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As Seen on TV now seen on drug store shelves

BY Barbara White-Sax

As Seen on TV products are grabbing more space in chain drug stores. “Consumer interest is higher than it has ever been,” said AJ Khubani, CEO and founder of TeleBrands. “More retailers are recognizing the importance of the category. More are getting into the category, and those already in the category are giving it more shelf space.” Some of TeleBrands’ hottest new products this year have been Chef Basket, Aluma Wallet, RoboStir and One Second Needle.

Health and beauty care and fitness products have always been a draw, but pet products and kitchen gadgets are growing segments. “People are willing to spend on their pets, so that’s one segment that’s remained strong,” said Peter Koeppel, president of Koeppel Direct.

“The kitchenware segment of the As Seen on TV category is growing tremendously at retail,” said Dan Sackett, president of First 2 Market Products. Sackett said that products that save consumers money by keeping food fresh longer, such as First 2 Market’s Gripstic, are particularly popular with consumers.

“The toy segment remains particularly strong,” said Ron Boger, chief operating officer of IdeaVillage Products. “It’s the least affected by the economy,” he said. Some of IdeaVillage’s most popular products have been the Ahh Bra, the No. 1 infomercial for the last six months; Wuggle Pets; the Miyashi Pillow; and Criss Angel Mindfreak Platinum Magic Kit.

Koeppel said products retailing for $9.99 and $14.95 have had the strongest sales. “Price points have come down a bit because of the economy,” he said.

High traffic locations are crucial to sales since the category is high-impulse, according to Khubani. Retailers are merchandising ASOTV items in one location, usually in the center general merchandise aisle, and often supplementing with endcaps.

 

 

The article above is part of the DSN Category Review Series. For the complete As Seen on TV Mid-Year Report, including extensive charts, data and more analysis, click here.

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naksh says:
Mar-01-2012 01:58 am

A comprehensively detailed and attention grabbing review that you wrote in this article. I am really convinced the way you look. The way you describe the whole Grants for Veterans thing is simple and understandable

S.MAGGIO says:
Jun-24-2011 11:37 am

Interesting data, especially the price points. Many of the As Seen on TV items are available wholesale to Retailers on the site EZwholesaler.com for more information call 800-504-2209 or email [email protected]

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Getting clothes colorful with Stained by Sharpie

BY Allison Cerra

OAK BROOK, Ill. — Sharpie is encouraging consumers to let their imaginations run wild with a line of fabric markers.

Stained by Sharpie markers feature a new fade-resistant ink that is made for optimal performance on most fabric surfaces. Color selections include black, blue, red, green, pink, orange, yellow and purple.

Stained by Sharpie is available in four-pack, five-pack and eight-pack varieties at suggested retail prices of $9.78, $12.22 and $19.56, respectively.

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Kantar study dissects category management

BY Michael Johnsen

WILTON, Conn. — As more consumers incorporate social media sites and other online shop-assist tools into their daily shopping routines, the concepts defining traditional category management — category schematics and optimized facings and assortments, for example — are fast becoming obsolete.

Replacing them is the concept of category leadership, as Kantar Retail reported in its recently released “2011 Category Leadership Benchmarking Study.” What is the difference between management and leadership? Management is about planning, organizing and coordinating; leadership is about inspiring and motivating, connecting the dots between consumer wants and needs, and examining actual shopping behavior. 

According to the report, retailers are most concerned today about what Kantar defined as the “path to purchase” — the decision matrix that Internet-savvy consumers use to choose what products to purchase in which venues, as well as what impulse offers would prove to be most appealing alongside that traffic-driving SKU.

“To really try to set the tone as to why those [category management] tactics matter, [that] requires leadership,” Grace Park, managing director at Kantar Retail, told DSN. “Not only for the category but really for the department or even the total store. What retailers are struggling with today is trying to find a true growth solution.”

“The leaders are really connecting the consumer’s usage occasions to the purchase occasions,” noted Ginny Valkenburgh, SVP at Kantar Retail. Spice maker McCormick provides a good example of that, Valkenburgh said. “They set their shelves to different usage occasions and call those [occasions] out,” she said, such as with the brand’s Grill Mates during the summer.

Kantar analysts advised retailers and their supplier partners to fold category management, shopper insights and shopper marketing all under one umbrella. Tomorrow’s success stories will be a factor of applied shopper insights and store-level execution. Integrating these two key areas will help drive total category leadership, the report suggested.

Creating a call to action out of shopper insights also will help foster success, according to the report. “CVS and Kroger have worked to mine their frequent shopper card data to better understand how consumers shop in their stores and how to capture a greater share of wallet,” the report said. 

Other examples of best-in-practice retailers include Target, H-E-B and Walgreens — all of whom have engaged their manufacturer partners in identifying the most valuable customers and catering to their needs through specialized programs, item assortment shelving and pricing.

Retailer-specific customizable programs and 
promotions are expected to be key growth drivers going forward, with 80% or more of both retailers and suppliers expecting suppliers to customize their programs for retailers five years from now. Those customizable programs might even be different across a chain, as more retailers view the utilization of multiple segmentation schemes (e.g., urban centers, food deserts) as an area most likely to be a main focus five years from now.

For the full report, click here.

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