PiperJaffray: some retail clerks 'never heard of' Zune
A recent survey of consumer electronics retail stores conducted by PiperJaffray reveals that salespeople are recommending Microsoft Corp's Zune digital media player just 8 percent of the time.
In a research note distributed Tuesday, analyst Gene Munster said the 40-store survey found that clerks only recommended the Zune 8 percent of the time, while they recommended the iPod 75 percent of the time.
"In fact, some MP3 player salespeople had not even heard of the Zune, despite the fact that they sold it in their store," he wrote.
Munster said Microsoft appears to be targeting its Zune advertising campaign towards trend-setting teenagers, placing ads in magazines like Rolling Stone and Esquire in order to reach the target audience.
His checks show that Zune ads are also being placed more selectively than iPod ads, noting that among weekend holiday ads from three big-box retailers -- Target, Circuit City, and BestBuy -- only one showed a Zune while all three had iPod ads.
"These checks are in-line with our thesis that the Zune is off to a slow start; from sales perspective as well as the marketing perspective," he wrote.
Similarly, Munster noted that during the week of its launch, Zune held the 7th spot on Amazon's top 10 best-selling MP3 players list but has since slid down the rankings.
"The buzz that Microsoft was able to generate for the Zune's launch clearly helped the player in its first week, but much of the publicity took the form of Zune/iPod comparisons," he told clients.
Also recommended more often than the Zune were digital media players from SanDisk, which garnered praise from approximately 10 percent of salespeople surveyed by Munster. Digital media players from Creative and Samsung followed with 5 percent and 3 percent of the recommendations, respectively.
"I've never heard of the Zune," one digital media player salesperson reportedly told the analyst. Another asked, "Who makes that (the Zune)?"
In a research note distributed Tuesday, analyst Gene Munster said the 40-store survey found that clerks only recommended the Zune 8 percent of the time, while they recommended the iPod 75 percent of the time.
"In fact, some MP3 player salespeople had not even heard of the Zune, despite the fact that they sold it in their store," he wrote.
Munster said Microsoft appears to be targeting its Zune advertising campaign towards trend-setting teenagers, placing ads in magazines like Rolling Stone and Esquire in order to reach the target audience.
His checks show that Zune ads are also being placed more selectively than iPod ads, noting that among weekend holiday ads from three big-box retailers -- Target, Circuit City, and BestBuy -- only one showed a Zune while all three had iPod ads.
"These checks are in-line with our thesis that the Zune is off to a slow start; from sales perspective as well as the marketing perspective," he wrote.
Similarly, Munster noted that during the week of its launch, Zune held the 7th spot on Amazon's top 10 best-selling MP3 players list but has since slid down the rankings.
"The buzz that Microsoft was able to generate for the Zune's launch clearly helped the player in its first week, but much of the publicity took the form of Zune/iPod comparisons," he told clients.
Also recommended more often than the Zune were digital media players from SanDisk, which garnered praise from approximately 10 percent of salespeople surveyed by Munster. Digital media players from Creative and Samsung followed with 5 percent and 3 percent of the recommendations, respectively.
"I've never heard of the Zune," one digital media player salesperson reportedly told the analyst. Another asked, "Who makes that (the Zune)?"
Comments
When the store section says "MP3/Zune" instead of "MP3/iPod".... maybe Zune will stand a chance.
This just reminds me how used we are to unscientific data and take it for granted. I sincerely hope the actual reports had more depth to them. If I was a client, I wouldn't trust this data at all.
While waiting in a very long line at Circuit City on Black Friday, the sales girl in the "MP3/iPods" section, was trying to sell the zune and ended up going to the iPod when they never showed any interest. She owned a zune and was showing it them. She tried to show off the wireless capabilities, but apparently it was turned off on the store model because she couldn't make it work.
When the store section says "MP3/Zune" instead of "MP3/iPod".... maybe Zune will stand a chance.
If I were trying to sell an MP3 player, I wouldn't step foot near the zune. With all the problems people have with it I'd feel bad trying to sell one to somebody.
I remember only last year asking about MP3 players in my local electronics store, Dixons, and the salesperson trying to mention anything other than the iPod. Apple is still a dirty word in lots of places.
We're missing 5% in Jun-2005. Other months add up to 100%.
This just reminds me how used we are to unscientific data and take it for granted. I sincerely hope the actual reports had more depth to them. If I was a client, I wouldn't trust this data at all.
I noticed that too... Like look at this year:
75 + 10 + 5 + 8 + 3 = 101%??
Even rounding error shouldn't do that...
Afterthought: Perhaps the missing 5% is for models that are no longer in the $200 range or are no longer being produced. That still doesn't explain the 101%...
-Clive
I noticed that too... Like look at this year:
75 + 10 + 5 + 8 + 3 = 101%??
Even rounding error shouldn't do that...
74.5% + 9.5% + 5.1% + 7.7% + 3.2% = 100% (examples only)
Yet rounding to the nearest whole number would yield 101%.
You have to give the Zune a chance! Admittedly it's had a quiet launch but the iPod wasn't the success it is now straight away. I don't see the Zune gaining the kind of market share Microsoft are hoping for but I'm sure they'll do reasonably well.
Good point. Watching the iPod launch keynote last month during the 5 year anniversary was interesting. The audience didn't seem as excited about the iPod release and I'm certain many thought that Steve had taken a wrong turn with Apple.
Good point. Watching the iPod launch keynote last month during the 5 year anniversary was interesting. The audience didn't seem as excited about the iPod release and I'm certain many thought that Steve had taken a wrong turn with Apple.
You can't compare a slow Zune launch with a slow iPod launch. MP3 players were new things back then, people didn't know what to think of them. Today, the market is very saturated with MP3 players, namely, the iPod. People know what to think. I think the Zune will be on the top of the non-iPod players, but will be lucky if it takes even 1 or 2% of iPod's market. (no, I have no proof for that statement, but it's my gut feeling
You can't compare a slow Zune launch with a slow iPod launch. MP3 players were new things back then, people didn't know what to think of them. Today, the market is very saturated with MP3 players, namely, the iPod. People know what to think. I think the Zune will be on the top of the non-iPod players, but will be lucky if it takes even 1 or 2% of iPod's market. (no, I have no proof for that statement, but it's my gut feeling
I understand your point but I was comparing the slow acceptance of the iPod/Mp3 player with the slow acceptance of the Zune. I know many won't ever consider a Zune as they already love their iPod and use iTunes exclusively.
Why in the world would anyone want these features? Can the FM antenna be good enough to work and who still listens to radio when they have their music/videos with them? How much cost, weight and depleted battery time does the wi-fi add? What is the wi-fi really good for; certainly not for fast uploads?
It does not appear to be the hot items this Xmas, even with the big marketing push from MS. More importantly it is not a global product. Apple sold the iPod worldwide right from the start. MS will not be selling the Zune outside the US for a year, so here in the UK the iPod really has no competition from MS.
If Zune is going to be successful it is going to take some time, maybe years, and it may never reach the current sales success of the iPod (which is a moving target). MS are always going to be playing catch up with branding, awareness, desirability and style, not to mention ease of use, iTunes and features.
Zune is good news, as Apple will need to make more effort to be competetive on both price and features, good news for the customer.
Ian
You have to give the Zune a chance! Admittedly it's had a quiet launch but the iPod wasn't the success it is now straight away. I don't see the Zune gaining the kind of market share Microsoft are hoping for but I'm sure they'll do reasonably well.
I remember only last year asking about MP3 players in my local electronics store, Dixons, and the salesperson trying to mention anything other than the iPod. Apple is still a dirty word in lots of places.
I remember the iPod launch well. But unlike when hearing about the Zune, I was "wow" when I hear about the iPod. I had been looking at MP3 players for a couple of years, but it was ridiculous how little storage there was: 32, 64, 128 and maybe 256 MB were about the only capacities, and the 128 MB + ones were hundreds of dollars! Then came the iPod: 5 GB - Oh my goodness, I knew I had to have one, and, "Apple gets it" were my thoughts. And I bought a bunch of AAPL.
I can't even finish reading articles about the Zune because there is nothing interesting there. If the Zune gets any market share, it will be on the merits of marketing, not the player itself, in my opinion.
The iPod was not an evolutionary change, it was a revolution in thinking. Before iPod we listend to music as albums. Now we listen to random play. Even radio stations have changed their formats because the iPod created a demand for more variety: there are now radio stations were you might hear Miles Davis and Blink 182 back to back.
The iPod changed the music industry in so many ways. The Zune won't change anything, except if the beaming of songs takes off that might be cool, but not that cool.
I was at a Best Buy on Sunday and my 10 year old son was looking at the Video iPod. A woman comes up to the salesman and tells him how her 19 year old daughter had asked for an iPod. This salesman did everything he could to steer her away from the iPod, including telling her all of the usual propaganda "iPod forces you to buy from iTunes, only plays Apple music, no other music available". My 10 year old started laughing at the salesman, and I just shook my head. The woman starts asking my 10 year old questions and he eventually sold her a new Nano. The salesguy was not pleased. I am surprised that there is so much anti-Apple among the salesfolk still. Is it just that other brands commission higher for the salesman?
That stuff makes me puke. I just don't understand all of the anti-Apple sentiment. Most Mac users have chosen the Mac and for that reason have experience with multi platforms.... but sales people like that (and I had my full share of salepeople trying to steer me away - when CC sold Macs, etc.) probably have never actually used a Mac before - so how can they be so adamant about something they don't know....
I though for sure that becuase the iPod was actually popular with not just Mac users but a lot of Windows users that collectively they would see Microsoft for what it is... a crappy imitator that buys it's success...
You know, I wouldn't be surprised in the least if Microsoft was paying retailers a little somethin'-somethin' on the side just to do crap like that.... Didn't they get busted for that...... ohhhhh that's right.... they can do whatever they want now that the DOJ has been DOA since 2001....
Zune is good news, as Apple will need to make more effort to be competetive on both price and features, good news for the customer.
Let's not forget that MS will also need to pay car stereo makers, automobile and boat manufactures to make their devices "Zune ready"... and I really don't see that happening, especially if MS expects exclusivity.
We'll see how that plays out.
I was at a Best Buy on Sunday and my 10 year old son was looking at the Video iPod. A woman comes up to the salesman and tells him how her 19 year old daughter had asked for an iPod. This salesman did everything he could to steer her away from the iPod, including telling her all of the usual propaganda "iPod forces you to buy from iTunes, only plays Apple music, no other music available". My 10 year old started laughing at the salesman, and I just shook my head. The woman starts asking my 10 year old questions and he eventually sold her a new Nano. The salesguy was not pleased. I am surprised that there is so much anti-Apple among the salesfolk still. Is it just that other brands commission higher for the salesman?
In your case, it couldn't be because of commission because Best Buy doesn't pay their salespeople commision. But, I think that anti-apple sentiment towards the iPod would be extremely rare. It's got such a huge market share, any salesman who tries to steer away from it would be an exception/nut.
That's not the same however for Mac vs. Windows.
Personally I suspect Microsoft is going to try to build the Zune market through its XBox base, and ignore the rest of the market largely for now. I'm willing to bet they are banking on beating Sony in the console market and leveraging that into a solid music player market; putting music focus in the living room rather than on the computer, under the assumption that Apple's got the computer market locked.
We'll see how that plays out.
How? I already have my 80 Gig Ipod connected to my Xbox 360. How is MS going to compell me to hook a Zune up.
Unless... Here' s a thought. What if they tied the new video D/L service on the Xbox to the Zune... You could download HiDef movies to your 360 and transfer them to your Zune for protability.
I know I can D\\L movies through Itunes, but my computer is not hooked to my T.V. and the resolution is all crappy on a big screen.
Hmmm... Maybe MS is on to something after all.
Aaron Harmon
So I download the Zune store and stream all my music/pics/videos to my xbox. I also can now download HD movies for 6 bucks and 3 bucks for SD movies on my xbow. And not in this tiny crappy resolution.
I look for Zune/Xbox360/HD downloads to be all tied into one. The key player a lot of people are forgetting about is One Care. The backup features of this software is really nice and could easily become part of this equation.
Will it work, sorta
Will they market it well, nope
Will they dump millions into it, absolutley
Will it piss me off, yes
Will it give me something to do, yes<complain>
yeah the zune market makes it easy if you dont have Windows Media center pc. Its almost like they said "hey this WMC didn't take off, lets include the cool streaming features in Zune store"
So I download the Zune store and stream all my music/pics/videos to my xbox. I also can now download HD movies for 6 bucks and 3 bucks for SD movies on my xbow. And not in this tiny crappy resolution.
I look for Zune/Xbox360/HD downloads to be all tied into one. The key player a lot of people are forgetting about is One Care. The backup features of this software is really nice and could easily become part of this equation.
Will it work, sorta
Will they market it well, nope
Will they dump millions into it, absolutley
Will it piss me off, yes
Will it give me something to do, yes<complain>
I still won't buy a zune, at least not in it's current form. It just seams like a downgrade from an 80 Gig G5. I know it's probably better for watching videos, which I'll admit I do a lot (I work 3rd at a hospital). Nope, I'll stick with my G5 and wait to see what the G6 or Video Ipod looks like.
As far as "the social" goes, well all my friends moved out of state after college, my new co-workers are mostly middle aged women, while they're pretty cool for the most part, most of them couldn't tell you the difference between an Ipod and a $39.00 dollar Wal-Mart special. In fact alot of them call any MP3 player an Ipod (kind of like any facial tissue is a Kleenex and any video game counsole is a PlayStation) "My son wants a new PlayStation for Christmas, it's called the 360, do you know anything about those?"
Aaron Harmon