ChannelMedia Retail Edition Your source for channel news and research
FEBRUARY 2004   
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Welcome to 2004
By ChannelMedia Editor Keith Newman

Retail Digest Top 10: Changes at the Top: MicroCenter, REX, Trilling, Garson, Shacter and Freeman - CompUSA Partners with ProtoCall - Apple Stores and Products in the News

CES Round-Up By ChannelMedia Staff

RetailVision Spring Welcomes Asian Vendors & New Digital Home Category By Pete Prentice, Event Director, RetailVision
The LCD TV Market

ARS Research: 17-inch Notebooks are Taking Retail By Storm by Matt Sargent

Product Spotlight: Aiirnet's Hot Spot in a Box By Wireless Watch

NPD — Top Selling Software
Q&A with Macromedia’s Michael K. Menegay, Senior VP of Worldwide Channels

Changing Channels: What's Important These Days By ChannelMedia Staff
 
 



NEWS

Welcome to 2004 By ChannelMedia Editor Keith Newman

Welcome to 2004. First I would like to say we are pleased to announce the launch of our new look and hope that you find it pleasing to the eye and more user-friendly. As always we appreciate and respect your feedback so let us know what you think.

So now what? Hopefully, you're still enjoying traditionally strong January sales and at the same time busy re-ordering that product that flew off your shelves the final days of the holiday spending season. Only now you have time to lift your head up, take phone out of your ear and schedule a back massage to alleviate all the soreness from all of those pats on the back from your boss for a job well done. Okay, back to reality and the matter at hand, 2004. For while a late spending surge the last week of the season saved many a merchant, most only performed modestly better than the year earlier. This is somewhat surprising given all the economic data supporting a sustainable recovery, an increase in consumer spending, a stock market boom and the general re-emergence in job growth the second half of the year.

Briefly reviewing the multitude of stories on the Holiday Season, the key winners were those who strongly braced web-based selling and not the right products and procedures for delivering the web shopper. Also, CE remains very hot as a category and there are numerous products and categories to mine.

So, back to planning for 2004. Here are some choice suggestions (more are available by request!).
  1. Online: Now or Never. It appears that the online shopper is not a fad so either get serious, partner with someone like Amazon or eBay, who are both looking to go broader and deeper in assortment and in their respective role as an outsource partner or skip this part of the business. A half-hearted effort in ecommerce will yield less than a fair return. Rather, the bar is continually being raised. Either find a way to make this business work or eject and focus on other areas.
  2. Selling Small Business. It starts with an attitude and ends somewhere around the operational efficiency and marketing excellence of players like CDW and Dell. But the other reason these two examples are beating the market growth figures is because they are focused on delivering what this market wants and needs. What they miss is hand holding and on-site service and support. Also, for the timid purchasing manager or owner, a phone call from a local operator with a well-known address is a very potent competitor.
  3. Find A Room in the Connected Home. The Connected Home is a hot category. Wireless networks, VOIP and digital entertainment are all going to grow for the next five years. These are categories with hot products, strong margins and, if you know what you are doing, a strong service and annuity revenue stream to be attached. The supply chain for building, selling, and installing these solutions is being formed right now. Find out where you want to play and dominate!
  4. Here's one final recommendation that's quite a bit easier to accomplish: Attend Spring RetailVision - Duh! Tons of Retailers, Vendors and Market Watchers, all of who can provide insights, tools or support for one of the above key initiatives do. Quite simply, there remains no better Event to do business. Of course, I'm a bit biased, but twice a year this statement is validated.
  5. Here's something free: Subscribe to ChannelMedia. If you have changed your e-mail, want it delivered to a separate address or want to share it with someone in your department or a friend, click here.

As always, ChannelMedia welcomes your input. Send comments to me at kanewman@sbcglobal.net and put ChannelMedia in the subject line. To subscribe, click here. Please forward this newsletter to other people who might enjoy this information.





Retail Digest Top 10

1. Micro Center Makes Changes at the Top.
Micro Center announced that Richard M. Mershad, a twenty-year veteran of the company, has been named President, in addition to serving as President and CEO of Micro Electronics, Inc., the parent company of Micro Center, IPSG, Redemtech and WinBook. Prior to being named President and CEO of Micro Electronics in December, 2002, Mershad has had a long history with Micro Center. In fact, he was the ninth employee to join Micro Center when he began his career with the company in 1982 as an on-floor salesperson. From when he was hired in 1982 until1985, Mershad advanced from Department Manager to Store Manager and Product Manager. From 1985 - when he was named Vice President - to 1992, Mershad played a critical role as head of merchandising and sourcing, where he was instrumental in the physical design and implementation of Micro Center Stores' departmentalized approach to selling computer products and services and developing key contacts with suppliers throughout the world. While serving on the Executive Committee for Micro Electronics from 1993 to 2002, Mershad also founded WinBook and served as its President. "Micro Center is achieving one of the strongest periods of growth in our twenty-four year history, and initiatives put in place over the last year are laying the groundwork for even greater success in 2004," said Mershad. "Now, with the record-breaking results from our After Thanksgiving Sale behind us, and the Christmas selling season immediately before us, I'm confident that Micro Center is poised for another big step forward," said Mershad. Thomas Fritz, who previously served as President of Micro Center, resigned from the company to pursue interests in another industry. "We want to express our gratitude to Tom for his many contributions to our success and his determination to work diligently to make sure that we fully realize the vast opportunities before us. We wish him every success in his new venture," said Mershad.

2. In other major personnel moves across the Retail Landscape, DataVision saw the departure of two key executives Ahron Shacter and Jackie Trilling. Jackie Trilling left to assume the role of Vice President of Elephant Wireless, a 60-store chain of cellular phone and accessories. Trilling will also work as VP, Business Operations and Marketing at Newtech Guru, a leading consumer electronics e-commerce store. Trilling had served as Director of Marketing for New York City's DataVision. 10-year DataVision executive Ahron Shacter hops across the street to join RCS as head of computer buying operations and marketing. But, according to DataVision President James Garson the New York City powerhouse is on a roll having reported near-record sales for 2003 and a significant increase in its online business. Garson has also hired Dean Dacian, one of the top MarketSource Apple Sales Reps and a new buyer, Alan Kaufman. Garson said he has also added 14,000 square feet to their nearby store to be used to expand web operations. The company also hopes to open a new store later this year.

3. Leading online commerce executive, Dan Freeman, recently resigned from Zones, Inc., to pursue other opportunities.

4. Circuit City said same-store sales fell 2 percent in December, as growth in new tech products like LCD and plasma televisions offset weaknesses in the more traditional areas of home audio and video game hardware and software.

5. CompUSA, Inc., one of the nation's leading Retailers and Resellers of technology products and services, announced today that it has signed an agreement with Protocall Technologies, Inc. of Commack, New York, to install its SoftwareToGo(R) electronic software delivery system in all CompUSA stores nationwide. CompUSA will be the first retail chain in the country to utilize the SoftwareToGo technology as a new in-store distribution channel for software sales. The first installations, at 25 CompUSA locations in the Dallas, San Francisco and Seattle market regions, will be completed in December. The remainder of the chain will receive their SoftwareToGo systems in early 2004.

6. Similarly, Protocall has entered into a licensing agreement with Microsoft Corporation to offer selected software products through Protocall's SoftwareToGo® on-demand software delivery system which is being deployed at CompUSA. Microsoft plans to offer both new release and existing titles through the system. "We have studied the benefits of on-demand availability of our products in the retail environment and view Protocall's system as a timely solution that could become an important part of our distribution network," said Steve Schiro, Microsoft, Corporate Vice President, Retail Sales and Marketing. "Protocall's system offers a new method of distribution that holds the potential of moving beyond the limitations that have always been a part of physical distribution."

7. According to sources, Apple is negotiating a 21,000-square-foot lease for the GM Building's underground concourse, for the company's second retail store in Manhattan. "The store will have a mini-entrance at the edge of Fifth Ave. and then drop into the space that once housed a Vidal Sassoon shop." Apple's annual rent would likely land in the US $3 million to $4 million range.

8. Warrantech is unveiling new time and cost-saving features for its web-based tool, WCPS Online, at the International Consumer Electronics Show, which starts today in Las Vegas. New modules for the application include Service Contract Submission, Dealer Sales Analysis and Express Claims Processing. All of these features are designed to reduce paperwork and cut the time and costs of administering warranties for dealers and service providers, while providing a better experience and faster service for their customers. "In the Warrantech tradition of innovation and customer service, we intend to continue to enhance WCPS Online - the industry's most comprehensive web-based tool - to meet the real-time needs of Retailers, Service Providers and Consumers," said Burt Shaw, President of Warrantech's Consumer Products division. "These new features are just one example of that commitment and attention to world-class customer support."

9. 321 Studios is showing off three new products that will have the entire family 'burning' in 2004. Now you can back up PC games - with GAMES X COPY. Now you can burn five movies to one DVD - with DVD X VAULT. Now you can get all of your DVD and CD creation and rescue tools all in one box - with DVD X TOOLS. "Parents thanked us for DVD X Copy then asked us to do the same thing for PC games, and here it is. You need to no longer fear losing your expensive PC game collection to scratches, skipping, or freezing," said Robert Moore, 321 Studios' Founder and President. "Now you can simply back them up and put the expensive original in a safe place, and the backup will play on your PC just like the original."

10. The 248 REX Stores chain said sales for the fiscal 2003 fourth quarter-to-date through January 1, 2004 fell approximately 9% to $98,095,000 from $108,343,000 in the comparable fiscal 2002 period. Comparable store sales quarter-to-date through January 1, 2004 fell 6%. The company considers a store to be comparable after it has been open six full fiscal quarters. Comparable store sales figures do not include sales of extended service contracts.

Separately, the company announced today that Lawrence Tomchin will retire as President and Chief Operating Officer, effective January 31, 2004. Mr. Tomchin will remain a part-time employee of, and consultant to, the company, providing counsel and other services to management as needed while assisting in the transition of his day-to-day responsibilities to other members of the senior operating team. Mr. Tomchin will remain a director of REX. "Larry Tomchin has been a valuable member of our senior management team since the beginning," commented Stuart Rose, Chairman and Chief Executive Officer. "We are grateful for his dedication and service over the past 24 years and are pleased that he will continue to be available as a consultant and Board member."




CES Wrap-up - Reporter's Notebook
ChannelMedia Staff


Folks, if you missed CES 2004, you missed one of the good ones. Lots of great new products, some nice future products and concepts, crowds, taxi lines, all the things that make a real show in Las Vegas a big win. Bill Gates started it off with a Keynote Wednesday night in which he demo'd the first working/shipping PDA watch. Fossil beat themselves to the punch with the MSN watch. Cool concept; affordable, legible, and the Pocket PC compatible unit hits the market while they are still trying to get the Palm unit to work. With new smartphones, tablet PCs, and Windows Media Player 9, Microsoft is on a huge tear though the industry.

Thursday the show opened to over 120,000 people. Separate halls for the 12-volt people (automotive electronics), Hilton Ballrooms for the Hong Kong companies, the Main Hall for the big players, and the South Hall for the good stuff!! The second floor of the South Hall was some sort of Convergence City. All the stuff we've all been talking about for years is happening. Great stuff! Wired homes (and wireless), HD, Home Plug, DVD- RW, digital home stuff. Here are some of the neat things we saw: a pocket-able (about 5 inch by 3.5 inch) Bluetooth enabled, 1GHz processor, 20Gig HD, XP computer from OQO. This is a breakthrough product, folks. Will it be successful? Don't know. But in three years we will all carry one of these instead of our laptop, Pocket PC, or Palm on the road. My Palm Tungsten C Wireless will fall by the wayside, if I can toss this puppy in my briefcase (or pocket) instead. Months from production, this is nevertheless something we will all be tracking from now on.

Other breakthroughs? How about Digital Deck, a high-end approach to pumping digital content anywhere in the house; TV, PC, VCR, DVD player, etc. Unfortunately, it is a cabled approach, but a real stab at dominating a new niche that we will all have in our homes in five years. Home Entertainment, Connected to the Home, Broadband Entertainment; these are all phrases we better get used to, and named areas within CES. Digital home convergence is here. BravoBrava has a very neat app for road warriors to control their TIVOs from the road, via a handheld. One question; how many road warriors have TIVO and Palm or Pocket PC?

Sony premiered a product with an odd name: DSC T1T. I think that's an odd name. Look at it a couple times. It's supposed to be an award-winning digital camera. I don't talk much about Automotive Electronics, but Audiovox and a few others have the greatest family gift in the world; headrest mounted DVD players. Anybody with kids will acknowledge this as a premium breakthrough and sanity preserver for those long car trips with kids. In the 12-volt area, there must have been 20 of these offerings. Long overdue, I say. Mailblocks spent a fortune. Another anti-spam player, these guys and gals put signs on buses (how 90 of them), and even gave out chocolate bars with their logos to the press. My wife Susan assured me the chocolate was good.

The Fuji film blimp was circling all week. Notice how we've gotten used to that? When I grew up, the only one blimping around (floating, motoring, flying?) was the Goodyear blimp. Fuji has done a great branding job, and in so doing, has knocked Kodak right out of the box. As the slave used to whisper to the conquering general in Rome, riding on the hero's chariot during his parade; "all glory is fleeting."

Televigation has the gadget guy gotta-have product of this or any show; TeleNav - turn-by-turn GPS navigation on cell phones. Is that too cool or what? $6.99 per month, and ships standard on Nextel's i730 phone. How about the Migo? Your desktop on a USB key. It even knows when you change your Outlook settings. Just grab and go with this little gizmo and plug it into any laptop or desktop you encounter. Presto, all your settings are up and running, including e-mail settings. How cool is that? Migo should be huge with the big accounting firms and global consulting outfits. Amazing technology breakthrough, all in software.

The connected home is coming folks. HAI was showing its family of controllers, with touch screen technology for running your whole house, all your automations, HVAC, everything. Great stuff. We have a small fountain in the backyard I control from inside the house. Way cool. Shell Home Products (from Shell Oil - do ya think these folks have enough dough to throw at the problem?) has the best suite of products I have seen yet in this arena. Fabulous array of controllers, and very cool gizmos.

Screens, screens, and more screens. They are getting bigger, better, and now we are all in that business. Gateway has the #1 selling plasma screen in the country - 42." Beautiful products from a number of companies. Farudja has a 76" plasma that will knock your socks off. Old-established TI is back, although I'm not sure they ever left. For half the price of plasma, TI was showing their DLP technology (Digital Light Processing) and it is nearly as good as plasma. This is great stuff. Saw the first one at Fry's in Las Vegas last year.

Had a great time - let us know if we missed out on some new stuff. Thanks.
kanewman@sbcglobal.net





RetailVision Spring Welcomes Asian Vendors & New Digital Home Category
By Pete Prentice, Event Director, RetailVision Now that the new year is here, we can officially say that RetailVision® Spring is in the air. This year's Event - taking place April 26-29, 2004 at the Hyatt Grand Champions Resort & Spa in Indian Wells, California - is building more momentum every day. Here's a quick update of two major and exciting developments:
  • Retailers at RetailVision Spring will be able to do business with a whole new group of Vendors from Asia. The enhanced presence of Asian companies is a reflection of the ongoing globalization of the RetailVision brand, as well as the dynamic business relationships being formed in China, Japan, Korea and other Asian nations by our dedicated General Sales Agents. Stay tuned for the announcement of Asian Vendors that will be part of RetailVision Spring.
  • Vendors at RetailVision Spring will benefit from a whole new technology category at the Event - Digital Home. We're bringing in approximately 30 Retailers from the Digital Home space, with two boardroom groups focused on LCD, Plasma and DLP Projectors and Monitors. These products represent some of the hottest technology trends and growth areas of the retail marketplace. The Digital Home category will certainly bring a lot of great new business relationships into focus!
While we're giving updates...
  • Over 140 top Retailers are already confirmed for the Spring Event.
  • There's lots of great buzz related to our enhanced online Self-Scheduling System that allows Vendors and Retailers to set up their own meetings, and now enables Vendors to identify buyers by product. The new scheduling system will be going live soon which will give participants an early start at building their personal schedules.
  • All participants should get ready for what may be the most spectacular venue in RetailVision history -- The Hyatt Grand Champions Resort and Spa in Indian Wells, California.
Retailers interested in qualifying for an invitation to RetailVision Spring 2004 should contact Melissa Park at 603-471-4226 or e-mail melissa.park@gartner.com.

Vendors interested in participating in RetailVision Spring 2004 should contact:
John Hurley
603-471-4228
john.hurley@gartner.com
Eda Fantasia
603-471-4207
eda.fantasia@gartner.com





RESEARCH


The LCD TV Market

A US-based research group published a survey result on LCD TVs in the "6th DisplaySearch Japan Forum" on December 12, 2003, predicting how LCD TVs made by PC makers will affect the entire LCD TV market. The group, DisplaySearch, predicts the shipments of LCD TVs from PC makers, such as Dell, Inc. and Gateway, Inc., to increase to 1.5 million units in 2004, 3 million units in 2005, 6 million units in 2006, and 10 million units in 2007.

LCD TVs from PC makers will account for 18% of the LCD TV market in 2004, and the share will increase rapidly to nearly 30% in 2007. It is likely that the share will exceed 30% in the US and European markets. According to Yoshio Tamura, Vice President and Director for the Japan Branch of DisplaySearch, the PC makers' entry will accelerate the growth of the LCD TV market after 2004 in the US and Europe. In the Japanese market, however, the share of PC makers' LCD TVs will be well below the average.

LCD TVs from manufacturers of PC have a low price appeal, which comes from low profit margins. LCD TVs from home appliances makers usually give retailers a profit margin of 25-35%, while those from makers of PCs give them a maximum profit margin of 15%. In case of online marketing, the profit margin is as small as 5%. These low-priced LCD TVs will affect the average price of an LCD TV in 2004. For example, the average price of 28-32 inch LCD TVs will be US $2,554 in 2004, which is as much as US $733 lower than that in 2003. The low prices presented by companies that make PCs will affect home appliance makers, causing a further drop in the average price of LCD TVs, the research group said. It is expected that 28-32 inch LCD TVs will be priced at US $1,241 and 40-inch or larger-sized LCD TVs will be marketed at US $1,929 -- about half the current price -- in 2004.




Bigger is Better: 17-inch Notebooks Take Retail By Storm
By Matt Sargent, ARS Research


I'm not a truck guy. I just don't get it. I have a warped belief that my four door sedan has all the room I need to make it through my daily life. But, living in Southern California, it is impossible to deny the popularity of SUVs. Everyone, from construction workers to soccer moms, swears by the SUV -- and over the last few years the car industry has jumped to fill this highly profitable niche. Everyone from Ford to Porsche now offers an SUV with a huge degree of variation within the segment. The term SUV now applies to vehicles ranging from the high end Cadillac Escalade aimed at 60-something retirees and celebrity athletes to the X-generation inspired Nissan Xterra.

While I don't get the SUV phenomenon, I do grasp a somewhat similar movement within the PC market place. While I am most certainly not a truck guy (the auto mechanic who took me to the cleaners for my last "scheduled" check up will testify to my lack of overall automotive knowledge), I am a tech guy, and the one cool tech toy I have an insatiable appetite for this holiday season is the 17-inch notebook.

When I first heard that Apple was offering a notebook with a 17-inch display I was suspect. I had worked with 16" notebooks and considered the display to be too tall for easy usage. I am not exactly sure what it was about the height of a 16" display that bothered me, but it simply looked disproportionately tall. Perhaps it was a feeling that this was a disaster waiting to happen - envisioning the system tipping over under the weight of its own display. It just didn't seem right. A 17-inch display I reasoned would be even worse. Apple, however, took a new twist on large displays by increasing the width, and not the height of the display, the result being a "wide screen" display not much taller than a 14" notebook. I was immediately struck by how inviting the form factor was and how positively it would resonate within the home market. The biggest problem with the Apple system was price. At $3,299, the original 17-inch Apple PowerBook would not make it beyond the small, but fiercely loyal Apple installed base. While the PowerBook certainly scored well among this group, broad market acceptance was not going to happen at $3,000.

Acceptance within the market came with Toshiba's version of the 17-inch form factor. The Toshiba Satellite P25-Series was born, and with it a whole new market was created. No longer did all notebooks within retail look identical with non-descript 15-inch displays. The P25 was the first SUV of the notebook market, and similar to the acceptance of the SUV, the P25 found immediate success.

Not wanting to miss out on this new market, HP followed Toshiba with the Pavilion zd7000-series. Like the Satellite P25, the Pavilion zd7000 did extremely well in retail becoming one of the top selling notebooks for HP within a few short weeks of its release. Additionally, HP was able to grab interest for the 17-inch form factor in the mid-tier market with a $1,699 zd7000 that performed very well. In just a few months, the Toshiba Satellite P25 and the HP Pavilion zd7000 drove the 17-inch notebook market from virtually no retail unit sales to almost ten percent of sales. The HP Pavilion zd7020US currently ranks in the top ten models currently sold in retail. Interestingly, the P25 is everything that a notebook shouldn't be, according to the stereotype of portable PCs. It is VERY heavy, weighing in at nearly ten pounds. It is bulky and thick. If "thin and light" are the watch words for notebook design, why has the P25 done so well? The reason is because the definition of the notebook PC is changing now that the consumer market has become more interested in the segment. Weight isn't important if you are simply moving from one room to another and never plan on taking the system beyond the four walls of your home. Another aspect not necessarily important to the home user is battery life. Who cares if a notebook only gets one and half hours of battery life if I am within ten feet of a power source at all times?

These differing needs have created a new opportunity for notebook manufacturers, much like car owner's preferences created the SUV. Does a home computer user necessarily "need" a 17-inch notebook? Definitely not -- standard 15-inch or even older 14-inch systems will get the job done. However, a 17-inch widescreen provides a level of differentiation for users looking for more than the standard "vanilla" PC. This differentiation has been a missing component of the PC industry for some time, and like the rush car manufacturers made to the SUV, ARS expects that the computer industry will rush to supply the need created by the 17" form factor. Now if only my SUV friends wouldn't laugh at my car.




Aiirnet's Hot Spot in a Box
Hot Spots for the common business
- By Craig Settles, The Wireless Way

Much attention has gone to the large businesses such as Starbucks that are deploying hot spots all over hill and dale. But what about smaller businesses that would love to draw folks in with the lure of wireless Web wandering? Well, every canine will have its day, and Aiirnet is bringin' home the Kibbles 'n Bits for the little dawgs that want to play in the big dawg's yard. You must provide a high speed Net connection, but Aiirnet's HotSpot Controller is a hot spot in a box delivers everything else needed to get a hot spot up and running within the hour. This includes the technology and personnel needed to collect credit card payments, provide 24/7 tech support and create a customized opening Web page customers see when they access the hot spot.

To get started, you send Aiirnet a completed two-page form, a digital file of your logo and the content you want on the login page. Then plug the pre-configured Aiirnet HotSpot Controller into an Ethernet, DSL or cable modem connection and plug the power cord into an outlet. Organizations can offer visitors one of several service plans (hourly, daily and monthly rates) in a revenue-sharing arrangement with Aiirnet, or it can offer the connection for free as a traffic-building tool and pay Aiirnet a fixed monthly fee. Anyone with a mobile device within 300 feet that supports 802.11b/a or Bluetooth can access the hot spot.

A built-in firewall authenticates users in several ways. Boingo and other roaming users can log in, you can allocate different amounts of bandwidth to customers and two USB ports on the controller allow you to add printers, all of which are avenues for generating additional revenues.

HotSpot Controller can strengthen ties with existing customers and generate new ones. Starbucks has institutionalized the value proposition for providing wireless Net access to customers: research shows that customers stay longer and spend more money because of their hot spots, and undoubtedly new people give Starbucks a try because of WiFi access. Some businesses may want to offer free WiFi access to draw people into their location, Aiirnet's product makes more sense for those who want the double bonus of pulling in people who spend more with the business and also create new revenue streams. For either group, Aiirnet provides the benefit of turning the login page into a portal to deliver special offers, or content that keeps people around longer.

Some creative souls may use the opening page to promote chat groups of patrons so they can supplement their Web surfing with activities such as playing games, reviewing books and swapping ideas. Some government agencies and business service outfits such as quick copy stores may see this as another service they can launch with minimal effort and expense. At a tactical level, the obvious benefit of being able to throw up a hot spot and have all of the admin responsibilities carried by someone else is that you have a great branding tool. Now your establishment has the hip image that comes with being the place where tech-aware people hang out, as well as practical people who add your place to their list of digital pit stops for when they need convenient, quick WiFi access.

Once you have a regular crowd of people who use your location regularly for WiFi access, you can use the "login-page-as-portal" to push out coupons and special offers for slow-moving items in inventory. Or you can conduct short research surveys to gather feedback to help improve your business. Once you have a portal, even a small one, you have all the marketing options of a basic Web site.
www.wirelessinconline.com






Top-Selling Software
Week of December 21 - December 27, 2003
All Categories
1 Norton Antivirus 2004 Symantec $40
2 TurboTax 2003 Deluxe Intuit $40
3 The Sims: Makin' Magic Expansion Pack Electronic Arts $32
4 Call Of Duty Activision $46
5 MS Windows XP Home Ed Upgr Microsoft $98
6 Taxcut 2003 Deluxe Block Financial $24
7 MS Zoo Tycoon: Complete Collection Microsoft $28
8 The Sims Deluxe Electronic Arts $20
9 The Sims Double Deluxe Electronic Arts $40
10 Norton Internet Security 2004 Symantec $65
 
Games
1 The Sims: Makin' Magic Expansion Pack Electronic Arts $32
2 Call Of Duty Activision $46
3 MS Zoo Tycoon: Complete Collection Microsoft $28
4 The Sims Deluxe Electronic Arts $20
5 The Sims Double Deluxe Electronic Arts $40
6 The Sims: Superstar Expansion Pack Electronic Arts $28
7 MS Age Of Mythology Microsoft $33
8 MS Flight Simulator 2004: Century Of Flight Microsoft $51
9 Halo: Combat Evolved Microsoft $42
10 The Sims: Vacation Expansion Pack Electronic Arts $18
 
Business
1 MS Office 2003 Student/Teacher Ed Microsoft $149
2 QuickBooks 2004 Pro Intuit $278
3 MS Office XP Student & Teacher Ed Acad Microsoft $131
4 QuickBooks 2004 Intuit $198
5 Norton AntiSpam 2004 Symantec $39
6 Pop-up Stopper Companion 3.0 Panicware $30
7 McAfee SpamKiller 5.0 Network Associates $36
8 MS Office 2003 Pro Upgr Microsoft $326
9 MS Office X Student/Teacher Ed Microsoft $148
10 Mac Internet Services Suite Apple $98
 
Home Education
1 Adventure Workshop 1st-3rd Grade Riverdeep Interactive $19
2 Dora The Explorer Animal Adventures Atari $20
3 Jumpstart Advanced Kindergarten 2003 Vivendi Universal Publishing $20
4 Adventure Workshop 4th-6th Grade Riverdeep Interactive $19
5 Jumpstart Advanced Preschool 2003 Vivendi Universal Publishing $20
6 Jumpstart Advanced First Grade 2003 Vivendi Universal Publishing $20
7 Mavis Beacon Teaches Typing 15.0 Riverdeep Interactive $20
8 Jumpstart Advanced Second Grade 2003 Vivendi Universal Publishing $20
9 Jumpstart Advanced Third Grade 2003 Vivendi Universal Publishing $20
10 Blue's Blue Takes You To School Atari $20
 
List is based on units sold by twenty-three channel partners. For more information, please contact The NPD Group at (703) 376-6226.





COMMUNITY

Q&A with Macromedia's Michael K. Menegay, Senior VP of Worldwide Channels

Q: What is Macromedia Breeze?

A: Breeze is the Macromedia software platform for rapid learning and training that enables you to simplify and accelerate online meetings, presentations, and training with one revolutionary integrated solution. Breeze has three modules: Breeze Presentation, Breeze Training, and Breeze Live.

Breeze Presentation allows you to personalize Microsoft PowerPoint presentations with your own narration and easily deliver them on demand through any standard web browser in Macromedia Flash format. Content experts and instructional designers can now develop and publish materials with ease by creating new or pre-existing PowerPoint presentations that integrate digital video, Flash simulations, and other types of media and provide a rich experience for the viewer.

Breeze Training allows you to build a complete online training system with PowerPoint presentations that includes surveys, tracking, analysis, course administration/management, and content management. Now you can schedule courses, invite and register participants, and track attendee statistics. Test the effectiveness of your courses by building quizzes and surveys into your PowerPoint presentations. Generate detailed reports on courses, students, and test results and set up automated certification criteria. Manage users, set permissions, and run reports to log the number of viewers and gauge the effectiveness of your Breeze presentations and courses.

Breeze Live provides an unequaled experience in online meetings, allowing you to meet instantly with colleagues anywhere at any time. Imagine online meetings that actually work! Because Breeze Live works with Macromedia Flash, setup is quick and intuitive. No software downloads or plug-ins are required. Now you can bring PowerPoint slides, digital video, Flash simulations, and other types of media into your live meetings. Chat with a few people or broadcast to many. Web cast applications on your PC through screen sharing. Schedule meetings in advance, preload content before meetings, and use preset or custom meeting room layouts. You can even save rooms for recurring meetings and record it all easily for future viewings.

Macromedia offers Breeze hosted packages, or you can host it on your own company's servers.

Question #2
Q: How has the use of Breeze technology impacted your channel organization at Macromedia?

A: Breeze has helped our smaller account management, programs, marketing, operations, and technical teams to scale, covering more partners and partner types across larger territories. With Breeze we are communicating more efficiently and executing our training and enablement activities more often and with much greater consistency. Overall we are sharing information with partners and their teams far more cost-effectively than ever before. Our savings on travel expenses alone in one quarter was enough to pay for the software. Breeze is keeping us on time and on budget.

Question #3
Q: In what phases of the channel partner lifecycle is Breeze technology and its individual modules most helpful?

Recruiting: Breeze helps us make every meeting a face-to-face one. Connecting with every prospect in a Breeze Live meeting has helped increase our channel partner recruitment and retention rate. Meetings are not only more effective and productive but they happen more often and with limited costs. We are building strong channel loyalty through frequent and meaningful interactions with channel partners through Breeze.

Enablement and Training: Breeze Presentation and Breeze Live make rapid learning possible and highly effective. Together they help us ensure competency throughout the channel. Breeze helps channel partners cut through the clutter, delivering the latest information wherever and whenever it's needed. We deliver timely and relevant information on process and product from Macromedia SMEs in an organized fashion. All content can be recorded and saved in a repository, to be reviewed later on demand or for reference purposes. By making effective use of the Internet, Breeze keeps channel partners informed and trained with less cost, less travel, and less time away from their desk and territory. It is quickly becoming our partners' preferred way of learning and exchanging information with us as a vendor.

Marketing: Breeze Presentation, Breeze Training, and Breeze Live increase the effectiveness and tracking of marketing programs. Breeze gets our message out quickly to a worldwide channel partner and customer audience in one-to-many events by using the web to reduce logistics costs. Breeze reduces event management staffing and allows us to sponsor more events more often. Offering recorded events from our website helps capture new partners and customer prospects who could not otherwise attend an event.

Sales: Breeze impacts revenue today! We spend less time traveling and more time meeting with more prospects. Breeze Presentation and Breeze Live turn sales calls into interactive online demonstrations. In minutes we can bring remote key decision-makers together. By recording meetings for those who are not in attendance, we can help shorten long, complex sales cycles.

Feedback: Breeze gives Macromedia insight into who is understanding our message and who is not. Understanding the effectiveness of process and programs is critical to any channel organization. With Breeze Presentation and Breeze Training we can deploy content to channel partners, register participants, and track attendee statistics and competency level with great detail. We can also survey quickly on specific topics, processes, and programs to understand perceptions and make necessary adjustments quickly. We have found over time that channel partners are loyal to vendors who listen and respond. There is a lot of competition out there for a limited amount of mind share. In the channel, change is inevitable and making the right change at the right time is critical. Breeze has put us far ahead of the game and will keep us there.

Question #4
Q: How long does it take to learn Breeze technology and integrate it efficiently and effectively into your daily process in the channel?
A: Our internal channel team was installed, up and running, and being trained within one hour. Within one week we had a strong working knowledge of all three Breeze modules and had begun integrating them into our daily process. We found Breeze to be very approachable and intuitive. Not only was it easy for us to learn, but it was simple to use. Our channel partners enjoy Breeze and the flexibility it provides them to receive information from Macromedia. We see the use of Breeze to communicate, educate, train, and enable our channel partners as a big competitive advantage over other vendors competing for mind share.

Question #5
Q: How can I learn more about the Macromedia Breeze product platform?

A: Just click here:

Macromedia Breeze for Channel Management
http://www.macromedia.com/software/breeze/solutions/sales/channel_readiness/

Macromedia Breeze product home page
http://www.macromedia.com/software/breeze/

Macromedia Breeze FAQ
http://www.macromedia.com/software/breeze/productinfo/faq/

or contact Macromedia directly at 888-649-2990 or sales@macromedia.com.






Changing Channels
What's Important These Days
By ChannelMedia Staff


Obviously revenue is #1 on the hit parade this year. However, during the recent downturn, companies were so focused on revenue that they forgot to do all sorts of important things. Here's what's important all the time:

Figure out who your customers are. The more detail the better. Marketers and customer outreach people need to pin up a picture and a description of their target customer over their desks. Everything you write, every ad placement, every outbound e-mail, the script your telesales people use, your web site, and your product placements in the channel all need to support acquisition and support of the target customer.

Continue to spend, but spend appropriately. A consultant friend had a client that placed multiple end caps in retail every month of the year, across their entire retail channel. Until my friend did an ROI analysis, that is. He found that about 1/3 of the end caps were losing money! Just because an item is budgeted does not make it right, or an appropriate level of spending. Then spend the right amount on reaching the right customer (see above). Take caps off your commissions, if your company has caps. This is one really cheap way to stimulate additional and incremental sales. If capped commissions are a religious issue with the company, even the Pope grants exemptions.

If your company is not doing direct marketing; start. Whether you plan on sending e-mails for outreach, a newsletter for communication and informing, or a postcard announcing an update/upgrade, start communicating and keep communicating. If you don't take care of your customers, somebody else would love to do it for you!

Revenue is always going to be #1. But if you think it's the only important thing; you're mistaken.




 



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