Opening Our Eyes to the Possibilities of 2009

"The real voyage of discovery consists not in seeking new landscapes but in having new eyes." Marcel Proust

2008 is almost over. Can I hear a 'hellya'?!

"Fresh Eyes" ~ Although painful, the challenges we have been presented in 2008 have helped us all approach each day a bit differently, and with purpose. In the home building industry, we are all 'Doing more with less'. We have eliminated the unnecessary, and raised our eyes to focus on the biggest opportunities and the fastest returns. I would venture to guess we are all smarter, leaner and more efficient, and absolutely more customer focused than we have been in a long time. That can't be a bad thing in the long run.

"Leaders keep their eyes on the horizon, not just on the bottom line." Warren Bennis


2009 will bring continued challenges ahead for us in the home building industry, but also a great deal of opportunity. The bottom line, we have hopefully all learned from Albert Einstein, who defined Insanity as "Doing the same thing over and over again and expecting different results."

2009 Opportunities include approaching existing home buyer groups differently; from how we sell to female and Hispanic home buyers, for example, to the product offerings and options we offer to differentiate your home from the next builder's. Green building products and practices and indoor air quality will continue to become more important as the consumer becomes more educated.

Emerging home buying groups, like the graduating Generation Y multi-family group and Move Up but Scale Down baby boomers will offer new opportunities for those of us who can change our approach, our product offering, our option catalogues and the fundamental way we relate to the home buying consumer.

"You cannot depend on your eyes when your imagination is out of focus." Mark Twain

The biggest opportunity for all of us is to continue challenging ourselves: reinventing, focusing on what is most important, and keeping our eyes up. In yoga, we are told that our posture and our body will follow our gaze. After learning all we can from 2008, let's turn our eyes forward, and upward, to make the most of 2009. We are all smarter than we have ever been. We can do this!

Thanks so much for your readership this year. Congratulations on everything you have learned and applied and on your personal and professional growth in 2008.

Happy New Year.

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Stop by and meet Krisann at IBS, in the Hearth and Home Technologies booth.

International Builder's Show

Las Vegas Convention Center

January 20-23, 2009

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

'Green' and Baby Boomer Women - Free Phone Seminar Monday 12/8

The National Association of Baby Boomer Women is hosting a free phone seminar on Monday, 12/8/08 at 3pm EST. Diane MacEachern, author of Big Green Purse: Use Your Spending Power to Create a Cleaner, Greener World, will be offering listeners tips and guidelines for reducing their environmental impact during the holidays. She'll also cover topics such as green gifts to consider, holiday lighting, going organic--and not just for your foods, but for wines, beers, and other beverages. This teleseminar covers your entire holiday season, right down to the Christmas tree, and of course, the post-holiday season. There will be something for everyone searching for ways to be "eco-friendly!"

Monday December 8th, 3pm EST

Call 1-712-580-7706

Conference Code 1735162

The female baby boomer is the single most powerful group in US purchasing power. Listening in to the seminar may drive thoughts about better ways to speak to green in the new home sales process, and to meet the needs of this consumer in general.

The Big Green Purse is designed as a resource guide, guiding women how to 'Use your spending power to create a cleaner, greener world." Great resource, great reading!

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Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

European Kitchen Design Review

Mix of Natural Wood With Stainless Steel and Laminate - Zurich

Many of you know about my recent trip to Europe, including Amsterdam, Zurich, Lucerne and Milan. I brought back photos of kitchens that emphasize some common design elements. Enjoy!

Stand outs to me included:

• Mix of man made/technical materials with organic naturals
• Clean Lines
• Smaller footprint
• Use of graphic elements emanating from nature
• Key focus on great lighting

Graphic design elements and terrific lighting

Graphic design elements - etched glass room divider

The jury is out on this chandelier...

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Options Magazine Article - Selling Through Experiences and Connecting With Your Customer

Options Magazine is one of the respected trade publications for the home builder design center audience. In the new edition, check out the article on page 20 that reviews selling through experience, and the differences of shopping patterns by gender. In the home design center environment, we must adapt our selling style to best meet the needs and buying behavior of the homebuyer.

Read the article here by clicking on the cover image of the new edition. Subscribe to electronic mailing of new future editions here (free of charge). For those of you who received a printed copy this week (hopefully few of you in this green focused environment), the issue went to press with several editing errors, you will find a clean copy of the article on line for printing and forwarding.
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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

What Happened To The Jones' ?! - Selling Options to the 'Simplifier'

Hello all - This post is coming to you from Europe, where I am taking great photos to show you design influences from Amsterdam, Zurich, and tomorrow, Milan.... New post very soon!

Perfect for the Simplifier Consumer Interested in Experience and Design

Heat & Glo's Contemporary Fireplace

Red 40

The October Harvard Business School review features an article by Harvard professor John Quelch on the new breed of consumer – the middle-aged Simplifier.

This new consumer can be recognized by her refusal to ‘buy-in’ to the conspicuous consumption so popular in the 90’s and early 2000’s. John Quelch calls out the following characteristics:

Downsized- The simplifier perceives that they have more ‘stuff’ than they truly need, and looks to downsize and simplify.
Experiences- The simplifier seeks to add to life through rich experiences, not possessions. Dining out, foreign travel, spa experiences, learning a new sport, activity or hobby all fit the desires of this emerging consumer group.
Possessions– They are embarrassed by their possessions, especially those flagrant indicators of their wealth.
Wealth– Although this group is self assured in their wealth, they remain comfortable leasing their car, renting a vacation home, and no longer feel it necessary to amass possessions.

John Quelch tells us empty-nester baby boomers make up a large portion of this group, already trading in their large SUV’s for a Prius. They seek detail and architectural character in their new homes, and even special spaces to display a few carefully chosen items from their life ‘experiences’, be it travel, or painting lessons. They seek low maintenance, smaller spaces. From a design perspective, we see this consumer seeking clean, modern minimalism.

While this consumer is downsizing, they are not downscaling, and they value quality over quantity in goods. High end finishes and new home add-ons such as wine storage, closet organization, and luxury spa bathrooms will reach this consumer. Adding additional fireplaces in the home add to the ‘experience’ for this consumer, be it in the kitchen, bedroom or bathroom. Sarah Suzanka’s now 10 year classic “The Not So Big House” becomes even more of a guide in creating a finely crafted and well designed home interior that will satisfy this consumer.

John Quelch points to EBay and the internet as the high tech equivalent of a yard sale allowing these consumers to rid themselves of unnecessary things and start fresh.
The October 2008 issue of Details gives well to do, style conscious men tips on how to minimize the showy appearances of wealth and status in these uncertain times. A recent Wall Street Journal article discusses the same, as well as John Quelch’s article in The Economist, “Too Much Stuff”.

When selling to this consumer, speak to quality, design, durability and green aspects of features and upgrades. This consumer may be more willing to upgrade in interior experiential home options rather than status exterior home upgrades. Think outdoor living rooms, luxury shower heads, art niches, fireplaces and top end granites. The important thing to this consumer is quality without showiness. The Jones’ be damned.
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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

101 Fresh Colors Inspired By Nature

Apartment Therapy had a great piece referencing House Beautiful's recent published color palette inspired by the elements. In 4 slide shows, House Beautiful showcases colors inspired by Earth, Air, Fire and Water.

(This is close enough to "Earth, Wind and Fire" to hook me into a mental earworm of "Shining Star" and "Boogie Wonderland" - "Honey, you... are... my shining star...")

"Fire"

The New Cosmo Modern Fireplace by Heat & Glo

Back to color - There are 101 colors in the presentation, within the following inspirational groupings: Earth, Air, Fire and Water. Click each of these links to see a slide show of paint colors. It makes sense that within each element, the colors work beautifully with each other. The swatches shown here are Apartment Therapy's top picks from each palette.

Color is the first element of design that is noticed by the viewer. It is also the least expensive update in merchandising a retail space as well as a home. In your design centers and model homes, where could you update a wall or room with color to create more visual impact, bring your presentation more 'current' and 'fresh', and connect to your home buyer?

Paint is cheap.
Maintaining design credibility with the home buyer with current minimal staff and budget? Priceless.

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Betting On A Little Luxury

Heatilator Caliber Direct Vent Fireplace and Luxurious Blue Pearl Granite Surround

CVS drugstores recently announced the launch of a new (very) high end beauty shop, named "Beauty 360". The new concept will be strategically placed next to some drugstore locations, and will carry luxury skin care, cosmetics and fragrances, and offer manicures and other beauty treatments. Their positioning seems to compete with the luxury Sephora stores (now, there is a spot to kill an afternoon and a few hundred dollars!). Mary Lou Gardner, the senior category manager for beauty, is quoted as saying "If you create the right environment, you can sell any brand."

Unique retailer J Crew is also headed upscale, with a new focus of creating exciting spaces where shoppers want to "hang out", and bringing even more luxury into the brand, from higher end fabrics to high end details in the garment finishes. Even Godiva Chocolates is still opening new stores in traditional and lifestyle malls across the continent.

A recent post on EBrand marketing points out that even though customers are spending less in the market place overall, they are not giving up affordable luxuries. Creating a beautiful browsing experience enhances this consumer experience.

Most of us have chosen not to give up our Starbuck's habit, nor stop wearing cosmetics or getting our nails done. What does this mean to you and your design center?

Consumers are willing to invest in small luxuries that create a personal home environment unlike any other. The 'smaller' upgrades are often higher in gross margin, and the mark up less noticeable to a consumer than in a category such as , say, appliances , which may be price comparison shopped by the consumer on the Internet or local big boxes. Of course, it is mandatory to stay below the 'psychological price barrier', or it will not appeal to the consumer. In example, we will increase incidents and overall volume of upgraded fireplace surrounds when pricing is $999.00 versus $1100.00. Profit and margin are much better in the long run.

Focusing the design center experience on the experience takes the consumer eye off of upgrades and options as commodities, (read PRICE) and helps the consumer look forward to their home, as they 'designed' it, and the fact that it is unlike any other home. This also differentiates you as a builder. The experience can start before the consumer enters, continue through the browsing, consulting and selection process, and even end with a hand written thank you note.

Experience is about emotion, and for those of you who have heard me speak lately, you know I believe emotion connects with your home buyer unlike anything else. In "Unleash the Emotional Appeal Of Your Product" Rita McGrath, Harvard Business Review, McGrath drives us to strongly consider our target consumer segments, and the lifestyles and behaviors that make up these segments. She asks us to consider the situation of the consumer; their mindset, fears and expectations. Finally, consider the emotions that you can appeal to. The article encourages experimenting, and trial and error as you find what works the best with whom.

At Hearth and Home, we are having exceptional results offering affordable luxury in fireplace surrounds. Our assortment includes a few extremely design oriented, rich granites and marbles that are priced as 'best' in the good, better, best of our assortment. For a relatively small price, we find consumers (both at retail and in new construction applications) are very willing to pay for 'What I like" or "What matches" or in the active adult and move up - semi custom market "What I want". Blue pearl granite and marron brown marble are selling to move up, semi and custom and active adult buyers with terrific results.

Review your product assortment in every category for 'affordable luxury'. Place the best items high (yet touchable) in your displays, and let me know how it goes. We will talk about product placement and consumer perceptions of value in a future post. In the meantime, I'm off to Starbuck's.

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Are Real Estate Downturns Ever a Good Thing? News From The Multi-Family Trends Conference

Guest Blogger - Jim Plucker, Architectural Services
Hearth and Home Technologies

Are downturns always a period of forced change known for belt-tightening and cost- elimination, intensely focusing on maintaining profits while exiting markets that don’t have enough potential?

Yes, if you are going to survive, these changes will help your odds of at least staying in front of your customers if not in front of your competition. And what happened to the bottom line? Even though organizations were efficiently structured for a base of 1.4 million starts a year, the customer base just turned small and stingy. Now, smaller competitors have an efficiency edge and can take healthy slices of tasty market share.

The messages given this June at The Multifamily Trends Conference in San Francisco had generous doses of these types of reality statements along with more forecasting than is usually seen at these meetings.

Bob Gardner, of Robert C. Lesser & Co. , a large real estate consulting firm in Los Angeles, served it up in easy-to-understand terms and graphics. What follows are some of the highlights of his presentation... (Download his presentation slides here)

“Markets always correct on upside and downside”

“Real estate downturns force change”

“Home prices have the biggest decline in recent years (since before ’87)”

“New home sales off 40% since peak in 2005”


But how about growth? Many company fortunes have their roots in downturns and the smart firm takes advantage of great opportunities that emerge during times of change. The key is to have a vision to do so.

Mr. Gardner had analyzed enough demographic data to uncover some demographic realities developing over the next 12 years.

First Reality:
Aging Baby Boomers want to shift into empty nests while a smaller size population of Gen X will not create a lot of demand for those mature family suburban homes.
The Boomers are hanging on tight. Most are ready to downsize soon, but they shouldn’t expect to see their home prices return to the peak levels of 2005 until full pricing returns around 2012.
Boomers still have a lot of options and they’ve demonstrated an interest in multifamily living. But, it has to have a marketing hook whether it’s upscale and urban or community-based living in the traditional suburbs, it must have personal appeal and enduring value.


Second Reality:
Gen Xers, a significantly smaller group than Boomers, are moving into their First Time and Mature family home. Suburban home prices may be dropping, but big price increases in food and gas make suburban living expensive, so Gen X wants to be in a smaller home close-in to work or near mass-transit.
That’s why there will be a growth in the 3 bedroom family condo and luxury apartments. The urban cities still have work to do on their schools systems, but this is a big market that wants urban living in bigger family units.


Future Reality:
Gen Y, the new “pig in the python”, won’t begin to start absorbing homes until they start to enter the “For-Sale” market in 2012. They represent the biggest first-time home buyer group ever. We can expect 1 million new households to be entering the market each year after 2015.



Although it’s hard to predict their preferences as they start family homes, Gen Y is demonstrating a desire for urban-rental lifestyle with floor plans and living areas designed for entertainment. Their taste for quality won’t match their earning capacity, so living units will be smaller with a focus on design versus size in order to have the amenities they most desire.

Suburbs will need to evolve to remain attractive to Gen Y:
A. More walkable areas, including new and existing town centers – urbanizing suburban commercial nodes.
B. Master-planned communities with greater variety of product and higher connectivity.
C. Driven by convenience, connectivity, and a healthy work- life balance to maintain relationships
• 1/3 will pay more to walk to shops, work, and entertainment.
• 2/3 say that living in a walkable community is important.
• More than 1/2 of Gen Y would trade lot size for proximity to shopping or to work even among families with children.
• 1/3 or more are willing to trade lot size and “ideal” homes for walkable, diverse communities.

So what are marketers to do?

Dust off your old strategy and breathe in some new ideas and motivating direction.

1. Conduct strategic planning or update the company’s strategy. Critique project or portfolio performance or positioning
2. Evaluate project performance vis-à-vis the marketplace and take action to improve performance.
3. Analyze market opportunity. Seek advice on how to reposition the company in current markets and what new markets and/or product types to enter
4. Understand demographic trends and consumer demands.
5. Develop a strategy for meeting the changing demands of Boomers and Gen Y.
6. Develop a green strategy.
7. Think about how green will impact your company, products, hiring practices, philosophies, etc.
8. And always remember...

“Markets always correct on upside and downside”

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Jim Plucker is the manager of Architectural Services at Hearth & Home Technologies, the leading manufacturer of hearth systems. His focus is the growth of new business among architects, designers, and multifamily developers. He also develops and administers the continuing education courses offered nationwide by sales and field representatives.

Jim is actively involved in the Education Committee of the Mississippi Headwaters chapter of the US Green Building Council, Jim is also the corporate contact with USGBC, the American Institute of Architects and the International Code Council.

Contact Information:
Jim Plucker
Manager, Architectural Services
Hearth & Home Technologies, Inc.
20802 Kensington Blvd.
Lakeville, MN 55044
952-985-6661
pluckerj@hearthnhome.com

Transition to Transitional - Décor and Lifestyle Trends for Your Home Buyers

Cast Mantels from Fireside Furnishings Compliment Transitional Styles

One of the exciting aspects of my role at Hearth and Home is to stay on top of what is developing in décor and furnishing design, as well as lifestyle trends that impact the way consumers shop and how they live in their homes.

Transitional furnishings are really a response to a lifestyle change that is gaining momentum in the US and Canada. The desire for a more casual, comfortable lifestyle that is 'your best life' is translating at a growing rate into furnishings that are casual, flexible, and comfortable. Crate and Barrel was at the forefront of raising transitional furniture into a strong National visibility, but consumer preference is keeping them in the mainstream.

Traditional furnishings have always been the mainstay of American furniture sales. In fact, currently, 70 % of ALL home furnishings purchases are considered transitional or traditional.

At the recent High Point Market, and at spring's America's Mart in Atlanta (both long standing destinations for traditional furniture design) I found that transitional furnishings and décor were getting top real estate and top billing. Scale was larger (although there was a counter trend for some small but luxurious apartment size furnishings for the growing multi family and urban markets, see Crate and Barrel's apartment sized collection here), design was clean, and natural elements such as wood grain and natural hemp and linen fabrics were everywhere.

The latest Traditional Home Magazine (another long standing resource for the traditional design consumer) is pretty much transitional from cover to cover. Clean contemporary prints, large scale pieces, and natural materials combined with existing or antique pieces create a unique and comfortable setting in nearly every photo feature or article.

Traditional Home's Profile on Prints

Great resources for furnishing your model homes and design centers include Crate and Barrel, Pottery Barn, and Room and Board to name a few. Your consumer shops these retailers, and will be very aware how current your display is in your design center and in your model homes.

Heat and Glo Escape Fireplace fits perfectly with Transitional Décor

Maintaining a current design focus (although we are all in a tight budget year) is important to differentiate you and your home models from the others in the marketplace. These challenging times have made us all a bit more creative in how we market, which is actually a good thing. We really are salespeople now, not just 'order takers'.

Consider unique proposals with local furniture stores in your market - negotiate free or reduced costs on furnishings and décor, for use of model home photography, perhaps a mention in your literature or on site, or even giving out a coupon to the home buyer to use at the furniture retailer after closing on their new home. Remember, if the consumer is purchasing fewer new homes, this means they are purchasing less new furniture as well. The July Las Vegas Market education forum is filled with workshops for furniture retailers on generating business creatively.

Libby Langdon (HGTV's Small Space, Big Style) indicates formal living rooms are 'out', and transitional mixes with current pieces are 'in'. Read her article on the 'ins' and 'outs' of home furnishings here.

The article "I'll take it! (and the Sofa, Too)" from the New York Times highlights that buyers (especially in the upper level) are purchasing some models fully furnished, or purchasing pieces of displays in staged display homes. A quote from the article: "The idea of buying a home fully furnished is starting to appeal to more buyers," said Mr. Paul Csik, Sr. VP of American Properties, "especially in buyers of this caliber." (properties in the 1.895 million to 2.995 million range). He goes on to say that the buyers at this upper end are really making a "lifestyle decision" versus a financial one, and interior design can change the way one lives.

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Contemporary and Green - Heat & Glo Gets The Cover Shot!

The growing trend for contemporary design is melding with the consumer demand to be as green as possible. In the April issue of Met Home, the cover story is "Renovation Goes Green and Gorgeous!" The title of the article is "Urban Eco-tecture", which highlights Bay Area architect Anne Fougeron's rework of a SoMA loft into a family home and work offices. The live-work project won an honor award from the American Institute of Architects.

The Heat & Glo multi-sided fireplace is featured prominently in the dining area, framed "in a floating eight-foot high Carara marble wall". A raised hearth extends the length of both sides of the fireplace, and creates a niche perfect for seating or displaying art. See a slide show of finished images of the loft.

Finishes for the home include original concrete, poured resin and concrete, steel, glass and wood. Furnishings include trademark mid-century pieces, and staples from Design Within Reach. Accessories are original pieces of art, minimally and strategically placed, with appropriate scale for the high ceilings of the loft.

Your new home purchasers will also be interested in contemporary and clean design, balanced by green materials, products and practices. Heat & Glo offers a very exciting line of contemporary fireplaces that meet National and regional green building programs, The Modern Collection.

When specifying fireplaces, you can be confident that a direct vent fireplace will meet LEED and other green building programs. IPI technology, available on many Heat & Glo products, is a patented technology that saves gas, energy and money by lighting only when needed, rather than a standing pilot light. In addition, you can speak to your home buyer about protecting the indoor air quality of your tightly constructed homes by using a direct vent system versus unvented or wood fireplace systems.


A recent white paper from Calvert, a 'socially responsible' investment management firm, surveyed sustainable practices by the top U.S. home builders. From the "Greener Pastures for America's Homebuilders?" report: "In the green building market there is a first mover advantage: Companies that make a concerted effort to integrate sustainability into project sites, construction materials, and construction processes, as well as to provide energy, water and habitat conservation options in finished products, will be able to build a brand image as the environmental choice for home construction. This brand will help environmentally conscious consumers make their selection of a home builder." You can receive a free copy of the white paper here.


A key point of the report indicated that lower scoring builders may or may not be addressing the green issue, but the lowest ranked builders "make virtually no mention of the environment on their Web sites or in other reports...".


Consumers understand that green is not an all or nothing proposition. Most likely at this point, (just from a controlling cost perspective) you have already improved your impact on sustainability, conservation and environmental factors. Your current product assortment already reflects some green choices: make sure you are calling it out to your consumer, through your Web site, printed materials, design centers, point-of-sale and especially through your selling team. Work with your manufacturer partners for information and training to sell options and upgrades to green minded consumers. For more information on how fireplaces fare with the green building programs, read this informative article from my colleague, Jim Plucker.

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor and lifestyle trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Capturing the HEART of the Home Buyer - Emotional Purchases versus Commodity Comparisons

Those of you who have heard me speak recently know this is a hot topic we are capitalizing on at Hearth and Home. Men and women shop differently. For a retail science perspective, most retailers are merchandised and presented for the manner in which women shop.

We know that women drive 80% of home improvement decisions (Lowe's study), but overall, more than 85% of all consumer purchases. Isn't a new home the largest consumer purchase that a consumer is likely to make?

Back to the basics. Men are hunters, women are gatherers. Men approach a retail experience with focus and intent. They know what they want, enter the store, and walk directly to the item, then leave. Unless necessary, they will rarely choose a cart. Milk; BAM! Bread; BAM! to the front of the store, eyeing for the shortest checkout line. Visual cues are the fastest method for reaching the male shopper, but he will be much less likely to add on to his purchase.

Women gather and experience. Enter the store with an idea of what they need, still will typically get a cart. Women turn to the right to start to shop (74% of shoppers begin shopping to the right). In a grocery store setting, you will see the seasonal and sensory departments placed around the perimeter of the store to lead the shopper through: floral, card and gift, bakery, produce, deli. All senses are engaged; very effective with the female shopper. Fresh bread or flower aroma? BAM! Ripe avocado or tomato to touch? BAM! Sample pasta salad at the deli? BAM! Fresh latte steaming (sound, taste, smell) at your coffee cart? BAM! For any of you ever in the Twin Cities, check out local grocery experts Lund's and Byerly's - they set the bar very high.

Enter for milk and bread, leave with much more. It's the experience.

The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary by Joseph Michelli is a wonderful read that really boils down the key philosophies that will drive consumers to pay 4 times as much on a half caf, no whip, soy almond latte at Starbucks as one could at the local gas station for a 'good cuppa joe'. The truth be known, coffee is a commodity. It is bought and sold on commodity markets just like wheat, oil or coffee.

With no value added additions, the focus for the consumer will ALWAYS be price. (97 cent gas station coffee) By adding surprise and delight, service, and the customer's ability to personalize their coffee experience, the perceived value to the consumer is huge. Could millions of consumer's really be paying 4 times as much for a cup of coffee? You bet.

It is about the experience. When one enters Starbuck's, all senses are engaged, current music playing (and available for sale along with various gifts), coffee aroma, the sound of steaming milk, even the color of the retail environment is messaging: (greens for growing beans, reds and browns for roasting beans, blue to represent brewing coffee, and pastels to represent the coffee aroma). Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture by John Moore Wireless Internet, a comfortable club chair, and yes, a FIREPLACE, all add to the experience. Although later version prototypes have moved away from this concept, store layouts were originally designed to allow the customer to watch the theater of the coffee process and chat and engage with the baristas. As you all have experienced, one may come in for a coffee, but may leave with a cookie, a mug, or upgrade to a larger size.

As of late, you all have heard the news that Howard Schultz felt the company had gone off track from core principals. He is back at Starbuck's, and he just re-engaged his original store design partner to return as well. You can bet we will see the 'wall' in the service area move down or become more transparent, as Howard works to bring the 'experience' back to Starbucks. This fall the Starbuck's store design team is headlining the International Retail Design Conference (held in Seattle) and there is much discussion about a possible new store prototype designed with the 'experience' in mind.


The experience in our design centers can be much the same. When the consumer sees their option upgrades as commodities, and the selection experience is a 'checklist', price is the natural comparison factor. I know all of you love hearing "This faucet is only $99 at Home Depot!".


In our design centers, how can we make the experience happen? Creating an experience for the consumer takes time and personal connections (we are all working with smaller staffs now). It takes choices and the ability to personalize (SKU reduction focus' have impacted every single builder). But it is important. Very important.


If we consider a fireplace, cost will always be the focus when it is about the 'appliance'. But, we have proven results that show the consumer is willing to pay for options and upgrades when we deliver the experience. In our setting, this means fireplaces that burn, chairs in front, decor on the wall, and the ability to create a unique combination of fireplace, surround and mantel that will remain the heart of the home for a lifetime.

Of course, the consumer views the fireplace as the heart of the home - where is every family photo taken/ Where are holiday decorations displayed? Where do we gather after dinner on Thanksgiving? If you Google "Family Fireplace" in Google Images, you will find family photos at fireplaces from all over the world.



To the female consumer, she views the whole wall as the 'fireplace' : mantel, surround, art or decor, and oh yes, that box in the middle. In the facings category, she is extremely likely to choose an option or upgrade when offered, if we offer the right items for your consumer in your market. We don't need thousand of sku's, let us help you find the right sku's for your market. (Hearth and Home Technologies is also in the retail business, don't forget.)



Once again, it is about the experience: when your consumer feels they have 'designed' their fireplace by choosing a mantel, a stone or marble surround, and a decorative fireplace front, this is no longer a commodity that drives a price comparison. You have created her experience.



Although these specifics are about creating the fireplace experience in your design center, take it one step further - what else can you offer your home buyers to add perceived value to your homes, and the purchase and design process you offer as a builder, and design center? I would love to hear what you all are doing that works!

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners. Contact her at brownkr@hearthnhome.com or 952-985-6537

Learning From Retail: The Neighborhood Factor

Learning From Retail: The Neighborhood Factor

National retailers are creating a local connection, emphasizing community ties and a sense of neighborhood. USA Today reports "It's a beautiful (shopping) day in the neighborhood", highlighting Starbuck's promotional efforts indicating they have the best coffee in the neighborhood. Go on line to http://www.starbucks.com/ to locate a store, and you will even be able locate the Starbucks location nearest you with an upcoming community event, charitable event, book club meeting or even an arts and crafts event.

Applebee's slogan "It's a whole new neighborhood." jives with it's latest TV ads, "you're not just our customers, you're our neighbors." Tesco's newest grocery stores are named "Fresh and Easy Neighborhood markets". Lowes recently relaunched their website that encourages you to "come and meet your new neighbors."


Electronic trends have shown the American consumer is seeking a real sense of community. (look at the meteoric rise of social and business networking communities, from MySpace to FaceBook to LinkedIn).


Community and neighborhood concepts have permanently impacted retail store design. Enclosed shopping malls are becoming a thing of the past, the last American full scale mall constructed in 2006. Lifestyle shopping centers are presenting the consumer with a feeling of a little downtown, gathering places, and designed to emphasize the outdoor environment, allow the consumer to linger, mingle and interact. Restaurants with cafe fronts are typically placed throughout the centers. Once again, window merchandising is becoming important at families and couples stroll along to 'window shop'.

Typically lifestyle centers feature a center architectural attraction that draws the consumer and creates a space to meet, relax and interact. The newest Archi-Tech magazine highlights Tempe Marketplace in Arizona, where the mall has interactive fountains and water cascades with lighting, music and a giant center fireplace. The Tempe Marketplace website has links to "Community", inviting you to join forums including fitness / wellness, arts and earth friendly groups.

Once again, what does this mean to your design center? Staff should be knowledgeable about communities, and local amenities. Builders should deliver a folder with printouts of area coffee shops, theaters, active options, and local shopping places ready to go. Continuing with the feeling of community and neighborhoods, how about providing some information about area clubs and volunteering opportunities to help a new home purchaser get involved right away?

Hedgewood Homes, Atlanta

In new construction, we sometimes forget that we are in the business of creating neighborhoods. Hedgewood Homes, a builder in Atlanta, does a terrific job of highlighting neighborhood and community on their website. Hedgewood points out community features such as public spaces, children's parks, fire pit and swimming pool, but also links to community schools, points of interest and even the local civic center. Consumer's can choose to click "Contact neighborhood" to reach sales staff.

Consider adding links to your community and design center website that creates a sense of neighborhood and community. Walk Score is a great online tool that maps out everything from churches to coffee shops to gyms within walking distance. Enter any address in the US, and Walk Score will also grade the location based on the livability of the neighborhood. With gas prices at historic highs, your new home buyer will love the opportunity to support local businesses and save gas at the same time.

From the Walk Score website: What is Walk Score?
We help home buyers, renters, and real estate agents find houses and apartments in great neighborhoods. Walk Score shows you a map of what's nearby and calculates a Walk Score for any property. Buying a house in a walkable neighborhood is good for your health and good for the environment.

Walk Score encourages real estate sights to add their link to their website. "Home buyers and renters can compare the walkability of properties and see a map of what's nearby."

From Walk Score:

Walkable Neighborhoods
Picture a walkable neighborhood. You lose weight each time you walk to the grocery store. You stumble home from last call without waiting for a cab. You spend less money on your car—or you don't own a car. When you shop, you support your local economy. You talk to your neighbors.

What makes a neighborhood walkable?

Walkable communities tend to have the following characteristics:
A center: Walkable neighborhoods have a discernable center, whether it's a shopping district, a main street, or a public space.
Density: The neighborhood is dense enough for local businesses to flourish and for public transportation to be cost effective.
Mixed income, mixed use: Housing is provided for everyone who works in the neighborhood: young and old, singles and families, rich and poor. Businesses and residences are located near each other.
Parks and public space: There are plenty of public places to gather and play.
Accessibility: The neighborhood is accessible to everyone and has wheelchair access, plenty of benches with shade, sidewalks on all streets, etc.
Well connected, speed controlled streets: Streets form a connected grid that improves traffic by providing many routes to any destination. Streets are narrow to control speed, and shaded by trees to protect pedestrians.
Pedestrian-centric design: Buildings are placed close to the street to cater to foot traffic, with parking lots relegated to the back.
Close schools and workplaces: Schools and workplaces are close enough that most residents can walk from their homes.

As a builder, highlighting neighborhood and community will positively impact your sales, and create referrals.

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537

Marketing to Women - "Women Are The Best Index of the Coming Hour"

I am very excited to announce that Andrea Learned, a highly thought of National expert in marketing to women, shares great thoughts with us on the importance of marketing to women, and what we can learn from 'paying attention'. Learn more from her at the upcoming M2W Conference in Chicago.

I also love this post from Andrea: Women See a Home, Men See A House

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"Women Are The Best Index of the Coming Hour"

Andrea Learned

American philosopher Ralph Waldo Emerson wrote this oft-repeated observation, and I've used it as a tagline of sorts, since founding Learned On Women in 2004. As socio-anthropologist and author Helen Fisher observed in her book, The First Sex: he "correctly discerned another feminine faculty related to web thinking [Fisher's description of how women tend to think more holistically]: women's keen sense of future possibilities."

To me the simple sentence (or clause, I've seen it referenced both ways) makes two great points:
1) That it's worth paying attention to what women are doing, saying, thinking; and,

2) That women are an index - which I take to mean that they are a good indicator, but not necessarily always the final and ultimate word on trends and cultural shifts.

As Fisher continues (p. 19 of the softcover edition, by the way):

"Both men and women have some ability for planning long term. I have found no concrete evidence that either sex is more skilled at this essential task. However, a few business analysts believe that women are apt to think long term more regularly, while men are more likely to focus on the here and now."

A few immediate examples come to mind - from the realms of investing and home-buying. Women seem to manage to ride out the ups and downs of the market a bit more easily than men are thought to. And, when women buy a first home, for example, they will more likely treat it as a commitment to the neighborhood/community and think way ahead to when they may have their babies and where those kids will go to school, etc. Men, with their more linear-leaning minds, on the other hand, might just see the building materials/construction quality and the price/square foot.

It makes sense on an evolutionary level as well. Women have adapted over hundreds of years to be generally available for the long term (about two decades) in order to raise their kid. Alternatively, men may not have that natural tendency (though obviously many do stick around), and have adapted to more immediacy in all situations. (Why Beautiful People Have More Daughters is a fun and accessible primer on some fascinating evolutionary psychology - if this line of thinking is of interest to you.)

But, I digress. Women, as a whole, are indeed a great indicator because they do seem to see a longer/broader picture, which is why women can be so helpful to marketers in identifying significant consumer shifts. Today's hottest marketing trends may be the "local,""green" and "storytelling" movements, for example. From whence do you think those bubbled up? From the people who have long focused on community and future generations/sustainability - which happens to fit the way a typical woman thinks quite nicely.

One more thing, I really do like to focus in on that "index" part of Emerson's quote a bit more heavily. Yes - women are a great indicator, but don't leave it all in their hands. Men are still very much a part of the world, the last time I checked. Their here and now insights may turn long-held views on their heads, and cause the huge shifts in society that women then will more slowly mold and shape. Gadgets and technology, stereotypically a man's world, for one, completely re-directed culture - right? Now women are the ones to watch - in how they use or don't use it.

Anyway - when you read Emerson, you definitely get the sense that he thought highly of women. His quote is a good, here/now and memorable reminder for those of us mapping out longer term strategies for connecting with consumers.

Andrea Learned
Women’s Market Expert, Author and Trendspotter
Learned On Women

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Andrea Learned is the co-author of Don’t Think Pink: What Really Makes Women Buy – and How to Increase Your Share of This Crucial Market and a respected thought leader on marketing to women and marketplace gender trends. Since 2000, she has studied, worked in and become internationally recognized for writing about how women buy and how gender affects marketing approaches. Known for her independent and progressive take on the topic, Andrea is currently focused on how to make marketing to women obsolete – in that by serving perhaps typically “feminine” brain traits, brands will actually serve the now more holistic buying minds of all their customers.

Currently, Andrea serves on the Advisory Board for The Vine Conference (new thinking on the meaning of community) and the WorldPulse Magazine Founder’s Advisory Council (advancing the world through the support of women globally). In addition to continuing study of the women’s market, she is now exploring the new male consumer - and how the marketing to women rules will apply, or not - for a future book.

Andrea has a B.A. from the University of Michigan. She has written for numerous industry trade publications and regularly writes for the Huffington Post, eBrandmarketing.com, and Marketingprofs.com, as well as her own blog, Learned On Women. She has presented her views to business audiences globally, and has been interviewed for a wide variety of local radio shows and podcasts, as well as for print publications such as AdWeek and The Los Angeles Times.


Note: This post first published, April 3, 2008, on eBrandMarketing.
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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537