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As a result, the company is throwing its $3-million advertising account in review, now handled by Lois U.S.A./Chicago. The company is looking at roughly 15 agencies all based in the Midwest. A decision is expected in the middle of June.
Among Huffy’s biggest concerns is dealing with the competitive demands of larger mass market retailers, which have been gaining more control of the marketplace.
Big retailers like Wal-Mart expect certain advertising requirements before allowing marketers on the retail floor. Some retailers are asking for detailed ad plans before buying product.
‘It is a very competitive market,’ said Jeff Cox, executive vp, Rojack Marketing Group, which is handling the review. ‘Huffy is called upon to perform to a certain level by the mass retail. They’re evaluating a number of things they do and advertising is a part of that.’
Huffy will narrow the review to three or four agencies later this month before deciding on a finalist. Lois will be included in the final round Cox said.
Foreign companies are Huffy’s biggest competitors in the $1-billion bicycle market. The popularity of mountain bikes continues to push growth in the segment. Imports grew at a 5% clip last year, according to the U.S. Industrial Outlook.
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