TV housewares come into view - television advertised housewares

Discount Store News, Jan 6, 1992

TV Housewares Come Into View

Often foregoing the traditional security of product patents and established brand names, the burgeoning category of television-promoted products is relying on heavy media blitzes and familiar spokespersons to capture the interest of consumers.

Housewares are especially favored because of the ease of demonstration. How many Americans can honestly admit to never having seen the wok man in action, or the Ginsu knife cut that tomato?

Companies in the direct response and infomercial field are "merchants first, and product providers second," according to Victor Grillo, chairman and chief operating officer of Natick, Mass.-based Direct to Retail, one of several vendors bringing new TV-promoted products to retail shelves.

In TV, it is the advertising; and on retail shelves, it is the packaging that usually spells the difference between success and failure, where products usually have a short lifespan.

With increasing competition, especially in the housewares area, companies that are first with the best marketing programs are the ones that succeed. Success for these products as they are brought to retail shelves also requires addressing such issues as the existence of knockoffs and the extent of marketing and merchandising support. And in some cases the designation "as seen on TV" may not be as accurate as it should be.

"There are many companies that knock off a product, show it only in a very limited television market, but still have the |as seen on TV' logo on it," said Howard Feddy, vp, marketing, Bo-Nash, Seattle. Feddy noted that this causes confusion in the marketplace. His company's product - a wok that is not shown on TV - has actually benefited from the TV exposure generated by a similar, but different, item.

Wally Nash, co-founder of Bo-Nash, is a familiar face as the host of a hand-hammered wok infomercial. However, the wok Bo-Nash markets at retail is a different product. "We are very careful to say that it is not the same wok that is sold on television, but Wally is such a familiar face to the public and having his face on the package has helped it sell very well," said Feddy.

Rudy Proctor, president, Take Five, noted that confusion about competing products is fueled because many items promoted through television are not patented. "Even if they are patentable, they are generally very easy to make and put together," he said. According to Proctor, Take Five, a concentrated household cleaner, holds many patents.

Proctor was also the originator of the Slush Mug and the Icy Mug, but claims those products had competition from 12 different manufacturers within six months of their introduction in the '70s.

According to Proctor, the key on television is to be entertaining and have strong testimonials. An advantage of housewares is that the products are often easy to demonstrate on television.

At retail, the packaging is the most important element.

Retailers such as Jamesway, Venture and Rose's have been involved in selling television-promoted products. Kmart, Wal-Mart and Target are now beginning to feature these items. Most packages have clear "as seen on TV" labeling, and some stores have separate signage for the category.

"We've had our products both at check out and in the housewares department," said Feddy, who prefers the items to be cross merchandised with other housewares.

The potential volume of having products in a store like Wal-Mart has made most companies in the business savvy; all now offer POS support through signage, display racks, and even full planogramming assistance.

For the most part, items at retail are priced lower than the advertised price. "The cost of advertising really drives up the price," said Proctor. But cutting out the advertising has a downside. "There are people knocking off products and cutting the prices, but they don't sell. You need that back-up of an advertising run," he said.

Industry estimates average about $125,000 of air time for an effective advertising sweep.

At Mishan Inc., New York, whose products include the Emson Sewing Machine and the Turro Steam Iron, television spots can be on for a few months before the products are brought to retail. Mishan also provides a continuous loop tape for in-store promotions.

Mishan and Direct to Retail are two companies that see the future of this market in emphasizing brand names.

Direct to Retail's Ginsu 2000 knives and the Didiseven stain remover are familiar names to consumers.

Mishan will be emphasing its Emson brand as it goes forward. This is an unusual approach in this market where timing - both getting into and out of products - is essential. According to Jeffrey Mishan, national sales manager, the focus on the brand brings awareness to the consumer and to the retail buyer.

There is no apparent slowdown in introductions for as seen on TV products, at least not in housewares.

"The advent of the remote and the clicker personality has really helped this category grow," said Feddy. "There are so many channels now, and the goal is to be able to capture a channel changer's attention for two or three minutes. They may not order the product, but they will recognize it when they see it on the retail shelf."