Congress passed a federal law, the Digital Television Transition and Public Safety Act of 2005, mandating the last day of full power analog television broadcasting to be February 17, 2009. On February 17, 2009, all television channels in the US will convert from analog to digital. What does this mean to you?
"This is the end of a 10 year transition," said Bart Forbes, public affairs specialist with the National Telecommunications and Information Administration. "This will mainly affect a few people who don't have digital or satellite television."
More than 50% of American homes now have a digital television set. More then 85% subscribe to a cable or satellite provider, and none of those consumers will be affected by the analog to digital transition, because they do not receive transmissions over the air. The only households to be affected are the ones without digital TV, and who receive transmissions over the air by antenna, which represents about 11% of the American households today. This 11% of the population is eligible to receive two coupons from the Department of Commerce, each coupon good for $40 discount on the purchase of a special converter box that will allow traditional analog sets to use the new digital transmissions. Converter boxes are expected to sell for $40 to $60 each.
Converter boxes will soon be available in many of the nation's largest retailers. Wal-Mart, Best Buy, Sears and Circuit City will carry the boxes. Congress has allotted $22.5 billion to subsidize consumer coupons for discounts on the purchase of these converter boxes. An additional $11.25 coupons will be issued once the first set of coupons runs out. Coupons will not be issued until the converter boxes are available in stores. If you have a cable or satellite provider, refer to the web site or contact your local provider, as you most likely do not need a converter box or any additional equipment. If you have rabbit ears on top of your television set, then it may be time to plan a trip to your local retailer to find out when the converter boxes are coming to town.
"Most people 50 and older watch five hours of TV a day," said Sean Voskuhl, associate state director for AARP in Oklahoma. "People over 65 also tend to have an older TV."
Some advocates of senior citizens are concerned that the analog to digital transition will affect senior citizens more than any other segment of the population. Nursing homes, group homes, and similar institutions do not qualify for the converter box discount coupons. Sean Voskuhl said that he is concerned of the impact on senior citizens because of the amount of TV that they watch. According to Nielsen, the New York based firm that rates television viewing, it is just over six hours a day for those over the age of 55. Voskuhl recommends senior citizens apply for coupons early, but since many of these older Americans do not use computers, the options may be confusing.
The transition will not be from analog to high definition television (HDTV), which is the highest level of TV service. HDTV sets already are equipped for digital service.
"Nothing will change for people with cable or satellite dish," said Dennis Whitman, of Fastpipe Media. "HDTV's sold now already have a tuner that serves the same purpose as a converter box."
The FCC advises viewers to check for any of the following: "Integrated Digital Tuner", "Digital Tuner Built In", "Digital Receiver", "Digital Tuner", "DTV", "ATSC", or "HDTV" on the set or the instruction manuals. When in doubt, contact the television manufacturer or the original retailer.
Digital Televisions are the market leader in consumer products, making up more then 16% of the $160 Billion spent on consumer electronics devices. Any television sold after May 25, 2007 is required to have a digital tuner or the seller is required to disclose that it does not have one.
"There is another aspect of this transition that is going largely unnoticed," said Mark Balinski, Senior Manager of Business Development for ZSL, Inc. "As the American consumer embraces the higher quality of digital television, HDTV, and the flat form factor of LCD, the old analog picture tube devices are being unceremoniously dumped with increasing regularity. Those clunky analog CRT devices and antiquated VCR's are not even considered hand-me-downs anymore. They are becoming poisonous electronic waste in our landfills."
Mark Balinski is at the forefront of a growing coalition to cope with the e-waste solution. Recognizing the challenges posed by the diverse legislation being proposed by individual states, Mark is developing a solution to track controlled substances and materials from the manufacturing process through the consumer electronics lifecycle, and back through recycling and reclamation. The proposed solution simplifies the process for government agencies, manufacturers, retailers, and the end-user consumers. "Our goal is to turn electronic waste into the new raw materials for future products, and to save more of our natural resources for future generations to enjoy," said Mark.
______________________________________________________
Words of Wisdom
"Don't you wish there was a knob on the TV to turn up the intelligence? There's one marked 'Brightness,' but it doesn't work."- Gallagher
"When the politicians complain that TV turns the proceedings into a circus, it should be made clear that the circus was already there, and that TV has merely demonstrated that not all the performers are well trained."- Edward R. Murrow
"It is difficult to produce a television documentary that is both incisive and probing when every twelve minutes one is interrupted by twelve dancing rabbits singing about toilet paper." - Rod Serling
______________________________________________________
You may distribute this article freely, print it, sell it, or include it as part of a package as long as it is intact, unchanged and delivered in the original format with acknowledgement to Executive Blueprints Inc.
About the Author:
John Mehrmann is a freelance writer and President of Executive Blueprints Inc., an organization devoted to improving business practices and developing human capital. www.ExecutiveBlueprints.com provides resource materials for trainers, sample Case Studies, educational articles and references to local affiliates for consulting and executive coaching. http://www.InstituteforAdvancedLeadership.com provides self-paced tutorials for personal development and tools for trainers. Presentation materials, reference guides and exercises are available for continuous development.
Showing posts with label Best Buy. Show all posts
Showing posts with label Best Buy. Show all posts
Monday, September 22, 2008
Saturday, August 16, 2008
The Power of Niche Sales
Many successful organizations have survived turbulent economic conditions and fierce competitive environments by consistently nurturing a niche, and the loyal consumers in the niche community. It is possible to expand and grow business in addition to the niche. Unfortunately, several other organizations have lost their identities in an effort to copy the competition, rebrand themselves, or casually jettison a loyal constituency due to change in focus. Let's compare and contrast a few recognized examples.
You've got questions, we used to have the answers
There was a time when car audio enthusiasts would flock to Radio Shack for speakers, wires, radios, antennas, and a variety of other electronic components to install, replace, or upgrade the audio in old cars. This helped many transition from eight track tapes to cassette tapes, and cassettes to CDs. It also helped many to upgrade the basic systems that were originally installed in the automobile. Gradually the new models of automobiles that rolled off the assembly line had much improved audio systems. Demand for car audio upgrades diminished significantly, and the stores stopped carrying the components for do-it-yourself audio enthusiasts. However, the demand will remain as long as there are aging vehicles on the roads, and cycle as frequently as new technology is introduced. Broadcasting the availability of such components at Radio Shack could have been a way to retain this niche of automotive audio enthusiasts, and the ongoing sales, if Radio Shack had retained consistent to this commitment.
The car audio components are only one small part of a sweeping change that occurred at Radio Shack. The devoted tribe of Ham Radio Operators were suddenly without a resource, as Radio Shack virtually abandoned the product. In an effort to rebrand the company and become more like Best Buy or Circuit City, Radio Shack dropped many products and brands. Once known for wires, fuses, transistors, resistors, and all of the ingredients for electronic home cooking, Radio Shack stores replaced many of the component shelves with commodity consumer electronics like cell phones, televisions, and DVD players. The lesser known, and lower cost brand name products that once adorned the shelves, were replaced by the same brands that could be found in Best Buy or Circuit City. The once loyal customers of Radio Shack realized that the lesser known brands had actually been manufactured by the same factories that produced the famous brands, and did not mind paying a little less for a different label. After all, the loyal fans of Radio Shack were audio, video, and electronic enthusiasts, who proudly distinguished themselves from the flocks that followed brand names in retail stores. How bitter it must have been to bring questions, only to be betrayed as the Mecca of answers was turned to the dark side of commodity consumerism, brand names, and retail aisles.
Radio Shack enjoyed a period of rebirth and renewed revenue growth as a primary distribution mechanism for cell phones, and cell phone accessories. Indeed, for a period of time, it appeared that the rebranding and consumer retail strategy was working. The stores enjoyed significant profitability as demand for cell phones exploded. And then came the sweeping and devastating change, as cell phone companies began to open their own stores. Suddenly Radio Shack was competing with the cell phone companies, and competing with cell phone stores that could give away phones, accessories, or cherished free minutes. The Golden Age of cell phone dominance diminished, and the revenue disappeared with it.
Unfortunately, as the wave of cell phone dominance subsided, it revealed a very weak underlying commodity strategy that could not replace the revenue. Having introduced similar brands and products as Best Buy and Circuit City, the differentiation was gone. Why shop at Radio Shack for the same products, and less selection? That was a consumer question for which Radio Shack did not have any answers. Many of the devoted following of audio enthusiasts, Ham Radio Operators, and do-it-yourself home electronics experts had already been forced to find other resources. The niches had been lost, and as a result of not having anything to go back on, many stores were lost too.
The good news for Radio Shack is that it may not be too late to return to the Golden Age of Gadgets. The economy is cyclical, and we are in a period that many consumers would eagerly consider a lower cost, lesser known brand. As each generation continues to live longer, there is a growing appetite for niche products designed for different age groups. It is much easier for local stores to supply these niche products, if the local stores leverage a well executed supply chain solution to minimize inventory and maximize access.
Thinking differently
Let's contrast the Radio Shack strategy to the Apply way. Apple computer company has long been surrounded by fierce competition. The battle for market dominance has taken many forms, and used many allies. Operating systems, software solutions, accessories, microprocessors, and a host of other tactics have been used to wage this ongoing war of technology and formats. Despite overwhelming dominance of market for personal computers, the competitors have been unable to eliminate Apple. In spite of the competition, Apple has not only survived the bitter struggle, but is enjoying a magnificent period of renewed growth.
How is it that Apple could not be eradicated from the computer landscape? The most commonly recognized understanding is the fanatical loyalty of Apple enthusiasts. Graphic artists, musicians, and several paradoxically-challenged IT administrators remained devoted to the imperishable brand. Some of the devoted claimed loyalty for the stability of the operating system, and some for the utilities. With the introduction of the flavor-colored iMac computers, the loyal following surged with new masses who simply appreciated the ability to choose a color. The combined design and marketing campaign may have been as transparent as the colorful casings, but it was at least equally as effective.
Expanding on the foundation of success, Apple introduced the iPod. Once again, a tremendous flood of new and loyal believers converted to Apple. Even the traditionally proud Personal Computer devotees could be spotted with bright wires connecting them to their favorite iTunes. Apply quickly became the dominant force in personal portable audio entertainment. Even as new consumers contemplated converting to Apple, the company has never lost focus on the devoted and loyal followers that helped it survive and thrive. Even going so far as to partner with the perceived enemy of Intel, Apple has expanded technology, without sacrificing the operating system or any of the niche staples embraced by loyalists.
Not satisfied with returning to glory, or dominating the niche of personal portable audio entertainment, Apple used the newfound experience to aggressively attack another area of technology. Just as cell phones contributed to the second Golden Age of Radio Shack, the iPhone is a strong foray into the area of personal portable communication for Apple. Fortunately for Apple, the iPod niche remains strong, and the niche of devoted Apple computer users continues to grow stronger by the day. The iPhone may be a flash in the pan, or a long term strategic success, but in either case, Apple continues to expand niche support and a foundation for continuous success.
Question your niche, and think differently
You have a niche too, perhaps several of them. Your product, brand, or services have a following. It may be based on loyal consumers who appreciate specific features that you provide. It may be a niche following based on geographic region, age group, or some other demographics. The niche may be a result of association with a brand, as with Nike, Mercedes, or Polo. The niche may be the result of unparalleled services, as with the Automobile Association of America, or the National Service Alliance. In any case, identify and nurture your niche of loyal clients, because those customers are your foundation.
The necessity to support your niche is not limited to the consumer environment. On a much more personal level, you may be in a very competitive environment in your place of employment, in government, or in an association. Be aware of the niche of loyal constituents, friends, supporters, and followers who have a personal interest in your success. You should be equally interested and invested in the success of your supporters. This mutual awareness and continuous effort can result in a sense of loyalty and commitment that survives challenge, and is the future for your success.
PS - Good luck Radio Shack, and best wishes in the search to rediscover your niche. Your loyal consumers look forward to your next Golden Age of Gadgets
______________________________________________________
Words of Wisdom
"The ability to focus attention on important things is a defining characteristic of intelligence."- Robert J. Shiller, Irrational Exuberance
"The key to realizing a dream is to focus not on success but significance - and then even the small steps and little victories along your path will take on greater meaning."- Oprah Winfrey, O Magazine, September 2002
"It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them."- Steve Jobs, BusinessWeek May 25, 1998
______________________________________________________
"The only gripe I have with the authors of The Trusted Advocate is that they (or anyone else) didn't write and publish this book many years ago. Its fresh and almost revolutionary approach to its topic is decades overdue.
Some of us may start reading this volume somewhat skeptical about the authors' opening thesis that the way we are habituated to define "success" is entirely illusory. But any doubts will be quickly dispelled as their highly readable analysis of the inseparable relationship between real success and the twin concepts of authenticity and integrity unfolds. And more than that - they make it easy for us to internalize what we have read as we are gently provoked to practically apply the knowledge to our own individual situations.
Moreover, it will be a great pity if this book will be read only be sales professionals in the narrow sense. In effect, we are all salespeople - whether our need is to "sell" the ideas we believe in, to secure the best terms for the services we need, or just to convince our boss to give us a raise. Simply put, applying the concepts presented in this book will help to make the world a better place. Period."
- Azriel WinnetAuthor Hodu.com (Israel), Your Gateway to Better Communication Skills
The Trusted Advocate: Accelerate Success with Authenticity and Integrity is available now online in hardcover and paperback from www.Amazon.com (Hardcover), www.Amazon.com (Paperback), www.BarnessndNoble,com, www.Borders.com, www.Target.com, www.Buy.com, ,www.iUniverse.com, and many other fine booksellers.
About the Author:
John Mehrmann is author of The Trusted Advocate: Accelerate Success with Authenticity and Integrity, the fundamental guide to achieve extraordinary sales and sustain loyal customers. John Mehrmann is a freelance writer and President of Executive Blueprints Inc., an organization devoted to improving business practices and developing human capital.
www.ExecutiveBlueprints.com provides resource materials for trainers, sample Case Studies, and educational articles. http://www.InstituteforAdvancedLeadership.com provides self-paced tutorials for personal development and tools for trainers. Presentation materials, reference guides and exercises are available for continuous development.
You've got questions, we used to have the answers
There was a time when car audio enthusiasts would flock to Radio Shack for speakers, wires, radios, antennas, and a variety of other electronic components to install, replace, or upgrade the audio in old cars. This helped many transition from eight track tapes to cassette tapes, and cassettes to CDs. It also helped many to upgrade the basic systems that were originally installed in the automobile. Gradually the new models of automobiles that rolled off the assembly line had much improved audio systems. Demand for car audio upgrades diminished significantly, and the stores stopped carrying the components for do-it-yourself audio enthusiasts. However, the demand will remain as long as there are aging vehicles on the roads, and cycle as frequently as new technology is introduced. Broadcasting the availability of such components at Radio Shack could have been a way to retain this niche of automotive audio enthusiasts, and the ongoing sales, if Radio Shack had retained consistent to this commitment.
The car audio components are only one small part of a sweeping change that occurred at Radio Shack. The devoted tribe of Ham Radio Operators were suddenly without a resource, as Radio Shack virtually abandoned the product. In an effort to rebrand the company and become more like Best Buy or Circuit City, Radio Shack dropped many products and brands. Once known for wires, fuses, transistors, resistors, and all of the ingredients for electronic home cooking, Radio Shack stores replaced many of the component shelves with commodity consumer electronics like cell phones, televisions, and DVD players. The lesser known, and lower cost brand name products that once adorned the shelves, were replaced by the same brands that could be found in Best Buy or Circuit City. The once loyal customers of Radio Shack realized that the lesser known brands had actually been manufactured by the same factories that produced the famous brands, and did not mind paying a little less for a different label. After all, the loyal fans of Radio Shack were audio, video, and electronic enthusiasts, who proudly distinguished themselves from the flocks that followed brand names in retail stores. How bitter it must have been to bring questions, only to be betrayed as the Mecca of answers was turned to the dark side of commodity consumerism, brand names, and retail aisles.
Radio Shack enjoyed a period of rebirth and renewed revenue growth as a primary distribution mechanism for cell phones, and cell phone accessories. Indeed, for a period of time, it appeared that the rebranding and consumer retail strategy was working. The stores enjoyed significant profitability as demand for cell phones exploded. And then came the sweeping and devastating change, as cell phone companies began to open their own stores. Suddenly Radio Shack was competing with the cell phone companies, and competing with cell phone stores that could give away phones, accessories, or cherished free minutes. The Golden Age of cell phone dominance diminished, and the revenue disappeared with it.
Unfortunately, as the wave of cell phone dominance subsided, it revealed a very weak underlying commodity strategy that could not replace the revenue. Having introduced similar brands and products as Best Buy and Circuit City, the differentiation was gone. Why shop at Radio Shack for the same products, and less selection? That was a consumer question for which Radio Shack did not have any answers. Many of the devoted following of audio enthusiasts, Ham Radio Operators, and do-it-yourself home electronics experts had already been forced to find other resources. The niches had been lost, and as a result of not having anything to go back on, many stores were lost too.
The good news for Radio Shack is that it may not be too late to return to the Golden Age of Gadgets. The economy is cyclical, and we are in a period that many consumers would eagerly consider a lower cost, lesser known brand. As each generation continues to live longer, there is a growing appetite for niche products designed for different age groups. It is much easier for local stores to supply these niche products, if the local stores leverage a well executed supply chain solution to minimize inventory and maximize access.
Thinking differently
Let's contrast the Radio Shack strategy to the Apply way. Apple computer company has long been surrounded by fierce competition. The battle for market dominance has taken many forms, and used many allies. Operating systems, software solutions, accessories, microprocessors, and a host of other tactics have been used to wage this ongoing war of technology and formats. Despite overwhelming dominance of market for personal computers, the competitors have been unable to eliminate Apple. In spite of the competition, Apple has not only survived the bitter struggle, but is enjoying a magnificent period of renewed growth.
How is it that Apple could not be eradicated from the computer landscape? The most commonly recognized understanding is the fanatical loyalty of Apple enthusiasts. Graphic artists, musicians, and several paradoxically-challenged IT administrators remained devoted to the imperishable brand. Some of the devoted claimed loyalty for the stability of the operating system, and some for the utilities. With the introduction of the flavor-colored iMac computers, the loyal following surged with new masses who simply appreciated the ability to choose a color. The combined design and marketing campaign may have been as transparent as the colorful casings, but it was at least equally as effective.
Expanding on the foundation of success, Apple introduced the iPod. Once again, a tremendous flood of new and loyal believers converted to Apple. Even the traditionally proud Personal Computer devotees could be spotted with bright wires connecting them to their favorite iTunes. Apply quickly became the dominant force in personal portable audio entertainment. Even as new consumers contemplated converting to Apple, the company has never lost focus on the devoted and loyal followers that helped it survive and thrive. Even going so far as to partner with the perceived enemy of Intel, Apple has expanded technology, without sacrificing the operating system or any of the niche staples embraced by loyalists.
Not satisfied with returning to glory, or dominating the niche of personal portable audio entertainment, Apple used the newfound experience to aggressively attack another area of technology. Just as cell phones contributed to the second Golden Age of Radio Shack, the iPhone is a strong foray into the area of personal portable communication for Apple. Fortunately for Apple, the iPod niche remains strong, and the niche of devoted Apple computer users continues to grow stronger by the day. The iPhone may be a flash in the pan, or a long term strategic success, but in either case, Apple continues to expand niche support and a foundation for continuous success.
Question your niche, and think differently
You have a niche too, perhaps several of them. Your product, brand, or services have a following. It may be based on loyal consumers who appreciate specific features that you provide. It may be a niche following based on geographic region, age group, or some other demographics. The niche may be a result of association with a brand, as with Nike, Mercedes, or Polo. The niche may be the result of unparalleled services, as with the Automobile Association of America, or the National Service Alliance. In any case, identify and nurture your niche of loyal clients, because those customers are your foundation.
The necessity to support your niche is not limited to the consumer environment. On a much more personal level, you may be in a very competitive environment in your place of employment, in government, or in an association. Be aware of the niche of loyal constituents, friends, supporters, and followers who have a personal interest in your success. You should be equally interested and invested in the success of your supporters. This mutual awareness and continuous effort can result in a sense of loyalty and commitment that survives challenge, and is the future for your success.
PS - Good luck Radio Shack, and best wishes in the search to rediscover your niche. Your loyal consumers look forward to your next Golden Age of Gadgets
______________________________________________________
Words of Wisdom
"The ability to focus attention on important things is a defining characteristic of intelligence."- Robert J. Shiller, Irrational Exuberance
"The key to realizing a dream is to focus not on success but significance - and then even the small steps and little victories along your path will take on greater meaning."- Oprah Winfrey, O Magazine, September 2002
"It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them."- Steve Jobs, BusinessWeek May 25, 1998
______________________________________________________
"The only gripe I have with the authors of The Trusted Advocate is that they (or anyone else) didn't write and publish this book many years ago. Its fresh and almost revolutionary approach to its topic is decades overdue.
Some of us may start reading this volume somewhat skeptical about the authors' opening thesis that the way we are habituated to define "success" is entirely illusory. But any doubts will be quickly dispelled as their highly readable analysis of the inseparable relationship between real success and the twin concepts of authenticity and integrity unfolds. And more than that - they make it easy for us to internalize what we have read as we are gently provoked to practically apply the knowledge to our own individual situations.
Moreover, it will be a great pity if this book will be read only be sales professionals in the narrow sense. In effect, we are all salespeople - whether our need is to "sell" the ideas we believe in, to secure the best terms for the services we need, or just to convince our boss to give us a raise. Simply put, applying the concepts presented in this book will help to make the world a better place. Period."
- Azriel WinnetAuthor Hodu.com (Israel), Your Gateway to Better Communication Skills
The Trusted Advocate: Accelerate Success with Authenticity and Integrity is available now online in hardcover and paperback from www.Amazon.com (Hardcover), www.Amazon.com (Paperback), www.BarnessndNoble,com, www.Borders.com, www.Target.com, www.Buy.com, ,www.iUniverse.com, and many other fine booksellers.
About the Author:
John Mehrmann is author of The Trusted Advocate: Accelerate Success with Authenticity and Integrity, the fundamental guide to achieve extraordinary sales and sustain loyal customers. John Mehrmann is a freelance writer and President of Executive Blueprints Inc., an organization devoted to improving business practices and developing human capital.
www.ExecutiveBlueprints.com provides resource materials for trainers, sample Case Studies, and educational articles. http://www.InstituteforAdvancedLeadership.com provides self-paced tutorials for personal development and tools for trainers. Presentation materials, reference guides and exercises are available for continuous development.
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