Euro 2008 sells 11m euros' worth of TV sets

Promotional campaigns conducted before the start of the European Football Championship has led to electronics retailers selling TV sets worth almost 11 million euros. Around two months before the beginning of Euro 2008, Altex, Domo, and Flamingo launched promotions based on the results of the Romanian football team in the tournament, which entail paying back a percentage of the price or the whole sum for the acquisition of a traditional TV set, LCD TV or plasma TV. During the almost two months of promotion, the three companies together sold 25,000 TV sets, 5% of the annual market, whose volume is estimated at 500,000 units in 2008. Domo derived the highest revenues, and sold TV sets worth 5 million euros since April 18. “Sales were slightly below expectations, probably due to our timing, because we will finish the promotion on June 21,” said Lorand Szarvadi, Domo’s CEO.
The retailer offered to refund the buyers if the Romanian national team reached the semi-finals. According to company representatives, sales saw the biggest increase in June, influenced by the Romanian team’s performance. Flamingo’s promotion only included LCD TVs, plasma TVs and projectors, while the number of units sold amounted to 7,000, which exceeded the 5,000-unit estimate made at the beginning of the campaign. The market leader, Altex, focused its promotion on LCD TVs and plasma TVs with an over 37-inch screen, and, if the football team managed to reach the quarterfinals, would return 15% of the price paid. “The Euro 2008 promotion was more of a programme meant to secure client loyalty than a sales strategy,” said Dan Ostahie, Altex president.