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Distributed Marketing Leadership Series




        Exploding Brand Value
          at the Local Level
 How a good local marketing plan can create exponential value for
corporate investments in brand creation, positioning and messaging.
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1: Power of Brand in Local Buying Decisions . . . . . . . . . . . 5
2: How Community Changes the Brand at the Local Level. . 9
3: What Does It Mean to be Part of a Brand Community? . . 11
4: Who’s in the Driver’s Seat? . . . . . . . . . . . . . . . . . . . . . . 15
5: The Five C’s of a Win-Win Brand Strategy . . . . . . . . . 21
6: Taking Action-Synergy that Explodes Brand Value . . . 27
7: Equally Yoked . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
8: Related Resources . . . . . . . . . . . . . . . . . . . . . . . 31




                                                                                         1
Introduction
Brand marketers invest billions of dollars every year
to create an emotional connection between their
brand and their prospective customers. As media
fragments and customers increasingly engage with
the brand in ways outside the direct control of the
corporate marketer, control of brand positioning and
messaging and the building of emotional connections
with consumers becomes more challenging. When a
distributed marketing network - those organizations
whose success depends on franchise networks, VARs,
dealers, agents or chain store marketers to carry the
national brand message to the local level - is involved,
even more challenges arise. But alongside those
challenges is a large opportunity.

Unlike the marketer who has little or no help
with brand messaging at the point of customer
engagement, the marketer with a distributed network
has an army of brand warriors ready, willing and able
to help deliver and manage marketing messages.
When trained, organized and mobilized, this army of
local marketers can explode brand value at the



                                                           2
local level, creating exponentially more value from
corporate investments in brand creation, positioning
and messaging.

This guide is designed to help you identify the impact
of the local marketer on your brand, then understand
how best to leverage the brand value given your
business model and consumer interaction.




                                                         3
1

     Power of Brand in Local
       Buying Decisions
Brand matters more at the local market level than at
the national or international level. That’s because it’s
at the local level that brand messages become actions
taken by customers and prospects. Actions in the
form of product or service chosen. In money spent. In
loyalty sustained or lost.

Brand value must also often be shared at the local
level. For some brands, such as a quick service
restaurant, the brand message is consistently and
singularly delivered throughout the very standardized
interaction process at the counter or at the drive
through window.

For many marketers, however, the environment is less
controlled. Take an organization that sells through
an authorized dealer network where the product or
service brand must be shared with the name of the
store or service provider. Instead of “York Heating and
AC” as the primary brand, it’s “Dave’s Heating & AC”
– which sells the York brand as part of its business.
Dave needs York and York needs Dave; the brands


                                                           4
must synergistically support each other. Both brands
matter because many local purchase decisions are
made on trust and the relationship to the brand.

If the customer relationship is with Dave’s Heating
& AC because Dave is known to be honest and to
stand behind his work, then consumers will accept
Dave’s recommendation of a product brand. Yet,
some of Dave’s good reputation is based on the York
brand because of the positive experiences his repeat
customers have had with York’s performance and
quality. That being said, it was still Dave’s reputation
- and his magnet on the refrigerator or sticker on the
furnace - that reminded the consumer of where to call.

Conversely, if the consumer relationship is with York,
Dave is just the conduit. The customer knows that
when it is time for a new AC unit, then York is the right
choice, and Dave is the source for that York AC unit.

Finally, there’s certainly the chance that the consumer
had no clue who Dave was or what HVAC brand
to use, but a friend, family member or co-worker
recommended someone he or she trusts for HVAC
work. Based on that recommendation, the consumer
may pick Dave and ultimately end up a York customer
by extension, despite their lack of brand opinion of
either.

That same story can be told a hundred different ways
for a hundred different products or services. In any
local buying decision, two things matter:

  1) the brand of the product or service
  2) the relationship to the branded provider of the        	
    product or service

                                                                5
When these two entities work together, brand value
can absolutely explode at the local level. Even when
the brand of the product or service and the brand
of the local provider is the same, the important
interaction of the two elements still applies.




Who Owns My Brand?
                Full Brand Ownership
 Worksheet #1


                All branding and brand experiences
                originate from within the organization.
                If you own your brand from start to
                finish with a customer, it is much
                easier to control your brand identity
                and explode its value in the local
                marketplace.

                Shared Ownership
                Another organization shares in the
                branding and creation of brand
                experiences. While your challenge is
                a bit tougher, your opportunities are
                greater.




                                                          6
2
          How Community
        Changes the Brand at
           the Local Level
The development of brand communities has
fascinating implications for brand managers. The
growing popularity of Facebook, Twitter, LinkedIn,
blogs and other online communities connects people
in more unique ways than ever before.

Most connections are ultimately driven by a desire
for identity and belonging. People connect to high
school friends they only casually care about. They label
themselves as fans of a sports team for the purpose of
identity. They connect to a peer group that matches
their career expertise. And in coffee shops, pubs,
churches, stadiums, clubs and more, people personally
meet with others who also seek this community. Who
a person is (or perhaps who someone wants to be)
begins to emerge through the pattern of associations.

Interestingly, successful branding is also about identity
and belonging. For years brand marketers have sought
to create cults of dedicated followers who connect
their personal identity with a sense of belonging to
a brand. As an example, look at motorcycle brands.
Harley Davidson has absolutely created a persona.
BMW has too, but it’s an entirely different one. Ever try
to get a Harley guy to ride a Honda Gold Wing? Or a

                                                            7
BMW guy to switch to a Harley? Good luck with that.
It’s not the product. It’s the identity they want.

Some brands have been able to develop community
around their brand at a national or global level.
Starbucks is an excellent example. Everyone knows
someone who will drive five miles past 15 coffee shops
to get to Starbucks. Part of the reason may be the
coffee, but most of it is the desire to be part of the
Starbucks’ identity and community.

Yet it’s important to note that not every brand can
create a community around an identity. Take the earlier
discussion about York, for example. It is unlikely that
York could gain a mass following of brand converts.
On the other hand, as an authorized York dealer,
Dave’s Heating & Cooling could. The consumer can
relate to Dave as the person who rushes over for a
plumbing emergency and shows up on time to service
heating and cooling systems. Maybe Dave provides
value-added advice on how to lower costs. And, Dave
is the one that offers preferred customer discounts on
occassion.

Despite the fact that the brand is so dependent on
product marketing at the local level, York shouldn’t
give up promoting their brand name on a regional
or national level. Rather, York’s marketers just need
to focus their brand efforts to the correct consumer.
If York will help Dave, Dave will eventually connect
his customers to York. So while it’s Dave that the
consumer wants a relationship with, the consumer
feels good about the fact that the equipment Dave
delivers comes from the reliable brand York has
established.


                                                          8
3

          What Does It Mean
         To Be Part of a Brand
             Community?
In a global sense, anyone who has a brand preference
is part of a brand community. Whether the relationship
is active or passive, positive or negative, if it’s constant
then the individual is part of the brand community.
And by becoming part of the brand community in
today’s environment, the person becomes part of the
brand identity; like it or not, the corporate marketer
just added a team member. The Dyson example
below that was recently shared by a Saepio employee
illustrates this point well.


Dyson Loyalty: A Brand Community at Work

    Dyson recently added my wife to its brand
    marketing team. I’m not sure a single friend of
    hers does not know that she’s ecstatic about her
    new vacuum – including over 250 of her Facebook
    “friends” who have even had a chance to see
    pictures of how much disgusting grunge the Dyson
    pulled out of the carpet, that our previous (and
    pretty decent) vacuum had left behind.



                                                               9
Undoubtedly, the next time these friends – who are
   located around the globe – need a vacuum, Dyson
   will surely be on their list. Not based only on my
   wife’s reports, but certainly reinforced by them. I
   know this to be true, because it is precisely how my
   wife came to choose Dyson in the first place.

   When my wife posted on Facebook her frustration
   about her broken vacuum and the need for yet
   another repair, a strong Dyson brand advocate
   jumped in and others followed suit. What’s more,
   when the repair shop technician called with the
   estimate for fixing the old vacuum, the person
   asked, “Why don’t you move up to a Dyson instead?
   You’ll really like it.”The deal was immediately done.
   The brand community had already created the sale -
   without any direct brand marketing.

Every corporate marketer understands the importance
of using new mediums like Facebook to bolster their
team. In many ways, it’s just old fashioned word-of-
mouth marketing on steroids. But now the corporate
manager of a distributed marketing network can
work in tandem with local marketers to enable and
grow brand identity communities in ways never
before imagined by simply creating brand identity
communities where they naturally exist – among users.

For the corporate marketer whose business model
enables control of the brand experience from start to
finish, brand community should primarily be at the
national brand level with limited local support. Quick-

                                                           10
service restaurants (QSRs) are a good example of this.
Most customers likely don’t care which Sonic location
they visit, as long as they can get the cherry limeade
they are craving. It would be frustrating if the only
connection to that limeade was through a single Sonic.

For the corporate marketer who shares brand identity,
like the York dealer example, how the brand identity
community should be engaged depends on a couple
of key factors:

First, the stronger the emotional connection with the
brand, the more direct involvement the corporate
marketer should have. BMW Motorcycles wants
to engage the consumer directly because of the
consumer’s strong connection to the brand.

Second, corporate marketers need to recognize
when the local dealer has the stronger emotional
connection. The York dealer is an example of this.
In these instances, York will be most successful in
their efforts if they focus on making it easy for Dave’s
Heating & AC to become a community resource.
Support from the corporate level makes it easier for
Dave to succeed.

Finally, there are many cases where both corporate
and local marketers will want to engage the consumer.
BMW Motorcycles also provides a good example of
this scenario. While BMW wants customers to stay
connected to ensure repeat bike purchases, the
local BMW dealer wants to be sure they capture that
purchase. They can work to create a brand community
for local riders to connect with other BMW brand


                                                           11
advocates. In this case, BMW’s corporate marketers
should look to both create a direct community and
help the local dealer create his own community locally.

While corporate-level brand communities provide
value through helping develop and leverage brand
advocates, local communities have much greater
potential to initiate engagement that leads to
incremental sales.

Simply stated, developing and sustaining these local
communities is critical to exploding brand value at the
local level.




                                                          12
4

                 Who’s in the
                 Driver’s Seat?
A long-standing challenge for any manager of a
distributed marketing network is who is in the driver’s
seat. The brand may own the consumer’s mind, but
the local marketer owns the customer.

In reality, both have a pretty firm grip on the steering
wheel. Yet to maximize the brand impact in the
local market, it’s important that both parties have a
good understanding of the roles they should play to
optimize effectiveness.

Often, the term “local marketing” has been used to
group a lot of activities into a single collection. On
closer examination, though, consumer interactions
vary widely at different local marketing organizations
and shouldn’t all be considered the same. Saepio has
observed that similar characteristics exist between
organizations which are not necessarily based on 1)
the industry they are in, 2) whether they sell a service
or product or 3) other traditional classifications. Rather,
the similarities between organizations are based on
how they engage customers.



                                                              13
Take food service as an example. Two Saepio clients
within this industry vertical are McDonald’s and
Great Harvest Bread Company. Both seek to gain
a share of their customers’ dining or food budgets,
but each approaches marketing very differently. A
local McDonald’s leans heavily on national branding
and advertising as well as location to drive business.
Great Harvest, on the other hand, seeks to create a
loyal local customer community without the benefit of
heavy corporate brand advertising.

While one could no doubt slice segmentations
even further, review of client-use patterns confirm
that six unique market segments exist within local
or distributed marketing scenarios. As a result, very
different interactions between corporate and local
marketers are needed.

These segments are:

   Loyalty – Frequent Segment
   The local marketer depends on the national brand
   but is largely responsible for developing a loyal
   customer community at the store level. Customers
   make purchases multiple times per year from the
   same location. A strong customer relationship may
   be developed between staff and customers.
   Saepio Client Brand Examples: Great Harvest
   Bread Company, Cartridge World, Curves Fitness

   Loyalty – Infrequent Segment
   The local marketer depends on national brand
   exposure and strives to be part of building a cult
   customer following in association with that brand.
   Purchases typically happen once or less each year
   and loyalty must be maintained during the lulls.
   Saepio Client Brand Examples: BMW
   Motorcycles, H&R Block, HCA

   Convenient Location Segment 	
   The local marketer depends heavily on the national
   brand. Customer loyalty is typically with the

                                                         14
national brand rather than with the local store -
   although in some cases the same store may have
   many interactions each year with the customer.
   That being said, the customer would be just as
   satisfied receiving the service from another of the
   brand’s locations.
   Saepio Client Brand Examples: McDonalds,
   Carlson Hotels, Valvoline Instant Oil Change,
   Chevron

   Retail Assist Segment
   The local marketer is not focused on the national
   brand but views it as a complement to its primary
   brand (the store or business) that generates the
   customer traffic and garners loyalty.
   Saepio Client Brand Examples: Burt’s Bees, HBO,
   Hill’s Pet Nutrition, GM ACDelco

   Community Development Segment
   The local marketer is focused on building
   community around a brand concept or theme.
   There is often no product, per se, but human
   association or connection to an activity or cause.
   Saepio Client Brand Examples: Boy Scouts,
   Easter Seals, Salvation Army

   Sales Assist Segment
   The local marketer needs to develop custom
   proposals to aid in sales activities.
   Saepio Client Brand Examples: Johnson &
   Johnson medical devices, Motorola

Understanding which of these different local marketing
segmentations your organization fits within will
go a long way toward creating the strong, logical
engagement with local marketers that is needed to
explode brand value at the local level. The worksheet
on page 18 provides guidelines for identifying which
segment your organization fits within and, based
on that segment, what your approach to distributed
marketing should be.


                                                         15
Identify Your Segment
Worksheet #2   Consider the following questions to identify who
               is in the driver’s seat and how best to build
               or expand upon your brand’s community.

               Q1. Where do customers purchase my product?
                     a) company-branded outlet
                     b) another company’s branded outlet

               Q2. What is the purchase frequency?
                     a) Several times per year or more
                     b) Yearly or less

               Q3. Is the customer relationship tied to a
                   specific store location?
                        a) Yes – customers feel a connection to a single location
                        b) No – my locations are generally interchangable
                               to customers




                                                                                    16
If you answered “A” to all three questions, your organization likely fits
into the “Loyalty Frequent” segment. A shared approach is needed
since the specific location is important to the consumer. Marketing
should allow for a greater amount of local customization. This is
sometimes more challenging than other segments, but there is much
room for rewards.

If you answered “A” to Q1 and Q2, and “B” for Q3, your organization
likely fits into the “Convenient Location”segment. You largely own your
own brand. Best results occur when messages are made relevant to the
local market, but unified and consistent brand marketing between national
and local marketers is key.

If you answered “B” to to Q1, but sell goods or services, your
organization will likely fit into the “Retail Assist” segment. This segment
is most centered on the local marketer. Your brand can derive the most
value by providing easy-to-use, valuable tools that locations who sell
your products and services can use to promote your business – and theirs.

Most organizations will fit into one of the above models. If the above
doesn’t apply, consider whether one of these may be more accurate for you:

      Community Development A shared approach to branding will help
      create a community of individuals who believe in the national
      brand/cause, but at the local level. Localization is often critical to
      effectively share the impact within the local community.

      Sales Assist Distributed marketers require a way to create sales
      proposals and other items. These often may include required
      regulatory information, so a database-driven approach can help
      ensure compliance. Tools need to be easy-to-use.




                                                                               17
5

        The Five C’s of a
     Win-Win Brand Strategy
Managers of distributed marketing networks have long
been challenged with keeping corporate and local
marketing messages aligned and working together. At
the root of the challenge is the fact that there are often
legitimate reasons for a disconnect.

While corporate marketers are very brand focused,
local marketers are all about driving traffic and making
sales. These two perspectives can easily collide, with
the result being less-than-effective marketing. But it
doesn’t have to be that way. Employing five “C’s” to
the distributed marketing process can go a long way
towards making a brand hum at the local level.

  Common Objectives
  While it may seem logical that one would begin any
  marketing effort with common objectives already
  established, Saepio client service managers too
  often observes the opposite.

  Corporate marketers and local marketers simply
  think differently, each protecting their own turf. They
  do so for a good reason. The corporate marketer
  who manages the distributed marketing network
  is the keeper of the brand and brand messages
  for that network. S/he must constantly focus on
  corporate brand objectives and deliver those to –

                                                             18
and then through – the local marketer. The local
marketer is often not on that same page. Store
traffic and a ringing register is paramount and, if
the marketing message isn’t perceived as focused
solely on generating sales, the local individual likely
isn’t interested. They like the support but insist that
it be relevant to their operation.

However, these different perspectives in no way
preclude the formation of common objectives.
They just require the corporate marketer to, as
best-selling author Stephen Covey would say, “seek
first to understand and then to be understood.”
Listening to the needs of the local marketer and
gleaning knowledge from the school of practical
application via those on the front lines enables the
corporate marketer to identify common objectives
and create campaigns that truly support them.

Consistent Messages
Understanding the importance of delivering
consistent messages across the entire distributed
marketing network is easy for many marketers.
Doing so is more challenging.

Consistent messaging to consumers begins with
effective resources for local marketers. While a
local marketer will often want to advertise using
a national message, s/he also frequently wants to
somehow alter the corporate message to make it
more applicable for his or her local environment.
It is key for the corporate marketer to provide
resources that ensure consistent messaging but
allow some local flexibility. Distributed marketing
management systems that include marketing asset
management technology are an excellent starting
point. These solutions provide all of the marketing
resources the local marketer needs in one, easy-to-

                                                          19
access location. As long as the corporate marketer
is diligent in keeping the library of resources current,
messages across the distributed marketing network
will stay consistent.

Coordinated Message Delivery
Just as consistent messaging is important,
coordinated timing of delivery is also critical. When
a local marketer’s messages are timed to coordinate
with national messages, investments in marketing
can be optimized.

At the heart of successful coordination is
successful communication. And that means
two-way communication. Often coordinated
message delivery is dependent upon one-way
communication and a great deal of hope. In this
scenario, corporate develops a merchandizing kit
containing marketing materials and sends it to
the local market with the hope that it will be used
properly, if at all.

Local marketers want to be successful and want the
benefits of the resources the corporate marketer
provides, but their worlds don’t revolve around
what corporate marketing is doing. They are
focused on what they can do to drive traffic and
view their corporate partners as a helpful ingredient
of that plan. When the marketing kit arrives for
a coordinated campaign, it may or may not
receive the priority the corporate marketer seeks.
What happens is dependent upon how effective
communication has been up to that point.

While it takes more work, engaging communication
between corporate and local marketers is vital
to coordinated message delivery. When local
marketers know which message is recommended

                                                           20
How Well Have I
      Implemented the 5 C’s?
           Consider the questions below.
Worksheet #3

           Common Objectives:
           Can you clearly describe both perspectives and the reasons
           for these in your organization?

           Corporate:______________________________________________
           Local:___________________________________________________

           What are the common objectives for your organization’s
           marketing?

           Consistency in Messaging:
           Why do my company’s distributed marketers want and need
           local brand messaging that is different than national messaging?
           ________________________________________________________
           ________________________________________________________

           What systems and/or workflows are in place to encourage
           distributed marketers to localize materials while retaining
           important brand messaging and other graphic elements?
           ________________________________________________________
           ________________________________________________________

           Coordinated Message Delivery:
           Do we have time-dependent campaigns that distributed
           marketers must implement? If so, have we made it easy for them
           to complete the tasks necessary? Have we been clear about how
           the campaign and the precise timing can help local success?

           Cooperative Customer Management
           What are the possible places where a unified customer
           management strategy is needed?

           Communication:
           Have I taken the time to truly understand the local marketer in the
           context of their business rather than in terms of what corporate
           believes they should be doing? What does the local marketer
           need from me in order to successfully complete the shared brand
           objectives in a consistent and coordinated manner?


                                                                                 21
and why; what’s in it for them; and what is expected
as part of a campaign, coordinated messaging
naturally follows.

Cooperative Customer Management
Brands only hum when customers hum in harmony
with them. The brand exists to create an emotional
connection with the customer, to establish and to
grow a relationship. That doesn’t happen without
a corporate role and can’t be sustained without a
local one.

For a brand to hum, the experience a customer
or prospect has through national brand messages
– coupled with the experience they have upon
entering a local retail outlet or interacting with a
branded product or service – must be completely
harmonious. The local marketer is critical to
this process. Store décor, in-store promotions,
digital signage, merchandise bags and many
other physical items all contribute to the brand
experience. So, too, do the personal interactions
that happen in the store.

While corporate marketers can’t always control
customer management, they should always consider
it when creating local options for national brand
messaging. One cannot assume that a local marketer
or local sales associate will be able to provide a
continuous brand experience for the customer
without being coached on how to do so. Often,
adding this “last mile” of instruction adds little time
to campaign development but can make a huge
difference in the effectiveness of that campaign.




                                                          22
Communication, Communication, Communication

        Any successful relationship starts with listening,
        including that between the corporate and the
        local marketer.

  You simply can’t over communicate with a
  local marketer yet you most assuredly can over
  communicate to one. Remember, effective
  communication is a dialogue.

  A nationally renowned speaker told 80,000 people
  who came to hear him talk about relationships that
  he really didn’t have anything to say, just one thing
  to show. With that he pulled out a giant ear and
  held it up. He didn’t need to say another word to
  make his point.

   • Communicate what’s important to your brand 	
     by first listening to how it’s important to your 	
     local marketer.

   • Communicate what you need them to do by first 	
     listening to what they need you to do.

   • Communicate what resources you’ve made 		
     available to them by listening to what they need 	
     those resources to be.

There they are. The five C’s for making your brand
hum at the local level. There’s nothing magical about
them. We’d love to call them profound, but they’re
simply applications of the sixth C … common sense.
Yet too few apply them well, and as a result, too few
see their brand really hum at the local level.




                                                             23
6
          Taking Action -
       Synergy that Explodes
           Brand Value
A lot of factors combine to create an organization where
brand value explodes at the local level. Many programs
have been tried through the years. Carrots to entice
compliance. Sticks to enforce it. These approaches
seldom work.

The programs that do work are those developed by
individuals who truly understand and foster a meaningful
partnership between corporate and local marketers.
A partnership where goals and messages align,
where programs are logical and where each side fully
participates in design and execution.

Distributed Marketing Management systems that enable
these processes are the cornerstone to success. Often
called Marketing Asset Management or Local Marketing
Management technology, these platforms help organize
and execute every aspect of a local marketing program.
While it is possible to run a program that maximizes
brand value without such a system, it is highly unlikely,
exponentially more difficult and normally much more
expensive. Look for a system that delivers much more
than just ad builder functionality.


                                                            24
While ad builder is a helpful tool, for full synergy
and maximum value, seek instead a comprehensive
platform such as Saepio’s Marketing Asset Manager
that helps create a strong, logical synergy between
you and your local marketers. These tools accomplish
this by providing the marketing assets that distributed
marketers really need in an easy-to-use and always
updated environment, thereby removing the need for
a carrot or stick.




                                                          25
7

                Equally Yoked
Perhaps the best illustration for the optimal relationship
between corporate and local marketers comes from the
world of pre-machinery agriculture. When oxen were
used to plow the soil or pull a wagon, it was important
to choose two beasts of similar strength. Too much pull
from one versus the other and keeping a straight plow
line was close to impossible.

Saepio encourages corporate and local marketers to
seek a similar relationship to ensure peak performance.
Too much corporate and the local marketer tunes out.
Too much local and the corporate brand message is
diluted. Don’t give up until you find the perfect balance
for your organization.

Exploding brand value at the local level isn’t necessarily
easy but it is absolutely possible. Saepio hopes
this guidebook has provided insight that will help
your organization join those whose local marketing
programs are humming along.




                                                             26
Related Resources
Visit the Distributed Marketing Leadership Series site
(http://info.saepio.com/distributed-marketing-leadership-series) for
access to the following case study documents. Each example will
outline how the company has utilized Saepio’s distributed marketing
tools to explode the value of the brand.

     • Loyalty – Frequent Segment
         Cartridge World
         Curves Fitness

     • Loyalty – Infrequent Segment
         BMW Motorcycles

     • Convenient Location Segment 	
         SONIC

     • Retail Assist Segment
         GM ACDelco

     • Community Development Segment
         Easter Seals




                                                                       27
About Saepio

  Saepio makes it easy for corporate and local marketers to
 build and run effective and engaging all-channel marketing
                          campaigns.

 Saepio’s powerful MarketPort marketing platform starts with
                             easy …
  •Easy to Build and Run a Cross-channel Campaign because
     everything – email, landing pages, social, mobile, digital
banner ads, signage, print ads, direct mail, and much more – is
all managed in a single, integrated digital marketing platform.
   •Easy to Maximize Brand Value at the Local Level because
   local and corporate marketers share a single platform but
experience the same platform differently based on their roles.
Brand control, speed to market, and content localization is all
easily accomplished whether messages are for local, national
or global audiences and corporate marketers can easily assign
                campaign tasks to local marketers.
     •Easy to Engage Customers with personalized, relevant
messages because corporate intelligence gleaned from CRM
   data, customer analytics, consumer actions and more can
   determine what content is served when, where and how.
    •Easy to Automate Marketing Fulfillment because robust
 workflow enables every cross channel customer touch point
   to happen automatically whether launched by corporate
    marketing, initiated by a local marketer or triggered by a
                        customer’s action.

                                                                  28
This robust yet simplified approach to today’s complex marketing
       challenges is in use at hundreds of leading companies and
organizations, including many of the world’s most powerful brands. It is
 transforming the way corporations focus and manage their marketing
efforts in a world that introduces new channels, new competitors, new
             regulations and new opportunities at every turn.



                      For more information, visit
                           www.saepio.com
                       or call +1 816-777-2100.

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Exploding Brand Value at the Local Level

  • 1. Distributed Marketing Leadership Series Exploding Brand Value at the Local Level How a good local marketing plan can create exponential value for corporate investments in brand creation, positioning and messaging.
  • 2. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1: Power of Brand in Local Buying Decisions . . . . . . . . . . . 5 2: How Community Changes the Brand at the Local Level. . 9 3: What Does It Mean to be Part of a Brand Community? . . 11 4: Who’s in the Driver’s Seat? . . . . . . . . . . . . . . . . . . . . . . 15 5: The Five C’s of a Win-Win Brand Strategy . . . . . . . . . 21 6: Taking Action-Synergy that Explodes Brand Value . . . 27 7: Equally Yoked . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 8: Related Resources . . . . . . . . . . . . . . . . . . . . . . . 31 1
  • 3. Introduction Brand marketers invest billions of dollars every year to create an emotional connection between their brand and their prospective customers. As media fragments and customers increasingly engage with the brand in ways outside the direct control of the corporate marketer, control of brand positioning and messaging and the building of emotional connections with consumers becomes more challenging. When a distributed marketing network - those organizations whose success depends on franchise networks, VARs, dealers, agents or chain store marketers to carry the national brand message to the local level - is involved, even more challenges arise. But alongside those challenges is a large opportunity. Unlike the marketer who has little or no help with brand messaging at the point of customer engagement, the marketer with a distributed network has an army of brand warriors ready, willing and able to help deliver and manage marketing messages. When trained, organized and mobilized, this army of local marketers can explode brand value at the 2
  • 4. local level, creating exponentially more value from corporate investments in brand creation, positioning and messaging. This guide is designed to help you identify the impact of the local marketer on your brand, then understand how best to leverage the brand value given your business model and consumer interaction. 3
  • 5. 1 Power of Brand in Local Buying Decisions Brand matters more at the local market level than at the national or international level. That’s because it’s at the local level that brand messages become actions taken by customers and prospects. Actions in the form of product or service chosen. In money spent. In loyalty sustained or lost. Brand value must also often be shared at the local level. For some brands, such as a quick service restaurant, the brand message is consistently and singularly delivered throughout the very standardized interaction process at the counter or at the drive through window. For many marketers, however, the environment is less controlled. Take an organization that sells through an authorized dealer network where the product or service brand must be shared with the name of the store or service provider. Instead of “York Heating and AC” as the primary brand, it’s “Dave’s Heating & AC” – which sells the York brand as part of its business. Dave needs York and York needs Dave; the brands 4
  • 6. must synergistically support each other. Both brands matter because many local purchase decisions are made on trust and the relationship to the brand. If the customer relationship is with Dave’s Heating & AC because Dave is known to be honest and to stand behind his work, then consumers will accept Dave’s recommendation of a product brand. Yet, some of Dave’s good reputation is based on the York brand because of the positive experiences his repeat customers have had with York’s performance and quality. That being said, it was still Dave’s reputation - and his magnet on the refrigerator or sticker on the furnace - that reminded the consumer of where to call. Conversely, if the consumer relationship is with York, Dave is just the conduit. The customer knows that when it is time for a new AC unit, then York is the right choice, and Dave is the source for that York AC unit. Finally, there’s certainly the chance that the consumer had no clue who Dave was or what HVAC brand to use, but a friend, family member or co-worker recommended someone he or she trusts for HVAC work. Based on that recommendation, the consumer may pick Dave and ultimately end up a York customer by extension, despite their lack of brand opinion of either. That same story can be told a hundred different ways for a hundred different products or services. In any local buying decision, two things matter: 1) the brand of the product or service 2) the relationship to the branded provider of the product or service 5
  • 7. When these two entities work together, brand value can absolutely explode at the local level. Even when the brand of the product or service and the brand of the local provider is the same, the important interaction of the two elements still applies. Who Owns My Brand? Full Brand Ownership Worksheet #1 All branding and brand experiences originate from within the organization. If you own your brand from start to finish with a customer, it is much easier to control your brand identity and explode its value in the local marketplace. Shared Ownership Another organization shares in the branding and creation of brand experiences. While your challenge is a bit tougher, your opportunities are greater. 6
  • 8. 2 How Community Changes the Brand at the Local Level The development of brand communities has fascinating implications for brand managers. The growing popularity of Facebook, Twitter, LinkedIn, blogs and other online communities connects people in more unique ways than ever before. Most connections are ultimately driven by a desire for identity and belonging. People connect to high school friends they only casually care about. They label themselves as fans of a sports team for the purpose of identity. They connect to a peer group that matches their career expertise. And in coffee shops, pubs, churches, stadiums, clubs and more, people personally meet with others who also seek this community. Who a person is (or perhaps who someone wants to be) begins to emerge through the pattern of associations. Interestingly, successful branding is also about identity and belonging. For years brand marketers have sought to create cults of dedicated followers who connect their personal identity with a sense of belonging to a brand. As an example, look at motorcycle brands. Harley Davidson has absolutely created a persona. BMW has too, but it’s an entirely different one. Ever try to get a Harley guy to ride a Honda Gold Wing? Or a 7
  • 9. BMW guy to switch to a Harley? Good luck with that. It’s not the product. It’s the identity they want. Some brands have been able to develop community around their brand at a national or global level. Starbucks is an excellent example. Everyone knows someone who will drive five miles past 15 coffee shops to get to Starbucks. Part of the reason may be the coffee, but most of it is the desire to be part of the Starbucks’ identity and community. Yet it’s important to note that not every brand can create a community around an identity. Take the earlier discussion about York, for example. It is unlikely that York could gain a mass following of brand converts. On the other hand, as an authorized York dealer, Dave’s Heating & Cooling could. The consumer can relate to Dave as the person who rushes over for a plumbing emergency and shows up on time to service heating and cooling systems. Maybe Dave provides value-added advice on how to lower costs. And, Dave is the one that offers preferred customer discounts on occassion. Despite the fact that the brand is so dependent on product marketing at the local level, York shouldn’t give up promoting their brand name on a regional or national level. Rather, York’s marketers just need to focus their brand efforts to the correct consumer. If York will help Dave, Dave will eventually connect his customers to York. So while it’s Dave that the consumer wants a relationship with, the consumer feels good about the fact that the equipment Dave delivers comes from the reliable brand York has established. 8
  • 10. 3 What Does It Mean To Be Part of a Brand Community? In a global sense, anyone who has a brand preference is part of a brand community. Whether the relationship is active or passive, positive or negative, if it’s constant then the individual is part of the brand community. And by becoming part of the brand community in today’s environment, the person becomes part of the brand identity; like it or not, the corporate marketer just added a team member. The Dyson example below that was recently shared by a Saepio employee illustrates this point well. Dyson Loyalty: A Brand Community at Work Dyson recently added my wife to its brand marketing team. I’m not sure a single friend of hers does not know that she’s ecstatic about her new vacuum – including over 250 of her Facebook “friends” who have even had a chance to see pictures of how much disgusting grunge the Dyson pulled out of the carpet, that our previous (and pretty decent) vacuum had left behind. 9
  • 11. Undoubtedly, the next time these friends – who are located around the globe – need a vacuum, Dyson will surely be on their list. Not based only on my wife’s reports, but certainly reinforced by them. I know this to be true, because it is precisely how my wife came to choose Dyson in the first place. When my wife posted on Facebook her frustration about her broken vacuum and the need for yet another repair, a strong Dyson brand advocate jumped in and others followed suit. What’s more, when the repair shop technician called with the estimate for fixing the old vacuum, the person asked, “Why don’t you move up to a Dyson instead? You’ll really like it.”The deal was immediately done. The brand community had already created the sale - without any direct brand marketing. Every corporate marketer understands the importance of using new mediums like Facebook to bolster their team. In many ways, it’s just old fashioned word-of- mouth marketing on steroids. But now the corporate manager of a distributed marketing network can work in tandem with local marketers to enable and grow brand identity communities in ways never before imagined by simply creating brand identity communities where they naturally exist – among users. For the corporate marketer whose business model enables control of the brand experience from start to finish, brand community should primarily be at the national brand level with limited local support. Quick- 10
  • 12. service restaurants (QSRs) are a good example of this. Most customers likely don’t care which Sonic location they visit, as long as they can get the cherry limeade they are craving. It would be frustrating if the only connection to that limeade was through a single Sonic. For the corporate marketer who shares brand identity, like the York dealer example, how the brand identity community should be engaged depends on a couple of key factors: First, the stronger the emotional connection with the brand, the more direct involvement the corporate marketer should have. BMW Motorcycles wants to engage the consumer directly because of the consumer’s strong connection to the brand. Second, corporate marketers need to recognize when the local dealer has the stronger emotional connection. The York dealer is an example of this. In these instances, York will be most successful in their efforts if they focus on making it easy for Dave’s Heating & AC to become a community resource. Support from the corporate level makes it easier for Dave to succeed. Finally, there are many cases where both corporate and local marketers will want to engage the consumer. BMW Motorcycles also provides a good example of this scenario. While BMW wants customers to stay connected to ensure repeat bike purchases, the local BMW dealer wants to be sure they capture that purchase. They can work to create a brand community for local riders to connect with other BMW brand 11
  • 13. advocates. In this case, BMW’s corporate marketers should look to both create a direct community and help the local dealer create his own community locally. While corporate-level brand communities provide value through helping develop and leverage brand advocates, local communities have much greater potential to initiate engagement that leads to incremental sales. Simply stated, developing and sustaining these local communities is critical to exploding brand value at the local level. 12
  • 14. 4 Who’s in the Driver’s Seat? A long-standing challenge for any manager of a distributed marketing network is who is in the driver’s seat. The brand may own the consumer’s mind, but the local marketer owns the customer. In reality, both have a pretty firm grip on the steering wheel. Yet to maximize the brand impact in the local market, it’s important that both parties have a good understanding of the roles they should play to optimize effectiveness. Often, the term “local marketing” has been used to group a lot of activities into a single collection. On closer examination, though, consumer interactions vary widely at different local marketing organizations and shouldn’t all be considered the same. Saepio has observed that similar characteristics exist between organizations which are not necessarily based on 1) the industry they are in, 2) whether they sell a service or product or 3) other traditional classifications. Rather, the similarities between organizations are based on how they engage customers. 13
  • 15. Take food service as an example. Two Saepio clients within this industry vertical are McDonald’s and Great Harvest Bread Company. Both seek to gain a share of their customers’ dining or food budgets, but each approaches marketing very differently. A local McDonald’s leans heavily on national branding and advertising as well as location to drive business. Great Harvest, on the other hand, seeks to create a loyal local customer community without the benefit of heavy corporate brand advertising. While one could no doubt slice segmentations even further, review of client-use patterns confirm that six unique market segments exist within local or distributed marketing scenarios. As a result, very different interactions between corporate and local marketers are needed. These segments are: Loyalty – Frequent Segment The local marketer depends on the national brand but is largely responsible for developing a loyal customer community at the store level. Customers make purchases multiple times per year from the same location. A strong customer relationship may be developed between staff and customers. Saepio Client Brand Examples: Great Harvest Bread Company, Cartridge World, Curves Fitness Loyalty – Infrequent Segment The local marketer depends on national brand exposure and strives to be part of building a cult customer following in association with that brand. Purchases typically happen once or less each year and loyalty must be maintained during the lulls. Saepio Client Brand Examples: BMW Motorcycles, H&R Block, HCA Convenient Location Segment The local marketer depends heavily on the national brand. Customer loyalty is typically with the 14
  • 16. national brand rather than with the local store - although in some cases the same store may have many interactions each year with the customer. That being said, the customer would be just as satisfied receiving the service from another of the brand’s locations. Saepio Client Brand Examples: McDonalds, Carlson Hotels, Valvoline Instant Oil Change, Chevron Retail Assist Segment The local marketer is not focused on the national brand but views it as a complement to its primary brand (the store or business) that generates the customer traffic and garners loyalty. Saepio Client Brand Examples: Burt’s Bees, HBO, Hill’s Pet Nutrition, GM ACDelco Community Development Segment The local marketer is focused on building community around a brand concept or theme. There is often no product, per se, but human association or connection to an activity or cause. Saepio Client Brand Examples: Boy Scouts, Easter Seals, Salvation Army Sales Assist Segment The local marketer needs to develop custom proposals to aid in sales activities. Saepio Client Brand Examples: Johnson & Johnson medical devices, Motorola Understanding which of these different local marketing segmentations your organization fits within will go a long way toward creating the strong, logical engagement with local marketers that is needed to explode brand value at the local level. The worksheet on page 18 provides guidelines for identifying which segment your organization fits within and, based on that segment, what your approach to distributed marketing should be. 15
  • 17. Identify Your Segment Worksheet #2 Consider the following questions to identify who is in the driver’s seat and how best to build or expand upon your brand’s community. Q1. Where do customers purchase my product? a) company-branded outlet b) another company’s branded outlet Q2. What is the purchase frequency? a) Several times per year or more b) Yearly or less Q3. Is the customer relationship tied to a specific store location? a) Yes – customers feel a connection to a single location b) No – my locations are generally interchangable to customers 16
  • 18. If you answered “A” to all three questions, your organization likely fits into the “Loyalty Frequent” segment. A shared approach is needed since the specific location is important to the consumer. Marketing should allow for a greater amount of local customization. This is sometimes more challenging than other segments, but there is much room for rewards. If you answered “A” to Q1 and Q2, and “B” for Q3, your organization likely fits into the “Convenient Location”segment. You largely own your own brand. Best results occur when messages are made relevant to the local market, but unified and consistent brand marketing between national and local marketers is key. If you answered “B” to to Q1, but sell goods or services, your organization will likely fit into the “Retail Assist” segment. This segment is most centered on the local marketer. Your brand can derive the most value by providing easy-to-use, valuable tools that locations who sell your products and services can use to promote your business – and theirs. Most organizations will fit into one of the above models. If the above doesn’t apply, consider whether one of these may be more accurate for you: Community Development A shared approach to branding will help create a community of individuals who believe in the national brand/cause, but at the local level. Localization is often critical to effectively share the impact within the local community. Sales Assist Distributed marketers require a way to create sales proposals and other items. These often may include required regulatory information, so a database-driven approach can help ensure compliance. Tools need to be easy-to-use. 17
  • 19. 5 The Five C’s of a Win-Win Brand Strategy Managers of distributed marketing networks have long been challenged with keeping corporate and local marketing messages aligned and working together. At the root of the challenge is the fact that there are often legitimate reasons for a disconnect. While corporate marketers are very brand focused, local marketers are all about driving traffic and making sales. These two perspectives can easily collide, with the result being less-than-effective marketing. But it doesn’t have to be that way. Employing five “C’s” to the distributed marketing process can go a long way towards making a brand hum at the local level. Common Objectives While it may seem logical that one would begin any marketing effort with common objectives already established, Saepio client service managers too often observes the opposite. Corporate marketers and local marketers simply think differently, each protecting their own turf. They do so for a good reason. The corporate marketer who manages the distributed marketing network is the keeper of the brand and brand messages for that network. S/he must constantly focus on corporate brand objectives and deliver those to – 18
  • 20. and then through – the local marketer. The local marketer is often not on that same page. Store traffic and a ringing register is paramount and, if the marketing message isn’t perceived as focused solely on generating sales, the local individual likely isn’t interested. They like the support but insist that it be relevant to their operation. However, these different perspectives in no way preclude the formation of common objectives. They just require the corporate marketer to, as best-selling author Stephen Covey would say, “seek first to understand and then to be understood.” Listening to the needs of the local marketer and gleaning knowledge from the school of practical application via those on the front lines enables the corporate marketer to identify common objectives and create campaigns that truly support them. Consistent Messages Understanding the importance of delivering consistent messages across the entire distributed marketing network is easy for many marketers. Doing so is more challenging. Consistent messaging to consumers begins with effective resources for local marketers. While a local marketer will often want to advertise using a national message, s/he also frequently wants to somehow alter the corporate message to make it more applicable for his or her local environment. It is key for the corporate marketer to provide resources that ensure consistent messaging but allow some local flexibility. Distributed marketing management systems that include marketing asset management technology are an excellent starting point. These solutions provide all of the marketing resources the local marketer needs in one, easy-to- 19
  • 21. access location. As long as the corporate marketer is diligent in keeping the library of resources current, messages across the distributed marketing network will stay consistent. Coordinated Message Delivery Just as consistent messaging is important, coordinated timing of delivery is also critical. When a local marketer’s messages are timed to coordinate with national messages, investments in marketing can be optimized. At the heart of successful coordination is successful communication. And that means two-way communication. Often coordinated message delivery is dependent upon one-way communication and a great deal of hope. In this scenario, corporate develops a merchandizing kit containing marketing materials and sends it to the local market with the hope that it will be used properly, if at all. Local marketers want to be successful and want the benefits of the resources the corporate marketer provides, but their worlds don’t revolve around what corporate marketing is doing. They are focused on what they can do to drive traffic and view their corporate partners as a helpful ingredient of that plan. When the marketing kit arrives for a coordinated campaign, it may or may not receive the priority the corporate marketer seeks. What happens is dependent upon how effective communication has been up to that point. While it takes more work, engaging communication between corporate and local marketers is vital to coordinated message delivery. When local marketers know which message is recommended 20
  • 22. How Well Have I Implemented the 5 C’s? Consider the questions below. Worksheet #3 Common Objectives: Can you clearly describe both perspectives and the reasons for these in your organization? Corporate:______________________________________________ Local:___________________________________________________ What are the common objectives for your organization’s marketing? Consistency in Messaging: Why do my company’s distributed marketers want and need local brand messaging that is different than national messaging? ________________________________________________________ ________________________________________________________ What systems and/or workflows are in place to encourage distributed marketers to localize materials while retaining important brand messaging and other graphic elements? ________________________________________________________ ________________________________________________________ Coordinated Message Delivery: Do we have time-dependent campaigns that distributed marketers must implement? If so, have we made it easy for them to complete the tasks necessary? Have we been clear about how the campaign and the precise timing can help local success? Cooperative Customer Management What are the possible places where a unified customer management strategy is needed? Communication: Have I taken the time to truly understand the local marketer in the context of their business rather than in terms of what corporate believes they should be doing? What does the local marketer need from me in order to successfully complete the shared brand objectives in a consistent and coordinated manner? 21
  • 23. and why; what’s in it for them; and what is expected as part of a campaign, coordinated messaging naturally follows. Cooperative Customer Management Brands only hum when customers hum in harmony with them. The brand exists to create an emotional connection with the customer, to establish and to grow a relationship. That doesn’t happen without a corporate role and can’t be sustained without a local one. For a brand to hum, the experience a customer or prospect has through national brand messages – coupled with the experience they have upon entering a local retail outlet or interacting with a branded product or service – must be completely harmonious. The local marketer is critical to this process. Store décor, in-store promotions, digital signage, merchandise bags and many other physical items all contribute to the brand experience. So, too, do the personal interactions that happen in the store. While corporate marketers can’t always control customer management, they should always consider it when creating local options for national brand messaging. One cannot assume that a local marketer or local sales associate will be able to provide a continuous brand experience for the customer without being coached on how to do so. Often, adding this “last mile” of instruction adds little time to campaign development but can make a huge difference in the effectiveness of that campaign. 22
  • 24. Communication, Communication, Communication Any successful relationship starts with listening, including that between the corporate and the local marketer. You simply can’t over communicate with a local marketer yet you most assuredly can over communicate to one. Remember, effective communication is a dialogue. A nationally renowned speaker told 80,000 people who came to hear him talk about relationships that he really didn’t have anything to say, just one thing to show. With that he pulled out a giant ear and held it up. He didn’t need to say another word to make his point. • Communicate what’s important to your brand by first listening to how it’s important to your local marketer. • Communicate what you need them to do by first listening to what they need you to do. • Communicate what resources you’ve made available to them by listening to what they need those resources to be. There they are. The five C’s for making your brand hum at the local level. There’s nothing magical about them. We’d love to call them profound, but they’re simply applications of the sixth C … common sense. Yet too few apply them well, and as a result, too few see their brand really hum at the local level. 23
  • 25. 6 Taking Action - Synergy that Explodes Brand Value A lot of factors combine to create an organization where brand value explodes at the local level. Many programs have been tried through the years. Carrots to entice compliance. Sticks to enforce it. These approaches seldom work. The programs that do work are those developed by individuals who truly understand and foster a meaningful partnership between corporate and local marketers. A partnership where goals and messages align, where programs are logical and where each side fully participates in design and execution. Distributed Marketing Management systems that enable these processes are the cornerstone to success. Often called Marketing Asset Management or Local Marketing Management technology, these platforms help organize and execute every aspect of a local marketing program. While it is possible to run a program that maximizes brand value without such a system, it is highly unlikely, exponentially more difficult and normally much more expensive. Look for a system that delivers much more than just ad builder functionality. 24
  • 26. While ad builder is a helpful tool, for full synergy and maximum value, seek instead a comprehensive platform such as Saepio’s Marketing Asset Manager that helps create a strong, logical synergy between you and your local marketers. These tools accomplish this by providing the marketing assets that distributed marketers really need in an easy-to-use and always updated environment, thereby removing the need for a carrot or stick. 25
  • 27. 7 Equally Yoked Perhaps the best illustration for the optimal relationship between corporate and local marketers comes from the world of pre-machinery agriculture. When oxen were used to plow the soil or pull a wagon, it was important to choose two beasts of similar strength. Too much pull from one versus the other and keeping a straight plow line was close to impossible. Saepio encourages corporate and local marketers to seek a similar relationship to ensure peak performance. Too much corporate and the local marketer tunes out. Too much local and the corporate brand message is diluted. Don’t give up until you find the perfect balance for your organization. Exploding brand value at the local level isn’t necessarily easy but it is absolutely possible. Saepio hopes this guidebook has provided insight that will help your organization join those whose local marketing programs are humming along. 26
  • 28. Related Resources Visit the Distributed Marketing Leadership Series site (http://info.saepio.com/distributed-marketing-leadership-series) for access to the following case study documents. Each example will outline how the company has utilized Saepio’s distributed marketing tools to explode the value of the brand. • Loyalty – Frequent Segment Cartridge World Curves Fitness • Loyalty – Infrequent Segment BMW Motorcycles • Convenient Location Segment SONIC • Retail Assist Segment GM ACDelco • Community Development Segment Easter Seals 27
  • 29. About Saepio Saepio makes it easy for corporate and local marketers to build and run effective and engaging all-channel marketing campaigns. Saepio’s powerful MarketPort marketing platform starts with easy … •Easy to Build and Run a Cross-channel Campaign because everything – email, landing pages, social, mobile, digital banner ads, signage, print ads, direct mail, and much more – is all managed in a single, integrated digital marketing platform. •Easy to Maximize Brand Value at the Local Level because local and corporate marketers share a single platform but experience the same platform differently based on their roles. Brand control, speed to market, and content localization is all easily accomplished whether messages are for local, national or global audiences and corporate marketers can easily assign campaign tasks to local marketers. •Easy to Engage Customers with personalized, relevant messages because corporate intelligence gleaned from CRM data, customer analytics, consumer actions and more can determine what content is served when, where and how. •Easy to Automate Marketing Fulfillment because robust workflow enables every cross channel customer touch point to happen automatically whether launched by corporate marketing, initiated by a local marketer or triggered by a customer’s action. 28
  • 30. This robust yet simplified approach to today’s complex marketing challenges is in use at hundreds of leading companies and organizations, including many of the world’s most powerful brands. It is transforming the way corporations focus and manage their marketing efforts in a world that introduces new channels, new competitors, new regulations and new opportunities at every turn. For more information, visit www.saepio.com or call +1 816-777-2100.