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The Bundle Crowns Panasonic As Cordless King

By Greg Scoblete -- TWICE, 7/26/2004

Sidebars:
Success Story: Panasonic KXTG2382
Retailers' New Bundle Of Joy

Secaucus, N.J.— The growth of cordless-phone expansion systems into multihandset bundles have proven to be a boon to the category, shoring up average selling prices that would otherwise be steeply declining, and no company has enjoyed the fruits of expandability more than that category's top-brand.

Panasonic's KXTG2382 was the company's first multihandset bundle, packaging two handsets in one box, and it was the top seller, dollar-wise, in the expandable cordless-phone category from June 2003 through May 2004, according to The NPD Group, Port Washington, N.Y.

The KXTG2382 was Panasonic's top-of-the-line 2.4GHz digital spread spectrum phone, offering the company's frequency-hopping technology ITAD with 15 minutes of recording time and caller ID. It was expandable up to three handsets.

At a suggested $129.95, it offered a good value for consumers looking for a one-stop home-phone purchase, said Wayne Borg, Panasonic's national marketing manager for communications.

"Two or three cordless phones pretty much sets up the average household," Borg said. The company offered another 2382 configuration that packaged three handsets in a box for warehouse clubs.

Borg noted that the three-in-one box "did very well" for the warehouses.

The three-handset bundle was an even better value: at $149.95 it added an accessory handset that as a standalone commanded a suggested $49.95 retail.

The KXTG2382 featured the company's first use of window-box packaging to visually alert consumers to the additional handset but was not "advertised any more than our other products," Borg said. Rather it sold on the strength of the bundle, the step-up feature set and the value, he said.

It did, however, incorporate some new technology, such as a voice enhancement feature that digitally adds missing voice tones that landline carriers remove when transmitting a call, Borg said.

Top 10 Cordless Phones
Dollar sales at retail, June 2003 – May 2004
1. Panasonic KXTG2382
2. Panasonic KXTG5100
3. Uniden TRU58852
4. Panasonic KXTG2740
5. AT&T 2256
6. Panasonic KXTG2730
7. Panasonic KXTG2352
8. AT&T 5840
9. General Electric 27958GE1
10. Uniden TRU448-2
Source: The NPD Group
© TWICE 2004

 

Success Story: Panasonic KXTG2382

Suggested retail: $129.95

Key features:

  • 2.4GHz Frequency Hopping Digital Spread Spectrum
  • Integrated Digital Answering Machine, 15 minute record time
  • Caller ID
  • Two handsets in the box, expandable to three
  • Handset speakerphone

Retailers' New Bundle Of Joy

New York — Consumers instantly recognized the value of a cordless bundle from the category's marquee brand, pushing Panasonic's KXTG2382 out of retail shelves with alacrity, dealers said.

"It was extremely successful," said Adam Davis, buyer for R.C. Willey of Salt Lake City.

"It was their first model with a bundled handset and, especially for our market in Utah, our consumers are very price-conscious" and appreciate the value of the additional handset, Davis noted.

Best Buy's senior buyer John Messina concurred, adding that the model "offered a lot of value for the $129 retail price, such as two handsets, caller ID and answering machine."

Staples, which sold the product through its e-tail site, reported strong sales and brought its successor model in-store, said Chris DiOrio, Staples' senior product manager for business machines. "People are looking to pack features into their product, and this offered a good value to our small, home office customers," DiOrio said.

"Expandability has been phenomenal for us and for the home office customer," DiOrio noted, adding that Panasonic's brand strength has been amplified by the exit of other CE brands from the phone market, notably Sony and Toshiba.

Retailers noted that the advertising push from Panasonic on the unit was minor, and the heavy lifting varied among dealers. R.C. Willey promoted the product heavily to get customers in stores, Davis said, while Best Buy "periodically" featured it in its sales inserts, Messina said.

While the KXTG2382 could add a third handset, most retailers said consumers were satisfied with what they took home in the box. "Customers are basically happy" with what they get in the box, Davis said.

"This unit was unusual for us in that we only made the expansion handset available on our dot com site," said Best Buy's Messina. "It was one of our better dot-com sellers … In our brick-and-mortar stores. I think there was a fairly high level of satisfaction with the dual handset package."

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