Item-Level RFID Tags
Cost More than Expected
(Source: eWeek
July 11, 2006)
Despite the
traditional mantra that item-level tagging makes sense when the price drops
below 5 cents, and preferably below 1 cent, a major global consulting firm,
IDTechEx, has found that the average price is 40 cents, compared with an
average 18-cent price for pallet and case tags.
The
fact that the initial item-level tag prices are so much higher is not so
surprising given that initial costs during experimentation phases are typically
much higher than during full-scale deployment. What is surprising is that the
average cost is so much more than its pallet/case counterpart.
The analyst firm
had already reported much higher than expected market share
figures for item-level RFID tagging, but it reported more details on July 11, including the
firm's projection that item-level tags will account for $11 billion by 2016 out
of a worldwide RFID market projected by then to be worth $26 billion.
The
only thing that was driving the 5-cent and 1-cent price needs was the ability
to item-level tag everything in a store, which means that the price of tagging
has to be capped out at whatever would work for the lowest-priced item with
that retailer.
But there's no
reason that retailers cannot realize huge benefits while limiting the
item-level tracking to more expensive products, where price sensitivity is much
less of an issue. Full Story: Click Here
Target Second Only to
Wal-Mart as Most-Shopped
(Source: Progressive Grocer, July 13, 2006)
Target is the
most-shopped retailer in the
One quarter of all
"But, a different story emerges when we look at just the biggest markets
where Target has its greatest presence," says Skrovan. Despite marketing
efforts to promote Target also as a place to go for everyday household basics,
just 8 percent of primary household shoppers make a weekly trip to Target vs. 32
percent for Wal-Mart.
Merchandise categories that capture the most overall interest of Target
shoppers are children's apparel, decorative home fashions, small housewares and
appliances, and toys. While Target is gaining favor with shoppers across some
apparel categories, personal care products, small personal appliances, sporting
goods and toys, ShopperScape results show that the retailer is losing share of
shopper preference in books, consumer electronics, pre-recorded music/CDs and
videos/DVDs, and soft home fashions.
Target's share of preference barely registers in most grocery categories.
Target and Wal-Mart share many of the same shoppers. "It stands to reason
that up-market families as well as young singles and couples regularly shop
Target for the fun trendy apparel and general merchandise, but also frequent
Wal-Mart for the basics," Skrovan says, adding that "it works the
other way too." Full Story: Click Here
Dell
Breaks the Rebate Habit
(Source:
eChanneline.com July 17, 2006)
Dell Inc. announced recently it would simplify its pricing structure and
promotional offers, including reducing the number of mail-in rebates on
products and services it sells to consumers and small businesses in the
Officials
for the Round Rock, Texas-based PC maker said the moves would occur over the
next 12 to 18 months, beginning in August with the reduction of mail-in rebates
on Inspiron notebook computers and Dell televisions.
Dell will also
reduce the frequency and complexity of promotions tied to the sale of Dimension
desktop and Inspiron notebook computers, and other products. Over time, the
company projects a 70 per cent reduction in the number of promotions per
product line and about an 80 per cent reduction in the number of promotions
tied to a single product.
Rob
Enderle, principal analyst for the San Jose, Calif.-based Enderle Group
summarized Dell's announcement as Dell realizing that rebates weren't working.
Rebates,
when they work, allow you to advertise a price that, on average, no one
actually pays, Enderle explained. Customers tend not to like them and they
carry an administration cost along with this customer satisfaction risk. Dell
was getting nearly a 100 per cent rebate conversion; which means it was getting
all of the negatives and none of the positives.
"Now
the real test will be as they eliminate the rebates, the advertised price will
come up a bit and, in a competitive market, this could be a problem. This is
why they are easing into it," he said. "That way if they take a
volume hit the damage will be limited to a few lines and not the entire
portfolio of products." If there is an impact to be felt at all, it'll be
with consumers and small businesses, Enderle said.
"No one
really likes rebates and if Dell, as a market leader, can get the industry to
move then most should applaud the change, if they can't (and the Auto industry
provides some indication that this is tough to do), then they may have to
rethink this strategy to remain competitive," he said. "The idea of
simple pricing has resonated in a number of segments, in cars Saturn led the
way. But the problem remains that old habits are really hard to break and
rebates are an old habit." Full Story: Click Here
For
CBS’s Fall Lineup, Check Inside Your Refrigerator (Source: New York Times
July 17, 2006)
IN September, CBS plans to start using a new place to
advertise its fall television lineup:
The
network plans to announce today that it will place laser imprints of its
trademark eye insignia, as well as logos for some of its shows, on eggs —
35 million of them in September and October.
Newspapers,
magazines and Web sites are so crowded with ads for entertainment programming
that CBS was ready to try something different, Mr. Schweitzer said. The best
thing about the egg concept was its intrusiveness. “You can’t avoid
it,” he said. He liked the idea so much that he arranged for CBS to be
the only advertiser this fall to use the new etching technology. •The CBS
ads are the first to use imprinting technology developed by a company called
EggFusion, based in
“It’s
unlike any other ad medium in the world, because you are looking at the medium
while you are using it,” he says. Egg producers, distributors and
retailers all share in the ad revenue. EggFusion is selling the ads on its own,
but plans to enlist the help of advertising agencies, company executives said.
A
similar process to EggFusion’s has been used on a limited scale in the
United States with fruits and vegetables, but mostly for replacing the price
stickers used by grocers to track inventory and ring up an order. Both
Radlo and A.& P. pay for the etchings — they will not say how much
— but because A.& P.’s eggs will carry the CBS ads, it will
also share in the ad revenue. But is egg-vertising an idea with staying power,
or will the novelty expire after a few dozen bad puns?
“At this
point it’s too early to tell,” Mr. Schweitzer of CBS acknowledges.
“I think it’s like you know good ideas when you see them.”
Full Story: Click Here
Events:
TPMA Annual Conference:
Proving the Value of Trade Promotion Management –
September 24-27, 2006,
At this
year’s TPMA’s Annual Conference, attendees will share advanced
strategies and ready solutions for your greatest performance measurement
challenges. This conference will highlight case studies and implementation
strategies from manufacturers and retailers, including those that have
integrated TPM with their Supply Chain. It will also provide the perspective of
both CPG and Dealer Channel based programs.
Don’t
miss this opportunity to learn from:
Synectics
& Chiquita Fresh Express on how they have implemented a closed loop TPM system
OatSystems on how to increase in-store promotion
effectiveness using RFID
SAP how to integrate TPM to drive profitable
brand growth
Rainmaker
Group on effectively
integrating POS to drive business intelligence and sales
The first 100
people to register for the TPMA Annual Conference in September receive a
complimentary copy of Bob Houk’s new book, “Trade Promotion
Marketing”. Click Here to Register.
Write to Mike
Kantor at bhouk@tpcww.com for more information.
VCF Global Conference at
the Camelback Inn November 5-8,2006!
Retail trading
partners will unite at the Camelback Inn and create new growth opportunities,
learn how to reduce system disconnects and seamlessly execute their supply
chains to the delight of every consumer they serve, all the while
learning how to prevent future deductions.
Confirmed
retailers attending so far...
AAFES
Big Lots
Dillards
Kohl's
and more are
confirming every day!
Register today
and save your spot! Remember, members attend for only $695 - a $1000
savings off the non-member rate. To register for the conference, click here.
Career
Opportunities:
US-NJ-Madison-Category
Development Manager
Wyeth Consumer
Healthcare is a worldwide leader in the research, development, manufacture and
marketing of innovative products, including three of the five top selling OTC
brands in the
Take this opportunity to utilize your field sales direct-selling experience in
combination with your knowledge of category management practices and
principles. You will accept responsibility for gaining control or influence in
the category management process at targeted regional or team retail customers,
with focus in shelf space management, merchandising format, distribution, and
pricing/promotion strategy.
Additional responsibilities include:
· Assisting region or team in
evaluating the effectiveness of trade promotions and strategies with targeted
retail customers.
· Participating in multi-functional
Category Management Project Teams
· Pro-actively
seeking out business opportunities with all regional and team retail customers.
Please email your resume to: WyethConsumerHealthcare@TrackCareers.com
Please mention job code WHRM921037 in your email or cover letter.
Wyeth
is a member of TPMA
Write
to Bob Houk at bhouk@tpcww.com for more information.
