Taking special interest in consumer's video needs - special interest video recordings - Video Sell-Through

Discount Store News, July 20, 1992 by Ron Weinstein

The demographic changes and economy of the '90s have already influenced consumer buying patterns and habits and as a result, are profoundly affecting sales and marketing strategies.

For example, let's envision the shape of the power of decision makers as a pyramid. From the product driven 1950s through the 1970s, the omnipotent marketer rested at the tip, the retailer was in the middle, and the consumer sat at the pyramid base. The power flowed from the market at the top and down to the consumer, who was perceived as a homogeneous mass which lived, thought and bought the same way.

In the 1980s the pyramid reversed itself. The power still flows from the tip but that is where the consumer is now and it's the consumer who is reclaiming the right to make independent and educated decisions. Therefore, the |90s have seen retailing become a battle for the consumer's heart, mind, and pocketbook. While consumers have become more time-pressed and financially squeezed, they have also become less tolerant of poor quality and service. The key is goal is to have the individual household in the market spend a portion of their time and income with you and becomes less susceptible to any short term appeal to go elsewhere. The successful outcome of a marketing strategy is not simply a matter of how many customers you can reach, but ultimately how many customers reach you!

In today's competitive marketplace of profit margins, both video and non-video retailers must seize new and creative marketing opportunities in order to survive. Creative retail marketing of special-interest videos offers potential for increased profitability.

There has never been greater public awareness of the extent of video programming then there is today. Unfortunately, the breadth of that awareness is very narrow and is matched only by the limited availability of the product.

To the typical consumer and retailer, the very words "special-interest video," conjure up images of a potential marketplace of about 10 people. In some cases, this is true. However, the vast majority of special-interest programming has very broad appeal. Keep in mind the fact that product marketing is becoming very narrowly focused. Therefore, a special-interest video with limited appeal to the general public might be a blockbuster in some locations. For example, videos on state-specific sporting events or on becoming a better hockey player have done extremely well in certain markets. Knowing who your customers are and what they want (or what they think they want!) are crucial factors in today's marketing. Many videos are labeled special-interest and titles include documentaries, sports, exercise, how-to's, etc. In fact, if you think about it, everything under the sun, except theatrical releases and major studios children's entertainment would fit into that category. Special-interest videos tend to educate and inform (i.e., how to build a patio, sharpen parenting skills and cope with allergies, etc.). Hopefully, this is done in an entertaining and creative way.

If it's true that knowledge is power, then marketing programs that focus on spreading knowledge and educating the customer should produce some powerful results. The more people know, the more successful they become, and the less fearful they are to venture into new territories. With the remarkable increase in the |do-it-yourself' attitude, discount retailers should know this better than anyone.

Although special-interest videos can play vital role in this scenario, few, if any, retailers, have taken full advantage of them. Many producers find this hard to digest, but from a purely practical point of view, most special interest videos are no more than mere accessories. Why would anybody buy an exercise video, a how-to-sport video, a home improvement or a gardening video? Surely, not to sit back and be entertained! These videos are accessories to the primary activity, just as golf tees, trowels, hammers and nails are to their primary activities.

This should be great news to retailers. By viewing the appropriate special-interest video, their customer will become better educated and less fearful about the how-to task at hand. They will venture into areas of the store not previously seen and buy the necessary products to complete their task. The outcome is that sales of |core' products increase and you have a new customer for life!

Conceptually, this seems simple enough and it really is. However, it requires a commitment from the merchant and, according to Kmart chairman Joseph Antonini, a |can do' attitude by the store employee.

For example, a cross-merchandising program with our "Auto Repair For Dummies: The Maintenance Tape" video in a variety of rental outlets was successful only when the store employee pointed out the video to the customer. By explaining how the video would help save money and prolong the life of the customer's car, the employee focused on the needs of the customer. Success was measured not only in the number of videos sold, but also by noting a remarkable increase in related auto products. Also, customers now feel confident that they can accomplish certain maintenance functions and that the retailer really cares.