Pergo Flooring, one of the world's largest flooring manufacturer/distributors, opened its North American division in 1994. Originally based in Sweden, Pergo commanded a presence in several countries as a premier provider of residential flooring products but was virtually unknown in the United States. Pergo's challenge, therefore, was to introduce a new product and to create sales volume.

Market Goals:

• To introduce a new product in North America.
• To create sales volume
• To capture and efficiently manage audience information for later use

To increase awareness through full-run advertisements in several major publications, and to build both a customer and a dealer database for program tracking and later use.

To hire both an advertising agency and a direct marketing/fulfillment company who would work together, designing and implementing programs for reaching these goals.

Tactical Implementation:

Pergo hired The Richards Group, a local advertising agency, to help design an inbound telemarketing program. Advertisements were created using high-profile four-color photographs and an 800 number to generate inquiries. Industry publications such as Better Homes & Gardens and Architectural Digest, and more generic publications such as Time and Newsweek., were chosen as vehicles.

Based on the theory that inquiries generated through industry publications are from consumers who plan to remodel immediately and inquiries generated through generic publications are from consumers who plan to remodel in the future, inquiries are assigned a priority and materials are sent via first class or via bulk mail. During the inquiry call, operators answer immediate questions about the product and provide callers with information on their three closest distributors, promising to provide the names of five more distributors with the fulfillment of their catalogs. In addition, dealers are provided records of all consumer inquiries in their area.

Results:

Since the program's inception, Towne has provided more than 1,000,000 callers with retail catalogs and has provided dealers with a reliable resource for customer referrals. In 1997, we anticipate this volume to increase substantially. In addition, Towne has worked closely with the Richards Group, redesigning the fulfillment package in an effort to minimize printing, handling, and postal expenses. As a result, Pergo has saved 20% over last year's costs with the implementation of this newly designed package.

Additional programs

In 1996, Pergo decided to run a test to see whether a customer rebate program would increase sales. Towne assisted with the selection of 6,000 Pergo database names based on specific inquiry dates and, after verifying all criteria were sufficiently met, mailed a $50.00 coupon and a "Refer a Friend" card to qualified customers.