Invitation to the 2 nd International Marketing Conference Large Displays Worldwide. Success strategies in the professional AV and Home Cinema Market
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1 To Marketing Department Sales Department Managing Directors Executive Board etc. DIVISION Marketing Excellence DR. FREDERIK LEHNER TEL DIPL.-PSYCH. HELGE DITTMANN TEL HD/AF 13 MARCH 2004 jansen@interconnectionconsulting.com Invitation to the 2 nd International Marketing Conference Large Displays Worldwide Success strategies in the professional AV and Home Cinema Market INTERCONNECTION, infocomm and AVP NEWSLETTER are very pleased to invite you to the 2 nd International Marketing Conference Large Displays Worldwide, at which we will teach you new ways to success: You guide your company with up-to-date international data and facts. You find out about most recent prognoses for the future of the home cinema market. You receive current data on consumer behavior from private and B2B customers. You recognize the possibility to keep the margins high through Power Pricing. You find out the success factors for the growing home cinema market. We will go into the details of both the professional Large Display Market and the home cinema market. You will find out about all these Information, Tips & Tools and much more at the 2 nd International Marketing Conference Large Displays Worldwide on Tuesday, May 4, 2003 from 9.00 to in Düsseldorf in Hotel Nikko, Immermannstr. 41, Düsseldorf, Tel The number of participants is limited; we ask you to send in your registration form on time. Yours truly, INTERCONNECTION CONSULTING GROUP Helge Dittmann Dr. Frederik Lehner I N T E R C O N N E C T I O N C O N S U L T I N G G R O U P O STERWALDSTRASSE M ÜNCHEN G ERMANY T EL F AX F AULMANNGASSE W IEN A USTRIA T EL F AX G ESCHÄFTSFÜHRER: D IPL.-PSYCH.HELGE D ITTMANN D R.FREDERIK L EHNER WWW. INTERCONNECTIONCONSULTING. COM INFO@ INTERCONNECTIONCONSULTING. COM
2 2 nd International Marketing Conference Large Displays Worldwide Success strategies for the Projector, Plasma and LCD-TV Market Organizer May 4 in Düsseldorf 2004 veni vidi vici INTERCONNECTION CONSULTING GROUP is Europe s leading market research company for the Large Display and Home Cinema Market and advises other leading companies in the fields of market research, marketing and sales strategies. I N T E R C O N N E C T I O N C O N S U L T I N G G R O U P Speakers O STERWALDSTRASSE M ÜNCHEN G ERMANY T EL F AX Dipl.-Psych. F AULMANNGASSE Helge Dittmann Executive W IEN Director A USTRIA of INTERCONNECTION T EL CONSULTING F AX GROUP +43 in 1 Munich, G ESCHÄFTSFÜHRER: D IPL.-PSYCH.HELGE D ITTMANN D R.FREDERIK L EHNER Dr. Frederik Lehner Executive Director of INTERCONNECTION CONSULTING GROUP in Vienna, WWW. INTERCONNECTIONCONSULTING. COM INFO@ INTERCONNECTIONCONSULTING. COM Dr. Michael Litschka Industry Expert for the Field Projectors and Home Cinema at INTERCONNECTION CONSULTING GROUP Paul Martin, Editor-in-Chief of TFC.Info, Austin, USA INTERCONNECTION CONSULTING GROUP München Wien
3 The current and future development of the most important AV markets in Europe, Asia and the USA. Almost no other market develops as dynamically and unpredictably as the AV market. Strong quantity growth is associated with price and margin decline. The acceptance of continually new technologies is finally decided upon in the market. In order to provide you with a clear understanding for making plans this presentation will give detailed information and statements about: The current developments in the Large Displays Market Prognoses for various technologies, size classes and segments The competition situation in the AV Market: Strengths and weaknesses of the manufacturers, entry barriers, growth segments Price development and its consequences The strategies which you can derive from all these factors Growth or no Growth, that s the Question Total EMEA: PDP Total Market Development f Quantity in Units, Value in 1000 EUR Forecast And what the rest looks like, Quantity out at the Value ,1% 149,6% Value 78,4% 67,6% 52,6% 45,8% 52,5% 49,2% 79,1% Quantity 41,8% you can find conference! Change Quantity % Change Value % UK by far the biggest Market IC Dynamic Portfolio Regions Sales 2003 total Market Development 2003 Q4 vs Q1 in % 260% 220% 180% 140% N-EU 100% R-EU Ø: 84,2 % 60% 20% -20% Mid EA AFR -60% Sales in Units 2003 total INTERCONNECTION Vienna & Munich Page 6 INTERCONNECTION CONSULTING GROUP Page 48 Japan almost accounts for 50% of the Market Only 16:9 Provides Real Home Cinema Feeeling PDPs by Regions - Value 2003-I Total Value Regions by Value Total Europe: Home Cinema by Front Projectors: Aspect Ratio: f Market Quantity in Units / % Development Forecast Forecast Japan South Korea China Taiwan India Rest of Asia China 9,5% India 5,2% All Others 22,2% Taiwan 9,2% Japan 47,5% South Korea 17,4% Quantity in Units 4:3 16: And what the rest looks like, you can find out at the conference! And what 37,6% 51,2% 64,5% the rest 76,8% looks 84,3% like, 92,3% 16:9 4:3 you can find out at the conference! 62,4% 48,8% 35,5% 23,2% 15,7% 7,7% INTERCONNECTION CONSULTING GROUP Page 35 INTERCONNECTION CONSULTING GROUP Page 18 You can recognize growth potential early and gain insight in long-term trends and tendencies. Valid prognoses give you input for the goals in marketing and sales. Compare your performance with the market and find out your strengths and weaknesses.
4 Strategic success factors in the Home Cinema Market The very quickly turning home cinema market is a great challenge for the manufacturers. Especially the B brands, companies which are new in the market, are confronted with great challenges. Based on our studies we deliver you success factors for: Successful market segments in the B2C Market The consumers willingness to pay for the various technologies The customers motives and reasons for buying Successful distribution channels Success factors in the life cycle phases of Large Displays Re-positioning in every phase of the life cycle Identify segment criteria Anticipate a new phase and use finished strategy concepts Life Cycle Buying Motives Influence consumer behaviour Communication of synergies Design Usability Advantages of AV-Integration Get listet in the CE-Channel Offer System Integration for Private Segment Cross Selling Flat Screens and Add on Price transparancy Communication of price AND service Consistent price strategy Distribution Factors of Success Market Segment Price Acceptance Fill a niche Mass market with high turnover Cover the premium segment Create artifical needs Discussion with participants The following questions should be answered in a discussion forum: What are the customers really paying for? Mass market or premium-segment or both? The lengthening of the product life cycle: Strategy, Innovation, Price! You recognize the growth potential in the private segment and design your future strategies in order to be able to secure success factors for the long-term. You can delve more deeply into the consumer s psychological buying factors, and learn to understand the different motives for these factors. You sharpen your strategic perception through the contributions of your colleagues.
5 New success models in the professional AV-Market The B2B market can not register the same growth rates as the home cinema market. This segment is very important for many manufacturers, due to the higher margins and possibilities of differentiation. You will get answers to the questions: Which demands do professional dealers have on manufacturers? Which segment can I most successfully serve with which product? What effects do the various business models used by dealers and distributors have on the manufacturers? With which strategies can one gain market shares in the professional AV-Market? Private Sales Push the Market, B2B Lacks behind Diffusion Process of Front Projectors IC - Market Share/Market Development-Portfolio Segments 2003 total Life Cycle Analysis: Europe Main Buyers in the Professional Segment Market Development 2003 Q4 vs Q1 in % 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% Ø: 84,2 % Business Private Main Buyer: Intern. & Large Companies Main Buyer: SM Enterprises Main Buyer: Consultants, Sales Staff Main Buyer: Public Segment Main Buyer: All Substitute Goods 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Market Share 2003 total INTERCONNECTION CONSULTING GROUP Page 52 INTERCONNECTION Vienna & Munich Page 15 IT-Managers make the Purchase Decisions CE-Retailers still behind but Will Push Sales Next Year Main Developments in the Future Distribution Strategies in the Home Cinema Segment When will the channels boom? long run medium short run Direct E- Commerce Value Added- Resellers Office- Channel CE- Retailer AV- Channel IT/PC- Channel Low Volumes High Volumes AV-Dealers Specialized Segment CE-Retailers Stop-by-Shopping In the home cinema segment, the number of small AV Dealers will decrease dramatically. What remains is a specialized sector for home theater enthusiasts (that provide complete and full customer service) and a retail sector. Especially traditional strong consumer brands in the retail sector will benefit. Examples: Philips, Sony, Panasonic low average high Percentage of Sales INTERCONNECTION Vienna & Munich Page 16 INTERCONNECTION Vienna & Munich Page 14 You find out what direction the professional AV-Market in developing in right now. You know which demands your most important dealers and distributors have on you. You recognize success potential and use this knowledge in the right segments.
6 Higher Profits through Power Pricing Strategies The most sure things in every prognosis for the AV-Market is the falling prices. That is always good for the consumers, whether or not it is good for the manufacturers and dealers depends on an intelligent price policy, since through reflex-like price-cutting brands and margins can often be destroyed. Through Power Pricing Strategies you find out how you can optimize your profits through the use of intelligent price policies: 1. The effects of prices on buyer behavior 2. Price transparency versus overhead calculation 3. How can I use prices to segment the market? 4. How do you work with price elasticity? 5. Appropriateness of a price surcharge function at the time of awarding the contract Practice Example for the determination of the optimal Cost/PerformanceRatio Discussion After every presentation there is enough time for discussion and the introduction of personal experience and contributions. The professional forum sees itself as a platform for current data, knowledge management, the newest insights and methods for successful business management and, most importantly, as a platform for the exchange of ideas and experience. Your personal contributions are therefore always welcome. The presentation gives you the tools with which you can direct your price policies with optimal profits and therewith simultaneously give your offer a clear profile. You recognize the additional options of prices as image components, market segmentation instruments and market entry barriers.
7 What Europe can learn from the U.S. As guest speaker to our specialist forum we have the American Display Expert Paul Martin, from TFC.Info in Austin, Texas, U.S.A.. Cultural differences as well as differences in buying patterns should be explained in this presentation: 1. Overview of the U.S.-American Display Market. 2. Distribution systems in the USA: Where are the differences to Europe? 3. Which brands are the most important in the USA? What do they have in common? 4. Which segments have which importance and in what way does this differ to Europe? 5. The American Consumers: What can we learn from them? Competition is Getting Tougher Projectors in Europe vs. US: Factors of Competition Bargaining Power of Dealers Competition EUROPE USA 5... Very high, 0... Not existing Threat of New Entrants Bargaining Power of Buyers Threat of Substitute Products The presentation shows you: What chances European manufacturers have in the USA. How you can adapt an American sales strategy for Europe. How you can establish an efficient distribution system. Which brand strategy is successful.
8 Registration R E G I S T R A T I O N Fax: Germany Fax: Austria I/we officially register myself/ourselves for participation in the 2 nd International Marketing Conference Large-Displays Worldwide on May 4, 2004 in Düsseldorf. Surname, name Function Personal address Surname, name Function Personal address Surname, name Function Personal address Name of Company Telephone Telefax Street Postal Code, Town or City Costs: For one participant: 590,- Euro For every additional participant from the same company: 490,- Euro The price includes extensive information sheets, field data, statistics, etc., as well as lunch incl. Drinks and drinks consumed during breaks. The participant s fee is to be paid after receiving the bill. The payment is obligatory even in the case of nonparticipation, the substitution of a participant for this conference is however possible at any time. We apply German laws under the jurisdiction of Munich. Place, Date Company Signature
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