U. S. Radio (Jan-Dec 1960)

Radio Strategies 12 Charles E. Hires Co. Agency: Maxon, Inc., New York Product: Hires Root Beer Marketing Objective: To meet the rising tide of large, aggressive competitors, and create a greater sales impact rvithout expanding the advertising budget. Radio Solution : Apply a hard sell program to nation al saturation coverage in important markets. (Digested from U.S. RADIO, Sepfember I960, p. 24) THE Charles E. Hires Co., Philadelphia, probably the oldest and largest manufacturer of root beer in the country, found that its share of the soft drink market was "frozen." According to George F. Finnic, the firm's director of advertising and merchandising. Hires ^vas "being crowded in the market place by aggressive competition enjoying the advantages of overwhelming advertising budgets." To remedy this situation and broaden its sales base. Hires decided to overhaul and streamline its promotional activities and still remain \\ithin the confines of its budget. One major result of this effort was an expanded use of local radio to provide national coverage. Mr. Finnie reported that Hires was channeling 25 percent of its advertising and promotion budget, approximately $200,000, to radio. Working cooperatively Avith its bottlers, the firm bought a spot radio campaign on 1,000 stations in 400 markets. Though the length of the campaign varied from market to market, Hires used radio on a 52-week basis. Spot frequencies ranged from 15 to 70 a week on the stations used. "Using the strategy of the 'push market' program," Mr. Finnic said, "Hires was concentrating its heaviest promotional guns in selected territories across the country where market studies in depth have pinpointed the greatest potential for soft drinks. About 25 'push markets' are currently in operation, with an expected expansion to more than 50 by 1962." Among the markets making use of this program were New York, Philadelphia, Tampa, Miami, Salt Lake City and Grand Rapids. Through the combined efforts of the company, its agency, Maxon Inc., and the local bottlers, each program was custom-tailored to meet the needs of the individual market. "In all cases," said T. W. Prescott, the Hires director of marketing, "the approach upheld the firm's philosophy of sustained media activity throughout the year coupled with continuous activity at the point of sale. In this connection, we felt (he flexibility of local radio sj)oke for itself. Within the framework of the economics involved, we saw the medium as ideal for reaching potential customers at the oplimiun moments for turning advertising into sales." Reach Outdoor Audience Because root beer is an outdoor drink, it has been heavily merchandised as a complement to picnics, barbecues and other outings, Mr. Finney noted. "Wc were interested to discover that some 70 percent of ihe nation's seven million pleasure boats have radio sets. The sea-going radio audience was estimated at some 37 million people. This made an excellent tie-in for Florida ajid the West Coast where boating is a year-round activity." Capitalizing upon the natural companionship of root beer and ice cream, during the 1960 summer season Hires promoted an in-store campaign using the "Hires Float" theme. This proved an effective point-of-sale plan since it gave retail food outlets an excellent opportunity to move additional products with each soft drink sale. "Again," Mr. Finney said, "radio advertising was used to efficiently back up the in-store program. "Using the 'hard sell' approach, we aimed for saturation coverage in those markets that warranted it in terms of sales potential," noted Tom P. Maguire, business manager of Maxon's radio and tv department. "Hires, like other soft-drink prcxlucers, makes a particular effort to reach the teen-age market," he continued. "This is a factor in selecting stations, and the programming format leaned heavily toward disc jockey shows as well as programs directed to the housewife." Overall, Hires has developed the lollowing benchmarks which guided its efforts in 'push market' territories: 1. Advertising should be directed as much as possible to the high potential consuming and buying grcjups— teen-agers, housewives, etc. 2. Advertising must be tied in closely with the in-store merchandising effort. 3. Continuity of advertising on a year-round basis is vital. At the same time, the means of delivering the advertising message must be flexible enough to take advantage of local variations in buying habits and other marketing considerations. 4. Hard sell copy is at least as important as entertainment in any given commercial. "Radio," according to Mr. Finnie, "enabled us to live with these requirements very nicely. We like the way it can target a specific audience with accuracy and economy." • • • 76 U.S. RADIO • AIRF.XX 1961