Vermont Teddy Bear to Expands Ads for Gift Services
The Vermont Teddy Bear Co. Inc. plans to expand radio advertising for its Pajamagram gift service, in fiscal 2003 following a successful April 2002 launch in four markets: New York, Boston, Philadelphia and Chicago.
The service generated $295,000 in net sales in the three months ended June, 30, primarily related to the Mother’s Day selling season. The service is modeled after the Bear-Gram gift delivery service, providing customers with a gift that includes an assortment of pajamas, gowns, robes and spa products, the company said.
Radio advertising will also be expanded next year for other gift services. As the company invested in radio and catalog marketing for its new gift services in fiscal 2002, consolidated marketing and selling expenses increased to $14.8 million or 40.2% of net revenues from 39.7%.
Next month the firm plans to launch its Tastygram gift service. The company has decided to focus the activities of its subsidiary SendAMERICA exclusively on food related gift products, its most successful category, under the service mark “Tastygram”.
Net revenue for SendAMERICA increased to $361,000 in fiscal 2002 from $47,000 last year as the company mailed three catalogs for each of its major holiday selling seasons: Christmas, Valentine’s Day and Mother’s Day.
Growth in the Bear-Gram business was driven primarily by increased net revenue from the company’s PreFUR’d Member loyalty marketing program and other Internet marketing programs which have lower marketing and selling costs as a percentage of net revenue generated than the firm’s traditional radio advertising campaign, the firm said.
The Vermont Teddy Bear Co. Inc. reported 2002 revenue of $40 million compared to $37.3 million one year ago. The year ended June 30.
