C I A R E P O R T C o m p e t i t i v e I n t e l l i g e - - PDF document

C I A R E P O R T

C o m p e t i t i v e I n t e l l i g e n c e A n a l y s i s

Notes on Competitor Presentation – July

Bill Green Got Promoted

We have seen Bill Green before, on HSN’s clearance network subsidiary, America’s Store. To a degree, America’s Store can function like a minor-league farm team for HSN show hosts. We have previously noted another America’s Store host, Alan Skantz, as he was selected to host HSN coin shows. Now, Bill Green has his big break. He now serves as a full-time HSN host, selling jewelry, housewares, and even women’s apparel. Bill started out as the Director of Quality Assurance in HSN’s jewelry purchasing department. After three years, he was selected as an America’s Store host, where he has appeared for the last five years. Bill isn’t alone. QVC’s Jayne Brown was a QVC Apparel Buyer for several years before trying out at an

• pen audition for new show hosts.

Gem Geography on HSN

When devoting a 1-hour show to a specific gemstone, QVC and HSN will often spotlight the country of

• rigin by showing video footage of scenic locations near the mining area, or footage taken deep within

the mines. And because we are often geographically illiterate, our competitors will sometimes further build interest by showing us exactly where the heck a particular country is located. In the sample shown below, from a multi-show event called “Gems From Africa” an African map is incorporated into the set. B-roll graphics begin by showing the African continent. Then, the featured country for the show, (in this case, Mozambique) is named, and highlighted on the map. The graphic then zooms in on the targeted country. To see video of the Tourmaline & Rubellite ring TS presentation during the Gems From Africa event, click the link at right.

Coin Reflection

We do not know if it was intentional, but the position of this Franklin Half Dollar set created a reflection

• ff of the polished display table during an HSN coin show. It added visual interest to the presentation.

To see video samples of competitor coin shows, click HERE.

Showing Documentation On Air

In addition to the often seen comparison of identical diamond and CZ pieces, HSN will also sometimes show an actual appraisal document of the comparative diamond piece, to back up the dollar value being quoted. This practice may help in building the credibility of such claims.

To see video of the CZ bracelet shown above, click the link at right.

Which One is the $15,000 Guitar?

In a move similar to a diamond and CZ comparison, HSN compared an acoustic guitar, autographed by classical and flamenco guitarist Esteban, selling for $88.25, alongside Esteban’s personal handmade guitar, worth about $15,000. If we were to offer guitars that resemble a Fender Strat or a Takamine acoustic, this HSN comparison makes us wonder is we could carefully word a similar comparison for our on-air presentations.

(Usually Esteban appears on HSN to simply play his music while the host sells his CDs. A few years ago, HSN sales of his CDs managed to place him in the number 1 slot on the Billboard charts…in his specific category.)

This was only the second occasion we have seen a guitar presentation on HSN over the last two years. As a Today’s Special, HSN sold out of 8,500 units, earning $750,125.00.

To see this guitar TS presentation, click the link at right.

Selling Jewelry By the Numbers

Prior to gift-giving occasions, such as Mother’s Day or Christmas, we can expect QVC to run yet another edition of their multi-hour show “101 Jewelry Gift Ideas”. For these gift shows, QVC actually numbers each of the 101 pieces, and shows the number on-screen.

Tom Gets a Makeover

A frequent HSN electronics vendor spokesperson, Tom Piggott, was apparently given a dramatic makeover last month by someone who knew what they were doing. Before After However, when seen on HSN broadcasts this month, we observed that Tom has reverted back to his

• ld look

Dressing for Yard & Garden Shows

When dressing for a tropical gardens show, QVC host Dan Wheeler is allowed some creative license. However, some might consider the lei to be a bit much.

To see video of this Yard & Garden TSV, click the link at right.

Selling on Sofas, Easy Chairs, and Coffee Tables

As an alternative to retail display tables, we see HSN and QVC also incorporating home furniture into their sets…and using it. In the examples below, we see camcorders sold from a sofa, a home theatre system sold from an easy chair, and jewelry sold from a coffee table.

To see video of a jewelry TSV presentation on this set, click the link at right.

What’s in It?

In a WeightPerfect presentation on HSN, in which meal and snack replacement shakes and bars were presented along with calorie-burning capsule supplements, the camera took a close-up of the label on the capsule bottle. Such an informative step not only answers the question, “What’s in it?”…but also helps exhibit an attitude of full disclosure…, which in turn helps to build credibility, and a sense of trust.

To view a presentation of WeightPerfect products on HSN, click the link at right.

A Past and Present Promo on QVC

In promos for QVC’s twice-annual 24-hour Gold Rush events (Alaska Gold Rush in the Summer, California Gold

Rush in the Winter) QVC will often dress their models in period costumes, wearing jewelry pieces from the

coming show. The shot will then fade to a second scene in which the same model is wearing the same pieces on the same set…in modern attire. This promo idea might work with our long-time Shop At Home show theme – Generations 1912.

An Atmosphere of Elegance

It isn’t unusual to occasionally notice a barely discernable soundtrack playing in the background during an HSN or QVC broadcast. A soundtrack selection for a fitness show might be more energetic, while the music underneath a jewelry show might be a more subdued instrumental. Taking this practice a step further, a recent Signature Club A cosmetics show was sometimes accompanied by an in-studio pianist. Of course, her volume was very subdued in the audio mix, to avoid distraction from host and vendor comments, and her play was mostly limited to the segments preceding a show break or coming back from a break. It added an ambiance of elegance.

To view (and hear) video of this Signature Club A cosmetics presentation, click the link at right.

Sell the Sizzle

During an HSN or QVC cooking show, you may occasionally notice that our competitors sometimes place a mike on the counter top, when using a fry pan or grill. They want you to hear the sizzle. We have heard the old sales maxim – “Sell the sizzle…not the steak.” In this case, that expression can be taken literally. The sizzle of food cooking is a sound that creates strong sensory associations.

To play video of this TS presentation, click the link at right.

P.S. – In the five years that Ultrex cookware has been on the air at HSN, the network has sold more than 27 million pieces.

Showing the Ugly Alternatives to a PDA

QVC and HSN like to show the disorganized and unwieldy alternatives to owning a PDA. In the QVC presentation of a PDA from Handspring, shown below left, host Bob Bowersox displayed his former DayTimer notebook, which was a mess of note pages, calendar pages, a scribbled address book, and an assortment of loose Post-It notes. He then compared this ugly alternative to his PDA, into which he had transferred all the info from his DayTimer, after easily typing it into his PC. In HSN’s presentation of a Palm m500 as a Today’s Special, they compared the compact ease of a PDA to a cluttered desk, over which they had scattered a calendar, a note pad, an address book, a business contacts card holder, and To Do lists, etc. There’s nothing like visual aids.

To view QVC’s presentation of the Handspring PDA, To view HSN’s presentation of a Palm TS, click the link at right. click the link at right.

“The Shannon Dance” on HSN

Whenever HSN schedules an electronics show, their most frequent “go to” girl is Shannon Smith. Shannon is a former entertainment news reporter and ValueVision host who has built electronics expertise over the last few years at HSN. Yet, she manages to explain everything in simple terms, using an everyday conversational tone. Her off-camera voice is her on-camera voice. She talks as if she is addressing just one person. Yet, she infuses enthusiasm into her one-on-one conversational style. She seems genuinely excited about every new electronics gadget that comes down the pike. Witness her presentation of a DVD and CD Dolby digital home theatre system. In a demonstration of the CD sound (for which they oddly chose an accapella selection) Shannon was so moved by the quality of the sound that surrounded her on all sides that she began to dance…but not well. We believe that her enthusiasm was real because it apparently made her almost oblivious to what everyone else was witnessing. Off-camera the production staff was telling her – “Please stop doing “The Elaine Dance”. (This is a reference to a Seinfeld episode. Ask around. Someone will explain.)

To witness the unique “Shannon Dance”, click the link at right.

(P.S. – During bedding shows, Shannon will usually jump up and down on the mattress, as if it were a trampoline.)

HSN and QVC Hosts Eat for a Living

Whether they are presenting a kitchen appliance, a cookware set, or a weight-loss recipe cookbook,

• ur competitor kitchen hosts make it a habit to sample the dishes created by these gadgets, pans, and
• recipes. And after taking a bite, the host will invariably make a sound of sensual pleasure that would be

inappropriate elsewhere, then rave about how delicious it was. Over the space of a two or three hour kitchen show, that can add up to a lot of bites. No need to go out for lunch afterward…I’ve already eaten, thanks. Occasionally a mischievous HSN producer will collect brief clips of these food-sampling moments as the show progresses, and compile them together for play at the end of the show. These compilations have a comic effect because we believe the host might be embarrassed that these cumulative shots make her look as if she is pigging out. On the other hand, these clips leave the impression that you can create a lot of delicious food in your own kitchen if you order these products.

To view this accumulated food consumption clip, assembled by a mischievous HSN producer, click the link at right.

Showing Off on a Lexmark

In showing off the resolution and capabilities of the Lexmark multi-function printer, copier and scanner combo units, QVC and HSN have adopted the practice of placing various objects on the scanner surface, and showing us the results. In the example below, one of QVC’s NASCAR die-cast cars (an example of cross-selling) is scanned to produce an image with some three-dimensional qualities. However, their most impressive results are achieved when they select smaller objects, which allow the lid on the Lexmark’s glass document plate to lie closer to a closed position. Printouts of the scanned flower, and the scanned pocket accessories shown below possess near photo-realistic detail and color.

To see QVC’s Lexmark presentation, click the link at right.

HSN used the same presentation gimmick to show the detail of a wristwatch scan displayed on a PC screen.

To view HSN’s Lexmark presentation, click the link at right.

Perhaps we could think of something else that could be placed on a Lexmark copier for a detailed scan.

A Peek at HSN’s Gear

Occasionally, a long shot at the end of a show will give us a glimpse of HSN’s studio equipment.