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WebTV’s Shelf Potato Story

June 18, 2010 3 comments

WebTV is a great example of a Shelf Potato success.

WebTV has been around for more than a decade. And while it hasn’t found a broad enough mass audience to dominate tech conversation, it has sold quite well to a niche consumer electronic audience.

But WebTV sold poorly at the start. The Philips version hit the shelf late 1996 supported by around $10 million in sexy :30 television spots. And, it sat on the shelf…and sat and sat. I have been told that it only sold when the regional specialists from Philips were in the store.

In the beginning, it took a specialist because consumers needed a massive information fix at retail. Unfortunately, in the same 45 minutes it took a salesman to make one WebTV sale, that salesman could sell 3 DVD players of equal value. So retailers didn’t drive sales because selling WebTVs lost them money.

Then, in October 1997, Philips released a half hour infomercial for the product. And by mid November, with only a few million in ad dollars, they had to take the infomercial off-air because they had sold out at retail. (And, of course, they put it back on-air as soon as the stores were re-stocked.)

Why did a few million dollars in infomercial time dramatically outperform over $10M in :30 second spot time? The infomercial solved the communication problem that kept units on the shelf. With the infomercial on-air average sell time dropped from 45 minutes to 5 minutes and it no longer required the regional specialist.

What lesson do we learn from this? WebTV was a perfectly good product with a strong market potential. So lackluster sales don’t necessarily say anything about the value of the product. And sometimes it’s a matter of putting out the right communication for the product to fly off the shelves.

Copyright 2010 – Doug Garnett

Suggest Your Shelf Potatoes

June 15, 2010 2 comments

This blog is dedicated to the retail challenge we call the Shelf Potato. And, to the opportunity reflected in shelf potatoes.

Because marketing experience shows that products don’t necessarily languish on the shelves because they’re bad products. Quite often they lack the communication support needed to connect consumers with the reasons they should care about the product.

So use the comment space below to post your shelf potato stories and let’s discuss this serious challenge to retail success.

Copyright 2010 – Doug Garnett