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League/LSCConference Call
Wednesday, March 25, 2009
Agenda
• IIA Vision and Results• Partner Updates
– Ford– GM– Chrysler – Sprint
• Advertising Pool Overview• Q & A
IIA Mission
• To develop and promote exclusive credit union member discounts on products and services offered by American owned corporations to provide a stimulus for stronger financial results for the U.S. economy, increase credit union membership and member satisfaction.– Develop an extensive program with domestic automakers that
generates incremental vehicle purchases and credit union loans– Identify and expand member rewards by partnering with larger
Fortune 1000 companies
IIA Vision
Invest in America is our brand for credit union membership enhancements in order to drive
growth and retention
IIA Results
Objective Metric Program to Date
40 League Participation 40
1000 # CU Opt-Ins 1114
80% % CU membership Opt-Ins 31.8%
400 # of Top 500 CU Opt-Ins 155
75,000 New CU Members TBD
300,000 # CU Loans 48,540
360,000 # Vehicle Sales 56,926
As of 3/23/09
League Support
40 Leagues signed marketing agreement
* Verbal commitment
Alabama Idaho Massachusetts New Hampshire Pennsylvania
Arizona Illinois* Michigan New Jersey Rhode Island
California Indiana Minnesota New York South Carolina
Delaware Iowa* Mississippi North Carolina* South Dakota
Wash. D.C. Kansas Missouri North Dakota Utah
Florida Louisiana Montana Ohio Virginia
Georgia Maine Nebraska Oklahoma Washington
Hawaii Maryland Nevada Oregon West Virginia
Credit Union Support
• Credit Union Support– 1114 Credit unions 30.8 million members (31.8%)
Asset Size # Supporting %
Top 10 5 50%
Top 50 15 30%
Top 100 40 40%
Top 250 94 37.6%
Top 500 155 31.0%
Sales Activity
• Almost 57,000 vehicles sold through February– 18,629 from GM – 38,297 from Chrysler– Vehicle sales from all 50 states
• Members from over 4,000 credit unions
Ford
• Pilot program starting in FL, NY, NJ and MI
• Anticipated start date of July 1
GM
• Supplier pricing will continue through year end• GM Incremental $500 discount
– April 1 – May 31– Credit unions provide
• Marketing support
• .5% rate reduction from current rates
• 60 month or longer loan
– Credit Union participation• 169 credit unions
• 2.9 million members
• Leasing Pilot in NY for the Cadillac CTS
Chrysler
• $1,000 discount through June 30
• Contract extension anticipated through year end
• Credit union level sales data will be available beginning April 1
Sprint
• Sprint membership enhancement program is now under the Invest in America umbrella
• Leverage national exposure to help leagues and credit unions continue to grow and expand the program’s awareness
• Results
– 18 Leagues
– 380 Credit Unions in 26 states
– Over 285,000 Accounts
– Members have saved over $18 million
Sprint League Support
Alabama Michigan New York
Arizona Minnesota Ohio
Arkansas Missouri Pennsylvania
California Nevada Texas
Florida New Jersey Utah
Hawaii New Mexico Washington
18 Leagues Supporting Sprint
Advertising Pool
• As part of the Invest in America program, GM and Chrysler fund a per unit sold incentive to create an ad pool which is divided as follows– 70% consumer advertising– 10% participating leagues– 10% program partners (CUDL, GrooveCar, etc.)– 10% CUcorp
Ad Pool Objectives
• To develop a national media plan for the 70% consumer advertising portion to maximize effectiveness by leveraging funds through one media buy
• To encourage LSCs and Partners to utilize their 10% portion (in conjunction with cooperative advertising budgets) on media
• To encourage use of media by individual credit unions
Ad Pool Strategy
• To best leverage the funds to support Invest in America, develop a tiered media plan at the national, state and local levels– Tier 1 (70%) - National Consumer Advertising– Tier 2 (10%/10%/10%) – State LSC’s/Partners– Tier 3 - Local Individual Credit Unions
Media Objectives
• To build awareness of Invest in America at a national level
• To help drive auto sales and credit union financing
Tier 1Seventy Percent Ad Pool
• The 70% portion of the ad pool is the only portion of the incentive that is required to be spent on consumer advertising
• The contracts require that this advertising must specifically promote GM or Chrysler credit union member discounts at a media weight commensurate with the incentive dollars they place in the pool
• The forecasted $5 million in incentives will be the basis of the media budget for plan development and is anticipated to grow
• As these funds are an incentive from the manufacturers, CUcorp needs to ensure that the plan is objective and well-balanced to benefit all states
Tier 1Seventy Percent Ad Pool
• To develop the most effective and cost efficient plan, CUcorp will develop a national-level media plan
– Media dollars will stretch further and increases negotiating power for value-adds
– Plan will benefit all participating leagues and credit unions
• Based on a $5 million budget, the media plan will most likely by a combination of radio and online advertising
• Media plan must be approved by GM and Chrysler
• The media plan will be presented to all participating LSCs prior to purchasing media
Tier 2LSC’s and Partners
• Participating LSC’s/Partners both receive 10% of the ad pool
• LSC’s have no spending requirements on the 10% incentive
• To further leverage the Invest in America message, CUcorp recommends that LSC’s consider utilizing their incentive, and other advertising funds advertising Invest in America
– As an example, the Michigan Credit Union League has committed its $1.4 million cooperative advertising budget on Invest in America advertising in the state of Michigan
Tier 2LSC’s
• LSC’s IIA Advertising Program
– Use of (2) TV and (4) radio spots that have been produced and available at no cost
– Media planning/buying at discounted commission rate of 12%
– Customized tags available at additional cost
– Funds only used to purchase media in the LSC’s state
Tier 3Individual Credit Unions
• Credit unions should also take advantage of the national campaign by advertising Invest in America in their local markets
• Credit Unions IIA Advertising Program
– Use of TV and radio spots at no cost
– Customized tags available at additional cost
– Media planning/buying at discounted commission rate of 12%
– Funds only used to purchase media in credit union’s local market
– Marketing materials available at no cost in lovemycreditunion.org Partner Center
Q & A