'Success' and New Competitors
By Steve Smith -- TWICE, 7/17/2006
Do you remember the 1960s Broadway musical, “How To Succeed In Business Without Really Trying”?
Whether you do or you don't, to succeed in CE in this or any year you must exceed what you think your company's best performance could be to reach the top.
Which brings me to our annual “Success Stories” issue, in which TWICE's editors take a look at selected categories tracked by The NPD Group, report the findings and explore why certain SKUs in those categories have had top unit volume share for the past 12 months.
In some cases in this issue you will read about products which, due to a specific design and/or marketing program, have propelled those products to No. 1. In certain cases you will see how a brand dominates a category. Take a look at what Thomson's RCA brand has done in remote controls or what HP has done in computers.
But the “Success Story” in this issue that piqued my interest is the flat-panel LCD TV 36-inch and over category on p. 28. Topping the list for unit volume share at retail from June 2005 to May 2006 is the Sony 40W-inch KDLV40XBR1. (The name kinda rolls of the tongue, doesn't it?) Now there is no news to the fact that Sony would top a market-share report in a CE category. Tons of consumer surveys over the years indicate that Sony is the most recognized brand in the CE industry.
What is interesting is that this LCD TV is under the Sony BRAVIA brand. (The italics are mine.) Last year at this time consumers, and even some in the trade would have probably said, “What's BRAVIA?” Well, 12 months later everyone has found out.
Over the past couple of years, due to the iPod debacle and other incidents, consumer business pundits (and even yours truly) have taken Sony to task for losing its edge. The introduction of the Sony BRAVIA last year is a major success for the company.
Sony could have played it safe and entered the market the usual way, under its own brand. Well, to Sony's credit, it didn't. It took a risk and created this new brand, pushed the envelope in design and technology, and, oh, came up with an extensive marketing and advertising campaign that continues today and will continue throughout this year. When new HDTV owners now say “BRAVIA” their family and friends know exactly what they are talking about.
Here's a tip of the cap to Sony for taking a risk with the introduction of BRAVIA, and cashing in for a notable “Success Story.”
Speaking of success, and new competition, Best Buy is introducing its first private-label plasma display under its own Insignia brand, a 42W-inch HDTV. (See p. 1.) As mentioned in this space recently (TWICE, June 19, p. 12), a brand-new competitive landscape has emerged with suppliers (like Sony) competing with their customers and becoming retailers. Best Buy shows in this case that turnabout is fair play with its Insignia brand. Although both retailers and suppliers are wary to compete head-on-head in certain categories and at certain price points, competitive pressures may make it inevitable on a widespread basis sooner rather than later.
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