Case Analysis
Autor: Saravana Kumar • February 7, 2017 • Coursework • 1,803 Words (8 Pages) • 773 Views
MARKETING
BUSI 8106
ASSIGNMENT 1: SONANCE AT A TURNING POINT
WINTER 2015
SUBMITTED BY: GURPREET SINGH
STUDENT# 201580230
EXECUTIVE SUMMARY In 1982, Sonance, a high-end audio company, invented a new product category: in-wall speakers. Long established as the leader in high-end home theatre speakers, by the end of 2005, Sonance was at a turning point. The company attempted to benefit from the flourishing housing market in the 2000s by further efforts to pursue business with production developers and mass-market consumers. While the company made significant investments in R&D, these efforts were never backed by a well-thought analysis of distribution strategy or an understanding of the value of each customer channel. Due to lack of experience in selling its products directly to end customers, Sonance failed to build strong customer relationship with the new market while at the same alienating its established market with custom dealers. Though growth accelerated till 2003, its relationship with the high-end audio dealers began to deteriorate. In 2004, Sonance revenues dropped close to the level as in 1999, from where it initiated its market development. Founders of the company recently hired new CEO, Shawn Sugarman and Chief Sales Officer, Ari Supran. Sonance new management and marketing teams struggled to determine the best strategy for the future. Sonance’s management team is left with less than a year to plan its relaunch at the CEDIA (Custom Electronic Design and Installation Association) Expo. CEDIA offers a platform for electronic product manufacture to develop pathways that move them to the next level of success in sales and revenues through innovation. |
ELECTRONIC MARKET IN US
The US consumer electronics industry is a well-established and consolidated industry. Electronics industry covers multiple products like TV, video players, home & portable audio products, mobile electronics, home information products, blank media, accessories and batteries, electronic gaming, home security. In 2004, electronic sector made a business of $113 billion as a whole and audio products sector contributed 4.9% ($5.5 Billion) to this share. The electronic sales in recent years have increased from $ 96.95 Billion in 2000 to $ 113.5 billion in 2004. But the sale for audio products has seen a downfall from $ 6.3 Billion in 2000 to $ 5.5 Billion in 2004. Steep fall in sales is attributed to the lack of product innovation, difficulty in conveying product features to consumers in most retail settings and greater interested in video-related categories. However the overall electronic industry sales will stimulate in near future due to spur in demands of other electronic products.
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