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DRTV Product Evaluator
Value Proposition:
1. Ability to provide an Immediate Solution
Excellent: Can be used on a day-to-day basis to solve an immediate problem "instantly".
Good: Can be used to solve a problem that is likely to occur in the near future.
Average: Can be used to solve a problem that may or may not occur in the future.
2. Ability to bring about a change in lifestyle
Excellent: Can drastically improve quality of life and alter the way daily activities are conducted.
Good: Brings about a reasonable degree of improvement in the quality of life and in day-to-day activities.
Average: Does not alter the lifestyle at all but has the potential to meet specific purpose(s).
3. Unique Selling Proposition
Excellent: "It’s different"- Has the potential to grab people’s attention effortlessly and generate word of mouth.
Good: Can attract attention, but is not too different from existing products within the category
Average: Needs considerable amount of marketing effort to get audience’s attention
4. Ease of Use
Excellent: Product is very easy to use and provides a great deal of convenience. User need not refer to the catalog to understand the product’s attributes/uses.
Good: User may need to refer to the product description, but little effort is required to understand the product.
Average: Product needs a reasonable level demonstration before it can be used.
Market Potential:
1. Competition
Excellent: No competition. The product can be considered "one of a kind".
Good: There is a successful product within this category, but the product is likely to have better functionality or uses as compared to existing product/s.
Average: Product belongs to a category that is considered competitive.
2. Status of the Intellectual property
Excellent: Patent issued/ Trademark obtained.
Good: Status is pending.
Average: In the application phase.
3. Retail Category Potential
Excellent: Product Category has had prior retail exposure and has witnessed considerable amount of sales.
Good: Product Category has had prior retail exposure with less than expected sales.
Average: Product Category does not have prior retail exposure but has a high potential to reach the retail phase.
DRTV Appeal:
1. Suggested Retail Price
Excellent: Below $19.95
Good: Between $19.95 and $49.99
Average: Above $50
2. Mark-up Ratio
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Excellent: High ratio. Product has 5-to-1 markup or better
Good: Markup less than 5-to-1 but more than 3-to-1
Average: Markup 3-to-1
3. Mass Appeal
Excellent: Would appeal to majority of the US households
Good: Would appeal to at least half of the US households
Average: Would appeal to less than half of the US households
4. Demonstrable
Excellent: Product attributes/functions can be easily and quickly understood through a visual demonstration.
Good: Product functions can be understood through a visual demonstration but it requires a few minutes of demonstration and some audio explanations before the viewer understands what the product does.
Average: Product requires extensive demonstration
5. Upsell potential
Excellent: High upsell or continuity potential
Good: Limited upsell or continuity potential
Average: No upsell or continuity potential
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Mark-up ratio is determined by dividing retail price by cost of goods. The larger the markup ratio, the greater your chance of success.