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A PubZone Profile
(Titles and employers of interviewees are those in effect at time of interview)

Michael Brossard
Senior Vice-President Marketing & Development
RONA
Brossard, Quebec
Michael Brossard

In November, Michael Brossard, RONA’s senior vice-president marketing & development, was honoured by Advertising Age as one of 2006’s ‘Global Players’ – the only Canadian chosen among nine stars challenging media and marketing tenets around the world.

He was in good company, in the same group with such names as Frank Braeken, Unilever’s group vice-president for China, Hong Kong and Taiwan, and Sophie Gasperment, L’Oréal’s managing director in the U.K..

Brossard, 52, was chosen for many reasons, not the least of which is his strategy to keep RONA in the forefront as Canada’s biggest hardware and home renovation chain amid growing competition, and to build awareness as the company expands across Canada.

John Parisella, president of Montreal-based BCP, RONA’s creative agency, calls Brossard ‘the ultimate Canadian marketer’ because he understands both Quebec and the rest of Canada.

“There aren’t too many that have trained in Quebec and appreciate both Quebec and Canada with such conviction and passion,” says Parisella.

RONA, with sales of $5.6 billion in the 12 months to Oct./06, and 15% – the largest share – of the Canadian hardware-renovation market, is a household name in Quebec where it was founded by a group of hardware merchants in 1939.



National Strategy

A public company since 2002, RONA had to consider its marketing strategy in the rest of Canada, where recognition of the RONA name is still growing, despite numerous acquisitions and a 600-plus store total – and where further competition is expected from the announced entry of U.S.-based Lowe’s.

The answer came from Brossard, senior vice-president marketing and development: “Let’s sponsor the Olympics.” As a result, RONA joined as elite group of six major sponsors of the Olympic Games, beginning almost immediately with Turino, and covering Beijing, Vancouver and London. Vancouver is key. The country is already behind the Canadian Olympic Committee’s ‘Own the Podium 2010’ technical program designed to help Canada become the number one nation in terms of medals won at the 2010 Olympic Games in Vancouver and Whistler. To be part of it would increase RONA’s awareness.

But RONA didn’t simply turn over $4 million to the cause. Rather, Brossard and the management team devised a plan, ‘RONA Growing with our Athletes’, whereby 100 athletes from across Canada each get $8,000 annually for five years to help support and finance their training. Each athlete was chosen, with COC help, to be associated with six or seven local RONA stores which display ‘their’ athlete’s name, sport, background and information on their progress, while stores, schools and community groups will promote the athletes with public appearances, motivational talks and fundraising activities.



Marketing Budget: $130 Million

The Olympics sponsorship comes under four ‘pods’ that Brossard administers, along with a marketing budget of $130 millon ($100 million is for advertising) and a staff of 75. The four ‘pods’ include: 1) advertising, promotion, image and sponsorship; 2) marketing intelligence including Web analysis, visual identity, Air Miles loyalty program, credit cards, gift cards and other CRM; 3) product marketing and strategy including visual identity and the flyer program (about 7 million copies weekly); and 4) ICI, (institutional, commercial, industrial), a growing market for RONA.

Brossard, like Robert Dutton, RONA president, and Claude Bernier, executive vice-president, proximity and specialty stores, is a graduate of HEC Montréal. He honed his skills in progressively senior positions at Robin Hood Multifoods, Catelli, Sports Experts, Delisle, TQS television network, ad agencies BCP and Auger Babeux FCB, and finally Bauer Nike Hockey prior to joining RONA in 2000.

He switches back and forth from French to English and vice-versa effortlessly. And he’s family-oriented.

“My mother and grandfather spoke English to me but I was educated in French,” Brossard says. Married for 25 years, he’s the father of two sons, one a graphic designer and the other studying for law and MBA degrees at the Université de Sherbrooke. He has a pet Schnauzer named Saki, coached hockey for 10 years, and loves sailing, mainly with a brother-in-law on the latter’s boat.

Brossard is also a WWII buff, often using military references in devising strategies, and clearly loving his job.

“ Brossard is a passionate guy,” says Dutton. “He motivates everyone around him and is a real team player with creative ideas. He always wants to know more and do better.”

Brossard is also responsible for RONA’s becoming a sponsor of all Canadian Football League teams, and for expanding RONA national bike tours to benefit Multiple Sclerosis research, his personal cause. (Each RONA senior manager has a personal charity.)

“At RONA, we’re leveraging being Canadian both rationally and emotionally,” says Brossard, who has lived in the Laurentians for 30 years and commutes daily to RONA’s head office in, ironically, Brossard, Que., on Montreal’s south shore. “We favour Canadian suppliers – about 90% of our sourcing is Canadian. And our Olympic athletes come from all across Canada and are role models for young Canadians.”



Developing the Love Mark

RONA is positioned as the ‘how-to’ people, helping anyone to do a home renovation project.

“We’ll accompany him or her every step of the way,” says Brossard. “And, of course, we can adapt for the professional, too.” On his wall when interviewed was a sketch illustrating the steps through efficient, caring service to reach what he describes as the ‘love mark’ – the bond between the customer and the brand.

He has RONA sponsoring the popular TV reality show ‘Ma Maison RONA’ on TVA and, next year, is planning to “come back with something big” on HGTV where he has previously done major spot advertising. Flyers and the Web are RONA’s other main media. The company’s media has been handled for 15 years by Carat Stratégem, Montreal.

RONA’s three main business sectors are in hardware, renovation/decor, and gardening. It has a combination of big box stores, proximity stores (home centre and neighbourhood hardware) and specialized stores, and is the only major home improvement retailer in North America with such a multi-format development strategy. It has six distribution centres and an affiliation with A.R.E.N.A. for international buying. The stores are a combination of corporate, dealer-owned and affiliates. While most operate under the RONA banner, some are under names of acquisitions, including Réno-Dépôt, TOTEM, Botanix and Chester Dawe.

RONA is looking for further acquisitions, and has developed a full program to attract independents into its fold.



What to Expect

Now Brossard is now working on development of new specialized stores to cater to such specific market segments as women and environmentalists.

(“It’s not just a plan, it’s a go,” Dutton confides.)

About 39% of Canada’s hardware-renovation market is held by a combination of RONA and three or four other majors. Brossard isn’t nervous about the addition of Lowe’s.

“Both Home Depot and the incoming Lowe’s only have big box stores, while we have a combination,” says Brossard. “We can offer great prices through mega-buying, a product mix that’s mainly Canadian, and most of all, service.”

RONA’s goal: $7 billion sales in 2007.



(December 18, 2006)












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