Hornby see 'weakening consumer demand'

Nicked straight from Hornby's website:

CHAIRMAN'S AGM STATEMENT

'Speaking at the Annual General Meeting of Hornby Plc, the models and collectibles Group, the Chairman Neil Johnson, will make the following statement.

I am pleased to confirm that prospects for the Group remain encouraging. Good progress has been made in transferring production of the Lima ranges from Italy to China and we expect to see sales revenues from these ranges starting in the Autumn. Our marketing initiatives in Spain will have a positive effect on sales and profits this year and, Scalextric USA is also expected to deliver an improved performance compared to last year.

In the UK however, we began to see some weakening of consumer demand during May. This trend has continued in June and July. However this is traditionally a quiet period for trading and it is therefore difficult to project future demand based on current experience. Our listings with our retail customers remain strong for the importan pre-Christmas period; based upon these listings and associated sales projections market expectations for the current financial year remain achievable.

Further development of our recent international investments will, as planned, help to offset UK market fluctuations in future years.'

The stockmarket has so far reacted with a 6% plunge in Hornby's share price. (as of 9.29am 22.7.05)

Pete

Reply to
mutley
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OUCH!

Factory tours - competitions - awards for modelling excellence - advertising outside the traditional captive audiences, after all, we are the converted - creation of a schools program to encourage young hobbyists who want more from life than pressing buttons on vacuous computer games and SMSing their mates. I mean, I can see the ad now - beautifully photographed layouts displaying emotively a range of scenes reminiscent of the great films featuring trains - with the final caption ...... get real - get hornby. Stick it straight to those video arcade mind-numb'rs

I could go on, but God knows I already have

Happy modelling!

Steve - returning hobbyist after 30+ years away from it

:)

Steve

Reply to
mindesign

I thought they just tried all that and failed? If there is any money available, I would rather it was spent on developing new products than on gimmicks like advertising. One good new model will generate more free publicity than any amount of advertising.

(kim)

Reply to
kim

One good new model will generate more free

not to what any business needs to survive longterm

new customers

Steve

Reply to
mindesign

let's try all that again

Kim said

I respond:

Free publicity where? In existing magazines, to existing customers. This will not achieve what every business needs to survive in the long term - I agree it's necessary to introduce more excellent products, but that has little impact on generating new customers.

New customers are the lifeblood, especially within a rapidly ageing existing customer base - the only way to make a new market aware is through marketing efforts, including advertising. Finally, we all found out about our hobby through advertising in one form or other - it is a myth that making a great product is the thing that results in it getting sold. A "million" businesses/people have gone magnificently broke thinking their products sell themselves.

Steve

Reply to
mindesign

You don't have to waste money on advertising to attract new customers. If you offer a good product or service at a good price word soon gets around.

(kim)

Reply to
kim

That is a dangerous myth - perhaps it explains the state of much of British industry?

Advertising and marketing go hand in hand. It is easy to waste advertising effort, that is why you have to carefully target your advertising. Eg. the products of CJM or Bassett-Lowke are not suitable for mass media advertising, whilst some Hornby products are.

Reply to
Richard Marsden

kim wrote

If that were true then we would all using Betamax videos not VHS i.e. superior technology V's better marketing

Reply to
Neil Kirby

In that case, I only have one thing to say. Claughton! ;-)

Reply to
Enzo Matrix

I was always puzzled about the advert for Hornby Live Steam. They must have spent an awful lot of money on that. They even got Sean Bean to do the narration and I shouldn't think that he comes cheaply these days. Yet I only ever saw the advert on the Hornby website and an RM CD.

I would have expected it to be shown on prime time telly. An ideal time would have been during a commercial break in a certain episode of Coronation Street, which featured Norris and Clur playing with a Live Steam set. It could have been a pretty good piece of product placement as Norris had some red and yellow Hornby boxes stacked on a chair behind him.

Reply to
Enzo Matrix

"Enzo Matrix" wrote >

It was actually shown in the middle break during the Pete Waterman railway series at the beginning of the year if I remember correctly. The viewers of that series were obviously the ones considered suitable targets.

Dave W.

Reply to
David Westerman

"kim" wrote

I believe that this is known as "viral" advertising! It seems to work well enough for a couple of telecom companies offering unlimited length calls for only a 2p or 3p connection fee. They never advertise by conventional methods and prove an exception to the usual warning of "if it seems too good to be true, etc."

Dave W.

Reply to
David Westerman

But surely the viewers of that program would already be aware of the Hornby offerings - possibly also owners of substantial numbers of hornby products!

Reply to
John Ruddy

Not one of the adverts and press releases for Hornby's new 08 shunter made me want to buy one. Reading a critical review of it in this month's Model Rail did.

(kim)

Reply to
kim

I would have thought so. Maybe the biggest moneyspinning option would be to produce a Live Steam Thomas or Hogwarts Express and to advertise it starting in August. The kids would be attracted to it because it had something to do with Thomas or Harry Potter, which the dads would possibly become fascinated by the technical aspects of it. There would be two birds killed with one stone. Youngsters to bring fresh blood to the hobby and new not-so-youngsters with a bit of disposable income.

Reply to
Enzo Matrix

"John Ruddy" wrote

I would tend to disagree! Although there is some overlap of interest between model and prototype railways, many older "trainspotters" are unaware of what is available and the high quality of today's model products.

Dave W.

Reply to
David Westerman

"mindesign" Wrote

G'day All, The trouble with Factory Visits is that the Factory is no longer a working Model Railway Factory. All of the Machines have gone and the place is now full of Lima, Rivarossi, Joueff & Arnold Moulds. And of course Old Triang & Triang Hornby Moulds. Graeme Hearn

Reply to
Graeme Hearn

Enzo is wearing his other anorak. ;-)

Reply to
MartinS

A live steam 0-6-0T??? Gordon, maybe...

Reply to
MartinS

Bister Christiad!

Reply to
MartinS

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