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CREATIVE Electronics & Entertainment Merchandising
December/January, 2004



Virgin Launches ‘Lifestyle Electronics’ Brand

Virgin Pulse, a new line of “lifestyle electronics,” consists of 15 high-design, user-friendly electronics. The line is carried exclusively at Target and Virgin Megastores.

The new product line focuses on ergonomics, styling and functionality. The dual headphone jacks, easy-grip rubberized paint, removable remotes and “hip clips” are just a few of the creative transformations Virgin Pulse has brought to everyday electronics. The line includes MP3 players, a slot loading CD/Clock radio, FRS two-way radios, and a CD player molded to fit your hand. The Virgin Pulse line was designed by Ecco Design, New York City.



Song Air Lines Opens Concept Store

Song, Delta Air Lines' new low-fare air travel service, has opened a first-of-its-kind concept store in New York City to replicate the unique travel experience Song delivers to its customers. The 2,700 sq. ft. “Song in the City” store enables visitors to experience Song's travel environment and state-of-the-art amenities in a high-concept, high-design space.

The store has six distinct "Areas." The In-Flight Entertainment Area, located in the center of the store, features two rows of three actual Song all-leather aircraft seats. The Entertainment Area features a wall of 25 plasma screen monitors, highlighting Song's in-flight television channels and video-on-demand capabilities. The Food & Beverage Area offers guests the opportunity to purchase items from Song's in-flight menu, which includes such selections as Stonyfield Farms Organic Yogurt and “Rock ‘n’ Roll” Veggie Sushi.



FotoZoomer Provides Self-Service Photo Kiosk

FotoZoomer, from Graphic Enterprises, North Canton, OH is a self-service photo kiosk system for creating on-demand poster-sized color prints of digital images from a consumer’s personal photos.

The FotoZoomer will accept digital image files from Photo CDs, Digital Camera memory cards, media sticks or floppy discs.

The FotoZoomer offers special features that allow the user to easily crop, add text, rotate, etc. Users can also access a border library and create personal messages for special occasions.

Fotozoomer is offering retailers a variety of kiosk models. The XP unit shown features a 19” touch screen. The unit is 31" (L) x 37 1/4" (W) x 57 1/4" (H).



In-Store Kiosks Promote SBC Yahoo! DSL

SBC Communications has joined forces with many leading retail providers to make SBC Yahoo! DSL available at more than 2,000 stores across its 13-state operating region. Distribution agreements are expected to help accelerate broadband adoption by making it more convenient for consumers to shop for and purchase SBC Yahoo! DSL.

Major retailers now offering SBC Yahoo! DSL include Best Buy, RadioShack, Cingular Wireless and Gateway. “We’re enabling prospective customers to experience the benefits of SBC Yahoo! DSL firsthand and to order the service in the way that is most convenient for them,”said Ray Wilkins, President, SBC Marketing and Sales.

SBC Yahoo! DSL will be promoted through in-store kiosks, brochures, advertisements and signage.



Alpine Display Demonstrates Navigation System

This sleek display was used by Alpine Electronic of America to demonstrate the Alpine Car Navigation system. The display is fully functional and interactive.

The display was successfully placed in 100% of the targeted dealers with significant increases in Navigation sales attributed to the display in subsequent months following the rollout.

The Alpine Navigation display was produced by RP Creative Display, Inc., a point-of-purchase display firm located in Irvine, CA.



Sony Features Interactive Headphones Display

This interactive display allows the consumer to demo Sony Electronics’ complete line of headphones.

The display is designed to suit all retail environments, specifically as an end cap to conserve floor space.

The display has been placed in Fry’s Electronic Stores around the country for one year.

This headphone display was designed and manufactured for Sony America by Rapid Displays, a point-of-purchase display firm headquartered in Chicago, IL.



Rescue Heroes Backed By Multi-Million Dollar Campaign

Artisan’s Family Home Entertainment (FHE) and Fisher-Price have launched the first full-length, CGI animated feature film based on Fisher-Price’s best-selling toy line-Rescue Heroes.

FHE and Fisher-Price are supporting the release with a multi-million dollar promotion campaign. The highlight of the campaign will be a unique partnership with Loews Cineplex Entertainment theatres that includes major market theatrical screenings and in-theatre advertising.

FHE will support the release with an impactful print and broadcast advertising campaign. All “Rescue Heroes: The Movie” videos will be stickered with a $3.00 mail-in rebate offer. Through the offer, consumers can get $3.00 off when they buy the “Rescue Heroes: The Movie” DVD/VHS with a Rescue Heroes:Mission Select Toy. To generate in-store awareness, FHE has created eye-catching p.o.p. displays. Twelve, 24, 30, 48 and 60 piece displays are available.



Merchandisers Feature Looney Tunes On DVD

Warner Home Video is offering new collections of Looney Tunes classic cartoons, available on digitally re-mastered DVDs and packed with special features. From the crown jewel boxed set The Looney Tunes Golden Collection and the double-disc Looney Tunes Premiere Collection, to a two-disc special edition of Space Jam, there is something for every fan.

Mike Saksa, WHV Sr. V.P., U.S. Marketing, said, “WHV tailored this collection to each type of collector by incorporating a range of special features, such as footage from the Warner Bros. vault, to give enthusiasts more depth into the iconic Looney Tunes characters.”

Special promotional offers include a Free Child’s Movie Pass to see the Looney Tunes: Back in Action movie, available in all new Looney Tunes DVD and VHS titles. WHV and Coinstar will offer a $5 rebate by mail good towards the purchase of any Looney Tunes home video release when $5 in coins is exchanged at Coinstar booths.



Pepsi Launches iTunes Promotion

Pepsi-Cola N.A. has announced a promotion to legally give away 100 million free songs to Mac® and Windows PC users from Apple's iTunes® Music Store.

Beginning February 1, 100 million winning codes will be randomly seeded in 20 ounce and 1 liter bottles of Pepsi, Diet Pepsi and Sierra Mist, and the winning codes will be redeemable for a free song from the iTunes Music Store. Winners will go to Apple’s iTunes Music Store (www.iTunes.com), enter the code found under the bottle cap and choose any 99 cent song from the online store's vast catalog of over 400,000 songs.

“iTunes has revolutionized the way we buy music,” said Dawn Hudson, President of Pepsi-Cola N.A. “iTunes provides music fans with a fast, reliable and easy way to get the music they want, when they want it. During the Pepsi iTunes promotion, they will be able to get more of their favorite music for free.” Steve Jobs, Apple’s CEO, said, “Pepsi has marketed their products through music for generations, and this is going to be another one that is remembered for decades.”



MusicNow Works With Best Buy To Launch New Digital Music Store

MusicNow Inc., developer of a legal online music store and service, and Best Buy have launched the MusicNow Download Store, initially available only through Best Buy. The MusicNow Download Store for Best Buy allows consumers to download music more easily to their favorite digital music players from industry leaders such as Creative, Rio, iRiver, Phillips/Nike, and Digitalway. Unlike other digital music offerings, the MusicNow Download Store for Best Buy enables users to transfer songs directly to more than 40 portable devices without having to convert their music or download extra plug-ins.

The MusicNow Download Store for Best Buy is available now at www.bestbuy.com/digitalmusic and also can be viewed through special kiosks at Best Buy retail stores.



ADAM Missing Child Fax Poster Program Expands Into RadioShack Stores

RadioShack Corp., ChoicePoint and the National Center for Missing & Exploited Children (NCMEC) announced the expansion of the ADAM missing child fax poster program into more than 7,000 RadioShack stores nationwide. This makes the consumer electronics retailer the largest single-source distributor of ADAM fax posters in the country. Using technology developed by ChoicePoint, each RadioShack store will now receive NCMEC faxes of high-risk missing children from their area and place them on prominent display in the window or at the checkout register.

“The ADAM fax poster program allows us to provide customers with yet another tool to combat crimes against our children,” said Leonard Roberts, CEO of RadioShack. “By combining our retail presence in virtually every neighborhood in America with ChoicePoint’s ADAM fax poster distribution system, we can’t think of a better way to support our corporate citizenship goal.”



Nickelodeon & Holiday Inn Open Hotel

Nickelodeon is partnering with Holiday Inn Hotels & Resorts to develop the first Nick-themed hotel in Orlando, FL. Nick’s brand philosophy of putting kids first will extend to all aspects of the hotel, especially in the hotel’s suites which give kids their own rooms. The hotel will be called the Nickelodeon Family Suites by Holiday Inn.

“We intend to provide families a better vacation experience by giving kids their very own bedrooms in suites that offer tremendous function and value when compared to regular hotel rooms,” said Jeffrey Dunn, President, Nickelodeon Enterprises. Mark Snyder, Sr. V.P., Brand Management, Holiday Inn, said, “The Nickelodeon relationship will take the already award-winning combination to the next level by creating a one-of-a-kind family entertainment destination.” In addition to Nick decorated bedrooms, the hotel will feature wake-up calls from Nick stars, daily character breakfasts, and live entertainment featuring Nick characters.



HP & Disney Launch Strategic Alliance

HP and The Walt Disney Co. have launched a 10-year strategic alliance.

The companies’ collaborative efforts celebrate the launch of the Mission:

SPACE attraction at Epcot at the Walt Disney World Resort. HP engineers have worked with Disney on the Mission: SPACE technological design and in the development of the Post Show area known as the “Advanced Training Lab,” which showcases how HP technology powers the attraction through a range of compelling experiences. The Mission: SPACE attraction is being commemorated with a marketing campaign including in-store promotions and a consumer sweepstakes offering entrants an opportunity to win one of 10 family trips for four to Epcot.



PC Shipments to Reach Record Levels

PC Shipments to Reach Record Levels Strong demand from the consumer segment, aggressive pricing, and rapid portable adoption will continue to drive worldwide PC growth, forecasts IDC. Total computer shipments in 2003 are expected to be up 11.4%, surpassing 152 million with a value of over $175 billion. The updated projections represent shipment growth of 8.8% over 2000, the previous highest year for PC shipments, with a 22% decline in total value due to aggressive pricing and a shift toward lower-end configurations. Shipment growth is expected to continue at 11.4% in 2004, while shipment value is forecast to grow by 4% in 2004.

Loren Loverde, Director of IDC’s Worldwide PC Tracker, said, “Consumers remain the primary market driver, and while business purchases have yet to accelerate substantially, we expect greater business participation and continued double-digit growth during 2004.”

Roger Kay, V.P. Cient Computing, IDC said, “Within the great numbers we’re seeing a dramatic shift from desktop to notebook buying.”



Creative Debuts MuVo2 Line Of MP3 Players

Creative Labs has introduced NOMAD MuVo2 line of ultra-compact MP3 players.

The new NOMAD MuVo2 players include the pocket-sized hard drive player, NOMAD MuVo2 1.5GB, and two rugged flash additions, NOMAD MuVo2 X-Trainer 512MB and NOMAD MuVo2 X-Trainer 1GB. All versions feature USB 2.0 connectivity and simple drag and drop functionality.



Theatre Kiosk Sign System Is Launched

Nanonation has introduced an interactive kiosk that allows movie patrons to control the movie previews they view. The system utilizes multiple computers and projectors to display video and promotional content.

Nanonation, a Nebraska-based developer of interactive software and Douglas Theatre Co. combined to develop the next generation of dynamic signage. Patrons choose from current and upcoming movie trailers. The kiosk plays the multimedia clip and communicates wirelessly to a second computer controlling multiple projectors mounted in the theater’s lobby. The projectors run the chosen trailer on two large 89" screens that “float” suspended in the lobby area. Two smaller circular screens run motion-enhanced sponsor advertisements.

David Livingston, President Douglas Movie Co., said, “The kiosk signage system not only offers customers an engaging waiting experience, but offers our sponsors a more meaningful way to communicate and promote their efforts.”



Microsoft Launches Experience Center Program

Microsoft has partnered with Redondo Beach, Ca-based Campaigners, Inc. to launch its “Microsoft Experience Center” pilot program. The Experience Centers are designed to make it easier for people to understand and set up the company’s latest technology products. With Campaigners’ “Delegates” or “XPros” (Experience Professionals) demystifying technology for the mainstream consumer, Microsoft expects to increase its market share in the buying and selling of PC merchandise.

“Campaigners has enabled us to create an interactive retail environment for consumers,” said Darrell West, Director, Retail Strategy, Microsoft.



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