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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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