Joe Sugarman Takes BluBlockers into Retail How NordicTrack

Transcription

Joe Sugarman Takes BluBlockers into Retail How NordicTrack
A Publication of CPO, Inc.
Issue Number One
DirectHits
O U T S T A N D I N G
P R O D U C T S
A N D
S E R V I C E S
M E E T
T H E I R
M A R K E T S
Joe Sugarman
Takes BluBlockers
into Retail
How NordicTrack
Keeps Track
Making Trade
Magazines and Radio
Pay Out
Telemarketing:
The Key to D.R.
Success
Conduct Dozens of
Media Tests On a
Tiny Budget
Direct Hits
CPO
Page One
OPTIVA
”When they come to us with a recommendation, it’s wellresearched and well thought out. Their judgment is sound and
○
○
Direct Hits
CPO
Page Two
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
the product to consumers through direct
marketing, at the same time building awareness in preparation for retail distribution;
and 3) launch retail distribution.
To inaugurate the program, Optiva
and CPO targeted dental trade advertising
and dental trade shows to build product
recognition within the dental profession.
Dentists were offered a free 30-day trial and
special pricing for their personal use as well
as for sale to their patients. Optiva soon discovered that ninety-six percent of dentists
who tried Sonicare continued to use it. Most
also recommended it to patients.
Next, CPO helped introduce Sonicare to
The Sharper Image, the well-known catalog
and retail marketer. The Sharper Image
featured Sonicare on the cover of its 1993
Christmas catalog and spotlighted the product in its stores. Thousands of units were
sold during this first holiday season for
Sonicare, and The Sharper Image continues
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
David Giuliani, President and CEO
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
ptiva Corporation came to CPO in
early 1993. Optiva is the developer
of Sonicare, a sonic-frequency, solid-state
electronic toothbrush for at-home plaque
removal and stain reduction. David Giuliani,
President and CEO of Optiva, recognized the
need for a media and marketing strategist
to help communicate the benefits of this
technologically superior dental hygiene
product.
“A member of our Board of Directors told
us about CPO,” says Giuliani, “We liked what
we heard about their product evaluation,
market identification, creative development,
media strategy and direct marketing
capabilities. We knew immediately that we
wanted to work with them.”
Giuliani admits that Sonicare initially
was interested in CPO because CPO could
get Sonicare attention from the media and
access to affordable media inventory. “What
we’ve gotten and continue to get is that—
and much more,” says Giuliani. “CPO helps
us think and act like a large company, even
though we’re a small one with a small
company’s resources.”
As the crucial first step in their partnership, representatives of Optiva and CPO
spent time together reviewing all aspects
of the Sonicare business so that CPO would
have a thorough understanding of the
product and the marketplace. With that
foundation, CPO was able to assist Optiva in
creating a multi-year, three-step strategy.
The plan was to 1) foster acceptance of the
product within the dental profession and
promote sales to dental patients; 2) offer
○
O
○
on-target, which is always the mark of a valued partner.“
to carry the product. In the ensuing months,
inquiries and orders for Sonicare began arriving from pharmacies and speciality stores.
As part of its direct marketing strategy,
CPO and Optiva developed a radio commercial whose aim was to persuade listeners to
call an 800 number to request information
about Sonicare or, better yet, to place orders.
The popular and respected Paul Harvey
was identified as a credible spokesperson,
and CPO managed to secure a sponsorship
despite a waiting line of advertisers for his
show.
The Paul Harvey commercial proved to
be a lesson in message-crafting. Working
closely with Harvey, Optiva and CPO tested
several scripts until they produced the
versions that communicated the product’s
value to the program’s listeners. Once the
message was refined, listener responses
exceeded expectations.
“This particular project really defines
our relationship with CPO,” says Giuliani.
“Even when a project goes up and down,
through good and bad, we work together as
a team to get it right. There’s an honesty
and a level of maturity that’s always there
between us.”
“CPO is literally part of our team. They
are a great resource to us. We bounce
ideas off them. They ask us questions
and make us think. And they do their
homework. When they come to us with a
recommendation, it’s well-researched
and well thought out. Their judgment is
sound and on-target, which is always the
mark of a valued partner.”
CANCER TREATMENT CENTERS OF AMERICA
®
“We’ve gone from running a few magazine ads to running a
sophisticated marketing program that is larger and more
efficient than that of organizations much bigger than we are.”
T
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
he hospital and oncology units of
number, was inadequate. Leads were lost
Cancer Treatment Centers of
and media sources were unidentified.
America (CTCA), opened in 1988, offer a
“CPO was our unwavering friend and
comprehensive patient-driven approach
counsel who provided both insight and
to cancer research and therapy. CTCA’s
guidance in fixing that major problem,”
program encompasses a multi-disciplinary
states Stephenson.
team that provides patients with surgical,
The first step was to retain a 24-hourradiation, chemotherapeutic, immunotheraa-day outside telemarketing service. This
peutic, biological, molecular and genetic
service tracked media sources by telephone
treatments. Pioneers in the field of psynumber and screened callers, referring
choneuroimmunology, they also provide
qualified prospects to CTCA’s in-house
aggressive nutritional support.
team of oncology information specialists.
Until 1990, CTCA relied on word-ofEventually, after further training by a
mouth referrals and direct response
specialist recommended by CPO, CTCA
advertising in magazines to create interest
added personnel and equipment, and
and draw new patients. While these efforts
assumed all telemarketing responsibilities
had produced results, Chairman Richard
in-house.
J Stephenson recognized that CTCA needCPO also helped CTCA use the caller
ed to take marketing and advertising to
database to segment their market and
a higher level. On the recommendation
develop an audience-specific direct mail
of a business associate, Stephenson turn- Richard J Stephenson, Chairman
program.
ed to CPO. “With CPO’s help, we were able
“We’ve gone from running a few magto put together all the pieces for a comprehensive marketing azine ads to running a sophisticated marketing program that is
program,” Stephenson said.
larger and more efficient than that of organizations much bigger
“To start, we needed fundamental media activities,” says than we are,” says Stephenson. “We had a vision. Cancer patients
Stephenson. “CPO’s charge was to educate our group of caregivers, everywhere are pleading for a comprehensive, compassionate,
administrators, doctors and others on how to utilize media to build patient-centered program and, with CPO’s help, we were able to
our oncology program.”
put together all the pieces to help us achieve that vision and to
“In teaching us how to buy spots, how to rotate them for educate patients everywhere about their many options.”
maximum impact and how to get the most from our advertising
Stephenson acknowledges that marketing is an ongoing effort.
dollars, CPO made us more sophisticated about direct response “The challenge for us now is to look for other opportunities to grow
advertising,” he continues.
and CPO is our partner in that challenge. They act as a radar
As call volume increased, however, it became clear that CTCA’s system for us in identifying ways in which we can work with pain-house team of oncology information specialists (telemarketing tients to meet their needs and expand our business. The best thing
staff), operating from 9 a.m. to 5 p.m. weekdays with one telephone about CPO is that they are as committed to our success as we are.”
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
Direct Hits
CPO
Page Three
○
○
○
○
○
Direct Hits
CPO
Page Four
Direct Hits
CPO
Page Five
BLUBLOCKERS
“They closely watch our budgets, and never spend just to spend.
Sometimes they even recommend spending less than planned.
Direct Hits
CPO
Page Six
○
○
○
○
○
○
○
○
○
○
Joe Sugarman
○
○
○
○
○
○
○
○
○
○
○
○
luBlocker sunglasses, invented by the renowned direct response innovator, Joe
Sugarman, is a successful direct response product launched through television
infomercials. Early in 1993 BluBlockers shifted its focus to retail, securing national distribution in such outlets as Walgreen’s, Service Merchandise, and Ace Hardware.
Mary Stanke, President of BluBlocker Corporation, came to CPO for help in maximizing
advertising and media impact in the transition from direct response marketing to retail
selling. CPO is responsible for budgeting and negotiating media
buys, developing value-added promotions, timing advertising to
support retailers’ flyer distributions and newspaper inserts, and
producing tags for commercials.
“Spot TV was new to me,” says Stanke. “With CPO, I’m dealing
with a company that knows the industry, has expertise, and
provides guidance. They explain things well. They closely watch
our budgets, and never spend just to spend. Sometimes they even
recommend spending less than planned. And CPO knows how to
get us good deals.”
Sugarman adds, “CPO takes the initiative. As an example, on
one occasion they felt they could create a better radio commercial
than we had produced. At no charge to us, they created a concept
and produced the commercial—and it was better.”
Value-added is an important component of CPO’s service to
BluBlockers. Norm Goldring, President of CPO, explains, “With the
value-added promotions CPO creates with radio stations, we
preach that the sole objective is to drive sales. We urge stations to
customize their promotions, usually tying them to activities where
sunglasses are used.
“In one promotion, a radio station sponsored a sweepstakes
under the BluBlocker name for an expense-paid trip to any out-of-town baseball game
of the winner’s choice. The entry form was in two parts. One page contained the entrant’s
name and address, and the second, which had to be presented to claim the prize, was a
printed advertising message encouraging in-store trial of BluBlockers. In another promotion, the radio station broadcasted from the local zoo. Zoo visitors wearing other brands
of sunglasses were invited to try on BluBlockers and make comments on air about their
reactions to the sunglasses.”
Concludes Sugarman, “CPO is more than a service organization. They act like a partner.
They’re interested in our success.”
○
B
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
And CPO knows how to get us good deals.”
Inventor
NORDICTRACK
”They have leverage in negotiating rates and schedules.
And they are accessible—I can talk to the people who actually do the work and negotiate the deals.“
N
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
ordicTrack, Inc. is a highly successschedules, we share information from
ful direct marketer of exercise
our respective data bases on media
equipment for the home. In 1992, seeking
vehicles that have been effective for
to add a television buying resource to its
similar products.”
in-house and agency teams, NordicTrack
NordicTrack is a user of CPOvernight,
contacted CPO both to buy time for proven
CPO’s proprietary electronic monitoring
products and to execute test buys for
and response-matching system for telenew products.
vision advertising. Via modem from BDS,
After a promising test buy, in 1993
a company in New York, CPO receives
NordicTrack assigned television to CPO
daily records of “detections” of commerfor the WalkFit, a non-motorized storable
cials that have run the previous day. At
and adjustable treadmill. “We work with
the same time, CPO receives the daily
CPO because they truly understand
inquiry response records from the client
direct response and they balance this
by modem and matches the responses to
knowledge with their buying expertise,” Sandy Wright , Broadcast Planning Manager the detections. (See chart below.)
says Sandy Wright, NordicTrack’s Broadcast
Wright explains, “In the direct rePlanning Manager. “They have leverage in negotiating rates and sponse business, it’s imperative to have timely, useful information.
schedules. And they are accessible—I can talk to the people who We definitely feel that our relationship with CPO is based on
actually do the work and negotiate the deals.”
communication and team effort. As a team, we review spending
According to Susan Kall, CPO’s Manager of Client Services, and response trends on a daily and weekly basis and determine
“We continually scour the landscape for opportunities such as if the schedule needs to be adjusted accordingly.”
new cable networks where we can establish relationships early.
“CPO has been very willing to accommodate our needs and we
In addition, although NordicTrack relies on us to recommend rely on them to keep us abreast of trends in the broadcast industry.”
BDS
Detections
by station,
date, time
CPOvernight
Date
Station
4:05 p
Number of
Responses
Responses
xx
by date
xx
and time
4:35 p
5:09 p
Direct Hits
Client
CPO
Page Seven
Direct Hits
CPO
Page Eight
Direct Hits
CPO
Page Nine
YARDENCARE
“CPO has been a tremendous overall resource, offering
guidance in many areas . . . We’re a team. We’re loyal to CPO
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
Kim Gasior, Vice President
Direct Hits
CPO
Page Ten
○
○
○
○
○
○
○
have had some big hits along the way. We
found some approaches that work well
for us.”
One of them is television. “CPO helped
us realize that television could be an
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
Jeffrey Baker, President
○
○
○
○
○
○
○
○
he YardenCare Corporation is
the brainchild of Jerry Baker,
author of more than thirty-five books on
gardening who is known as America’s
Master Gardener. Baker’s advice and wisdom,
contained in booklets, newsletters and
videotapes, and his bottled remedies for
various gardening problems, are available
through retail as well as by direct response.
The seven-year-old company wanted to
build its customer base and had tried to
market itself through conventional advertising and a 30-minute infomercial.
“Our marketing attempts really bombed,” admits Jeffrey Baker, president of
YardenCare. “We knew we needed expert
help, and a trusted associate referred us to
CPO.”
Baker describes their first meeting,
which took place in 1992, as one of the
most refreshing moments of his career.
“We showed CPO our product line and
described to them the ways we moved
product,” he says. “When we asked them
what they thought we should be doing,
Norm Goldring, CPO president, told us he
didn’t have a clue!”
That candor set the tone for the ongoing relationship between the two
organizations. The research CPO conducted in follow-up to the initial meeting
indicated no clear path of marketing
success within the product category.
“CPO encouraged us to experiment
with our marketing,” says Kim Gasior, vice
president of YardenCare. “We trusted them,
followed their advice, and took some
chances. We’ve had some misses, but also
○
T
○
and they are committed to our success.”
effective tool,” says Gasior. “But we didn’t
need a 30 minute infomercial. For us, a
strong 60-second spot did the trick and
was affordable.”
Gasior states that CPO provided other
assistance in that arena, too. “We were not
pleased with the creative we’d been getting
on our television spots from another vendor.
CPO stepped in, grabbed the bull by the
horns, and helped the creative director get
it right.”
“CPO has been a tremendous overall
resource, offering guidance in many areas,”
adds Baker. “When we needed a list broker
and a creative director for our direct mail
work, CPO put us in touch with the right
people. When we needed a public relations firm, they put us in touch with the
right one.”
YardenCare has moved into print
advertising, and with CPO’s guidance,
realized that smaller can be better. “We’re
now running quarter-page ads after starting with full-page ones—and getting the
same results,” says Baker.
“We feel we’re really hitting our marketing stride and seeing results from groundwork we’ve been laying with CPO over the
past year,” says Gasior. “We appreciate the
counsel and service we get from CPO.
They have vision, but they work with the
reality of our budgets. We’re a small company, but CPO gives us the attention and
provides services as if we were a $10 million advertiser.”
“We’re a team,” Baker states. “We’re loyal
to CPO and they are committed to our
success.”
Will You Be Our Next
Direct Hit?
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
retail rollout
○
○
customer relationships and/or
○
Long term objective of building
Your Logo
Here
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
Tenacity and patience
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
to test and re-test
○
Capital and willingness
○
○
○
○
○
○
○
○
○
○
○
Product of exceptional value
○
○
○
○
○
○
○
○
○
○
○
○
CPO’s clients have a lot in common. All of
them came to us with the ingredients for
direct marketing success. If your company
matches these profiles, chances are CPO can
help you, too. For additional information,
please call Norm Goldring at 312/645-7700.
CPO
CPO, Inc., 515 North State Street, Suite 2200, Chicago, Illinois 60610-4320
CPO is a full service direct marketing resource.
• Market identification • Creative development • Marketing strategy • Media negotiations • Electronic order tracking
© Copyright 1994
Printed on recycled paper
D