MARKET WIRE
International Commercial Television, Inc. (OTCBB: ICTL) ("ICTV" or "The Company"), a premier, full-service international retail and direct response television (DRTV) marketing company targeting the multi-billion dollar health and beauty industry, is pleased to announce the progress of the recent marketing initiatives undertaken by ICTV for the Derma Wand and the Company's DermaVital skincare line.
The Derma Wand infomercial continues demonstrate the Derma Wand exceptional skin rejuvenating qualities and generated orders direct from U.S. consumers. During a 45 day period from August 1st to September 15th the television and web order value including a 1 month continuity supply of DermaVital skincare products was $705,000.60. This figure represents individual Derma Wand system kit orders of 4579 units.
The Derma Wand infomercial aired on nationwide cable networks such as Lifetime, The ABC Family Channel, HGTV and approximately 70 broadcast stations including the major markets of Houston, Los Angles New York and Chicago. The media spend during this 45 day summer broadcast period was $270,000.00. Traditionally in the Direct Response Television ("DRTV") industry media spends are low during summer months as television viewership and revenue results are not as robust as fall, winter and spring television broadcast periods. ICTV is presently in consultation with the Company's media agent and media funding partner to significantly expand the media spend for the 4th quarter television broadcast months and 2007. As mentioned in the Company's news release of May 19th 2006. Media Funding Partners Inc. monthly $2,000,000.00 line of credit extended to ICTV, is now being employed to fund present and future media spends.
DermaVital Skincare Club
Over and above the continued Derma Wand orders, another significant development is that membership in the DermaVital Skincare Club continues to expand rapidly. The club offers a 30 day supply of the Company's DermaVital skincare range automatically charged to the consumers' credit card and conveniently shipped to members monthly. The DermaVital Skincare Club price of $33.99 includes a unique, proven and very effective DermaVital skincare range that is sold directly to a member, bypassing conventional distribution channels and allowing for substantial profit margins for the Company and significant savings for the purchaser. 51% of the customers who ordered the Derma Wand from the infomercial offer joined the Derma Vital Skincare Club and purchased product. On a monthly basis, the DermaVital Club membership will generate exponential revenue growth for the Company. The DermaVital Skincare Club will produce an annual gross revenue figure of $407.00 per each member retained. Based on that figure and without DermaWand unit sales included, a DermaVital Skincare Club yearly membership of 100,000 clients, would produce an annual gross revenue of $39,600,000.00. ICTV is initiating a relationship marketing program from its outbound call center which contains various objectives, one being an effective strategy for maintaining a high membership retention rate. With an expanded and sustained Derma Wand infomercial campaign, ICTV will have the ability to develop a self sustaining DermaVital Skincare Club offering many "Fountain of Youth" products and brands developed by ICTV, all with an on-going revenue stream from an ever-increasing membership in the DermaVital Skincare Club.
Manufacturing Increases
The Company has just received 5000 Derma Wand kits at its fulfillment center and believe this will satisfy consumer demand generated by the continued broadcasting of the Derma Wand infomercial till Nov 1st 2006. The Company has increased manufacturing capacity and expects to receive 15,000 Derma Wand kits at its fulfillment center by November 2nd to satisfy anticipated US consumer demand generated by the increased media spend. Management is now preparing the manufacturing strategy for 2007.
Expanding Distribution Channels
With respect to other distribution channels, the Derma Wand and its associated products has begun to penetrate retail beauty salon market in the US. The Company has shipped orders received and Derma Wand is now selling on the salon retail shelves. The Company is presently in development discussions with retail representatives for a US nation-wide mass retail rollout for 2007. The Derma Wand also is presently appearing in national print catalogues and orders have been processed and delivered.
Expanding Business Opportunities
The Company will advise its shareholders shortly on international progress of Derma Wand sales and the unique "Fountain of Youth" product ICTV that will be premiering on US television in late 2006.
Mr. Kelvin Claney, President of ICTV, states, "ICTV is now in a position to rapidly expand revenues and develop a nationally recognized skincare brand for retail penetration in 2007. Mr. Claney further states, "The direct response television business model has an exceptional ability to rapidly expand profitability revenue and brand awareness for a product with a "hit show" such as the "Proactiv Solution" skincare line which has grown from a humble launch in the mid-nineties to over $650,000,000.00 in annual sales in 2005."
About the Derma Wand
The Derma Wand is a highly effective, patented and unique in-home skin care appliance that helps reduce the appearance of fine lines and wrinkles, and assists in cosmetically improving overall skin appearance.
About the DermaVital Skincare Line
The DermaVital Skin Care range has been specially formulated to enhance the effectiveness of the results achieved by using the Derma Wand. The lead product in the range is the DermaVital Hydra-Infusion Treatment and Hydrating Skin Mist, a formula that received a U.S. patent for effectively allowing water to be absorbed on to skin.
About International Commercial Television, Inc.
Headquartered in Bainbridge Island Washington, International Commercial Television, Inc. (ICTV) uses direct response commercial television campaigns and traditional marketing methods to bring high-demand "Fountain of Youth" consumer products to the marketplace. ICTV uses long and short-form infomercials to market products which it owns outright or has acquired a license to market. ICTV uses a unique marketing method of creating brand awareness through the use of profitable infomercials and live home shopping broadcasts rather than costly traditional advertising campaigns. ICTV uses this brand awareness to build sales channels for products that will be sold using DRTV through to the traditional retail shopping outlets.
Forward-Looking Statements
The matters discussed in this press release may contain "Forward-Looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to Forward-looking statements made by ICTV. You should not place undue reliance on Forward-looking statements. These Forward-looking statements involve risks and uncertainties. The actual results that ICTV achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These Forward-looking statements are based on current expectations, and ICTV assumes no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by ICTV in its reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect its business.
Contacts: ICTV Investor Relations Department 1-888-449-ICTV Email: info@ictvonline.com">info@ictvonline.com Website: www.ictvonline.com
SOURCE: International Commercial Television, Inc.
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