Why Blu-Ray hasn't taken off?

Four years ago we were talking about the digital revolution, the phenomenon that was Blu-Ray, which offered extra-ordinary capabilities above the standard DVD. In recent years Blu Ray devices have suffered and struggled to maintain a captive audience for many.

Standard DVD remains the most popular type of player used, at nearly 80% of respondents, seven times more than a dedicated Blu-Ray device in a study by Mintel. Mintel estimates that 627,000 Blu-Ray players were sold in 2009, up by 57% on the previous year. Despite unit sales being five times less than standard DVD players, the technology contributed over 22% of market value. This is partly due to the fact that although prices have come down in recent years, they are still more expensive than the average DVD player.

The major difference between Blu-Ray and an ordinary DVD is the HD content, being a high definition disc; the image transferred is much clearer and much more vivid compared to its equivalent DVD. Furthermore added bonus material already on existing DVD’s is upgraded on Blu-Ray with the opportunity to extend or change the ending of a particular film.

Furthermore although Blu-Ray DVD’s will only play blu ray DVD’s this rules out most peoples entire DVD collection making it difficult for people to switch easily, I could not see people re-buying their existing DVD collection just because of the added bonus features on the Blu Ray equivalent. Combined with the average price of a Blu-Ray player you can see why people prefer to purchase the ordinary DVD over the higher priced equivalent. Even more so when most people already own an ordinary DVD player and the old adage ‘if it is not broken why fix it’ rings in many people’s ears.

We should also be aware of the current economic forecast, rising inflation combined with low interest rates means pockets are being squeezed much harder meaning consumers are price conscious and will only pay for goods that are only essential. It could be classified that Blu-Ray devices offer superior added value, but whilst the DVD is still around there is only going to be one winner. In most cases wherever the DVD is around, Blu-Ray will continue to struggle.

It seems that Blu-Ray has been launched ahead of its time, although the recession could not have been predicted many people still own a DVD player and are reluctant to switch to a higher priced alternative. Consumers are slowly getting round to the concept of HD and in less than 3 years the digital switch will mean that consumers will continue to learn about the latest technology. Blu Ray technology could perhaps come true to most people’s homes in several more years’ time. 

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Voucher Syndrome: Are sales promotions the most appropriate way of combating a recession?

With the recovery of the recession still continuing to affect the nation it seems that we are relying more and more on vouchers to reward ourselves. We have become so obsessed by vouchers that we now tend not to go out unless we have a coupon or voucher that gives a discount off our food bill.

Sites such as Groupon and Myvouchercodes have soared in recent years. A voucher is type of sales promotion tool used to encourage repeat business. Although coupons are a massive craze in the USA, in recent years the UK has become obsessed by the term..

Whilst vouchers come with their benefits, some voucher schemes are often restricted to certain times of the day or days of the week. Whilst this restricts the customer, for the  restaurant it encourages business at times when they perhaps would not have been expecting it. A classic example of this would be the rise in pre-theatre dinners where consumers are enticed in for 2 courses for £9.99 before 6pm.

Managing director of Top Table reported in 2008 the number of eateries offering promotions and discounts through his website have risen by nearly 70% over the past 12 months to 1,127. Suggesting vouchers and coupons are of growing importance in the market and outlets are making greater use of the internet and email.

A company may use a voucher scheme to encourage customers to spend money in their restaurant or bar. Although some companies are afraid of using schemes because they feel that they devalue the brand. This has become apparent with places such as Pizza Express who regular use vouchers as an attractant to potential customers. In my opinion although this is a short term solution, other restaurants have achieved this by the use of vouchers over a short and limited amount of time. This has been highlighted in the case of Wagamama’s, a Japanese chain of restaurants, whilst still considered high priced food, they offer 2for1 meals at certain times of the year to encourage demand.

Are you a voucher addict, do you swear by vouchers  and search before you go out for your next meal? Are you a small restaurant or pub looking to attract new business through a voucher scheme but afraid you don’t know how to, why not get in touch.