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gram was first aired on 4 August, many managers reported that many new faces have been added to their stores' regular customers."
Other national chains like A & P and Safeway include radio in their budgets, but not extensively. In 1949, net sales for A & P were nearly $3,000,000,000; net profit was over $33,000,000. The company wants volume and gets it, sacrifices the profit margin. Advertising expenditures are held down consequently.
The Safeway chain includes over 2.000 stores. Net sales last year were over $1,000,000,000; net income over $14,000,000. During 1949, Safeway bought about $25,000 worth of time from the CBS and ABC networks.
Smaller chains, as well as these larger ones, have used radio. For the most part, those who have have done so successfully. For example, in Denver three of the region's top chains are currently active over KLZ. Millers Super Markets sponsors the 10:00 p.m. Voice of the News, seven nights a week. Save-A-Nickel Stores sponsors a musical variety program three mornings a week from 8:15 to 8:30 a.m. King Soopers sponsors the Beatrice Kay show on Tuesday and Friday nights at 8:00 p.m. In addition, Safeway for Lucerne Milk sponsors Magic Island, a children's Saturday a.m. program.
In the case of the Save-A-Nickel Stores, KLZ cooperated in the promotion of the program. The station had posters printed that plugged the show. These were posted on store cash registers in full view of customers.
Another effective job is being done in the Los Angeles area. KFI reports six chain sponsors. The Golden Creme Farms, an association of 84 retail stores, have Quick What's The Answer, a one-hour Saturday afternoon show.
Fitzsimmons Thriftimart Roberts, Market Basket, Mayfair, Ralphs Grocery Company, and Alpha Beta all use KFI-TV.
"Our estimate is that grocery chains in this area will spend at the rate of a half-million dollars annually in television," says Kevin Sweeney, general sales manager of KFI. "A substantial share of this money is coming from co-op funds of manufacturers and of course a large number of commercials on all of the programs are devoted to manufacturer's commercials."
In both radio and TV, the sponsors are making an effort to increase store
traffic. For instance, Mayfair invites its audience to select top 10 songs, pick up their entry blanks for the contest at the Mayfair stores.
KFI states that large chains like Safeway and A & P represent only about 20% of the volume done; that locally-owned chains, most of them extremely progressive, do far and away the largest share of the business.
A chain in Flint, Mich., reports success with its radio work. Hamady Brothers recently renewed its 52-week contract with WBBC in Flint. The chain, which operates 10 stores, sponsors an audience participation show, Cinderella Holiday. The show is aired each weekday morning, and usually gets a capacity audience of 500 women. Both weekly and daily prizes are awarded.
Radio advertising is not necessarily confined to chains. Independents will use the medium if they are grouped together in an association of some type, such as the Independent Grocers Association.
Several such organizations operate throughout the United States. The association in Milwaukee affords one of the best examples. Here, E. R. God
frey and Sons, grocery wholesalers originally, organized this group of independent grocers 24 years ago. It now numbers over 165 stores in Milwaukee. The organization buys on a wholesale basis for its associated stores, advises and services them from buying to selling, including advertising. About 20% of the IGA budget is devoted to radio.
IGA spends more than $200 a week for its announcements on WEMP in Milwaukee, and for promotion of the announcements. The association runs a schedule of six announcements dail) on the Coffee Club program, Mondays through Saturdays. It is a disk jockey program featuring Bob Larsen.
This radio advertising is promoted weekly in newspaper ads, and in weekly store bulletins. WEMP has helped the grocers promote the program; it distributes point-of-sale material to the individual stores. The station has made an effort to identify Bob Larsen as a spokesman for the IGA stores. It has sent Larsen out for personal appearances in the stores to distribute free merchandise and conduct contests.
The program features week-end specials throughout all the stores, empha
FIRST in
the QUAD CITIES
In Davenport, Rock Island, Moline and East Moline is the richest concentration of diversified industry between Chicago, Minneapolis, St. Louis and Omaha. The Quad Cities are the trading center for a prosperous two-state agricultural area. Retail sales, total buying and per capita income rate higher than the national average, according to Sales Management.
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WOC-AM^X
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WOC delivers this rich market to NBC Network, national spot and local advertisers . . . with 70 to 100% BMB penetration in the two-county Quad City area ... 10 to 100",'> in adjacent counties.
W0C-TV
Channel 5
22.9 Kw. Video • 12.5 Kw. Audio
V.
On the Quad Cities' first TV station NBC Network (noninterconnected), local and film programs reach over 23,529 Quad Cities' sets . . . hundreds more in a 75 air-mile radius.
Basic NBC Affiliate Col. B J. Palmer, President Ernest Sanders, General Manager
DAVENPORT, IOWA
FREE & PETERS, Inc.
Exclusive National Representatives
23 OCTOBER 1950
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