RCA Remote Touches On Simplicity

New York — Even with generally a small amount of retailer advertising, according to a nationwide ad-tracking company, Thomson's RCA-brand RCU300 remote control, was able to achieve healthy sales during the May 2003 through April 2004 tracking period, leaving the remote's "on-shelf" presence, product package sell lines — and most important, sharp pricing — to account for the lion's share of turnover at point-of-sale.

During this year-ago 12-month time frame, RCA's RCU300 was the second-best dollar seller among the Top 10 movers, according to The NPD Group/NPD Techworld, which tracks product dollar sales at retail.

Print advertising — the primary media for extolling the virtues of such CE products as the RCU300 remote during the NPD sales tracking year — "was fairly uneventful during the period in question, except for a small blitz Best Buy did in October of 2003," said Jim Kennedy, client services manager for Niagara Falls, N.Y.-based Beyen, the international market research company that tracks consumer electronics retailer advertising, as well as in-store product pricing.

The Best Buy campaign for the RCU300 in October 2003 wrapped around 71 ad events, including a circular front cover distributed by the nation's largest CE retailer. The advertised cover circular price point for the RCU300 by Minneapolis-based Best Buy was $5.99, a savings of $4, according to Beyen data.

Two other retailers also ran RCU300 on-sale ads in the NPD May 2003-April 2004 sales tracking period. ABC Warehouse, based in Pontiac, Mich., ran two ads in March of 2004 that offered a $4.77 retail, according to Beyen statistics. Hollywood, Fla.-based BrandsMart U.S.A. offered a single ad in each of September and October of 2003 that featured a $5.88 retail, according to Beyen.

In contrast to the relatively "minimal" print advertising available for the RCU300 during the year-long tracking period, cited by Beyen statistics, BrandsMart claimed much of the hefty movement for this RCA remote was attributed to the retailer's selective print promotion.

"It was positively the advertising," said Tom Freeman, VP/merchandising for the five-unit superstore chain, about how BrandsMart successfully sold this product. "We advertise frequently at a price point substantially lower than the competition," said Freeman, who noted the chain sold RCU300 remotes at either $4.88 or $3.88 during the year's tracking period.

Even though the BrandsMart newspaper advertising allowed for only a small print space to highlight the RCU300, Freeman emphasized the "really low prices" would catch a casual reader's eye. "It was a small ad space, but better than no space at all," he continued.

At the same time BrandsMart print ads were helping to move out the RCU300 units, point-of-sale impulse merchandising — counting heavily on high-traffic display and low price points — also helped sales of the RCA remote. "We merchandised it in two places in our stores — grab bins and compulsive-buy baskets," said Freeman, who explained the remotes were "so cheap, so inexpensive," that consumers felt compelled to make a purchase.

One other retailer also took advantage of print ads, just following the year-long survey. In May of 2004, one month after the tracking period ended, Grand Rapids, Mich.-based Meijer ran four on-sale ads that featured a $7 retail. During this month, Meijer also ran an ad that included a $2.99 instant rebate for the RCU300.

Currently, online retailers are combining sharp pricing with accompanying sell lines.

Best Buy is offering the platinum RCU300 on its Web site for $9.99. The retailer is promoting a "simplified life" with the purchase of this universal remote. Other promotional highlights include mention of dedicated DVD keys; code preprogramming for most vendors; control of up to three components, so users can eliminate these other remotes; and back-lighted keypad for easier night operation.

Circuit City matches Best Buy's online price point of $9.99 for the RCA remote. Product promotion from the Richmond, Va.-based chain emphasizes the inclusion of batteries; control of a television, VCR and cable box; VCR function keys so a user can play, rewind, fast forward, record, stop and pause tapes from the comfort of their favorite chairs; and a two-tone keypad that makes it easier to locate keys quickly and easily.

Regional retailer P.C. Richard, based in Farmingdale, N.Y., primarily pushes the RCU300 remote with a $6.99 Internet price point. The only other support is mention of "universal" for the remote control and three-devices with DVD menu and sleep control.

AudioBuys.net, an online-only retailer, comes closer to the manufacturer suggested retail of $12.95, compared with major brick and mortar retailers' online sites. Its online price point is $11.30, while accompanying promotional message offers in-depth product features.

For example, the AudioBuys' site promotes a three-device remote for over 140 brands, the combination of ease of use with advanced features, preprogramming for operating most equipment, set-up via manual entry or searches of the code library, and code saver for battery change without losing programmed codes.