Weekly television digest (Jan-Dec 1960)

VOL. 16: Ho. 52 23 NOV. TV SALES SOFT: "tv sales last month were in the same listless groove that they’ve occupied since last July, unofficial estimates indicate. Preliminary figures show retail sales down about 12%, distributor-todealer sales down 15%. November’s drop of about 12% at retail follows October’s 13% dip, September’s 9%, August’s 13% (all compared with same 1959 months). Retail radio sales showed their first tendency to softness in November — dropping below the 1-million mark for the first time since August, and down 5%% from Nov. 1959’s retail figure. Thus November was the first 1960 month to see lower radio retail sales than the comparable 1959 month. But distributor sales of radios were 9% ahead. TV’s bright spot was its drastically lowered inventory figure. Stocks at all trade levels were about 130,000 lower than at the end of Nov. 1959, with dealers’ inventories down a substantial 223,000, distributors’ inventories down 14.000, and manufacturers’ stocks up 106,000 from last year. November TV retail sales totaled about 527,000 vs. 598,000 in November last year, but the 11-month total sales of 5,182,000 (vs. 5,047,000) indicated that the full-year 1960 retail total probably will slightly surpass 1959’s 5,749,000. November distributor sales were about 498,000 (vs. 584,000) and year-to-date distributor-to-dealer sales totaled about 5.096.000, down from 1959’s comparable 5,449,000. Radio retail sales in November declined to about 951,000 units from Nov. 1959’s 1,017,000, for an 11-month retail total of 8,336,000 (vs. 7,142,000 in 1959), while distributor radio sales climbed to 1,171,000 from 1,079,000 the year before. The 11-month total of distributor radio sales is 8,811,000 — substantially ahead of last year’s 7,990,000. • a More about OPERATION SNOWBALL: Objectives of Corning Glass’s 12-month TV promotion campaign (see p. 17) are: “(1) To expand the market for TV sets; (2) to encourage more trade-ins & trade-ups; (3) to encourage retail selling by emphasizing product benefits.” Drive will be run by Ralf Shockey & Associates. Among the highlight activities: (1) “TV Trading Bee,” to be supported by trade advertising, material for manufacturers, distributors & retailers; ad material to be supplied to newspapers, radio & TV stations, etc. (2) “1962 Demonstration Preview” in fall will get the same treatment, including special newspaper supplements, etc. (3) Promotion programs at large shopping centers, including TV giveaways, etc. The first will be at the North Shore Shopping Center, Peabody, Mass., in March, (4) Christmas campaign, with extensive consumer advertising. For the trade, the program will include: (1) Exhibit & demonstration program at International Home Furnishings Market, Jan. 6-14 in Chicago. (2) Slide film & other material to acquaint manufacturers, distributors & dealers with the program. (3) Two-week city-wide programs, including all local TV dealers, in cooperation with NARDA chapters. (4) “TV Retailer of the Year” awards. (5) Formation of a retail advisory group of selected dealers “to develop new ideas for expanding the market.” Studies & reports planned: (1) Study of TV retailing, for July presentation, prepared in cooperation with NYU school of retailing. (2) Study of trade-up selling, for Sept, presentation, in cooperation with U. of Pittsburgh school of retailing. (3) A manual of outstanding selling techniques, “The NARDA Method of Selling TV Sets.” Canadian Look at 1961: The closing year was one of recession for Canada’s electronics industry (Vol. 16:41 pl7). Sales of home-entertainment products dropped off sharply from the peak years of 1955-56. Orders for military electronic equipment also declined. What portends for 1961 ? Three major leaders of Canadian electronics hold these views: RCA Victor Co. Pres. J. D. Houlding: “The electronics industry looks to 1961 with mixed feelings. TV-receiver sales in 1960 will be down 15% from the previous year, and except for a reversal of consumer buying behavior, a further reduction in 1961 is possible. From the long term point of view, a growing replacement market will gradually reverse the downward trend of TV-receiver sales. However, the industry badly needs an immediate stimulus which might be provided through elimination of excise taxes, or through authorization of color broadcasting. . . . “Canadian producers are under increasingly serious pressures from rising imports of radios, tubes and other consumer items. If any change [in prices of consumer products] does occur it will probably be upward because of current unprofitable operating levels. Although the outlook for consumer products is somewhat pessimistic . . . products for communications, broadcasting, industrial and business automation, and for defense, will tend to offset the short term decline in other areas.” Canadian GE Pres. J. Herbert Smith: “Sales of electrical consumer goods are down in 1960, and no substantial increases can be looked for in this product field in 1961. Thus, unless factors come into play which are not at present discernible, the electrical manufacturing industry can look for an over-all reduction of sales in 1961.” Canadian Westinghouse Pres. G. L. Wilcox: “The current cyclical downturn which began early this year is showing little signs of abating. Consumer spending is still sluggish, due to a leveling in total labor income . . . Consumer spending is the big imponderable and the extent to which it will contribute to the over-all level of business in 1961 will be governed largely by the degree of activity in our manufacturing industries. This is the segment of the economy which provides employment for 25% of all working Canadians, pays 29% of all vages & salaries, and accounts for over 30% of the country’s total output. It is also the segment of the economy which is losing jobs & wages to other countries at a disturbing rate.” Trade Personals: Jack S. Beldon, ex-pres. of RCA Sales Corp., joins Magnavox TV-radio-phono div. in new post of marketing mgr.; Magnavox sales organization expansion also sees A. Robert Baggs, ex-merchandising mgr. of RCA radio & “Victrola” products, named mgr. of radio products & mktg. development; James Egan, former zone mgr., promoted to field sales mgr.; A. Paul Wagner, former Bell & Howell PR dir., named to similar Magnavox post; William H. Boedeker Jr., ex-GE appointed mgr. of special products & accounts. Robert Scott, former Thomas Electronics general sales mgr. and onetime Du Mont picture tube sales mgr., joins National Video as sales mgr. . . . Kendrick R. Wilson Jr. named chmn. & chief exec, officer, Avco, succeeding Victor Emanuel, who died Nov. 26. James R. Kerr named pres.. Col. Earl H. Blaik named exec, committee chmn. Donald G. Evans Jr., ex-Westinghouse, named ad & sales promotion mgr.. General Precision Link div. . . . Robert C. Sprague, chmn. & treas. of Sprague Electric Co., is back at his desk following a week in the hospital for kidney stones.