Archive for June, 2015

The annual Temkin Emotion Ratings asks consumers to rate their recent interactions with companies on a scale that ranges from upset to delighted, and this year numbers were produced for 293 companies in 20 industries.

Industries that generally did well in producing good results among consumers were supermarkets, many fast food chains, retailers, parcel delivery services, and hotels. And although some individual health care plans were generally disliked, as an industry, TV and Internet service providers once again dominated the bottom of the list.

H-E-B supermarkets was seen as the best organization with an emption rating of 77%. Two other supermarkets, Publix and Trader Joe’s, each scored 75%, and Chick-fil-A also scored a 75. USAA led financials with a 74 and another supermarket, low-cost alternative Aldi, scored a 73. Others above the 70 mark were, Hy-Vee, PetSmart and Dairy Queen, all with 72; Walgreens and, each with 71; and O’Reilly Auto Parts, Lexus, Subway, and Hampton Inn, each with 70s. JetBlue led airlines with a 69, tied with Food Lion, Pizza Hut, and BJ’s.

The very worst of the 293 companies was Coventry Health Care with a 26, just ahead of Comcast (for TV service) with a 27, and Comcast again for Internet service with a 30 where it was tied with Time Warner Cable’s Internet service. Time Warner’s TV service drew a 33, while Charter’s TV was at 36 and Cox’s TV was 37%. Other denizens of the bottom of the list included CIGNA, Blackboard software, Aetna, Anthem, Hitachi, Dollar rental cars, Blue Shield of California, AT&T, Verizon and Sprint.

Several companies registered big moves year-to-year, some moving up and some moving down. Up ten points or more: US Cellular, DHL, Residence Inn, Hampton Inn, JetBlue, Hilton, Westin, Fifth Third, Dodge, and Marriott. Falling by ten points or more were Subaru, Buick, TD Ameritrade, Audi, Advantage, True Value, Fujitsu, Hitachi, Best Buy, E*Trade, Time Warner Cable, Blue Shield of California and AOL.

Outperforming one’s industry average is of course an important measure for each company, and only a few made the list of organizations that were at least 10 percentage points above the average for their respective industry. Those big winners were Georgia Power, USAA, TriCare, JetBlue, Optimum,, Lexus, Regions, Kaiser Permanante, and Cablevision. But at least 12 points below their industry averages were Coventry, Spirit Airlines, Fox car rentals, Con Ed of New York, Hitachi, BB&T, Blackboard, Consumers Energy, Sears, Dollar, Bi-Lo, Comcast and Jeep.


Author: admin


Business has been good the past couple of years for sales of major appliances. Data compiled for This Week In Consumer Electronics (TWICE), shows that the nation’s 50 largest white-goods (refrigerators, ranges, washers, dryers and etc.) retailers posted a cumulative 5% increase in major appliance sales in 2014—two percentage points ahead of the total industry and well ahead of the overall flat year for consumer electronics. That was slower than the 9% growth pace for 2013, as consumers finally started making major appliance purchases post-recession, but shows continued growth in the sector.

For the first time, TWICE notes, Lowe’s moved to the top of the list in major appliance sales last year, bumping the long-time #1 Sears to second place. The Home Depot continued in third place, followed by Best Buy and Sears Hometown Stores, which had been spun-off by Sears Holdings. Those top five saw their cumulative sales increase from $19 billion to $20 billion. That $1 billion gain was ten times the $100 million gain for numbers six through 10. By the way, Costco broke into the top 10 for the first time as its white-goods sales jumped 18%.

Home improvement centers accounted for 41.2% of top 50 sales, increasing their share by 1.2 percentage points. Appliance specialty stores dropped 5.4 points to 8.8% of sales. Meanwhile, multiregional consumer electronics and major appliance dealers, led by Best Buy and Fry’s, grew their collective share by 5.4 points to 9.8% of sales.

The biggest decline among the top 50 came at Target. TWICE said its major appliance sales were down 11.5% as the mass market retailer dealt with, among other things, management changes and the continuing fallout from its 2013 fourth-quarter credit card data hack. Besides Lowe’s, Best Buy and Costco, major gainers noted in the report included, Conn’s, Abt Electronics, Nebraska Furniture Mart, Menards and Pac Sales. The research for TWICE was done by The Stevenson Company.

TV still is NUMBER ONE!

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With competition from Netflix and a host of new digital video providers, the television industry has undergone seismic changes over the last five years. But one thing has remained constant: TV is still by far the most effective advertising medium.
That’s the finding of a new study Turner Broadcasting and Horizon Media partnered on with marketing-analytics company MarketShare, which meta-analyzed thousands of marketing optimizations used by major advertisers from 2009 to 2014.
MarketShare’s analysis found that TV advertising effectiveness has remained steady during that time period and outperforms digital and offline channels at driving key performance metrics like sales and new accounts. The study also showed that networks’ premium digital video delivered higher than average returns when compared with short-form video content from nonpremium publishers.
Among the study’s key findings:
MarketShare analyzed advertising performance across industry and media outlets like television, online display, paid search, print and radio advertising and found that TV has the highest efficiency at achieving key performance indicators, or KPIs, like sales and new accounts. When comparing performance at similar spending levels, TV averaged four times the sales lift of digital.
TV has maintained its effectiveness at driving advertiser KPIs over the last five years. In a study using data from a luxury automaker, TV was the only medium to maintain its effectiveness (a 1.5 percent decrease in five years) while the other advertising media—both online and offline—declined more than 10 percent.
TV marketers can optimize their spend by leveraging data sources, including high-frequency consumer interactions like website visits and inbound calls, to improve TV advertising performance.
Premium online video from broadcast and cable networks out-performs video content from other publishers.
“We really wanted to do the study to better understand how TV’s effectiveness—not average rating, but effectiveness—at driving key KPIs for advertisers has changed over time,” said Howard Shimmel, chief research officer at Turner Broadcasting. Shimmel added that when he sees reports about advertisers moving “big-budget shares out of television, we think that might be driven by the assumption that TV’s effectiveness is being diminished.”
On the agency side, Eric Blankfein, chief of Horizon Media’s Where group, said that while many clients want to migrate their budgets to video, “because of that lack of consistent measurement, we’re not sure how effective those dollars are performing in the digital space. So, it was very important from our perspective to start to quantify business performance relative to TV advertising.”
The study found that “TV is the giant megaphone,” said Isaac Weber, vp of strategy at MarketShare. “When you want to get a message out, that’s still really the most powerful means to do it. The way that people view and consume television has changed … but I think the question is less about what has changed with television and more about what are some of the underlying issues with some of these other vehicles.”
Added Shimmel, “We’re not saying that digital is bad, but digital just can’t make up the reach that TV delivers. And digital, used in a way that’s complementary to TV, is a more effective strategy.”
Even the companies involved in the study were surprised to learn of TV’s dogged resilience. “I thought, because we’ve seen a shift in ad dollars migrating from linear to broadband, or just to [digital] in general, that we would see more of an impact on television, but we didn’t. That was eye opening for me,” said Blankfein.
Noted Shimmel, “Five years ago, Netflix wasn’t a streaming service, really. You didn’t have things like Roku, and you didn’t have smart-TV penetration, and you didn’t have tablets at this penetration. So, the fact that TV has held its own under years of such dramatic change was surprising but obviously very pleasing for us.”
The study is the latest addition to Turner’s “dossier of research that supports the strength of television and talks about potentially how TV is working and can be made better,” said Shimmel. “TV really works, and there are ways to make it work better in challenging times.”
Horizon Media will share the new data with clients as it helps them settle on a media mix. “That’s very valuable because the assumption is more data means better insights, and that’s generally true. So, by us continually providing that data, we establish higher credibility with clients and we have a high level of confidence in putting out the media mix that we recommend,” said Blankfein.
While MarketShare’s study bodes well for television, Weber said marketers will benefit most from its conclusions: “By focusing on KPIs like sales, we’re able to make sure that we’re really optimizing a marketer’s budgets.”


Americans love to care for their lawns and gardens and this is the time of year for such outdoor activities to get into full swing. But the economy and weather haven’t been very cooperative for marketers in recent years, according to a new report, Lawn and Garden Equipment in the U.S., 11th Edition, from the research company Packaged Facts. L&G equipment sales peaked at the height of the housing boom in 2005, and have been declining and trying to recover since. The mature market is highly dependent on the economy, housing, household formation, weather, and seasonality.

Packaged Facts says the market stabilized somewhat between 2010 and 2014 with sales declining by a compound annual growth rate (CAGR) of 0.2%. This is an improvement over 2008 to 2012, when sales declined by a CAGR of more than 1%. Total retail sales of the L&G equipment market, consisting of outdoor power equipment (OPE), tools and implements (T/I), and watering/spraying equipment (W/S), were $10.2 billion in 2014. Overall growth has been driven by segments of OPE, which accounted for 68% or $7 billion of total sales. Riding/tractor lawn mowers and zero-turn models in particular have become increasingly popular with consumers. So have electric products, particularly lithium ion battery-powered models that have been expanding from hand-held tools like trimmers and leaf blowers to bigger machines such as lawn mowers and snow throwers. The battery-powered segment is expected to continue growing as battery technology is improving rapidly to deliver power and performance equal to gas-powered products.

Leading players are relatively few in this market. Few marketers compete across all categories, and leaders differ by category. Husqvarna (WeedEater, McCulloch & etc.) and MTD Products (Troy-Bilt, Cub Cadet & etc.), each with multiple brands, remain the largest marketers of OPE. TTI and Black & Decker are leaders in electric OPE (corded and battery.) Ames, through multiple brand offerings, is the leader by a wide margin in T/I, and is a major player in some W/S products.

Retailing is even more concentrated than marketing in this market. Home Depot and Lowe’s, plus Walmart and Sears/Kmart dominate sales of L&G equipment in the U.S. They along with other mass retailers control 75% of total market sales and at least 80% of OPE sales. Private label brands play a big role for Lowe’s and Home Depot, plus Sears has its own Craftsman brand. Packaged Facts notes that consumers also shop the Internet aggressively, mainly for information and pricing on OPE.