TV Newest Launchpad For Products Manufacturers Turning To Retailers Such As Qvc To Get Word Out

When Kellogg Co. launched its new Cocoa Frosted Flakes last March, the company didn’t unveil its product in a supermarket cereal aisle.

Instead, Kellogg’s took its new product to television retailer QVC, where it promoted the crunchy chocolate cereal during a two-hour morning program and sold out of 3,000 boxes in 10 minutes.

“We showed the cereal, talked about it, tasted it,” said Kellogg’s spokeswoman Karen Kafer. “What better publicity can you get?”

With the costs of traditional advertising and marketing soaring, many companies consider television retailing as a viable launch pad for new merchandise. The attraction of this relatively young medium is a low overhead and huge viewership potential that can’t be matched elsewhere.

“TV retailers are a great alternative to sell and publicize to consumers, especially when you can reach millions of people virtually free of charge,” said Al Ries, a marketing consultant at Ries & Ries in Great Neck, N.Y.

Just a few years ago, television retailers like QVC and Home Shopping Network were best known for their offbeat merchandise. Super mops and car cleaners were more likely to be found than Fendi shoes and IBM computers.

While these home shopping stations generated millions of dollars in sales, most mainstream manufacturers steered clear, continuing to offer their merchandise in traditional retail outlets. That, however, is changing as more companies test the benefits of selling on QVC and HSN, which both reach over 60 million homes through cable service operators.

In this era of downsizing and tight profit margins, cheap publicity is a highly sought-after commodity. There’s no fancy lighting, scripts or special effects in television retailing, just the product and the hosts promoting it.

“The stigma of selling products on television is disappearing,” said Mark Bozek, executive vice president of broadcasting at St. Petersburg, Fla.-based HSN. “We now sell a better quality of products and that’s helped our credibility.”

Microsoft Corp. launched two of its products on QVC. In 1995, 17,000 units of the much-awaited Windows 95 software were sold in three hours. Last August, 6,000 of its new Actimates Barney, an interactive plush doll, sold out in 36 minutes.

Also on QVC, Eastman Kodak launched its Advanced Photo System technology last year, selling nearly $1 million in film and cameras in 24 hours.

On HSN last fall, the video for the hit movie “Independence Day” was offered before it became available in retail stores. About 80,000 sold out in five weeks.

While television retailers benefit from the initial sales of the product rollouts, traditional merchants - like discount, food and department stores - also gain from publicity of merchandise that will eventually reach their stores.

“Many of the products launched on TV end up being very popular once they hit stores,” said Fred Siegel, senior vice president of marketing at West Chester, Pa.-based QVC. “Most people who watch us aren’t buying when they see it on TV, but will make the purchase elsewhere.”

Companies also use television retailers to test market their new merchandise. Today, candy maker M&M/Mars is unveiling some of its new licensed products, including apparel, collectibles and plush toys on QVC.