Aarons 2012 Annual Report Download - page 21

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11
Woodhaven has designed special features for the furniture it manufactures that we believe reduce production costs,
enhance product durability, and improve the shipping process relative to furniture purchased from third parties. These
features include:
standardization of components;
reduction of parts and features susceptible to wear or damage;
more resilient foam;
durable, soil-resistant fabrics and sturdy frames for longer life and higher residual value; and
devices that allow sofas to stand on end for easier and more efficient transport.
Woodhaven also provides replacement covers of all styles and fabrics of its upholstered furniture for use in
reconditioning lease return furniture.
The principal raw materials we use in furniture manufacturing are fabric, foam, fiber, wire-innerspring assemblies,
plywood, oriented strand board, and hardwood. All of these materials are purchased in the open market from
unaffiliated sources. We are not dependent on any single supplier, and none of the raw materials we use are in short
supply.
Marketing and Advertising
In 2012, Aaron’s reached our customer demographic on national broadcast and cable television and radio networks with
a combination of brand/image messaging and product/price promotions on networks such as ABC, FOX, TBS,
TELEMUNDO and UNIVISION, among others. Aaron’s enhanced its broadcast presence this year with digital
marketing and via social environments such as Facebook and Twitter.
Aaron’s targets new customers each month distributing over 27 million, four-page circulars to homes in the United
States and Canada. The circulars feature brand name merchandise along with the features, options, and benefits of
Aaron’s lease ownership payment plans. We implement grand opening ―Jump Start‖ marketing initiatives designed to
ensure each new store quickly establishes a strong customer count. Aaron’s also distributes millions of email and direct
mail promotions.
Aaron’s sponsors motorsports teams and event broadcasts at various levels along with select professional and collegiate
sports, such as NFL and NBA teams, SEC and ACC college athletic programs, and an IMG collegiate sports national
sponsorship package of 31 schools, among others. We also continue our NASCAR Sprint Cup team sponsorship of
Michael Waltrip Racing in the NASCAR Sprint Cup Series into the 2013 season with drivers Mark Martin and Michael
Waltrip both driving the Aaron’s #55 ―Dream Machine.‖
Our premier title sponsorship continues to be 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. Both races
are broadcast live on national television and are among the most watched events on the NASCAR circuit.
All of our sports partnerships are supported with advertising, promotional, marketing and brand activation initiatives
that have proven to significantly enhance the Company’s brand awareness and customer loyalty.
Store Operations
Management. Aaron's Sales & Lease Ownership division has 12 divisional vice presidents who are primarily
responsible for the overall performance of their respective divisions. In addition, our HomeSmart division has one
divisional vice president.