Aarons 2008 Annual Report Download - page 11

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openings and racetracks. The Company is the title
sponsor of the Aaron’s Dream Weekend at Talladega
Superspeedway consisting of the Aaron’s 499
NASCAR Sprint Cup Series Race and the Aaron’s
312 NASCAR Nationwide Series Race. In 2009 the
Company is sponsoring David Reutimann driving
the Aaron’s #00 Dream Machine full time in the
Sprint Cup Series races and Michael Waltrip driving
the #99 Aaron’s Dream Machine in 10 races in the
Nationwide Series. The Company is also the primary
sponsor of the #23 Nationwide car in 18 additional
Nationwide Series races. The NASCAR sponsorship
is integrated into advertising, promotional and
marketing initiatives, significantly boosting the
Company’s brand awareness and customer loyalty
on a national platform. Regional telecasts of
collegiate athletics and NBA basketball are also
important facets of the marketing program. Our
branding is enforced by striking fleet graphics
and store signage.
Balance and visibility
Aaron’s customer base of over 1.1 million house-
holds in the United States and Canada provides
both geographical and customer diversification.
Our customers, with a current average payment
of $143 dollars a month to Aaron’s, acquire basic
household goods and, as a group, have agreements
ending at different times. The Company’s standard
terms to ownership are 12 to 24 months, with the
average agreement at present 19 months. Each
month, a certain number of agreements mature
and each month we add new agreements to our
portfolio. Over 45% of our agreements are carried
to maturity with the customer taking ownership
of the merchandise. The fact that a large number
of our customers renew also boosts the visibility
of future revenue growth.
million direct
mail circulars
distributed
monthly
9