Sponsor (Oct-Dec 1964)

Record Details:

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Alcoa Wrap launches the $110 million foil market's largest tv campaign. Goal: to overtake Reynolds and increase lead over Kaiser vertising on NBC-TV and an additional $300,000 in spot — and all of it scheduled between Aug. 29 and Dec. 30. The dollar figure is staggering in itself. It becomes an even greater blow when compared with previous ad budgets, for this is not only Alcoa's biggest tv fist ever, it's also the all-time biggest punch ever taken by a foilmaker. Alcoa was virtually forced to take to tv in order to meet — or beat — competition, namely Reynolds and Kaiser. Reynolds reputedly holds 55 percent of the aluminum foil market and, although it's not active in spot tv at the moment, has been a heavy user in the past. Alcoa is considered number two on the foil totem pole with a 20 percent market share. Kaiser ranks third with an estimated 1 1 percent. But this producer, well aware that households collectively can consume as much aluminum as some industries do, is stepping out to boost its foil sales via heavy tv investment. In fact, one industry observer estimates that Kaiser may be spending as much as $100,000 a month in spot tv to promote its foil. Using BAR and other sources, however. Sponsor took its own look at the foil market and its advertising patterns. For example, during two separate weeks this summer (normally a good sales period because of warmweather threats to food preservation, plus stepped up consumption for picnics, outings) just two foil advertisers showed much activity in spot television. Scott Paper's CutRite (through J. Walter Thompson, New York ) was spending about $2500 a week, while Kaiser Aluminum (through Young & Rubicam, San Francisco) was investing some $2000 a week. Together, they used only about 12 of the top 75 mar kets. And projecting such expenditures to an annual figure indicates that their combined spot tv efforts would rank only in the $120,000 category. The figure is undoubtedly conservative. Even so, the Alcoa project of $600,000 is exactly five times as much — and certainly more than five times as strong, since it's being compacted into 14 critical weeks, rather than spread throughout the year. Yet. it's not easy to wrap up the food wrap market, for foil manufacturers don't have it all to themselves. They have to share it with plastic film-wax paper makers, too, not to mention the makers of bags. There are an estimated 100 entries in all, including both private and regional brands. During the same isolated periods last summer (and in 10 to 15 different markets), Dow Chemical's Handi-Wrap, Union Carbide's Glad Armour serves up a Golden Star ham with a special glaze that depends on Alcoa Wrap covering during the glazing period inside the oven. November 2, 1964 Nestle's Choco-Bake liquid chocolate and Alcoa Wrap are combined to make pie crust that requires no baking and also leaves pie pan clean. 39