Making a Play for Greater Audio/Video Sales

Drug Store News, Sept 27, 1999

New Technology and Expanded Product Portfolio Ignites Blank Media and Accessories

Managing mature product categories to increase sales and profits can be a challenge. According to Peter Brinkman, director of marketing for Maxell corp. of America, a strong brand and a complete product portfolio can be a retailer's best ally.

The Maxell marketing executive notes that consumers crave the confidence offered by well-known brand names, especially now when new digital technologies are creating a buzz. He says that while consumers are excited by the possibilities offered by the new digital technologies, they also seek the reassurance they get by purchasing a brand that they know and trust would give them the highest quality.

"Maxell has by far the largest market share in audiophile-quality high-bias audio tape, which tells us that people who know quality tape choose Maxell," says Brinkman. "And since those are the consumers who are the first to try new digital-technology products, we are already seeing them turn to the brand they already associate with the highest-quality audio and video reproduction."

Brand is also a key concept in the other important trend in consumer electronics today, the consolidation by retailers of the vendors they present to consumers. "As retailers pare down the number of brands they carry, they must be doubly sure that the brands they end up with are a powerful draw for consumers, and offer those consumers a wide variety of product choices," asserts Brinkman.

That is one reason, according to Don Patrican, executive vice president of Maxell, that the blank media and accessories supplier has developed its One Maxell approach to the marketplace. Under the One Maxell banner, the company offers all audio and video blank-media formats, an extensive line of audio and video care and storage products, a wide range of headphones and a complete line of battery products to power the analog and digital equipment that is so much a part of the lives of modern consumers.

"Reducing vendors should not mean reducing choices for consumers," says Patrican. "With One Maxell a retailer is able to present a strong brand name and incredible choice for consumers."

The One Maxell approach also offers retailers a broader, branded solution to presenting blank media, accessories and battery products to consumers. Under the One Maxell concept, Maxell presents its products by consumer usage and lifestyle, not just by product category. Thus "Recording Memories" incorporates camcorder tape, camcorder batteries and video care products, while "Home Entertainment" describes audio tape, video cassettes and audio and video care and storage products. Likewise, "Small Office/Home Office" defines computer media, computer-care products, cell-phone batteries and microcassettes, while "Portable Audio" describes the full range of digital and analog media, audio care and storage products, headphones and batteries.

"One Maxell gives the retailer a new way to present the company's products to stimulate incremental sales, as consumers who come to the store for blank tapes are encouraged to buy an accessory or battery product that they also need," explains Brinkman.

On the product front, technology continues to change. Savvy retailers keep up with those changes.

"The industry is transitioning rapidly from analog to digital, and consumers are embracing this change," Brinkman explains. "New formats in audio such as the mini disc and especially CD-R music are becoming more and more popular. Retailers will want to devote increasing amounts of shelf space to these new technologies to take advantage of customer interest. In video, mini DV, a digital camcorder tape, is just beginning to take off, but astute retailers will want to keep a sharp eye on this emerging technology."

Brinkman believes that adding a focused range of complementary accessory and battery products to its core analog and digital blank media offerings has given Maxell a diversified product portfolio and a competitive edge for its retail partners.