Article Number : 1077 |
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| Date | 5/30/2006 10:54:50 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1077 |
| Abstract | By Steven Feldman Zell Am Moos, Austria—FN Neuhofer Holz, a global leader in the manufacture of moldings and accompanying accessories, is taking its show on the road. Literally. At a gala event held here May 18, the 365-year-old company rolled out—or better said, rolled in—a 44-1/2-ft... |
| Article | By Steven Feldman Zell Am Moos, Austria—FN Neuhofer Holz, a global leader in the manufacture of moldings and accompanying accessories, is taking its show on the road. Literally. At a gala event held here May 18, the 365-year-old company rolled out—or better said, rolled in—a 44-1/2-ft. 18-wheeler that transforms itself into a portable FN showroom, complete with private office. The concept, which could find its way to the U.S. in the not-too-distant future as FN seeks to penetrate this market, was designed to increase the company’s exposure by taking its products into the field. But this exposure extends beyond just product, according to Franz Neuhofer, co-managing director with his brother, Martin, the 10th-generation Neuhofer to run the business. “We can provide complete solutions. And you can only show total solutions at the point of sale.” FN’s product portfolio also includes shelving and stair systems. FN’s primary customers are distributors and DIY centers—the Home Depots and Lowe’s of Europe, so to speak. In the distributor scenario, the rolling showroom is booked for a predetermined number of days. The truck is driven to that particular country, and the distributor markets the event to its customers, seeking to draw as many as possible to each stop on the road show. The truck will spend a day or two at each of that distributor’s locations before moving on to its next destination. Scenario No. 2 has the showroom finding its way into many DIY center parking lots. The payout is twofold, Neuhofer said. For starters, it’s a “marketing tool for our partners” in that the consumer becomes better educated before entering the store, so she knows exactly what she wants to buy. “This is in line with our strategy to be closer to the consumer.” In addition, “We want to help our partners create easy events.” The goal is for the truck to be on the road 200 days a year, he added. But the road show concept is expected to pay many more dividends for the company, according to Richard Hanusch, FN’s general sales manager, who cited six key points: • Communication. “We always want to create new things. And it’s not enough to have leadership in innovation. You can have good product and bad communication—that’s not good. This is a vehicle for providing the most information to our customers”; • Flexibility. “We are already flexible in production; we have to be flexible in the marketing, presentation and introduction of new product.” As well, this road show concept creates the proverbial “wow” factor; • Strengthening relationships. FN has many strong partners throughout Europe. “This is a better way to strengthen these partnerships because we can be together at the point of sale.”; • Jump on the competition. Instead of waiting a year until the next exhibition, FN can bring new introductions to the retailer or consumer at any time and be first to market; • Brand building. The truck can promote the FN brand across an entire market area with its presence, and • Direct contact. Because FN will be in the field, it can get immediate feedback from customers. The road show launched the week of May 22 with three days in Switzerland followed by three days in Germany. It then moves to Spain for a month, where one of FN’s largest cutomers, the distributor Distiplas, will utilize it for a few days at each of its 12 locations. Targeting The U.S. If you are not familiar with FN Neuhofer Holz or its products, it’s probably only a matter of time. The company is aggressively targeting the U.S. market for growth, where it currently has only about a 3% share of the moldings market—all OEM (other equipment manufacturer, which means private label) business. Customers include Tarkett and Kaindl both in the U.S. and on a global scale; it recently inked deals with Mannington as well as Kronotex for the entire Formica line. FN also supplies the moldings sold at IKEA across the world. In fact, Neuhofer said IKEA is FN’s largest customer, representing nearly 6% of its business. The opportunity in the U.S. is huge when one considers it has a dominant 60% share of the Canadian market and a 30% leadership of the European market, according to FN estimates. All told, Neuhofer pinned FN’s worldwide market share at 11%, putting it among the top three moldings suppliers. Sales in 2005 were about $43 million and are projected between $50 million and $55 million for 2006. As evidence to its commitment to growing its U.S. business, FN opened a warehouse in Charlotte, N.C., earlier this month. The game plan is to open a production facility here before the close of 2007. “What we do [in Europe] we can do in the U.S.,” Neuhofer said. “I predict we will be the market leader here within 10 years.” How does Neuhofer plan on building the FN brand in the U.S.? It started seven years ago, he said, when it began exhibiting at Surfaces. FN increased its presence over the last two years. “The next step is developing distribution. After that, the focus for us will be on innovation, logistics, production and service.” Service refers to supply chain management. “We must be faster to market and have enough inventory,” he concluded. “That will build our customers’ confidence and trust in us.” |