Article Number: 4753
Leveraging the power of brands - Consumer awareness, trust lead to greater sales, margins
By Sarah Zimmerman
A key strategy to maintaining margins— even in this less-than-desirable climate—is utilizing brand power. Manufacturers have invested time, energy and money in building brand recognition for decades, and they highly recommend retailers take full advantage of these efforts.
“Branding allows specialty retailers to leverage the power and trust of a well-known national name, while selling products exclusive to the specialty market,” explained George Kelley, CEO of Pergo North America. In fact, Pergo’s recent “Brand Tracking Survey” found that a brand is a significantly important variable in driving value perceptions, which Kelley noted consumers are willing to spend a bit more on in today’s tough economic environment.
And, expanding on the notion, Joseph DeZarn, creative director for Armstrong, defined a meaningful brand as saying, “here is a product in which you can have confidence.” Though he pointed to the fact that brand dynamics remain constant, he also explained the advantages of utilizing this consistency in today’s market. “During unsettling, challenging economic periods consumers exhibit greater aversion to risk, which means the assurance of quality brand names is all the more important.”
Taking it a step further, Patricia Flavin, senior vice president for Beaulieu of America, who recently spearheaded the introduction of Bliss, compared the importance of branding to the importance of air—you just can’t live without it. “Brands are the difference between obscurity and indifference, and relevance and preference. The old-school mentality that flooring is strictly a ‘directed sale’ so brands mean little in capturing dollars is simply a relic of the past.”
Ken Peden, COO of Kronotex USA, parent of Formica, agreed, noting brands can automatically command better pricing, particularly with women. “Women are more comfortable with the security of brand names, so the retailers that actually promote brands usually have a higher closing ratio.” He explained there is clearly a space on the shelf for lower-priced products, as nearly 10% to 15% of shoppers buy the cheapest option, but maintained brands are then left to affect the decisions for the remaining 85% to 90% of shoppers.
However, Elise Demboski, executive director of Wools of New Zealand (WONZ), North America, reminds retailers that while brands are essential and promote confidence in the purchasing decision, the products behind those names had better stand strong. “Nothing degrades a brand faster than poor quality. For a brand to add value, it must be paired with a product of high quality and aesthetic appeal.”
So, what are some of the leading manufacturers doing exactly to keep up the quality, value perception and credibility of their brands?
Above and beyond
WONZ is gearing up to further strengthen the brand through its recent acquisition by Wool Partners International (WPI), Demboski noted. “With the brand already carried by 35 U.S. manufacturer/importer partners, its level of visibility is already prime at both retail and consumer levels. So, under WPI, we will be supporting the brand further with enhanced training and promotion, as well as linking the purchase of our fiber to an accredited program of quality and sustainability.”
Another fairly new venture/player, Bliss—at just two years old—entered the market a winner, according to Flavin. Understanding there are a handful of brands that enjoy top-of-mind awareness for a variety of reasons—longevity, impressive and consistent advertising expenditures—she said Bliss is staying on track with brand promotion. “We have done a number of things, from maintaining a strong advertising presence to developing strong incentive programs for dealers. We also developed proprietary features such as Silver Release and Magic Fresh that our customers can’t get anywhere else, and we’ve taken our product into the multifamily housing market, specifically meeting its needs.”
On the other hand, Armstrong began building its brand in 1917 with consistent investment in national consumer advertising, DeZarn noted. And, to this day, the mill tracks branding on a continuous basis, following overall awareness, innovation, trust, quality and confidence. And, in the down economy, he said the company is investing even more in both its Armstrong and Bruce brands. “We’ve come to the plate with new products (see related story on page one) and programs that put distance between our retail partners and the other guys.”
Another oldie, but goodie—Karastan, owned by Mohawk—has also continued to maintain its integrity over the years. “We continue to promote the Karastan brand both notionally and regionally in partnerships with our retailers,” said Connie Berry, director of marketing for Karastan. For example, she noted the company’s new Web site to be launched this September is geared to assisting consumers in their dreaming and planning phase, then directing them to local retail partners for purchase.
And, in yet another arena, Pergo boasts significant brand awareness, as it invented laminate flooring and continues to be the largest manufacturer and supplier in North America, Kelley said. In line with this, the mill “continues to pursue very aggressive multi-faceted national advertising—both traditional and not.’ An example is Pergo’s “Design Days” meetings for key customers, which will provide attendees with updates on product development and design direction.
Formica, on the other hand, decided now is actually the time to be more aggressive than ever with branding and has continually developed new promotions for both retailer and distributor partners. The company also recently changed its display vehicles and upgraded its entire color pallet. “We decided many months ago that we needed to be more aggressive than ever with our name brand,” Peden noted. “We have continually developed new promotions for distributors and retailers.”
On the floor
Aside from aggressively pushing forward from their end, leading brand manufacturers also offer retail suggestions to fully utilize the power of these names on the showroom floor.
Armstrong’s DeZarn noted the relationship between margin and brand is clear. “We don’t buy cheap, no-name gas because it might hurt the car; we buy brand-name toothpaste because the other stuff is not worth the risk. The higher the risk, the greater the brand power. So, dealers can succeed using brands by offering trend-driven products that homeowners want with a brand they trust.” To help dealers in this, Armstrong recently redesigned its display systems to draw consumers in with branding and then presents products in an “attractive, logical intuitive and easy-to-understand manner.”
Taking an even broader approach, Demboski suggested retailers promote all the benefits a brand represents. She noted successful brands must go beyond the product to embrace a company’s environmental initiatives, community involvement and standards of excellence. “No longer can a company slap a brand on a product and expect consumers to respond. Today’s consumer expects more and wants to connect with the product/company on a deeper level. A brand is the pathway to a mutually beneficial relationship if it is built with integrity and maintained with commitment to excellence at all levels.”
For example, she noted the WONZ brand signifies a product is predominately made of New Zealand wool, which is constructed by a partner manufacturer and has passed numerous quality and performance tests. She suggested messages like this need to be communicated to the customer through the retail salesperson, through brochures and on the retailer’s Web site.
Reiterating the all-encompassing approach, Berry said to actually capitalize on the power of a brand, retailers must mimic that brand perception within their stores. She noted this includes building on the consumer buying experience through the purchasing phase and installation, leveraging the brand in all marketing efforts, positioning the brand prominently on the floor, advertise and promote the brand to drive initial interest and connect the brand with all marketing efforts including online and collateral.
Continuing in that vein, Flavin pointed out the way to leverage a brand is make it work for you, and she warned retailers and manufacturers alike stay in tune with where brands are headed. “The level of brand sophistication will continue to increase, with both the targeting and reach of the brand’s message, particularly online. Green claims will become, out of necessity, more verified and substantial. Fashion will play a greater role, and purchase simplicity will become even more important.”
A key strategy to maintaining margins— even in this less-than-desirable climate—is utilizing brand power. Manufacturers have invested time, energy and money in building brand recognition for decades, and they highly recommend retailers take full advantage of these efforts.
“Branding allows specialty retailers to leverage the power and trust of a well-known national name, while selling products exclusive to the specialty market,” explained George Kelley, CEO of Pergo North America. In fact, Pergo’s recent “Brand Tracking Survey” found that a brand is a significantly important variable in driving value perceptions, which Kelley noted consumers are willing to spend a bit more on in today’s tough economic environment.
And, expanding on the notion, Joseph DeZarn, creative director for Armstrong, defined a meaningful brand as saying, “here is a product in which you can have confidence.” Though he pointed to the fact that brand dynamics remain constant, he also explained the advantages of utilizing this consistency in today’s market. “During unsettling, challenging economic periods consumers exhibit greater aversion to risk, which means the assurance of quality brand names is all the more important.”
Taking it a step further, Patricia Flavin, senior vice president for Beaulieu of America, who recently spearheaded the introduction of Bliss, compared the importance of branding to the importance of air—you just can’t live without it. “Brands are the difference between obscurity and indifference, and relevance and preference. The old-school mentality that flooring is strictly a ‘directed sale’ so brands mean little in capturing dollars is simply a relic of the past.”
Ken Peden, COO of Kronotex USA, parent of Formica, agreed, noting brands can automatically command better pricing, particularly with women. “Women are more comfortable with the security of brand names, so the retailers that actually promote brands usually have a higher closing ratio.” He explained there is clearly a space on the shelf for lower-priced products, as nearly 10% to 15% of shoppers buy the cheapest option, but maintained brands are then left to affect the decisions for the remaining 85% to 90% of shoppers.
However, Elise Demboski, executive director of Wools of New Zealand (WONZ), North America, reminds retailers that while brands are essential and promote confidence in the purchasing decision, the products behind those names had better stand strong. “Nothing degrades a brand faster than poor quality. For a brand to add value, it must be paired with a product of high quality and aesthetic appeal.”
So, what are some of the leading manufacturers doing exactly to keep up the quality, value perception and credibility of their brands?
Above and beyond
WONZ is gearing up to further strengthen the brand through its recent acquisition by Wool Partners International (WPI), Demboski noted. “With the brand already carried by 35 U.S. manufacturer/importer partners, its level of visibility is already prime at both retail and consumer levels. So, under WPI, we will be supporting the brand further with enhanced training and promotion, as well as linking the purchase of our fiber to an accredited program of quality and sustainability.”
Another fairly new venture/player, Bliss—at just two years old—entered the market a winner, according to Flavin. Understanding there are a handful of brands that enjoy top-of-mind awareness for a variety of reasons—longevity, impressive and consistent advertising expenditures—she said Bliss is staying on track with brand promotion. “We have done a number of things, from maintaining a strong advertising presence to developing strong incentive programs for dealers. We also developed proprietary features such as Silver Release and Magic Fresh that our customers can’t get anywhere else, and we’ve taken our product into the multifamily housing market, specifically meeting its needs.”
On the other hand, Armstrong began building its brand in 1917 with consistent investment in national consumer advertising, DeZarn noted. And, to this day, the mill tracks branding on a continuous basis, following overall awareness, innovation, trust, quality and confidence. And, in the down economy, he said the company is investing even more in both its Armstrong and Bruce brands. “We’ve come to the plate with new products (see related story on page one) and programs that put distance between our retail partners and the other guys.”
Another oldie, but goodie—Karastan, owned by Mohawk—has also continued to maintain its integrity over the years. “We continue to promote the Karastan brand both notionally and regionally in partnerships with our retailers,” said Connie Berry, director of marketing for Karastan. For example, she noted the company’s new Web site to be launched this September is geared to assisting consumers in their dreaming and planning phase, then directing them to local retail partners for purchase.
And, in yet another arena, Pergo boasts significant brand awareness, as it invented laminate flooring and continues to be the largest manufacturer and supplier in North America, Kelley said. In line with this, the mill “continues to pursue very aggressive multi-faceted national advertising—both traditional and not.’ An example is Pergo’s “Design Days” meetings for key customers, which will provide attendees with updates on product development and design direction.
Formica, on the other hand, decided now is actually the time to be more aggressive than ever with branding and has continually developed new promotions for both retailer and distributor partners. The company also recently changed its display vehicles and upgraded its entire color pallet. “We decided many months ago that we needed to be more aggressive than ever with our name brand,” Peden noted. “We have continually developed new promotions for distributors and retailers.”
On the floor
Aside from aggressively pushing forward from their end, leading brand manufacturers also offer retail suggestions to fully utilize the power of these names on the showroom floor.
Armstrong’s DeZarn noted the relationship between margin and brand is clear. “We don’t buy cheap, no-name gas because it might hurt the car; we buy brand-name toothpaste because the other stuff is not worth the risk. The higher the risk, the greater the brand power. So, dealers can succeed using brands by offering trend-driven products that homeowners want with a brand they trust.” To help dealers in this, Armstrong recently redesigned its display systems to draw consumers in with branding and then presents products in an “attractive, logical intuitive and easy-to-understand manner.”
Taking an even broader approach, Demboski suggested retailers promote all the benefits a brand represents. She noted successful brands must go beyond the product to embrace a company’s environmental initiatives, community involvement and standards of excellence. “No longer can a company slap a brand on a product and expect consumers to respond. Today’s consumer expects more and wants to connect with the product/company on a deeper level. A brand is the pathway to a mutually beneficial relationship if it is built with integrity and maintained with commitment to excellence at all levels.”
For example, she noted the WONZ brand signifies a product is predominately made of New Zealand wool, which is constructed by a partner manufacturer and has passed numerous quality and performance tests. She suggested messages like this need to be communicated to the customer through the retail salesperson, through brochures and on the retailer’s Web site.
Reiterating the all-encompassing approach, Berry said to actually capitalize on the power of a brand, retailers must mimic that brand perception within their stores. She noted this includes building on the consumer buying experience through the purchasing phase and installation, leveraging the brand in all marketing efforts, positioning the brand prominently on the floor, advertise and promote the brand to drive initial interest and connect the brand with all marketing efforts including online and collateral.
Continuing in that vein, Flavin pointed out the way to leverage a brand is make it work for you, and she warned retailers and manufacturers alike stay in tune with where brands are headed. “The level of brand sophistication will continue to increase, with both the targeting and reach of the brand’s message, particularly online. Green claims will become, out of necessity, more verified and substantial. Fashion will play a greater role, and purchase simplicity will become even more important.”
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Thursday, March 28, 2024