Orlando, Fla.—It seemed as if destiny were against Carpet One’s latest summer convention ever taking place. First, the event was switched here from its original Toronto location due to health concerns surrounding the SARS virus, then, just as the market was scheduled to begin, the Northeastern part of the country experienced the largest blackout in U.S. history. But the more than 900 attendees seemed to take it all in stride as Carpet One put on “one of the more impressive events the industry has seen in a while.” With 472 stores represented at the Gaylord Palms Resort & Convention Center, retailers were treated to news that included the launching of an impressive and innovative $26 million advertising campaign, which was voted on and approved overwhelmingly by members, and the roll-out of the buying group’s Selectafloor system for tile.

Commenting on recent world events that have affected the economy, including flooring prices, Alan Greenberg, co-CEO of CCA Global Partners, Carpet One’s parent company, told members, “In a year of economic uncertainty and global turbulence, Carpet One attained a very high level of achievement.” He went on to mention the company’s exclusive Liz Claiborne flooring program, which was doing “even better than expected,” as well as an economy prepared to turn the corner. “As successful and rewarding as our collective businesses have been in recent years, we see our greatest opportunity in front of us. The economy is showing signs of life. The U.S. gross domestic product grew to a seasonally adjusted annual rate of 2.4% in the second quarter. It was the most rapid growth since the third quarter of 2002. Economic indicators increased again in July, and sales of new homes hit the highest annual rate ever in June.”

Advertising Plans Carpet One needs to be more aggressive in the advertising marketplace so that it has a position of real value in the customer’s mind, Howard Brodsky, CCA’s co-CEO, told attendees. “That takes creative ideas, money and commitment to stay the course. A creative idea that has resonance with the consumer, an idea she can remember. A big creative idea always comes from the consumer.” He went on to mention Wal-Mart’s advertising campaign and how successful it has been. Brodsky believes that with the help of Doner Advertising of Detroit, the largest independent advertising agency in the U.S., Carpet One can raise its brand awareness as it has never done before. Doner was named by Carpet One as its agency of choice following an extensive search which included dozens of firms. Some of its other clients include Mazda, Blockbuster, Serta, LaZ-Boy, Petsmart, Progressive Corp. and Arby’s. The campaign includes a series of commercials, each telling the story of how Carpet One offers more choices.

Part of that story, as Brodsky noted, is that Carpet One carries flooring, not just carpet, and should be thought of as that one-stop shopping experience. “There can be only two or three players in any category,” he explained. “We know that Home Depot and Lowe’s are not going away. We must be one of the top three players and the only player in the specialty retail category. It’s even more critical today with more than 50% of people buying at the first store they shop, and 25% buying at the second store they shop. “No one [currently] owns the space of being the dominant player in the specialty flooring category, and someone will own it,” he added. “We have that unique opportunity now. Doner knows retail, it knows the consumer, and it understands home furnishings,” said Brodsky. “It knows what it takes to win and to be the dominant player. We have the right agency at the right time.”

Carpet One will spend $26 million on the campaign over the next year, with the national ads focused on a quartet of promotions. Carpet One members will also support the national advertising with local coverage, as the second half of the commercials can be customized to each individual store and market. “We are going to get some national advertising, which I believe we’ve needed,” said Wayne Seahock of Seahock Flooring Center in St. Petersburg, Fla, a Carpet One member since 1991. “The industry as a whole could be doing a lot of advertising. It’s what has been missing.” “Carpet One’s focus on more upscale national advertising is something that is going to affect my business a lot,” said Jeff Moore, sales representative of the Carpetmart in Rapid City, S.D., a Carpet One member for five years. “I think the industry, as a whole can do a lot more advertising. You see some of the fiber companies doing it. It would be a positive thing to see the mills promote as well.” “I’m a little fish in a big pond,” said Roy Rock, owner of Rock’s Carpet One in Amory, Miss.

“Regarding the advertising, Carpet One has a lot greater vision than I do of how it can steer 1,400 stores. It has proven itself on other things. Carpet One has a vision and, since the 1980s, it has brought the name a long way. You have to trust in it; that’s what you do when you sign up as a Carpet One member. “Being a member for the last six years, Carpet One has helped me separate myself from the other carpet stores,” he added. “Even if you don’t take advantage of all it has to offer, such as the samples, which is difficult for small operations like mine to do, Carpet One helps you separate from the competition, it gives you a better feeling about yourself and your business. Even if you are involved on a smaller scale, it gives you a much better showroom.” “The advertising [we saw during the general session] was great,” said Dane Woodard of Carpet One of Warner Robins, Ga. “It’s wonderful. It is going to really help us out. I think the local part of it is good too, it should benefit us greatly.”

“I’m excited about the advertising campaign,” said Erica Huck, finance manager of Carpet One of Lenawee, Adrian, Mich. “We have done advertising for a while, but we have never been so focused on making Carpet One such a national brand. “There are many commercials you see on TV that stick with you,” she added. “I think it’s very important Carpet One does something throughout the country where we are unified as one large group. Having the same branding strategy is important. Many carpet commercials in the past haven’t been attention getters, these are.” The management at Carpet One was pleased with the response of the dealers to the ads shown during the show. “Our dealers are saying they want more of a unified position,” said Greenberg. “They understand the threat of the competition out there and the national brands coming from Home Depot and Lowe’s and other national suppliers and they want to step up. “They have the confidence in Carpet One and in Doner, as well,” he added. “They realize when you spend that kind of money and have an agency like that doing commercials, it’s so far beyond anything any one individual can do.” “The dealers made the right decision in supporting the brand,” said Marcarelli. “They liked the campaign but they understood that deciding on supporting the brand was the bigger idea because campaigns will come and they will go, but building the brand is [crucial]. We showed the branded environment which they embraced. They understand the campaign has to bring in customers, and when the customers come in, the salespeople have to talk in a consistent manner. You couldn’t ask for a better result for the whole convention.”