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Harman Performance Group Steps Up Marketing Efforts

7/22/2009 03:31:36 PM Eastern

Elkhart, Ind. - The Harman performance A/V group (HPAV), which
markets Harman's high-end home audio brands, is stepping up its advertising and
promotion efforts as part of a revamped marketing and distribution strategy,

Group marketing VP Marc Kellom told TWICE that the his group was
formed about seven months ago to consolidate

Marc Kellom
Marketing VP Marc Kellom is stepping up the group's advertising and promotion efforts.

sales and marketing of high-end
audio brands Lexicon, Revel, and Mark Levinson. HPAV also took over responsibility
for the high-end JBL Synthesis brand
and for JBL speakers priced at about more than $3,000/pair. JBL Synthesis and
more expensive JBL speakers were marketed previously by Harman Consumer, which
continues to market JBL speakers priced under $3,000/pair, Infinity speakers,
Harman Kardon electronics, and aftermarket car audio amps and speakers.

Harman Group Reveals CEDIA Plans 

With the consolidation, Kellom assumed responsibility for marketing
all HPAV brands. John Batliner took over sales responsibilities as sales VP, and
Mark Graham, president of Harman's Crown pro-audio brand, added the title of
HPAV president. Kevin Voecks is group marketing director.

Together, they and other HPAV members launched a new distribution
strategy that offers incentives to dealers of one brand to carry all HPAV
brands. In the past, few dealers who carried one HPAV brand carried another,
Kellom said. Now, because of sales-incentive programs and a new demo program,
"We are very close to having all U.S. dealers offering all brands,"
Kellom said. About 100 to 150 dealers sell HPAV products, he said.

HPAV's strategy emulates a strategy pursued by Harman's pro audio
brands, he noted.

"It's very powerful to have everyone aligned with all our
brands," Kellom said. Now, a single dealer can offer a complete home theater
audio or stereo-music solution built from HPAV-brand components, he explained. Revel,
for example, offers in-room and custom speakers; Levinson offers amplifiers, preamp/processors,
and a CD/SACD player; and Lexicon offers preamp processors and a planned
Blu-ray player, which will also play DVD-Audio discs, SACDs, and CDs. The JBL brand
offers speakers, and JBL Synthesis offers a complete turn-key package of home-theater
speakers and electronics, including in-room calibration electronics. (See
related story on the brand's product plans for September's CEDIA Expo.)

Although it was a challenge to get dealers to bring in new brands
in sour economic times, the group pulled it off through its incentive and demo
programs, Kellom said.

Dealers were also attracted to the group's stepped-up
advertising, promotion and dealer-support plans, he said. They include significant
boost in consumer advertising, a greater focus on advertising in luxury-oriented
media, and a 53-foot tractor trailer with expandable sides to provide 1,000
square feet of demo space featuring working systems. The truck will support
dealer promotional events, act as a place for dealers to set up one-on-one
meetings with prospective clients, and double as a rolling training tool that
the group will take to dealers to train their sales staffs, Kellom said. The
demo vehicle, which might appear at the Expo, will hit the road in support of
dealers in the fall.

To advertise to audiophiles, the group will spend the same or
more money as it has in the past but will expand to advertising in online
audiophile sites, Kellom said. For the first time, he added, the brands will
invest in a significant amount of advertising in luxury magazines to reach very
affluent consumers who aren't as passionate about products as audiophiles but
simply want the best. "The brands struggled to get face time with the ultra
affluent," he said of past efforts. Ads are appearing in such magazines as
Architectural Digest, Cigar Aficionado, Guitar Aficionado, the Robb Report and
local luxury magazines.

HPAV recently moved the sales and marketing operations of its
brands to Elkhart from Woodbury, N.Y.,
where its predecessor, the Harman
specialty group
, was located, Kellom said. The Harman consumer group was
also located there before moving earlier this year to Northridge, Calif.

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