Signtronix Signs-Company Branding on a Budget

LEGISLATION MATTERS By Dr. R. James Claus, Thomas A. Claus and Susan Claus

Branding on a Budget How one small business used signcentric advertising to brand itself

After learning the auto-sales business as an employee, Melvin Tuchez purchased a San Fernando, CA, auto-sales lot and business, Aztec Motors, in 1996. Although three other auto-sales businesses had failed at the same location, Tuchez believed those business failures stemmed from their inferior image, weak management and lack of a vision, not poor location.

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To address the first of these business issues - image - Tuchez improved his new property's appearance. In addition to carefully purchasing and displaying his inventory, he spent $16,000 monthly on select print advertising and on-air media.

In March 1997, a representative from Signtronix called upon Tuchez. While conferring with Tuchez about his business image needs, the representative designed two, on-premise signs. Signtronix then fabricated and shipped these signs to Tuchez within a month.

The on-premise signs' effect was immediately noticeable. Tuchez reports that walk-in traffic increase to a "minimum of 10 new walk-in customers per week, resulting in six additional sales." He adds, "The signs paid for themselves in less than a month and set us apart from the other auto sales companies in the area. I have also reduced my monthly advertising budget to $4,000 per month."

Aztec Motors began using the logo from its new signage on sales materials and promotions, but reduced its monthly advertising budget by 75%. Tuchez says he recouped his capital outlay on the two on-premise signs with 30 days of the investment.

The advertising principle illustrated by this independent auto-sales business is that of "signcentric advertising." (See Legislation Matters: "Birth of s 'Signcentric" Nation," ST, November 1999, page 56.) Franchised businesses benefit from signcentric advertising through an established logo program and varying degrees of standardized regional and/or national advertising. It is a generally accepted rule that to compete with top brands, non-differentiated consumer goods must sell their product for at least 15% less than recognized brands.

Many small businesses do not have the financial ability to develop regional or national "branding" of their business. And cost cutting may not always be an option. It is possible for a small to "brand on a budget."

Developing memory: A higher percentage of memory in the public mind equals a larger share of the market. Where 15% to 25% of a market is annually changing, developing a memory for the good, product or service is critical.

Reinforcing memory: "Recall" is the unaided remembering of a commercial message. Unaided recall typically last for 48 hours. In a commercially competitive society, memory must be reinforced to be retained.

Capturing the impulse: As consumers drive, they often see a sign, stop at that business and buy on impulse. In fact, in many communities, on-premise signs increase business 15% to 25%. McDonald's for instance, sells approximately 60% of its products via drive-through windows.

Influencing buyer selection: Changeable message centers (such as readerboards and electronic message centers) provide incentives for a buyer, as they advertise sales and promotions. Point-of-purchase marketing further influences buyer selections. Wal-Mart reports that in some categories, point-of-purchase marketing can influence up to 85% of the sales made.

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SIGNTRONIX Corporate Office 1445 W. Sepulveda Boulevard Torrance, CA 90509-2901 (800) 729-4853 www.signtronix.com

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