Marketing Program Helps Retailers ''Step Up'' Sales

BUENA PARK, CA (October 21, 2005) — Yamaha Corporation of America, Band & Orchestral Division, recognizes that local retailers don’t always have the time or resources to run full-fledged marketing programs. So as part of its commitment to authorized retailers, the company has chosen to assist – in the form of “Step Up to Yamaha,” which draws upon retailers’ own rental customer lists to generate significant new sales using rebates, sales force incentives, and a professional brochure customized with the retailer’s name and logo.

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Participants in Step Up to Yamaha report sales volume increases ranging from 80 to 300 percent compared to similar periods in previous years. Brochure production, mailing, customer rebates, and cash incentives for in-store personnel who make sales as part of the program are all provided at no cost to the retailer.

“This program is very well orchestrated,” says Nick Rail, President of Nick Rail Music in Santa Barbara, Calif., now in its second year of participation. “We’ve had a wonderful result: we moved around 70 units through that program, increased store business, and increased other sales as well, such as accessories.”

When a dealer signs on to the Step Up to Yamaha program, Yamaha incorporates that dealer’s name, logo and contact information into a glossy tri-fold brochure targeted to the store’s existing rental customers. Renters who “step up” to buy Intermediate or Allegro level band instruments receive a $50 mail-in rebate, while “step-up” buyers of Professional or Custom level band instruments receive $100 rebates. The brochure also highlights Yamaha’s five-year warranty, and includes compelling information on the value of music for young people.

“The neat thing about this promotion that’s different from most of the others is that Yamaha has really thought the whole process through and works with you,” says Len Doyle, President of Taylor’s Music in West Chester, Pa. “They give our customers incentive; they give incentives to our employees; and the customer gets a rebate when they purchase the item. It’s much more than just trying to unload product to the dealer at a low price.”

“It’s been really successful for us, and really profitable too,” Doyle adds. “The increase in volume was probably three times what we typically sell in the same period.”

Rail notes that converting renters to buyers has a domino effect of other benefits for his business. “We get an instrument back to put in rental stock in good condition that’s already paid for,” he says. “And when we step a customer up to an intermediate or pro instrument, whether or not they view themselves as a better player, they are making a commitment to music – which leads to their becoming better players. Once they’ve upgraded their equipment, then they come back for all the peripherals that go along with that.”

The current round of Step Up to Yamaha promotion ends December 31, with another round planned for 2006. Some 65 Yamaha retailers have taken part since the program was inaugurated.

“This is a great marking tool for a number of dealers who have not had a structured plan to market to their customer base,” states Kurt Witt, Marketing Manager, Winds, Yamaha Band & Orchestral Division. “It’s been really successful in building sell-through by initiating the sale rather than just traditionally selling products to the dealer at a discount and increasing their inventory. We are working with them to make the sale. It really helps the local dealer with sell-through.”

For more information, write Yamaha Corporation of America, Band & Orchestral Division, P.O. Box 6600, Buena Park, CA 90622; telephone (714) 522-9011; e-mail infostation@yamaha.com; or visit www.yamaha.com/band.

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