Marketing Program as outlined in 10K...
Marketing
We market our marine products through boat shows and television and
tournament sponsorships, as well as through direct selling efforts to the
marketing segments set forth below.
Boat Shows:
We actively participate in boat shows throughout the United States
in order to educate the consumer and receive feedback regarding our products
at these events. This interaction is essential to development and improvement of
our products. We also include boat shows in our efforts toward the recruitment
of new dealers, who are then able to handle additional shows in their respective
trade areas.
Television And Tournament Sponsorships:
During the year 2000, we expanded
advertising of our Marine and Security products through national advertising on
The Weather Channel. The Weather Channel production staff has utilized SeaView
Cameras in the production of their prime-time weekly feature, "Atmospheres." In
November of 2000, we were the key sponsor of the APBA Offshore Classic in St.
Petersburg, Florida. The event received television coverage on the TNN and ESPN
networks. In December of 2000, we acted as the anchor sponsor with Continental
Airlines for the World Billfish Tournament in Cabo San Lucas, Mexico. A
thirty-minute television show is scheduled to air in the spring of 2001 on
various National Cable Networks, ESPN and Fox Sports.
We have also continued our sponsorship of fishing seminars with sport fishing
magazines.
Market Segmentation: Mass Market (Discount)
The discount mass market is the fastest-growing and largest segment of
the U.S. market consisting of four (4) major discount retailers: Wal-Mart/Sam's
Club, K-Mart, Costco, and B. J. Wholesale. Our product distribution in the
discount mass market should be limited to our Super-Mini camera probe, the new
Super-Mini Camera System, and SeaLite products, which fit the price tiers of
these retailers
Marine
The marine segment consists of local and small regional marine chain
stores and major retail establishments such as West Marine, Boat US and Boater's
World. These marine retailers have the personnel to provide a strong foundation
for product training and one-on-one selling. Our distribution to this market
will include all Sea View marine products, with a major focus on complete
systems. We will attempt to manage the distribution of these products within
this market segment to prevent over-saturation.
Sporting Goods
This segment includes many local stores and small regional chains and
major players such as The Sports Authority, Bass Pro Shops, Cabela's, Academy,
and Oshman's. These retailers also have the personnel to provide a strong
foundation for product training and one-on-one selling, although to a lesser
extent than marine retailers. Our distribution to this market will include all
Sea View marine products, with a focus and merchandise assortment determined by
market strength of fishing and/or marine retailers. We will also attempt to
manage the distribution of these products to ensure that we do not over-saturate
this market segment.
Department Stores
Department stores are positioned between discounters' low prices on the
bottom end, and superior customer service provided by specialty stores on the
upper end. As a result, department stores often differentiate themselves through
items. As such, SecureView cameras should be positioned and marketed at major
department store chains, such as J.C. Penney and May Corp, as a state-of-the-art
electronic gift item. In addition, we should position the SecureView product
line in several other regional department store groups. If penetration of this
market increases, we plan to ensure that no more than two (2) stores within a
mall carry the same Secure View product.
Catalogs / E-commerce
While this market place has seen a dramatic rise followed by an even
more dramatic fall, there is still a customer base that prefers to shop within
this media. Our distribution within this market segment should be limited to
those catalogs / E-commerce sites which agree that:
1.) We have complete control over all images.
2.) We create and manage all content pertaining to our products and company.
3.) Our web site must be hot linked to the retailer's site.
Within this market segment three catalogers / E-commerce companies should
fulfill our distribution needs:
o J.C. Penney which is also consistent with our department store
distribution plan and the largest on-line retail site;
o Sky Mall which meets our price tier and positioning needs; and
o The Sharper Image which meets our specialty distribution needs.
Our products distributed in this market segment should include all SKU's within
the product line. We will not consider additional partners in the market segment
unless one or more of these companies fails to place our product or fails to
obtain sufficient sales of our products.
Specialty Stores
The home improvement market group and specialty electronics retailer market
group are two channels in our distribution plan. Home Depot, Lowe's and True
Value are the major players in the home improvement market. Placement of our
products should be limited to two of these three companies. Radio Shack and Best
Buy are the two major companies in the specialty electronic retailer market
group. Placement of our products in this market should be considered a future
project.
Commercial
Commercial Security is a segment of a multi-billion-dollar industry, spanning
from high-end consumers to enterprise-wide contracts for hardware and services,
schools, municipalities, and institutions. Approaching the market through
manufacturer's representatives, direct initiatives with large wholesale-to-trade
resellers, and specialty sources such as SuperCircuits and MCM electronics, are
all key strategies for rapid development of this market.
Government
Our teaming agreements with several third-party government contractors
have placed our products in front of buyers and decision makers within the
Federal Government. Product cataloging to meet the guidelines of the General
Services Administration (GSA) enables agencies at all government levels to
procure our products from within existing contract vehicles. Online GSA-enabled
sites such as the 8-A Mall further streamline the purchasing process, allowing
authorized purchasers to use pre-approved FAST cards to obtain products.
Management believes that it has significant potential to develop the
sale of our product to government agencies even though this market segment has
been the slowest for us to develop. It has taken more than a year to establish
this basic level of market penetration. Ongoing efforts by our representatives
and teaming partners continue to generate commitments subject to budgetary and
fiscal-year revisions, many of which are forward-looking up to two years in
advance of actual procurements.
Legal Proceedings
The United States Securities and Exchange Commission has authorized its staff to
conduct a non-public, fact-finding inquiry encaptioned, "In the Matter of
SeaView Video Technology, Inc." The non-public formal order authorizes the staff
to privately investigate a number of issues, including disclosures regarding
financial condition and results by SeaView, periodic reports filed by SeaView,
the books and records maintained by SeaView, and statements made by SeaView to
its accountants. Regardless of the outcome, we expect to incur costs in
responding to the inquiry. |
