Throwback Thursday: HomeClub's new message
The Feb. 27, 1989 issue of National Home Center News, the forerunner of HBSDealer, covered the marketing shift at Fullerton, Calif.-based HomeClub and its 47 warehouse stores under the headline: "HomeClub rethinks marketing strategy."
There was a reason for the shift: HomeClub's advertising agency resigned the $15 million account in order to take on Home Depot and its $25 million national account. HomeClub listened to pitches from 50 advertising agencies before selecting Los Angeles-based Davis, Ball & Colombatto.
Here's how the article described the new strategy from the perspective of HomeClub President Sean Lee: the chain "will no longer focus on having every-day low prices because that is no longer unique to home improvement merchandising. The new agency will create a 'multidimensional advertising plan with a wider scope" than its previous campaign.
At the time, the HomeClub had an unusual retail position, it simultaneously operated as an open-to-the-public home center, and a membership club. Customers could pay an annual fee of $10 to $15 and enjoy 5% discounts on their purchases, or they could simply walk in and shop. The membership angle was designed to create customer loyalty, as well as a powerful mailing list.
Even bigger changes were in store for the chain. In 1992, it changed its name to HomeBase and abandoned its membership program.
HBSDealer’s Throwback Thursday is sponsored by Schaffer Associates, a national management consulting firm specializing in executive search and organizational strategies for the hardware, home improvement, building materials, and consumer products industries. As the premier management consulting firm serving the industry, we help build organizations and leadership teams that foster corporate growth and success well into the future. Contact us at SchafferAssociates.com.
There was a reason for the shift: HomeClub's advertising agency resigned the $15 million account in order to take on Home Depot and its $25 million national account. HomeClub listened to pitches from 50 advertising agencies before selecting Los Angeles-based Davis, Ball & Colombatto.
Here's how the article described the new strategy from the perspective of HomeClub President Sean Lee: the chain "will no longer focus on having every-day low prices because that is no longer unique to home improvement merchandising. The new agency will create a 'multidimensional advertising plan with a wider scope" than its previous campaign.
At the time, the HomeClub had an unusual retail position, it simultaneously operated as an open-to-the-public home center, and a membership club. Customers could pay an annual fee of $10 to $15 and enjoy 5% discounts on their purchases, or they could simply walk in and shop. The membership angle was designed to create customer loyalty, as well as a powerful mailing list.
Even bigger changes were in store for the chain. In 1992, it changed its name to HomeBase and abandoned its membership program.
HBSDealer’s Throwback Thursday is sponsored by Schaffer Associates, a national management consulting firm specializing in executive search and organizational strategies for the hardware, home improvement, building materials, and consumer products industries. As the premier management consulting firm serving the industry, we help build organizations and leadership teams that foster corporate growth and success well into the future. Contact us at SchafferAssociates.com.