AWI News - Test Marketing Project results announced
The results of the Test Marketing Project (TMP) have been announced at the 76th Congress of the International Wool Textile Organisation (IWTO) in Edinburgh, UK.
The TMP was a collaborative project between AWI, IWTO and Australian Wool Services, which began in October 2005. The partners contributed US$6.6 million in funding and resources to identify manufacturers, retailers and consumers who would stimulate demand for fine wool apparel.
Two North American retailers, Saks Fifth Avenue and Dillards, were selected to trial the program. The industry funds were used for product marketing and in-store education programs for customers and sales staff.
IWTO President Michael Lempriere says the aim of the TMP was to test the degree to which consumer marketing can have a measurable, positive effect on wool sales, and this has been achieved. “In terms of the dollar value of garments sold, there was an eight to 12 per cent increase at Saks and a six to 7.5 per cent increase at Dillards,” he says. “Perhaps the most positive result was the leveraging of funds, with Saks creating media value of more than US$7 million from a contribution of US$1.5 million, and Dillards creating media value of more than US$4.6 million from the US$1.5 million contributed by the TMP. ”
AWI deputy chairman Brian van Rooyen says these results show what can be achieved by building good working relationships with key partners in the market. “The recommendation of the TMP is to continue the marketing work but in more targeted ways, by selecting specific retail and brand partners with a commitment of about US$250,000 per partner,” he says. “There are some elements of the TMP that are more cost-effective, such as staff training and targeted in-store product marketing, and AWI will continue to support these types of activities.
There has been very good collaboration across the international wool industry to market our fibre in the US. I think these results show a strong future for wool. With targeted marketing and education of the end-consumer it is possible to build demand for this premium fibre.”
Return to Beyond the Bale Issue 28 index page.