Sponsor (Apr-June 1962)

the impact of video over audio alone ju-t didn't justifx the cost dillerenlial." Midas' past record adequate!) reflects the preference for radio and the classic news type format. In previous years the companj has hacked such radio new programs as Paul Harvey and the \ews, Charles Collingwood Report*. John Cameron Swayze, and Monitor. Launched on f June. Midas' current radio voice marks the fifth conBecutive year of association with NBC \eus on the Hoar. The Midas advertising budget for this year has been estimated at around $600,000. In addition to this outlay. Sherman estimates that the individual Midas dealers spend about S3 million annually on local campaigns in their own markets. I his expenditure is not in the nature of a co-op fund, but advertising undertaken and paid for by the Midas franchisee. Each Midas shop owner sets up his own program which usually includes newspaper mats and radio spots in each market. The new Midas radio spots have been recorded on long-play stereo records as a free local tie-in package for dealers. Each one receives an album, along with an explanation of the Midas national advertising approach, schedule of ads, and sample scripts. Sherman's franchising idea, initially, was to combine the best aspects of discounting and custom service into a nation-wide chain of profitable, independently managed dealerships, offering a durable product at a com petitive price in the industry Viewing a franchise as more than a contract to distribute and sell goods within a specified area more than a Midas sign displayed to backstop a local franchisee. Sherman feels that it's a skillful art form. Documenting this conviction, Sherman told SPONSOR that although total muffler and exhaust system parts total an estimated $250 million annually, Midas went into the field for its own fulfillment, not to capture a market. One of the bonus advantages to emerge from Midas national advertising is this, according to Sherman: It has conveyed to dealers what Midas home management in Chicago expects of them as franchisees. The growth of Midas. Inc. through advertising has been traced with thorough-going religiosity, Sherman emphasizes. Establishing brand identity among consumers in the automotive replacement market is a herculean task, he says, because of point of purchase obscurity. This is where Midas has the edge over its competition, which is composed chiefly of gas stations. From its beginning, Midas advertising strategy was based on overall national campaigns backed up by the local radio and newspaper campaigns waged by the franchise operators. This strong interlacing of national and local advertising is precisely what accounts for the nature of Midas growth, Sherman feels, attributing the saturation effect directly to the combination. Of Midas customers, Sherman says that an enormous preponderance are housewives. Yet, Midas radio commercials are not aimed toward the female audience, but toward the male. "We reach the housewife through her husband," Sherman says, "he is the one that sends his wife and the family auto to a Midas shop." A few months ago Sherman felt that the end of the muffler surge was approaching, and he did not anticipate establishing more franchises. However, about 50 more Midas shops will be added to the chain during the next 12 months; not because of an increase in autos — he has discovered that the demand for auto parts remains fairly constant — but because drivers are reluctant to drive very far with a muffler that needs replacement. Sherman considers franchising an exciting distribution channel with opportunities for real expansion from one product line into related groups. The Midas shops now offer shock absorber and seat belt installation as well as muffler service. Now Sherman and his team are preparing to repeat the success story all n\er again: this time with a chain of brake repair shops. This new venture is viewed by industry observers as another opportunitv for radio to demonstrate how well it can work for the franchise field, nationally and at the local level. As Gordon Sherman puts it, "We are at perfect peace with radio, and on the basis of its proven success, we don't have to explain our feelings about its effectiveness." ^ AT NIGHT the shops are all Quietville and show up an important interior feature of Midas shops — the lack of garage atmosphere. Waiting rooms are designed to make the wait for muffler installation as painless as possible. Clean, attractive surroundings are provided, along with children's equipment, such as play-pens and toys. Housewives, many of whom are attracted by radio spots, account for 50% of Midas customers :', I SPONSOR 25 JUNE 1962