Lumber

Liquidators Strategic Plan

Laura Brink, Amanda Byrd, & Victoria Croft

Overview:
Lumber Liquidators is an American flooring company specializing in hardwood and
laminate flooring. This company is known for their low prices and wide variety of
flooring options. The company began in 1993 and quickly expanded throughout the
United States and Canada. Currently, Lumber Liquidators has stores in 46 states and
over 1000 employees. Their expansive inventory includes a variety of flooring types
such as:
Solid and engineered hardwood
Laminate flooring
Bamboo flooring
Cork flooring
Vinyl flooring
Butcher blocks
Molding
Tools and accessories
Lumber Liquidators prides itself on eliminating the middleman by negotiating directly
with the mills and passing savings on to the customers. Lumber Liquidators is an
environmentally conscious company that purchases products and materials from
suppliers who practice sustainable harvesting. This practice allows for quicker regrowth in forests.

Strengths

Affordable flooring
Dominate the American flooring
market
Trusted brand by consumers
Expanded sales network
Widespread- Stores all over the
United States
Low labor costs
Brand image

Weaknesses

Opportunities

Growing economy
Consistent profits and sales
Potential to grow and expand from
high profits
Advancing research and
development

Threats

High levels of Formaldehyde in the

flooring
Research
Toxins in flooring
Competitive market
Not a strong international market

Both International and domestic

competition
Bad reputation from situation
Consumer fear
Price changes in materials and
factories
CNN report of high levels of
Formaldehyde in floors, which can
ruin brand image

Lumber Liquidators:
Began in 1993 when Tom Sullivan, a building contractor, began purchasing
excess wood that other companies didn't need and reselling it from the back of a
trucking yard in Stoughton, Massachusetts. The company found its niche market
in hardwood flooring. Lumber Liquidators prides itself on having one of the
largest inventories of prefinished and unfinished hardwood floors in the
industry. There are flooring experts in every store ready to help, and free
samples are available. Lumber Liquidators carries solid and engineered
hardwood, laminate flooring, bamboo flooring, cork flooring and resilient vinyl
flooring, butcher blocks, molding, accessories and tools. Lumber Liquidators
negotiates directly with the mills, eliminating the middleman and passing the
savings on to the customers. The environmentally conscientious company only
purchases from suppliers who practice sustainable harvesting, which allows
forests to heal and re-grow faster. Everything Lumber Liquidators sells (unless
specified otherwise) is first quality, graded to industry specifications, and
available in standard flooring lengths.
Lumber Liquidators Holdings (Lumber Liquidators) is a retailer of hardwood
flooring in the US. It offers an assortment of hardwood flooring products under
the Lumber Liquidators, Bellawood, 1-800-HARDWOOD, 1-800-FLOORING,
Dura-Wood, Quickclic, Virginia Mill Works Co, Hand Scraped and Distressed
Floors, Morning Star Bamboo Flooring, Dream Home Laminate Floors,
Builders Pride, Schon Engineered Floors, Casa de Colour Collection and other
product line names. The company operates in the US. The company operates in
single business segment of being a retailer of hardwood flooring, and hardwood
flooring enhancements and accessories. The company offers products including:
solid and engineered hardwood; laminates; moldings and accessories; and
bamboo, cork and vinyl plank. The company sells its products primarily to
homeowners or to contractors on behalf of homeowners through a network of
around 347 store locations in primary or secondary metropolitan areas in 46
states and nine store locations in Ontario, Canada. The companys products may
be ordered, and customer questions/concerns addressed, through both the call
center in Toano, Virginia, and the website, www.lumberliquidators.com 1
Mission Statement:
Our mission is to continue to bring customers across the country a great product at a
great value, with the best customer service in the industry. 2
Vision Statement:
Our vision is to be the most trusted name in flooring while providing high quality, safe,
and affordable products, along with unattached customer care.

1
2

Lumber Liquidators Holdings, Inc. MarketLine Company Profile. Jun2015, p1-18. 18p.
"Lumber Liquidators: Hardwood Floors For Less!" Lumber Liquidators: Hardwood
Floors For Less! Web. 4 Sept. 2015.

The Situation
1. What is the situation facing the organization?
In March 2015, CNNs Anderson Cooper investigated Lumber Liquidators.. The
company is the largest retailer of laminate flooring in North America. During
the investigation, CNN found that the flooring was not being manufactured in
the United States, but in China. It was found that the flooring made in China
contained extremely high levels of a known cancer-causing chemical,
formaldehyde. While inside the factory in China, nearly every box of flooring
had labels stating that they met Californias strict standards, when they knew
that the flooring contained more formaldehyde than the allowed amount.
30 of 31 boxes of the product bought in the U.S. emitted as much as 13 times
the amount of formaldehyde allowed.3 When questioned about this, the CEO
Tom Sullivan claimed that all of the flooring was safe, and the company would
never sale any product that was not safe. The company now says 15,000
customers received air quality test kits and of 3,400 analyzed, "over 97 percent"
had
Formaldehyde levels "within the guidelines set by the World Health
Organization."4 The company sent air quality test kits to the customers, however
a California lawyer disagrees saying customers, have been tricked and deceived
into believing that their results are safe, and we contend they are not safe.
2. What is the background of the situation?
Lumber Liquidators is an American Company that is North Americas largest
retailer of specialty hardwood flooring. The company started by a building
contractor that began purchasing extra wood that other companies did not need,
and selling it back to a trucking yard. Lumber Liquidators claim that they
eliminate the middleman, and negotiate directly with the mills, which decreases
the costs. 5
Another important value of the company is while making affordable flooring;
they also provide durable, safe, and high quality flooring. Meanwhile, the CNN
undercover investigation of the Chinese factory proved that these floors were
not safe, and were harming consumers, without the consumer knowing about the
high levels of formaldehyde. 6
3. What is the significance or importance of the situation?
The importance of the situation is that many American homes have the
companys flooring in their homes and are being exposed to the harsh
chemicals. Loyal customers who trusted the brand are removing the flooring
from their homes, without money to replace their floors. A report released that

3

"Lumber Liquidators." CBSNews. CBS Interactive. Web. 4 Sept. 2015.

"Lumber Liquidators." CBSNews. CBS Interactive. Web. 4 Sept. 2015.
5
"Lumber Liquidators: Hardwood Floors For Less!" Lumber Liquidators: Hardwood Floors For Less!
Web. 4 Sept. 2015.
6
"Lumber Liquidators." CBSNews. CBS Interactive. Web. 4 Sept. 2015
4

the chemicals are also affecting pets. One online review reported that a dog has
died due to the high levels of formaldehyde. 7
Statements made regarding the situation:
Statement Made By Tom Sullivan, CEO

As we began 2015, Lumber Liquidators faced a number of challenges. We

want to reassure you that our team remains vigilant and more committed than
ever to upholding the principals of integrity and value that built this company.
We are dedicated to continuing to fight for our customers, for our employees,
and for you, our shareholders. We want to thank our entire organization across
the U.S., Canada and Shanghai for their dedication and ongoing efforts, as well
as our customers, suppliers and shareholders for their continued support8

Statement regarding safety regulations by Tom Sullivan, CEO:

In China, we have more than doubled our financial commitment - from $1.8
million in 2011, to $4.8 million last year - to ensure our supply chain meets
strict regulatory requirements and our own high standards. As part of this
process, we've also significantly diversified our product offerings, including
where we source our products. Since we buy products based on supply and
availability, we have reduced the percentage of laminate we source from China
by more than 50% over the past three years, with more now coming from
Europe. In fact, only about 15% of our total product inventory is laminate
produced in China - an inconvenient truth for profit-driven sensationalists. 9

Existing Information
Background on the issue:
1. Is this the first time your organization has dealt with this situation, or are you setting
out to modify an existing communication program? If the latter, is this a minor
modification or a major one?
Since the CNN report came out, this has been the first major issue that this
company has had. However, the organization has not released any real
statements, or done much to solve the problem. The company is insisting that
their product is safe, and even issued air quality test kits to their customers. They
claim that 97% of the results from the air quality tests came back meeting
regulations. Reports claim that those results are inaccurate and the regulations
have not been updated.

7

"Lumber Liquidators Sends Thousands of Customers 'Idiot-Proof' Test Kits." NBC News. Web. 19 Octt.
2015.
8 "Lumber Liquidators Braces for Criminal Charges." CNNMoney. Cable News Network. Web. 14 Sept.
2015.
9
Forbes. Forbes Magazine. Web. 14 Sept. 2015.

2. Are there any disputes that this is the cause?

The only disputes in the case are ones made by the company. Since the CNN
report did a documentation of the floors, and how they were manufactured, there
is not much to dispute. The company is staying consistent with their claims, that
their flooring does not contain high levels of formaldehyde.
3. Does the situation involve the organizations relationship with another group? If
yes, what group?
The only other organization that has a relationship with the company is the
Chinese factories where the floors are being made, and falsely labeled. If the
company wants to fix the problem, the relationship with the Chinese factories
may change, or stop completely.
Consequences of the Situation
1. How important is this situation to the organizations mission?
This situation is devastating to the companys mission, as it is their mission to
provide high quality flooring for an affordable cost. However, high quality
usually does not include high levels of cancer-causing chemicals. The situation
goes against everything the company stands for, therefore their consumer trust
and brand image will suffer if the situation is not properly handled.
2. How serious a response is warranted to this situation?
The situation needs a serious, effective, and rapid response. Since there is proof
that the chemicals exist in the flooring, even leading to a death of a pet, the
situation needs to be handled at extreme urgency. Since there has been a
reported death due to the formaldehyde, it is time for the company to stop
denying that their product is safe, and take ownership
3. What is the likely duration of this situation: one time, limited/short term or
ongoing/long term?
The duration of the situation will be long term. The organization needs to set
short-term goals and start with immediate action, but it will be long-term before
the brand reinstates its consumer loyalty. In the short term, the company needs
to release a statement taking credit for their flawed flooring. Next, they need to
set up a fund, or create a strategy to help replace the flooring in homes where
they flooring test positive for high levels of formaldehyde. In the long term, the
company needs to document the start to finish process of how their floors are
made and release that to the media. This will show that the new and improved
flooring no longer contains dangerously high levels of formaldehyde, and help
regain customers trust.
4. What potential impact can this situation make on the organizations mission or
bottom line?
Lumber Liquidators strives to provide quality flooring throughout homes in the
United States. However, clearly this situation proves that the companys flooring
is not quality. If the company does not take action, their mission statement

means nothing. Their mission statement says, Offering value means more than
saving our customers money, thats why Lumber Liquidators is committed to
providing high quality, durable, safe products. (Lumber Liquidators Website)
5. Do you consider this situation to be an opportunity (positive) or an obstacle
(negative) for your organization? Why? If you consider this an obstacle, how might you
turn it into an opportunity?
This is most definitely an obstacle for this organization. This is a huge problem,
because people are removing the companys flooring from their homes, even if
they don't have money to replace the flooring. The companys stock has
decreased by 60% since January 2015, when the CNN report was released. This
obstacle could be a turned into an opportunity for this company to completely
change their image and regain trust from their clients. One way the company can
recreate their image would be by building factories in the U.S. Americans like
things that are American made and since this company is primarily an American
company and targets sells towards Americans, having a factory on American
soil would be a good start. The next strategy would be to document and release a
video about how the floors are made and what chemicals are and are not put into
the wood. The company should show that they are using American trees for the
floors, using an American factory to manufacture the flooring, and show the
entire process from start to finish. This would eliminate any speculations about
chemicals that cancer causing exist in the flooring.
Resolution of the Situation
1. Might information (quantity or quality) affect how this situation is resolved?
Yes. Both quality and quantity of information will be beneficial to overcoming
this situation. The consumers need to be informed on the changes that are being
made to prove that the company is making quality flooring. The company needs
to keep the consumers up to date on these changes, while also keeping
consumers informed on how they are aided consumers who were affected by the
flooring with high levels of formaldehyde.
2. How can this situation be resolved to the mutual benefit of everyone involved?
This situation can be resolved as a mutual benefit for both the company, and the
consumer if proper action is taken.
3. What priority does this situation hold for the public relations/communications staff
and for the organizations top management?
The public relations department has done nothing concerning this issue. In order
to save the companys reputation, they need to act quickly, yet efficiently. The
public relations team needs to be very strategic in what they say, but their
priority should be to first acknowledge that there is a problem, and secondly take
responsibility and start forming a strategy to solve the problem. Many of the
customers are ripping up their flooring in their homes, but do not have money to
replace the flooring. A great PR move for the company would be to set up a
fund to help restore the flooring in the affected consumers homes. Another
strategy would be to completely stop using factories outside of the U.S. to
manufacture.

4. How strong is the organization commitment to resolving this situation?

So far the company is ignoring the real problem by denying that there is actually
a problem. The CEO of the company has resigned, but is claiming that his
resignation is not related to this issue. They did issue some air quality test kits to
their customers to test their flooring for formaldehyde and the company claims
that 97% of the results came back meeting regulations. Before they issued the air
quality test kits, they completely denied there was any fault at all with their
product, even though there was documented video footage of the problem.
Research Program
1. How accurate is this existing information?
10
The existing information from CNN is very accurate. There is film
documentation from inside of the Chinese factories where the flooring is made,
proving these allegations to be true. The only information that is not accurate is
the information coming from the company.
2. How appropriate is it to conduct additional research?
Conducting additional research in this case is necessary because there needs to
be an accurate estimate of how many floors were sold with incorrect labels from
the Chinese factories, exactly how much formaldehyde was found on average in
each home, and if the company has made improvements, what are the levels
now, and are the consistent with regulations. Secondly, after the recovery
process has begun, the company will need to research stock growth/decline,
consumer approval ratings, and quality of the new flooring.
3.

What research methods will you use to obtain the needed information?
The company would likely hire a research firm, such as Nielsen, to help record
and measure the consumer satisfaction and approval ratings. The finance
department will be able to monitor sales and stock growth, or decline. To
research the quality of the flooring, air quality test kits will be used on every
floor sold, and correct labels will be placed on each floor.

Internal Environment
1. What is the quality of your organizations performance?
Lumber Liquidators has had a history of very poor customer service across the
nation.11 Many customers are left unsatisfied with their flooring and cannot
afford to have the floors replaced a second time. Also, reviews have stated that
unsatisfied customers that have contacted customer service do not hear back
from an employee for months and have also been asked to sign a nondisclosure

10 "Lumber Liquidators." CBSNews. CBS Interactive. Web. 4 Sept. 2015.
11 Lumber Liquidators Holdings, Inc. MarketLine Company Profile. Jun2015, p1-18. 18p.

9

agreement stating that they will not write a negative review of Lumber
Liquidators online. In addition to the poor customer care, Lumber Liquidators
has also been known to distribute flooring that does not pass the legal
regulations for formaldehyde levels in their product. The formaldehyde chemical
levels in their flooring have been known to increase the chances of cancerous
diseases in humans as well as fatal diseases in pets. However, they are still the
largest provider of hardwood floors in the nation, meaning their service is still
being widely used.
2. What communication resources, including budget, are available?
The Lumber Liquidators website need major remodeling. The home page is
mainly made up of loud, yellow blocks that display multiple samples of wood
as well as coupons in large text that take up the majority of the page. All
together the website is extremely clustered and difficult to read. Another issue
is the way it is organized. With so much information, Lumber Liquidators has
tried to organize everything they can into so many pages with so many features
that it again becomes harder for customers and viewers to navigate. Another
resource that was found was a business update from March 2015. This included
updates in their customer care, statistics and charts concerning the
formaldehyde levels in their laminate flooring, recent testing, and sales growth.
3. How supportive is the organization of public relations activity?
Lumber Liquidators does have a presence on social media. They currently have
a Facebook page that you can like and read other customers comments and
reviews. This Facebook page does have many positive reviews from customers
but also includes several comments from unsatisfied customers. These kinds of
comments drive prospective customers away and give bad publicity to the
company as a whole. Lumber Liquidators also operates an Instagram profile.
This profile posts picture on newly remodeled flooring to help advertise what a
finished room may look like in someones home. This profile seemed to be well
managed and the followers interacted constantly, saying that they enjoyed
seeing the finished rooms with the flooring examples.
Public Perception
1. How well known is your organization?
Lumber Liquidators is a moderately well known company in the United States.
Despite having more than several bad experiences, it is still one of the largest
operating flooring companies. Lumber Liquidators offers an unbeatable, best
price guarantee and continues to attract thousands of customers each year. The
company operates in the US, where it is headquartered in Toano, Virginia and
employs around 1,891 people. The company recorded revenues of $1,047.4
million in the fiscal year ended December 2014, and the company recorded
revenues of $1,047.4 million in the fiscal year ended December 2014, an

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increase of 4.7% over 2013. The company's operating profit was $104.1 million
in fiscal 2014, a decrease of 17.4% compared to 2013.12
2. What is the reputation of your organization?
Lumber Liquidators has a split reputation. Most of it recent attention is centered
on the formaldehyde levels that were causing cancer in humans as well as health
problem with pets. Along with that, many customers have made complaints on
social media sites as well as other websites. While not all of these reviews were
negative, a larger portion of them were written by customers that felt they had
been treated poorly and were not satisfied with the service. Many felt that the
employees did not do a thorough enough job and did not install the flooring
properly in order to last and when confronted, the customer service was very
poor and customers would not hear back from an employee or manager for
months at a time. However, there were also many reviews that were positive.
Lumber Liquidators is still a very well known laminate flooring company and
continues to keep their business alive and popular.
3. How do you want to affect this reputation?
We want to see Lumber Liquidators improve their customer service by
interacting more with customers. They could improve their social media
presence by responding to some of the many negative reviews posted online and
asking how they can contact an unsatisfied customer in order to help them. They
also need to address the formaldehyde incident. Lumber Liquidators has
received a lot of bad publicity for the high chemical levels in their laminate
flooring. They need to reevaluate these levels and explain to previous customers
what went wrong in order to devise a plan to fix it. Many customers were drawn
to Lumber Liquidators because of the low prices that they offer, but once they
discover the faulty product, they then need to tear up the installed flooring and
cannot pay to get the flooring replaced as soon as they need it. In conclusion,
Lumber Liquidators has several improvements that need to be addressed.
Customers need to feel confident that these products are safe for both humans
and animals, will be installed correctly and built to last, and that if any problems
arise, they will be able to contact an employee in order to fix the issue
immediately.
Public Perception Continued
1. Is the public perception about your organization correct?
It seems that the public has a lot to say about this organization. Lumber
Liquidators receives copious amounts of negative reviews about their customer
service and the way they treat their clients. With this amount of bad reviews and
comments from customers, its hard to believe that Lumber Liquidators does
their job to the fullest extent 100% of the time. However, they are still one of the

12 Lumber Liquidators Holdings, Inc. MarketLine Company Profile. Jun2015, p1-18. 18p.

11

largest flooring companies in the nation and continue to grow and receive
service. Based on what the public has to say, it sounds like Lumber Liquidators
needs to improve their customer service and keep their service consistent.
External Environment
1. What is the major competition for your organization?
The major companies that are competing with Lumber Liquidators include:
o Flooring America Inc.
o Hosking Hardwood Flooring Inc.
o Kittle's Flooring Company, Inc.
2. What significant opposition exists?
These competing companies seem to receive very positive reviews from
customers. Their online reviews all had very helpful comments and almost all of
them had pleasant things to say about the experience they had. Overall, Flooring
America Inc. had a 4.7 out of 5 in customer reviews. Customers wrote thorough
reviews stating that their experience with each of these flooring companies was
satisfying, the products were high quality and the customer service was very
helpful and took the customers needs into consideration first. These companies
also had very useful and helpful websites that were much easier to navigate and
their social media presence was beneficial to the companies as well.
3. Is there anything happening in the environment that can limit the effectiveness of the
public relations program?
After looking at the customer reviews from competing companies, Lumber
Liquidators faces a threat from these other flooring companies. With so many
other positive reviews from companies such as Flooring America Inc., it is hard
to believe that Lumber Liquidators would be the right choice for flooring. While
Lumber Liquidators has a social media presence that is meant to help its public
relations program, they have too many negative reviews on the Facebook page
for it to be strongly beneficial. These complaints from dissatisfied customers
only bring negative publicity and need to be dealt with personally with an
employee or manager and not on a public site.
Major Publics
1. Who are the major publics for your organization?
Customers
o Past purchasers
o Contractors
o Homeowners
o Those looking to remodel their floors.

Secondary Customers:
o People who employ a contactor that used Lumber Liquidators floors
o People who buy homes that already have Lumber Liquidators floors
installed

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Shadow Constituencies:
o Anyone in the U.S. or Canada who is aware of the reports of
formaldehyde in Lumber Liquidators flooring
Producers:
o Employees in the factories in the U.S. and China,
o Factory Managers
o Store managers,
o Store employees including sales people and customer service
representatives
o Lumber Liquidators financial backers
Enablers:
o Government associations that set the legal limits for chemicals in
flooring
o Industry Regulation
o Factory Regulation
Limiters:
o Competitors including Flooring America Inc., Hosking Hardwood
Flooring Inc., and Kittles Flooring Company, Inc.
o Media outlets that discovered and exposed the scandal (CNN and
Anderson Cooper).
o Media Outlets who carried the story

2. Who are the key publics for this situation?

Homeowners (emphasis on those who are looking to remodel their homes)
Contractors
Opinion Leaders
Past Customers
3. Who are the intercessory publics or major opinion leaders here?
Intercessory Publics
o Government and Industry Regulators
o Previous Customers
o Environmental Agencies
o Cancer Care and Research Facilities
Opinion Leaders
o Anderson Cooper and CNN
Customers
1. Who are your primary customers?
A business update presentation released by Lumber Liquidators in March of
2015 classifies their customers as, savvy homeowners who are passionate about
their floors, and make informed, considered purchases.
The same report says that customer service is essential for customers that are in
Our approximate 100-day purchase cycle. This includes those who are likely
to be interested in a future flooring project, those currently in the purchase cycle,
and those with completed projects who still may need assistance or guidance.
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The average customer orders approximately 500 square feet of flooring for a
wood flooring project and slightly less for a laminate project.
Customers reside in both the United States and Canada.
Customers tend to be lower to upper middle class in regards to their financial
situations.
2. How have your customers changed within the last three years?
Customers no longer trust Lumber Liquidators to put safe material in their
homes. Their economic status and floorings needs remain similar to previous
years however the scandal has changed public perception.
3. How are you customers likely to change in the next three years?
Ideally, customers will return to trusting the brand in the next three years.
Customers will be more hesitant after the scandal which is why its essential to
rebrand Lumber Liquidators as a trustworthy company.

Producers
1. Who provides your organization with services and materials?
Lumber Liquidators shows great pride for being an American brand, they started
in America their stores are in America. However by their own March 2015
business reports they buy their own flooring from other countries.

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2. Who provides money?

Shareholders at Lumber Liquidators Holdings Inc.
Stocks can be purchased from the New York Stock Exchange (Ticker Symbol:
LL)
3. How have producers changed in the last three years?
The producers of Lumber Liquidators hardwoods and laminates have gotten
lazier and/or more dishonest in the past three years. They have become reckless
with the rules of safety in the industry and put customers in danger.
Customer Service reviews on public websites such as angieslist.com and
consumerreviews.com have shown that the responses to not only the
formaldehyde scandal but to most customer service requests are unhelpful,
insufficient, or the customer gets no service at all. This is something that seems
to be new in recent years.
4. How are your producers likely to change within the next three years?
In the next three years Lumber Liquidators should find new producers and
flooring vendors. Using the same vendors who poisoned households and used
false labels is impractical and will have a negative affect on the companys
public image.

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Enablers
1. Who are the regulators?
The United States Environmental Protection Agency (EPA)
The U.S. National Toxicology Program
The U.S. Agency for Toxic Substances and Disease Registration
California Air Resources Board
2. How have regulators helped you within the last three years?
While the regulators have seemingly gotten Lumber Liquidators into hot water,
they have in actuality done them a service. Had these dangerous chemical levels
been allowed Lumber Liquidators chemically imbalanced floors could have
made many more people ill or lead to their deaths.
Limiters
1. Who can stop you or slow you down?
The regulators could severely punish the company. This would hurt both
company image and could potentially cost the company thousands if not
millions of dollars.
The opinion leaders, Anderson Cooper, CNN, and other news outlets that report
on the story have had a monumental affect on public perception.
Environmental Activists have not yet but eventually could come into play.
2. How have your limiters changed within the last three years?
Limiters have grown because Lumber Liquidators gave them something to be
upset about. These limiters did not exist for this company before because these
issues did not yet exist.
Research
1. What is the basis for the existing information noted above: previous formal research,
informal or anecdotal feedback, organizational experience, personal observation,
presumption/supposition by planners and/or something else?
As a team we employed formal research via legal cases, news sources, and
documents published by those at Lumber Liquidators, used informal and
anecdotal feedback from review sites, as well some personal observation and
presumption.
2. How reliable is this existing information?
Because multiple sources were used in the formal research process we were able
to check and confirm many facts presented in this analysis. The information is
reliable.
Key Publics
1. What is the nature and type of each key public?
Homeowners looking to remodel their floors
o Informed Homeowners who researched Lumber Liquidators and know
that the floors may be dangerous and therefore chose to buy floors
elsewhere would be an active public.
o Homeowners who are unaware of the situation and are considering
Lumber Liquidators to supply their floors would be a latent public.
Contractors

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o Contractors would be considered an aware public because in their

industry this information would be nearly impossible to miss.
o If the contractors already use another flooring company they would be an
apathetic public.
o Contractors who make the decision to stop using flooring from Lumber
Liquidators would be an active public.
Media Outlets
o Media outlets that are reporting on the issue at hand are an active public.
They are consciously and initially speaking out about the issue.
Past Customers
o Past Customers who are unaware of the dangers of their already installed
flooring would be a latent public.
o Past customers who have heard of the issue but are unaffected by it and
have no formaldehyde in their floors would be both an aware and an
apathetic public.
o Past Customers who have ordered formaldehyde-testing kits, removed
their floors, publically denounced the company or refuse to return to
Lumber Liquidators ever again are an active public.
2. What benefits can you offer this public?
Homeowners looking to remodel/buy new floors
o A discount in the wake of the scandal
o Information on formaldehyde
o A guarantee of safe floors when the company has corrected itself and its
product after the scandal
Contractors
o Special deals to keep them from choosing another flooring vendor
Media Outlets
o When Lumber Liquidators begins manufacturing safer flooring they
could offer exclusive access to the recovery process to certain media
outlets. This gives the media information and the public can get to see
that things have changed.
Past Customers
o Formaldehyde Testing Kits
o Refunds or compensation if people have to replace their floors.

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3. What are the major wants, interests, needs and expectations of each public?
Homeowners
Contractors
Media Outlets
Past Customers
Wants
New flooring
A flooring
A good story,
Assurance that
installed in their
company they
to inform the
their floors are
homes.
can use
public.
safe, funding
consistently in
to get their
multiple homes
floors replaced
without
if they are not
difficulty.
safe
Interests
Is the flooring
Flooring that
Scandalous
Their own
safe, long lasting,
works with the stories,
safety and the
within their
home, that is
exposure of
safety of those
budget?
easy to install, information,
exposed to the
is affordable.
public
flooring
awareness.
Needs
Flooring they can
A reliable
Stories to report A guaranteed
afford, enjoy and
flooring source on, information. safe floor or
is safe for the
that can be
money to
home.
utilized in
replace unsafe
many different
flooring.
homes for
many different
types of
flooring.
Expectations Floors that are
Flooring that
A story that
Lumber
easy to install,
will last and
will catch
Liquidators
affordable, look
not be a danger public interest. will correct
nice their homes,
to whomever
their mistake.
and are not
moves into the
dangerous for their home the
family or pets.
contractor
built.
Existing Information
1. Who is your key public?
People who have bought or are interested in buying new, affordable laminate or
hardwood flooring from Lumber Liquidators for any reason. This includes
shoppers, homeowners, decorators, contractors, former customers and more.
2. The category that best describes this public is an active public. Former customers are
informed on the issue because the company informed them. Contractors are informed
because it is their job in their industry to know what products are safe to use when
building homes or buildings. New customers tend to do research on a big purchase like
new flooring and will come in contact with the formaldehyde reports associated with
Lumber Liquidators. All of these publics will be actively pursuing more information
about these floors.

18

Analysis of Key Characteristics

Issue
1. What does the key public know about this issue?
That there is an illegal amount of the chemical formaldehyde in some flooring
sold by Lumber Liquidators. Some may also know that formaldehyde is
carcinogenic meaning it can cause cancers.
2. What does the public think about the issue?
Online reviews and media sources show that the public is simultaneously furious
and frightened. Many of Lumber Liquidators customers are from lower income
households; this is why they chose the affordable prices at Lumber Liquidators.
This also means many of them cant afford to replace the flooring. Many past
customers ripped up the flooring they bought from Lumber Liquidators and are
living with nothing but the concrete base of their homes as flooring. The public
is irate that regulations were in place and were then broken and ignored.
3. What does the public want on this issue?
Reforms in the way Lumber Liquidators producers flooring.
Guarantees of safe floors.
Access to ways to find out if their flooring is safe.
Retribution from Lumber Liquidators if the flooring is not safe.
4. What does the public not want on this issue?
A denial from Lumber Liquidators
To have to get new floors in their home/office/etc.
To expose themselves or any one else in their home to cancer-causing
chemicals.
To be abandoned with poisonous floors without any assistance from the
company
5. How free does the public see itself to act on this issue?
In regards to the Internet or the media, the public is very free to express their
concerns.
Consumers are free to order formaldehyde-testing kits from Lumber Liquidators
via the Lumber Liquidators website.
However, some people are trapped by the inability to replace their floors for
financial or other reasons.
Benefits
1. What benefit or advantage does your organization offer each public?
Lumber Liquidators offers the benefit of getting knocked down and getting up
again. We have done endless research and thorough investigating to understand
where in our production process we went wrong. Along the way we learned how
to improve at every level of production, from the factory to local stores to your
beautiful new living room. We have learned from our mistakes and now we use
that knowledge to provide you with floors that are the most researched, most
modern, and safest in the industry.
2. How does this benefit differ from the benefits available from other organizations?

19

The underdog spin is something other organizations do not have. Lumber

Liquidators can use this scandal to completely change how they do business. If
they use this as an opportunity to learn more they can present their new
knowledge as sleek and modern.

Goals & Objectives

1. What position do you seek?
Lumber Liquidators wants to be seen as the leader in hardwood flooring sales by
making safe, affordable laminate flooring a top priority. With the largest
selection of hardwood samples available to customers, Lumber Liquidators will
be able to provide customers with any flooring needs they desire. Along with
this, Lumber Liquidators will guarantee that it follows all safety regulations
when it comes to the products and supplies. All health and safety regulations
will be taken into account and followed to ensure that each installation is safe
for each customer, their families and their home. With these components, along
with superior customer care and service, Lumber Liquidators will be the leader
in cost effective, safe and high quality flooring.

What are the goals?

To reconstruct company's with its key publics.

To rebuild the relationship with past customers.
To reinforce the company's image with potential customers.
To Advance the online presense
To create and install products that are safe follow regulations

- The first goal of Lumber Liquidators is to improve the companys reputation with
their key publics. Next, Lumber Liquidators will enhance the relationship between
the company and its customers. Lumber Liquidators will reinforce the
organizations image with potential clients. Lumber Liquidators will also remodel
their existing social media sites as well as their current website. Lastly, the company
will reinsure a 100% guarantee that the laminate flooring being installed is
completely safe and follows all health codes and regulations before installing it in a
home.

20

What are the objectives?

To have an effect on the acceptance of key publics in the United States;
speciIically to increase positive attitudes towards the brand. (35 % within six
months)

To raise awareness of the new company processes in order to rebuild

relationships with existing and new customers. By communicating that Lumber
Liquidators will be improving their factory processes in order to ensure safe,
high quality products, cunsumers will be able to regain the trust of this
company

To have an effect on the action of all publics; speciIically to increase online

purchases from the website. (20% within 6 months)

To increase awareness of Lumber Liquidators by potential customers in the

general public.; speciIically to increase their knowledge of the changes in
polices and safetly regulations of the company. (30 % within six months)

Increase the action of purchase behavior from consumers, speciIically to

increase supportive action from the government and environmental groups
within the upcoming year.

3. What are the specific objectives?

- Lumber Liquidators will improve their reputation with its previous customers
by offering to replace the hard wood floors that were installed in an unsatisfactory
manner. Lumber Liquidators will also reinvent their social presence by reconstructing a
new website that is easier to navigate. The current website needs to be filtered and only
valuable, relevant information should be kept on the new website. Revisiting the
currently existing pages and remodeling them to be more up to date and have a cleaner,
clutter-free feel will also maintain a new, strong social presence. After updating these
sites such as Facebook, Instagram and Twitter, Lumber Liquidators will reach out and
follow potential customers to broaden their public. Lumber Liquidators will also avoid
breaking health and chemical regulations by checking all products before installing
them in the homes of customers. Lumber Liquidators will also provide quality air tests
to ensure the safety of the laminate flooring. This company will also make new
relationships with factories that supply the products to Liquidators and review the health
codes that are necessary for the laminate flooring. If any of these rules or codes is not
being followed, Lumber Liquidators will not do business with them.

21

A . Position
-What is a key public for this product/service/concept?
Lumber Liquidators provides products for a wide variety of publics. Hard wood an
laminate flooring is something that can be used in any home or building and is largely
used in the homes of young adults, and older adults with families.
-What position do you seek for your product/service/concept for this public?
Lumber Liquidators wants to be the most trusted name in hard wood and laminate
flooring. Lumber Liquidators wants to ensure their key publics that they are getting the
highest quality, safest product for the best price. After purchasing from Lumber
Liquidators, we want our customers and public to feel and know that their families, pets
and home are being taken care of with this safe, high quality flooring.
B. Goals
What are the organizations reputation goals on this issue?
- To reconstruct a good reputation with the public
- Rebuild the Relationship with Past Customers
- Reinforce the Company's Image with Potential Customers
-What are the organizations task goals on the issue?
-Create & Install Products That Are Safe and Follow Regulations
-Advance Online Presence
- Does the organization have willingness to work toward these goals?
Lumber Liquidators has been through a rough time with its products and how they care
for their customers but absolutely have the willingness to work toward a higher
standard. The resources that are necessary to achieve these goals could be easily
obtained and Lumber Liquidators is ready to get back on their feet and help their
customers and public in any way they can.
C. Objectives
One specific awareness objective: To have an effect on the awareness of online
shopping options among all publics; specifically to increase the understanding of the
advantages of the online tools.
One specific acceptance objective: Gain the acceptance of government regulators, the
media and other gatekeepers
One specific action objective: To rebuild a positive relationship between company and
consumer and create positive, lasting purchase behavior from existing and new
customers.
Goal 1: To reconstruct a good reputation with the public
Awareness objective: To increase the awareness of existing key publics;
specifically to increase the understanding of the company's renovated processes
Acceptance Objective: To have an effect on the acceptance of key publics in the
United States; specifically to increase positive attitudes towards the brand. (35 % within
six months)

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Goal 2: Rebuild the Relationship with Past Customers

Acceptance Objective: To raise awareness of the new company processes in
order to rebuild relationships with existing and new customers. By communicating that
Lumber Liquidators will be improving their factory processes in order to ensure safe,
high quality products, consumers will be able to regain the trust of this company.
Action Objective: To rebuild a positive relationship between company and
consumer and create positive, lasting purchase behavior from existing and new
customers.
Goal 3: Advance Online Presence
Awareness objective: To have an effect on the awareness of online shopping
options among all publics; specifically to increase the understanding of the advantages
of the online tools.
Acceptance objective: To have an effect on the action of all publics; specifically
to increase online purchases from the website. (20% within 6 months)
Goal 4: Reinforce the Company's Image with Potential Customers
Awareness Objective: To increase awareness of Lumber Liquidators by
potential customers in the general public
Goal 5: Create & Install Products That Are Safe and Follow Regulations
Awareness Objective: Make all of the key publics aware of the new safety
standards and initiatives
Acceptance Objective: Gain the acceptance of government regulators, the media
and other gatekeepers
Action Objectives: Increase purchase behavior from consumers, increase
supportive action from the government and environmental groups
Strategies
1. What proactive strategies might you develop?
Lumber Liquidators will make acquiring reliable, safe hardwood and laminate
flooring vendors their top priority.
Lumber Liquidators will hire a person or department that exclusively handles
the study and application of government regulations within its factories and
stores in order to supply the safest and highest quality flooring available.
Lumber Liquidators will focus on customer relations with an emphasis in
creating trust.
Lumber Liquidators will form strong bonds with their overseas or outsourced
lumber and laminate suppliers in order to better supervise and manage their
production.
2. What reactive strategies might you develop?
Lumber Liquidators is currently using a strategic silence strategy. They have
released the formaldehyde testing kits and made them available to their publics
but they have made no public comment on the topic.
Pre-emptive action would have suited this scenario well. By releasing the
information about formaldehyde early on they could have prevented a
23

significant amount of panic and avoided living beings getting seriously ill from
their floors.
Vocal Commiseration, apology is an important reactive step to take when people
have become ill because of the companys product. People did not just lose
money or get a faulty product, people are exposed to carcinogenic chemicals
that are threatening their health and killing their pets. Much like situation in
Hawaii where an American Naval submarine killed Japanese high school
students, this situation will not be adequately resolved without a genuine and
thorough apology.
Rectifying behavior, restitution is the most appropriate strategy for Lumber
Liquidators to implement. They should compensate those affected with financial
restitution and/or replacing their dangerous floors.
3. How consistent are these strategies with past practices of your organization?
Most of these actions are seemingly inconsistent with the past practices of
Lumber Liquidators but that is absolutely a positive thing for this organization
because their past practices have put cancer-causing flooring in the homes of
American citizens. New practices are essential to keeping this business afloat
and resurrecting its reputation.
Proactive Strategy
1. Is it appropriate to use any of the following approaches? If yes, how?
Action Strategies:
Organizational Performance: The organizations performance is perhaps its biggest
problem. Lumber Liquidators is saying that they produce the highest quality flooring
but what they are doing is using illegal amounts of chemicals in those floors. If quality
is the goal of strong organizational performance, Lumber Liquidators is severely
lacking. According to Ronald D. Smith, author of the 4th edition of Strategic Planning
for Public Relations, the PR team cannot be expected to promote the good name of the
of an organization that doesnt give good performance, (114). This statement applies
strongly to Lumber Liquidators formaldehyde situation. The PR team cannot
comfortably say that Lumber Liquidators is the best when the quality of the product
they are producing is so seriously flawed.
Audience Participation: This strategy would be useful but for a specific subset of the
key publics, the contractors. Because the average homeowner does not have advanced
knowledge of flooring they would not benefit from a factory tour or a demonstration on
how the laminates are made. Contractors however do have that higher-level
understanding and therefore could positively benefit from seeing the methods used to
improve the quality of the product. Possibly through a factory tour, a demonstration of
the laminate creation process or a seminar explaining the changes in the production
process implemented to correct the formaldehyde problem.
Alliances: The right alliances could be incredibly useful during this time of serious
error. Like British Petroleum making alliances with environmental agencies after the
infamous oil spill, Lumber Liquidators could make alliances with the government and
not for profit agencies that regulate chemicals in flooring and cancer research groups.

24

Sponsorships: This would be beneficial if Lumber Liquidators can find ways to

sponsor cancer research organizations or environmental hazard agencies or groups
without coming off as show-offish, sponsorships could have a strong positive impact on
reputation and public image. If Lumber Liquidators does engage in sponsorship the best
approach would be subtly, the PR team wants people to the see the organization helping
out not making people roll their eyes. Another sponsorship idea would be the preemptive action of sponsoring other, popular nonprofit organizations, not related to the
formaldehyde situation, to establish general good will as a company and, again,
improve reputation and public perception.
Communication Strategies
Publicity: Yes and no. Even though publicity is what got Lumber Liquidators in trouble
in the first place (many publics were unaware of the formaldehyde until the Anderson
Cooper report on CNN) Lumber Liquidators could use publicity as a platform to explain
how their fixing the problem and how they are helping those affected by the
formaldehyde. A strong publicity strategy would be to use the already existing
gatekeepers, Anderson Cooper and CNN, and do a follow up report highlighting the
changes Lumber Liquidators will make to prevent this from happening again. This
would also be a very prominent format for a sincere public apology. However, if
Lumber Liquidators continues handling this situation poorly, publicity is perhaps the
worst thing that could happen for their public image. Publicity should only be used
when the company has something positive, sincere, or necessary to report.
Newsworthy Information: Yes this strategy would work but only under the same
guidelines as the publicity strategy. Lumber Liquidators must have something positive,
important, or apologetic to release or it is better to keep quiet. Transparent
communication is necessary to properly correcting this situation however there is a
difference between transparent communication and shooting your own company in the
foot.
Transparent Communication: Yes this strategy would absolutely work and should
have been implemented from the beginning. Had Lumber Liquidators chosen to be
transparent with their consumers from day one, this scandal may have been resolved
much more quickly but because the past cannot be changed it is better to not worry
about what could have been done and what can be done with transparent
communication. Lumber Liquidators should be 100% transparent about how they are
solving the problem from their factories to their stores to the homes of the consumer.
When shock terms like cancer causing chemicals are already in play, the best strategy
to decrease panic is to communicate openly every step of the way.
2. Summarize the proactive strategy of your organization.
Lumber Liquidators strategy will not be a simple one. Many gears will be
turning simultaneously in order to solve each part of the problem at hand. The
most essential part of the proactive strategy is to update and correct
organizational performance and produce a higher quality product that people can
trust. The factory that produced the flooring with the formaldehyde should
receive a total overall and a new group of supervisors. This factory will become
the model factory of how to make safe laminates. Once processes are perfected

25

in the source factory, the new technique will be implemented in every factory
Lumber Liquidators owns or employs. If outsourced factories are not willing to
make these changes, Lumber Liquidators will not hesitate to cease business with
that factory. The priority is safety and any member of the team who isnt willing
to give a 110% is no one longer welcome to be apart of the team. The next step
will be forming alliances with the government associations and various
organizations that regulate the chemicals in flooring. Forming close bonds with
these groups will mend wounds, keep the organization informed on every
change in standards and provide a safeguard for the future. Alliances and
sponsorships will be organized with cancer research organizations. Money and
resources should be donated in dramatic quantities to show the true remorse felt
by those at Lumber Liquidators. The PR team and the gatekeepers will generate
publicity and newsworthy information. All of the positive changes Lumber
Liquidators have made will be communicated personally to Lumber Liquidators
consumers as well as on a large scale to the general public. This stream of
positive information will be honest, encouraging and completely transparent.
Lumber Liquidators will continue their alliances with the environmental
agencies/groups and the cancer research organizations for years to come. These
partnerships will not just be an answer to a crisis; they will be the start of a new
kind of corporate culture at Lumber Liquidators that takes care of the
community and its customers. The message will be concise and clear: Lumber
Liquidators will always put the customer before the bottom line.
Reactive Strategies
1. Is it appropriate to use any of the following approaches? If yes, how?
Pre-emptive Action
Prebuttal: Yes. This strategy could have completely changed the tone of this entire
scandal. By allowing the press and gatekeepers break this news first it expanded and
caused mild hysteria. It is unclear when Lumber Liquidators discovered that
formaldehyde was in some of their floors but when they did they should immediately
informed the public. In this case, when cancer-causing chemicals are involved, a
prebuttal could have kept some people from getting sick. This is not just any faulty
product that may give people food poisoning or that could be repaired by a trip to the
car dealership, family pets were killed and people could be getting cancer from their
own homes. The sooner the information is released the better.
Defensive Responses
Denial: Yes, this strategy could be used but it would not be practical. Denying the
accusations only put off the inevitable and leaves innocent consumers in homes with
toxic floors. If it was used it would be as useful as President Bill Clinton denying sexual
activity with Monica Lewinsky, no one would believe it and the truth would come out
soon enough.
Excuse: Yes, this strategy could work. Lumber Liquidators could use the lack of
control excuse stating that they do not have direct control of the factories that produce
their products. They could also use the accident excuse saying that there was an error in

26

the measuring, mixing or use of chemicals. This strategy could be used but is weak. The
publics want answers and solutions; excuses would only lead to eye rolls. If the source
of the error is in fact a factory error that excuse could be used to explain what happened
and will then be significantly more relevant and useful.
Justification: No, this strategy would absolutely not work. There is no justification for
putting carcinogens in peoples home.
Reversal: No, this strategy would not work. The problem at hand is too serious for
reversal to apply.
Diversionary Responses
Concession: Yes, this strategy would work and should be used. Lumber Liquidators
should use the concession strategy to mend the homes of those affected. Because
Lumber Liquidators is a discount flooring company whos customers are mainly in the
middle class or below, many of those affected could not afford to replace their floors so
they ripped up the toxic floors themselves and lived on bare concrete. A beautiful act of
concession would be to replace the floors of those affected. Much like the lecture
example of Southwest Airlines giving out free plane tickets to support breast cancer
survivors, Lumber Liquidators has ample flooring to give. For those who became truly
ill from the formaldehyde in the flooring, Lumber Liquidators could make concession
by paying their medical bills. The consumers who have become sick from Lumber
Liquidators floors have every right to sue and would almost definitely win their case.
Lumber Liquidators could pay for their bills by court order or by the goodness of their
own hearts, which is a much better PR option.
Ingratiation: No this strategy would not work. Again, the situation at hand is too
serious to be subdued with charm or cosmetic acts of repentance.
Disassociation: No, this strategy would not work because Lumber Liquidators is the
only name associated with this scandal they are tied to it no matter what. BP still makes
every mind in America think oil spill. Though this scandal is on a smaller scale the
key publics will know better.
Relabeling: Yes, this strategy could work. Renaming the sealant should be done to
avoid a bad associate with formaldehyde and cancers. Relabeling the floors they sell
could make the organization seem fresh and new. This strategy would be used later than
the other reactive strategies because it is not totally necessary but would help.
Vocal Commiseration
Concern: No, this strategy would not work. If the organization expresses concern but
not guilt then any other PR action would seem contradictory because those actions
would imply guilt. In order to resolve the issue full responsibility must be taken.
Condolence: No, this strategy would not work for the same reasons that the concern
strategy would not work. The organization needs to admit guilt.
Regret: Yes, this strategy could work but only as part of a bigger overall strategy. To
say, we wish this hadnt happened and then do nothing else would be useless to
solving the problem. Regret should be expressed as part of a larger apology and plan of
action.

27

Apology: Yes, this strategy is the most necessary of all. Personal apologies should be
issued to the persons affected and public apologies should be made to the public at
large. The organization should take full responsibility for the scandal. At this point in
the time, the apology is very late but it should still be said.
Rectifying Behavior
Investigation: Yes this strategy would work and should definitely be used to find the
source of the formaldehyde. First and foremost, the victims deserve an explanation.
Secondly, the organization cannot fix it if they do not know how it happened.
Corrective Action: Yes, this would work for the same reasons as the investigation.
Lumber Liquidators needs to stop the problem, correct the problem and never let the
problem happen again. Corrective actions would include a thorough investigation of the
source of the chemical imbalance, the punishment of those responsible (if there is a
specific person or group), more thorough training on the laws and rules of using these
chemicals, more intensive training on working with these chemicals, and putting new
processes in place in all their factories to prevent a reoccurrence.
Restitution: Yes this strategy would work and should go hand and hand with the
concession strategy explained on the previous page.
Repentance: Yes this strategy is essential for Lumber Liquidators. The textbook states
that repentance involves a change of heart and a change of action. The organization
absolutely needs to change their actions (how they create their flooring, laminates and
sealants) to avoid this happening again and they need to change their hearts and be more
open and giving to both affected and unaffected publics.
Deliberate Inaction
Strategic Silence: No, this strategy would not work. Silence on the subject of cancer
causing chemicals in peoples homes would create panic and mayhem.
Strategic Ambiguity: No, this strategy would not work. Without specific answers there
will be no way to put the publics minds at ease.
Strategic Inaction: No, this would absolutely not work. Action must be taken not only
to save the company from a PR perspective but also to keep Lumber Liquidators
customers from potentially getting cancer.
2. Summarize the reactive strategy of the organization:
The reactive strategy, much like the proactive strategy, will have many moving parts
but one common goal: to rectify the situation and prevent it from ever happening again.
Prebuttal should have been used but the situation has already advanced far beyond the
time for that strategy. The first part of the reactive strategy is to correct every step of the
process that allowed for floors with illegal levels of formaldehyde enter homes. This is
includes investigating and altering the factory process, testing for formaldehyde
imbalances in the stores and double checking all the chemical levels of the flooring
before it is placed in someones home. The second part of the reactive strategy is to
make amends with the peoples affected through apology, concession, restitution and
repentance. From there, Lumber Liquidators will need to go back to the proactive
strategies to prevent any more scandals in their future.
Action/Response Consistency

28

1 & 2. Is the action/response consistent with the past verbal messages of this
organization? Is the action response/consistent with past actions of this organization? If
no, explain the inconsistency.
The actions and responses discussed are not consistent with the past verbal
messages or the past actions of Lumber Liquidators based on observation of
how the company responded to the scandal.
In the past, Lumber Liquidators responded to the scandal with strategic silence
and strategic ambiguity, which can be seen by how they responded online and
in the media.
The only response the company made was the post a test on their website. The
test asks questions about the type of flooring the customer owns. If the
customer's test warrants, an outside Air Quality Company will send the
customer a home formaldehyde test. The link for the test is buried at the very
bottom of the homepage of lumberliquidators.com.
There has been no public apology and the company has separated itself from
the issue by making the customers do the test themselves. The company has
further disassociated itself by hiring an unconnected third party analyze the
results of the home testing kits.
3. Is the action/response consistent with the mission of this source? If no, explain the
inconsistency.
Lumber Liquidators mission: Our mission is to continue to bring customers
across the country a great product at a great value, with the best customer
service in the industry.
The statement is inconsistent because the product was not great it was in fact
severely flawed.
The response will solve this problem because the product will be vastly
improved through the proactive and reactive responses.
4. Is the action/response consistent with the image of this source? If no, explain the
inconsistency.
It is not consistent with the image of Lumber Liquidators but that is the point of
the response strategy. Lumber Liquidators has a bad public image as a low
quality, dangerous product. The actions discussed in the response strategies will
improve their image.
Spokespeople
1. Identify several possible spokespersons who could present your message?
Alan Wozniack, president of the Florida-based Environmental Diagnostics
Laboratory, would be a potential spokesperson that the company could use. Alan
is in charge of the Idiot-Proof test kits that Lumbar Liquidators sent out to
their customers who suspected they had dangerous chemicals embedded into
their flooring. Using Alan as a spokesperson would be smart because he works
for an environmental agency, so he would know which regulations are and are
not legal, as well as being fully knowledgeable about the test kits that were
provided to customers. A second spokesperson that could be used would be the
acting CEO of the company. Tom Sullivan is acting CEO since Robert Lynch
29

resigned in May. Using the founder could be a risk, but there needs to be
representation from the company and ownership needs to be taken for the
problem.
2. What is the level of credibility for each possible spokesperson?
Having Wozniack has the highest credibility of the two spokespeople. He is
qualified and knowledgeable. He is also not directly involved with the company.
He is the president of the lab that manufactures the test kits, so he would be able
to tell a consumer what to look for, what the regulations are, and how to
properly use the kit to not get fake results. Consumers would trust him and his
expertise. 13Using the founder of the company would be a good strategy to show
consumers that the company owns up to the issue using transparent
communication, and going above and beyond to resolve and compensate for the
problems that have been caused by the flooring.
3. What is the level of charisma for each?
The level of charisma is low for Tom Sullivan in the aspect of likability and
attractiveness. However, he is high in charisma in familiarity, and similarity. He
can use the fact that he founded the company as a building contractor to make
himself more relatable to the audience. Alan Wozniack has a high likability, and
attractiveness to the audience.
4. What is the level of control for each?
Sullivan and Wozniack have high levels of control through power, and
authority. Sullivan is powerful in the fact that he is the acting CEO and founder
of the company. Sullivan can use his authority to involve moral leverage.
Wozniack has authority through his knowledge and position as president of an
environmental agency.
Credibility
1.How expert on this topic is the message source?
Both sources are experts on the topic. The message will focus on moving
forward and manufacturing safe flooring. The founder of the company is an
expert because it will be his employees that will be in charge of manufacturing
and selling a quality product, which will ultimately reflect back on him. Alan
Wozniack is an expert on the test kits that were given to customers. He will be
able to ensure consumers that the flooring in their homes is safe.14
2. How well are his/her credentials to the audience? If expertise is high, should the
audience be reminded of this? If expertise is not known, can the audience be made
informed of this?

13 Abrams, Rachel. "A Challenge to Lumber Liquidators Tests." The New York Times. The New York
Times, 17 Apr. 2015. Web. 21 Oct. 2015
14 Abrams, Rachel. "A Challenge to Lumber Liquidators Tests." The New York Times. The New York
Times, 17 Apr. 2015. Web. 21 Oct. 2015

30

The credentials are high for both spokesmen. In this case the audience should be
reminded that both men are well qualified. Gaining the trust of the target
audience is key, and expertise is one strategy that will be used in this situation.

3.Does the message source enunciate clearly?

Yes, both men are used to speaking in front of audiences are both are
comfortable speaking to the press. They also have the knowledge and skill to
communicate clearly, but at a level the audience easily understands.
4. Does the source speak with dynamism and authority?
Yes, both sources will speak with dynamism and authority, but use it in an
informative manner.
5. Does the source speak calmly and reassuringly on this topic?
Yes. Speaking calmly and reassuringly is imperative to the message. The
consumers need to be reassured that the flooring that they are buying is of
quality and is most importantly safe.15
6. How trustworthy will the source be perceived as being?
Alan Wozniak will be seen as very trustworthy since he is not directly tied to the
company. He knows safety and he knows the regulations. The target audience
will put their trust in him to reassure them that the flooring is not hazardous.
Tom Sullivan may be seen as less trustworthy to the target audience since this
has been an ongoing problem, and he has done little to resolve it. He will need to
gain the target audiences trust by showing his commitment to improving the
flooring and dedication to making sure it is safe.16
7. Can the source speak truthfully and independently about the topic?
Yes, both spokesmen will be able to speak truthfully about the topic because
they both are very knowledgeable on the problem.
8. Does the source have any associations that compete with the organization?
No.
9. Does the source have any associations that are inconsistent with the organizations
image?
Tom Sullivan may seem as if he is inconsistent with the organizations desired
image, because he has not acted very much on resolving the problem. The
current image of the organization is not good, so this will be an opportunity for
recovery.

15 "Lumber Liquidators Braces for Criminal Charges." CNNMoney. Cable News Network. Web. 14 Sept.
2015.
Rachel. "A Challenge to Lumber Liquidators Tests." The New York Times. The New York
Times, 17 Apr. 2015. Web. 21 Oct. 2015.

16 Abrams,

31

10. Is the source available to your organization?

Yes, both sources are available to the organization. Tom Sullivan will play a
very active role in moving the company forward from this situation. Alan
Wozniak is already working with the company; therefore he will also be
available to the company.
Charisma
1. How similar is the source to the audience?
CEO Tom Sullivan started the company when he was just a building contractor.
He can relate to the audience because he started the company as a working
middle class America, the target audience, therefore they are relatable.17
2. How familiar is the audience with the source?
The audience is very familiar with the founder Tom Sullivan. Alan Wozniak
may be less familiar since he is just the president of the laboratory that makes
the air quality test kits, but both are well known sources.
3. How attractive is the source to the audience?
Currently, Tom Sullivan is not attractive to the audience since he has used
strategic silence towards the situation. Alan Wozniak is very attractive to the
audience since he is the president of an environmental laboratory, and his lab
makes the air quality tests kits.
4. Can the source be presented in an attractive setting?
Yes. Particularly Tom Sullivan. Instead of continuing using strategic silence, we
will now move towards using transparent communication and this will create a
more attractive setting for the audience. Having the CEO being hands on,
walking through the factories, making sure the labels are correct, speaking with
affected families, etc. will make Sullivan more attractive to the audience.
Control
1. Does the source have any moral leverage with this audience?
The sources have moral leverage over the audience because this is a cancercausing issue. The sources will be sympathetic to the audience and show great
concern with resolving the problem.
2. Does the source have any power over this audience?
The source has power over the audience by the air test quality kits. If the
flooring does not test positive for dangerous levels of formaldehyde, then the
flooring is perfectly safe, and the audience has no real argument.
3. Does the source have the willingness to use this power?
Yes. The source wants to defend their product and the brand. If the flooring in a
particular home tests positive for dangerous levels of formaldehyde, then the

17 Abrams, Rachel. "A Challenge to Lumber Liquidators Tests." The New York Times. The New York
Times, 17 Apr. 2015. Web. 21 Oct. 2015.

32

situation will be addressed with the company, and the company will be
transparent on how many cases of dangerous levels of formaldehyde are found.
If a consumer is worried and uses the air test quality kit and finds that their
flooring does not test positive for dangerous levels of formaldehyde, which has
occurred, then they will be reassured that they have purchased quality flooring,
as promised in the companys mission statement.
4. Does the source have the ability to investigate this audience?
The source can investigate the audience through the air test kits. Data can be
collected of how many homes tested positive for dangerous levels of
formaldehyde, and those situations can then be addressed individually with the
company.
Key Message
1.What is the key message that forms the basis of this public relations or marketing
communication program?
The key message of the communication program is that the company is selling
safe, quality, and affordable flooring to their customers. The company will
show their publics that they realize they made a mistake, take ownership, fix
the problem and continue to be rooted in their mission statement. The company
will break their strategic silence, and instead be transparent with their target
audience. The message will use logos, pathos, and ethos to convey the message.
Factual and policy proposition will also be used in communicating the message
to the audience.
2. How does this message use a rational appeal?
Rational appeal will be key in the communication message. The message will
use rational appeal by listing all of the new benefits of buying and installing the
flooring. One example would be the quality of the flooring for the low cost that
the consumer pays.
3. How does this message use an emotional appeal?
The message will use emotional appeal by relating the message to the target
audience. Lumber Liquidators tends to cater to the average American family.
The message will mention that Lumber Liquidators is the flooring choice for
families in America.
Key Messages Continued
1. Does your message include a rational appeal and/or an emotional appeal?
Yes, the message will include a rational appeal and an emotional appeal. Both
appeals serve different duties to express the plan of action and relay the message
effectively to the target audience.
Rational Appeal
1. How does your message make a rational appeal?
The message makes a rational appeal through factual and policy propositions.
The factual proposition will be stating that dangerous levels of formaldehyde
have been found in homes across the U.S. (not all), and this is demonstrated by
the 60 Minutes segment that Anderson Cooper did, and also by the air quality

33

test kits. The second appeal will be a policy proposition in which, the course of
action for resolving the problem is underlined and the target audience is
encouraged to support the brand during these changes, that will result in overall
improvement for the company.
2. Does the message feature a factual proposition, a value proposition or a policy
proposition?
The message features a factual and policy proposition. The factual proposition
will discuss product quality, future improvements, and commitment from the
company to ensure all flooring is safe and built with the best quality. The
message also uses policy proposition which will encourage brand loyalty stating
that the company believes in the quality of their product, and is dedicating to
selling only the highest quality products including safety, for low cost, which is
clearly outlined by the mission statement.
3. Which of the following provide arguments for your claims: physical evidence,
analogy, audience interest, comparison, context, examples, statistics, testimony, and
endorsements, and/or visual presentation?
Our claims have physical evidence, one being the 60 Minutes report, the second
being results from the home air quality test kits. Statistics will come in from
results from air quality tests results, and also from data collected on 60 Minutes.
Emotional Appeal
1. Does the message feature an appeal to positive emotions or negative emotions?
The message features an appeal to positive emotions through the virtue appeal.
The message is meant to be uplifting, regain trust in consumers, and re-build
brand loyalty.
2. What is the emotion?
Virtue.
Virtue Appeal
1. What virtue?
The message will use improvement appeals, which will focus on improvement,
progress of the cases found, and making the flooring better.
Verbal & Nonverbal Communications
1. How does your message use verbal communication?
The message will use verbal communication through appearances and press
releases. The message strategy will use drawing conclusions and reiteration as
the model in which the information will be presented to the target audience.
2. How does your message use nonverbal communication?
The message will use kinesics and occulesics because the message will be
delivered verbally by the spokesperson. The Lumber Liquidators logo will
appear on every message as well as on the clothing, specifically the shirts of the
spokesperson.

34

Verbal Communication
1. Does your message present only one point of view or more than one (opposing) point
of view? If more than one point of view is presented, is your message sandwiched
(stating your argument, noting the opposing argument, and finally restating your
argument and refuting the opposing argument)?
The message will present a two-sided argument since this is the most effective
in changing the audiences opinion, and it will further show that the company is
being transparent by recognizing both sides of the argument.
2. Does your message present a conclusion?
Yes. The message will follow the drawing conclusions model, the conclusion
being dangerous levels of formaldehyde removed from all flooring, flooring will
be labeled correctly, and all flooring will be quality flooring and meet the
brands expectations. This will be done primarily through reiteration.
3. Does your message reiterate its main idea?
Yes. The message will use reiteration as a way to present the message in many
forms, yet all forms saying the same thing, which will ultimately persuade the
target audience.
Clarity
1. Will your publics find your message clear, simple, and understandable?
The message will be clear, simple, and understandable, yet very direct and to
the point.
2. What is the education level of your target public?
The target public is middle class families in America. The average education
level for the target audience will be some high school, or a high school
diploma. The key public is middle class families in America, which do not all
have college educations. The entire audience needs to be able to clearly
understand the message. The language used in the message will be intellectual
and informative, but not written in a scholarly manner.
3. How does this compare with the Fog Index for your written message?
The message will be consistent with the Fog Index given for the target
audience. The Fog Index will not go beyond a high school (9th grade) level.
Power Words
1. Have you used powerful language in your message?
Yes. Power words like commitment, quality, and excellence will be used
to grab the audience and also reassure the audience of the objectives outlined in
the message.
Ethical Language
1. Does your message use pretentious or exaggerated language?

35

No. The message does not include a pretentious or exaggerated language, as in

this case it would be counterproductive. The message will be clear and
straightforward with the audience.

Nonverbal Communication
1. Does the presentation of your message include a symbol, a logo, music, symbolic
language, symbolic physical artifacts, symbolic clothing, symbolic people, a mascot,
symbolic use of color and/or a symbolic setting?
The message will include the logo, which will be worn on the clothing of the
spokesperson. Symbolic setting will likely be used in the factories where the
lumber is being manufactured and labeled to show the audience what the
message is telling them.
2. How could any of these nonverbal elements be made stronger?
The nonverbal elements could be made stronger by placing emphasis on eye
contact, hand motions, and making sure that Lumber Liquidators logo is always
seen. During the speech from CEO Tom Sullivan, he will make sure to
maintain eye contact with the audience to show his sincerity and commitment
to resolve these issues. The use of hand motions place emphasis on the
important points in the speech.
Tactics
Lumber Liquidators will develop interpersonal communication tactics to publicize the
complete overhaul of their development and creation processes:
Interpersonal Tactic 1: Organization Site Involvement, Factory Tour
Lumber Liquidators will host factory tours for those most invested in the company and
their products. It will be a first hand demonstration of the new way of doing things.
Lumber Liquidators factories are in different locations around the United States, Canada
and China. The factory tour would be organized at the factory with the most central
location for all involved parties. The goal of this tour would not be to show off but to
humbly explain how changes are being made to prevent any more accidents. The tour
guide should be well spoken and have a thorough understanding of the situation. This
will not be a performance; it is a demonstration of the real day-to-day functions of the
factory to grand piece of mind to concerned parties.
Will include key publics
Hands-on.
Can get audience feedback.
Potentially newsworthy.
Meaningful to the victims and families of victims
Objectives helped by this tactic:
Reputation Improvement
New/better factory relationships
Avoiding breaking health and chemical regulations
Resources:
Factory

36

 Flights and transportation

Hotel accommodations
Safety equipment for factory tours
One or more tour guide(s)
Main Advantages:
Personal interaction with those affected. This is not just good for the business or
PR but is a powerful way to continue to make amends and express compassion.
Disadvantages:
Expensive for how few people will experience it
Could backfire if no one wanted to attend
Timeline:
January 1, 2016- begin planning tour
February 2-3, 2016- two days in plant
February 4, 2016- allow visitors a full day for travel
February 5, 2016- Follow up with thank you cards and opinion survey via direct
mail
March 1, 2016- analysis of feedback from visitors
Total time: 4 weeks
Budget:
$379 is the cost of the average round trip plane ticket
If 20 victims/family members of victims consent to come along the cost of plane
tickets is $7,580
If 10 shareholders consent to attend the cost of plane tickets is $3,790.
The average cost of two nights in a hotel room is $274
If 20 victims/family members of victims consent to attend the cost for
accommodations $5,480
If 10 shareholders attend the cost of accommodations is $2,740
Total cost if 20 victims and/or family members of victims attend: $13, 060
Total cost if 10 shareholders attend: $6, 530
Total cost if 20 victims and/or family members of victims and 10 shareholders
attend: $19,590
Total cost: $19, 590
Interpersonal Tactic 2: Information Exchange, Educational Gathering, Conference
for Contractors
Lumber Liquidators will host a conference for contractors from all over the country to
attend. The conference will be an immersion course in how Lumber Liquidators create
their products and why they are what contractors should be putting in their homes. The
conference will be a national event. Lumber Liquidators will team up with other
companies that contractors often use. The theme of the conference will be How To
Build A House and companies that service every part of the building process will be
included. It will be a fascinating and unmatched educational experience for the
contractors and it will all be because of Lumber Liquidators.
Key public: Contractors
37

o Creates a secondary public of all the people who hire these contractors.
Creates a more educated public
o Educational classes and keynote speakers will be the main attraction of
the conference
Moderate cost
o The event itself will cost a large amount of money however any food,
novelty merchandise, and flooring purchases will bring in revenue.
o Contractors will have to buy a ticket to attend the event, which will at the
very least negate certain costs and, best-case scenario, will bring in
revenue.
An opportunity to explain new production process to contractors
Lumber Liquidators name and logo will be on all posters, invitations, fliers,
programs and merchandise at the event.
Hands-on
Audience Feedback
Provides and opportunity to make alliances
o Lumber Liquidators can invite suppliers of other construction goods that
contractors use in bulk. Example: paint suppliers, plumbing equipment
suppliers, insulation suppliers, etc.
o Suppliers that will not be included: carpet suppliers, other flooring
providers. We do not want to invite competitors to our event.
o Alliances made can provide credibility to Lumber Liquidators.

Objectives helped by this tactic:

Expanding reach to online potential customers with online advertising (part of
the online presences goal)
Improved reputation
Making new relationships
Resources:
Conference Center
Speakers/Instructors/Guest Lecturers
Travel costs for speakers (optional)
Hotel accommodations for speakers (optional)
Allies/Co-hosts/Co-sponsors
Maintenance staff
Main Advantages:
Improved and new relationships with allies in similar industries.
Implementation of vertical integration with those allies.
Very public
Potentially massive ripple affect from educating contractors
Disadvantages:
Requires travel and time off work for attendees and hosts
Only targets one key public

38

Requires significant advanced planning and coordination with multiple outside

groups (local hotels, the conference center, outside speakers and instructors,
etc.)
Timeline:
January 1, 2016- begin planning conference
February 1, 2016- Have location reserved
April 1, 2016- Confirm co-host/co-sponsors/allies
June 1, 2016- Confirm keynote speakers, guest lecturers and instructors
August 1, 2016- Send invitations
December 1, 2016- RSVPs are due
January 23- 27, 2017- hold conference, 1 week
Budget:
Conference Center (numbers are approximated).
5 day building rental $17,500
1 day maintenance fee $70
Rectangular 8 top tables with cloth skirt one time set up fee $28 each
Cost to send 3,000 invitations $15, 873
Total cost: $33,667

Interpersonal Tactic 3: Information Exchange, Speech, Address

The CEO of Lumber Liquidators, Robert Lynch, will make a speech publically
apologizing for the situation that occurred. It will be sincere and publicized. The CEO
will also explain how the factory process has changed in order to prevent this issue from
ever occurring again.
Speech: There is no denying an error has occurred. Tragedy has spread into the homes
of our customers. It has come to light that a sealant we often use for our laminate and
hardwood floors contained a dangerous and illegal amount of formaldehyde, a cancercausing carcinogen that is only legal in small amounts. This is an egregious mistake on
the part of our leadership, our factories and our regulators. This is an egregious mistake
on my own part. My sincerest apologies go out to the people affected in any way by our
careless errors. Your home should be your sanctuary, your haven, and your place of
uninterrupted comfort. Lumber Liquidators has impeded on your homes. We promised
you low prices and a quality product and instead laid formaldehyde on the floors where
your family runs and plays and lives their lives. We take full responsibility for this
mistake. We apologize heartedly to all affected. And we promise that the changes made
in our factories will prevent this from ever occurring again. Regulators and tests will
now be a part of every step of our process. From factory to the floors of your home,
Lumber Liquidators will guarantee the highest quality and safest products from this day
on. Our goal is you, our customer, and to keep your sanctuary exactly as youve always
wanted it to be. Thank you. [END]

39

Key publics and general publics

Low cost
News value
High visibility

Objectives helped by this tactic

Reputation Objectives
Reinvention of social media/online presence
o The speech could be live tweeted, shared on Facebook and posted on
YouTube.
Resources:
Speech writing team
PR team to gather press and create buzz
Media presence
Main Advantage:
A well-written speech will get straight to the point and be a very clear answer to
any questions.
Disadvantages:
Speeches are sometimes seen as insincere.
Could potentially not get the media coverage necessary to make it effective
Risks being too little too late
Timeline:
January 4, 2016- establish goals/objectives for what this speech needs to address
January 6, 2016- begin writing speech, research conference venue to read the
speech
January 11, 2016- review and revise speech
February 1, 2016- speech takes place
Total time: 4 weeks
Budget:
Budget: approximated cost for PR speechwriter: $40/hour (5 hours)
One day rental of conference room: $850
Total Cost: $1050
Interpersonal Tactic 4: Special Events, Progress Oriented Event, Grand Re-Opening
To demonstrate a fresh start and release new, safe products each Lumber Liquidators
store will host a grand re-opening of all stores. The grand re-openings will be
coordinated from the highest level of Lumber Liquidators hierarchy but customized and
personalized by each individual store to specifically target that specific community. The
grand re-openings will have booths with special, small demonstrations showing how
Lumber Liquidators makes their new, safer sealant. Special promotions and discounts
will be offered at the digression of each store. This event will be advertised nationally
and within small communities. All grand re-openings will take place on the same
weekend in order to put out consistent advertising.
Moderately low cost
o The changes in production are happening in the factories no matter what
so the stores main expenses would be local promotion and decorative
touches.
Direct Interaction with key publics (those looking to buy flooring)
News Value

40

Can be made unique to target more niche publics in specific areas around the
actual stores
Objectives helped by this tactic:
Increased/stronger online presence
o The grand re-openings can be advertised heavily online which is both
effective and inexpensive
Reaching out to broaden publics
Improved reputation
Resources:
Pre-existing customer base at all stores
Local word of mouth advantage to spreading the news which could not be
done on a nation wide scale
Main Advantages:
The ability of Lumber Liquidators employees to talk to their friends and
neighbors, draw interest and create understanding that is specific to that stores
location and demographic.
High level of impact on the key public, people looking to buy new floors for
their home.

Disadvantages:
Higher ups will have to coordinate more than 100 stores simultaneously
Requires personal touches for each store while staying within the guidelines of a
national goal.
Requires the stores to close for a small amount of time to bring in the new
products and prepare.
Timeline:
March 7, 2016- begin planning, discuss goals and objectives
March 22, 2016- begin any renovations the need to be done in stores
April 8, 2016- begin release of advertisements for grand re-opening
June 6, 2016- renovations completed, begin to gather items for booths, organize,
stores and merchandise
September 22, 2016- stores will re-open
Total time: 28 weeks
Budget:
Budget: Approximate costs to prepare stores for re-opening and add decorative
touches: $5000
Total cost: $5,000
Lumber Liquidators will develop the following tactics using organizational media to
publicize its new production process and significantly enhance its online presence:
Organizational Media Tactic 1: General Publications, Research Report
Lumber Liquidators will create a thorough, two-part research report on their own
factories. The first part will detail exactly how that amount of formaldehyde ended up in
that sealant and made it into the homes of American citizens. The second part will be a

41

complete explanation of the new factory processes that includes what is being done on
the technical side of the production to satisfy government regulations and create safe,
high quality safe, products. To emphasize that the report is a true representation of what
goes on in the factories, Lumber Liquidators will ask an outside source to conduct the
research. The research report will be published to help with reputations repair and
public perception.
Targets information-seeking publics
Moderate Cost to pay outside researcher
High level impact because it is completely straight forward and factual
Newsworthy
Benefits every Lumber Liquidator employee from the CEO to the delivery truck
driver because they would be better informed about what their job means.
Objectives helped by this tactic:
Reputation improvement because effort to correct the problem is clearly being
made
Only working with factories that completely follow government regulation and
work with integrity.
Resources:
Outside researcher
The factories being researched
Media
Main Advantage:
This tactic can never be seen as a gimmick. Much like a performance review at
work, it is Lumber Liquidators way of learning what was being done wrong and
how to now do it correctly.
Disadvantages:
Many people will not take the time to read a research report
Low visibility
The results could be worse than expected
It will be challenging to share results with key publics and maintain
transparency while simultaneously trying to keep the research from competitors.
Timeline:
February 22, 2016- begin planning for research report
February 25, 2016- select research team to visit factory and conduct research
February 26, 2016- conference call with research team to discuss both parts of
research, plan a research date to visit plant and study process
March 25, 2016- March 27, 2016- research team will visit plant and conduct
study
Total time: 5 weeks
Budget:
$379 for round trip plane tickets for researchers (team of four)
$274 for three nights in hotel room for each
Total cost: $4804

42

Organizational Media Tactic 2: Electronic Media, Digital Media, Website

Lumber Liquidators already owns and operates lumberliquidators.com. However this
website is disorganized, hard to navigate and far too unsophisticated for a company of
this size. A new technology and web design team will be hired to do a total online
assessment of the existing website. The new team will also make any and all changes to
the existing website to make it more modern and user friendly. When ordering online is
easier for the customer, Lumber Liquidators will increase online sales. In regards to the
formaldehyde situation, a more organized website will make it easier for concerned
customers to request the formaldehyde testing kits.
Key publics and general public
Reaches information-seeking publics
Enhances communication with publics
Provides easier communication with the next group of American homeowners, a
generation raised with computers since infancy.
Will make online orders easier to place
Objectives helped by this tactic:
Website improvement
Reaching out to new customers through the internet
Providing air quality tests to any customer who wants or needs one. Lumber
Liquidators already provides these test online but it is nearly impossible to find
on the current website. Ordering air quality test will be easier to do with a more
user friendly website.
Resources:
The existing Lumber Liquidators website
A technology team to update and maintain the website.
Main Advantage:
Easier, improved communication and online sales in a technological era.
Disadvantages:
The current website may have to be shut down in order to change it.
Does nothing for consumers who are not Internet users.
Timeline:
March 21, 2016- discuss goal, objectives for new website, what needs to bee
taken out/added
March 23, 2016- meet with website team to discuss what new website should
look like
March 25, begin reconstruction of new website
April 8, 2018- new website is completed, announces grand re-openings of stores
Total time: 3 weeks
Budget:
Approximated cost for web designer: $65/hour (5 hours per day, 4 days)
Planning fee: $300
Testing and launch fee: $1,200
Domain name charge: $15 per year
Total cost: $2,815

43

Organizational Media Tactic 3: Social Media, Blog

Lumber Liquidators will start a blog detailing the journey from crisis to triumph. It will
be candid and written in conversational tone. It will not mentioned the formaldehyde
issue directly but would rather start off fresh and discuss how the company is moving
forwards. While the research report is for the intellectual public, the blog is for the
general public who wants to be informed without being bombarded with technical
jargon.
Blog Post: Its a new day in the Lumber Liquidators headquarters. Today is the first day
that floors using the new sealant are reaching stores. Our new processes in factories are
some of the safest in the world and the big guys at HQ are positively giddy for this first
shipment to be placed in homes.
But how is the process different? In the simplest terms, weve ended
relationships with the factories that do not and did not care to follow government rules
about formaldehyde in floors. We told them that we are never ever ever getting back
together. Its been a whirlwind experience but has made our bonds with our other
factories that put more care into their work much stronger and vastly improved. We
officially have friends in the right places. Those friends have been making quality floors
all along and that why we value them even more today.
These new floors are the same beautiful, inexpensive floors our customers have
always loved but now they are safer. Safe for you and your family and your friends and
your pets. Everyone in your home will be safe and completely in awe of your stunning
floors. So join us in the homecoming celebration of Lumber Liquidators new batch of
high quality flooring. You will not be disappointed again, thats the Lumber Liquidators
promise [END]
Key publics and general publics
Makes the company seem more youthful
Easy to use platform for transparent communication
Lumber Liquidators has control of how and when the information is shared
Low cost
Interactive
Objectives helped by this tactic:
Improved online/social media presence
Improved website user experience
Reaching out to consumers via the Internet
Resources:
Author/team of authors
Domain name
Lumberliquidators.com can be attached the blog or the blog can be a new
addition to lumberliquidators.com.
Main Advantage:
A blog is cheap way to communicate with the everyday public. Those left out by
the highly intellectual research report will get all their information from the blog
like its coming from a friend.

44

Disadvantages:
Enormous amount of blogs on the Internet to compete with and stand out
against.
A blog only works if its read.
Technical, industry terminology may be hard to include in a casual blog setting.
Leaves out consumers who are not web savvy.
Timeline:
May 2, 2016- Begin planning, discuss goals, objectives of blog
May 3, 2016- Put together a web team to design and create new blog
May 7, 2016- Launch new blog and begin posting daily/weekly updates about
Lumber Liquidators
Total time: 1 week
Budget:
Domain name charge: $10 per year
Web designer: $60 per hour (2 hours a day, 3 days)
Testing and launch fee: $400
Total cost: $770
Organizational Media Tactic 4: Social Media, Social Networking
Lumber Liquidators will be implementing a completely new social media strategy.
Increasing followers opens up lines of communication and increases awareness. Three
out of our of these organization media tactics are Internet based. This is because
Lumber Liquidators is severely lacking in all online capacities and online feedback,
online sales and online communication can all be hugely beneficial for the company.
Social Media Content created by our team:

45

Lumber Liquidators @hardwoodforless

Our new floors are so safe you could eat off of them. What foods would you eat
off of the floor? We won't tell. http://bzfd.it/1loetEz
(135 Characters)

Lumber Liquidators @hardwoodforless
The wait is over; our nationwide Grand Re-Opening starts in stores NOW. Click
here to find the store closest to you http://bit.ly/1TlxxyZ
(139 Characters)

Lumber Liquidators @hardwoodforless

Keep your floor flawless with the special edition @Swiffer Sweepervac only
available at Lumber Liquidators stores & lumberliquidators.com
(139 Characters)

Lumber Liquidators
1 hour
Your dream home is only one day away, Lumber Liquidators nationwide Grand
Re-Opening starts in stores tomorrow. Join us at your local store for educational
demonstrations, special guests and the unveiling of our new and improved
product line. Click here to find the store closest to you http://bit.ly/1TlxxyZ.

46

Lumber Liquidators
1 hour
Are you a contractor ready to learn more about the flooring industry? Lumber
Liquidators will be hosting a Contractors Conference on September 22, 2016. A
five day, all inclusive educational experience with experts from every step of the
construction process including flooring, plumbing, insulation, electric, painting
and more. Learn more and register here
lumberliquidators.com/contractorsconference.

Objectives helped by this tactic:

Improved/stronger online presence
Overhaul of Lumber Liquidators Facebook, Twitter and Instagram
Increase of followers on social media
Reaching potential customers online
Resources:
Twitter
Facebook
Instagram
Hootsuite.com
Social Media coordinator
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 Long term social media plan

Main Advantage:
Social media gives Lumber Liquidators access to groups of people that it never
had access to before and vice versa, those people will now have access to
Lumber Liquidators. Social media is essential for any company wanting to
succeed in this day and age.
Disadvantages:
Could become a platform for complaints
Has no benefit for customers who do not use the Internet
Requires constant monitoring
All of the social media accounts would be useless if they cannot gain followers.
Timeline:
March 28, 2016- begin planning for improved social networking, discuss goals
and objectives of this task
March 29, 2016- put together a social media team that will be in charge of
keeping sites updated with current information
March 30, 2016- team reviews current social media profiles and accounts to
decide what should be kept and what should be taken off of existing social
media accounts
April 4- April 7, 2016- create/update new social media accounts
April 8, 2016- launch new blog and begin posting, include posts about grand reopenings
Budget:
Web design team to update social media accounts: $40 per hour/per member, 3
members, 3 days
Launch and testing fee: $700
Total cost: $1,060
Lumber Liquidators will use the following News Media Tactics to publicize their
upcoming events, new program implementations and to increase social media
engagement.

News Media Tactic 1: Direct News Material, Event Listing

Lumber Liquidators will target small communities with event listings in local papers.
The event list will include the contractors conference, social media and website relaunch dates and the date of the grand re-opening of their local store. The event list will
be customized to the specific publication that is printing it. The event list will also be
shared with trade magazines like contractormag.com, Equipment Today magazine and
Sustainable Construction magazine.
Low Cost
By utilizing smaller, local media like the town newspaper, the announcement
reaches the appropriate audience and key public. A homeowner in Minnesota
does not need to know about the grand re-opening in Tennessee

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Putting the event calendar in niche trade publications specifically reaches the
key public of contractors
Key publics are reached and general public gains awareness
Objectives helped by this tactic:
Reputation Improvement
Broadening publics

Resources:
PR team that reaches out to the right media outlets
The publications themselves
Local stores that can hang up the event calendar from their local paper and share
it with their community
Main Advantage:
The event listing will spread the word about multiple things happening for
Lumber Liquidators and will target the appropriate key publics for two big
events, the grand re-openings and the contractor conference
Disadvantage:
The event listing will most likely not be seen by anyone who does not
specifically read a certain publication
Could be easily skimmed over
Many people read newspaper and magazines during times of transition (on their
way to work, waiting at the doctors office, etc.) and may not have their calendar
in front of them to write the dates down
Timeline:
January 18, 2016- begin planning event listings, discuss which major events will
be included in listings
January 20, 2016- begin creating layouts for listings, have calendar of events
February 3, 2016- have the layouts for each listing created with events
February 8, 2016- print, begin distributing copies
Budget:
Design 4 hours at $50/hour: $200
Paper $200
Printing and distribution: $1400
Total cost: $1800
News Media Tactic 2: Direct News Material, News Release
Lumber Liquidators will write and distribute news releases to inform the media of the
nationwide grand re-openings and explain why the re-openings were necessary.

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News Release created by our team:

News Release
For Immediate Release
November 30, 2015

FOR MORE INFORMATION

CONTACT
Steve Calk
Lumber Liquidators Investor Relations
757.566.7512

TOANO, Va., Nov 30, 2015/ PRNewswire/ The largest specialty retailer of hardwood
flooring in North America, Lumber Liquidators (NYSE: LL), announced today a grand
re-opening of all 220+ stores in the United States and Canada to introduce new, safer
sealant products.
The Grand Re-Opening is the beginning of a new Lumber Liquidators. After the
makeover of our factory processes we are a new company and we are eager to let our
customers see what we have been up to, said CEO Robert Lynch.
In response to unfavorable allegations in regards to certain Lumber Liquidators
products, the company has cut ties with factories that do not uphold the highest level of
safety standards. Lumber Liquidators has also reformed and redesigned the factory
process in order to prevent any malfunctions from occurring again and to ensure the
quality of all Lumber Liquidators products. These new products will be available for
purchase as part of the grand re-opening event.
As we began 2015, Lumber Liquidators faced a number of challenges. We want to
reassure you that our team remains vigilant and more committed than ever to upholding
the principles of integrity and value that built this company, said founder Tom
Sullivan.
Each store will have specialized events as part of the grand re-opening celebration. Instore demonstrations will show customers first hand how the Lumber Liquidators
process has changed and how their particular floor is to be installed. Booths will be
open to showcase different types of flooring and sealants.
The goal is to inform the consumer about every possible detail of their future floors.
We will wipe out all concerns by being completely transparent and providing
educational experiences, continued Lynch.
The grand re-opening event will be held on September 22, 2016 at all Lumber
Liquidators stores throughout the United States and Canada.
###

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 Low Cost
Increases awareness
Targets this events key publics
Can be shared via print media or online media
Objectives helped by this tactic
Stronger social media presence
Broadening publics
Filtering & distributing only relevant information
Resources:
PR Team
Media outlets
Social media & website
Main Advantage:
A news release is the most efficient and classic way to give information to the
media. It will be easy for the PR team and highly effective.
Disadvantages:
The media is under no obligation to do anything with the press release.
Timeline:
April 11, 2016- begin planning news release, discuss goals for news release
April 12, 2016 begin drafting news release statement
April 18, 2016- revise news release statement as needed finalize
April 21, 2016- release news statement
Budget:
Approximate cost for PR release writer: $40/hour (4 hours)
Total printing and distribution fees: $1,600
Total cost: $1760
News Media Tactic 3: Opinion Material, Position Statement/Position Paragraph
Tom Sullivan, founder of Lumber Liquidators, will write and publish a position
paragraph discussing why government regulations on chemicals in flooring are
necessary. It will position Lumber Liquidators as a green organization and show the
public that the values of the company have changed and improved.
Position Paragraph created by our team:
On July 7, 2010 President Barack Obama signed the Formaldehyde Standards for
Composite Wood Products Act into law. In early 2015, I am sad to say, Lumber
Liquidators broke those laws established by our president. Dangerous levels of
formaldehyde were found in our products and our customers were put at risk. This
situation has completely changed the way I see this company that I started over 20 years
ago. My eyes have been opened to the dangerous of careless suppliers, lax factory
standards and inattentive leadership. For this reason, Lumber Liquidators is now and
forever more devoted to being a green company. A lack of environmental
consciousness is not an option any more. When people are getting poisoned while they
lay on the floor to play with their children, you can no longer turn a blind eye. We can
no longer turn a blind. We urge all others in our industry to do the same. Do not make

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our mistakes comrades. We are the living example of what happens when government
regulation is ignored to save a quick dollar. Our government agencies have set a
standard and now we will follow suit. Lumber Liquidators, through intense repair,
reshaping and redesign of our business from top to bottom, intends to be the new
standard in green living. From our factories to our stores to my office at headquarters,
environmental care is now among our top priorities. Green floors may not sound too
attractive in the literal sense but when it comes to our customers and their homes we
will not stop until every Lumber Liquidators product is safe, healthy and green.
Tom Sullivan, Founder of Lumber Liquidators [END]
Key publics
Low cost
High exposure
Can be shared on social media outlets
Objectives helped by this tactic:
Reputation improvement
Stronger social media presence
Strict adherence to health and chemical regulations
Distancing the company from factories that do not follow regulations
Resources:
Author
PR Team
Media outlets
Main Advantage:
The position paper would very publicly state that Lumber Liquidators is not
what they used to be. It will send a clear signal to potential allies in government
and environmental protection. This tactics also stratifies multiple objectives at
the same time.
Disadvantages:
Opens the author up to scrutiny
The paper may not spread as much or as quickly as desired
Risks being seen as too little too late
Timeline:
April 18-, 2016- begin planning position statement, discuss goals and objectives
April 19, 2016- begin position statement draft
April 25, 2016- have copy of statement, revise as needed
April 28, 2016- release statement to media outlets
Budget:
Approximate cost for PR release writer: $40/hour (2 hours)
Printing and distribution for copies: $1,200
Total cost: $1,280
News Media Tactic 4: Interactive News Opportunities, News Conference
A Lumber Liquidators representative will speak at a news conference to announce the
grand re-openings of all Lumber Liquidators stores. The representative will explain the

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backstory of why the stores are being reopened and why the products have changed.
The representative will take questions from the media.
News Conference Statement created by our team:
Lumber Liquidators started 2015 with a scandal. We do not deny it. But now,
after working tirelessly to correct our mistake, Lumber Liquidators is proud to present
you the public with a completely new product line of safe, healthy and beautiful
flooring for homes all over the nation and what better way to kick off our new way of
doing business than a grand re-opening of all of Lumber Liquidators 220+ stores across
the United States and Canada beginning on September 22, 2016.
Every store will have its inventory refreshed and restocked with the new line of
Lumber Liquidators flooring and sealant and will open its doors as a new business. A
business that is in helpful, educational, reliable, inexpensive and most importantly safe.
The Grand Re-openings will include in-store product demonstrations, booths
and kiosks with flooring samples and a complete history of the products, and, from our
friends at Swiffer, an all new model of the Swiffer Sweepervac only available in
Lumber Liquidators stores and online at lumberliquidators.com during the grand reopening event.
We invite the public from all over the United States and Canada to visit their
local Lumber Liquidators on September 22, 2016 to see with their own eyes the
transformation this company has made to once again provide all consumers with a
sensational product that is better than ever. Thank you.
(Allow for questions)
[END]
Key publics, media
Low cost
Potentially high levels of media exposure
Can be shared on social media
Targets multiple publics and secondary publics by inviting any news outlets that
want to attend
Objectives helped by this tactic:
Stronger social media presence
Potential new relationships with media outlets
Reputation improvement by showing that Lumber Liquidators has fixed the
problem
Resources:
Media
PR Team
Spokesperson/Representative
Place to hold the press conference

Main Advantage:
The main advantage of this tactic is how far journalism, especially television
news, can spread information. By bringing as many journalists as possible to one
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event Lumber Liquidators is announcing the grand re-opening to potentially

thousands of people with one statement.
Disadvantages:
The media does not have to write about it.
Journalists do not like to get information at the same time as their competing
journalists and news sources.
The representative will have to make points that interests print media, television
media and online media with one news conference.
Timeline:
April 11, 2016- Determine and reserve location
June 1, 2016- Confirm co-host/co-sponsors/allies
September 1, 2016- Send invitation letters
November 1, 2017- RSVPs due
December 23- 24, 2017- one day to hold the conference
Budget:
1 day conference room rental: $3,500
Maintenance fee for conference room: $70
PR team to prepare spokesperson: $55 per hour (8 hours total, 2 people)
Total cost: $4,450
Lumber Liquidators will use the following advertising and promotional tactics to
improve their reputation, gain name recognition and make the public aware of
upcoming events.
Advertising and Promotional Tactic 1: Electronic Media Advertising, Television
Commercial
Lumber Liquidators will create a television commercial announces the grand reopenings of their stores. The commercial will be generic enough to apply to any region.
The end of the commercial will include the store location, hours and date of the reopening and will be customized by region. The commercial will also include Lumber
Liquidators social media and website information.

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Television Commercial Script written by our team:

Television Advertisement
Audio
A wordless, fun tune plays in the
background.

Video
A cute, chubby, big-eyed baby is in a
doorway in a crawling position but not
moving.

Mother: Come on sweetheart dont you

want to crawl to mommy?

An eager mom looks at the baby with a

smile and signals Come on with both
hands.
Baby looks up at mom.
Moms smiling face.
Baby looks in directly in front of himself.
The carpet in front of the baby is revealed
to be dirty, matted, frayed, almost monster
like.
Baby looks up at mom with an amusing
but quizzical and suspicious look.

Narrator: No one likes low quality

flooring.

Narrator: Visit Lumber Liquidators on

September 22th for our Grand Re-opening
event and save hundreds on beautiful, safe
flooring that everyone will love.

Key Publics
Targeted communities
High exposure
Objectives helped by this tactic:
Reputation Improvement
Increased social media presence
Resources:
55

Camera follows as the baby turns back to

mom and the monstrous carpeting and
crawls away down a long hallway.
Mom looks on confused/exasperated and
watches baby crawl away.
Cuts back to baby crawling away, Lumber
Liquidators Logo and the address and
contact information for the areas closest
Lumber Liquidators appear on the screen
on top of the image.

Local cable
Television networks
PR team
Script Writer
Actors
Production team
Director
Producer

Main Advantage:
A generic television advertisement with specific local information featured is a
highly visible and targeted way to attract local publics to their local Lumber
Liquidators grand re-opening. A television ad will reach publics that the event
listing and news release did not.
Disadvantages:
People can walk away from, fast-forward through, sleep through and ignore
television commercials very easily.
Higher cost
Timeline:
June 27, 2016- begin planning for television commercial, brainstorm ideas for
commercial concepts
June 29, 2016- begin writing script, create storyboard to help illustrate the
commercial, discuss cast members
July 1, 2016- release casting calls for commercial
July 18- July 20, 2016- hold auditions for commercial cast
July 25, 2016- begin filming
July 27, 2016- filming is complete
July 28- August 5, 2016- commercial is edited
August 15, 2016- commercial begins airing and plays through out the year
Budget:
Budget: average overall cost for low budget commercial is $75,000 for a yowday shoot
Total cost: $75,000
Advertising and Promotional Tactic 2: Electronic Media Advertising, Digital Media
Advertising
Lumber Liquidators will produce a superstitial advertisement that is target to the
youngest of their key publics. This advertisement will reach an online audience that
does not have cable or read the paper. The advertisement will have a For More
Information Link to Lumber Liquidators website and social media accounts.
Key publics
High visibility
Low cost
Objectives helped by this tactic:
Improved online presence

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 Increased social media use

Broadening the publics
Resources:
PR team
Graphic designer
Website proprietors who will allow the advertisement on their website
Main Advantage:
The main advantage of an online is reach. People who watch the news every
night and have the paper delivered to their homes are not the same people who
live for the Internet. A digital advertisement, along with the other tactics, allows
for an incredibly broad reach into a multitude of demographics.
Disadvantages:
People are often annoyed by Internet advertisements
People often switch tabs or applications on their computers while they wait for
an ad to finish
May waste some time reaching publics that are not yet old enough to be
homeowners.
Timeline:
July 25, 2015- begin planning for digital ad, based off of same idea as television
commercial, decide where advertisements will be placed
July 29, 2016- use still image from television of baby crawling on floor for
digital background photo, add Lumber Liquidators information and click the ad
for more information feature on the advertisement
August 15, 2016- advertisement is launched along with television ad, both
advertising for Lumber Liquidators re-openings
Budget:
Web design team fee: $80 per hour (3 hours)
Top/bottom banner ad space on internet directory page average cost: $2,000
Total cost: $2,240
Web Ad designed by our team:

57

No one wants
to crawl on low
quality floors...

Lumber
Liquidators
Hardwood
Laminate
Vinyl
Cork &
Bamboo Flooring
Click the ad for
more information

Advertising and Promotional Tactic 3: Out-of-Home Advertising, Billboard

Lumber Liquidators will create a billboard that is clean, simple and attention grabbing.
The billboard will advertise the company itself rather than a specific event. The goal of
the billboard is name recognition.
Billboard designed by our team:

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Optimal Slide,
Minimal Cost

Lumber Liquidators
Hardwood, Laminate, Vinyl, Cork and Bamboo Flooring

Key public and general public

Low Cost
High visibility
Can be kept up for extended periods of time
Objectives helped by this tactic:
Reaching new publics
Resources:
Design team
Billboard company/owner
Advertising team or agency
Main Advantage:
The main advantage of billboard advertising is the huge amount of people who
will see it on the average American highway.
Disadvantages:
Design and wording are limited
Message has to be very brief
Motorists do not always look up at or completely pay attention to billboards
Timeline:
August 1, 2016- begin planning for millboard design, brainstorm ideas for
billboard image/ text

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August 10, 2016- finalize billboard design and send out for creation, discuss
locations for advertisement
August 29, 2016- billboard designs have been made, send them out to be hung in
desired locations
September 1, 2016- billboards are complete and advertising for Lumber
Liquidators
Budget:
Average cost to print a billboard: $500
Design team: $40/hour (6 hours)
Total cost: $740

Advertising and Promotional Tactic 4: Promotional Item, Home Accessory

Lumber Liquidators will partner with a company like Swiffer to create a special mop
specifically for hardwood and laminate floors. The mop will be Lumber Liquidators
distinct yellow color and have both the Swiffer and the Lumber Liquidator logo on it.
The mop will be given as a gift to customers with every purchase. These specialized
brooms can be featured at the Contractors Conference, as part of the grand re-openings
and can be promoted on Lumber Liquidators new website and social media platforms.
The partnership with a company like Swiffer will increase awareness of Lumber
Liquidators as well as lend credibility to the company.
Objectives helped by this tactic:
Improved/new relationships
Improved reputation with customers by showing their affection for the customer
with gift giving
Resources:
Swiffer/partner
PR Team
Employees in the stores who can get customers excited about the special free
gift.
The promotion can be mentioned in the television commercial, digital
advertisement, on the billboard, in the speeches and in the news releases.
Main Advantage:
An alliance with/endorsement from a powerful company like Swiffer gives
Lumber Liquidators creditability within the industry and with consumers.
Disadvantages:
Relying on another organization for products needed for a time sensitive event
like the grand re-openings.
Most people already have mops and brooms
Timeline:
July 12, 2016- meet with Swiffer associates to discuss new yellow floor mop
model
July 15, 2016- begin design for new Swiffer model, will be yellow and include
Lumber Liquidators logo
August 24, 2016- manufacturing of new mop models are complete and ready to
distribute during grand re-openings

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August 25, 2016- new hello Swiffer mops are sent out to stores around the
country for purchasing
Total time: 7 weeks
Budget:
Graphic design/product design team: $70/hour (10 hours)
Price of each mop: $18
Total cost: $700 plus construction of each mop

Planning
What specific initiatives or sections make up this plan?
This part of the Lumber Liquidators plan will be made up of several different strategic
tactics. These strategies will come from interpersonal tactics, organizational media
tactics, news media tactics and advertising and promotional tactics.
What tactics are associated with this plan?
Interpersonal Tactics:
Factory tour
Conference
Public apology speech
Grand re-opening of stores
Organizational Media Tactics:
Research report
Reconstruction of website
Blog
Improved social networking
New Media Tactics:
Event listing
News release
Position statement
News conference
Advertising and Promotional Tactics:
Television commercial
Billboard
Home accessory
Digital advertisement
Strategic Implications
Will this approach help the organization to interact with the appropriate public?
Yes. Through the use of these tactics, Lumber Liquidators will strive to recreate a
positive reputation with those they have wronged as well as attract new and loyal
customers. By using these strategic tactics, Lumber Liquidators will be able to reach the
public as a whole, build a stronger presence in local areas and communities and nurture
relationships with future business partners.

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What is the main advantage to this approach?

The main advantage to this approach is that it gives Lumber Liquidators the opportunity
to rebuild themselves as an organization. By using these tactics, Lumber Liquidators
can re-establish a positive relationship through several mediums with customers they
have lost, customers they have wronged, and publics they have let down as well as form
new partnerships with other organizations. Overall, these tactics will benefit Lumber
Liquidators and help to create a new, successful relationship with all of its customers
and supporters.
Schedule
What is the schedule for this project?
The strategic plan will begin its tactic construction January 1, 2016. The majority of the
events will take place in the year 2016 and some will be planned and scheduled to held
through March of 2017. at approximated 63 weeks total (see timeline for each tactic in
Step 7).
What is the budget for this project?
Based on our budget for this project, this plan will cost roughly $137, 136.00
Who is responsible for this project?
This strategic plan will consist of many different managers and leaders in different
fields in order to assure that each tactic is carried out to the best of its ability. Those in
charge of these tactics will include:
- Speech writing teams
- PR team
- Team of authors for blog posts its.
- Social media/web team
- Spokespersons
- Scriptwriters
- Production team
- Graphic designers
- Advertising team/agency
Evaluation
How will you measure awareness objective?
Track media coverage and the do a content analysis on articles and news
reports as to their positive or negative image of lumber liquidators.
Message exposure will be another way to measure awareness objective.
The number of people in the key publics who were exposed to the
message. This will be done by a clipping service that will track
publications and broadcasts by Lumber Liquidators.
How will you measure acceptance objective?
Acceptance objective will be measured by audience feedback and
benchmark studies. The audience feedback will be measured through
software, such as media room, which will collect the amount of hits from

62

Lumber Liquidators website. The benchmark studies will take place

every three months beginning on January 1, 2016. The benchmarks will
evaluate the key publics perception of Lumber Liquidators. The threemonth benchmarks will allow data to be collected throughout different
public relations tactic. The data collected will be compared with data
from the previous benchmarks.
How will you measure action objective?
Direct observation will be used to measure the action objective.
Measuring the amount of product sold in all of the stores across the
United States will do this. The increase or decrease in product sales will
be a direct observation of the success of the strategic plan.
Methodology
How and when can this information be obtained: via after-only study or before-andafter study?
The before-and-after study will be the most effective in obtaining
information. The study will gather data from the current key public by,
developing surveys for consumers dealing with product satisfaction,
pride in the company, knowledge of the formaldehyde issue, and air test
quality kits and regulations. Then the data collected will be used to
create benchmarks that will be used in the post evaluation.

63

(Benzinga)
Which research methodologies would be most effective?
Judgmental assessment: personal experience will be the most effective
in gathering research in this case. Surveys asking people what they like
about the changes to the company, or if they are more or less willing to
buy floors from Lumber Liquidators can help collect data on the
success of the campaign.
Content analysis of representative artifacts. Which artifacts?
A content analysis of the current media artifacts like news releases,
social media posts, reports, letters, or any news coverage will be
collected and analyzed to see how many people were reached, and the
effectiveness of the message. These will be sorted by topic, source of
communication, and destination. The data collected will provide results
for outcome and effectiveness of each artifact and tactic used.
Media tracking- will be used through MediaMiser.com, which allows
data of social and traditional media to be collected. The data collected
will be used in evaluating the success of the tactics used on social
media and traditional media. An example taken from MediaMiser.com
of what the software does is displayed below.

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Evaluation
Indicate how each of the methodologies below might be used to evaluate each
individual tactic.
What standards of accuracy and reliability are needed for the evaluation?
Who can provide information for evaluation?
Evaluation of Outputs
Message distribution will be used to focus on media contacts and will evaluate
the amount of social media posts, news releases, and content uploaded to the
Lumber Liquidators website. This will only be used to measure what Lumber
Liquidators did to spread their message.
Evaluation of Awareness Objectives
Message exposure- a clipping service will be used to track the publications
released by Lumber Liquidators. MediaMiser.com will be used to track traffic of
the website, how long the person stayed on the website, what pages they viewed,
and the amount of visitors on the website.
Message content analysis- will be used to collect data on news releases, printed
articles, and social media posts. The data will then be separated by topic,
destination, and source of communication. The results should show the
effectiveness of each.

65

Evaluation of Acceptance Objectives

Audience feedback- will be evaluated by the amount of hits the Lumber
Liquidators website gets each month.
Benchmark study- will occur every three months and will collect data to
determine the success of the tactics used.

(Benzinga)
Evaluation of Action Objectives
Direct observation of results- will be evaluated primarily by the amount of
product sold. Other factors will include stock inflation or deflation, consumer
opinion, consumer knowledge of the brand, and consumer loyalty.

Audience
Who will receive the final evaluation?
The final evaluation will be sent to the key publics to collect data and
determine if the public relations campaign was successful.

66

How will it be used?

The results from the study will indicate the success of the campaign.
If it was successful then the goals of the strategic plan have been met.
If the campaign was not successful, the strategic planning team will
meet again and revise tactics that were not a success.
What level of candor are decision makers willing to receive?
Decision makers must be open to all feedback positive or negative.
The brand is trying to rebuild, and re-establish a relationship will the
key public, so all levels of candor must be taken into consideration to
ensure an effective strategic plan is possible.
A. Evaluation Schedule
Timeline for implementation report
The implementation report will go in effect January 1, 2016. This
will measure current program tactics, a schedule of progress to date
towards implementing each tactic, and any left over work that
remains. The report will include any problems, and how those
problems were resolved. A budget analysis will also be included in
the implementation report to show how much money has been spent
thus far.
Timeline for progress report
A progress report will be conducted on June 1, 2016. The progress
report will serve as a midpoint evaluation. At this time if any tactic
seems to be ineffective, strategic modifications can be made to the
program. This report will also be an asset to the marketing and public
relations departments.
Timeline for final evaluation
A summative report will be done on December 30, 2016. The will
evaluate the entire success of the program, and if the goals of the
strategic plan were met. A before-and-after study will be used to
collect data from the previous year to recent day. The data should be
collect from the implementation and progress reports.
Evaluation Program Checklist
For this evaluation program:
Is it useful to use the organization?
The evaluation program is crucial to the organization because this will measure the
effectiveness of the strategic plan. The evaluation program will ensure that the
goals, objectives, and vision of the company are being met, ultimately leaving the
key publics satisfied.
Is it clearly linked to established objectives?
Yes. The evaluation program is directly linked to the organizations objectives.
Is it appropriate as to cost?
Yes, the evaluation program fits into the budget set aside for message creation,
distribution, and evaluation.

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It is appropriate as to time?
Yes
Is it ethical and socially responsible?
Yes.
Is it credible, with accurate data?
The data will be credible because it will be collected from MediaMiser.com, an
online media software program designed for measuring effectiveness of
messages, and also by a clipping service, which is also designed to track
publications.
Is it doable?
The evaluation program is very doable. The most important part of the
evaluation plan is to make sure that the benchmark studies and progress reports
meet the assigned deadlines.

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References:
Abrams, Rachel. "A Challenge to Lumber Liquidators Tests." The New York Times.
The New York Times, 17 Apr. 2015. Web. 21 Oct. 2015.
Financial SWOT Analysis - Strengths, Weaknesses, Opportunities, Threats of Lumber
Liquidators H. Web. 9 Sept. 2015.
Forbes. Forbes Magazine. Web. 14 Sept. 2015.
"Lumber Liquidators Braces for Criminal Charges." CNNMoney. Cable News Network.
Web. 14 Sept. 2015.
"Lumber Liquidators." CBSNews. CBS Interactive. Web. 4 Sept. 2015.
Lumber Liquidators (LL) Disclosed on Wednesday That the Justice Department Is
Seeking Criminal Charges against the Company for Violations under the Lacy Act.
"Lumber Liquidators Braces for Criminal Charges." CNNMoney. Cable News
Network. Web. 14 Sept. 2015.
"Lumber Liquidators: Hardwood Floors For Less!" Lumber Liquidators: Hardwood
Floors For Less! Web. 4 Sept. 2015.
"Lumber Liquidators Holdings, Inc Financial SWOT Analysis - Strengths, Weaknesses,
Opportunities, Threats of Lumber Liquidators H." Lumber Liquidators Holdings
Inc
Lumber Liquidators Holdings, Inc. MarketLine Company Profile. Jun2015, p1-18. 18p.
"Lumber Liquidators Sends Thousands of Customers 'Idiot-Proof' Test Kits." NBC
News. Web. 19 Oct. 2015.
"Pure Air Control Services Nationally Recognized." -- Re CLEARWATER, Fla., Dec. 16
/PRNewswire/ --. Web. 19 Oct. 2015.

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Shares of Lumber Liquidators (LL) Plunged 15% in Early Trading. "Lumber

Liquidators CEO Resigns." CNNMoney. Cable News Network. Web. 11 Sept. 2015.
The Report CNN's Anderson Cooper Revealed Chinese-manufactured Laminate
Flooring Sold the Company Contains High Levels of the Cancer-causing Chemical
Formaldehyde. "Lumber Liquidators Stock Pummeled after '60 Minutes' Probe."
CNNMoney. Cable News Network. Web. 14 Sept. 2015.

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