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Circuit City educating consumers on Digital TV

Posted Oct 22nd 2007 10:10AM by Brian White
Filed under: Products and services, Circuit City Stores (CC)

Circuit City Stores, Inc. (NYSE: CC) has said it will be rolling out quite a few new initiatives to increase customer awareness and education on the digital television transition set to occur in 2009. This should come as no surprise, as there will inevitably be millions of U.S. consumers who will needlessly fret when the analog television signals currently being broadcast cease to exist in a little under two years.

This is where Circuit City has a chance to shine. For years (well, for a decade, really), the consumer electronics chain has been beaten by larger rival Best Buy, Inc. (NYSE: BBY), and the pressure has only become more intense in recent years.

Circuit City no doubt sells quite a few television sets, although the profit misses and generally bad quarters in the last six months or so has been largely attributed to the declining profit margins on flat-panel televisions. This is the very product Circuit City now wants to trumpet as it reaches out to consumers to offer education well ahead of the actual analog-to-digital hand-off.

Circuit City CEO Phil Schoonover said that "TV is our most important business," which appears to be code for "please buy a digital TV from us as the transition gets underway and we'll go the extra mile to ensure you know how it works with the newer digital technology."

Circuit City has the opportunity to win back some customers and become relevant again in the consumer electronics category by getting something like this right. It could lead to better sales, more extended warranties, more foot traffic and cross-sales and enhanced awareness and renewed interest in the retailer. In fact, I'm pretty sure that is what Schoonover wants with this new campaign.

Here are the key pieces of the Circuit City plan:

Tags: CC, Circuit City, CircuitCity, digital television, Digital TV, DigitalTelevision, DigitalTv, HDTV, TV

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