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Well the dust has settled and results from the Q4 holiday season are in. I realize that some of our readers are in the CE community and have ready access to retailer share. Note that I’m not quoting anything from NPD that I have access to for my job. I’m linking to a couple of public sources to point out that you can get a good idea of what is going on with a little digging (or you can get it from us)! The data I’m sharing is from consumer surveys conducted by 2 different firms, so take it with a grain of salt – it isn’t cash register data, but provides valuable perspective on where consumers look to purchase their electronics.
1) AD AGE ARTICLE SHOWS BEST BUY GAINING GROUND (WITH 33% SHARE)
2) RETREVO PULSE ARTICLE SAYS BEST BUY LOSING GROUND (BUT WITH 40% SHARE)
TAKEAWAY: CONSUMER ELECTRONICS STILL REVOLVES AROUND BEST BUY
Best Buy is the dominant player in Consumer Electronics, a king maker that has influence with consumers beyond whatever its share actually is (33% – 41%). Even as Walmart and Amazon grow share in the CE space, it is ultimately because people get more comfortable NOT making their purchase at Best Buy. If you are a CE manufacturer, not having your products at Best Buy robs you of credibility with consumers and key influencers. If you are an agency with clients who sell products at Best Buy, you need to know as much about Best Buy as your clients because it is your best route to success. If the products you sell can’t succeed at Best Buy, you will have little leverage wherever else you go to peddle your wares. Conversely, succeeding at Best Buy paves the way for success in other channels. Best Buy does the heavy lifting for other retailers that sell consumer electronics. They just have to look at what Best Buy assorts as a baseline and start from there. So get it right in the first place and base your plans on success at Best Buy. Retail leverage will flow from there.
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Five Retail Leverage Predictions for 2010:
1) The CMO Will Become the CCMO (Chief Customer Marketing Officer)
2) Creative Services Agencies Will Learn the Language of Retail
3) It Will Take a Village to Make Social Networking a Relevant Marketing Tool for Retail Leverage
4) “Co-operative Planning” Content Will dominate Newsstand Best-Sellers
5) The New “All-in-One” Brand Will Dominate the Retail Landscape:
The powerpoint presentation can look dreadfully similar on the number of marketing communication vehicles you can use whether you are on a $5M Marcom plan or a $50 Marcom plan.
Put simply, unless you are the Geicos or Capital Ones of the world that have MARCOM budgets that dwarf the size of most companies’ total revenues and the GDP of some small countries, pick a…one…uno…a SINGLE communication vehicle that meets these criteria listed below to deliver maximum impact.
REQUIREMENTS FOR YOUR ONE COMMUNICATION VEHICLE STRATEGY:
1. Makes Sense Strategically (long vs. short story to tell? Reach vs. Frequency goals? Close to a Retail Sale? Etc…)
2. Reaches Your Target Audience – (obvious you want to shout where your target customers can hear you)
3. Penetrates Enough to Be Heard – (your budget should be able to support a high level of reach/frequency over time)