Peek No : 5
Aug 13, 2003

Fortnight Focus | Wish I were | BrandFact | This Fortnight that Age | Make us Work 4 you | Insight

Hello!

Thanks for your overwhelming support. We are also swept off our feet by your sample research requirements.

We have been receiving a lot of mail asking us to convert "Marketspeek" into a weekly newsletter. These have gained momentum in the last two fortnights. I am glad to share the news that we have succumbed to this positive pressure. Yes! "Marketspeek" is becoming a WEEKLY, starting with this issue.

The research team at our end is also equally pleased to work on this weekly exhange of ideas. The change however, is only in the frequency of circulation. The essence of Marketspeek remains the same and it will continue to bring you inspiration and information as before.

Time now to get down to business.

We have learnt valuable lessons for sure. Be it the design of the contents or the exciting sample assignments, it had helped us gain key insights on what you like. Which is why we are focusing on "Education" in this issue.

But before getting into "Education", we will start off with a peek into our economy and its performance.

Chain Store Sales

Sales increased by 0.8 % in the week ended August 2, 2003. This is a 3% jump compared to the same week the previous year. This level has also moved up by 2.3 % compared to the previous week. The prime mover of sales rises at U.S. chain stores was the discounting and sales tax holidays extended in some states.

Consumer Sentiment Index

The July consumer sentiment index has increased to 90.9 as against 89.7 in June. This increase is attributed to the weakening of consumer expectations while current conditions are in an improvement mode.

Agricultural Prices

U.S. Farm Prices have dwindled from the previous month but have increased by 5.1% when compared to the previous year.

Motor Vehicle Sales

Sales of motor vehicles in July have improved to a 14.0 mn. unit selling rate for domestic light vehicles. This level is the strongest so far in this year and is the best since December 2002, during which it hovered at 14.9 mn. unit rate. The spurt in sales is due to stepped up discounting activities to reduce an inventory overhang. Also, the total demand for vehicles rose to 17.3 mn. units in July.

Happy Peeking!

Editorial Team
Marketspeek
Executive Editor - Dr. Sharon Livingston
Editor - Vijay

Fortnight Focus

Education in America There are close to 94,000 public elementary and secondary schools in US. 98% of schools are regular schools while the rest are alternative schools. The average number of students in a primary school is around 440. On the other hand, the average number of students in a middle school is close to 600. The number crosses the 700 mark in a typical high school. Enrollment in public elementary and secondary schools is estimated to reach 48 million in 2005. Federal support for education was in the neighborhood of $147.9 billion in 2002. The prime objective of reform programs is to offer a wide choice to parents on which school to send their children to.

Vital Statistics The state with the most number of school students is California with more than 6 million of them. California is followed distantly by Texas with around 4 million school students. The Districts of Columbia and Wyoming are the states with lower numbers of students. The number is reported to be fewer than 100,000 students. Females outscored males in reading performance across all age groups. During the last 10 years, the number of associate’s degrees awarded has increased by 20%. The number of such degrees awarded stands at around 0.6 million. In the same period, the number of bachelor’s degrees awarded has grown by around 15%, to reach the current level of 1.25 million degrees. Among employed adults aged 25–64 years, 75% of those who participated in adult education have received financial support from their employers

Analysis - US Education

• Today, almost 85% of the parents of kids in the age group of 6 to 12 years have completed at least high school. Schools can benefit if they consider the ability of these parents to play a supportive role in making kids learn. They can also align the educational framework accordingly.

• The number of households with more than 3 children is on a decline. Contrary to this, the number of households with fewer children (1 or 2) is on the rise. This indicates the possibility of extra care and increased household incomes for educating kids. The challenge for schools however, is to provide an ambience that will offset the lack of brothers and sisters within families.

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Wish I were

Richard Thalheimer - A sharp focus

Imagine becoming a millionaire by selling concepts like this one: Your life will be immeasurably better if you spent $59.95 on a device that will trim your nose hair!

That's exactly what Richard Thalheimer, the CEO and founder of the Sharper Image has done so successfully - since 1977. This gadget guru built a $395 million company by marketing ordinary gizmos in a snazzy new way. A concept that has now been copied by almost a dozen catalog companies and a handful of retailers, not to mention plenty of online sites.

He started out simply by targeting people like him: men who like gadgets. In 1977, he was a runner, and he wanted to buy a digital chronograph wristwatch. It cost $300 and was a new product that just about every runner coveted. The manufacturer had advertised in Runner's World, but had not listed the places where it could be bought. Thalheimer wondered why he shouldn't take up the task of selling it - by mail order. And entered into an agreement with the manufacturer to do just that.

He ran a full-page ad for it in Runner's World: 'Finally, a chronograph that keeps up with the amazing Walt Stack.' And that was the turning point for his fortunes. He made about $300,000 in clear profit the first year and realised that he could have great fun and make loads of money too. He went on to follow the same strategy on some other products that nobody had ever heard of. Like the cordless telephone, the first radar detector; and a little computer you wore on your belt to try to keep track of your calorie burn. 'Finally, a computer for losing weight!' said his ad.

He continued to look for what he called `screaming winners' - products aimed at transforming the way people work, exercise, and groom. But the market soon became flooded with other retailers who were copying his formula. He realised that he needed to design and create his own products if he wanted to survive. The first product that his company came up with was a tie rack that rotated. And today, they manufacture two-thirds of everything they sell.

Recently, the Catalog Age magazine celebrated "The 10 BEST Catalog Concepts Ever". The Sharper Image ranked high on the list among the very best. Alongside venerable mail-order institutions such as Sears, L.L. Bean and Harry & David. And Thalheimer is still going strong, in his own specialised niche - `selling things no one else has'.

For further reading:

http://www.fortune.com/fortune/fsb/specials/innovators/thalheimer.html

http://shop.store.yahoo.com/sharperimageeurope/brief-history.html

http://ionic-air-cleaners-purifiers-filters.com/sharper-image.html

http://www.thespotlite.net/member/shrp0300.htm

http://www.piseries.com/gifts-flowers/gifts/cj/the-sharper-image-europe.htm

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BrandFact

Thomas Edison’s first major invention was the quadruplex telegraph. Unlike other telegraphs at the time, it could send four messages at the same time over one wire.

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This Fortnight that Age

Aug 8th, 1899 - The refrigerator was patented by A.T. Marshall of Brockton, Massachusetts.

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Make us Work 4 you

Our research team will be glad to work on a research assignment for you. Download the proposal requisition form and commission our cost-effective secondary research services.

Click here for proposal requisition form.

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Insight

One person with a belief is equal to a force of ninety-nine with only interests.

- John Stuart Mill

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If you are looking to subscribe to our Executive Editor - Dr. Sharon Livingston’s newsletter on primary research and projective techniques, send a blank email to slivingston@aweber.com

Disclaimer
The information presented in this Newsletter is not based on any primary research undertaken exclusively for this purpose; it is based on secondary sources of information, as current as the researchers were able to collect from the sources. However, should any specific client need up-to-date information on this (or any other) segment, they may commission Executive Solutions to do such research.