MORRISVILLE, N.C., Oct. 6 /PRNewswire/ -- C3, Inc. (NASDAQ:CTHR) -- the
exclusive worldwide manufacturer and marketer of moissanite gemstones, a
proprietary, colorless, lab-created gemstone -- made several significant
announcements today about the company's new global marketing strategy.
Effective immediately, C3 will begin doing business as Charles & Colvard.
This name reflects the heritage of the company as well as the long-term
branding and marketing strategy to be executed in the fourth quarter and
beyond. In conjunction with this program, the company has hired The Kaplan
Thaler Group as its new advertising agency of record (AOR). Based in New York
City, Kaplan Thaler was hired to market Charles & Colvard as an image-based
company, while the former AOR, Barber Martin & Associates, completed short-
term projects related to C3, Inc.
The integrated marketing campaign will break in mid-November and will
include executions on cable television, in women's and lifestyle print
publications, local market special events and promotions, and cinema
advertising. An estimated budget of $6 million is projected for 2000, with an
additional investment of $2 million in the fourth quarter of 1999.
Furthermore, the integrated marketing program, which includes point-of-
purchase materials, will be available to Charles & Colvard's exclusive
retailers in the second half of October. This global campaign will target a
demographic of women 25-55 with a $50K plus annual income, will feature a new
corporate logo, and will expand into international markets next year.
"At a time when women are increasingly buying jewelry for themselves, we
are very excited to be joining the Charles & Colvard team as they are
aggressively marketing their unique and beautiful moissanite gemstones," says
Linda Kaplan Thaler, chief executive officer, The Kaplan Thaler Group. "This
business signals not only another big win for us in a two-month period, but
underscores the agency's strength in branding lifestyle-oriented products."
Charles & Colvard also announced the release of the company's premier line
of designer moissanite jewelry, Gioielli Moiss. The line was developed by
noted Italian jewelry designer Bruno Montaldi, and is available in select
stores throughout America, Europe and Asia.
Jeff N. Hunter, chairman and chief executive officer of Charles & Colvard,
said, "The company has been planning for a global advertising program since
our inception in 1995 and is now confident in launching this campaign due to
the superior crystals we are receiving. This program, spearheaded by Mary
Katherine Rafferty, our director of marketing and public relations, will
strongly support our existing retailers, attract new retail partners and, most
importantly, build consumer awareness and demand for the brand."
Hunter added, "The company's name change to Charles & Colvard completes
the company's transition from a technology-focused manufacturing company to a
consumer-focused marketing company."
In other corporate news, Charles & Colvard announced third quarter
shipments aggregating approximately 10,000 carats. The company's expense rate
increased in the third quarter over the second quarter as it incurred rising
expenses related to the development of the marketing program. In concert with
the advertising program, the company's sales efforts are focused on ten of the
leading media markets in the U.S. to capitalize upon placement of the product
in influential, trend-setting cities. The company will continue to add
qualified retailers domestically and expects carat shipments to increase in
the fourth quarter. As Charles & Colvard begins to see sell-through of its
products at retail as a result of the marketing program and the holiday retail
season, it will announce estimates for fourth quarter carat shipments in
December. However, given the current forecast the company does not expect to
meet previously announced estimates for the second half of the year. The
company believes the strategic global marketing program will address issues
that surfaced over the last several months. These include a slower than
expected rate of adding retailers domestically, lack of targeted retailer-
driven marketing programs abroad, and third quarter seasonality, particularly
in international markets.
The Kaplan Thaler Group is a $180 million advertising and entertainment
company that represents clients including Clairol's Herbal Essences, Aussie
and Daily Defense hair care products, Nice 'N' Easy hair color, Independence
Community Bank, the American Red Cross and Inshop.com. It is an independent
company of The MacManus Group of Companies.
Charles & Colvard, based in the Research Triangle Park area of North
Carolina, became a public company in 1997. For more information, please
access www.moissanite.com |
