Electronic Retailer - September 2012 - 44

WHAT RETAILERS REALLY WANT

retail? “The retailer wants a big winner on TV, and the buyer doesn’t really know the success of the product,” he says. “There have been many retailers who have been burned in the last year or so. They were told a product was going to be big on TV and it was not.” Khubani says mistakes such as this almost caused one of the Top 5 retailers to pull out of distributing DRTV products all together. That is why at TeleBrands, testing, testing and testing again is essential to a DRTV product before bringing it to retail. “We test 100 products a year, shoot commercials for 10 and maybe one will be successful. And that one we bring to retail,” says Khubani. What else are retailers looking for in a DR product? Generally speaking, a retailer is looking for the same traits a consumer wants in a product. First and foremost, it must be easy to use. But what consumers purchase also may derive from three other thought processes, according to HawthorneCastro. First, consumers buy based on brand recognition after seeing a product on television. Second, consumers make impulse buys when they spot a product on a store shelf. Third, consumers look for a product with the As Seen On TV logo because they already have a relationship with other products in that line. Kubani also notes that retailers, like consumers, buy based on relationships. He says one of TeleBrands biggest strengths is that it has been a vendor for more than 20 years. “We’ve been dealing with major retailers since 1990 and that makes a big difference,” he says. “It’s a long-term relationship and trust with the retailer.” The buyer looks to the marketer for advice on ever y thing, including how many products to buy, so credibility means everything.

Any product with the As Seen On TV logo often sells well in a big chain retailer such as Bed, Bath and Beyond, Target and Walgreens. This is because the name has been in stores for years and has developed a reputable image.
Any product with the As Seen On TV logo often sells well in a big chain retailer such as Bed, Bath and Beyond, Target and Walgreens. This is because the name has been in stores for years and has developed a reputable image. As Seen On TV products are a great impulse buy, according to HawthorneCastro. “Many consumers who haven’t even seen the product advertised on TV will buy the product simply because it’s on display in an As Seen On TV section in the store.” While 2008 was the year of the Snuggie (with a 50 percent markup in retail sales alone) and 2010 was the year of the Pillow Pet, Scott Boilen, president and CEO of All Star Marketing Group, says that 2012 was the year of the Genie Bra and the Ahh Bra. Runner-ups included the Alumna Wallet, Magic Mesh and the Music Bullet. While the categories of what DR products sold well in retail over the past few years are vast, they tended to be heavy in the kitchen and beauty/ weight loss categories. Specifically, in the kitchen category, the Food Savor Vacuum, Ninja 110, Slap Chop and Showtime Pro Electric Rotisserie Oven were top sellers. In the beauty/ weight loss categories, popular products included Proactiv, Wen, no!no!,

Bowflex, Insanity, the wellness drink Nopalea and the Luminesse Air makeup system. And don’t forget products that help slim and lift, says David Savage, executive vice president of R2C Group, an independent direct response advertising agency.

Getting To Retail
So let’s say you are ready to bring a DR product to retail. What are a marketer’s “must haves” before taking that leap? Although it varies depending on the demands of the retailer, generally, “the product would have to fulfill a consumer need or fall into a ‘niche’ category,” says HawthorneCastro. “To further establish a brand beyond its initial DRTV or As Seen On TV roots, the product must focus more on a brand response campaign where general advertising elements come in such as media reach and frequency and TRP/GRP levels to drive retail sales.” “Marketers would have to show evidence of strong DRTV sales, a track record of success and likely a large media spend to drive the retail campaign,” says Hawthorne-Castro. “This is also the hardest part of getting a product into retail, having an already successful campaign with the budget to back a large retail campaign.” Savage says that while success in DRTV does not guarantee success in retail, it definitely helps. He adds that when a product is moving to retail, margin and retail pricing, packaging, category/aisle placement, media support and competitive pricing all come into play in determining whether it will sell successfully. Savage warns that if you’re considering going to retail, products that are premium priced or have a larger footprint – meaning it would be difficult for the consumer to transport from the store to home – tend to perform better on television because of free shipping and promotions. Boilen adds that certain ingestible and continuity products are not ideal for the retail marketplace.

Specific Products
Beyond having the “success” trait, there are some products that have specifically caught the eyes of retailers, especially in the last year or so. 44

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Electronic Retailer - September 2012

Table of Contents for the Digital Edition of Electronic Retailer - September 2012

Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney’s Top Categories
Letter from the Chairman
From the Executive’s Desk
All Aboard the D2C Train
Delivering Happiness
What Retailers Really Want
The Customer is Always Right
nuvoH2O Brings Home a Healthier, Cleaner Water Solution via DR
Guest Viewpoint
DRTV
Payment Processing
Legal
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - September 2012 - cover1
Electronic Retailer - September 2012 - cover2
Electronic Retailer - September 2012 - 3
Electronic Retailer - September 2012 - 4
Electronic Retailer - September 2012 - 5
Electronic Retailer - September 2012 - 6
Electronic Retailer - September 2012 - Calendar of Events
Electronic Retailer - September 2012 - Your Association, Your Bottom Line
Electronic Retailer - September 2012 - 9
Electronic Retailer - September 2012 - Industry Reports
Electronic Retailer - September 2012 - 11
Electronic Retailer - September 2012 - 12
Electronic Retailer - September 2012 - 13
Electronic Retailer - September 2012 - 14
Electronic Retailer - September 2012 - 15
Electronic Retailer - September 2012 - 16
Electronic Retailer - September 2012 - 17
Electronic Retailer - September 2012 - 18
Electronic Retailer - September 2012 - FTC Forum
Electronic Retailer - September 2012 - eMarketer Research
Electronic Retailer - September 2012 - 21
Electronic Retailer - September 2012 - IMS Retail Rankings
Electronic Retailer - September 2012 - 23
Electronic Retailer - September 2012 - Jordan Whitney’s Top Categories
Electronic Retailer - September 2012 - 25
Electronic Retailer - September 2012 - Letter from the Chairman
Electronic Retailer - September 2012 - 27
Electronic Retailer - September 2012 - 28
Electronic Retailer - September 2012 - From the Executive’s Desk
Electronic Retailer - September 2012 - All Aboard the D2C Train
Electronic Retailer - September 2012 - 31
Electronic Retailer - September 2012 - 32
Electronic Retailer - September 2012 - 33
Electronic Retailer - September 2012 - 34
Electronic Retailer - September 2012 - 35
Electronic Retailer - September 2012 - Delivering Happiness
Electronic Retailer - September 2012 - 37
Electronic Retailer - September 2012 - 38
Electronic Retailer - September 2012 - 39
Electronic Retailer - September 2012 - 40
Electronic Retailer - September 2012 - 41
Electronic Retailer - September 2012 - What Retailers Really Want
Electronic Retailer - September 2012 - 43
Electronic Retailer - September 2012 - 44
Electronic Retailer - September 2012 - 45
Electronic Retailer - September 2012 - 46
Electronic Retailer - September 2012 - 47
Electronic Retailer - September 2012 - The Customer is Always Right
Electronic Retailer - September 2012 - 49
Electronic Retailer - September 2012 - 50
Electronic Retailer - September 2012 - 51
Electronic Retailer - September 2012 - 52
Electronic Retailer - September 2012 - nuvoH2O Brings Home a Healthier, Cleaner Water Solution via DR
Electronic Retailer - September 2012 - 54
Electronic Retailer - September 2012 - 55
Electronic Retailer - September 2012 - 56
Electronic Retailer - September 2012 - Guest Viewpoint
Electronic Retailer - September 2012 - 58
Electronic Retailer - September 2012 - 59
Electronic Retailer - September 2012 - 60
Electronic Retailer - September 2012 - DRTV
Electronic Retailer - September 2012 - Payment Processing
Electronic Retailer - September 2012 - 63
Electronic Retailer - September 2012 - Legal
Electronic Retailer - September 2012 - 65
Electronic Retailer - September 2012 - Advertiser Spotlight
Electronic Retailer - September 2012 - Advertiser Index
Electronic Retailer - September 2012 - Classifieds
Electronic Retailer - September 2012 - 69
Electronic Retailer - September 2012 - Rick Petry
Electronic Retailer - September 2012 - cover3
Electronic Retailer - September 2012 - cover4
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