Mega Group promoting Brand Source with ads
By Michael J. Knell -- Furniture Today, May 26, 2008
Orlando, Fla. — Mega Group will launch a five-year program this fall to broaden the consumer acceptance of Brand Source as a brand in Canada, beginning with a $1.8 million advertising campaign.
"This is a simple plan with a clarity of purpose," Benoit Simard, Mega president and CEO, told members attending their recent annual general meeting here. "This is a powerful tool to battle the big-box retailers."
The BrandSource Canada program is in its first phase, which includes finalizing the suppliers and product mix, signing up members and beginning a training program, as well as creating signage and other materials.
To qualify for inclusion, Mega members must include Brand Source on their outdoor signage, point-of-purchase materials, delivery trucks and Web sites. They must also have a minimum ad budget of 4% of sales, and must include Brand Source in all their advertising.
"This is a recognized strategy aimed at the big-box market share, not other speciality retailers," Michael Vancura, Mega's vice president of retail operations, told the members.
Mega Group acquired Brand Source Canada in late 2006. The U.S. version of Brand Source, operated by California-based buying group AVB, ranks fourth in "top of mind awareness" among U.S. consumers seeking home appliances, according to Mega officials.
In the face of the big advertising budgets of The Brick, Leon's and other large Canadian retailers, Vancura said, it's tough for independents to be heard.
Complicating the situation further, he said, traditional advertising media such as newspapers are losing ground. Meanwhile, the Internet, shelter magazines and specialty television are on the rise — and those are the channels that Mega will focus on as it promotes BrandSource.
Consumers, meanwhile, are doing more research, particularly on the Web, and are showing greater affinity for brands they know and trust. They are also spending less time walking through stores, said Simard.
"People are using the Web to find information on what they're going to buy and where they're going to buy it," he said. "It used to be said that a great in-store presentation equals success. But the question has become: what if they don't come in the store? Our coming challenge is to protect the footprint in our stores."
Mega members joining the BrandSource program don't have to surrender their current identity to take part in the program, he said.
"What you're branding is what you do really well already," Simard said. "The program is designed to leverage the power of the brand to create consumer awareness and drive sales."
Online advertising on search engines such as Google and Yahoo will be one key to the program. In addition, a new Web site is expected to be launched later this year.
This will be followed with ad campaigns in shelter magazines such as Canadian Living, Style at Home and Les Idées de ma Maison as well as cable TV spots on such popular shows as "Holmes on Homes," "Chef at Home" and "Ricardo & Friends." There will also be some spots on selected network programming such as "Steve & Chris," "Desperate Housewives" and "Salut Bonjour" in Quebec.
Ads will begin to appear in the fourth quarter, with the real push slated for the first quarter of 2009.
"The campaign is designed to help the consumer perceive you as equal to or better than the big box," Simard said. "Consumers will become aware that there is a better alternative."
