Lee
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Post by Lee on May 11, 2004 23:16:36 GMT 1
Marketing being the overall efforts by a manufacture to get a customer to buy a product. Impulse buying probably accounts for up to fifty percent of retail sales. Retail stores and manufactures count on it to increase their profits. The model manufactures, for the most part, do NOT understand the concept of mass marketing or impulse buying. Most manufactures put their name, the product name and very little else on the box. If you want to learn more about that little model that you are buying, you are just going to have to search for the information. I have come across a product made by Galoob. Galoob seems to understand very well both mass marketing and impulse buying by the general consumer. Other companies like Wiking, Herpa, Busch could do well to take a few lessons from Galoob. Galoob makes Micro Machines. The model is displayed in a cardboard box with a clear top/front window. The model is mounted on a mirror like surface mounted an angle to show it off in the box. The box has a cardboard extention so that it can be hung from a rack. The box itself is a work of art in merchandising. On the front it says Collector Edition, Corvette series 1, limited production of 20,000. On the back it lists all 15 Corvettes are in this series. It gives the name of the particular model in the box, which Corvette generation it belongs to, the years of that generation, the top speed, the engine displacement, the horsepower and how many of that type were produced. It also gives some general information about that generation of Corvettes. There is enough information to make the customer feel like they are knowledgeable about the model they are buying. In some ways the model is of second importance. It may not be the best Corvetter model made but you know more about this model than you do most. I love the limited to 20,000 production. Most manufactures would just be happy to sell that many of any model they made. To state that the production is limited makes you want to buy it now and not wait until next week. Next week it may be gone and there will not be anymore. It's a collectable!! ;D
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BillC
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Post by BillC on May 12, 2004 14:25:22 GMT 1
Lee:
I think you're talking about merchandising. Merchandising is a factor in marketing, but it is how the product is presented to consumers and heavily influences the design of packaging. It also governs the placement of products in a store's floorplan to encourage impulse buying.
In the first place, even in a blister pack, scale vehicle models are unlikely candidates for impulse buying. For one thing, they are too expensive. A 95-cent Hot Wheels car is a good product; it's cheap and likely to catch the eye of a small child. At the checkout stand, it's a good item to be selected by a parent as a treat. Even a $3 Ertl NASCAR collectible is probably too expensive for this and an $8 CMW vehicle is out of the question.
In addition, placement on the impulse racks isn't free. Manufacturers and distributors pay for placement on impulse racks and endcaps at the checkout lanes. Even the cheapie video racks are usually placed and merchandised by the distributor.
Two things have driven the change in packaging: First, the move away from shelves, bins and racks to pegged merchandise displays on the part of the larger retailers. Second, the demand for packaging that is large enough to discourage shoplifting.
With the change in packaging, it only made sense to use the space available to promote sales of other products. This is nothing new. Even when I was a kid, larger toy boxes promoted other products from the manufacturer and catalogs were often packaged with the toy.
In Europe, things are a bit different. Merchandise packaged in blister packs is regarded as a toy. This is one reason why Brekina, Busch, Herpa, Rietze and Wiking continue to use individual boxes for their scale models. Some of the manufacturers sell merchandising racks for their products, a practice that would be very expensive in the U.S., as retailers not only don't buy the racks, they charge big bucks for floor space and often require the distributor to do the restocking and maintenance.
BTW: When I was in Europe some years ago, Wiking models didn't even have individual packages. They were shipped in bulk to retailers and sold from plastic trays displayed on a counter. (A bit of trivia: this is how Otto Duve came up with the name Praline for his model line. Collectors would gather around the newest Wiking shipment and pick their models right out of the package, just like selecting a chocolate from a box of candies.)
All of the German manufacturers maintain consumer-oriented websites and publish very nice catalogs and brochures that are distributed by retailers. Over here, it's common practice for distributors to charge retailers for any catalogs beyond a counter copy. Due to the costs of shipping printed material overseas, I can see the imposition of perhaps a small charge, but I have seen Wiking catalogs priced as high as $5.00, plus shipping.
As the German companies derive 90% of their revenue from their local market, it makes sense they would conform to the buying tastes and habits of their best customers. Especially when moving to a different package style is unlikely to improve their distribution or exposure and could hurt perceptions of their products in the home market.
One last important difference: Those Galoob cars are toys designed for play, with no concern about subsequent storage or display. Scale models from the German manufacturers are designed for collectors who may or may not display them outside of the packaging and are likely to want a resuable box for storage.
When it comes right down to it, you are comparing a well-promoted mass-market children's product designed for sale through large retail chains to an niche product for older buyers distributed through specialty retailers. Both the marketing and merchandising approached have to be different.
Bill C.
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BillC
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Post by BillC on May 12, 2004 14:57:10 GMT 1
I love the limited to 20,000 production. Most manufacturers would just be happy to sell that many of any model they made. To state that the production is limited makes you want to buy it now and not wait until next week. Next week it may be gone and there will not be anymore. It's a collectable!! ;D Lee: There are plenty of limited runs. Look under the word "Sondermodelle" at some of the German manufacturer websites. I have some pieces in my collection that are from runs as short as 500 pieces and special runs of less than 2000 are common. In fact, Busch will be giving away a Smart finished in a unique copper-colored lacquer at its open house in September. This model will be one of only ten to be produced. Now that's a limited run! IMHO: Calling a run of 20,000 "limited production" is stretching the boundaries of collectability. OTOH, there are plenty of people who will fall for it and there are definitely collectors of Micro-Machines. Be interesting to see how long that "collectable" Corvette lasts unsold.
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skunk
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5th B-day
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Post by skunk on May 12, 2004 20:19:12 GMT 1
I like the fact that the H0 companies don't treat me like a retard. Bright coloured boxes and "limited" editions insult my intelligence.
That said, I do like it when a H0 manufacturer includes some interesting info about the car; while this may not really be worthwhile on a VW Golf, it is interesting on the rarer stuff.
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Lee
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Post by Lee on May 13, 2004 0:22:08 GMT 1
Lee: I think you're talking about merchandising. Merchandising is a factor in marketing, but it is how the product is presented to consumers and heavily influences the design of packaging. Bill C. I was going to call the thread merchandising to start with, but after looking in the online Webster's, it was changed to marketing. I stand corrected.
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Lee
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Post by Lee on May 13, 2004 0:42:41 GMT 1
Lee: In the first place, even in a blister pack, scale vehicle models are unlikely candidates for impulse buying. Bill C. I strongly disagree. Not being preinformed about what is coming until this website, I would and still do a lot of impulse buying. I have two of Busch's MB roadsters out of the '20's, that were not cheap, bought strictly on impulse. Adults do impulse buying as much if not more than children. And when adults buy on impulse, they spend a lot more money than children do. All I am saying to start with is that I would love a little information about the vehicle that I am paying big bucks for. Just what did the two MB roadsters do other than look great!
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Lee
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Post by Lee on May 13, 2004 1:25:57 GMT 1
"Be interesting to see how long that "collectable" Corvette lasts unsold. It didn't. It is on my desk bought off ebay for someone else. ;D My comments on the limited run was very much tongue-in-cheek
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stanhas87
87thScale addict
1978 Dodge Monaco CHP
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Post by stanhas87 on May 13, 2004 2:50:15 GMT 1
Dear Sirs:
One of the reasons why Tomica was uncessful in the US. They were scaled models, very well done; consequently,they cost $1.80 ( 1970's dollars) as opposed to .99 cents or so of a Matchbox or Hot Wheels. Consequently, the mothers who bought toys for their children would get the Hot Wheels instead.
In all, the Corvette Series from Galoob sold quickly and they are a bit difficult to find now and I consider these models, not toys. Too bad that they were made on an anachronistic 1/82 scale.
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Post by cfesmire on May 13, 2004 12:48:24 GMT 1
Marketing is getting the information about ones product to the public. Bill is right, merchandising is a marketing tool, as is advertising. I've found that most folks that produce a high quality product, are not as good at marketing the product as they are at producing it. I happen to have this problem myself. This is why Madison Ave. types have done so well. Larger companies go to those best suited for the job of marketing and stick with what they do best and are usually more successful than those that try to do everything in-house. Witness the situation Gateway finds itself in today. (yeah the cow's cute but it's not selling computers) Here in the U.S., we've become a society of specialists. Visit a doctor today and you are likely to be referred to a specialist. When I first started in my business, we did it all and now there is a sub contractor for every aspect of the construction business. So I have become numb to the packaging and advertising and try to look through them at the real quality of what it is I wish to buy.
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BillC
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Post by BillC on May 14, 2004 9:39:26 GMT 1
I strongly disagree. Not being preinformed about what is coming until this website, I would and still do a lot of impulse buying. I have two of Busch's MB roadsters out of the '20's, that were not cheap, bought strictly on impulse. Adults do impulse buying as much if not more than children. And when adults buy on impulse, they spend a lot more money than children do. All I am saying to start with is that I would love a little information about the vehicle that I am paying big bucks for. Just what did the two MB roadsters do other than look great! Lee: What you are talking about is "impulsive" buying, not what marketers and merchandisers would term "impulse" buying. You are pre-disposed to buying scale vehicle models and impulsively bought extras. I am the same way when I walk into a hobby shop; chances are I am going to walk out with a vehicle model I did not plan to buy when I walked in. Impulse buying is the suburban housewife who had no intention of buying a miniature vehicle, or any other such items (batteries, magazines, candy displayed on such racks) when she came into her favorite supermarket. Merchandising and marketing are wonderful tools and Chester is right; they are best left to professionals who can look at the product with a fresh eye. People often put these folks down, but they can do amazing things, including redefining a product for an audience the manufacturer never considered. However, these services are not cheap, which is why you see fewer and fewer new brands on the shelves. A Mattel or Hasbro can afford to put out millions of dollars annually in addition to funding their own in-house programs. Even Herpa can't afford a similar program. That being said; I tend to agree with one of the points raised here: it would be neat to have some information included about the model's prototype and, in the case of a "fallen flag," information about the brand. To be fair, though, there is often additional information about the models available at the company's website. Most of the new Busch models have some good information, as do the Herpas. Wiking has the longest descriptions, but Wiking persists in maintaining a German-only site.
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Post by Marc S. on May 14, 2004 11:05:11 GMT 1
chances are I am going to walk out with a vehicle model I did not plan to buy when I walked in. Bill: Only one? ;D Marc
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Lee
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Post by Lee on May 15, 2004 2:10:39 GMT 1
I like the fact that the H0 companies don't treat me like a retard. Bright coloured boxes and "limited" editions insult my intelligence. A lot of HO companies are full of brightly colored boxes and limited editions and have been for years. They can insult my intelligence all they want as long as they keep making what I want. ;D
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stanhas87
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1978 Dodge Monaco CHP
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Post by stanhas87 on May 15, 2004 2:25:53 GMT 1
Dear Lee:
See, you are describing 1/64 scale here,and why it appeals to me: it may insult......... but it produces what I want ( among a lot of Corvettes,Camaros,Vipers,but still). Further, 1/64 manufacturers do produce HO vehicles that no one produce as well..........................
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BillC
87thScale addict
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Post by BillC on May 15, 2004 4:56:38 GMT 1
Actually, these days, I'm lucky to find even one. Since I am not a big fan of resin or white metal, I have far more models I might want than any store in my area. And I usually have the new models before they do. I need for the Aikens to open a branch of Truck Stop Models in Houston.
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Lee
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Post by Lee on Jun 29, 2004 1:39:59 GMT 1
Here is a new low in 1/87 vehicle marketing. Ebay.com item #5905201412
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