Direct Response Marketing

Retail Outlet: How the DRTV Model Can Help You Go to Retail More Profitably

1 Dec, 2005 By: Donald L. Potter Response

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Last month, Retail Outlet reviewed the steps taken by traditional branding marketers to bring their products to store shelves. This month's column will examine the application of the DRTV disciplines as a means of achieving faster and more meaningful results at the retail level.

Donald L. Potter

The beauty of the DRTV model is that it is an ongoing test market that, unlike traditional test marketing, has the ability to produce a profit from the beginning. In addition, the knowledge gathered from marketing direct-to-consumers helps improve sales results and profitability as the advertising effort expands.

For years, most DRTV products had a life cycle of maybe a couple of years, with a possible revival later. However, these products usually did not have the retained awareness or perceived value of a brand. Conventional thinking is changing due to recent moves (by some) to retail and the advent of brands using the DRTV model as a means of opening retail distribution.

Retailers are showing respect for the power of DRTV. This is narrowing the gap between marketing disciplines. DRTV is no longer the enemy competing with retailers for the consumers' dollars. It is simply another distribution channel, with the added benefit of being able to funnel new products and new spending through stores nationwide.

Life for most DRTV products begins with a search for something that is unique/different, demonstrable and responsive to advertising, not available through stores, has a high selling price-to-cost ratio, is attractive to a broad base of consumers and delivers meaningful sales volume resulting in a favorable media efficiency ratio (MER). This initial screening process also works for those with retail aspirations.

If retail distribution is a future possibility, the branding effort must be considered in all pre-planning activities. For example, the name, package design and suggested selling price should be suitable for retail once DRTV success is achieved. Changing them later is tantamount to introducing an entirely new product to the channel rather than taking advantage of the awareness already created through advertising. Consistency here reduces costs and improves results.

Getting to market fast has always been important for DRTV products. This same sense of urgency should exist for crossover products, but the brand must first establish its credentials. This requires executing the DRTV steps properly: test, tweak and rollout with enough advertising weight to generate momentum in order to own the category.

The leading retailers want winners. Being No. 1 in a category is the best way to arouse their interests. However, waiting too long to make the move to store shelves leaves room for another product to slide in first.

Planning for the move to retail, even before going into a DRTV test, is the sure-fire way to be victorious on both fronts. It's like going hunting with a double-barreled shotgun. One barrel is for DRTV, and the second is for retail. Load both barrels. Fire the first, and wait for the right time to pull the trigger on the second. Then keep an eye on all potential retail channels to determine when it's time to take the next action.

The longer a product succeeds in the DRTV space, the better prepared it becomes for a retail transition. The message and the offer are refined, optimal media weight and daypart mix are determined, proper price point are confirmed, and upsells as well as continuity programs are maximized. This data can be blended into the retail program to make it work from the beginning. So be ready, but not hasty.

Remember, there will be a period of time when the DRTV campaign is still the primary source of income before reaching critical mass at retail. Once the emphasis is reversed, the DRTV model should still play an important and ongoing role in a successful retail marketing effort for years to come. And one final thought: when all is said and done, turnover at the retail level is the best continuity program of them all.

Don Potter is a 45-year veteran of the advertising agency business, a frequent lecturer and the author of the book "The 50+ Boomer: Your Key to 76 Million Consumers." He can be reached at (818) 728-8266 or via E-mail at
don.potter@sbcglobal.net.

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