D&M Realigning Distribution Strategy



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 with AVAD to distribute Denon and Boston Acoustics residential and commercial products. AVAD already distributes Marantz.

D&M also said it is consolidating its independent-rep force to, in some cases, have a single rep sell all three brands. At the same time, the company said it would "align even more closely" with retailers and expand direct distribution to more retailers "where it makes the most sense."

By selling Denon and Boston Acoustics through AVAD, D&M sales VP Kevin Zarow said the company would be "able to efficiently consolidate sales initiatives and outreach activities for our Denon, Marantz and Boston Acoustics brands." The agreement will also "help ensure that all our retailers fully appreciate how well the differentiated Denon and Marantz brands complement each other in the marketplace - and how they can provide different types of consumers with the tailored lifestyle solutions that are perfect for them," he said.

 The AVAD agreement will also "allow us to significantly expand the reach of all three D&M brands, both within the custom installation market and through traditional dealers."

 For his part, D&M Americas sales and marketing president Brian Poggi said the three brands will roll its "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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