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Learning with ease

Sector Guide Back to School
Aug 27

Educational software is often described as an evergreen market with steady sales all year round. However, the Back To School period can often provide an important sales boost for retailers. Matt Grainger talks to some of the sector's main players and covers some of this year's key products�

The summer holidays are upon us. For kids it means six weeks of sun-fuelled free time; for parents its six weeks of stress-induced hair loss. And for the educational software sector it's an important refresh period that can provide a considerable sales spike.

For retailers, educational software offers product longevity as the market rejuvenates itself annually and – for those who make the most of it – the market can offer good turnover and profit margins.

With an increasingly target-based education system, there is no shortage of parents who are willing to try and pry their children away from the television or console to give them a head start.

"We all want our kids to do well at school, so there are times at home when they need to work on their learning skills rather than their high scores," says Grant Hughes, PR and marketing manager at Focus Multimedia (right). "If your youngest needs to brush up on arithmetic or spelling, or you have an older child researching a school project, educational PC software is the ideal medium. Not only does a CD-ROM based resource prise kids away from the games console, but it also blocks out other distractions like the internet."

Steve Powell, sales director at Avanquest says: "Every child from nursery up to graduation uses their computer for homework and study, with the PC being the main learning aid within the home. Parents can now use computers to help their children in all aspects of the curriculum and are therefore generally more than happy to invest in their children's education, making it an easy sale. Education software is also a natural fit for stores running back to school promotions as it complements books very well."

Although the National Curriculum is under almost constant review, with recent politically motivated aspects like health and citizenship coming in to the public eye, core subjects such as languages and the sciences remain largely unchanged and it is these often areas that see investment from consumers.

However, Powell (right) highlights the need to keep up with the curriculum: "We work with many education specialists including Dorling Kindersley and Letts, which gives us access to the latest material and, very importantly, allows us to update products as the curriculum changes. To illustrate this point, we have just updated our GCSE range to coincide with curriculum changes introduced last year. We have also recently started publishing the Disney education range and many of these products were a collaborative effort between teachers and the development team."

Avanquest's Letts range, for example, has seen continued popularity due to its focus on core subjects and the brand has been associated with revision and study aids for over 25 years.

"There is clearly an ever-present need for software that builds a child's confidence and learning skills in the comfort of their own home," offers Hughes. Additionally, software packages that teach basic skills such as reading, writing and arithmetic appeal to parents who want to see their children get a sound basic knowledge in these key areas.

Developers are keen to meet this demand; Focus' Jump Ahead: Starting School and Avanquest's My First Toddler School are ranges made for the four to five age bracket that aims to give a head start to those kids that are about to start school.

Although core subjects remain a staple of the industry, all agree that there is still room for growth and development.

"Brain training and education has become a very popular category, promoted largely by the growth in the DS market. This in turn has driven an expansion in the retail landscape as retailers recognise its potential to attract the entire family into stores," says Powell.

"New retailers and specialist on-line sites will continue to emerge and grow as new products are launched. From Avanquest's point of view, updating ranges such as Disney's educational range and the DK encyclopaedias has allowed us to place these titles in more stores across the country."

Hughes says that Focus will carry on evolving its core products: "We will continue to develop the Jump Ahead range, which has served parents and their children well for years and continues to do so. Encyclopaedia Britannica 2008 Ultimate Edition is the UK's best-selling encyclopedia software and it has adapted to the digital age by integrating updated online content.

"We have high hopes for Encyclopaedia Britannica 2009 Ultimate Edition which Focus will publish in October 2008, and we have every reason to believe that we can continue to grow this sector."

In recent years, as Britain has been binding itself closer to Europe and the prosperity of nations such as India and China grows, language software has proliferated. There is a huge selection of programs now available – ranging from French to Finnish and Chinese to Chuvash – including Focus' Teaching You software, Avanquest's Berlitz range or EuroTalk's Talk Now titles.

There is also growing interest in software that teaches music, especially after the runaway success of a certain console based guitar game. Increasingly children (and probably adults too) are turning to their PCs to aid their quest to become a genuine rock god, while parents will find that software is significantly cheaper than regular music lessons.

A less welcome development has been increased competition from the internet where educational resources can cover an array of styles from the grainy home-made tutorials of YouTube to the asseen- on-TV style of the BBC's online education pages. Despite this, evidence shows that parents continue to buy educational software at retail.

Hughes remains optimistic about the propects: "I'm sure there are some good web resources out there, but most parents have so little time on their hands that searching the internet for suitable educational content isn't always an option. Convenience is the key in this market, but just as important is the fact that the majority of our target audience still like to have a tangible, boxed product that they can hold in their hands."

It's clear that the retailer can ensure a good margin from educational software especially in the latter part of the summer holidays when parents are already spending on educational peripheries like stationary, uniforms and pencil cases.

Powell advises: "Make sure you stock a comprehensive range and stick with UK-specific titles and brands that parents know and trust. Secondly, offer different price points to capture both the impulse purchase and the considered purchase. Finally, promote your range hard during key revision periods like Easter and Back To School."

Citing Focus' range, Hughes advises: "Start by stocking an established range of pre-school and early learning titles like Jump Ahead, which have a suggested retail price of just £9.99 each. These are low-price, low-risk inventory.

"Month in, month out, Jump Ahead are proven best sellers at retail. The brand has a fantastic reputation amongst parents in the UK, which has resulting in sales of over 350,000 units to date and a prestigious Kids Superbrands award.

"At the other end of the price scale, Encyclopaedia Britannica 2008 is an all-inone educational resource that retails at SRP £39.99 and provides retailers with a healthy profit margin."

Although no-one pretends that these programs have the same pricing power as high-profile games, a well-placed product can still provide a good boost to inventory. As always, a good point-of-sale is essential but with educational software; if its visibility is good then its sales potential is good and with a broad range of prices, the retailer can ensure that it has a programme to suit every bracket.

Recommendations

Jump Ahead: Starting School (Ages 4-5)
Publisher: Focus Multimedia
RRP: £9.99

Packed with 16 activities that teach children the essential skills for starting school, this version of the award-winning original features new graphics, extra phonicsspecific activities and skill assessment technology. Kids will join Hopsalot the rabbit and friends to explore an interactive classroom where fun, music and games are the reward for curiosity.


Encyclopaedia Britannica 2008 Ultimate Edition
Publisher: Focus Multimedia
RRP: £39.99

Ideal for homework, research or for swift access to information, the Encyclopaedia Britannica 2008 Ultimate Edition provides a safe learning environment that is suitable for the whole family, with three age-specific databases. Features more than 100,000 articles, atlases, vivid images, videos, Britannica BrainStormer, magazine articles, timelines, the Classics and more. Includes a years free subscription to Britannica Online.


Letts GCSE Multipack
Publisher: Avanquest
RRP: £24.99

Packed full of helpful advice and vital information to help prepare for exams. The program improves exam technique using mock exam papers and uses an extensive testing section to identify areas that need more focus. Includes an interactive revision planner, daily tips and a help facility for every screen. Covers GCSEs and Scottish Standard Grade.


Play and Learn: Reading and Counting (Ages 3-5)
Publisher: Avanquest
RRP: £4.99

Designed to help encourage literacy and numeracy skills in pre-schoolers. A variety of fun activities develop basic skills using simple phonics, numbers and shapes, sound recognition and memory exercises.


eMedia Rock Guitar Method
Publisher: Avanquest
RRP: £34.94

Rock Guitar Method makes learning the guitar fun with over 100 step-by-step audio and video lessons featuring songs in the style of Ozzy Osbourne, Nirvana, Green Day, AC/DC and more. The innovative teaching style presents rock songs, chords, riffs and gear tips in an exciting, fast-paced learning format that doesn't require any previous music experience. Instructor Charles McCrone guides you through a variety of techniques needed to play rock, punk and metal.


Teaching You French
Publisher: Focus Multimedia
RRP: £9.99

Teaching-you French gives you all the tools you need to experience real language the way it is used by native speakers in a fun, interesting environment. With over 9,000 words and a range of activities and games for all ability levels, Teaching-you French will have you speaking and understanding French in no time.


Talk Now Hindi
Publisher: EuroTalk
RRP: £24.99

Talk Now is the world's best selling language software. The range is made for all levels of proficiency with a broad array of languages to learn. This beginner package covers a variety of basic topics and vocabulary. Test yourself against intelligent software that will remember your mistakes and target weak spots. This software can also be integrated with your iPod enabling users to learn on the move.


Full Marks: Key Stage 3 Triple Pack
Publisher: Idigicon
RRP: £9.99

The UK's most popular revision aid, this covers the three core subjects. Tests are presented as games with ray-traced graphics, multiple music tracks and digital sound effects. To motivate your child regardless of their ability, the games are initially easy and become increasingly challenging. The results are then analysed by the computer and an itemised report then illustrates strengths and weaknesses against the targets set down by the National Curriculum.

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