January 7, 2009
Ronco Now Available in Stores
Ronco, the company that
introduced you to the Veg-o-Matic, the Pocket
Fisherman and many other products “not available in stores”
via infomercials dating back to the 1950s, is now looking
to build its business by selling its items in stores, as well.
“Everybody
knows Ronco,” Barry Gasmer,
director of sales for the company, told STORES magazine. “It’s
a name brand. Whether you get a little snicker or a laugh, they are great
products. The rotisseries alone have sold over 10 million [units] worldwide.”
Under current
management, Ronco has continued to market its
products on the tube while also distributing them through retailers including
Costco, Kroger, Rite Aid, Sears, Walgreens and Walmart.
“Our core
bread-and-butter is still direct response, but we just wanted to bring
it more to the masses,” said Mr. Gasmer
Larry Nusbaum, a businessman who bought Ronco in
2005, said retailers benefit from the company’s informercials. “TV
drives retail and it drives viewership and awareness,” he told STORES. “When
we spend a lot of money on TV, sales go up; when we’re off TV, sales go
down.”
Discussion Questions:
Do you expect to see a growing demand for “as seen on TV” products?
How does a brand find the right fit between its direct marketing business
and selling products at retail?
BrainTrust
Recent Discussions
Discussion Questions
Poll
“As seen on TV” has been around for decades, so Ronco entering retail is not unique. The fact that they build their brand around “not available in stores” and then appear in stores is new. Will this hurt their brand? No. It can only enhance it. Consumers want to buy products wherever and whenever they desire. Ronco is making it easy for consumers to make a purchase.
I have one word for you…”PLASTIC”! Retailers used to selling quality products won’t tolerate a high rate of returns. I have my doubts!
My husband had to drag my 7-year old son out of the mall on Christmas Eve because he was bawling uncontrollably. Apparently, all he wanted in the world to get me was the Big City Slider Press-n-Cook grill. No one carried it as it was an “As seen on TV” item only. He came home in tears and I let him “buy” it for me online. Fortunately it shipped quickly, because I was getting worried he’d need some therapy to go with his grill.
There’s definitely power in the messaging in those infomercials that drive people to buy. And there is a market for shoppers who want the instant gratification of not waiting for that item to be shipped.
With the Ronco machine, I think people who were worried that the price point was too steep to get it shipped if they wound up hating it will be more inclined to buy/try through a store purchase. We did a holiday shopping spree on the site for one of our members–the Ronco was on her “wishlist” and she’d never considered buying one herself as much as she wanted one. This could be a bit of a game-changer for that brand.
I think the challenge Ronco has is more “how to get the message out” than “how to distribute the product.” With audiences dwindling and segmenting, the “reach” of television advertising is significantly diminished.
The whole Ronco business model had been built on a widely distributed message that drove awareness and demand. The advantage they had was the centralized order processing, fulfillment, and customer service infrastructure. Now that so many online retailers have duplicated this capability, Ronco is no longer unique. What they might want to do is consider some “private label” versions of their offerings and use product placement and Internet-based advertising to increase awareness of their branded versions.
All those “As Seen on TV” products have been in many stores for years. I’ve even see outlets for them. They are already on the street in flea markets and eBay. Honestly, when I saw these products up close in an “As Seen on TV” store in the mall, I was not very impressed. When you see how small and cheap these products look up close, they lose their appeal.
I’ve seen As Seen on TV stores for quite some time, usually on the West Coast. I’m sure they’re successful enough to stay in business, but I haven’t seen them proliferate. Perhaps it’s because, as someone alluded to, the products are generally of pretty shoddy quality. Infomercials themselves are of much higher quality than the products. Slick productions that hit all the hot buttons, really well done. Many of the products I have seen in the “On TV” stores are already broken from light handling by shoppers. Okay, there’s definitely a market for this stuff. But it’s finite.
What could be better? Ronco is the ultimate iconic kitsch brand, and I can’t wait to get my hands on the “set it and forget it” rotisserie. In an economic climate like this, manufacturers should pull out every stop!
This is not a new trend, since Ronco itself has had several retail channels for awhile. Home exercise equipment in particular has been widely distributed in discount and sporting goods stores for a number of years, especially when a new “hot item” emerges. The audience for home shopping is not limitless, so expansion to bricks-and-mortar stores makes sense. And Ronco already realizes that its own e-commerce site is no less effective than telemarketing as a way to sell product–and perhaps a lot more cost-efficient.
Um, I don’t know how many TV channels my distinguished colleagues get but this may not be a new idea–certainly it is not widespread. Has anyone ever really seen a Pocket Fisherman in their local Kmart? There are so many products now being sold on TV “only” in every imaginable category and how many manufacturer’s can you name? Ronco may be the only name brand, so more power to them if they can get the retailers to stock their items.
This is probably a smart move on Ronco’s part–though I’m not sure what it does for the name-brand retailer’s image. There is a generation that will never be able to forget the “Bass-O-Matic” skit on SNL. At least one regional faction (the Southeast) will never be able to disassociate “As Seen On TV” stores from interstate truck stops and outlet malls. Still, as a satisfied Showtime Rotisserie owner, I must admit that Ronco products have come a long way from the “Popiel Pocket Fisherman” someone gave me as a kid. (Let’s just say you would never find one in an Orvis catalog….)
Ronco is leveraging the brand they have built into additional retail channels–good potential for growth here. The curiosity about these products is sometimes offset by concerns about construction quality, delivery, etc. Now, with more channels, likely that sales will grow from those who like to see what they are purchasing, and trust their retailer if there are issues. Smart move for Ronco if they can continue the momentum with new products.
There is a chain here in Toronto called As Seen On TV that I love going too because I can see how really junky TV merchandise is. My wife saw an infomercial for the new H2O Mop. She was thoroughly impressed by its ‘cleaning capability’ and ‘ease of use’. We were able to test the product out at one of the stores and to my sheer astonishment, it did not work as well as it did on the TV!
Manufacturers and distributors are better served leaving their products on TV. Having customers try them in real life will not help sales nor their reputation. I think I still have a Ronco/KTel LP record storage unit on order somewhere!
I’m not too sure I understand where the “news” is in this story. Retail chains, for example, Walgreens, does a huge business with As Seen On TV products sold by Idea Village, Telebrands, etc. It’s a terrific partnership and works well for the distributors, advertisers, retailers, and the consumers. In many instances, with some of the As Seen On TV companies, the product is available first only on TV and via direct sales, for a brief period of time.
There is nothing new here. I consulted to a major TV direct-response company in the early 90s, who wanted to bring their “As Seen on TV” products through supermarkets. They did and have been successful.
I have also counseled clients to consider using direct-response infomercials as a new product launch tool for products that ultimately will move 90% of their volume through brick and mortar retail.
When Ronco or any other direct response marketer makes a hit, they will have generated considerable reach, frequency and awareness. It would be foolish not to take advantage of retail outlets with the magnitude of advertising support already generated.
Direct response companies should have enough information to determine when they switch their efforts from direct response to retail. These companies are very data-oriented and can determine an inflection point on when to make the change. If they haven’t, they should.
During a store tour of greater LA last month with executives of a major European retailer, we saw an “As Seen on TV” location in a mall near Covina. The Europeans were very interested in the store, although it took me about 30 minutes to talk them through the whole infomercial concept.
One of the pertinent questions they asked was how these stores are marketing. They aren’t getting any support from the makers of these products; at least I’ve never seen an infomercial telling shoppers to look for them at the As Seen on TV store. Another question that we weren’t able to get answered is, do these stores take back merchandise purchased directly from the manufacturer/distributor? I can’t imagine the answer is yes.
This is a smart move by Ronco. The “As Seen on TV” brand has successfully proven this model, and it is being duplicated (although not with the same branding) by many other products at TV shopping networks like QVC, HSN, Shop at Home, etc. We have many products that have brick and mortar, click and mortar and TV presence, and their sales have only benefited from the multiple exposures.
More Discussions
As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…Is Supply Chain Volatility Here To Stay?
Can we expect an ongoing volatility to remain in terms of retail supply chain?Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?
“As seen on TV” has been around for decades, so Ronco entering retail is not unique. The fact that they build their brand around “not available in stores” and then appear in stores is new. Will this hurt their brand? No. It can only enhance it. Consumers want to buy products wherever and whenever they desire. Ronco is making it easy for consumers to make a purchase.
I have one word for you…”PLASTIC”! Retailers used to selling quality products won’t tolerate a high rate of returns. I have my doubts!
My husband had to drag my 7-year old son out of the mall on Christmas Eve because he was bawling uncontrollably. Apparently, all he wanted in the world to get me was the Big City Slider Press-n-Cook grill. No one carried it as it was an “As seen on TV” item only. He came home in tears and I let him “buy” it for me online. Fortunately it shipped quickly, because I was getting worried he’d need some therapy to go with his grill.
There’s definitely power in the messaging in those infomercials that drive people to buy. And there is a market for shoppers who want the instant gratification of not waiting for that item to be shipped.
With the Ronco machine, I think people who were worried that the price point was too steep to get it shipped if they wound up hating it will be more inclined to buy/try through a store purchase. We did a holiday shopping spree on the site for one of our members–the Ronco was on her “wishlist” and she’d never considered buying one herself as much as she wanted one. This could be a bit of a game-changer for that brand.
I think the challenge Ronco has is more “how to get the message out” than “how to distribute the product.” With audiences dwindling and segmenting, the “reach” of television advertising is significantly diminished.
The whole Ronco business model had been built on a widely distributed message that drove awareness and demand. The advantage they had was the centralized order processing, fulfillment, and customer service infrastructure. Now that so many online retailers have duplicated this capability, Ronco is no longer unique. What they might want to do is consider some “private label” versions of their offerings and use product placement and Internet-based advertising to increase awareness of their branded versions.
All those “As Seen on TV” products have been in many stores for years. I’ve even see outlets for them. They are already on the street in flea markets and eBay. Honestly, when I saw these products up close in an “As Seen on TV” store in the mall, I was not very impressed. When you see how small and cheap these products look up close, they lose their appeal.
I’ve seen As Seen on TV stores for quite some time, usually on the West Coast. I’m sure they’re successful enough to stay in business, but I haven’t seen them proliferate. Perhaps it’s because, as someone alluded to, the products are generally of pretty shoddy quality. Infomercials themselves are of much higher quality than the products. Slick productions that hit all the hot buttons, really well done. Many of the products I have seen in the “On TV” stores are already broken from light handling by shoppers. Okay, there’s definitely a market for this stuff. But it’s finite.
What could be better? Ronco is the ultimate iconic kitsch brand, and I can’t wait to get my hands on the “set it and forget it” rotisserie. In an economic climate like this, manufacturers should pull out every stop!
This is not a new trend, since Ronco itself has had several retail channels for awhile. Home exercise equipment in particular has been widely distributed in discount and sporting goods stores for a number of years, especially when a new “hot item” emerges. The audience for home shopping is not limitless, so expansion to bricks-and-mortar stores makes sense. And Ronco already realizes that its own e-commerce site is no less effective than telemarketing as a way to sell product–and perhaps a lot more cost-efficient.
Um, I don’t know how many TV channels my distinguished colleagues get but this may not be a new idea–certainly it is not widespread. Has anyone ever really seen a Pocket Fisherman in their local Kmart? There are so many products now being sold on TV “only” in every imaginable category and how many manufacturer’s can you name? Ronco may be the only name brand, so more power to them if they can get the retailers to stock their items.
This is probably a smart move on Ronco’s part–though I’m not sure what it does for the name-brand retailer’s image. There is a generation that will never be able to forget the “Bass-O-Matic” skit on SNL. At least one regional faction (the Southeast) will never be able to disassociate “As Seen On TV” stores from interstate truck stops and outlet malls. Still, as a satisfied Showtime Rotisserie owner, I must admit that Ronco products have come a long way from the “Popiel Pocket Fisherman” someone gave me as a kid. (Let’s just say you would never find one in an Orvis catalog….)
Ronco is leveraging the brand they have built into additional retail channels–good potential for growth here. The curiosity about these products is sometimes offset by concerns about construction quality, delivery, etc. Now, with more channels, likely that sales will grow from those who like to see what they are purchasing, and trust their retailer if there are issues. Smart move for Ronco if they can continue the momentum with new products.
There is a chain here in Toronto called As Seen On TV that I love going too because I can see how really junky TV merchandise is. My wife saw an infomercial for the new H2O Mop. She was thoroughly impressed by its ‘cleaning capability’ and ‘ease of use’. We were able to test the product out at one of the stores and to my sheer astonishment, it did not work as well as it did on the TV!
Manufacturers and distributors are better served leaving their products on TV. Having customers try them in real life will not help sales nor their reputation. I think I still have a Ronco/KTel LP record storage unit on order somewhere!
I’m not too sure I understand where the “news” is in this story. Retail chains, for example, Walgreens, does a huge business with As Seen On TV products sold by Idea Village, Telebrands, etc. It’s a terrific partnership and works well for the distributors, advertisers, retailers, and the consumers. In many instances, with some of the As Seen On TV companies, the product is available first only on TV and via direct sales, for a brief period of time.
There is nothing new here. I consulted to a major TV direct-response company in the early 90s, who wanted to bring their “As Seen on TV” products through supermarkets. They did and have been successful.
I have also counseled clients to consider using direct-response infomercials as a new product launch tool for products that ultimately will move 90% of their volume through brick and mortar retail.
When Ronco or any other direct response marketer makes a hit, they will have generated considerable reach, frequency and awareness. It would be foolish not to take advantage of retail outlets with the magnitude of advertising support already generated.
Direct response companies should have enough information to determine when they switch their efforts from direct response to retail. These companies are very data-oriented and can determine an inflection point on when to make the change. If they haven’t, they should.
During a store tour of greater LA last month with executives of a major European retailer, we saw an “As Seen on TV” location in a mall near Covina. The Europeans were very interested in the store, although it took me about 30 minutes to talk them through the whole infomercial concept.
One of the pertinent questions they asked was how these stores are marketing. They aren’t getting any support from the makers of these products; at least I’ve never seen an infomercial telling shoppers to look for them at the As Seen on TV store. Another question that we weren’t able to get answered is, do these stores take back merchandise purchased directly from the manufacturer/distributor? I can’t imagine the answer is yes.
This is a smart move by Ronco. The “As Seen on TV” brand has successfully proven this model, and it is being duplicated (although not with the same branding) by many other products at TV shopping networks like QVC, HSN, Shop at Home, etc. We have many products that have brick and mortar, click and mortar and TV presence, and their sales have only benefited from the multiple exposures.