A new study from Canalys, a U.K. consultancy covering consumer electronics, finds that the global market for mobile navigation devices has more than doubled in the second quarter this year, versus the period in 2006. The Reading-based firm says 7.4 million GPS devices shipped in the second quarter, up 116% versus Q2 last year. More than 90% of those devices were portable navigation devices, whose sole function is delivering location and navigation info. In addition, the U.S. share of the market rose to 26%, with Europe, the Middle East and Africa at 60% of the global market. The top brand is Garmin--inching out TomTom for the first time in two years, per the study, while both brands saw their shares of the global navigation-device market increase, both year-over-year and versus the previous quarter. Canalys' sales figures for devices used for turn-by-turn road navigation with GPS and software built in include not only Portable Navigation Devices, but also multipurpose devices like smart phones. Per Canalys estimates, Garmin sold 1.85 million devices in the quarter--a 25% increase. TomTom sold 1.8 million units, followed by Mio Technology, Magellan and Navman. Chris Jones, Canalys vice president and principal analyst says, in a statement: "It is difficult to point to another part of the high-tech industry that is so dynamic growing as fast as the navigation sector." The firm says Europe still leads sales, with 60% of the global market and an 82% growth over last year's sales. But the U.S. saw 300% growth, which also helped fourth-ranked Magellan--which, per Canalys, saw the biggest jump in sales among the top brands with a 548% growth in sales in the second quarter to 421,080 units delivered. Per the firm, Magellan is now the second-ranked navigation-device brand in the U.S. behind Garmin. Jones says that GPS-enabled convergence devices--cell phones and the like, which combine telecommunications with entertainment and other functions--are making a mark in the sector, with products like Nokia's GPS phone, N95, nearing the Top 5. He says Nokia's success will depend on its ability to crack the U.S. market by appealing both to pedestrians and drivers. Per Canalys, converged devices are only 6% of the mobile navigation device market today, but have the potential--because of multi-functionality--to grab a large portion of the market for portable navigation devices. Jones says that more convergence between mobile phones and the navigation industry is on the way. "If you look at the stir Apple created in the mobile phone business with iPhone, it is not hard to imagine a leading brand trying something similar in the navigation/phone crossover space, with a new approach in design and user interface. The fact that the U.S. market is taking off and the volumes are becoming substantial means that more companies are sitting up and looking at the opportunities," he says. The study precedes the Canalys Navigation Forum, which takes place in Barcelona on Sept. 10.
A month after Anheuser-Busch announced an equity stake in an Icelandic water bottler, the St. Louis-based company has announced another agreement with a water company that continues to extend A-B's reach into non-alcoholic beverages. This time, the beverage is a nutraceutical line called Borba's Skin Balance Waters. The deal gives the beer maker nearly worldwide (excludes Japan, Australia, Singapore, Indonesia and Dubai) distribution and marketing rights to the product as well as to Aqua-Less Crystallines, a powder form of the drinkable skin care line. A-B wholesalers will begin distributing the beverages in select markets in November. Terms of the deal were not disclosed. Woodland Hills, Calif.-based Borba retains the right to sell its beverages and crystallines in select accounts and online. Borba beverages contain antioxidants, vitamins and botanicals, the company says in a release. Each beverage is formulated to provide a distinct skin benefit, such as a clearer complexion, firmer skin, and help for dry, dehydrated skin. The line currently is available at high-end retailers, such as Sephora, Ulta, and Equinox Gyms. Select items also are sold through multimedia retailer QVC. "With extensive reach, marketing and distribution expertise, Anheuser-Busch will help expand the presence of our products in key retail locations," says Scott Vincent Borba, founder and chief executive officer of Borba, per the release. "Adding the [lines] to our portfolio allows us to participate in the emerging nutraceutical beverage category," says Dave Peacock, vice president of business operations, Anheuser-Busch, also in the statement. "The Borba line of beverages provides innovative and highly profitable products for our wholesalers and retail customers, while expanding our business into high-growth beverages beyond beer."
Lowe's became the latest retailer to lower its outlook because of the slumping housing market. And the lingering real-estate gloom, which has stores like Wal-Mart, Home Depot and Sears licking their wounds, has got marketing experts wondering--when will American consumers start feeling safe enough to feather their nests again? While Lowe's sales gained 5.8% to $14.2 billion in the quarter, its comparable store sales declined 2.6%, and they fell 4.4% in the first half. "The sales environment remains challenging as home improvement consumers hesitate to take on longer discretionary projects," company execs said in a conference call, causing the company to lower its forecast for the remainder of the year. It's not that homeowners are hanging up their paint-rollers and weed whackers. "Consumers are making sure they keep their homes as functional as possible," says Nick McCoy, a senior consultant at TNS Retail Forward, in Columbus, Ohio. "So they're still doing smaller spruce-up jobs. But they are very reluctant to undertake the major projects that they might have done in anticipation of selling." In its conference call, Lowe's says it has seen a "profoundly disproportionate impact in those markets where housing was most stretched during the past several years," with its California operating regions posting double-digit negative comps for the quarter. "Our expectation is that we will continue to experience negative comps in that market through the end of the year," it says, adding that there is some sign of improvement in markets in the Northeast. "It's probably a little early to say housing pressures in the Northeast are behind us, but our improving results are an encouraging sign." The company also says it saw positive results in some categories, illustrating that consumers are still trying to follow conventional real-estate wisdom. "As a core part of the maintenance of the exterior of the home, consumers continued to purchase live plants to enhance the appearance and enjoyment of their yards," it says. Paint sales--particularly exterior paint and stain--were also strong. Patio furniture and gas grills also did well. Eventually, McCoy thinks that even if the housing downturn continues, consumers might eventually feel stuck enough in their current homes to start spending again, whether it's splashing aubergine paint on dining room walls or adding the three-season room they've always wanted. But not now. "Most people are just waiting it out," says McCoy. "And it's not just real estate. People are nervous about the economy--about gas prices, about interest rates, about all the press on the subprime mortgage meltdown. So for now, they're just sitting still."
On average, half of patients with chronic illnesses skip doses or otherwise mess up their medication, says a report from the nonprofit National Council on Patient Information and Education. The federal government is planning outreach programs to combat patients who don't take the medications prescribed to them, skip pills or otherwise don't take them correctly. However, the pharmaceutical industry is already one step ahead with programs of its own to boost compliance. Bedminster, New Jersey-based Cegedim Dendrite is a leader in the patient compliance area, with programs involving more than 40 brands. These programs primarily involve "loyalty" cards that the pharmaceutical industry provides to physicians, who in turn provide then to patients when the initial prescription is written. The cards provide a financial incentive for patients to fill the initial prescription and any subsequent refills. There are associated Web sites and patient information newsletters that consumers can receive on an opt-in basis. Currently, Cegedim Dendrite has more than 30 million cards in circulation via 50 different programs and is working with nine of the top 10 pharmaceutical companies, says Harvey Brofman, vice president and general manager of Cegedim Dendrite's Opus division and chairman, American Pharmacy. Although Cegedim Dendrite can't reveal its clients due to confidentiality agreements, the company was willing to share a blind case study. In this case, the pharmaceutical company was facing an unsettling situation with one of its biggest sellers. Managed care formulary restrictions were resulting in fewer new patient starts through prescribing physicians and higher co-pays for patients. Cegedim Dendrite developed a brand loyalty and persistence program consisting of peer-to-peer telecommunications outreach to 3,600 physicians and distribution of a persistence card kit via sales reps to physicians. The card kit educated patients about the therapy and provided patients with up to $30 off their co-pay for six months (a total value of up to $180). Of the 6,000 patients enrolled into the program, more than 75% used the card two or more times, with 62% using the card three or more times. A persistence analysis conducted four months post-program indicated that new patients increased their refill ratio by an average of one additional refill month per patient. The six-month pilot program encouraged redeeming physicians to prescribe an additional two New Brand Starts (NBS) per month per physician. Of total prescriptions generated by this program, 63% were new patients to the brand. The program increased the propensity to stay on therapy into the fourth month and beyond, raising the percentage of patients who were persistent by an average of 21% versus control. Among redeeming physicians, NBS share increased an average of four points versus control. The program ultimately generated an ROI of more than 3:1. One opportunity is for pharmacists to get more involved with patient compliance. Of all health-care providers, pharmacists have more "touchpoints" with patients, and potentially can have the largest impact on patients complying with their medication regimens. "For every one visit to the doctor, patients visit the pharmacist three or four times," Brofman says. "There are more opportunities for intervention. It's a more natural fit."
Time Warner Cable Media Sales has called on Austin, Texas-based Live Oak Interactive to build a multimedia Web marketing tool set to roll out later this year. Details are sketchy: The application will give Time Warner Cable Media Sales--the ad sales arm of Time Warner Cable--a central location from which to push targeted advertising and information into local markets, as well as empower consumers to manage the advertising they view. Initially, the application will launch in two undisclosed markets. "Live Oak Interactive is developing a Web site portal with one brain that can operate 11 Web sites," a Time Warner Media Sales spokeswoman confirmed Monday. National brands targeting local markets are contributing to the growth of online ads, albeit slowly, admits David Hallerman, senior analyst at eMarketer. "It's more difficult for national brands to target local markets because they typically have to tweak the ads slightly to appeal to consumers," he said. "Most national brands that advertise locally are retailers and auto manufacturers." Local advertising should represent about 13.4% percent of $21.7 billion in online ad sales this year--up from 12.1% of $16.9 billion in 2006, respectively, Hallerman estimates. The application also would enable companies that have traditionally relied on television advertising to repurpose their marketing tools for Internet-based delivery platforms. Companies familiar with Internet-based marketing could use the product to extend their traditional reach into television, according to Andy Meadows, CEO of Live Oak Interactive. "The information feed would come from multiple sources to create and present one local message to consumers based on their location," he said. Live Oak Interactive began developing the system in April on an open-source platform--HTML scripting language PHP and relational database MySQL. The application is scheduled for completion in September. The system works with any Web browser, from Microsoft Internet Explorer to Safari and Firefox, used commonly on Apple computers. Meadows said Live Oak Interactive also built a Web-based content management system for Symbol Technologies, which Motorola acquired in September 2006, allowing company employees to manage content. National brands targeting local markets have successfully moved into movie theaters, too. Two years ago, National CineMedia began building a digital cinema network that targets moviegoers with local and regional advertising, as well as localized national ads by demographic, geography, movie rating and auditorium. From one central location in Colorado, the system relies on sophisticated software, bandwidth, hard drives and digital cinema projectors to push ads into 12,300 movie theater auditoriums nationwide. Launched in 2005 as a joint venture, National CineMedia supports sales and marketing efforts for three major movie-theater chains Regal Entertainment Group, AMC Entertainment and Cinemark USA. The company went public in February, and recently reported advertising revenue increased 52.8%, from $50.2 million to $76.7 million year-over-year in the second quarter, ending in June. Hot summer blockbusters like "Superbad," "The Simpsons Movie" and "The Bourne Ultimatum" continue to attract more national advertisers to local markets, said Lauren Leff, National CineMedia vice president of communications.
Sales of massage devices will soon hit the stratosphere, and not for reasons pertaining just to recreational use. A report by Packaged Facts, "Personal Therapy Sensory Devices: Americans Get Their Electronic Om On," says sales of massage devices will take off over the next four years because of the stress of daily life--increasing medical costs and the advent of complementary and alternative medicine. The market research publisher, a division of MarketResearch.com, predicts sales of personal therapy sensory devices to reach $1.2 billion by 2011. Per PF, massagers, air-quality devices and sound therapy products accounted for $934 million of 2006's estimated $1 billion in sales of such devices. However, light and color therapy devices grew 12%, to $26 million last year, per the company. Packaged Facts also says light and color therapy devices will lead the market in projected sales growth for personal therapy devices over the forecasted period, with a $13.5 million (8.8%) increase over 2006. Aromatherapy and sound therapy devices will, per PF, see 6.5% and 4.1% increases in sales as aromatherapy devices converge with air fresheners, and sound machines combine with clock radio and alarm clocks. "Consumers want personal appliances that are convenient to use, easy to clean, stylish, maintain a healthy personal equilibrium, offer an invigorating environment for the senses and, most importantly, feel good," says Tatjana Meerman, the publisher of Packaged Facts.