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As its Fantom Vacuum with HEPA filter makes a second round of major retail introductions, Iona Appliances Inc. and its U.S.-based Fantom Technologies division are planning to supplement an already strong infomercial campaign with "short form" direct response spots.
Placed last year in the JC Penney catalog and at Lechmere, the Fantom Vacuum rolled out to Kmart's U.S. stores and the nine-store Incredible Universe chain this past November. A number of independent retailers, prompted by consumer demand and by increasing mass-market distribution, have added the machine this year.
"They went national with us, in all stores, although many are now sold out in an unbelievable number," said Fantom's vice president of marketing, Tom Pocock, of the Kmart account. "Fantom's success has been unbelievable."
Kmart regularly retails the cyclonic vacuum for $299; its sale price is $279. The HEPA filter, 17-foot auxiliary extension hose and accessories are part of the package.
At Incredible Universe, buyer Roy Ragsdale said: "We try to have higher tech, neat stuff. The Iona Fantom gives a feel for what we're doing. It's the latest technology. It seems to be doing quite well."
Ragsdale added that the high-tech look of the Fantom, as well as its HEPA filter and bagless operation, have been a hit with consumers.
Iona's goal was to gain U.S. market share rapidly when it became the first manufacturer to offer an upright vacuum via infomercial a year ago. The infomercial pitchis based in part on testimonials highlighting the HEPA filter's ability to clear the air of 99.97 percent of dust and particulates.
Sales of Fantoms through the televised marketing effort are in excess of $15 million, Pocock said. That would give Iona roughly half a percentage point of the U.S.'s full-sized floor-care market.
While the company attempts to further retail distribution, it is not down-playing its full-length infomercial. Approximately $1 million per month is allocated to infomercial airings over U.S. cable and broadcast television stations.
Pocock also is pitching the unit on Home Shopping Network every six to eight weeks. A stint Thanksgiving weekend produced sales of more than 2,000 units, he noted.
Thanks to high-end uprights such as Eureka's, $200 Excalibur, which have sold successfully for mass merchants and catalog-showrooms, retailers have been encouraged to offer vacuum cleaners at higher prices even though sales help may not be readily available.
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Retailers and manufacturers agree that informercial campaigns like Iona's push in store sales. "The awareness level is such that people are buying it without a full service presentation," said Nick LaPenna, Fantom's vice president of sales. "It's quite a breakthrough."
Of the Fantom, LaPenna said, "People like the overall unit and like the technology, but now we've proven that we can sell to any customer" despite the price. "If the product is properly designed and delivers value to consumer, it will sell well. The consumer is the absolute judge."
Inventory is sold out, causing the company to allocate products to retail accounts, the executives said. Production will be doubled next month, they added.
Fantom will go "short form" with a test next month of one-minute and two-minute spots that will contain the company's toll-free order number. Iona plans to put the direct-response, lead-generating spots on prime-time television next February.
"You reach a different segment of the market than you can reach with infomercials," Pocock said. "It's good to start penetrating prime time. With infomercials, you are somewhat limited with when you can run them."
The short-form spots consist of material edited from the full-length infomercial.
"Our focus will be primarily on the Fantom at the [housewares] show," Pocock said. "Expanding retail distribution will be our key thrust for the first half of the year, and in the fall, there will be new entries. We're working on the future now."
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