marketing promotion plan for auto credit of southern illinois

7/29/2019 Marketing Promotion Plan for Auto Credit of Southern Illinois

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April 23, 2012

Bruner and Associates 1

Final Promotional Plan for Auto Credit of Southern Illinois

Prepared by:

Tyler RossdeutcherMichael IngramBrandi HammerLauren Nelson

Prepared for:

Nic SkovgaardTaylor Motor Company, Marketing Director

Marketing 363

Dr. Gordon Bruner II


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Michael IngramTyler Rossdeutcher

Lauren NelsonBrandi Hammer


Table of Contents

Introduction ..... p. 3 - 5

Business Description ..... p. 3Summary of the Problem ..... p. 3 - 4

S.W.O.T. Analysis ..... p. 4 - 5

General Plan ..... p. 5 - 10

Objective ..... p. 5 - 6

Available Resources ..... p. 6

Evaluative Techniques ..... p. 7

Strategy

Target Market- Demographics ..... p. 7 - 8

Target MarketPsychographics and ..... p. 9 - 10Consumption Habits

Causality ..... p. 11

Substantiality ..... p. 11 - 13

Accessibility ..... p. 1415

Tactile Recommendations .. p. 16 - 24Packaging and Branding .. p. 16 - 19

Public Relations .. p. 19 -21

Personal Selling .. p. 21 - 22

Advertising .. p. 2224

Complete Budget .. p. 24

Summary and Conclusions .. p. 25


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Introduction

Business Description

Auto Credit is a lending firm dealing in high risk loans for used cars. They deal mostly with a

low income, low class, and low education demographic who have had any number of previous

issues leading to a bad credit score. These issues can range from divorce, past defaults and

repossessions, foreclosures, medical problems, etc. The company has offices in Carbondale,

Marion, Benton and Mount Vernon which are currently headquartered in Benton. Auto Credit is

in the process of building a new office in Marion which will be much larger than their other

locations. Their goal is to make the new Marion office their headquarters in the coming months.

Auto Credit deals only in 3 year term loans and always in used cars because of their high risk

demographic. Their customers come to Auto Credit because they cannot obtain a loan from other

dealerships, banks, or credit unions. To compensate for their willingness to take a risk in giving

their high-risk for default customers loans, Auto Credit gives loans with 18-20% interest. They

require three basic terms in order to qualify for a loan: a valid Illinois driver's license, 18 years of

age and must bring home at least $800/month. One single person included in the loan

application must meet all 3 of these requirements to qualify for a loan.

Summary of Problem


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The two basic issues that Auto Credit would like help with are coming up with a new slogan and

planning a sales promotional event which includes a referral program. With the opening of a

new office they would like us to coordinate a promotion that revolves around both a grand

opening which they would like to break into two separate events. Additionally, since Auto

Credit does not have a slogan, it was asked of us to come up with one for them to use on business

card, their website, advertising, etc.

SWOT Analysis

Strengths

Close proximity to demographic Product/service always in demand Selection of over 200+ vehicles company wide One of very few high risk loan offices in Southern Illinois Consistently sell highest quantity of used cars in Southern Illinois Previous sales promotion experience

Weaknesses

Image issues High risk clientele Poor advertising Inconsistant brand (image, signage, etc) No slogan

Opportunities

Improve the image


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Down economy and high unemployment has increased customer base Recent rebranding initiative with St Louis-based company has given detailed geographic

customer market base map and demographic density maps

Increase revenue Increasing referral program numbers

Threats

Moving the home office (organizational issues) Worsening image The proliferation of national "buy-here-pay-here" locations moving into area Loan Defaults Their high risk clientele could theoretically put them out of business

General Plan

Objective

The overall goal is to drive up traffic and draw people to the dealership. We want people to

physically be at the location. We plan on accomplishing this by using attractive incentives for

our target market (food, family entertainment, etc.) and having an effective slogan. We feel that

traffic at the location will lead to customers. Specifically, our goal is to increase the number of

cars sold annually across the four Auto Credit of Southern Illinois locations from 1,614 in FY

2011 to 1,800 by end FY December 31, 2012. That represents an increase of approximately

11.52% or 186 cars company-wide. These numbers have been derived from looking through the


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sales histories of each store location dating back to 2002. Last year Auto Credit had their

strongest year in company history selling a total of 1,614 cars between their 4 stores. Their

highest individual store totals were as follows: Benton, 306 in the year 2006; Marion, 722 in the

year 2011; Mt. Vernon, 412 in the year 2006 (followed by a very close second of 405 in 2011);

Carbondale, 359 in the year 2008. If each one of those store had their best year ever at the same

time we would hit 1,800 cars sold company-wide. This is our goal. Across all 4 locations, in

2010 Auto Credit sold 1516 cars, and in 2011 they sold 1614 vehicles. This is our benchmark.

From 2010-2011 Auto Credit saw a 6% increase in total vehicle (gross #) sold. For us to reach

our goal of 1,800 cars sold, Auto Credit would need to see an 11.52% increase in total vehicles

(gross #) sold from 2011. We will measure the success of our promotion throughout the entire

FY of 2012. Our timeline, then, is the remainder of the 2012 year. More specifically, however,

we plan on having an official slogan by April, and have consistent signage and advertising by the

end of the year. For a graphical representation of the above figures seeAppendix D and E

attached.

Available Resources

We were told to think outside of the box because of the resources available in addition to the

demographic we will be dealing with. The lower income/education demographic allows for more

creativity while planning a sales promotion than it would be for a higher-end dealership because

there are many more things which can draw in traffic. The demographic Auto Credit deals with


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can be drawn by the mere offer of free food, or free entertainment. Dinner and a movie for a

family of 4 can cost $200. The families Auto Credit works with may have trouble make a $200

monthly payment. Auto Credit has had previous sales promotion ideas ranging from free hot

dogs and entertainment at the dealership all the way up to bringing in a monster truck their

Marion location. The end result is that their customer base should come out for offers of free

food or entertainment but the available resource is actually the database of customer names,

addresses, and phone numbers that they would be able to contact as a result of the promotion.

Essentially, it will be up to us to come up with a realistic budget for a high quality promotion for

Auto Credit. Because Auto Credit sells more used vehicles than any other dealership in southern

Illinois, they have cash flow that enables us to even go so far as to have a monster truck demolish

their old Marion office. Auto Credit already has a large promotional budget, and has a recently

created website and numerous TV and radio spots.

Evaluative Techniques

The success of the company for 2012 will be measured by total number of cars sold. Therefore

an accurate measurement of the success of our promotion will be to evaluate the increase in sales

of cars, with our goal being a 10% increase to a total of 1,800. However, this is a longer range

goal, and can more easily be measured in stages. The actual success of the promotion can be

measured by the total number of customers who come to the promotion. We propose Auto Credit

measure the success of the promotion on the amount of people who attend. Traffic counters,


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sign-up sheets, and tickets are all feasible ways to accurately track how many people attend.

Additionally, the number of referrals will be a good indicator of the promotions success.

Strategy

Target Market - Demographics

Our target market first includes Auto Credits signing requirements which are; individuals

making at least $800 per month, have a valid Illinois drivers license and are over the age of 18.

Beyond that a family which makes below $49,999 per year is within Auto Credits demographic.

Furthermore, as seen in figure 1, the red zones show the strongest potential for customer

development. These are high potential areas because of the increased number of people who fit

our target market. We have used tapestry segmentation to locate these hot zones and decide

where to try to pull our potential clients from. Tapestry segmentation classifies U.S.

neighborhoods based on their socioeconomic and demographic compositions (ESRI, 2012).

The tapestry information further allows us to zero in on our specific target market and more

easily define our promotional strategy.

According to data gathered from ESRI, a marketing firm based in St Louis, the target

market in Southern Illinois can be divided up into close to 100 distinct target markets. Of these

groups, we have identified 6 which fit well into our target market. These 6 include our core

segments of Salt of the Earth, Midlife Junction, and Midland Crowd. These three represent


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34,631 people in Southern Illinois which we already successfully reach.Customers in these

groups make up a large percentage of Auto Credits customer base. They represent good loyalty

and opportunity (ESRI, 2012). Continuing to reach this market is key to the success of Auto

Credit as they make up a large portion of Auto Credits sales. The last three constitute our

development segment: Heartland Communities, Rooted Rural, and Home Town. These three

represent 89,899 people which Auto Credit is currently not reaching as well. These last three

make up a significant portion of Auto Credits customers, but also represent areas with

households that have not yet been reached (ESRI, 2012). Focusing on the development segment

while not ignoring the core segments will enable Auto Credit to significantly grow. The key to

this process is finding the similarities within the two groups.

Auto Credit targets those households making a combined income of $49,999 and less

while selling to individuals who make at least $800/month individually. Using data dating back

to 2002 from Auto Credit, we see an alarming disparity in the amount of sales to whites versus

other races. Enabling Auto Credit to bring in the black and Hispanic populations of southern

Illinois while grow their actual customer base without targeting a new market. We will discuss

ways to enable Auto Credit to reach the lower-income black and Hispanic demographics in

addition to the lower-income white demographic which Auto Credit already successfully reaches.


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Target MarketPsychographics and Consumption Habits

From talking with the Director of Marketing at Auto Credit, Nick Skovgaard, and sorting

through data gathered dating back to 2002, we have specified the shopping habits and general

tendencies of our target market. Following are lists of this data. Nick broke it down into 9

different product purchase categories, and the purchasing tendencies of our target market within

those categories.

1. Shoppinga. General Purchasesi. Wal-Mart

ii. Gas Stationsiii. Dollar Stores

b. Groceriesi. Aldis

ii. Save-A-Lotiii. Generic / Off-Brand

Productsiv. Food Pantrysv. Link Program

c. Clothingi. Thrift Shopii. Salvation Army

iii. Other:1. Laundromats

d. Food/Diningi. Fast Food

e. Online Shoppingi. Craigs List

ii. Online Classifiedsf. Rentals

i. Rent Oneii. Rent a Center

2. Communicationa. Track Phonesb. Prepaid Phonesc. Free Wi-Fi at Public Locationsd. Pay Phones

3. Health & Beautya. Health

i. Medicareii. Medicaid

iii. Free/public healthclinics

iv. Bi County HealthDepartment

v. Smokersvi. Young/Single Parents

vii. Poor/No Dental Careb. Hair care

i. Great Clipsii. Sports Clips

4. Entertainment & Newsa. Free/Low Cost Community

Eventsi. Balloon Fest / Color

Festii. Cobden Days

iii. Deer Daysiv. Du Quoin St. Faire (Du

Quoin)v. Hunting & Fishing

Days (JALC)vi. Polish Fest (Du Bouis)

vii. Sunset Concerts(Carbondale)

viii. Vulture Fest (Makanda)b. Sports

i. Huntingii. Fishing

iii. Racing (Nascar/Dragiv. racing)

1. I57 Dragstrip /Mt. VernonRaceway


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c. Newsi. Free Newspapers

ii. Traderiii. Classified Ads

5. Transportationa. Public Transportationb. Taxic. Walkd. Barrow a care. Carpool with Family

6. Education / Schoola. GEDb. Little or No Secondary

Education

c. Free lunch programsd. Kids ride bus to/from school

7. Money / Incomea. Employment

i. 3rd Shift (Overnights)ii. Factory Jobs

1. ContinentalTire

iii. Coal Miningiv. Minimum Wage Jobs

1.

Bar &Restaurant

(Waitress/Cook

s/Bartender)

b. Other Incomei. Link Card

ii. Unemployment Checksiii. Child Supportiv. Medicarev. Medicaid

c. Transactionsi. Prepaid Credit Cards

ii. Money Ordersd. Loans

i. Check it to Cashii. Pawn Shops

iii. Car Title Loansiv. Personal Financev. World Finance

8. Causes for Credit Problemsa. No Credit

i. Ageii. Cash Transactions

b. Bad Crediti.

Divorce (Major Cause)ii. Health Problems

iii. Bankruptcyiv. Repossession of vehiclev. Foreclosure

9. Home Life & Living Arrangementsa. Live with relativeb. Public Housingc. Low Income Housingd. Apartmente. Rough Neighborhoods

f. Trailer Courts / Trailer Parks


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April 24, 2012


Causality

We created our Target Market as lower demographic from information based on the fact that our

clients make less than $49,999 a year. According to the US Census the median household

income from 2006-2010 is $32,169 whereas Illinois is $55,735. Per Capita money income in the

past 12 months was $19,294 and 28.5% of the population lived below poverty level. With these

numbers we are confident in potential customers (U.S. Census Bureau, 2012) .

Substantiality

Above we separated, for purposes of more specifically defining our goal, our target market into

two segments: Core Segments and Development Segments. Our core segment represents the

customers whom we have already reached, whereas the development customer segment

represents customers whom we have identified as fitting with our target market but whom we

have failed to reach. In our core segment we have identified Auto Credit as having successfully

reached 34,631, but have realized that there are 89,899 persons who fit our target market

extremely well that are not being reached. This represents 72% of our potential customer base of

124,530; needless to say a substantial market that needs to be realized (ESRI, 2012).

Figure 1: Tapestry ProfileCore Customer Segments

TapestryDescription

Count Percent Count Market AreaPercent

Index

Salt of the Earth 14, 025 7.4 48 3.4 216Midlife Junction 12, 262 6.5 59 4.2 154Midland Crowd 8, 344 4.4 44 3.1 140

(ESRI, 2012).


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Brandi HammerLauren Nelson

Bruner & Associates 13

Salt of the EarthThe Salt of the Earth segment has a median age of 41.5 years old with

an average household size of 2.6 people. The median household income is $51,080 which is

very close to the national median household income. About half of the people in this segment

live in the Midwest, mostly in Pennsylvania, Ohio, Indiana and Michigan. Eighty-four percent

of the people in this segment are homeowners. These people enjoy hunting, fishing, NASCAR

racing and truck and tractor pulls/mud racing (ESRI, 2012).

Midlife JunctionThe median age for Midlife Junction is 41.5 years old, 20 percent of

which are over the age of 65. About one third of households in this segment receive Social

Security. People in this segment mainly live in suburbs in the Midwest and South. The people

in this segment enjoy fishing, woodworking and reading science-fiction books or romance novels

(ESRI, 2012).

Midland CrowdThe Midland Crowd is approximately 4% of the US population, with a

median age of 37 years old. The median household income is $50,518 and about half of the

people in this segment have attended college but only about 16% have earned a degree above an

associates degree. In general, people in this segment live in rural towns, with a homeownership

rate of approximately 82 percent. People in this segment watch The Speed Channel, HGTV and

CMT (ESRI, 2012).


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Figure 2: Tapestry ProfileDevelopment Customer Segments

Tapestry

Description

Count Percent Count Market Area

Percent

Index

HeartlandCommunities

46, 437 24.4 467 33.2 74

Rooted Rural 32, 127 16.9 248 17.6 96Hometown 11,335 6.0 111 7.9 76

(ESRI, 2012).

Heartland CommunitiesMix of married-couple families, singles who live alone, and

single-parent families; made up of roughly 70% white and 16% black. The median household

income is $33,319 while some families still rely on supplemental income. These households

typically enjoy outdoorsman sports such as fishing and indoors they enjoy mainly courtroom

programs and reality shows. Shopping is mainly done at stores such as Wal-Mart and Kmart

(ESRI, 2012).

Rooted RuralThis segment has a median age of 42.3 years old and the median income

is $38,234. This segment is mainly located in rural areas and three-fifths can be found in the

south. This is a heavy do-it-yourself community and the residents take great pride in homes and

keep busy with home improvements. This segment is heavily involved in fishing, hunting,

horseback riding and attending country music concerts (ESRI, 2012).

HometownThis segment has a median age of 42.4 years. The median household

income is $35,701. This segment is home to roughly six million people around the Midwest and


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south. This segment is heavily invested in their homes and communities. They have a distinctly

country lifestyle which includes hunting and fishing as well as enjoying country music and auto

racing (ESRI, 2012).

Accessibility

1.JerrySpringer

2.Maury

3.JudgeJeanine

4.The B&B

5.SteveWilkos

6.As theWorldTurns

7.Judge Alex

8.Judge JoeBrown

9.DivorceCourt

10.Price isRight

11. JudgeMathis

12.One Life

13.Days of ourLives

14. FamilyFeud

15.Tyra

16.All MyKids

17.Y&R

18.My Wifeand Kids

19.WendyWilliams

20. JudgeJudy

21. PeopleCourt

22.

WhoWants tobe aMillionaire

23.

Cops

24.

GH

25.

GeorgeLopez

26.

Smarterthan a 5thGrader

27.

Insider

28.

King of theHill

29.TheDoctors

30.Dr. Phil

31.MASH

32.Wheel

33.The View

34.InsideEdition

35.Thats 70s

Show

36.Law &

Order

37.South

Park

38.Family

Guy

39.Regis &

Kathy Lee

40.My Name

is Earl

41.Simpsons

42.According

to Jim

(Nielson Inc, 2011).Shown above is a table of the top-42 television shows as rated by Nielson for the

demographic making less than $49,999 per year, per household. Our target market, as said


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previously, can be reached numerous ways. Most of the above listed shows appear on basic

cable, which can be viewed for free. Our target market will tend to seek out entertainment which

is free and accessible. Knowing this, we can pick and choose the networks and individual shows

which we will run commercials for with greater accuracy, in hopes of reaching our target market

more efficiently. In conjunction with television commercials, we plan on running radio spots,

and advertisements in the backs of taxi cabs. Knowing the tendencies of our target market to

seek out cheap entertainment, public transportation, public telephones, Laundromats, etc.; we

will be able to advertise ourselves to them with much greater effectiveness.

Tactical Recommendations

Packaging/Branding

By unifying the updated Auto Credit logo you send a consistent branding image to your

customers which can help display organization within the company. By placing the logo onseveral different items such as air fresheners or pens you display the logo in plain view for many

customers and potential customers to see. In addition, you can give away Auto Credit brandedtote bags at promotional events which will include several Auto Credit branded items ranging

from tire pressure gauges to window shades and T-shirts. By doing this, you increase yourbrands opportunity to be recognized and by keeping a consistent logo across all of these items,

the Auto Credit name will become a stronger brand as a whole. Another way to update the brandimage is to update business cards. The company will have a stronger image if all of these itemshave a modern looking brand and are easily recognizable from one location to the next.

1) Updated Logoa) Use website logo at the Auto Credit Locationsb) Create a common image for customersc) More stability

i) Cost: Roughly $1500ii) From:http://www.signsrus.com/
http://www.signsrus.com/http://www.signsrus.com/http://www.signsrus.com/http://www.signsrus.com/http://www.signsrus.com/http://www.signsrus.com/http://www.signsrus.com/http://www.signsrus.com/


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2) Updated business cardsa) Generate new cards with logo (with company colors)b) include new slogan on each card

i) Cost: $10/250 cardsii)

From: Vista Print

3) Custom License plate covers for each cara) Put Auto Credit at the top of the coverb) Company slogan on bottom or phone # for Auto Credit office

i) Cost: $1528.20 for 1000ii) From: plateframesonline.com

4) Steering wheel covers with Auto Credita) Simply place the Auto Credit trademarked name around a steering wheel cover for each carb) Increases brand awareness for passengers of the leasee

i) Cost: $1,696/100ii) From: pinkcaraccessoriesshop.com

5) Auto Credit Car stickers for their car windowsa) Brand each car through a decalb) Place Auto Credit name at topc) Phone number on bottomd) Website in middle of stickere) Place in rear windshield

i) Cost: #374.99/250ii) From: VistaPrint

6) Auto Credit logo tote bagsa) Brand tote bags for giveawaysb) Place Auto credit logo in middle of the bag for plain viewc) Assortment of colors

i) Cost: $257/100ii) From: Branders.com

7) Antenna Balla) Place Auto Credit Logo on ballb) Plain site while car is parked in publicc) Multiple color options


8) Air Freshenersa) Place Auto Credit logo on each air freshenerb) Place company slogan around ring of the air freshenerc) Assortment of scents



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9) Roll down shadesa) Auto Credit branded sun shadesb) Makes the brand easily visible on the move or in park

i) Cost: $356/50 unitsii) From: Branders.com

10)Exterior Labela) 3-inch permanent labelb) Auto Credit branded for goodc) Small yet noticeabled) Optional colors

i) Cost: Roughly $400/3000 unitsii) From: Branders.com

11)Keychain Key tagsa) Light-weightb) Easier to keep track of keysc) Made from durable Vinyld) Three color choicese) Place small Auto Credit Logo on side Af) Place phone number on opposite side


12)Tire Gaugesa) Place auto Credit brand name down the side of each gaugeb) Useful for all ownersc) Mostly DIY market to increase relevance of productd) All color options work for Auto Credit colors


13)Ice Scrapera) Room for brand name and logo in small fontb) 3.4x2.1 inch in total sizec) Several color scheme options


14)Branded Pensa) Use in office and give to customers after signingb) Spread Brand name

i) Cost: $140/1000ii) From: discountmugs.com


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Packaging and Branding Budget

Updated Logo Covers all redone materials $1500

Updated Business Cards $10/card $2,500(250 cards)

Custom License plate covers $1.53/cover $1,528.20(1,000 cover)Steering wheel covers $16.96/cover $1,696(100 covers)Logo Tote Bags $2.57/bag $257 (100 bags)Antenna Ball $.32/ball $576 (1800 balls)Air Fresheners $.81/item $810 (1000 fresheners)Roll Down Shades $7.12/unit $356 (50 units)Ice Scraper $.39/item $195 (500 scrapers)Pens $.14/pen $140 (1000 pens)Key Chains $.35 $560 (1600 key chains)Total $10,118.20

Public Relations

Auto Credit faces an uphill battle in cleaning their image. The entire industry is oftentimes seenas predatory, and changing this in the minds of potential customers is crucial to any futuresuccess Auto Credit hopes to enjoy. One of the best ways for Auto Credit to change theirappearance in the eyes of the community is to increase their role within the communities theysell. Mt Vernon, Benton, Carbondale and Marion are all larger communities that offer many

opportunities for Auto Credit and its employees to make a difference. Below are our ideas fordoing so, with the entire objective being for Auto Credit to appear less as if it is preying on thelower-income and bad credit population, and more as if it is truly trying to help these individualsget a start by giving them vehicles other dealerships will not. Some of our ideas include AutoCredit sponsoring a team for Up til Dawn or other not-for-profit benefit organizations (Relay forLife, etc.) Auto Credit could participate in Illinois Adopt-A-Highway program and help clean aportion of roads in each of their locations. One of the best ideas offered, is to volunteer as anorganization at a local soup kitchen. By making this a regular thing at the soup kitchens (i.e.Auto Credit Thursdays), Auto Credit will avoid appearing as if they are being predatory intheir practices of targeting lower income individuals, and look great for displaying their effortsof truly caring about these individuals and trying to help them out in many ways. Sponsoring

Little League Teams and hosting fundraisers for grief-stricken cities such as Harrisburg are alsogreat ways for Auto Credit to increase their credibility as an organization which truly cares aboutthe communities in which they operate. As these programs start up, customers which come toAuto Credit can be asked to give a testimonial which will additionally increase their credibilityas a company which truly cares and offers assistance to the lower income communities.


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1) Sponsor a team for Up 'til Dawna) This event helps fundraise to stop Childhood cancerb) Members spend the night awake participating in activities at the SIU rec centerc) Create Auto Credit "Team" and donate on company's behalf

i) Cost: $1,000-5,000 donation if affordableii) From: stjude.org

2) Adopt-A-Highway programa) Have an Auto Credit sponsored section of road/highwayb) Responsible for cleanliness

i) Cost: Variable per road and lengthii) From: dot.il.gov

3)

Grand Opening Eventa) Auto Credit will be opening a new location in Marion within the monthb) Create and event with free food and beveragesc) Possible entertainmentd) Include "tote bags" (see 'Packaging & Branding #6) with other goods from that section

i) Cost: Roughly $600 for food and beveragesii) From: Auto Credit Director of Marketing

4) Customer Testimonialsa) Release first-hand accounts of satisfied customersb) Builds faith in the companyc) Place in website, radio, newspaper and TV

i) Cost: $10-$1000 (newspaper-TV)ii) From: new idea

5) Volunteer at soup kitchens as a company teama) Creates good image for Auto Creditb) The company is socially responsiblec) Brand awareness

i) Cost: Freeii) From: Dosomething.org

6) Fundraising for Harrisburga) Place employees outside Wal-Marts and other stores to collect donationsb) Involve the company in the communityc) Create a better brand image

i) Cost: Freeii) From: New idea


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7) Sponsor a local little league teama) Increase Company Awarenessb) Increase Community Relations

i) Cost: $700ii) From: Richmond Evening Optimist Org.

Public Relations Budget

Sponsor Up til Dawn Donations $3,000

Grand Opening All costs $1,000

Soup Kitchen Volunteer FREE

Fundraising for Harrisburg FREE

Sponsor Little League Team Sponsorship $700

Total $4,700

Personal Selling

Auto Credit will approach its Personal Selling initiatives as opportunities to reach their

customers directly. In sections above Auto Credit will engage in activities that will either

improve their image, or increase awareness of their business. However, in Personal Selling, Auto

Credit will focus on reaching their potential customers directly. They will do this in a few ways.

One of the first ideas is for Auto Credit to pair up with businesses who they share a common

target market with. For instance Auto Credit could pair up with companies like Aldis, Yellow

Cab, Aarons, Rent-One, etc. and advertise at each others locations. Having business cards,

posting signs and specials, as well as posting spots on each others websites are all great ways to

go about this. Advertising on local transportation could also be very effective. Knowing our

target market either doesnt have a car or whose car is not very useful, we can infer that they are

more likely to use taxis, buses, and other means of public transportation. Auto Credit could offer

these companies a stipend for every customer who mentions seeing an Auto Credit sign at their

location. Instituting a referral system is another very effective way for Auto Credit to increase

sales and grow its customer base. By offering current customers cash back and a 100% luck

chance at a raffle prize drawing, Auto Credit would incentivize these customers to tell friends

and others about Auto Credit. One of the best ways to grow sales from current customers andpotentially increase their customer base is to ensure that Auto Credits customers have good

experiences. Follow-up calls and Customer Loyalty plans both achieve this.

1) Pair up with business to advertise at each other's locationsa) Post signs at other businesses in areab) Give business cards to deal out at local establishmentsc) Hold cards/signs of other businesses on our website


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2) Institute a Referral Systema) Customers would get Cash back for every customer who comes in with their referral cardb) Customers could be entered into raffle (100% luck) for each referral for a chance to win prize

i. 3 months payment breakii.

$$ Cash Amountiii. Cost: $300 - $1200

3) Host tent at local Eventsa) State Fair @ Duqoinb) Dirt Track in Benton

i. Cost: $5001,000ii. From:www.siusalukis.com/

4) Follow-Up callsa) Stay in contact with customers, increase feelings of appreciation and caringb) Also increase likelihood company knows where customers are located for potential repossessionsc) Can include Thank Yous to customersi. Cost: normal employee salary

ii. Source: Sound core Project5) Partner with Public Transportation (busses)

a) Pay them a stipend every time a customer says they discovered us vis--vis them.i. Cost: Whatever Auto Credit decided stipend to be ~$150ii. Source: Unique Idea

6) Customer Loyalty Programa) Tickets to Miners, Cardinals, Salukis, etcb) Incentivize customers to keep up on payments

i. Cost: Price of Prize $150300ii. Source: Unique Idea

Personal Selling Budget

Referral System Up to 3 referrals $300($100/referral)

Event Tables 3 events $2,100($700/event)

Customer Loyalty Program $150/reward $600(4 rewards/month)

Total $3,000

Advertising

Radio and television commercials are Auto Credits main form of advertising. They air thesecommercials throughout the Southern Illinois and Northern Kentucky areas. They have a budget of$21,832.70 a month for radio and television ads alone. We agree that radio and television spots are greatways for Auto Credit to gain exposure throughout the day, whether their customers hear their ads while

driving, on the bus on their way to work, or if they are grabbing a drink at the bar after work. Auto Credit
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also has billboards placed throughout the region with the companies Lamar and Mid America. AutoCredit spends $1,650 a month on its billboards However, we have come up a few ideas that could

supplement Auto Credits current advertising projects and potentially reach currently untapped customers.

Auto Credit is able to offer a coupon for a discount on a down payment with the purchase of a new car.This incentivizes the purchase of a new vehicle with the cost being only what Auto Credit chooses tocredit the customer. One of the greatest ways we feel we can grow Auto Credits customer base is byadvertising in places in which our target market finds themselves often.Stores like Aldis, Rent-One,Aarons, Save-A-Lot, etc. offer great advertising potential since our target market shops at these discount

and rent-to-own stores. Our market also doesnt own a quality vehicle. Therefor advertisements placed intaxi cabs represent great potential.To place 10 ads in taxis it would cost $750, and advertisementsplaced in the shopping carts of discount stores would run Auto Credit $800 per month.

1) Billboardsa) Cost: $1,650 per monthb) Source: Party City

2) Radio commercialsa) Cost: ~$3,145/monthb) Auto Credit Balance Sheet

3) Television Commercialsa) Cost: $9431/monthb) Auto Credit Balance Sheet

4) Discount with purchasea) Offer coupon for discount of down payment with purchase of vehicleb) Cost: Depends on choice of Auto Creditc) Source: Unique Idea

5) Ads on/in taxicabsa) Cost: $750 for 10 signsb) Source:http://www.yellowcabsacramento.com/advertising/

6) Ads on Aldi/Save A lot/ etc. shopping cartsa) Auto Creditb) Cost: $800 per monthc) Source: Aldis

Advertising Budget

Billboards 3 Billboards $1,650/month

Radio Commercials $3,145.25/month

Discount with Purchase 2 giveaways/month $1,000
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Taxi Cab Ads 10 signs $750

Shopping Cart Ads $800/month

Television Commercials $9,431/month

Total $16,776.25

Complete Budget

Updated Logo Covers all redone materials $1500Updated Business Cards $10/card $2,500(250 cards)

Custom License plate covers $1.53/cover $1,528.20(1,000 cover)Steering wheel covers $16.96/cover $1,696(100 covers)Logo Tote Bags $2.57/bag $257 (100 bags)Antenna Ball $.32/ball $576 (1800 balls)Air Fresheners $.81/item $810 (1000 fresheners)Roll Down Shades $7.12/unit $356 (50 units)Ice Scraper $.39/item $195 (500 scrapers)Pens $.14/pen $140 (1000 pens)Key Chains $.35/chain $560 (1600 keychains)Sponsor Up til Dawn Donations $3,000Grand Opening All costs $1,000Soup Kitchen Volunteer FREE

Fundraising for Harrisburg FREESponsor Little League Team Sponsorship $700Referral System Up to 3 referrals $300($100/referral)Event Tables 3 events $2,100($700/event)Customer Loyalty Program $150/reward $600(4 rewards/month)Billboards 3 Billboards $1,650/monthRadio Commercials $3,145.25/monthDiscount with Purchase 2 giveaways/month $1,000Taxi Cab Ads 10 signs $750Shopping Cart Ads $800/monthTelevision Commercials $9,431/month

TotalSpending upon demand/request $16,918.20

Spending per month $17,676.25

Grand Total $34,594.45


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Summary and Conclusion

We believe our promotional plan will increase brand equity and awareness for Auto Credit. We

have provided several different graphics describing our target market, how we will reach them,

and the benefits for Auto Credit. Through the course of this project we have pulled together data

and information from both research and Auto Credit itself to narrow in on the specific demands

and issues the business was facing. We will tap several different mediums in which we will

reach our target market

.After working with the director of marketing for Auto Credit, both he

and our group believe our plans will provide substantial market coverage which will increase

sales at all four of Auto Credits locations.


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Works Cited

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"AAA Yellow Cab Company."AAA Yellow Cab Company. Web. 22 Apr. 2012.

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"ALDI - Home Page." Web. 22 Apr. 2012. .

Crigler, S. (2012, April 12). Director, Richmond Evening Optomist. (M. Ingram, Interviewer) Richmond,

IN, United States of America.

"Custom License Plate Frames | Personalized License Plate Frames at PlateFramesOnline.com! -

Custom License Plate Frames | Personalized License Plate Frames at

PlateFramesOnline.com!" Custom License Plate Frames. PlateFramesOnline, 2000. Web.

22 Apr. 2012. .

"Direct Mail Marketing Solutions L Reaching Rural America for Over 20 Years." Direct Mail Marketing

Solutions L Reaching Rural America for Over 20 Years. Web. 22 Apr. 2012.

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"DiscountMugs Email Signup Special Deals Are Sent out Every Week! Only DiscountMugs Offers You

Updated Promo News, Special Offers & Weekly Promotions." Coffee Mugs, Promotional Products, Shot

Glasses, Wine Glasses, Beer Mugs, Tote Bags, Champagne Glasses, Wedding Favors , Sports Bottles, T-

shirts, Promotional Pens, Personalized Glassware. Web. 22 Apr. 2012.

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ESRI. (2012).Tapestry Segmentation. St Louis: ESRI.

Nielson Inc. (2011). Nielson TV Ratings.Top-100 TV Shows for $0-$49,999. Nielson.

"Party Supplies & Decorations." Party Supplies, Halloween Costumes, Birthday Party, Theme Party. Web.

22 Apr. 2012. .

"Pink Car Accessories | Pink Car Seat Covers | Pink Car Floor Mats." Pink Car Accessories.

2012. Web. 22 Apr. 2012. .


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Skovgaard, N. (2012, March 5). Marketing Director, Auto Credit. (B. H. Michael Ingram, Interviewer)

"Take Action in Your Community | Do Something." DoSomething.org. Web. 22 Apr. 2012.

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The World's Largest Online Seller of Promotional Items. Branders.com, 1999. Web. 22 Apr.

2012. .

"Up 'til Dawn." 301 Moved Permanently. Web. 22 Apr. 2012.

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U.S. Census Bureau. (2012, January 31). State and County Quick Facts. Retrieved March 3,

2012, from U.S. Census Bureau: http://quickfacts.census.gov/qfd/states/17/17077.html

marketing promotion plan for auto credit of southern illinois

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