Luna – The Making of a Flooring Giant

Situational Analysis:

  • Luna was a small Chicago-based shop-at-home flooring company
  • $6m in annual revenue; Competing with $600mm giant, Empire Today
  • The Challenge: Create a regional flooring brand

The Plan

  • Recognize that Luna was Sales and Marketing company
    • Driven by marketing expenditures and just happened to sell flooring
    • Critical to buy media surgically and efficiently; The gas for the flooring engine
  • Data and research driven understanding of the primary and secondary customers.
    • Know the pain points and perspectives; understand how to message effectively
  • Strategy of Symphony Media Planning, Targeted Media Buying
    • Combination of traditional and digital mediums
    • Surround the target with relevant messaging throughout their day
  • Relationship-based Negotiating
    • Seek Win/Win Relationships with media part
  • Measure everything; Optimize continually
    • Buy more of what works, Eliminate less efficient vehicles

The Results

  • Grew organically to five markets and $80mm in revenue
  • Outspent by 4 to 1 margin; grew to be 30% larger than largest competitor, Empire, in home market; eating market share from leader in all markets
  • Total Brand Awareness against target 73%; Luna Jingle part of societal fabric of Baltimore, Boston, Chicago, Milwaukee and Washington DC

Purchased by competitor at above market valuation multiple.