Periodical
STATISTICAL REPORT '11 - Floor Covering Institute
STATISTICAL REPORT '11 - Floor Covering Institute
- No tags were found...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
July 23/30, 2012<br />
News<br />
3<br />
Sturrus steps down, Babula takes lead<br />
Clarion Industries names new president, CEO<br />
By Raymond Pina<br />
[Shippenville, Pa.] Tony Sturrus announced<br />
he was stepping down as president and CEO<br />
of Clarion Industries, a vertically integrated<br />
manufacturer of particleboard and laminate<br />
flooring, based here, on July 25. The board of<br />
directors at Clarion Industries appointed Mike<br />
Babula, a fellow investor in Clarion Industries<br />
and former vice president of sales and market-<br />
Flooring America: Focus on referral business<br />
By Raymond Pina<br />
[Orlando, Fla.] Nearly 350 Flooring America/Flooring<br />
Canada members gathered here<br />
July 9th for its annual summer convention. The<br />
group focused on its Fast Phase II program that<br />
combines locally aimed TV and radio spots,<br />
web-based technology and training to increase<br />
its referral business through online testimonials<br />
and old-fashioned word of mouth.<br />
“It’s becoming more difficult to win the<br />
hearts and minds of customers with traditional<br />
advertising,” said Keith Spano, president,<br />
Flooring America. “Word of mouth is track<br />
able and inexpensive. Our Buzz Advertizing<br />
campaign is a new way to stay top of mind<br />
with our customers and getting people to talk<br />
about our products and unique services.”<br />
Supporting the strategy is data from Reuters,<br />
highlighting that 70 percent of customers con-<br />
ing, to succeed Sturrus.<br />
“The company is moving into<br />
another stage of development and<br />
it requires a leadership change,”<br />
said Sturrus. “I approached our<br />
board a year ago with a plan to<br />
create a deeper, more technical<br />
managemen t team internally and<br />
Mike was the best prospect based<br />
on experience and knowledge of<br />
Tony Sturrus<br />
Clarion and its customers. That<br />
plan put us in a place where Mike is<br />
now president and CEO. Our business<br />
has a solid foundation and I’m<br />
confident in Mike. I’m leaving my<br />
invested capital in the company.”<br />
Sturrus said the transition will<br />
allow him to focus on other business<br />
interests and his family.<br />
Sturrus and Babula were<br />
sult online reviews or ratings before making a<br />
purchase while 92 percent of consumers value<br />
word-of-mouth testimonials over advertising.<br />
What’s more, the study revealed 75 percent of<br />
consumers mistrust advertising.<br />
Guest speaker Andy Sernovitz, author of<br />
Word of Mouth Marketing, suggested members<br />
send free emails for friends and family<br />
sales instead of spending thousands of dollars<br />
printing out fliers. He also keyed in on<br />
unique services and products, such as flood<br />
proof vinyl floors, that are easy to remember<br />
and discuss. And, Sernovitz stressed the<br />
importance of searching the Internet for any<br />
comments about their stores — thanking<br />
those who commented favorably and apologizing<br />
and seeking solutions for those with<br />
negative comments.<br />
Dealers who sign up for the $87 per month<br />
Fast Phase II program receive a free iPad featuring<br />
an application to help consumers fill out<br />
testimonials as well as a system that automatically<br />
filters testimonials to members homepage,<br />
Facebook, Twitter and other social sites.<br />
The Build the Buzz campaign is also being<br />
supported by TV and radio ads featuring<br />
family and friends referrals to locally-owned<br />
Flooring America or Flooring<br />
Canada locations.<br />
“Our customers know they<br />
want a new floor but not much<br />
more beyond that,” said Marcia<br />
Hewey, direct of marketing,<br />
Flooring America. “Now we<br />
can leverage the words of her<br />
friends and family who have<br />
already been through the process.<br />
We’ve also added more<br />
diversity to our ads with different<br />
ages and ethnicities.”<br />
among a group of investors that purchased<br />
Clarion Industries from Tarkett for $26 million<br />
in 2009. With Tarkett as its original sole<br />
customer, Clarion Industries now supplies<br />
OEM laminate flooring to a number of the<br />
industry’s leading suppliers, distributors and<br />
retailers. Prior to joining Clarion Industries<br />
Babula served as president and CEO of<br />
Franke, a leading international supplier of<br />
kitchen systems.<br />
“I’m going to keep to our strategy of providing<br />
a domestic platform that executes extremely<br />
well and build upon it going forward,” said<br />
Babula. “It’s important that we have this transition<br />
and we expect it to be seamless for our<br />
customers, employees and shareholders.” FCW<br />
Members who are already deeply involved<br />
in their local communities are uniquely<br />
positioned to leverage this modern referral<br />
system, said Sue Barlett, owner of Charlevoix,<br />
Mich.-based Barlett’s Home Interiors. Barlett,<br />
a longtime Flooring America member, sponsors<br />
her local sport teams and donates to the<br />
library and battered women’s organization.<br />
“We already do a lot of referral business but<br />
this program will step it up,” she said. FCW<br />
Flooring America’s summer convention<br />
Carpet One: New wool carpet, click LVT<br />
[Orlando, Fla.] More than 500 Carpet<br />
One Floor & Home members attended the<br />
group’s Team of Champions summer convention,<br />
held here July 11-13, which focused<br />
primarily on new product.<br />
Eric Demaree, Carpet One president, told<br />
dealers that they need to get noticed, get into<br />
the consumer’s consciousness. “The best way<br />
to do that is to drive our combined product<br />
knowledge, selection and service locally,” he<br />
said. “Ultimately, it’s in each individual store<br />
where the battle is won.”<br />
The focus of this year’s convention was on<br />
new product, including Just Shorn, a high-end<br />
collection of New Zealand wool carpeting, and<br />
mechanically locking luxury vinyl tile (LVT).<br />
“Those who seek this type of luxury product<br />
will only increase as consumer confidence<br />
improves,” said Paul Johnson, a Carpet One<br />
owner in Tulsa, Okla. “The Just Shorn collection<br />
has a great green story and it’s beautiful.”<br />
Mike Mostad, general manager of Missoula,<br />
Mont.-based Loren’s Carpet One, said<br />
he was going to pick up the Just Shorn line<br />
at convention. “We have a new upper-end<br />
furniture store in our new building and their<br />
clientele will go towards this new line,” he said.<br />
Mostad said the biggest potential lies with<br />
the group’s recent advent of click LVT. “We’re<br />
pushing big into LVT,” he said. “Nationwide,<br />
that category is coming on like laminate did 20<br />
years ago. And to be competitive, you need a<br />
click LVT at glue down price points.”<br />
Also introduced were coordinated commercial<br />
carpet and carpet tiles to complement the<br />
existing hard surface Core Elements program.<br />
“These products are specifically designed<br />
to target Main Street commercial,” said<br />
Demaree. “We have come to this convention<br />
with products and programs that continue to<br />
help our members differentiate themselves.”<br />
Carpet One also reported that efforts to<br />
attract customers by pairing the strength of its<br />
buying power and product knowledge with<br />
digital and social media has driven 65,000<br />
leads from its website to local stores. FCW<br />
Kitchen of the Year features Shaw’s Epic<br />
[New York] Shaw’s Epic hardwood was<br />
the featured flooring in House Beautiful’s 5th<br />
annual Kitchen of the Year in Rockefeller Plaza.<br />
Poised to be the “new American living<br />
room,” this year’s kitchen was repositioned to<br />
generate more space and reconfigured to look<br />
and feel like a real home, according to Newell<br />
Turner, editor and chief of House Beautiful.<br />
Designed by Mick De Giulio, the con-<br />
struction of the kitchen began in early 2012.<br />
De Giulio said the inspiration behind the<br />
development was his own kitchen.<br />
“It’s all about kitchen centric living, all<br />
living can be done in this space,” said De<br />
Giulio. “I wanted to create a space that I would<br />
want to eat in. This is it, this is my style.”<br />
Shaw’s Epic in gold rush walnut was used in<br />
the kitchen and in the butler’s pantry. Made of<br />
recycled bi-product, Epic utilizes 50 percent less<br />
of the tree, and its handscraped and distressed<br />
look offers a time worn visual. It is also Cradle<br />
to Cradle certified. De Giulio stated that he will<br />
be using Shaw’s floors again and worked with<br />
the company to create his own chevron detailed<br />
pattern in the butler’s pantry.<br />
“People don’t want to compromise on<br />
style but they also want sustainability. I chose<br />
Shaw’s Epic because I wanted something stylish<br />
but organic,” said De Giulio.<br />
Continued on page 23<br />
Shaw’s Epic is the featured flooring<br />
for this year’s Kitchen of the Year.