STORES Magazine - January 2009 - (Page 34)

EXECUTIVE SUITE / MULTI-CHANNEL pany. Nusbaum stepped in to lead what is now Ronco Acquiyear. On television, consumers are often enticed with special sition Corp. out of bankruptcy by restructuring Ronco’s directoffers that include additional complementary products or the response TV business and increasing its retail footprint. option to pay on an installment plan. Those options aren’t Previous management “did get the product into retail sucoffered in retail establishments, but purchasing a Ronco cessfully, but they forgot the core channel to sell and promote product in a store allows the shopper to see it and handle it, through the infomercials,” Nusbaum says. “They even carry it home immediately and avoid shipping and handling stopped using Ron’s picture and likeness to leverage the fees. brand.” “Immediate gratification is what I try to sell or talk to on the Nusbaum sought to grow the company through retail sales retail side,” Gasmer says. and multi-channel marketing. Nusbaum, who knew Popeil for In many cases, the Ronco products offered in stores or years before taking over Ronco, says the company’s founder through retailers’ websites feature lower prices than those marhad a fear of retail due to chargebacks, markdowns and the conOn television, consumers are often enticed with special offers, cern that lower prices in stores but purchasing a Ronco product in a store allows the shopper might kill his infomercial busito see it and handle it, carry it home immediately and avoid ness. shipping and handling fees. When Fi-Tek VII took over in 2005, “all they did was retail — they didn’t do television,” Nusketed in the infomercials. The Ronco 4000 baum says. “They flipped Showtime Standard Size Rotisserie, for [Popeil’s] model upside down instance, sells for $99.87 in Walmart and it failed.” The current busistores or at walmart.com; at ronco.com, ness model “is a combination, the unit comes with a 40-piece flatware and one does not preclude the set and is sold for four payments of other,” he says. $39.95, plus shipping and handling. Expanding into stores Ronco has been able to dramatically expand its market by moving into the retail sector, Gasmer says. Working with various distributors, Ronco has made its products available in stores like Sears, Walmart, Rite Aid, Costco and Kroger. Some of the hottest-selling items in the retail space include the rotisseries and the 25-piece steak knife set that comes with a lifetime warranty; one of the company’s most popular products, the Pocket Fisherman, does very well at Walgreens. “Our core bread-and-butter is still direct response, but we just wanted to bring it more to the masses,” Gasmer says. Many consumers “are skeptical and don’t want to buy things on television.” The difference between the products offered in retail locations and those sold on TV can vary depending upon the retailer and the time of the 34 STORES / JANUARY 2009 Boosting foot traffic The nature of Ronco’s inventory has the company well positioned to sustain itself in the current economic environment, Nusbaum believes. Many retailers are now featuring “As Seen on TV” end caps and sections that specifically carry products from infomercials, and the foot traffic that they generate creates a mutually-beneficial relationship. “The retailers actually love the exposure,” Nusbaum says. “TV drives retail and it drives viewership and awareness. When we spend a lot of money on TV, sales go up; when we’re off TV, sales go down.” And having products immediately in front of customers is helping build brand awareness that Ronco has never had before. “To me, that is what is driving people to the stores,” Nusbaum says. “It is the impulse, knowing the brand, seeing the products on TV and then walking into Walmart or Sears and our products are StORES right there.” Craig Guillot is a New Orleans-based writer and photographer. WWW.STORES.ORG http://www.walmart.com http://www.ronco.com http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - January 2009

STORES Magazine - Jauary 2008 Contents Executive Editor's Page President's Page Mechanical Marvel P&G Invests in Ocado Now I Remember What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Breaking the Monotony Multi-Channel Concept2Watch E-Commerce Analytics Category Management IT Systems In-Store Technology IT Systems Communications Website Strategy Communications SOA Energy Video Surveillance Employee Theft Online Fraud Industry Perspective Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword End Cap

STORES Magazine - January 2009

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