Spots N Dots
The Daily News Of TV Sales
September 8, 2016
CONSUMER PRODUCT INNOVATION RARE
SUCCESSFUL INNOVATION DRIVES GROWTH
Innovation is the “Holy Grail” for consumer product companies, but a new report by Deloitte finds that few actually succeed in innovating. Meanwhile, those companies are facing ongoing challenges—from slowing industry growth to declining brand loyalty and the rise of unconventional competitors.
“While virtually all companies in the world pursue ‘innovation’ as a key driver of growth, very few are actually creating new business offerings,” Deloitte analysts concluded after studying 44 leading consumer product companies, representing over $900 billion in revenue. What they did find, though, was that a small number of them are driving disproportionate performance from consumer product innovation. Based on this insight, the Deloitte team set out to understand what separates innovation leaders from everyone else.
“Simply put, the companies that drive disproportionate returns and performance from their innovation investments are companies that do three things well,” the report says. First, they innovate beyond product and use multiple types of consumer product innovation to improve profitability and consumer experience. Companies that apply multifaceted innovation to support product differentiation demonstrated a better hit rate for innovations launched in the market.
Secondly, they design for consumer behavior. They break through consumer paralysis and stimulate trial and adoption by leveraging “on the ground” realities of consumer decision-making. Deeper understanding of consumers’ cognitive and behavioral tendencies can help companies heighten consumer engagement and prevent off-ramps to action.
And the third thing they do well is develop systemic capabilities. Theybuild robust organizational structures that enable repeated consumer product innovation performance. Companies that systematically consider innovation strategy and intentionally structure to support and fuel innovation with the right leadership, talent, and funding mechanisms, can more reliably design, launch, and scale innovations over time.
Deloitte notes that convincing consumers to try a new product or choose one amongst many remains a “fundamental challenge” for consumer product companies. That, quite obviously in our view, is where advertising can play a key role. Deloitte calls it “understanding the consumer mindset,” providing “front of mind presence” and “supplying compelling prompts to action.” We would say that all comes down to good marketing once a new product is ready to launch.
ADVERTISER NEWS
There’s more evidence that the supermarket business is currently going through a rough time with food deflation one of the major reasons along with heavy competition in some markets. Sprouts Farmers Markets lowered estimates significantly just one month after projecting better results—it said then that the current quarter same-store sales would be up 3-4% but now projects comps will be flat, and it also took full-year projections down by 2%. Sprouts is currently in 13 states from coast to coast with about 240 stores...... And Supervalu, which operates a big wholesale/food distribution business along with several retail chains, lowered its own outlook saying current same-store sales will be worse than the last quarter. Supervalu operates “traditional retail” chains Cub Foods, Farm Fresh, Hornbacher’s, Shop ‘N Save and Shoppers as well as “discount retail” chain Save-A-Lot……There’s been another bankruptcy in the restaurant business that’s also had a lot of problems recently: this time it’s a small chain, Zio’s Italian Kitchen, owned by San Antonio-based Food Management Partners. With most Zio’s locations in the Southwest, FMP cites the low oil prices in its area along with “the erosion of sales in the casual-dining segment in general” for the year-to-year revenue drop “in excess of 10% over the last 12 months”……Dave & Buster’s managed a 1% same-store increase in the quarter that ended on 7/31 but that was in comparison to an 11% increase in the same period a year ago. The CEO said “the macroeconomic environment and especially the casual-dining industry slowed relatively to the first quarter.” The chain is opening 11 new locations this year……Here’s a chain getting out of bankruptcy: Pacific Sunwear of California won court approval to emerge after giving all stock in the company to senior lender Golden Gate Capital. Chain Store Age notes PacSun had 593 stores when it filed for bankruptcy protection in April and has since closed 10-20 locations while also negotiating with landlords for better rent deals……Retail Leader says Mondelēz will bring some products to the U.S. that previously had been available only in Europe, including a Milka Oreo chocolate bar and a line of no artificial preservative products called Green & Blacks……A new report from Edmunds.com says women have become a bigger factor in the purchasing of luxury vehicles, with 41% of the luxury purchases so far this year made by women compared to 37% five years ago. Lexus is the brand most impacted—47.5% of its sales so far this year have been made to women, as Acura, Volvo, Lincoln, and Mercedes round out the top five in percentage sales to women.
NETWORK NEWS
FOX has issued a pilot production commitment for a new superhero series called Black Lightning, a DC Comics character. Greg Berlanti and Sarah Schechter are the executive producers for the project and Salim and Mara Brock Akil are writing the television adaptation. Both Berlanti and Schechter are in familiar territory, they are currently behind The Flash, Arrow, Supergirl and DC’s Legends of Tomorrow on the CW……Good Morning America revealed its new set on Thursday at the start of the 8:30 AM half-hour. One unique feature of the new set is that the studio audience is visible and sitting at tables and chairs spread all over the set. One insider described the energy in the new studio as “great”. This follows GMA’s introduction of Michael Strahan as a member of the team on Tuesday……Telemundo got a ratings boost from their coverage of World Cup qualifier between Mexico and El Salvador. The match averaged 2.49 million Hispanic viewers, according to Nielsen. The program was number 2 behind the finale of Un Camino Hacia El Destino, which averaged 2.54 million viewers. The Spanish-Language coverage of the World Cup moves from Univision to Telemundo in 2018……The Tonight Show Starring Jimmy Fallon’s A18-49 rating was better than the competitors on CBS and ABC combined. Fallon’s Nielsen rating was 0.81 in the demo, while Jimmy Kimmel Live! did a 0.41 and The Late Show with Stephen Colbert delivered a 0.39. The shakeup in late night TV is a year old now and it appears that NBC’s Fallon remains the king with a substantial advantage over his rivals...... Nielsen is showing that the Commander-In-Chief forum on NBC had 10.8 million total viewers, making it the most watched program on Wednesday night. The program was hosted by Matt Lauer of the Today Show and featured interviews Hillary Clinton and Donald Trump. High interest in the forum should bode well for the upcoming debates. Meanwhile, Lauer is getting heavy criticism from both sides about his performance. The New York Times said “Mr. Lauer found himself besieged on Wednesday evening by critics of all political stripes, who accused the anchor of unfairness, sloppiness and even sexism in his handling of the event.”
SUVS RULE THE WORLD, NOT JUST THE U.S.
New global market research from Euromonitor International finds that worldwide sales of light vehicles grew 1.7% in 2015 from 2014, driven by the increasing popularity of Sport Utility Vehicles (SUVs), sales of which surged 22% in 2015. SUVs overtook lower medium cars to become the largest automotive segment in 2015, accounting for 22.9% of light vehicle sales globally. Sales of SUVs grew from five million units in 2000 to 20 million in 2015 and are forecast by Euromonitor International to hit 42 million units by 2031—more than doubling in the next 15 years.
“The popularity of SUVs in the early 2000s has precipitated a rush of companies trying to capitalize, with a growing number of brands and new concept offerings like crossovers to appeal to a wider audience,” said, Mykola Golovko, project manager at Euromonitor International. Looking forward, he says an increasing number of consumers in key emerging markets will be in a position to trade up from smaller cars to SUVs. However, a combination of key social changes such as urbanization, smaller households and an ageing population, in conjunction with increasing emissions regulations, have also boosted the fortunes of the small car segment.
Euromonitor predicts that small cars will see a global Compound Annual Growth Rate (CAGR) of 2.9% between 2015 and 2031. That, however, is far less than the projected CAGR of 4.8% for SUVs.
The fastest-growing market for SUVs last year was Thailand, with sales up 56.4%. Portugal was close behind at 54.8%, followed by Italy (48.6%), China (47.9%) and Spain (42.0%).
Of course, the U.S. market for SUVs is already well established, though still growing by double-digits. Automotive News reported that total U.S. sales of pickups, SUVs and crossovers rose 13% in 2015.
“We’ve seen dynamic growth across most segments and markets through 2015, as pent up demand from the 2009 recession was realized,” said Golovko. “However, replacement demand in developed markets will start to slow and global growth will be increasingly reliant on SUVs and emerging markets.”
ACCOUNT ACTION
KFC is the latest big advertiser to launch a review of its media planning and buying account. A change is certain, since MEC, a WPP agency which has handled the business for more than a decade, has decided not to defend.
THIS AND THAT
After more than 40 years of helping businesses grow in Milwaukee, WTMJ (NBC) director of sales Mark LeGrand is retiring, effective February 3, 2017. “If you talk to Mark, you know that he isas passionate about the job today ashe was whenhe was a new rep in the 1970s,” said Joe Poss, WTMJ VP/GM……The National Highway Traffic Safety Administration (NHTSA) has launched an investigation of the 2016 Hyundai Sonata. According to NHTSA documents, at least four owners have reported driving the Sonata when its rear brakes locked—sometimes without the drivers pressing the car's brake pedal……Mazda is recalling 2.2 million cars and SUVs worldwide, including about 760,000 in the U.S. and Canada, because the rear hatches can fall on people and injure them.The recall covers several different models from 2010 through 2016……In a dramatic change of direction, FCC Chairman Tom Wheeler has dropped his efforts to open the set-top-box market to all comers and is instead backing the industry counter-proposal to have access to pay-TV based on software apps, rather than a physical box. But NCTA is still objecting to FCC oversight of programming contracts.
AVAILS
KOIN 6, Portland OR, is seeking an experienced Local Sales Manager to lead an experienced sales team. The LSM is responsible for managing, training, and motivating the sales team, and growing local revenue through new business and existing accounts. A Bachelor’s degree with a minimum of three years of sales management experience including local and digital sales required. Must be well organized, display a professional demeanor, exude high energy and show attention to detail. CLICK HERE to apply, search using requisition # 16-01278. EOE.
Winter is just around the corner! If you would prefer to be selling where summer never ends, WPBF 25, the Hearst owned ABC Affiliate in sunny West Palm Beach is looking for a dynamic sales superstar to join our fantastic sales team. The ideal candidate must have Broadcast TV sales experience and possess the drive and ability to thrive on multiple platforms in a fast paced, highly competitive market. Your creativity, originality, and passion for developing New Business will be encouraged and rewarded! Click HERE to apply. EOE
WCMH TV, an NBC affiliate Media General station in Columbus OH, is looking for an Account Executive to join the sales team. The AE will maintain and maximize core advertiser revenues, develop new business for NBC 4, nbc4i.com, and Me-TV through contact with local advertising agencies and direct local clients. The ideal candidate will have a minimum of three years broadcast sales experience and a BA or BS degree. Qualified candidates may apply at: www.mediageneral.com/careers, job ID: CMH-000265. Background check and drug screen required. EOE.
Raycom Media owned WMC-TV NBC in Memphis, TN, WMC-TV Digital and BOUNCE-TV has an incredible opportunity for an experienced LSM that is ready to move up to our open Sales Manager position in the 50th market. Must be a team leader with a clear focus on New Business and Digital development providing client advertising solutions across multiple sales platforms. Well-developed coaching and team building skills and the ability to plan and achieve sales objectives are imperative. Qualified applicants, CLICK HERE to apply. EOE.
Creative Services Director: WDBJ7, the dominant CBS affiliate in the Roanoke/Lynchburg, VA market, seeks an innovative thinker to lead our promotional efforts. Job one is to enhance our message across all platforms, create opportunities for new revenue streams, develop strong relationships within the building and get involved with the community and its leaders. If you can lead, motivate and grow your people, send your resume and reel to . EOE. WDBJ/Gray Television Group, Inc. is a drug-free company and requires pre-employment drug testing.