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Page2of4 <br /> III Public Relations Release <br /> Direct Mail advertising <br /> Magazine advertising <br /> Web site <br /> The second phase involved a sales video designed to be mailed to consumers <br /> who responded to the company's advertising and PR efforts and to function as the <br /> company's primary sales agent. <br /> • The StepMate web site went live in May of 1999, and has been up and running ever <br /> since at www.steprnate.com. <br /> • The company's Public Relations effort began in May of 1999 with distribution of a <br /> story on StepMate to newspaper editors throughout the country. The StepMate story <br /> was included as one of several on a disk,which is circulated by the North American <br /> Precis Syndicate to newspapers on a regular basis. <br /> • The direct mail effort was sent out in two waves in August and September. <br /> • Magazine advertising for the Brand broke with a 1/3 page 4 color ad in September <br /> issues of Prevention and Arthritis Today magazines. Second and third waves <br /> followed with the October issue of Prevention, and the November/December issue of <br /> Arthritis Today. (Arthritis Today has a bimonthly circulation of 626M and <br /> Prevention a monthly circulation of 3,000M.) <br /> Results achieved as a result of this marketing activity are noteworthy: <br /> • • Over 700 newspapers across the country have run the press release as of mid- <br /> December, 1999. <br /> • By year-end, the company had mailed out nearly 800 copies of the StepMate video <br /> and 45 literature packs. <br /> • Most importantly, by year-end,the company had filled 33 orders for a total of 246 <br /> steps. <br /> Orders have continued into January despite the lack of any new consumer advertising since <br /> November 1. <br /> In the course of marketing the StepMate product and processing the resulting consumer <br /> responses we have also learned a good deal about our target market: <br /> • It is primarily female by more than a 3 to 1 margin <br /> • It is heavily skewed towards 70 and 80 year olds, significantly older than the 50 and <br /> 60 year olds we had anticipated. <br /> • Respondents who view the StepMate video tend to be interested in purchasing the <br /> product by almost a 4 to 1 margin over those who are not. <br /> • The target market we have identified tends to like to see and feel the product before <br /> committing to a purchase. <br /> • The only apparent"barrier" to purchase identified to this point has been price <br /> Alk ($79.95/step.) <br />