Manufacturer and Alternative FundingManufacturer and Alternative Funding

Co-op & NTRCo-op & NTR

Co-opCo-op

The The Co-op Co-op

TriangleTriangle

ManufacturerManufacturer

RetailerRetailer RadioRadio

Local retailer runs

advertising featuring a

manufacturer’s or supplier’s

product or service

Local retailer runs

advertising featuring a

manufacturer’s or supplier’s

product or service

The manufacturer or supplier

reimburses the retailer for the

advertising (all or a portion) based on the retailer’s

previous purchases

The manufacturer or supplier

reimburses the retailer for the

advertising (all or a portion) based on the retailer’s

previous purchases

Co-operative Advertising

Co-opCo-op

Benefits

Lucrative source of new revenueLucrative source of new revenue

Stretches a retailer’s ad

budget

Stretches a retailer’s ad

budget

Local retailers can tie into national manufacturer's

programs

Local retailers can tie into national manufacturer's

programs Rarely CPP or ratings drivenRarely CPP or ratings driven

Co-opCo-op

11Retail-Driven:Retail-Driven:

You work with a single retailer to use accruals

from one or more vendors to

advertise one or more

products/services

You work with a single retailer to use accruals

from one or more vendors to

advertise one or more

products/services

Two OpportunitiesCo-opCo-op

Two OpportunitiesCo-opCo-op

22Manufacturer-Driven:

Manufacturer-Driven:

You work with one manufacturer to

combine the accruals from

several retailers to advertise selected products/services

You work with one manufacturer to

combine the accruals from

several retailers to advertise selected products/services

Info from RAB.com

K-SWISS INC: 31248 Oak Crest Dr.,Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494.

Co-opCo-op

Company Info –

Who to contact

Info from RAB.com

K-SWISS INC: 31248 Oak Crest Dr.,Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494.100%

Co-opCo-op

Allowance-What % of advertising

Info from RAB.com

K-SWISS INC: 31248 Oak Crest Dr.,Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494.100% up to 1% of current year’s net

shipments.

Co-opCo-op

Accrual Rate-Source of funding

Info from RAB.com

K-SWISS INC: 31248 Oak Crest Dr.,Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494.100% up to 1% of current year’s net

shipments.Expires 12/31

Co-opCo-op

Expiration Date-When funding ends

The Difference Between

NTRNTRCo-opCo-opPrevious PurchasesStructuredAd BasedCorporate Contact

Previous PurchasesStructuredAd BasedCorporate Contact

Future PurchasesNot StructuredPromo BasedLocal Contact

Future PurchasesNot StructuredPromo BasedLocal Contact

NTR = Revenue not from a traditional advertising budget.

NTR = Revenue not from a traditional advertising budget.

Spending (Billions)NTRNTR

AdvertisingAdvertising PromotionalPromotionalSources: Universal McCann 2006, Promo Magazine 2006Sources: Universal McCann 2006, Promo Magazine 2006

$70

$249 $276$288

$342

1995 2000 2005

$165

Kinds of NTR

Cause-Related

Event-Related

Internet

In-Store Mass Merchandiser

Convenience

Supermarket

Cause-Related

Event-Related

Internet

In-Store Mass Merchandiser

Convenience

Supermarket

Sports Marketing

Recruitment Job Fairs

Expos

Sampling / Couponing

Consumer Sweepstakes

Sports Marketing

Recruitment Job Fairs

Expos

Sampling / Couponing

Consumer Sweepstakes

NTRNTR

Show Me The Money!NTRNTR

NTR campaigns are NOT funded from an ADVERTISING budget! NTR campaigns are NOT funded from an ADVERTISING budget!

NO!NO! AD Budget

AD Budget

Sales

Branding

Multi-cultural

Promotional

Public Relations

HR

or others

NTRNTRNTR campaigns DO come from

these budgets: NTR campaigns DO come from

these budgets:

YE$YE$

Show Me The Money!

ElementsNTRNTRNTR campaigns can revolve around elements other than

Radio

NTR campaigns can revolve around elements other than

Radio

Newspaper Newspaper

Direct Mail Direct Mail

Promotional Gizmos Promotional Gizmos

Eventhe

blimp!

Eventhe

blimp!

Retail Driven NTRNTRNTR

The retailer agrees to buy more product

from the participating manufacturer

The retailer agrees to buy more product

from the participating manufacturer

Ask the manufacturer

to fund the promotion

Ask the manufacturer

to fund the promotion

In exchange, the

manufacturer agrees to pay

for the promotion

In exchange, the

manufacturer agrees to pay

for the promotion

Create a consumer promotion by

starting with a retailer

Create a consumer promotion by

starting with a retailer

Manufacturer Driven NTRNTRNTR

The participating retailers are asked to buy more product from the

manufacturer

The participating retailers are asked to buy more product from the

manufacturer

In exchange, the manufacturer agrees to pay for the promotion

In exchange, the manufacturer agrees to pay for the promotion

Create a consumer promotion by starting with the manufacturer Create a consumer promotion by starting with the manufacturer

Manufacturer and Alternative FundingManufacturer and Alternative Funding

Co-op & NTRCo-op & NTR