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Perich Pushes Internet's Elgrande

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Campaign Touts Company's Bare Bones Approach to E-Commerce
DETROIT--Perich + Partners launches advertising this week for Elgrande.com, an Internet retailer of books, music and videos.
The first wave of the campaign is print geared toward potential investors, said Ernie Perich, president of the Ann Arbor, Mich., agency. Ads break in October issues of business magazines such as Wired, Fortune and Inc.
A hand holding a computer mouse is shown against a red background with the headline: "Who holds the full power of the Internet?" To the right, it reads: "You do." Copy goes on to explain the concept of "disintermediation"--rather than use a warehouse distribution system, Elgrande will deliver goods directly from suppliers to consumers, leading to lower prices for the public and higher margins for manufacturers.
"Elgrande.com is the first true disintermediator and will certainly attract the shrewd investor," the copy reads. "Why? Because unlike our competitors, we have no warehouses, next to no overhead, and unlimited growth potential. One day the entire world will work this way. Don't get left behind."
Elgrande, based in Vancouver, British Columbia, will launch a business-to-business trade campaign aimed at vendors in a second phase. The third wave, geared toward consumers, will break after the first of the year, and include TV, print, radio, outdoor and Internet initiatives, said Carlton Parfitt, Elgrande's vice president of marketing.
Annual spending on advertising is projected at $10-12 million to start, Parfitt said, with the goal of reaching the $70-80 million spent by competitors such as Amazon.com, he said.
Perich is the company's first agency. Executives spoke informally with principals at several undisclosed agencies earlier this year, but had a "gut feeling" about Perich, Parfitt said. "There's a personality match and a corporate philosophy match," he said.
Elgrande was formed in April 1998, and launched its initial site last September. It has been focusing on research and technology development since then, Parfitt said. Perich has also been involved in the site's configuration, he said.