Looking for the golden gadgets; new packaging programs by vendors to heighten sales and profits - kitchen gadgets

Discount Store News, Sept 25, 1989

Looking for the Golden Gadgets

New Packaging Programs by Vendors To Heighten Sales and Profits

Gadget manufacturers and retailers are looking for ways to exploit consumers' willingness to pay almost any price for the kitchen tool they need.

New packaging programs by most major vendors--most recently by Bonny Products, Washington, N.C.--created a merchandise wall that established the high visibility gadgets required to help consumers locate the products. Now that consumers can find the department, seasonal promotions and themed gadgets groupings are among the next steps toward heightening sales and profits.

Al Rabin, president and chief executive officer of Ekco Housewares, Franklin Park, Ill., said the firm is working with retailers to develop special programs. "There are fertile opportunities to promote at high margins through themed promotions. The themes tie in with our customers' own marketing programs like dollar days, back-to-school and holiday baking," Rabin said. "Gadgets are very theme oriented. We see a continued strong trend toward higher quality merchandise in our trade," he added.

Bonny introduced four corregated merchandising displays to highlight gadgets that fit into selected themes, including Holiday Mates, Pasta Mates, Cook Mates and BBQ Mates. The firm also implemented a themed approach for a group of 22 sku's through a licensing agreement with Campbell soup.

The new license and themed presentations were components of an overnight corporate turnaround that has essentially put it on the list of dominant gadget vendors. A new, integrated packaging program and 200 sku's--double what had been offered--was introduced in July at the Housewares Show in Chicago.

While the Campbell display lends itself more to supermarkets and hypermarkets than to traditional discount department stores, it signals a direction expected to be continued in the gadgets business.

A divisional merchandise manager at an Eastern regional discount store chain said his company plans to develop the potential of gadget themes starting this November. A "Thanksgiving story," in gadgets is being pulled together to tell shoppers that the store has any tool they could possibly need to prepare, cook and serve a turkey. "There are two things that make gadget sales work: dollar days and seasonal sales. The only difficulty is dealing with product residues after the season has passed," the dmm said.

Gadget Wall is Best

Despite the trend, there are those who find the basic gadget wall the best way to utilize space. Darol Beecher, senior vp, gmm at Prange Way, said the Green Bay, Wis.-based discounter is among those chains that do not currently offer a themed presentation, nor does it plan to unless a vendor comes out with an approach at the Winter International Housewares Exposition that works for his chain.

"Unless something dramatic happens in January, we don't have plans in the immediate future for a themed approach to gadgets ... You don't get the same productivity as you do off a typical gadget wall," he said.