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