By Steven Feldman
DALTON—If there was ever any doubt as to Mohawk’s commitment to the hardwood flooring category, its 2008 product introduction is proof positive. A 150-plus product launch between May and August is accompanied by a three-pronged story, Innovation3, designed to facilitate the selling process for its dealer partners.
When the dust clears, Mohawk will have invested more than $150 million in the category over the past year, according to Brian Carson, president, Mohawk Hard Surface. That investment includes everything from the purchase of the Columbia Flooring assets and retooling of its three facilities to R&D, inventory, samples, advertising and Internet technology.
“We are putting our money where our mouths are,” Carson said. “We have a real opportunity to add value and differentiate. There is a big headwind in the market, but we made the decision to surge ahead because the retail base needs an answer.”
Mohawk believes the category represents opportunity because hardwood remains aspirational and is not price sensitive. Consumers will pay more for styling. “If you look at the retail base, margins continue to get squeezed because of the sameness of the products they are selling,” Carson said. “There is a race to the bottom in terms of pricing. So the opportunity is to differentiate with styling, eco-friendly design and a story where retailers can add value for the consumer and, in turn, increase their profitability.”
The story is one of innovation. “The idea is to change the way hardwood is sold,” said Ben McNabb, hard surface brand manager. “We want to get away from product and price. Wood has never done well selling from a merchandising unit. There is no true identity. We believe our identity is innovation.”
The components of Innovation3 are:
1. Scotchgard Protector with Advanced Repel Technology
2. The environmental story
3. Uniclic technology Scotchgard
What does Scotchgard mean for the retailer? It is a profitable selling differentiator, according to Dennis Szczybor, director of product management, hard surface. “This is a true performance benefit additive,” he said. “Scotchgard offers repelency, cleanability and soil build-up resistance.” An added benefit, he said, is the strength through cobranding of Mohawk and Scotchgard, which owns a 99.1% brand recognition.
While Scotchgard had always been known to protect against catastrophic stains and marks, the cleanability advantage is accentuated in hardwood, Szczybor said. “Most hardwood purchases still revolve around a few key species and finishes. Particularly now, dealers are looking for ways to differentiate themselves and keep these volume products profitable. Scotchgard technology is a way to do this.”
Szczybor said when consumers have a dozen stores offering red oak, they often wind up focusing their decision on price. “But if you have a way to demonstrate why your red oak is actually different, suddenly your store has an advantage. And only Mohawk hardwood dealers will have this.”
Scotchgard Protector Advanced Repel Technology is available on a variety of Mohawk hardwood products, including oak, cherry, maple, walnut and hickory. The majority of products in the Lineage and Revival collections feature Scotchgard.
The green story
The overall theme is Mohawk is an environmentally responsible company. More than 100 hardwood SKUs fit into its Greenworks program, according to Chastity Land, marketing specialist. She noted that as green becomes a requirement, Mohawk has embarked on a number of green initiatives.
They include:
1. The reclamation of wood from around the world. Reclaimed wood products utilize antique elm and heart pine flooring recovered from structures in the United States and Asia. While these products can be scarce, expensive and difficult to reinstall, Mohawk has made these woods more accessible by creating engineered styles that use veneer faces of reclaimed material to provide the beauty of the old, while producing multiple planks that are perfectly milled and less likely to split or warp. Mohawk Artiquity products include antique heart pine styles salvaged from the great textile mills of the South and a distillery in Kentucky, plus antique elm recovered from ancient structures in China. Selections from Zanzibar Reclaimed and Queenstown feature domestic heart pine floors that are over 120 years old and Chinese elm that was originally cut between 600 and 800 years ago during the Ming Dynasty.
2. Vendor certification through the Forestry Stewardship Council. Certification of hardwood helps ensure resources are not obtained illegally or from poor practices such as clear cutting. Third-party certifiers evaluate forest management activities (forest certification) and tracking of forest products (chain-of-custody certification).
3. Sustainable certification by Appalachian Hardwood Manufacturers, where Mohawk sources only from a region where for every tree that is cut down, two-and-a-half are planted.
4. Most recently, PureBond Formaldehyde-free engineered flooring technology, where the biggest benefit is indoor air quality. “As people spend more time indoors, this has come up more often,” Land said.
Mohawk’s internal recycling and recovery systems have dramatically reduced waste and energy use. And Mohawk even has offerings designed to keep old wood out of landfills while taking advantage of its unique character and beauty.
“There’s been more and more press about things like illegal harvesting,” Carson said. “The reality is that timber when harvested responsibly is renewable and sustainable. Factories when they are running correctly recycle their own waste and turn it into energy.”
Patented glueless technology
The Uniclic patented locking technology for Mohawk branded hardwood allows the retailer to sell a tested system with confidence, offer faster installation (reducing labor costs) and develop a cash-and-carry business. “You open up hardwood sales possibilities for DIY customers who like the laminate installation method but want real wood,” McNabb said.
This method allows for fast, easy angled or sliding installation on the sides of the plank. End joints feature a drop-lock that allows for an easy install. This drop-lock system eliminates seam separation over time, but allows room for each plank to expand and contract.
McNabb said that the Uniclic system hardwood can either be floated or glued down. “That gives you even more options and can reduce floor preparation time as well. Also, floating is cheaper to install than gluedown, so the retailer can pass on the savings to the consumer.”
New products
The Mohawk hardwood line is divided into four collections:
1. Lineage: The essential collection of domestic oaks, solids and engineered.
2. Revival: A premium collection of domestic exotics, solids and engineered.
3. Rarity: Imported exotics, both solid and engineered.
4. Artiquity: Surface treatment products—handscraped, reclaimed and distressed.
In Lineage, introductions include Rivermont, a ¾-inch solid oak featuring 16 SKUs. It offers a broad range of styling options and strong value. Belle Meade is a ¾- inch solid oak in 10 SKUs featuring a cleaner, classic look.
In Revival, Pastiche is a 3/8- inch engineered oak that is the first to feature the Uniclic installation system. It is being offered in five SKUs. Aria is a 1/2-inch engineered plank featuring the new Uniclic system in seven domestic exotics like maple and walnut. Arcadia is a 1/2-inch engineered oak with Uniclic that is being offered in three SKUs. Marsalis is a 9/16-inch longstrip oak with the Uniclic system in three SKUs.
In Artiquity, Capistrano is a 3/8-inch engineered oak with handscraping in four SKUs. Zanzibar adds a 1/2-inch engineered product featuring an exotic with hand scraping and a ½-inch engineered plank using reclaimed wood with a skip sawn look. All Zanzibar additions are Forest Stewardship Council (FSC) certified or reclaimed.
In the Rarity Collection of exotics, Dividia adds a 9/16-inch longstrip exotic SKU with Uniclic. Elysia is a ½-inch engineered exotic that gets five new SKUs. Finally, 10 new SKUs will be available for Bahia, a 3/4-inch solid exotic product featuring wood from Brazil.
“Products are being added across the board,” McNabb said. “With these enhancements, Mohawk dealers will have a hardwood line that allows them to compete at virtually any price point, from high-volume basics to unique designer styles that offer exceptional margins and quality.”
Carson added, “While Mohawk is thought of as an oak company, we have demonstrated that we can sell a mix. I challenged the sales team to sell more upper-end product and said if they did, we would continue to support those lines. And that’s what’s been happening.”
Internet technology and tools
Dave Duncan, vice president of marketing, said he had never witnessed a hardwood flooring introduction to this extent, adding that the reason Mohawk stresses innovation is because it is meaningful to the consumer. “It betters consumers’ lives and improves dealers’ profitability.”
With such a comprehensive investment in advancing itself in the wood category, the marketing team is charged with connecting the dots. “How do we make it meaningful to the retailer and consumer? We must try to take this information and distill it down to keep it simple.”
To that end, Mohawk utilizes two Web sites, including mohawktoday. com, which launched May 19 and has over 20,000 registered users and more than 15,000 new unique users monthly.
In addition, Mohawk continues to invest heavily in national advertising. It is already is touting its Uniclic technology, and the promoting of Scotchgard begins Sept. 1. “We try to connect with the in-market consumers and drive them into our retail partner stores.”
The Mohawk strategy entails creating pull when other manufacturers are hunkering back and not doing a whole lot, Carson said. Duncan added, “We will reach 76% of our target market 10 times. Anything over four times is considered stellar.” He noted that Mohawk has increased its advertising spending 50% from 2007 and its hardwood flooring spending is three times what it was last year.
