Rug Doctor, known for its carpet cleaning machines, has traditionally relied on print advertising but is seeing declining revenues from this strategy. As newspaper sales drop and consumers get advertising through other media like Facebook and Groupon, Rug Doctor needs to change its approach. While the company still believes its brand is well-known, surveys show this may no longer be the case as competitors threaten Rug Doctor's business with stores. To align with changing consumer trends, Rug Doctor is partnering with groups like ASPCA to advertise specific products and is considering investing more in online advertising like Facebook coupons and Groupon to target demographics and draw new customers into stores.
3. Rug Doctor Unchanging Advertising
• The carpet cleaning machine company, known for their
“one-pass technology” and the only patented vibrating
brush style, seeks new customers.
• Time-tested Rug Doctor advertising proudly admits
that their program draws the customer into the store
up to two times (one to pick up the machine and one
to drop off). The store would be given the opportunity
to capitalize on the customer visits by upselling them
other goods they need for their house, such as milk.
• For nearly, 30 years Rug Doctor has relied on newsprint
and in-store printed ads to drive rental and chemical
sales.
4. Print Advertising
• For decades print advertising has been the lead revenue generator
for many businesses. Not in recent years. As of 2007, there has
been a sharp 45% drop in revenue sales. (Exploring Media &
Culture, 2010)
• The reasons for the shift of customer appeal are many. The
immediate reason is the decline of newspaper sales (fewer
consumers are buying a printed newspaper). This quickly equates to
fewer consumers finding business advertisements through the
traditional newspaper.
• Another notable reason are that other forms of media advertising
are advertising to consumers exclusively, such as Facebook and
Groupon.
• Print advertising is no longer the leading revenue generator for
many businesses.
5. A Change to Consumer Trends
Required
• Rug Doctor admitted in a March 2013 conference that they once thought
their company brand was “a household name.” Previously, it had been
their opinion that most consumers would first think of Rug Doctor when
needing to clean their carpets. Recent sales trends and independent
market surveys by the Boston Group do not agree. (March 2013 Rug
Doctor Conference)
• For many years, Rug Doctor basked in a non-competitive market. Now,
competitors like Rent One, Carpet Express and Bissell threaten their “cash
cow” accounts. At great cost to them, Bissell for example, is offering
steeper profit margins when a client (such as Walmart) would drop the
Rug Doctor program and contract with them.
• Though Rug Doctor machines are unparalleled by design, due to relying
heavily on newsprint advertising, they have found it difficult to prove
continued growth. The company’s increase in national sales trends are
what their clients want to see before they accept the carpet cleaning
program.
6. Shift in Advertising
• Many of the account departments operating at Rug Doctor want a piece of
the advertising budget. At times, not all national accounts get the
attention they deserve. When they do get an advertising budget for the
year, their mandate is in-store, print and coupon ads. Unfortunately, at
best, this rewards customers already shopping at the store and doesn’t
draw new customers into the store.
• In recent years, Rug Doctor has teamed up with groups that support the
company agenda to keep households clean. One group, ASPCA (known for
advocating against animal cruelty) is now a partner with Rug Doctor. This
has shined more light on the company products that pet owners need,
such as Urine Eliminator spray and Pet Formula carpet cleaning chemicals.
Rug Doctor’s name has been featured in ASPCA’s facebook and websites.
To support this new partnership, Rug Doctor has generated coupons with
their products.
• Other Health safety groups are being considered for exclusive advertising
7. Social Media Advertising
• If the grandparents do not bring their grandchildren into the store when
they themselves rent the Rug Doctor, then a new generation of consumer
will never be a reality.
• If Rug Doctor doesn’t cut their print advertising budget and invest in
Facebook coupons or Groupon coupons (that get sent directly to specific
demographics) then their sales will continue to shrink.
• If sales continue to shrink then expenses in operating the area routes will
drive the company into red-ink. This will result in company-wide layoffs.
Poorly serviced accounts will begin to stack up resulting in upset clients
threatening to end their contract with Rug Doctor.
• If Rug Doctor spends more money in an Groupon-type of online
advertising their coupons will be sent directly to specific consumers,
directing new customers into their client stores. The clients benefit. Rug
Doctor benefits. Only then will Rug Doctor be aligned with the changing
advertising and consumer trends, removing themselves from the failing
print advertising, and posing the company for future profits.