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D&M Outlines Brand Distribution Changes

3/12/2012 12:01:00 AM Eastern
MAHWAH, N.J. – D&M Holdings is changing the distribution strategies for its Denon, Boston Acoustics and Marantz brands under multiple initiatives.

Under one initiative, D&M signed a distribution agreement making AVAD the sole national distributor for Denon and Boston Acoustics residential and commercial products beginning April 1. AVAD, which already distributes Marantz, will replace ADI as the sole national distributor for Denon and Boston Acoustics.

In two other changes, D&M is consolidating its independent- rep force so that, in some cases, a single rep sells all three brands. In addition, the company said it will expand direct distribution to more retailers “where it makes the most sense.”

By hiring AVAD, D&M sales VP Kevin Zarow said the company would be “able to efficiently consolidate sales initiatives and outreach activities” for the three brands.

D&M chose AVAD for the consolidation, he said, because AVAD is more focused on residential installers and will help Denon and Boston Acoustics expand sales in the custom market. Sales of Denon and Marantz though a single national distributor will also “help ensure that all our retailers fully appreciate how well the differentiated Denon and Marantz brands complement each other in the marketplace…,” he said. “There’s no need to pit one against the other.”

Although Denon and Boston Acoustics are changing distribution strategies, both brands will continue to be served by rep-distributor accounts (RDAs) and by a few regional distributors that serve secondary and tertiary markets, Zarow told TWICE.

“While we have consolidated some reps and RDAs [rep distributor accounts] in specific territories across the country, we are not dropping RDAs,” Zarow said. Denon and Boston Acoustics will still be available via RDAs,” and so will Marantz, he added.

For his part, D&M Americas sales and marketing president Brian Poggi said the three brands will roll out their “largest and most exciting product lineup ever with over 75 new products, including new categories that deliver both innovation and differentiation.”

“To support these products at retail and facilitate profitable growth for all our channel partners,” he continued, “D&M is repositioning our sales organization to focus squarely on our key D&M brand customers and aggressively drive growth in the new product categories.”

As part of the reorganization, he said, “D&M brands will align even more closely with our valued retail partners. This new alignment will include direct distribution to those retailers where it makes the most sense, as well as a targeted and more streamlined distribution of products and brands to those dealers where such a business model will be advantageous for both parties.”

Previously, the Denon and Boston Acoustics brands were sold by the same reps, and now some reps will sell all three brands, a spokesperson said.

The spokesperson also noted that the three brands have been sold direct to some dealers in the past but that D&M will expand that capability to more dealers by expanding its in-house sales force.

Poggi said D&M will triple its brand and product marketing investment compared to 2011 “ with the clear goal of transforming how our brands are perceived in the marketplace as well as creating positive brand awareness that will drive customers to our dealers and encourage sales.”
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