You may be thinking, “He has finally lost it, infomercials? Really?”. The answer is “yes”. Let me explain.
According to Global Industry Analysts, Inc. the US Market for infomercial products is projected to grow to $252 billion by 2015. For those of you paying attention that is a whopping 5 X the entire pet industry! The word infomercial conjures up visions of cheap, garbage products hawked by loud mouth spokes people. Now this still exists, but so do more sophisticated infomercials by well respected brands like Bose. See the Bose example in the video below.
What is driving the growth of infomercials? Primarily the lackluster economy. GIA, Inc. lists the following…
1) More people are staying home increasing the need for entertainment products.
2) Consumers are preparing their meals at home increasing the need for food processing, knives, etc.
3) The convenience of being able to shop from home – hassle free.
What does this mean to you as a Pet Product manufacturer? Well, a lot.
If your product is really problem/solution and easy and fun to demonstrate infomercials may be for you. Infomercials put the power back in your hands and the hands of the consumer and away from the retailer. You build the demand with the consumer via :60 spots on TV along with an 1-800 number and direct response style website to take orders. The beauty? Retailers will come to you after consumers start coming into their stores looking for your product. It’s a great model. It brings things back to the way they should be. The manufacturer has the power. The retailer simply becomes a means of distributing a product.
It is getting harder and harder to get distribution in the pet industry. Even if you are lucky enough to get a pet chain to take a shot on your product, what happens next? How will you promote it? Most people don’t know how or have the funding to do so.
Now, let’s get real. Infomercials aren’t cheap. The costs to go in this direction are about…
1) TV Production $15 – $25,000
2) Media test $10 – $15,000 for 1 week
3) Fulfillment and Call Center Set up and ongoing order taking $3 – $6k/month
So your upfront expenses are going to be somewhere between $30 – $50k. Sound like a lot? It is. But what is the cost of spinning your wheels and getting nowhere?
BUT… if you are successful and do all of your homework up front you can be profitable and drive brand awareness at the same time.
Oh, and just about every retailer today has an “As Seen on TV” section – including both Petsmart & Petco. It’s a great way to side step the whole process and let the consumer decide.
