YOU ASKED FOR IT

“It takes a big man to cry. But it takes even a bigger man to laugh at that man.”

—Jack Handey

March 27, 2012VOLT REVOLT...SAM’S CLUB...SMELLS

BRAND OBSERVATIONS OF THE DAYFrom my random collection of info sources, here are some highlights related to the brands of our times...• Former GM Vice-Chairman Bob Lutz says he’s done

whining about the “conspiracy” of the right wing to take down the Chevy Volt. But wait a second...the Prius seems to have survived the “conspiracy”. So maybe the Volt’s low miles/charge, $40k+ price tag, and tiny seating space have something to do with it. Call me crazy...

• Sam’s Club was deemed tops among hundreds of brands in the recent Temkin Loyalty Ratings. Consumers were asked to rate three elements of their loyalty—willingness to buy more, reluctance to switch business away, and likelihood to recommend. Well, our family shops at Sam’s and find that we’re forced to buy more (only come in twos)...we can’t switch business away because the closest Costco is 40 minutes down the road...and we recommend Sam’s to all our friends. Funny how that works. I think they’re on to something.

• Hugo Boss and Victoria’s Secret have been building customer loyalty through the nose. Literally. According to a recent Adweek article, both have been testing the effects of scents within the store on the level of emotional connection to their brands. One marketing firm specializing in this new branding means reports having seen “results as high as double-digit increases in brand preference.” Like my dad used to say when we’d pass the feed yard, “I think I smell money!”

And from my “SIGNS-OF-THE TIMES” file...

JIM HUEBNER

j i m h @ h u e b n e r p e t e r s e n . c o mC E L L U L A RT E L E P H O N E970-420-3382

Hmmm.

Brought to you by popular demand of a client, my mom, and some folks I met at a church potluck

From the remaining gray matter of Jim Huebner

Information that will make you smile, groan or think...

Do you ever wonder what this world

would be like if there was just a little

MORE recombobulation and a little LESS

discombobulation? I know I do...

(Thanks to my friend, Tim Cromley—head of marketing

at Walker Mowers—for sharing this photo while

passing through the Milwaukee airport last week.)

© 2012 Hmmm by Jim Huebner

Industry magnate John Wanamaker once said, “Half the money I spend on advertising is

wasted; the trouble is I don’t know which half.” Fortunately, in today’s

world of pay-per-click, direct response tracking, automation marketing,

and even formulas for calculating brand equity, there is much greater accountability

for your marketing dollars. And everyone in the C-suite needs to

understand this.

One method is to create

an ROI spreadsheet (see example) for each of your marketing initiatives. The numbers

on these spreadsheets will clearly communicate the investment involved and

the expected return on that investment in very real terms. Terms that speak in the quantitative ways that management will

better understand. With today’s extremely measurable means, translating marketing dollars into sales, and sales into profits has never been easier. Your CEO—and the rest

of the C-suite—need to know this, and it’s the marketer’s job to show them how.

Jim Huebner is President of HuebnerPetersen

Marketing Communications.The firm was

established in 1989 and specializes in helping

make manufacturers heroes to their dealer and

distribution networks through strategic brand

positioning, integrated marketing, and front

lines marketing services. You can reach Jim at

jimh@HuebnerPetersen.com or on LinkedIn.

WORDS TOLIVE BY

The way of a fool seems right to him,

but a wise man listens to advice.

–Proverbs 17:28a

Marketing is an investment, not an expense. Need to prove it? Monetize it.

...and straight from the HuebnerPetersen blog...! PAGE2

Company ROI on Projected Marketing Budgets

Product Unit BudgetBaseline Data Year Line Sales Low Average High Allocation (%) Low Average HighMarket Value - Market 1 500,000,000$ Market 1 20,000 7,000,000$ 8,000,000$ 9,000,000$ 75% 11.25$ 11.25$ 11.25$ Market Value - Market 2 350,000,000$ Market 2 5,000 4,500,000$ 5,000,000$ 5,500,000$ 15% 9.00$ 9.00$ 9.00$ Market Value - Market 3 450,000,000$ Market 3 3,333 5,500,000$ 6,000,000$ 6,500,000$ 10% 9.00$ 9.00$ 9.00$ Sales - Market 1 20,000,000$ 100%Sales - Market 2 10,000,000$ Sales - Market 3 10,000,000$ Gross Margin 17,000,000$ 19,000,000$ 21,000,000$ Gross Sales 40,000,000$ Gross Margin Increase n/a n/a n/aMarket Share - Market 1 4.0% Marketing Budget - Actual 300,000$ 300,000$ 300,000$ Market Share - Market 2 2.0% Marketing as % Gross Margin 1.76% 1.58% 1.43%Market Share - Market 3 2.0% Marketing as % Gross Sales 0.75% 0.75% 0.75%

Product Unit BudgetYear 1 Line Sales Low Average High Allocation (%) Low Average HighAnnual Market Growth 12.0% Market 1 22,000 7,700,000$ 8,800,000$ 9,900,000$ 75% 10.23$ 10.23$ 10.23$ Market Value - Market 1 560,000,000$ Market 2 5,750 5,175,000$ 5,750,000$ 6,325,000$ 15% 7.83$ 7.83$ 7.83$ Market Value - Market 2 392,000,000$ Market 3 4,000 6,600,000$ 7,200,000$ 7,800,000$ 10% 7.50$ 7.50$ 7.50$ Market Value - Market 3 504,000,000$ 100%Sales Increase Projections

Market 1 10% Gross Margin 19,475,000$ 21,750,000$ 24,025,000$ Market 2 15% Gross Margin Increase 2,475,000$ 2,750,000$ 3,025,000$ Market 3 20% Marketing Budget 300,000$ 300,000$ 300,000$

Sales - Market 1 22,000,000$ Marketing as % Gross Margin 1.54% 1.38% 1.25%Sales - Market 2 11,500,000$ Marketing as % Gross Sales 0.66% 0.66% 0.66%Sales - Market 3 12,000,000$ ROI % * 825% 917% 1008%Gross Sales 45,500,000$ * ROI % = Gross Margin Increase / Marketing BudgetMarket Share - Market 1 3.9%Market Share - Market 2 2.9%Market Share - Market 3 2.4%

Product Unit BudgetYear 2 Line Sales Low Average High Allocation (%) Low Average HighAnnual Market Growth 15.0% Market 1 25,300 8,855,000$ 10,120,000$ 11,385,000$ 75% 8.89$ 8.89$ 8.89$ Market Value - Market 1 644,000,000$ Market 2 6,613 5,951,250$ 6,612,500$ 7,273,750$ 15% 6.81$ 6.81$ 6.81$ Market Value - Market 2 450,800,000$ Market 3 4,400 7,260,000$ 7,920,000$ 8,580,000$ 10% 6.82$ 6.82$ 6.82$ Market Value - Market 3 579,600,000$ 100%Sales Increase Projections

Market 1 15% Gross Margin 22,066,250$ 24,652,500$ 27,238,750$ Market 2 15% Gross Margin Increase 2,591,250$ 2,902,500$ 3,213,750$ Market 3 10% Marketing Budget 300,000$ 300,000$ 300,000$

Sales - Market 1 25,300,000$ Marketing as % Gross Margin 1.36% 1.22% 1.10%Sales - Market 2 13,225,000$ Marketing as % Gross Sales 0.58% 0.58% 0.58%Sales - Market 3 13,200,000$ ROI % * 864% 968% 1071%Gross Sales 51,725,000$ * ROI % = Gross Margin Increase / Marketing BudgetMarket Share - Market 1 3.9%Market Share - Market 2 2.9%Market Share - Market 3 2.3%

Product Unit BudgetYear 3 Line Sales Low Average High Allocation (%) Low Average HighAnnual Market Growth 20.0% Market 1 31,625 11,068,750$ 12,650,000$ 14,231,250$ 75% 7.11$ 7.11$ 7.11$ Market Value - Market 1 772,800,000$ Market 2 8,266 7,439,063$ 8,265,625$ 9,092,188$ 15% 5.44$ 5.44$ 5.44$ Market Value - Market 2 540,960,000$ Market 3 5,500 9,075,000$ 9,900,000$ 10,725,000$ 10% 5.45$ 5.45$ 5.45$ Market Value - Market 3 695,520,000$ 100%Sales Increase Projections

Market 1 25% Gross Margin 27,582,813$ 30,815,625$ 34,048,438$ Market 2 25% Gross Margin Increase 5,516,563$ 30,815,625$ 34,048,437$ Market 3 25% Marketing Budget 300,000$ 300,000$ 300,000$

Sales - Market 1 31,625,000$ Marketing as % Gross Margin 1.09% 0.97% 0.88%Sales - Market 2 16,531,250$ Marketing as % Gross Sales 0.46% 0.46% 0.46%Sales - Market 3 16,500,000$ ROI % * 1839% 10272% 11349%Gross Sales 64,656,250$ * ROI % = Gross Margin Increase / Marketing BudgetMarket Share - Market 1 4.1%Market Share - Market 2 3.1%Market Share - Market 3 2.4%

Gross Margin By Product Line ($ Range) Cost per Unit to Promote

Gross Margin By Product Line ($ Range) Cost per Unit to Promote

Gross Margin By Product Line ($ Range)

Gross Margin By Product Line ($ Range) Cost per Unit to Promote

Cost per Unit to Promote