The Race to
STOP ZERO
We all know about the “Race To Zero” and how some brands are determined to devalue our industry in their quest to drive sales. But are cheaper products really the answer to driving sales? Here’s an example of a CD receiver from Kenwood at $160.00 and a similarly-featured CD receiver from Brand X at $140.00, assuming the same margin percentage:
KENWOOD $160.00
BRAND X $140.00
Brand X Brand X
Brand X Brand X
Brand X Brand X
Brand X Brand X
Brand X Brand X
+12.4%
The increased amount of Brand X units that need to be sold to match the profit and revenue dollars of Kenwood.
Will assorting that cheaper Brand X Model drive your floor traffic more than Kenwood?
Well, you’d better hope so. +25%
The increase in customer floor traffic required, assuming a 50% close rate on Brand X, to match the profit and revenue dollars of Kenwood.
In 2010, Kenwood achieved a commanding #1 brand ranking in CD receiver unit and dollar share at total retail*, all the while delivering exceptional ASP. Don’t join the “Race To Zero.” Sell the brand that customers are buying, enjoy a lift in ASP and flourish in a market where others continue to struggle. Align your business goals with Kenwood in 2011.
* The NPD Groups Retail Tracking Service, January – December 2010
facebook.com/kenwoodusa @kenwoodusa
©2011 Kenwood USA Corporation. All rights reserved.
www.kenwoodusa.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68