Fight Back Against Low Margins
DRTV is the Hardware Industry’s Most Cost Effective Way to Regain Marketing Power
Hardware and tool manufacturers today face difficult times. Channel demands have decreased prices to the point where manufacturers face historically low margins. At the same time, narrow retail margins have forced retailers to aggressively develop private label products.
Ordinarily, communication would be a superb response that would benefit both manufacturer and retailer – because communication increases margins and creates brand value. Unfortunately, margins are now so low that few communication options are available.
This is where DRTV’s power comes alive. DRTV delivers the amazing communication power of television, but at a fraction of the cost — and with the potential that profit from direct sales might even pay for all advertising costs.
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Demonstration sells tools. DRTV takes it to the next level and quickly puts a powerful demonstration in front of a national audience. The result? At retail, consumers ask for products they’ve seen on infomercials. With DRTV, even smaller hardware manufacturers can have year-round, low cost national TV campaigns — because DRTV will generate profit while building retail demand.
A product sitting on a shelf often has no intrinsic value because consumers don’t understand the benefits it would deliver. So lacking advertising support, stores have been forced to use price cuts to drive sales volume. DRTV offers the power to change this situation. A well demonstrated product demands a higher price – often much higher. That means that DRTV will help you establish and maintain higher prices – resulting in higher margins for manufacturer and retailer.
DRTV drives new product introductions and dramatically shortens the time it takes for a product to be a sales hit. A long form DRTV campaign can drive a product introduction at retail into the “top five” products at a retailer in only 3 or 4 short months. Why? Message, demonstration and communication builds consumer demand so that consumers enter the store asking for the product.
Crafted carefully (and avoiding the cheesy formulas of traditional DRTV), a smart direct response television campaign will build a long-term brand while selling your product. The core of the brand must be built around the value a product delivers to consumers – the brand promise. Well-executed DRTV powerfully communicates this core value.
Let’s talk about a special type of product we call a “shelf potato” – a product consumers love when they own it, but has only mediocre sales at retail. Why? Because consumers don’t know why they should care about the product. These products desperately need their true benefit to the consumer demonstrated and explained. Too often, consumers see only a “pile of features.” DRTV may just be the most powerful way to communicate the true value of a product. And, in case after case, communicating this value turns shelf potatoes into retail stars. To read more about Shelf Potatoes, visit www.theshelfpotato.com
Companies spend millions creating highly differentiated products with exceptionally unique value. Unfortunately, most tool companies are years – if not decades – ahead of their consumers with these advancements. Our research has often found that consumers do not know the value of current product features – much less new and more advanced features. Why don’t they? No one has explained the features and why the consumer will benefit. Product advantages that aren’t communicated don’t deliver market power. And, this is where DRTV shines. It offers the single most cost effective way to get television advertising and demonstration that shows the benefits of your product and those exceptional features your team has developed.
One of advertising’s great challenges is determining the business impact of spending. DRTV makes this much easier. We measure every direct response — by phone or web. And, with local market testing, you can determine the impact of your advertising at retail. All made possible because DRTV’s impact at retail is fast — starting within 2 weeks of initial airings.
We thoroughly endorse integrated campaigns that rely on a wide mix of media. These campaigns are much more effective when they are driven by a core engine of DRTV. Why? Because the DIY market is exceptionally fragmented – lacking the unified set of interests that makes other markets easier to reach. DRTV offers the outreach mechanism to get an integrated campaign started and powers it with demonstration. Once DRTV is present, each of the other media options play a more significant role instead of just reaching only a tiny portion of the potential DIY market.
Consumers make most purchasing decisions before they enter the store. Therefore, manufacturers must communicate with consumers outside the store. Retail staff cannot be relied on for effective communication. Retailers can’t afford to staff enough highly-qualified sales reps and sales help is forced to become familiar with hundreds of products each year. In some stores, you’re lucky if the sales help even knows where to find your product.
DRTV does the communicating you need to demonstrate your product and make the sale.