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League/LSC Conference Call Wednesday, March 25, 2009

League/LSC Conference Call Wednesday, March 25, 2009

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Page 1: League/LSC Conference Call Wednesday, March 25, 2009

League/LSCConference Call

Wednesday, March 25, 2009

Page 2: League/LSC Conference Call Wednesday, March 25, 2009

Agenda

• IIA Vision and Results• Partner Updates

– Ford– GM– Chrysler – Sprint

• Advertising Pool Overview• Q & A

Page 3: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 4: League/LSC Conference Call Wednesday, March 25, 2009

IIA Vision

Invest in America is our brand for credit union membership enhancements in order to drive

growth and retention

Page 5: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 6: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 7: League/LSC Conference Call Wednesday, March 25, 2009

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%

Page 8: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 9: League/LSC Conference Call Wednesday, March 25, 2009

Ford

• Pilot program starting in FL, NY, NJ and MI

• Anticipated start date of July 1

Page 10: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 11: League/LSC Conference Call Wednesday, March 25, 2009

Chrysler

• $1,000 discount through June 30

• Contract extension anticipated through year end

• Credit union level sales data will be available beginning April 1

Page 12: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 13: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 14: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 15: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 16: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 17: League/LSC Conference Call Wednesday, March 25, 2009

Media Objectives

• To build awareness of Invest in America at a national level

• To help drive auto sales and credit union financing

Page 18: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 19: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 20: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 21: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 22: League/LSC Conference Call Wednesday, March 25, 2009

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

Page 23: League/LSC Conference Call Wednesday, March 25, 2009

Q & A