the air BROADCASTING, December 21, 1959 media. (The bulk is in tv, but the company declines to provide a breakdown.) • The payoff: In 1958 Busch Bavarian doubled its output over 1957 and, in 1959, company executives claim, the output will double that of 1958 "to the point where our marketing success has exceeded our present production capacity." Busch Bavarian's success story is a striking testimonial to the we-know-noaccepted-boundaries prowess of radiotv. Its progress report tends to validate similar marketing theories advanced in recent months by Westinghouse Broadcasting Co.'s "Megatown," Corinthian Broadcasting's "Tele-urbia" and by various independent station operators. Busch Bavarian added one dramatic dimension: It re-shaped its distribution structure to conform to its television coverage. Walter Reisinger, regional brands advertising manager for Anheuser-Busch and John Naylor, vice president and account supervisor for Gardner Adv., were interviewed by Broadcasting in New York last week after Mr. Reisinger had revealed Busch Bavarian's business history before a meeting of the Television Bureau of Advertising. Future Plans • "We don't know exactly how many markets we will eventually be in," Mr. Reisinger said, "but future expansion will be in areas where there is the greatest potential for a popular-priced beer." Busch Bavarian, he added, has mapped out more than 190 "media coverage areas," defined by tv signals. New markets will be selected on the basis of "greatest potential." Mr. Reisinger explained that some areas are known to favor "premium" beers (like Chicago) and others (like New York) are deeply entrenched with popular-priced beers. It is likely that "premium" areas will not be candidates in Busch Bavarian's plans. He noted that areas invaded by the company's beer to date have been those that traditionally are regarded as "popular-priced places." Among the areas in which the beer is marketed are St. Louis, Houston, Dallas-Fort Worth, Jacksonville and Tampa, Fla., Tulsa and Oklahoma City. The product is in the Mid Bavarian strategists • Walter Reisinger, regional brands advertising manager of Anheuser Busch (1), and John Naylor, vice president of Gardner agency and account supervisor on Busch Bavarian beer, study a Bavarian commercial. These two are key figures in the developments of the Bavarian strategy of patterning distribution after television coverage. 23