The advertising efforts of W4K have been fairly distributed across the three primary distribution channels.  The current efforts have concentrated in the following areas: collateral material (e.g. brochures and flyers), print advertising in the business-to-business yellow pages, various magazines, and an Internet Web site.  In order to increase their sales and better reach their new target channel, W4K would like to increase its advertising exposure by spending more dollars on advertising and targeting the advertisements more towards the discount retail channel.

Several specific actions will be taken.  These actions include participating in cooperative advertising with the major discount retailers, overhauling the current Internet Web site, creating and distributing “shelf talker” displays for the new discount retail locations, and placing an advertisement in the Parent’s Today Magazine.  Cooperative advertising will take the form of W4K product ads placed in the Sunday newspaper supplements produced by the major discount retailers.  An overhaul of the current Web site will reposition W4K as the premier educational and entertainment oriented wooden toy maker.  Shelf talker displays will be attached physically to the shelves containing the product and will serve to catch the attention of shoppers in the new retail locations.  Placing an ad in the Parent’s Today Magazine will create a direct desire in the minds of the end consumer for the product.  This will help move the advertising strategy from one of primarily pushing the product into the hands of retailers (a push strategy) to a blend of push and end consumer desire or pull for the products (a pull strategy).

The advertising budget is currently 1.3% of gross sales.  In the next year this percentage will be increased to 1.4% in order to increase sales through the discount retail channel.  The table below (Advertising) represents the advertising efforts from the past and projections for next year.