Superbrands 2004 - Brand Autopsy

CONSUMER ELECTRONICS
The Digital Revolution Will Be
Televised in High-Definition
By Kenneth Hein
Only a few years ago, consumer electronics experts were
lamenting a slumping industry. Now, with surging sales
of digital TVs and the growth of digital imaging, not to
mention a must-have hit in Apple’s iPod digital music device, the
category is enjoying a resurgence.
Sales of consumer electronics are expected to reach $101 billion
in 2004, up from $96.3 billion last year, per the Arlington,
Va.-based Consumer Electronics Association. Next year, the
group predicts, the category could grow another $5 billion.
Set prices on digital TVs—which include high definition
(HDTV), enhanced definition and standard definition—continue
to fall about 2% per month, with a current average of $1,500.
As a result, manufacturer-to-dealer sales of DTVs grew 79% in
the first quarter of 2004, reaping revenue of more than $2.1 billion
on unit sales of about 1.4 million.
“Digital TVs are more popular than American Idol and Shrek 2
put together,” said Jeff Joseph, a spokesperson for the CEA.
“Prices are coming down, there’s more content
for viewing and more [models] in the
marketplace. It’s going to stay hot.”
Another potential aid to growth: This
summer, manufacturers are rolling out
“cable-ready” DTVs that allow consumers
to receive digital programming from their
cable providers without having to buy a separate
set-top box. By year’s end, more than
one million cable-ready sets are expected to
be sold domestically. TiVo also plans to
enter this arena by allowing users to down-
load movies and music via the Web.
Marketers, meanwhile, are finding new
ways to drive consumers to stores. Panasonic,
for instance, went after moms, dads and college grads with
ads for its D-snap camera, with the first leg of its $50 million “Fascinating
people, fascinating products” campaign, via Grey
Worldwide, New York. The ads show celebrities like rap mogul
Russell Simmons using the camera, continuing Panasonic’s
“Ideas for life” tag with Christian Slater as the voiceover.
Sony, too, used a little star power to tout its CyberShot digital
camera. Aerosmith’s Steven Tyler stars in a new TV spot,
via Young & Rubicam, New York, with the tag: “Like no other.”
Previously, Sony relied on the fictional “Lewis” family to
BRAND
COMPANY NAME,
LOCATION
Superbrands
show how its products fit into people’s everyday lives.
Samsung is currently looking for a new global agency for its
$400 million account. It launched a new spot in April, via FCB,
New York, that urged consumers to “Experience the power within,”
dispensing with its long-running “Digitall” tagline. The company
is sponsoring the Olympic torch relay at the 2004 Summer
Games in Athens.
Naming Colby & Partners as its agency (with a
new office soon to open in New York), Sharp Electronics
is expected to roll new ads that focus on
its line of Aquos LCD televisions. Its current tag,
“Be sharp,” replaced the iconic, “From Sharp
minds come sharp products.”
LG Electronics is looking to put its brand on
the map with a three-year, $300 million “Life’s
Good” campaign, via Ogilvy & Mather, New York.
The Korean company is relatively new to Americans
and is aiming to position itself as the premier high-end consumer
electronics brand. LG plans to use its better-known brand,
Zenith, to manufacturer mid-range digital
products.
JVC has also been making more noise in
the marketing arena. Last year it debuted its
$20 million, star-studded “The perfect
experience” ad campaign, via E2AMP, Los
Angeles. Producer Jerry Bruckheimer,
extreme sports star Shaun Palmer and multiplatinum
band Nickelback all starred in
print ads for an array of products.
Elsewhere in the category, the burgeoning
satellite radio industry received some
It’s a snap: Showing ease of use, Simmons unexpected hype thanks to embattled morn-
stars in ads for Panasonic’s digital camera. ing radio shock jock Howard Stern. Fined
by the FCC and dropped by several Clear
Channel Communications stations, Stern believes his “days are
numbered” at Viacom and has repeatedly said he may jump to
either XM Satellite Radio or Sirius Satellite Radio, both of which
have been growing steadily.
Sirius, with about 270,000 subscribers in the first quarter,
is shooting for one million this year. XM Satellite Radio has
about 1.7 million subscribers. Earlier in the year, Sirius selected
Doner, Southfield, Mich., to handle its estimated $30 million
account. The brand’s playful ads have featured former
Baywatch star Pam Anderson. B
LEAD AGENCY,
LOCATION
1. Hitachi Hitachi, Brisbane, CA Lambesis, Carlsbad, CA $81.4 $12.6 6.48 45% 6.84 52.3
2. Sony Sony, Park Ridge, NJ Young & Rubicam, New York 72.1 81.4 7.33 88% 8.18 67.4
3. Panasonic Panasonic, Secaucus, NJ Grey, New York 71.9 47.0 6.88 78% 7.42 59.4
4. Philips Philips, Atlanta DDB, New York 29.0 108.3 6.69 55% 7.14 56.2
5. LG Electronics LG, Englewood Cliffs, NJ Ogilvy & Mather, New York 20.2 39.7 N/A N/A N/A N/A
Sources: Brandweek research (sales); TNS/CMR (media); Harris Interactive/EquiTrend: QxFxPI=E (see key, page S18)
www.brandweek.com JUNE 21, 2004 S33
TOTAL
SALES
(billions)
MEDIA
EXPENDITURES
(millions)
QUALITY
FAMILIARITY
PURCHASE
INTENT
EQUITY