INTRODUCTION. This guide is intended for review and use by GMSA Dealer Principals, Sales Managers and Dealer Advertising Managers.

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2 INTRODUCTION This guide is intended for review and use by GMSA Dealer Principals, Sales Managers and Dealer Advertising Managers. The overall objective of this guide is to act as a quick reference as to standards in terms of GMSA Dealer Advertising. Should you have any questions on this guide or about GMSA Dealer Advertising in general please contact: Carmen Butler Manager Local Advertising & Marketing Programmes General Motors South Africa Tel: (011) Fax: carmen.butler@gm.com Or AdMakers International Tel: (021) Fax: (021) nadia@admakers.com matthew@admakers.com belinda@admakers.com 1

3 Contents 1. Combining GMSA Objectives & Dealer Objectives 2. General Guidelines and Requests Co-Op Rules 5. National Credit Act Guidelines 6. Contact Details 2

4 1. Combining GMSA Objectives & Dealer Objectives The AdMakers International team, as tasked by GMSA, has the responsibility of ensuring Dealer Advertising Standards are maintained. This role entails merging the requirements from the GMSA Corporate perspective with Dealer requirements. GMSA Corporate Marketing Requirements ITO Dealer Advertising: A. Upkeep of consistency and Brand GMSA Standards ITO Look & Feel Vehicle Presentation Messaging Specifications Logo and Name Application B. One LOOK / VOICE = BIGGER IMPACT = win more sales from the competition. GMSA Dealer Requirements ITO Dealer Advertising: A. Differentiation from other GMSA Retailers. B. Advertising that makes the phone ring / increases dealership foot traffic sales for the specific dealership. 3

5 2. General Guidelines & Requests 2.1 Maintaining Consistency As a GM dealer it is vital that all artwork used falls within the GMSA Corporate Identity and Advertising Guidelines. This will ensure that all the correct logos are used as well as colours, fonts, images, layout etc. The reason we have a GMSA Corporate Identity and Advertising Guide is to ensure that there is a solid consistency amongst all advertising that is done this builds a stronger brand image for your dealership and GM as a whole. 2.2 Creating Dealer Differentiation One of the key objectives of centralised GMSA Retailer advertising is that it creates an instantly recognisable GMSA look and feel. Thus, when paging through a newspaper, the reader can instantly identify a GMSA Retailer ad. The same applies to other car manufacturers. Consistency in look and feel between Retailers creates a wave of exposure that is to mutual benefit. The above said, we do have a wide scope for dealer differentiation ITO ad layouts within the GMSA guidelines. It is also an AdMakers policy from October 2009 to give dealers multiple layout options on one ad for consideration (please note that this is deadline dependent). 2.3 Briefing in your Ads Due to the volume of work being produced (137 dealers) all ads that are briefed are prioritised according to the nearest deadline. Each ad received needs to go through the following process: a) First, it is briefed in writing to the copy department to write copy. b) It is then passed on to the designer to come up with the layout and typeset the supplied copy. c) Then the draft ad goes back to copy for checking. d) Once approved by copy it goes to Client Service for checking against the brief. e) Client Service approves the ad. f) Ad is sent to client for changes / approval. 4

6 2. General Guidelines & Requests g) Repeat process if changes need to be made. h) Ad gets sent to publication. i) Follow up of receipt with publication. Due to the above we request an ideal 3 to 5 day lead time before deadline to alleviate pressure during approval and allow for proper creative input. AdMakers will NEVER refuse to do an ad for you because the deadline is very tight. Please also note that Mondays and Tuesdays are the busiest days in terms of Dealer Ads at AdMakers due to Motoring Supplement Deadlines on these days. 2.4 Briefs from Publications are not accepted Publications do not know GMSA product as well as Dealers do and this, more often than not, leads to incomplete and incorrect briefs being received, which in turn leads to Dealer frustration. Secondly some publications take chances and claim a Retailer requested an ad, when it was not the case, to ensure they get a booking. 2.5 Timing on Changes As all ads are done according to a deadline and the time they have been briefed, this of course means that all ads fall into a line. Thus ad changes are prioritised accordingly. 2.6 Publications are not allowed to make Ad changes Only artwork that has been done by AdMakers will fall within the GMSA Corporate Identity and Advertising Guidelines. As soon as artwork has been touched by another designer it no longer falls within GM guidelines. 2.7 Approving of Ads not done by AdMakers According to the new Co-op rules AdMakers are not allowed to approve any artwork not designed by themselves. 2.8 New Model Launch Advertising AdMakers are under strict instructions from GMSA Marketing as to when Dealer advertising can start appearing for a specific product. The timing of the above is usually 5

7 2. General Guidelines & Requests related to national stock as well as the timing of the Brand Advertising Campaign. 2.9 Monthly Offers All ads that include Monthly Payment figures have to be approved by GMSA Financial Services, as they will be financing the vehicle. If the figures are not correct it will mean that a consumer who has bought a vehicle can t finance the vehicle as the offer is incorrect. Please also note that all Monthly Payment advertising has to conform to National Credit Act (NCA) Guidelines to protect the Dealer in question (please see NCA Guidelines later in this Guide) Vehicle Image Choice The variety of colours and images available are dependent on the budget invested in the model at launch. It is impossible to shoot all the model varients in all the colours available due to the cost involved. Thus the majority of images are in silver as it is the easiest colour to photograph. Please also note that the general practice is to photograph the top model in a specific range as it has the most visual appeal. Please note that in cases where a specific model image is not available (example: a dealer wants to advertise a Corsa Ute Base and no image is available of that specific model) a replacement image (example: 1.8 Corsa Ute) will be used and a disclaimer added to the bottom of the ad stating Model shown differs from actual Vehicle Image Deep-etching Deep-etching is the process of cutting out an image that has a background and placing it on a white background. This is required most often on G2 adverts. On average there are about 12 images per G2 ad that need to be deep-etched. With each image taking half an hour to deep-etch, a total of 6 hours is required for this process. Please keep this in mind when briefing in your ads and allow for sufficient time Non-Vehicle Images The only instance where AdMakers will quote a dealership for the use of an image is when a non-vehicle image is involved. For example lifestyle images of a family to accompany an ad. 6

8 2. General Guidelines & Requests Why? The images are bought from Photo Libraries by the agency Supplying Images to Dealers Please note that the intended use of an image must be communicated to AdMakers BEFORE the image can be supplied. Once again, the reason for this is the protection of GMSA and its individual brand images. AdMakers are accountable to GMSA as to what images are used for. For example A Dealer has sold 10 cars to the local casino. AdMakers would then approach GMSA Marketing for approval to supply images Mass Brand & Premium Brands Mass Brands (Chevrolet, Opel, Isuzu) and Premium Brands (Cadillac, HUMMER) cannot be advertised together on a new car layout Ensuring Non-clashing Ad Placements When booking advertising please ask the publication if any other GM dealers are advertising in the same publication if the answer is yes, please request that they DO NOT place both Dealership ads on the same page (AdMakers checks this automatically) Media AdMakers has all relevant research at hand for dealer use to establish the best media to use in a specific area, inclusive of Radio, Press etc. Please contact them should you require assistance. As per the 2009 Co-Op Rules, Dealers are required to contact AdMakers for quotes on Media Placements. Please compare the AdMakers cost to the cost of booking the ad space directly. In cases where the AdMakers cost is lower please book through AdMakers in order to qualify for the 33% Co-Op contribution from GMSA. In cases where the direct booking cost is lower please book the ad and instruct the publication to invoice AdMakers (details below) in order to still qualify for 7

9 2. General Guidelines & Requests the 33% Co-Op contribution from GMSA. The Dealer must alert AdMakers to this effect. AdMakers International (Pty) Ltd AdMakers House Unit 26 The Waverley Business Park Mowbray 7700 Cape Town Tel Fax Company Registration Number: 1987/001/247/07 VAT Number: Please note that AdMakers payments to publications are scheduled for 30 days after month end of placement. For planning purposes and optimal discount negotiation, please advise AdMakers on the full number of placements planned in a specific publication when briefing as this influences negotiation with publications. Please note that if a Dealer books through AdMakers you are not required to submit a Tearsheet for claim back purposes to GMSA. The AdMakers invoice is acceptable proof of placement for Co-Op Claim back purposes Briefing in Your Ad Successfully, in Summary: Brief in timely and over-allow. Ads are prioritised according to deadlines. Supply all information required to get the ad done timeously. Try to give only one set of changes if at all possible. One point of Retailer contact eases the process. Please be available for approval. Deep-etching images takes more time. Monday/Tuesday are the busiest times (Motoring Deadlines) Understanding of Free vs Cost elements. Advise for what purpose images will be used upon requesting. 8

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12 Co-op Rules A. Dealers Co-op support budget for Qtr 1, 2009 is set at each dealers Oct-Dec 2008 going rate as a percentage of the GMSA going rate for the same period. Example: GMSA s going rate for same period = units XYZ Dealer s going rate =100 units = 2% of national sales volume GMSA Co-op Budget= 1.6 Million Therefore XYZ Dealer qualifies for R [100/5 000 x R1.6Mil] of the overall Co-op budget. B. Dealers will thus be refunded a third of their spend, up to a maximum of the Co-op support budget allocated to them, based on their 90 day going rate. In this example the dealer would qualify for R if they spend R Example: Dealer XYZ can only claim up to a maximum of R for Qtr 1 C. MAMs will communicate their respective dealers allocated Co-op support. D. Agency funded support will include the following services at no additional cost to dealers: Design of Flyers Radio and Television scripts Design and artwork supply of Vehicle Branding Design of ers Outdoor Advertising Design Window Decal Design Pointer Board Design Street Pole Ads E. Co-op support will apply to the following marketing and sales promotions activities booked through AdMakers:- Flyer printing cost Radio and Television recording costs Vehicle Branding production and application Outdoor Advertising production Window Decal production and application Pointer Board production 11

13 Co-op Rules Street Pole Ads production Media booking of any adverts [TV, Radio, Newspaper, Online etc] Any other Production / printing costs F. Comprehensive sales and marketing plans for each Qtr need to be updated on your balance scorecard which will be reviewed by your MAM for approval prior to any spend in order to qualify for co-op support. G. In cases of uncertainty regarding validity of advertising and promotions, get approval from your MAM prior to spending any money. Payment Procedure to AdMakers Media Placements and/or Production Payments for all media bookings and/or production done via AdMakers need to be settled within 30 days from date of invoice. Payment not settled within 30 days will accrue the following: Interest will be charged at 2% per month on overdue accounts from date of invoice. In the event of payment not being received within 45 days by AdMakers International (Pty) Ltd from date of invoice any outstanding amounts will be settled by General Motors South Africa on behalf of the Dealership to AdMakers International (Pty) Ltd and the outstanding amount will be added to the Dealership s GMSA Parts & Accessories Account for settlement by GMSA to AdMakers International (Pty) Ltd. The 2% interest per month from the 1st day (not only after 30 days) and a 10% administration fee will also be charged in cases where payment is done via GMSA and added to the dealer s Parts & Accessories account. Example: Dealer XYZ receives an invoice for R If the invoice is not paid within 30 days, 2% pm (per month) interest [R 200] will be charged and an additional invoice issued for R 200 (excl VAT). If after 45 days you still fail to settle the account: an additional 2% pm interest [R 200] as well as a 10% admin fee [R 1 000] will be charged and additional invoices issued for R 200 and R (excl. VAT) respectively. This account for R (excl. VAT) will be submitted to GMSA for payment. GMSA will do the payment on your behalf and recover the payment with 12

14 Co-op Rules Claiming Procedure a transaction on your Parts & Accessories account. Claims for Jan-Apr 2009 must be submitted to your MAM before the 15th May. Claims for every quarter thereafter will be processed on the 15th of the month following the end of that quarter. Thus for May-Jul, claims should be submitted before 15 Aug to be processed. Please note that no late claims will be entertained. Claims must have a front page (see attached) summarising all costs with reference to invoices. Submission must be supported by copies of invoices and in the case of promotional events, photos of the display and proof of return on investment. If a claim is valid and approved your MAM will then request an invoice for the agreed amount. 13

15 5. National Credit Act Guidelines Included below is an extract from the Act containing the most relevant information for your perusal. PART C: CREDIT MARKETING PRACTICES Required content for advertising practices 21. (1) If an advertisement refers only to the availability of credit, and no reference is made to costs,interest rate or monthly installment, no further disclosure of cost of credit, interest rate or monthly repayment is required. (2) If an advertisement discloses only the interest rate or the maximum and minimum rates where a range is applicable and no reference is made to other costs of credit, no further information has to be disclosed, but the advertisement must indicate that an initiation fee and service fee will be charged, if applicable; (3) If an advertisement, other than an advertisement referred to in sub-regulation (2), discloses a monthly installment, or any other cost of credit, the advertisement must also disclose the following: (a) Installment amount; (b) Number of installments; (c) Total amount of all installments, including interest, fees and compulsory insurance; (d) Interest rate; and (e) Residual or final amount payable (if any) (4) A statement of comparison of credit cost, as described in section (76)(4)(d) of the Act, must contain all the information as set out in sub-regulation (3), for each alternative being compared. (5) If an advertisement is for specific goods to be purchased on credit, services to be rendered on credit or a specific amount of credit obtainable and reference is made to repayment amounts or cost of credit, all the information as contained in sub-regulation (3) must also be disclosed. (6) Any of the following statements or phrases, or any wording that has substantially the same meaning, may not form part of any advertisement or direct solicitation for credit- (a) No credit checks required (b) Blacklisted consumers welcome (c) Free credit (7) If any of the following qualitative statements to the cost of credit or any wording that has substantially the same meaning, is made, (a) Cheap credit (b) Affordable credit (c) Low cost credit specific information must be disclosed on the cost of credit as per sub-regulation (2) or sub-regulation (3). 14

16 5. National Credit Act Guidelines (8) A direct solicitation may not contain the expressions loan guaranteed, preapproved or similar statements except when the credit granted is not subject to any credit assessment after acceptance by the consumer. REQUIRED FORMAT FOR ADVERTISING PRACTICES 22. (1) The information required to be disclosed in terms of regulation 21(2) and 21(3) must be: (a) Of no smaller font size than the average font size used in the advertisement (b) Displayed together (2) The disclosure of the information in terms of regulation 21(2) and 21(3) for purposes of television advertisements may be a combination of visual and audio disclosure provided that equal prominence is given to all the information required, equivalent to the prominence given to all other elements of the advertisement. (3) Audio advertisements must provide equal prominence to all the information to be disclosed in terms of regulation 21(2) and 21(3), equivalent to the prominence given to all other elements of the advertisement. SPECIAL NOTES 1. GMSA Financial Services will be allowed to make offers available that can be advertised by all GM Retailers on the basis that GMSA Financial Services is noted as the registered credit provider. Please note that the above needs to be authorised by GMSA Financial Services. GMSA Financial Services will also provide templates, rules, logos etc. and will need to approve layouts in terms of the financial offers. 2. GMSA Corporate Marketing will be allowed to place ads advertising the availability of credit with offers that apply to all GMSA Retailers based on the fact that GMSA Financial Services is the registered credit provider. All layouts will need approval by GMSA Financial Services before placement. 15

17 5. LAYOUT EXAMPLES UNDER NCA AD NO. 1 Retailer is not a Registered Credit Provider & no GMSA Financial Services offer included LIGHT ON PRICE LARGE ON APPEAL RETAILER NAME Retailer address details & tel number OPEL CORSA LITE Body Colour Bumpers Power Steering Immobiliser R Model shown may differ. E&OE ADMAKERS.COM Please note: If ads have no reference to Finance Costs (like Ad No. 1 above) the following phrase can be included: Finance available through GMSA Financial Services, a division of WesBank, a division of FirstRand Ltd, an Authorised Financial Services and Registered Credit Provider. Cash price stated AD NO. 2 Retailer is a Registered Credit Provider (Monthly Instalment ad) Interest rate & if it is Fixed or Linked stated LIGHT ON PRICE LARGE ON APPEAL RETAILER NAME Retailer address details & tel number RETAILER NAME is a Registered Credit Provider. THE OPEL CORSA LITE AT XX.X% FIXED INTEREST Please note that an Initiation & Service Fee is applicable GET THESE GREAT FEATURES TODAY! Body Colour Bumpers Power Steering Immobiliser Model shown may differ. E&OE Credit available ADMAKERS.COM Any advert pertaining to finance must state who the credit provider is (no need to state registration number). If applicable 16

18 5. LAYOUT EXAMPLES UNDER NCA AD NO. 3 Retailer is a Registered Credit Provider (Monthly Instalment ad) Interest rate & if it is Fixed or Linked stated LIGHT ON PRICE LARGE ON APPEAL THE OPEL CORSA LITE AT AN INSTALMENT AMOUNT OF ONLY RXXX PER MONTH Deposit: Rxx xxx Interest Rate (Fixed): xx% Number of Instalments: 54 Final Payment: Rxx xxx Total Costs: Rxx xxx Retail Price: Rxx xxx RETAILER NAME Retailer address details & tel number RETAILER NAME is a Registered Credit Provider. GET THESE GREAT FEATURES TODAY! Body Colour Bumpers Power Steering Immobiliser Model shown may differ. E&OE Credit available ADMAKERS.COM Any advert pertaining to finance must state who the credit provider is (no need to state registration number). Total Costs must include: Deposit Final / Balloon Payment (If applicable) Instalments x the months Service Fees x the months Compulsory Insurance If no fixed insurance costs can be calculated the following disclaimer must be added *Mandatory Insurance costs are excluded. 17

19 5. LAYOUT EXAMPLES UNDER NCA AD NO. 4 Interest ad with GMSA Financial Services / Wesbank as NCA Registered Interest rate & if it is Fixed or Linked stated LIGHT ON PRICE LARGE ON APPEAL RETAILER NAME Retailer address details & tel number RETAILER NAME is a Registered Credit Provider. THE OPEL CORSA LITE AT XX.X% FIXED INTEREST Please note that an Initiation & Service Fee is applicable GMSA Financial Services A division of WesBank A division of FirstRand Bank Ltd. An Authorised Financial Services & Credit Provider. NCRCP20. GET THESE GREAT FEATURES TODAY! Body Colour Bumpers Power Steering Immobiliser Model shown may differ. E&OE Credit available ADMAKERS.COM Any advert pertaining to finance must state who the credit provider is (no need to state registration number). If applicable 18

20 6. LAYOUT EXAMPLES UNDER NCA Interest rate & if it is Fixed or Linked stated AD NO.5 Monthly Instalment ad with GMSA Financial Services / Wesbank as NCA Registered LIGHT ON PRICE LARGE ON APPEAL THE OPEL CORSA LITE AT AN INSTALMENT AMOUNT OF ONLY RXXX PER MONTH Deposit: Rxx xxx Interest Rate (Fixed): xx% Number of Instalments: 54 Final Payment: Rxx xxx Total Costs: Rxx xxx Retail Price: Rxx xxx RETAILER NAME Retailer address details & tel number RETAILER NAME is a Registered Credit Provider. GMSA Financial Services A division of WesBank A division of FirstRand Bank Ltd. An Authorised Financial Services & Credit Provider. NCRCP20. GET THESE GREAT FEATURES TODAY! Body Colour Bumpers Power Steering Immobiliser Model shown may differ. E&OE Credit available ADMAKERS.COM Any advert pertaining to finance must state who the credit provider is (no need to state registration number). Total Costs must include: Deposit Final / Balloon Payment (If applicable) Instalments x the months Service Fees x the months Compulsory Insurance If no fixed insurance costs can be calculated the following disclaimer must be added *Mandatory Insurance costs are excluded. 19

21 6. CONTACT DETAILS Carmen Butler Manager Local Advertising & Marketing Programmes General Motors South Africa Tel: (011) Fax: Or AdMakers International Tel: (021) Fax: (021)

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