marketing news marketers know they’re missing data that …€¦ · almost half of respondents to...
TRANSCRIPT
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MARKETING NEWS Marketers know they’re missing data that could enhance their customer profiles ..................... 2
US consumers say coupons, Contests drive social bonds with brands ....................................... 3
Is mobile the next big bump for city and regional mags? ........................................................... 4
Loyalty requires satisfaction with all channels ........................................................................... 5
PUBLISHING NEWS Nature Conservancy magazine takes ads for first time ............................................................... 6
Frommer’s print travel guides a thing of the past? Not so fast. .................................................. 6
Louis Cona promoted to President, CRO of Condé Nast Media Group ..................................... 7
Schlosser named executive chairman of McGraw-Hill Education ............................................. 8
Road & Track drives lifestyle into magazine ............................................................................. 8
POSTAL NEWS US regulators reviewing USPS five-day mail delivery plans ..................................................... 9
U.S. Postal Service names McCann creative agency of record ................................................ 10
RETAIL NEWS OfficeMax goes big with small business store ......................................................................... 11
True Value posts gains in Q4 .................................................................................................... 11
Lowe's, Valspar paint a new partnership .................................................................................. 12
ECONOMIC UPDATE
GDP: 4th
quarter 2012: 0.4 percent. 3rd
quarter 2012: 3.1 percent.
Unemployment Rate: the unemployment rate was little changed at 7.6 percent in March.
Consumer Confidence: improved in February, declined in March. The Index now stands at 59.7
(1985=100), down from 68.0 in February.
April 8th
, 2013
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MARKETING NEWS
Marketers Know They’re Missing Data That Could Enhance Their Customer Profiles
Staff , Marketing Charts . 4/3/2013
57% of marketers feel that they are missing important data points that could provide them
with a more comprehensive view of their customer, while another 30% believe that’s
possible but they’re not sure what they’re missing, per results from a new CMO Council
survey. The findings align with separate results showing that almost half also of marketers
feel that the deluge of data – both structured and unstructured – has highlighted the
importance of identifying actionable insights.
The recognition that key insights are being missed also supports recent findings showing
that marketers are struggling to develop a holistic view of their customers. For example, a
recent report from Acxiom and Loyalty 360 found marketers challenged in leveraging data
for loyalty purposes. Earlier survey results indicate that close to half of marketers are
having trouble identifying their most loyal customers.
Almost half of respondents to the CMO Council survey believe that data has added
complexity to developing customer profiles and intelligence. But data presents opportunities
as well as challenges: a leading 52% of respondents said that big data has helped them
identify new business opportunities, while 44% feel that big data has added visibility and
accountability across all functions who engage and touch the customer.
Still, respondents clearly feel that there is more data out there to leverage than currently
being used. Among those who feel that they’re missing data points, 71% would like to add
predictive analytics around lifetime value, and a majority also would want to add online
customer profiles or user-generated profiles.
Integration of online and offline analytic capabilities, while complex, could enhance
marketers’ view of the customer. But only 3% of respondents believe their online and offline
capabilities are integrated across all functions. And while 46% believe they’re getting better
across the board (while recognizing room for improvement), another 43% say they struggle
to integrate online and offline data (23%) or simply do not integrate them at all (20%).
Other Findings:
37% of respondent are extremely (3%) or moderately (34%) satisfied with their curent
data and analytics platforms and technologies, while 43% are fairly (37%) or very (6%)
unsatisfied. Asked how their analytics platforms were identified and deployed, 40% said that
marketing outlined their needs and IT selected and deployed the platform, while 32%
reported that the internal marketing team selected and deployed the platform.
About the Data: The results are derived from an online audit of 237 senior marketers,
conducted during the third quarter of 2012 and first quarter of 2013. 40% of respondents
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come from companies with more than $500 million in revenues, and 56% are
headquartered in the US.
US Consumers Say Coupons, Contests Drive Social Bonds With Brands
Staff , Marketing Charts . 4/2/2013
Americans just seem to love discounts. Asked what the brands they follow on social media
do to make them want to stay connected to them, 70% of US respondents to an Ipsos OTX
survey indicated that the brands send them coupons for product discounts or free products.
That was the leading response among the actions identified, followed by brands having
contests or requests for suggestions regarding their current or new products (55%).
Interestingly, older groups seemed to respond more to that second point regarding contests
or requests for suggestions about products. While half of 18-34-year-olds said those actions
on the part of brands help foster bonds with them, that percentage rose to 56% among the
35-49 group and 67% among 50-64-year-olds. That’s notable because earlier research has
shown interest in co-creation of products to be high among Millennials. According to the
Ipsos results, this may not be an area of interest only for youth. (A word of caution: the
Ipsos results are based off small sample sizes.)
Meanwhile, other ways in which Americans feel that brands help them feel connected to
them include by:
posting fun and interesting topics/items (36%); creating content worth sharing (27%); answering emails or messages sent by the consumer (20%); and by responding to comments or links posted by the consumer (20%).
Diving a little deeper into the responses on a gender basis, it appears that women are far
more receptive to discounts (82% vs. 57%), but less so to content that is worth sharing
(22% vs. 33%) and responses to messages (16% vs. 25%) or posts (14% vs. 27%).
Looking at the responses of US consumers versus the global 24-country average, the results
indicate that Americans are more easily wooed by deals and discounts (70% vs. 52%), but
less responsive to shareable content (27% vs. 34%) and replies to messages (20% vs.
30%) or social posts (20% vs. 28%).
About the Data: The Ipsos data is based on a total of 4,840 adults across 24 countries who
follow brands online. Respondents were aged 18-64 in the US and Canada, and 16-64 in all
other countries. The survey was conducted from December 4-18, 2012.
The countries reporting were: Argentina, Australia, Belgium, Brazil, Canada, China, France,
Germany, Great Britain, Hungary, India, Indonesia, Italy, Japan, Mexico, Poland, Russia,
Saudi Arabia, South Africa, South Korea, Spain, Sweden, Turkey and the US.
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Is Mobile The Next Big Bump For City and Regional Mags?
TJ Raphael , Folio . 4/4/2013
The mobile Web has been a challenge, to say the least, for even the largest content
publishers, and when it comes to city and regional magazines, strategies range from
exploratory to non-existent.
This month’s issue of FOLIO: has put a spotlight on city and regional magazine publishers
and their strategies for reaching audiences, and advertisers, in the digital marketplace—our
report shows that some publishers in this market are, in fact, responding aggressively to the
changing marketplace despite previously held reservations.
“Most city and regional magazines are struggling to grow digital divisions because we’ve
been print publications all along,” Ralph Martinelli, publisher of New York-based 55,000-circ
Westchester Magazine, told FOLIO: in our April issue. “We’re expanding our digital division
into a separate entity—one of our main goals is to do a tremendous amount of daily digital-
only content that does not appear in print, and we’ve brought in digital-only editors. From a
sales point of view, our digital-only reps partner with the print ad reps to present complete
packages that includes print, digital and events.”
The mobile, digital advertising market could be the next big thing for city and regional
magazines—at least according to a new forecast from BIA/Kelsey, a local media and
advertising research and consultancy firm.
The firm predicts that mobile local advertising revenues will grow from $1.2 billion in 2012
to $9.1 billion in 2017, representing a compound annual growth rate of 43.9 percent. For
the total U.S. mobile ad spending market, the firm estimates this sector to grow from $3.2
billion in 2012 to $16.8 billion in 2017.
“This puts locally targeted mobile ads at 38 percent of overall U.S. mobile ad spending in
2012, growing to 54 percent in 2017,” a statement from the company says.
While search and display is top of mind, the firm notes that other areas of mobile are also
growing:
Display advertising applied to apps and mobile Web inventory is estimated to grow from
$379 million in 2012 to $2.7 billion in 2017. Search will grow from $704 million in 2012 to $5.7 billion in 2017. SMS messaging will grow from $101 million to $162 million in 2017. Video distributed within apps and mobile Web inventory will grow from $38 million in
2012 to $515 million 2017.
Since local mobile ad revenue is estimated to account for a whopping 54 percent of overall
U.S. mobile ad spending, city and regional magazines are well positioned to tap the national
advertising market in ways they never dreamed of. Local communities not only trust city
and regional mags, but these brands have the audience infrastructure and local knowledge
to offer national ad partners exciting new options in their quest for local ad messaging.
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Loyalty requires satisfaction with all channels
Bill Siwicki , Internet Retailer . 4/5/2013
“Omnichannel” is the latest retail buzzword, signifying merchants’ attempts to satisfy
consumers however they choose to shop. Customers are coming at merchants from all sides
in today’s mobile-fueled world and retailers have to be prepared to meet customers’ needs
anytime, anywhere.
A close examination of customer satisfaction with mobile commerce reveals how the
increasingly typical shopper who shops in stores and via PCs and mobile devices draws
conclusions based on more than one channel, says research firm Prosper Insights &
Analytics.
Among mobile users, more than a quarter have used their mobile device to shop at
Walmart.com (28.9%) and Target Corp. (27.7%) and just over one in five (22%) have
shopped Best Buy, according to Prosper. All three receive positive reviews regarding the
mobile shopping experience. 83.4% of mobile users who’ve shopped Target’s mobile site
rate their overall experience as either good or excellent, Prosper finds. 71.9% of those
who’ve shopped Walmart.com and 69.2% of Best Buy mobile shoppers say the same.
However, Prosper took the analysis a step further and applied the Net Promoter Score from
research firm Satmetrix Systems Inc. to see if mobile shoppers were likely to recommend
the respective sites to a friend or colleague. By employing this methodology, one can
evaluate the strength of the retailer’s mobile site as well as loyalty to that particular site,
Prosper says.
Of Walmart.com’s mobile commerce site shoppers, 24.9% are promoters, 30.5% are
neutral and 44.7% are detractors, giving Walmart.com a -19.8% Net Promoter Score, which
is the difference between promoters and detractors.
Among Best Buy m-commerce site shoppers, 26.5% were promoters, 46.0% are neutral
and 27.5% are detractors, giving Best Buy a -1.0% Net Promoter Score.
Among the three chain retailers, Target was the only one to come out in positive territory
with the Net Promoter Score. Of Target m-commerce site shoppers, 39.3% are promoters,
32.8% are neutral and 28.0% are detractors, giving Target a +11.3% Net Promoter Score.
“These findings suggest that a satisfactory mobile experience in itself doesn’t necessarily
lead to retailer advocacy,” says Pam Goodfellow, an analyst at Prosper Mobile Insights. “As
mobile continues to grow, omnichannel retailers are increasingly challenged with converting
their shoppers into buyers—and winning a repeat visit. Delightful experiences, consistent
messaging, and excellent service delivered through all channels are paramount when
building this sought-after, loyal customer base.”
These results stem from the “February Mobile Survey” conducted by Prosper Mobile Insights
of 341 mobile device users.
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PUBLISHING NEWS
Nature Conservancy Magazine Takes Ads for First Time
Bill Mickey , Folio . 4/4/2013
Nature Conservancy magazine, the member benefit of the environmental conservation
organization of the same name, has begun accepting advertising for the first time in its
history. The switch coincides with a frequency upgrade from quarterly to bimonthly. Ads will
appear both in the magazine and on its website.
Sales have been outsourced to James G. Elliott Co., Inc., and publisher Teresa Duran says
the decision enables the organization to diversify revenues in a way that allows more funds
to be channeled to issues of interest to donors.
"We saw an opportunity to welcome advertisers to our mix of partners and direct our
members' donations to the issues they care about by offsetting costs through the ads," she
says.
The magazine's circ is a substantial 650,000 and reader research has revealed a median
household income of $85,000 and interests in travel and sustainable living, in addition to
the obvious commitment to conservation issues. The April issue which is the first to have
the advertisements, has four ad pages, with most from the travel category.
The magazine's app, which launched a year ago as a free, iPad-only product, will also be
getting some added marketing push. Current downloads are at about 12,000, but Duran
says they're going to begin marketing more heavily to the print magazine's circulation, as
well as the more than 400,000 digital readers who get email newsletters from the
organization.
Frommer’s Print Travel Guides A Thing of the Past? Not So Fast.
Dennis Abrams , Publishing Perspectives . 4/5/2013
Last week we reported that Google, which had purchased the Frommer travel brand from
the Wiley Publishing Company, had “quietly pulled the plug” on any further print editions of
the popular travel guides. But it appears that things have changed.
Arthur Frommer, who founded the series in 1957 and sold it to Simon & Schuster in 1977,
said Wednesday that he had reacquired the rights to the brand from Google, and intends to
resume publishing guidebooks.
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“It’s a very happy time for me,” Frommer, now 83, told The Associated Press. “We will be
publishing the Frommer travel guides in ebook and print formats and will also be operating
the travel site Frommers.com.”
Google has confirmed that the brand has been returned to its founder, but stated that the
travel content it had acquired both from Frommer’s and Wiley has been integrated into such
Google services as Google Plus.
The San Francisco Chronicle quoted Jason Clampet, who had reported Google’s decision to
cease publishing Frommer content on Skift.com, as calling Frommer’s reacquisition of the
brand “fantastic news.”
“Everyone I know was hoping this would happen once we saw that Google was just after
content for Google Plus rather than the brand’s history and potential,” said Clampet, a
former editor for Frommer’s. “I think Arthur’s and Pauline’s passion [Pauline is Arthur
Frommer’s daughter] will reinvigorate the series. There are dedicated readers both online
and in print who will stay with a name they trust.”
The terms of the deal have not been disclosed.
Louis Cona Promoted to President, CRO of Condé Nast Media Group
TJ Raphael , Folio . 4/3/2013
Louis Cona joined Condé Nast Media Group just five years ago, but he has quickly ascended
to the top of the organization: company CEO Charles Townsend announced today that Cona
will assume the role of president of the Condé Nast Media Group and chief revenue officer.
“This new appointment reflects Lou’s success in growing ad revenue and evolving our
advertiser relationships into more diversified, strategic partnerships,” Townsend says in a
statement.
Cona joined Condé Nast Media Group in 2008 and has been the company’s chief marketing
officer for the past three years. Earlier in his career, Cona spent four years as vice president
and publisher of Vanity Fair and two years as vice president and publisher of The New
Yorker.
The media group delivers an expanding collection of assets to clients of Condé Nast and in
this role Cona will be responsible for leading all revenue generation at the corporate level—
including advertising and marketing solutions across all of the company’s platforms.
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Schlosser Named Executive Chairman of McGraw-Hill Education
Staff , Publishers Weekly . 4/4/2013
Ron Schlosser has been appointed executive chairman of McGraw-Hill Education’s board of
directors. Schlosser is a senior advisor to Apollo Global Management, which bought MHE last
month. Prior to joining Apollo, Schlosser held senior executive positions with a number of
educational publishers including Haights Cross Communications, Thomson Learning Group
(now Cengage Learning), Elsevier Science and MHE.
Road & Track drives lifestyle into magazine Emma Bazilian , Adweek . 4/3/2013
Move over, GQ? Road & Track, the 66-year-old car magazine has gotten a serious tune-up.
The Hearst Magazines title is introducing a new look, content and focus with the May issue
that editor in chief Larry Webster and publisher and CRO Felix DiFilippo are hoping will set
the book apart from its car-obsessed competitors and give it a men's magazine feel.
The overhaul began last summer when Webster joined Road & Track from Popular
Mechanics, moving the magazine's headquarters to Ann Arbor, Mich., and hiring a slew of
new staffers. "As we looked to the other car magazines, we saw that they were gelling
around a center which was very focused on new car, new car, new car, and a lot of car
reviews," said Webster. "We think our natural niche for Road & Track is more magazine-y.
It’s more longform stories, it’s more thought pieces, it’s all the stuff around the car as well
as the car itself…We’re trying to pull in the romance and excitement of cars."
The new Road & Track will include more lifestyle-focused content, from style coverage to
restaurant recommendations for a road trip. Many of the magazine's new writers, like
executive editor Sam Smith and senior editor Josh Condon, have written for men’s lifestyle
and fashion titles like GQ and Esquire.
Design-wise, the magazine has a new logo, retro (and more upscale) cover look and an
emphasis on photography, plus a larger trim size and heavier paper stock. The look was
overseen by new design director Dave Speranza and takes many of its cues from the early
issues of Road & Track.
The changes have been attracting more high-end advertisers, both in the auto world as well
as luxury goods manufacturers. Thirty-five percent of advertising revenue in the May issue
came from new or newly reintroduced brands, like Jaguar, Cadillac and Indian motorcycle.
A new website is also being rolled out, and a redesigned tablet edition will make its debut
with the magazine's June issue.
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POSTAL NEWS
US regulators reviewing USPS five-day mail delivery plans
Staff , Post & Parcel . 4/4/2013
The Postal Regulatory Commission has issued requests for assistance as it develops a report
on the contentious move, which a significant portion of the US Congress believes is against
the law.
The Commission is looking at the impact of the shift from six-day-a-week to five-day mail
delivery on USPS costs.
The Postal Service announced plans in February to reduce its delivery frequency for regular
mail. Parcel services and priority/express deliveries will continue to take place on Saturdays
under the plans intended to begin on 5th August.
The regulators now want consultants to help its “comprehensive” review of the situation,
issuing two requests for proposals this week.
The Commission said it is looking into how the end of Saturday mail delivery will affect
delivery, mail processing and transportation costs at the Postal Service. It is also looking at
USPS involvement in the US parcels sector and the setting up of separate Saturday delivery
service for packages based on a dynamic routing platform.
The review will be taking account of the ongoing consolidation of the USPS processing
network and the associated slowing of mail delivery standards, but will also look at how
losing Saturday mail delivery will affect service standards and costs itself.
Delivery frequency
USPS, which recorded a $16bn loss last year and expects to lose around $7.5bn this
financial year, believes reducing letter delivery services by a day per week could save $2bn
a year.
The Postal Service has been bound by US federal appropriations legislation to provide six-
day-a-week mail delivery since the early 1980s. However, after last year saw Congress
failing to pass reforms including a move to five-day-a-week mail delivery, Postmaster
General Patrick Donahoe ordered a reinterpretation of the law.
The reinterpretation suggested that a temporary appropriations bill running through to
September 2013 does not include the language preventing five-day mail delivery.
Nevertheless, members of Congress, particularly those on the Democrat side, continue to
claim that USPS is bound to the previous full appropriations bill.
The Postal Regulatory Commission issued an Advisory Opinion back in March 2011 on a
previous request by USPS to move to five-day mail delivery, calculating that the move
would save $1.7bn a year in operating costs.
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However, that Advisory Opinion had concerned a plan that would not have included a
continuation of parcel delivery services on Saturdays, as the latest USPS plans intend.
U.S. Postal Service Names McCann Creative Agency of Record
Rupal Parekh , Ad Age . 4/2/2013
After a lengthy review, the U.S. Postal Service has tapped McCann to serve as its creative
agency of record, awarding the Interpublic Group of Cos.' agency a contract that can last up
to nine years.
In doing so, the USPS is consolidating a variety of marketing services duties under McCann
Worldgroup shops. In January, Universal McCann was named the Postal Service's media
agency of record, and it had also been partnering with Weber Shandwick for PR duties. MRM
is also working with USPS.
The USPS didn't respond to a request for comment by press time and McCann Worldgroup
declined to comment on the matter. The other contenders were not disclosed.
For Interpublic's Campbell Ewald -- the incumbent, which had handled creative, media and
direct marketing for over a decade -- it's a significant loss. But surely parent Interpublic is
relieved to see the entire account stay within the holding company.
This pitch has been full of fits and starts. It began in 2011, then the review was paused.
Almost a year later, the Postal Service split the initial RFP into separate briefs -- creative
and media among others -- and restarted the process. Not only has it been a long process,
but it's a challenged client. The Postal Service hasn't turned a profit in years and due to the
losses attempted to cut Saturday delivery, but that was thwarted recently.
Still, for an agency whose North American operations struggled for the past several years to
make it into any new business pitches -- let alone actually manage to win one -- it's good
news, especially since as a government contract it's business that could be guaranteed for
several years. The USPS still outspends other government entities, such as the Army and
Marine Corps. According to the Ad Age Datacenter, for the most recent full year of spending
numbers in 2011, the Postal Service spent about $95 million.
It's also a sign that things seem to be moving in a positive direction under new boss Harris
Diamond a few months into his tenure. He took over for Nick Brien in November 2012. Just
recently, General Motors awarded the agency more business by consolidating at McCann all
Chevy creative work that had earlier been at Goodby Silverstein & Partners under the
Commonwealth structure.
Before that, Mr. Harris led the creation of a new unit to house the agency's Mastercard
business and hired back creative Joyce King Thomas to lead the work -- a move that was
widely seen as a way to protect the business from heading elsewhere.
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RETAIL NEWS
OfficeMax goes big with small business store
Press Release , Retailing Today . 4/2/2013
OfficeMax Inc. has unveiled a new format in downtown Milwaukee to better serve local small
business customers.
The 5,000-sq.-ft. OfficeMax Business Solutions Center OfficeMax Business Solutions Center
is located in The Shops of Grand Avenue. The new format replaces the previous OfficeMax
store.
"With the launch of our new store, we are pleased to introduce a relationship-based retail
service center focused on partnering with businesses to help them grow," said Ravi
Saligram, president and CEO, OfficeMax.
Some of the services offered at the new concept include web hosting, customized web sites
and cloud storage, as well as computer network setup, software installation and repair.
OfficeMax offers business meeting space in the store and free Wi-Fi that allows customers to
plug in and work. Employees even can help customers set up their websites.
The store also provides business card and sign printing, furniture and space planning,
packaging and FedEx shipping, and document shredding. Products for sale include
convertible laptops, smartphones, printers and shredders.
True Value posts gains in Q4
Press Release , Retailing Today . 4/5/2013
True Value reported “gross billings” of $451.9 million for the fourth quarter, up 2.3% from
the same quarter last year.
“Gross billings” -- a term not used in the co-op’s 2012 earnings announcement -- is a
measure of the total amount invoiced to customers, without subtracting discounts or
adjustments.
The company’s revenue was $340.4 million, up 3.3% from the prior-year quarter.
Quarterly earnings of $29.1 million increased from $12.4 million in the same quarter last
year. The company said the earnings increased primarily as a result of a “fourth-quarter
litigation settlement gain of an ongoing matter.”
True Value did not elaborate on the nature of the litigation.
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For the year ended Dec. 29, gross billings were $1.88 billion, up 1.1% from the prior year.
The co-op posted earnings of $74.9 million, up 24.2%.
“This was one of the most profitable years in the company’s history,” said president and
CEO Lyle Heidemann. “Our largest increase in both retail and wholesale comp-store sales
were in the paint, seasonal, and farm, ranch, auto and pet product categories.”
True Value added 44 new stores in 2012, while providing more than $25 million in loans,
free inventory and other incentives to retailers who rolled out the Destination True Value
retail format, Heidemann said.
Comp-store sales to retailers were up 2.0% on a gross billing basis, and up 1.4% on a
revenue basis, the co-op reported.
Total year-end debt was $185.1 million, up 29.3% or $41.9 million, from $143.2 million a
year ago. The company issued $28.1 million of new notes to its retailers as part of the year-
end patronage dividend distribution and invested an incremental $11.5 million of inventory
in new and expanded assortments in its farm, ranch, auto and pet business.
Lowe's, Valspar paint a new partnership
Press Release , Retailing Today . 4/4/2013
Lowe's has teamed up with Valspar to launch an expanded paint program to serve the
needs of the professional painter. The program includes a comprehensive lineup of Valspar-
branded professional grade products in multiple formulations and finishes that simplifies
paint selection while delivering on the durability and performance requirements of
professional painters. Based on extensive input from pros, the Valspar Pro program also
expands in-store support through custom tinting and color matching services, small batch
mixing as well as direct shipping, volume and value pricing.
“Valspar is pleased to create a best-in-class retail experience for professional painters,” said
Howard Heckes, Valspar’s senior vice-president of global consumer. “We believe this
program at Lowe’s provides a compelling alternative to standalone paint stores by delivering
quality professional paint products at an everyday low price with the added convenience of
one-stop shopping.”
While Valspar has served the professional paint market for many years, this new program
substantially increases the depth of products and services it provides in more than 1,700
Lowe’s retail locations nationwide. Professional painters will benefit from Valspar Pro’s easy
application, uniform appearance, consistent hide, reliable touch-up and factory tinting, all of
which reduce time on the job site and deliver a higher quality finished project. The program
is also supported by a new mobile Web application at www.valsparpro.com that provides
essential information and application advice on various formulations and finishes.
Valspar Pro officially launched in Lowe’s stores March 25 and features the “Pro Challenge,” a
series of more than 300 events taking place in various Lowe’s retail locations throughout the
U.S. The “Pro Challenge” will showcase the performance of the Valspar Pro paint lineup,
provide application advice and other painting tips for pro painters.