gapNews: Majap Snapshot: Ad Share At Conn’s, Fry’s Electronics
SAN DIEGO – Appliances are on the upswing at Conn’s and Fry’s, two major multiregionals that are growing their majap businesses and, in the case of Conn’s, opening up new stores and markets.
That fact hasn’t been lost on LG and Samsung product managers, observed Christine Boersing, home appliance analyst for market research firm Gap Intelligence, who has tracked their ad spend at the big-box chains for the previous two months.
LG, whose ad share was as high as 60 percent in mid-August, was the biggest spender across all brands and product categories, followed by Samsung, which peaked at just under 40 percent in mid- September.
GE’s biggest marketing push came in the first week of September, matching Samsung’s 23 percent ad share, while fourth-place Whirlpool peaked during the last week of the month with a 12 percent share of Conn’s and Fry’s print programs.
gapNews: Retail Shelf Space Diminished For Plasma TVs
SAN DIEGO – A new shelf share study by Gap Intelligence suggests that if, according to a recent unattributed Reuters report, Panasonic exits the plasma market by the end of its fiscal year, the last remaining plasma makers – LG and Samsung – might not be too far behind.
Deirdre Kennedy, Gap Intelligence TV market analyst, pointed out that Gap’s recent retail shelf share studies indicate plasma TVs now “make up a small fraction of current retail HDTV placements.”
“Electronics stores Best Buy, Fry’s Electronics and hhgregg have the largest amount of shelf space devoted to plasma, which has become a niche product over the past couple of years,” she said. “Club stores and mass merchants, with the exception of Sears, have less retail space for TVs and devote a much smaller share of shelf to the technology.”
As for Panasonic, Kennedy said: “Because so much of Panasonic’s 2013 HDTV line was devoted to plasma, the company will have to dramatically increase its LED output in order to remain relevant in the TV industry.”
gapNews: LED Supplants CCFL TV Retail Placements – #TWICE
SAN DIEGO – A recent study of retail LCD TV placements by market research firm Gap Intelligence revealed that most top TV manufacturers stopped producing CCFL-backlit LCD TVs in 2013, and LED-edge and backlit LED models now dominate the marketplace.
LG, Panasonic, Samsung, Sharp, Sony, Toshiba and Vizio no longer produce CCFL-lit models, even in the most entry-level TVs, Gap pointed out.
Smaller manufacturers continue to offer CCF-Llit TVs, but the majority of the market has switched to LED lighting as the production cost of the newer technology has dropped over the past few years.
Plasma TVs continue to make up only a small portion of the TV market.
gapNews: Tracking tablet advertising reveals some interesting insights – Betanews
The PC as we know it is dying, and tablets are unquestionably where the sales are right now. As a result, vendors and retailers are clamoring to pull in the consumers by ramping up their advertising spend and exposure.
In Q2 2013, according to data gathered by analyst firm gap intelligence, vendors and retailers placed a total of 771 tablet ads in print media in the US, up 266 from the same quarter last year, and while 83 percent of the adverts were for Android tablets, Windows devices made a big splash, accounting for 12 percent of all ads. When new products launch, or sales aren’t great — both true in this case — it’s quite typical to see an increase in ad spending in order to reach as many consumers as possible.
Gap intelligence tracks and captures Sunday retail ads in newspapers, free standing inserts and ROP (right off press) for the major retail chains and its findings show that while Walmart took the decision to place less adverts in the quarter — just 12, down from 16 in Q2 2012 — most retailers significantly increased their exposure.
Big-box store hhgregg topped the list of tablet ads by retailer with a whopping 162 adverts in Q2 2013, up from just 12 ads in Q2 2012. Staples placed 140 ads, 89 more than this time last year, and Fry’s Electronics placed 136 ads, up from 61.
While retailers place the advertisements, vendors such as Apple and Samsung pay them to include their brands in the ads each month.
In Q2 Samsung took the lead with a total of 228 ads, up 516 percent compared to last year. Amazon followed with 134 ads. Google, Microsoft and HP combined contributed 110 ads.
Apple, which usually avoids print media, placed 41 ads during the quarter, up from 13 in Q1 — likely in an effort to balance the inevitable sales drop off caused by not introducing any new iPads this spring/summer.
Gap intelligence also recorded tablet print ads by size. 7 inch and smaller tablets accounted for 362 ads, while 10 inch and above featured in 294 ads. There were 115 ads for 8 and 9 inch tablets, the class which saw the largest growth (a 539 percent increase). This is consistent with Samsung and Amazon being the ad-spending leaders, as both firms make models in these sizes — Note 8 and Fire HD 8.9.
Graphics credit: Gurpreet Kaur, industry analyst for gap intelligence
gapNews: Majap Snapshot: Bosch vs. Electrolux – TWICE
SAN DIEGO – While the majap marketplace is rife with premium brands, TWICE research partner Gap Intelligence reports that two Euorpean manufacturers – Bosch and Electrolux – are emerging to take the lead in the luxury appliance segment.
As Gap home appliance analyst Christine Boersing observed, Electrolux, the world’s second largest majap maker by revenue after Whirlpool, beats Bosch 3 to 1 in retail product placement due largely to its mass Frigidaire brand. Gap’s data is based on refrigerator, laundry and range placements at Best Buy, Conn’s, Fry’s, hhgregg, Home Depot, Lowe’s and Sears stores in seven major metro markets as of July 31, 2013.
While both companies compete in an increasingly crowded mass-premium segment, Bosch also plays in the ultra-premium market with its Thermador brand, Boersing noted. And while both companies are based in Europe, they each maintain expansive manufacturing facilities in the U.S.
Interestingly, Bosch’s lower price-point ranges had, until very early this year, been built by Electrolux.
“Higher-end appliances fulfill a niche with homeowners looking to build their dream kitchen with professional-grade appliances paired with user-friendly functionality,” Boersing said. With average selling prices for premium majaps currently set at $3,321, she believes the choice for consumers between Electrolux and Bosch products may come down to brand loyalty, brand recommendation and availability.
gapNews: Smart-TV Functionality On The Rise – TWICE
SAN DIEGO – Smart functions have become less of a novelty and more of an expectation in larger-screen and higher-end TV models, but the pace of smart-TV sales has not yet outstripped add-on set-top boxes, according to recent Gap Intelligence in-store placement research.
The number of amart-TV models continues to increase each year, even though the feature is not advertised as heavily as “regular” TVs, the market research firm said.
Smart-TV retail placements are growing but at a slower pace than set-top box media players, which saw a 144 percent increase in retail placements over the past year (only 52 percent growth without the hhgregg outlier), compared with an increase of 45 percent for smart TVs, Gap said.
“The bottom line is that TV manufacturers are successfully banking on smart functions to encourage consumers to purchase new TVs, while at the same time facing competition from set-top boxes, DVD players and gaming consoles that seek to prolong the life of the regular TV by offering a smart-TV alternative,” noted Deirdre Kennedy, Gap Intelligence TV market analyst.
gapNews: Majap Snapshot: Holiday Advertising
SAN DIEGO – Majap ad efforts heated up quickly this summer as manufacturers and dealers vied for consumers’ attention and dollars.
TWICE market research partner Gap Intelligence tracked circulars from seven leading chains in seven major metro markets on Memorial Day and July 4, comparing refrigerator placements for both holidays. While strong out of the starting gate Memorial Day weekend, advertising reached a fever pitch on Independence Day, with Home Depot’s fridge placements skyrocketing 376 percent between the two weekends.
h.h.gregg was No. 2 in July 4 fridge ads, reported Gap home appliance analyst Christine Boersing, followed by Sears and Lowe’s. Best Buy’s ad efforts were comparable for the two holidays, while Conn’s and Fry’s put greater oomph behind Memorial Day.
On a brand basis, Samsung and LG dominated both weekends, followed by Whirlpool and Sears’ Kenmore badge, and all significantly upped the ad ante on the nation’s 237th birthday.