Pioneer Electronics Australia is a specialist brand and not a prestige one, which allows it the ability to successfully cater for both the boutique and mass merchant home audio and video markets, says a marketing expert.

Pioneer Electronics entered the Australian market in the 1970s with high-specced amplifiers and turntables for audiophiles and has since branched out into the mainstream home entertainment arena with a range of products from entry-level DVD players up to $12,000 plasmas.

The brand’s latest marketing ploy has seen the Pioneer LX range of full HD plasmas move from exclusive distribution in specialist audio visual resellers to mass distribution in 130 different retailers around Australia, including various mass merchant outlets

Of course, Pioneer’s specialist retailers reeled at the news, which was delivered at an industry get-together last Monday, with some even suggesting the Japanese consumer electronics giant might sully its reputation, or at least the reputation of the sought-after LX plasma, in the process.

By going mainstream with a previously-specialist product that enjoyed limited distribution, some resellers claim Pioneer has made a marketing mistake – placing a prestige brand in a mass market outlet.

But Pioneer won’t suffer the way a luxury brand such as Bang & Olufsen would if put in the same situation, says Mediacom group business director – Prestige Business Unit, Dymphna James.

In fact, Pioneer might be onto a winning marketing formula, entering its previously-niche LX plasma in to the mass channel where it will be top of the pecking order.

“There’s a difference between prestige products and specialist products,” James told SmartHouse News.

“Pioneer is in the narrow, specialist market, not in the high, prestige and luxury end.”

SmartHouse News last week published an article with a quote from marketing specialist Douglas Nicol of TCG, claiming that Pioneer would do better to set up dedicated, premium sales outlets to move its high-end, full-HD LX plasmas.

However, James of Mediacom disagrees.

“Pioneer is part of the very specialist component market, not the $50,000 market. If they tried to turn themselves into luxury vendors the brand values wouldn’t gel,” she said.

According to James, the LX plasma’s entrance into the mass merchant market could be profitable for the manufacturer both in terms of units sold and of perceived brand value generated.

“It can work. Harvey Norman are about catering to a wider audience, and a $12,000 plasma isn’t above what some Harvey’s customers would pay,” she said.

Definitely, Pioneer’s LX will now be part of Harvey Norman and other mass merchants’ higher-end plasma TVs, which could be in the struggling brand’s best interests.