Sarah Falson

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.

Bricks and mortar retailers are using the internet to drive consumers to their stores this Christmas shopping season. By advertising with Google – the leading worldwide internet search engine – retailers are able to gain online presence even if they don’t sell their goods online.Research provided by Hitwise Australia says that there has been a “significant shift” by consumers researching products online before they purchase them offline in retail stores.

According to Google, the number of online advertising is increasing as retailers realise the benefits of adding an online strategy to their marketing mix.

Dick Smith Electronics (DSE) has begun using Google’s AdWorks advertising system for Christmas. AdWorks allows companies to purchase sponsored links on Google’s search engine, ensuring they take prime position when a user searches.

To gain a presence on AdWorks, companies must bid for keyworks, such as ‘MP3 player’ and ‘plasma’, so that when a consumer is searching for this item the company’s sponsored link will appear beside the search results.

“The internet is now playing an increasing part in the consumers’ decision making process as they make their way through the purchasing lifecycle,” said DSE marketing director, Brent Allan.

“By placing advertisements on Google’s search engine this Christmas, we are now able to put DSE range of product offerings front of mind, as consumers search for product information and a store  to purchase.”

The worldwide retail and technology sectors are performing healthily with the GfK Group recording the highest margin for all the business divisions it tracks, for the third quarter 2007.Sales in Retail and Technology increased in the first nine months of this year by 9.9 per cent to 189.0 million euros, according to GfK.

Of the rise in sales, 11.2 per cent are attributed to increased organic growth in sales year-on-year (prior year: 8.2 per cent).
“The fast pace of growth in the two regions Germany and Asia and the Pacific in particular led to better-than-expected contributions to sales,” said GfK.

“Currency effects reduced sales by 1.3%. The rise in income was disproportionately high with an increase of 16.9% to 46.1 million euros, while the margin improved considerably, both on the same period in the prior year (23.0%) and on the first half of 2007 (23.1%) to 24.4%.”

The tiny Asus Eee PC is now selling in major retail outlets including Harvey Norman, JB Hi-Fi and Retravision, following high public demand for the device, says its maker.

The Eee PC, which was named after the ‘three Es: Easy to learn, Easy to work, Easy to play,’ according to Asus, went on sale in Myer only in December last year, with stocks selling quickly leaving limited quantities available.

From today, the Eee, which was designed as a portable learning computer for young children, will be available in Betta Electrical, Betta Electrical, David Jones, Good Guys, Harvey Norman, JB Hi-Fi, Myer, Officeworks, Retravision and WOW Sight & Sound nationally.

Asus Australia managing director, Ted Chen, says the Eee has “taken Australia by storm.”

“The Eee PC has been moving fast since it hit Myer stores in December 2007 and continues to do so. So far approximately 80% of stock has been sold through major Australian retailers and we are trying to get as much allocation as possible from our headquarters to ensure there is stock on shelves. There is a high demand for the Eee PC worldwide and Australia is no exception!” he said.

The Eee retails for $499 and is available in white and black colours.