New Mitsubishi Colt ClearTec

Gloucestershire, UK : June 3, 2009 – Mitsubishi has released the first images of its Colt ClearTec, which has been specially wrapped for its forthcoming outing at this year’s Revolve Eco-Rally on Monday 8th June.

The full-vehicle wrap has been specially designed to highlight the funky design of the car, along with the key message that Mitsubishi’s ClearTec environmental technologies make a huge difference to CO₂ emissions and increased MPG without having to compromise on performance at high costs. Read more >>

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It’s a ticklish question for every company. See what your rivals are doing, and then think about what’s going to be effective.

By Steve McKee

One of the questions I’m frequently asked is: “How much should my company spend on marketing and advertising?” It’s a conundrum that vexes many corporate leaders, from emerging entrepreneurs to seasoned CEOs. Unfortunately, instead of seeking a rational answer to the question, many of them just ignore it and hope it will go away.

As a rule, emerging companies focus most of their time and talents on meeting the needs of customers, as well they should. If they don’t take care of the customers they already have, everything else will be academic. Strangely, however, many neglect the function of winning customers in the first place. Others naively assume that if they simply provide excellent products or services, their reputation will precede them. Call it the “build a better mousetrap” syndrome. But the world has too many other things to do with its time than beat a path to your door. That means you need to structure your profit-and-loss statement in such a way that you can profitably allocate a reasonable percentage of your revenue to marketing.
The Big Question: How Much?

While there is no definitive answer as to how much any business should spend on marketing, there are general guidelines any company can use to develop a formula that works for them.

Your first step should be to try to find out what the advertising-to-sales ratio typically is in your field. Public companies in your industry may give a figure for their marketing spending in their financial statements (found in their annual reports). With a simple calculation, you can figure out what percentage of their overall revenue that represents. If you can’t find any public companies that seem similar enough to yours, you might want to start at 5% and then adjust your projected spending up or down based on the size of your market, the cost of media, what you can learn about how much your competitors are spending, and the speed at which you’d like to grow.

You’ll also need to ask yourself if your business is built to leverage volume or to leverage margin. Even within industries, there are substantial differences in the marketing spend of volume-driven companies compared with margin-driven ones. Volume-driven companies tend to spend a tiny percentage of sales on marketing, in part because their large revenues enable small contributions to add up fast, and in part because of the margin pressures they face in having to compete with other high volume companies. By contrast, margin-driven companies tend to spend a larger percentage of sales on marketing: They have room in their margins to afford it, and they’re often working from a smaller revenue base.

The retail industry provides some good examples. While Wal-Mart (WMT) might spend a meager 0.4% of sales on advertising, the sheer size of the company turns that tiny percentage into a significant budget. Wal-Mart’s nominally higher-margin competitor, Target (TGT), spends closer to 2% of its sales on advertising, while Best Buy (BBY), as a specialty retailer, spends upwards of 3%. Finally, more upscale stores like Macy’s typically spend on the order of 5%.

The same kind of ratios can be seen in the car industry (automakers’ generally spend 2.5% to 3.5% of revenue on marketing), liquor (5.5% to 7.5%), packaged goods (4% to 10%), and every other industry.

If you’re in a services business, you might want to bump your starting point higher than 5%. For example, like most professional services firms, my company is more margin-oriented than volume-oriented, so fueling its growth requires that we spend a higher percentage of our revenues. Last year, our number was just over 8%, and I’ve seen companies spend upwards of 15% when warranted—especially young companies that need to invest to build their brand.
Marketing, Not Just Advertising

It’s important to make a qualification here. Giant consumer corporations such as automakers, packaged food manufacturers, and retail chains spend a huge percentage of their marketing dollars on paid media advertising, the most visible (and expensive) tool in the marketing toolbox. Depending on the size of your company and the business you’re in, advertising might not be the right (and certainly not the only) tool for you.

A professional services company like my own is a good case in point. While we serve a national clientele, we are much too small to effectively advertise on a national scale. As a result, we don’t purchase paid media advertising. But we do have an aggressive marketing program built around tactics like direct mail, online marketing and public relations. For a variety of reasons, paid advertising might not be right for your company either, but events, vehicle wraps, point-of-sale displays, or other tactics certainly could be.

The important thing is intentionally and deliberately to set aside some rational percentage of your sales to get out there. That way, the question you have to answer isn’t “How much should we spend?” but rather, “How do we spend most effectively?”

Steve McKee is president of McKee Wallwork Cleveland, a marketing consulting firm that specializes in helping struggling companies rekindle growth. His book, When Growth Stalls: How it Happens, Why You’re Stuck, and What to Do About It, will be available in bookstores in March.

Source

The selected model is the Outback which appears to have a bonnet made of glass, with every engine detail meticulously replicated on a vinyl wrap. Equally startling is the side of the car which shows the engine plus Subaru’s famous symmetrical all-wheel drive system and even the exhaust silencer. More…

Meguiar’s brings its renowned products and history—from its beginnings providing Mirror Glaze polishes and waxes for professional use, to today’s products for those dedicated to maintaining their vehicle’s finish—to 3M’s range of automotive aftermarket products. Meguiar’s products include waxes, polishes, cleaners, conditioners and protectants for the automotive and marine markets.

“The addition of Meguiar’s builds on our professional offering for the automotive industry and brings the expertise of Barry Meguiar in the growing enthusiast market for car-care products,” said Ian Hardgrove, vice president, 3M Automotive Aftermarket Division. “Together, Meguiar’s and 3M will collaborate to deliver even more innovative high-performance products for enthusiasts around the world.”

Car enthusiasts know Meguiar’s not only for its products, but also for its presence at thousands of car shows across the country. Through Meguiar’s internationally syndicated, multimedia broadcasting network, people with a passion for cars can experience major automotive events and the latest collector-car hobby news.

“Combining with 3M will greatly enhance our ability to serve and support ‘Car Crazy’ people on a global basis,” said Barry Meguiar, president and CEO, Meguiar’s Inc. “We are excited about the opportunity to grow our business by joining forces with one of the world’s great global companies and working together to increase our support of the car hobby worldwide.”

3M’s Automotive Aftermarket Division provides a comprehensive line of 3M products for auto body repair professionals and auto enthusiasts. Products include abrasives and accessories, performance cleaning products, waxes, masking tapes, panel bonding adhesives, general adhesives coatings and sealers, paint finishing polishes and compounds, and paint application systems. Complementary acquisitions such as this support 3M’s growth strategy to strengthen its core businesses and expand into adjacent markets.

Meguiar’s is headquartered in Irvine, California, and employs approximately 115 people. The transaction is expected to be completed in the fourth quarter, subject to customary closing conditions, including regulatory approvals.

Sawaya Segalas & Co., LLC acted as exclusive financial advisor to Meguiar’s Inc.

Chosen by 20 out of 24 “Best of Class” winners at the 2008 Pebble Beach Concours d’Elegance, Meguiar’s provides specialized products for every automotive surface, including paint, wheels, tires, and interiors. As part of its support for the car hobby, Meguiar’s sponsors more than 11,000 car shows globally and produces Meguiar’s Car Crazy Television and Radio that represent car enthusiasts worldwide.

A recognized leader in research and development, 3M produces thousands of innovative products for dozens of diverse markets. 3M’s core strength is applying its more than 40 technology platforms, often in combination, to a wide array of customer needs. With $24 billion in sales, 3M employs 79,000 people worldwide and has operations in more than 60 countries. For more information, visit www.3M.com.

Ex-Microsoft business development manager, Jason Alexis, this year decided to wrap up his corporate day job and re-brand his life with a Raccoon vehicle-wrapping outfit. Based in Maidenhead, and servicing the entire Thames Valley region, the 41-year-old invested in his own vehicle-wrapping franchise just in time to show it off at the recent Ideal Business Show in Newbury.

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SkinzWraps, Inc., announced today that it expects a record second quarter for 2008. SkinzWraps is seeing that small business owners, especially those who can’t cut back on driving because their business requires it, want their vehicles to have a promotional function by having them wrapped to brand their business.

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With the pain at the gas pump getting worse every day, what would you do to get your boss to help pay for your gas? Employees at Jobing.com already have the answer to that question: turn your car into a mobile billboard for your employer. The company pays a monthly stipend and covers 100% of employee fuel costs- whether personal or business related. Participating employee vehicles are wrapped with company branded, eye-catching designs; Jobing.com covers all related expenses and adds extra money to employee paychecks for participating.

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The Noblesville Police Department bought nine 2008 Ford Crown Victorias for an estimated cost of $189,900. The vehicles are all black and instead of paying to produce and apply decals with the department’s insignia and “Police” on the doors on both sides, the car doors are being wrapped. The background is white, giving the cars the appearance of being black and white. That can add to the cars’ resale value and make them easier to decommission when the department is done with them.

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