Panasonic 2008 Annual Report Download - page 39

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Europe
The European market in fiscal 2008 saw consumer sentiment decline due to an
economic slowdown stemming from rising interest rates and inflation, as well as
concerns about the effect of the stronger euro on the export industry. Although
market conditions were difficult, particularly in the second half of the fiscal year,
the Matsushita Group posted higher year-on-year sales of consumer products in
this region.
In fiscal 2009, Matsushita is promoting various strategies in the region based
on two key policies: achieving double-digit sales growth with profitability, and rais-
ing Matsushita’s presence in the digital consumer electronics industry in Europe.
In the digital consumer electronics field, four basic strategies have been set
forth for raising the Matsushita Group’s presence in the industry. First is to expand
sales at mass retailers across Europe. Second is to expand sales of LCD TVs, in
addition to plasma TVs. The third strategy is to strengthen brand power and
differentiate Panasonic brand products mainly by improving product explanations
in stores and strengthening TV commercials. Finally, we aim to increase sales in
France following the U.K. and Germany.
Furthermore, Matsushita will expand sales of home appliances, car navigation
systems, water heating systems and other products, as well as launch these prod-
ucts in new markets, for creating future earnings drivers. In addition, Matsushita is
strengthening its management structure, mainly by reinforcing relationships with
distribution channels.
China
In China, sales of consumer products in fiscal 2008 recorded double-digit
growth, compared with the previous fiscal year. Despite this growth, there
remain three challenges for the Matsushita Group in implementing strategies:
further expanding sales of plasma TVs and LCD TVs, implementing marketing
initiatives of a broader range of products instead of individual products in home
appliances, and strengthening sales of systems products.
As part of measures to address these issues, Matsushita saw the August
2008 Beijing Summer Olympic Games as a good business opportunity to grow
flat-panel TV sales, and thus undertook the Group’s biggest promotion ever in
China, the VIERA 100 Day Campaign, which ran for 100 days from May
through the end of the Olympic Games. In addition, Matsushita held the Global
Plasma Roadshow in 21 cities across China to promote the appeal of VIERA’s
high performance to customers as well as strengthened in-store promotions,
including exhibitions of VIERA Link products at 700 retailers and of 103-inch
plasma TVs at 100 retailers.
In home appliance products, Matsushita is strengthening its refrigerator
lineup and supplying systems products for public construction, transportation
businesses and other large projects, as well as implementing initiatives to
develop new sales channels.
Global Plasma Roadshow in Germany
HD networking convention for journalists and
distributors in European countries
A VIERA Link demonstration featuring a
103-inch plasma TV
Global Plasma Roadshow in China
Matsushita Electric Industrial Co., Ltd. 2008 37