Article Number : 3526 |
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| Date | 8/7/2008 9:16:47 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=3526 |
| Abstract | By Steven Feldman NASHVILLE, TENN.—Carpet One Floor & Home is getting back to basics. At its recent convention here, the focus was on three critical elements of running a successful business: Driving more traffic into members’ stores, closing more sales and raising the average ticket price... |
| Article | By Steven Feldman NASHVILLE, TENN.—Carpet One Floor & Home is getting back to basics. At its recent convention here, the focus was on three critical elements of running a successful business: Driving more traffic into members’ stores, closing more sales and raising the average ticket price. But despite stressing the basics, the game plan is anything but basic. “It’s not just about blocking and tackling,” said Eric Demaree, who was presiding over his first Carpet One convention since being installed as president back in March. “We have supported the basics with an unbelievable amount of new, sophisticated systems, technologies and processes.” Members welcomed the strategy and were “surprisingly upbeat” despite the difficult economic climate, Demaree said. In illustration, he noted that attendance was stronger at this summer’s convention than it was last summer. Why? “I believe our members understand in a tough economy they need to reinvest in their business and leverage everything Carpet One provides. Investing their time was a clear indication they are going to dig in their heels and take market share from the competition.” Another reason members are upbeat, he believes, is because there is still business out there. “They know as Carpet One members they have proprietary exclusives the competition does not have. If you examine what we provided at this convention, along with the tools to drive traffic, close more sales and raise average ticket prices, there is no other retail channel of distribution that can compete across the board with what our members can provide to their consumers.” Driving more traffic Demaree told FCNews that as president of the group, one of his primary responsibilities is to get more footsteps in the front door. One way Carpet One is seeking to do this is by putting together a comprehensive, fully integrated multi-media advertising and marketing campaign that was unveiled at convention. “We have new technology that allows members to customize their advertising on a local market basis and also gives them a lead generation management system that allows them to measure their return on invested marketing dollars,” he said. The multi-media campaign includes a technology that offers a marketing portal, which allows members to blend traditional media (newspapers, radio, TV, etc.) with paper click, email and search engine optimized Web sites with targeted direct mail, all in one centralized location. Why the blend between traditional and new media? According to Dean Marcarelli, chief marketing officer, classic media is still relevant but nowhere near as dominant as it used to be and not as dominant as the Internet is today. “Successful companies need an integrated marketing approach, marrying traditional and non traditional that work together seamlessly,” he said. “Web advertising works seamlessly when blended with classic media. This is what we need to grab the attention of savvy consumers.” Marcarelli stressed that members must realign their marketing plans because a paradigm shift is taking place. In evidence of this: • TV network audience has fallen by a third since 1985. • Newapaper circulation has declined since 1987 peak. • Magazine circulation has declined. • People now spend twice as much time online as they do watching TV. • 164 million people rely on user reviews before making a purchase. • By 2012 the Internet will be more popular than television. • Online advertising will grow eight times faster than any other form of advertising by 2012. Frank Chiera, vice president of marketing, agreed that Carpet One members must be more aligned with how customers shop, and that includes sharing videos, blogging and seeking advice online on how to make her home more comfortable and inviting. To that end, the 2009 marketing plan delivers a pragmatic, integrated plan incorporating in-store operations, marketing, merchandising, financing, etc. “We need to leverage our points of difference now more so than ever,” he said. Specifically, what Carpet One is leveraging is its selling proposition that it is the flooring retail expert. “That’s why our repeat and referral business is so strong,” Chiera said. “We now need to let every household know what sets us apart. We need a plan to get in front of the consumer.” He referred to the plan as “pull marketing tactics: Engage the customer, immerse her in your brands.” That would include incorporating blogs, consumer feedback and social-network sites. As for closing more sales, Carpet One has extended and enhanced the programs members have traditionally taken advantage of. “These include CitiBank financing; new warranties, such as EverGuard, and we continue to make The Beautiful Guarantee our unique selling proposition. All these are designed to close more sales.” (The Beautiful Guarantee states that Carpet One will replace any consumer’s floor, no questions asked, within a certain period if she is dissatisfied for any reason). Carpet One showed members how they can raise average ticket prices by focusing on selling its proprietary brands like Relax Its Lees, which command higher margins. That strategy continued at convention with Resista Soft Style, which Demaree referred to as a major launch offering “the perfect combination of great styling with a terrific soft hand along with advanced stain technology not available in competing products.” The other significant product launch at convention was the Titanium Earthscapes glass-backed resilient program from IVC. “We have such realistic styles and colorations that you really have to get on the ground and ask if this is real word or ceramic,” Demaree said. “It’s the best knockoff of real visuals I’ve ever seen in the resilient category.” At the end of the day, Demaree said it’s not just about being more efficient, it’s not about lowering costs, and it’s not about providing retailers with fewer time-consuming processes. “If you don’t have things like a central advertising portal, you are back to scratch pads and pencils, and you can’t run a business like that. If you don’t have the marketing support like Carpet One members have to entice the consumer to come to the store, it’s tough to survive in this environment. You can’t go to the OK Corral with a shotgun. It’s a war, and we’ve come to win.” |