Aarons 2007 Annual Report Download - page 17

“ I am an educator, and my husband is with the Georgia Department
of Transportation, and we have five children. I have been a customer
since around 1992. Over the years, I have bought electronics, sofas,
lamps, a refrigerator, washer/dryers and a computer. I like Aaron’s
because I can go into the store and select the products I want. I am
able to buy products without using my credit. I don’t shop other
stores. I just prefer Aaron’s — maybe it is just the friendliness of
the company.”
“ Stone Mountain was
probably a distinct
community when this
store was opened over
15 years ago, but the
Atlanta metropolitan
area has really grown
and the boundaries
between the city and
suburban areas have
blurred. I would guess
that there are 100,000
people within a five-
mile radius of this store
and at least 20 apart-
ment communities. Our
customers range from
18-year-old college students and service industry workers to retirees.
Direct mail has been effective in reaching our customers, and we
often have people walking in the door with a monthly circular in
hand. There are quite a few rental stores close by, and we often pick
up customers based on price and service. In addition, we have some
customers who have been with us for well over 10 years. We have a
staff of eight in this store, and one of the keys to growth is for us to
get out in the community and meet our customers.”
— Joseph Iapichino, General Manager, Store C0009
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, GA
group the highest (75%) and the
rural group the lowest (37%). The
typical Aaron’s customer is a high
school graduate who has attended
college. Urban customers tend to
have lower levels of educational
achievement, while over 80% of
suburban and rural customers
have completed some college
work. The Company’s customer
base is ethnically diverse, as is the
employee base. Over 80% of our
customers pay by the month with
the remainder paying semimonthly.
The Company’s centralized market-
ing produces a consistent message
and brand image executed by an
in-house advertising agency and
delivered through national and
local television advertising, direct
mail, direct delivery of promotional
materials and a variety of sports
sponsorships. “Aaron’s Makes
Dreams Come True” is a consistent
Company message, promoted
through our “Dream Products”
merchandise, our “Drive Dreams
Home” NASCAR championship
racing sponsorship and the over
25 million flyers distributed every
month to households in our markets.
We believe the high-profile NASCAR
sponsorship has been extremely
effective in expanding the Compa-
ny’s brand awareness, establishing
Aaron’s as a national market leader.
The Company’s franchise program,
launched in 1992, has been an
important engine of store growth. A
typical franchisee owns and operates
three or four stores, but several
of the over 100 franchisee groups
operate over 10 stores. Franchise
royalties and fees contribute over
20% of the Company’s earnings.
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