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1 budget helps make Amana
\n firm puts over half of $2,250,000 ail funds info a nighttime
lio show, a daytime network TV series, and sizable dealer air campaigns
sponsored spot radio or television. But Amana - like most big appliance makers — is a great believer in dealer co-op advertising. particularly on the air. Well up on the list of approved media for co-op use are radio and TV, and Amana dealers take full advantage of this fact. Bv the latest agency estimate, more than half of Amana's 7.000 dealers are involved in local air activity, from morning radio newscasts to late-night TV film shows, splitting the costs 50-50 with Amana.
As might be expected, this major air effort represents a sizable amount of Amana's 1953 ad budget of $2,250,000. At the network level of radio and TV, about $875,000 will be spent for People Are Funny and Kale Smith. By year's end. this figure may be even larger if Amana continues in the fall its present policy of being in both network radio and network TV.
At the local level, between $400,000 and $500,000 will be spent in 1953 by Amana as the freezer firms share of dealer co-op radio and TV.
Total: about $1.325.000— or some
00',' of the total ad budget. While this is not the largest electrical appliance ad budget ( it is dwarfed by the multi-million outlays of such firms as General Electric, Crosley, Philco I it is the largest sum being spent on the air to promote a single line.
Amana did not build gradually to its position as the number one freezer firm and the top freezer sponsor in broadcast advertising. It shot to top posi
case history
tion within just a few years.
As George C. Foerstner, executive v.p. of the Amana Society and a prime mover in Amana's entry into the freezer business told sponsor:
"Our plan has been to keep one jump ahead of the big full-line appliance firms in merchandising our single product — freezers. Then, we come up with a new merchandising idea when the rest of the field starts to follow our already -established pattern."
How well Amana has succeeded with this merchandising philosophy can be judged from the booming growth of I Ik Iowa firm:
o Vccording to Amana's George Foerstner, "Sales for the first quarter of 1953 are 659? over t'1'' level of ihe same period last year."
o During the past three years, sales of Amana freezers — thanks largely to an excellent product and the tremendous consumer acceptance of the Amanapioneered upright freezer models — have jumped 565^. "That's five times the average growth rate of the freezer industry." account executive Maury Bergman points out proudly.
• Amana's expanding freezer factory, deep in the Iowa farmlands, is running neck-and-neck with demand. I nique among major electrical appliance makers. Amana has no factory warehouse, ships its products directly from the end of its modern assembh lines as fast as they can be turned out.
• A major $3,500,000 plant expansion is underway in the seven villages of the famous Amana Colony in Iowa.
Amana on the air: Freezer firm has been a national-level air advertiser for only a year. First program (left, below) was star-studded
"Paula Stone Show" on Mutual, from June to December 1952. Now Amana has "Kate Smith" on NBC TV, "People Are Funny" on CBS Radio
18 MAY 1953
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