TMP results announced 

Brussels, 21.05.2007

The results of the Test Marketing Program (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 Australian Wool Innovation (AWI), IWTO and Australian Wool Services (AWS). The three organisations joined forces in May 2005, contributing $US6.6 million in funding and resources for the project to identify manufacturers, retailers and end consumers who will stimulate demand for fine wool apparel.

Two North American retailers were selected to trial the program; Saks Fifth Avenue and Dillard’s. The industry funds were used for consumer and product marketing, in addition to in-store education programs for customers and sales staff.

IWTO President, Michael Lempriere said the aim of the TMP was to test the degree to which consumer marketing can have a measurable, positive impact on wool sales; and this has been achieved.

“In terms of dollar value of the garments sold, there was between 8 and 12 per cent increase at Saks Fifth Avenue, and between 6 and 7.5 per cent increase at Dillards,” said Mr Lempriere.

“Perhaps the most positive result was the leveraging of funds, with Saks creating media value of over $US7million, from a contribution of $US1.5million.

“Dillards leveraged the $US1.5million contributed by the TMP to create a media value of over $US4.6million.”

AWI Deputy Chairman, Brian van Rooyen said these results show what can be achieved by building good working relationships with key players in the market.

“The recommendation of the TMP is to continue marketing work, but in more targeted ways by selecting specific retail and brand partners; with a commitment of about $US250,000 per year,” said Mr van Rooyen.

“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 United States.

“I think these results show a strong future for wool. With targeted marketing and education of the end-consumer, there is strong demand for this premium fibre.”

For further information please contact:

Henrik Kuffner,
Director General, IWTO
info@iwto.org