2008 Kia Co-Op Advertising Program

INTRODUCTION

As a Kia dealer, you have many advantages over the competition. You have a compelling message to communicate that will help you build long-term relationships with your customers. This message consists of key benefits that your competitors cannot match, including:

- Correct fitting Kia Genuine Parts - Quality factory trained technicians - Professional advisors - Superior customer service

In 2007, Kia Fixed Operations Marketing renewed its focus on increasing non-warranty service and parts business at Kia dealerships. As a result, Kia celebrated significant growth in these areas. But, that’s just the beginning! Kia wants to partner with you to help continue to grow your parts and service business; and Co-op advertising is a key support program in helping achieve that objective.

Effective advertising is a key aspect of building a successful fixed business. It not only raises the awareness of the Kia brand, it also helps increase service retention within your dealership. When you send a consistent message over time, you start to see your efforts make a significant impact.

Take the time to learn more about the 2008 Kia Parts & Service Co-Op program and educate yourself on Kia’s advertising standards and requirements. This year’s program includes new ad templates, posters, and parts & accessory images and logos; everything you need to build effective ads to communicate to your customers.

We need your commitment to ensure that your Kia dealership continues to experience growth in the parts and service aspects of the business. When you’re profitable, we’re profitable. So let’s work together to make it happen!!

2008 CO-OP PROGRAM OVERVIEW

Program Timeline

The 2008 Kia Parts & Service Co-Op program covers Kia dealership parts and service advertising placed from January 1, 2008 through December 31, 2008. All 2008 claims must be submitted by January 31, 2009.

Co-Op Allowance

2008 Co-op allowances are based on a calculation of 1.25% of each dealer’s NET parts purchases for 2007. Kia will fund all approved parts and service Co-op claims at 50%, up to a cap of $1 million nationally. New Kia dealers that go into business during the year will have a $500 Co-op allowance available to them.

From time to time, additional Co-op funds may be made available. Such instances require prior written approval by Kia Motors America. Please contact your District Parts and Service Manager (DPSM) for further details. KMA reserves the right to re-allocate un-used dealer co-op funds at any time during the year. 2008 Kia Co-Op Advertising Program

Resources

Kia has made the following list of resources available for your advertising efforts:

- Parts and service marketing and merchandising templates. (Available on the Parts and Service Co-op CD and at the parts & service co-op ad creator web site located under the Fixed Operations link on kdealer.net.) Advertising and merchandising materials created and ordered through the co-op ad creator web site meet the current Kia Parts & Service co-op guidelines.

o Parts & Accessories (Retail and Wholesale) . Direct Mail (Self Mailer and Postcard) . Flyer . Ad (Newspaper and Yellow Pages) o Service . Direct Mail (Self Mailer and Post Card) o Merchandising . Posters (Parts and Accessories) . Banners . Window Clings . Magnets

- High-resolution parts and accessory images. (Available on the Parts and Service Co-op CD and at the parts & service co-op ad creator web site located under the Fixed Operations link on kdealer.net.) - High-resolution vehicle images (Available at the Kia On-Line Ad Planner at http://adplanner.kia.com/ ) - Kia logo usage guidelines (Available on the Parts and Service Co-op CD and at the parts & service co-op ad creator web site located under the Fixed Operations link on kdealer.net.)

Claims Processing and Reimbursement

Kia has contracted with the Advertising Checking Bureau (ACB) to perform all of the Co-op Program management, auditing and billing. Kia’s share of the dealer’s advertising reimbursement (50%) will be issued by ACB.

All claims submitted to ACB must be postmarked no later than 60 days after the month in which the ad runs. Claims are submitted to the following address:

The Advertising Checking Bureau Kia Co-Op Advertising Reimbursement 1919 W. Fairmont Drive, Suite 7 Phoenix, AZ 85282

Or: P.O. Box 52118 Phoenix, AZ 85072-2118

Inquiries can be directed to the ACB/Kia Co-Op Coordinator at (602) 438-2320.

Co-op reimbursement under this program will be made in the form of a check from the Advertising Checking Bureau (Allow 8 – 10 days for reimbursement).

Co-op claims will be paid up to 60 days after a Kia dealer’s termination and/or sell date, as long as the claim was submitted prior to the termination date which is provided to ACB via email notification. If a claim is submitted after the termination and/or sell date, ACB will process and deny the claim. The dealer will be responsible for the expense and the claim will not be eligible for co-op reimbursement. 2008 Kia Co-Op Advertising Program

KIA CO-OP PROGRAM GUIDELINES

1. Program Rules - The following basic rules describe the execution of the program:

 Kia will reimburse 50% of dealers advertising costs for approved parts and service retail and wholesale ads, parts and service marketing programs, and parts and service merchandising materials.  Kia dealers will accrue 1.25% of their previous year’s NET parts purchases as their Co-op funds total for the year. (New Kia dealers will receive $500 in funding the month they are added to the active dealer list. For new dealers in a Buy/Sell situation, the buying dealer will inherit any unused co-op funds allocated to the selling dealer.)  Advertising must cover the dealer’s primary selling area.  Verification of advertising rates and circulation must be provided  The un-modified Kia logo and brand name must be used and appear prominently in the ad. o Advertising must contain the approved Kia Signature logo (Kia Oval with Kia Motors underneath), or the Kia Genuine Parts, Genuine Service, Genuine Care logo, and mention Kia Genuine Parts, Kia Genuine Service, or Kia Genuine Accessories.  Multiple brand and multiple product ads are NOT acceptable. Kia Genuine Parts and Service must be clearly identified and ads must be separate from non-Kia products and services.  The use of color is authorized. (Graphic Standards provided)  The primary purpose of the retail ads MUST be to increase the sale of Kia Genuine Parts and/or Service to Kia owners. Sales department information must be excluded from ALL parts and service advertising and marketing to be eligible.  Statement and Agency bills do not qualify for co-op reimbursement and will not be accepted.

Kia provides an official program claim form to be used with all submissions. The form is located on the launch CD. Dealers need to complete the form and submit it to ACB. A single claim form may be used to submit multiple claims for various media. Appropriate documentation for all ads must be submitted (please see Claim Process section).

2. Approved Media – The following is a list of approved media, including several vendors that have been certified by KMA as “approved” for providing Kia dealers with service reminder programs. Service reminder program mailers from this list are pre-approved for co-op reimbursement. All other service reminder mailers must go through the standard parts and service co-op claim process.

 Print Advertising – Newspapers, Shoppers, Pennysavers®, Trade Publications, Trade Associations, Magazines, and Yellow Pages®.  Direct Mail  Service Reminders – including service reminder programs administered by: o Dealer Product Services (800) 998-2910 (Includes Every Visit Counts frequent oil change program which does not need prior approval from Kia.) o RPM (800) 974-4469 o TVI, Inc. (MarketPro3) (800) 884-0844 o Marketrend (800) 668-7785 o Car People Marketing, Inc. (866) 227-7337 o Peak Performance by On-line Administrators (800) 888-0024 o Planned Maintenance Program (800) 348-3063  Calendars o Teldon Marketing, Inc. (800) 755-9970 (No prior approval needed from Kia)  Outside Wholesale Parts Agents (50% reimbursement up to $400 per month)  Service Clinics (Prior-approval required)  Radio Advertising (Prior-approval required)  Television Advertising (Prior-approval required)  Merchandising/Promotional materials (Prior-approval required)

Kia dealers assume the responsibility that their ads comply with applicable laws, rules and regulations. It is in the dealer’s best interest to consult a qualified legal expert concerning the legality of their advertising. Kia Motors America will not accept responsibility for dealer misuse of advertising materials. 2008 Kia Co-Op Advertising Program

3. Claim Process - Kia will utilize the services of ACB to perform all Co-op advertising claims management, auditing and billing. They will issue advertising reimbursement as well.

Each claim must be accompanied by the appropriate documentation. These support documents include:

Print Advertising

Full-page tear sheet and publication cover for print advertising (Newspaper, magazine, etc.) The name and date of the publication must be clearly visible so ACB can verify the run date. If the ad runs multiple days, the dealer will need a tear sheet for every variation of the ad during those days.

A copy of the invoice from the publication must also be submitted. The invoice must contain the contract date, run date, and net cost of the ad. (Statement bills or agency bills do not qualify and will not be accepted.)

Direct Mail

For direct mail pieces, a copy of the entire mailing including any response cards, envelopes or coupons must be included with the claim.

Attach a certified copy of the postage costs if these costs were invoiced separately. If a mailing service is used, any invoices from that service must be included.

Service Reminders

Similar to direct mail, a copy of the entire mailing including any response cards, envelopes or coupons must be included with the claim.

Attach a certified copy of the postage costs if these costs were invoiced separately. If a mailing service is used, any invoices from that service must be included.

Calendars

Promotional calendars ordered through Teldon Marketing, Inc. are pre-approved by Kia Motors for Parts & service co-op reimbursement. Calendars ordered from other agencies require prior approval. An actual copy of the calendar with the dealer’s information must be included with the claim.

If calendars are mailed as part of a promotion, a certified copy of the postage costs should also be included with the claim. If a mailing service is used, any invoices from that service must be included.

Outside Wholesale Sales Agents

Co-op support for wholesale parts agents will be limited to outside agents only. Kia will offer 50% co- op funding up to $400 per month.

A copy of the invoice and any mail piece or handout must be submitted with the claim form.

Service Clinics

To be eligible for Co-op reimbursement, all Service Clinics require prior approval from Kia Motors America. Kia will reimburse expenses for refreshments, advertising, and display/supplies for these types of events.

Documentation for Co-op reimbursement will include photos of the event, invoices, and tear sheets for advertising, and receipts/invoices for refreshments and display items. 2008 Kia Co-Op Advertising Program

Radio Advertising

Prior approval is required for all radio advertising.

A script from the station including ANA/RAB notarized affidavit on the page is required for reimbursement.

A copy of the invoice from the studio and/or radio station must also be submitted. The invoice must contain the contract date, run date, and net cost of the ad. (Production fees, statement bills or agency bills do not qualify and will not be accepted.)

Television Advertising

Prior approval is required for all television advertising.

A script from the station including ANA/TVB notarized affidavit on the page is required for reimbursement.

A copy of the invoice from the studio and/or television station must also be submitted. The invoice must contain the contract date, run date, and net cost of the ad. (Production fees, statement bills or agency bills do not qualify and will not be accepted.)

Merchandising/Promotional Materials (Maximum of 15% of allocated co-op funds per year)

To be eligible for Co-op reimbursement, all merchandising/promotional materials must be pre-approved by Kia Motors America. These items would include tire racks, banners, flags, etc. when used as part of a dealership promotion or campaign.

A copy of the invoice and an image of the item(s) purchased must be submitted with the claim form.

Items may only be self consumed or used as giveaways and not used for resale. Reimbursement is not available for any tax or freight costs.

Kia Service Education signage does not require Prior Approval; however, dealers do need an invoice from Kia Motors and a picture of the sign as reimbursement documentation.

Note: not all “Menu Boards” are unique to Kia, so ACB will continue to review those for co-op eligibility requirements.

If prior approval is needed, the Prior Approval Form can be faxed or mailed to the program administrator:

Kia Motors America Parts Marketing / Co-Op Advertising Approval 111 Peters Canyon Road Irvine, CA 92606-1790 Attention: Priscilla Cantu FAX (949) 468 – 4875

Once approved, dealers will receive an approval code that will need to be included with the claim form.

Note: Kia reserves the rights to deny Co-op reimbursement for any advertisements that do not, in Kia’s opinion, meet the standards set forth in these guidelines. Kia is not responsible for legal clearance or advertising content. Kia reserves the right to revoke or amend this program at any time without prior written notice. 2008 Kia Co-Op Advertising Program

GRAPHIC STANDARDS

The following logos have been approved for use in all parts & service communications and merchandising materials:

Genuine Parts, Genuine Service, Genuine Care Logo ( http://adplanner.kia.com/ ) - The left section of this logo consists of the Kia Oval with KIA MOTORS underneath. The Kia Oval contains the word KIA inside with a transparent background. A white background inside the Kia Oval will no longer be accepted! A solid red vertical line separates the right section of the logo. The right section of this logo consists of the words Genuine Parts, Genuine Service, Genuine Care stacked. The specific changes to this new logo are the addition of the words KIA MOTORS underneath the Kia Oval and the separating vertical line.

Kia Motors Logo ( http://adplanner.kia.com ) - This approved logo consists of the Kia Oval with the words KIA MOTORS underneath. The Kia Oval contains the word KIA inside with a transparent background. A white background inside the Kia Oval will no longer be accepted!

The use of the Kia Oval by itself and the use of the old Kia Genuine Parts, Genuine Service, Genuine Care logo will no longer be accepted.

High resolution versions of these new logos are available at http://adplanner.kia.com/ . While on the web site, please review the most current graphic standards that provide a consistent application of the brand name across all media. Everything bearing the Kia name, from business cards to license plate frames must have a consistent look.

Typefaces - Kia dealers will be responsible for complying with Kia standards regarding typefaces and type sizes. This information should be passed along to their local support agencies.

GETTING STARTED WITH CO-OP

If you’ve never submitted for Co-op reimbursement or, it’s been a long time since you have, the following steps will help you.

Step One: Create A Marketing Plan This may be the most important thing you do; however it’s also the step that most dealers overlook. Creating a marketing plan gives you a roadmap for your annual marketing efforts. It helps you get organized so you approach the marketplace in a strategic way. Remember, the key to a successful marketing plan is to have a consistent brand message throughout all communications.

Some key items to include when developing your marketing plan include:  Define the advertising objective.  Establish an advertising budget.  Determine the target audience.

The success of your advertising depends on what you want it to accomplish. Monitoring your advertising is the best way to measure its effectiveness:  Keep a record of the number of customers and the number and type of products or services sold.  Ask customers how they found out about your dealership and keep a log of their answers.  Look for trends in relation to the advertising and media you use and the different times of year.  Maintain a scrapbook of ads so you can track what appealed most to your customers.  Keep track of competitor’s ads.  Set up logs on your website to track online activity.

Before you develop your future marketing plans, be sure to evaluate the effectiveness of past advertising. If your advertising didn’t seem to affect your sales or if you didn’t meet your objectives, it may be time to review your entire plan. A thorough evaluation in hand will enable a more effective marketing and advertising plan in the future. 2008 Kia Co-Op Advertising Program

Step Two: Know the Details of the Co-Op Program Take the time to read through these materials carefully. The program is straight forward, but there are some basic guidelines that need to be followed. If you are using an agency or printer to develop your advertising, make sure they understand these Co-op guidelines as well.

Step Three: Find Out How Much Co-op Money You Have To Spend Kia will reimburse approved advertising and marketing materials up to 50% of what the dealer spends. Dealer 2008 Co-op allowances are calculated at 1.25% of their NET parts purchases from 2007. Exact amounts can be obtained from your DPSM.

Step Four: Choose Your Media A list of “Approved Media” for the Kia Co-op Program is listed in the Guidelines section of this document. The list is intended to provide Kia dealers with some media choices for their advertising. Kia recognizes that there are other marketing ideas that are not on our approved list. For those ideas, prior approval is needed. Simply complete the Prior Approval form (Available on the Parts and Service Co-op CD and at the parts & service co-op ad creator web site located under the Fixed Operations link on kdealer.net.) and FAX or mail it to Kia Fixed Operations Marketing for approval:

Kia Motors America Parts Marketing / Co-Op Advertising Approval 111 Peters Canyon Road Irvine, CA 92606-1790 Attention: Priscilla Cantu FAX (949) 468 – 4875

Step Five: Submit Your Claim Claims should be submitted using the official Kia Parts & Service Co-Op Advertising Claim Form (Available on the Parts and Service Co-op CD and at the parts & service co-op ad creator web site located under the Fixed Operations link on kdealer.net.) Note: You may use a single claim form to submit claims for multiple media.

DO NOT USE ANY OTHER CO-OP ADVERTISING CLAIM FORM. IF IT DOESN’T SPECIFICALLY SAY “KIA PARTS & SERVICE”, DO NOT USE IT.

Step Six: Receiving Payment from the Advertising Checking Bureau (ACB)

Reimbursement payments will be issued by ACB within 8 – 10 days of approval.

Each month Kia dealers will receive a Co-op statement from ACB/Kia. The statement will include the dealer’s Co-op activity. Specifically: - How much money the dealer spent, - How they spent it, - How much is left in their account.

If a claim is rejected for any reason, it will still be included on the statement along with the reason the cost was not covered.

Dealers can use this statement as a quick way to monitor participation in the Co-op program and maximize their investment with Kia as their partner.