H.—3o.

ADVERTISING, PUBLICITY, AND SALES PROMOTION. In last year's report an indication was given that the financial allocation for publicity, advertising, and sales promotion was to be increased to provide additional facilities for widening the distribution of New Zealand dairy-produce in the United Kingdom. The expenditure during the 1937-38 season amounts to £81,259. The aim of the Department is to keep the Dominion's dairy-produce to the forefront in the highly competitive United Kingdom market, to extend the demand for " New Zealand " butter and cheese as such, and to obtain the utmost value and results from the expenditure on advertising, publicity, and sales promotion. The following is a brief record of the methods of publicity adopted and the types of advertising used :—■ Personal Canvas of Retail and Wholesale Grocers. Additional appointments have been made of field representatives, whose duties include the making of regular personal contacts with the retail and wholesale grocers. This work is considered to be of the utmost importance from the point of view of service and advice to distributors and the establishment of good will with the wholesale and retail trade. In addition to their primary duty of pressing the claims of New Zealand dairy-produce, these representatives give advice on the subject of window displays, take all possible steps to see that New Zealand dairy-produce is clearly marked for sale under its own name, and investigate promptly any complaints occurring in their respective territories. By no other means could the necessary service and advice be given, for there is no satisfactory alternative method of maintaining friendly relationships and of providing practical selling support to distributors. The Department's representatives make daily reports 011 their work and on the results of the calls which have been made. Supervising officers maintain close contact with their field representatives, and also keep directly in touch with the larger wholesalers and with public organizations and civic authorities. Very satisfactory results have followed the extension of activity in the personal canvas of the retail and wholesale grocers, and in the near future it is expected that about three-quarters of the entire trade purchasing-power will be personally contacted at least once every three months. Retail-shop Demonstrations. The retail-shop demonstrations are conducted by lady demonstrators, with the co-operation of retailers who desire to establish a sale for New Zealand dairy-produce or to extend their existing sales. The procedure is to install in the retailer's shop one of the Department's power-driven machines, capable of moulding (not wrapping) either \ lb. or lb. of butter. These pats are wrapped by the demonstrator, who tactfully introduces the butter to customers present in the shop in the ordinary course of their purchasing. The necessary New Zealand butter for the purpose is supplied by the retailer, who retains the proceeds of the sales made by the Department's demonstrators. The show is invariably supported by an attractive window and counter display, distribution of leaflets and folders in which the claims of New Zealand dairy-produce are fully set out, and occasionally by the presentation of some inexpensive advertisement novelty to children accompanying their parents. Attractively carried out in every way, these demonstrations have a particularly strong appeal to shops where the weekly trade, or prospects of weekly trade, are substantial. The shows have great practical value, and arc unique in that they present a splendid opportunity of contact simultaneously with both sides of the grocer's counter, giving a first-hand idea of the reaction in that locality to sales advocacy and of the further steps which may be necessary to promote sales. Sales Scheme. A sales scheme, with cash prizes for sales results, has been introduced as a new feature. The plan as yet is little beyond its experimental stage, and has so far been put into operation by only five retail organizations possessing seventy-four, sixty-five, eight, eighty-one, and forty-two branches respectively. These, it may be remarked, are types of retail firms to which the scheme can bo most successfully applied. It depends for its success upon the spirit of friendly competition between branches of the firm operating the scheme as to which can produce definite evidence of the biggest percentage increase in sales of New Zealand butter or cheese upon their basic sales over a continuous period of one month. Cash prizes to winning branches are awarded in ratio to the total number of branches within the scheme. All the necessary display material with which to build up and maintain really attractive window and counter shows is supplied to all branches competing, renewals being available as required ; and from which point onwards it is for the staffs of the branches, and the salesmanship they can bring to bear, to secure for themselves a place amongst the awards. The prize list is arranged in such a way as to provide for the greatest possible number of entrants to receive some reward for their effort. At the end of the month a complete and detailed statement is prepared by the head office of the firm, setting out the actual quantities of New Zealand butter supplied to each shop, with the percentage increase stated against each. Upon this statement the prizes are awarded. Window-display Material. An increasing number of requests are being received from retail grocers for window and counter display material. The material is smartly designed and possesses a practical value apart from its decorative appeal. When a representative calls on a retailer he explains the type of material available, and advises upon its effective use to meet the requirements and circumstances of that particular grocer's business. In addition, grocers are invited through the trade-press advertisements to make

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