Peek No : 7
Aug 27, 2003

Week's Peek | Wish I were | BrandFact | This Week that Age | Make us Work 4 you | Insight

Hello! hT

Our media has become the message. And each of our media vehicles speak volumes about us and our priorities.

This week, we decided to take a peek into our nation's media habits. The emerging trends highlighted our fascination for new avenues of communication.

Our weekly coverage of our economy comes first and is followed by a peek into our media habits.

Housing Market Index (HMI)

The Housing Market Index (HMI) increased to 71 in August from 65 in July. This month's overall HMI is the highest since January 2000.

Consumer Sentiment Index

The consumer sentiment index has marginally come down to 90.2 in August. The index was at 90.9 in July when there was a weakening of consumer expectations. The further drop in this index, though marginal, only reinforces the unchanged state of consumer sentiments.

Chain Store Sales Index

Chain Store Sales Index witnessed a fall of 0.5% in the week ending August 16. Despite this fall, the year-over-year growth stands improved by 4.0%. This is the best gain since December of the previous year. The key reasons behind the fall are the absence of any sales tax holidays and the blackout in the Northeast.

Natural Gas Storage Report

Underground storage of natural gas increased by 78 billion cubic feet during the week ending August 15. This rise is in line with expectations and is likely to have a marginal impact on natural gas markets.

Happy Peeking!

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

Week's Peek

Media – America

• Television and home video continue to dominate the media patronized by consumers in USA. These two media account for more than 45% of the total consumer media market.
  
  

• The share of the print media – comprising books, newspapers and magazines - has been dwindling. These three vehicles accounted for close to 32% in the mid 90s. The share occupied by them now has dropped to 25%.

• On the same lines as the print media, the recorded music medium has seen a negative growth in the last five years.

• The stupendous growth of the Internet is the reason behind the drop in patronage for print and recorded music media.

• A ranking of the last year’s growth rate of media is of the following order:
  

Media	Growth
Internet	21.00 %
Interactive media	10.50 %
Home Video	8.80 %
TV	7.00 %

Vital statistics

• Growth of filmed media consumption, in terms of hours spent, has been rising at slower rates.

• The hours spent on non-filmed media had been decreasing till 2001. However, during the last year, the share of non-filmed media has been on the rise.

• The non-filmed media comprises radio, recorded music, print and video games. Within this category, the shares of print and recorded music are falling steeply. But, radio and video games have grown to offset the reduced number of hours spent on recorded music and print.

• Another interesting trend is visible in the consumption of media bearing advertisements. The consumption of media supported by advertising (like broadcast TV, radio and print) is falling at very marginal levels in last few years. The number of hours spent on media supported by advertising is hovering around 2100 hours.

• On the other hand, the patronage of consumer purchase-centered media – such as box office, home videos, recorded music, video games – is firmly on the rise.

 Analysis - Media

• The firm rise in the patronage of non-advertising centered media shows the emergence of core benefit-seeking consumer habits. This behavior can trigger umbrella-branding opportunities. In other words, instead of advertising messages interspersed within, the media by itself would increasingly become strong brand icons.
• Entertainment as a concept is on a redefinition spree. Increased acceptance of concepts like meditation and yoga are changing lifestyles. The patronage shown to such alternative themes will have a significant bearing on media habits. The challenge lying before the American media industry is the need to meet the content requirements of vibrant minds and to cope with a changing attitudinal landscape.

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Wish I were

Make it Big' - the title of Frank McKinney's bestseller, could well be the mantra that has made him what he is: The king of ready-made homes. And his book goes on to reveal his `49 secrets for building a life of extreme success'.

Now what exactly is McKinney's claim to success? Well, he is the number one developer and “spec” builder of ultra-luxurious residential real estate in the world. Even recently, one of his spec homes, featured in USA Today, sold for $28.5 million after being on the market for only 128 days! This property had the distinction of being the largest and most expensive home ever to be built on speculation and contained 72 rooms and 32,000 square feet. Today, at age 39, from his treehouse office overlooking the Atlantic Ocean, Frank creates the finest ultra high-end oceanfront estate homes in the world.

So, was he born with a silver spoon in his mouth? Not so, as Frank himself explains: "I was a delinquent and a trouble-making young 18 year-old... The moment I stepped off the plane in sunny South Florida, I decided to become a responsible person and leave all that nonsense behind." Frank has always believed that there are some occasions in life when you can take out an imaginary eraser and wipe the chalk board of your life clean. This was his defining moment - the one that changed his life.

The Wall Street Journal might say that he is a man `who likes to live dangerously', but he shares with us some of his major hard-won lessons. Some lessons are practical: Train yourself to take bigger risks. Create a niche for yourself in the marketplace. Persist and persevere each day. Always calculate the maximum amount of risk you can afford to take.

And some lessons reveal his own brand of philosophy: Live a life that truly rocks. And live it without any regrets.

Today, Frank is well on his way to becoming a household name because of his incredible track record. He has been featured twice on Oprah, CBS’s The Early Show with Bryant Gumbel, CNN, The Discovery Channel and other big shows. He has received Northwood's Excellence in Entrepreneurship Award and sits on the university's Florida board of governors.

But what really makes him different from other successful entrepreneurs is his distinctive contribution to the community. As he himself says: "Many of us who are blessed with the ability to succeed are obligated to help others. I truly believe that." And his actions strongly underline his belief.

For further reading:

http://www.frank-mckinney.com/index1.htm

http://www.northwood.edu/mi/pr/2002/April/mckinneypost.html

http://appraiserscafe.com/article.php?sid=2488

http://www.lifecoaching.cc/makeitbig.html

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BrandFact

Colgate was the first toothpaste sold in metal tubes rather than jars.

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This Week that Age

August 25th, 1949 - RCA announced its invention of a system for broadcasting color television.

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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

"I have failed over and over again in my life. And that is why I succeed."

- Michael Jordan

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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.