JVC 2007 Annual Report Download - page 14

Product demonstration
for European press
Meeting for key dealer in
Europe
JVC ad on a minibus
in Russia
JVC’s booth at
CEATEC 2006
Presentation for launch of
full HD Everio GZ-HD7
American road showJVC globe in New York’s
Times Square
JVC’s car audio booth
at CES
12
Europe
In fiscal 2007, despite growth in hard disk camcorders and LCD TVs
and firm sales of car audio systems, overall sales in this region were
down due to a sharp drop in sales stemming from the contraction of
the CRT TV market and weak audio equipment sales.
In fiscal 2008, our goal is to press forward with marketing efforts
finely tuned to cater to each region. To do this, we will reinforce our
sales network and work to further expand sales in markets such as
the Middle East, where our products are marketed through agents.
Concerning emerging markets, as part of the “Challenge 5 (C5)
Project” we will harness production and marketing infrastructure to
target sales growth in India, Turkey, and other areas, where we think
growth prospects are promising. In China, we will work to increase
the number of high-volume retailers of consumer electronics, retail-
ers of PCs and IT equipment, and other sales routes that distribute
our products, with a particular emphasis on video cameras and
audio equipment.
Asia and Other Areas Americas
Japan
Classroom for wood cone
speaker assembly
Dealer seminar in India Everio marine promotion
for the Middle East
Participants try their hand at
filming at the JVC video fes-
tival tour in China.
Consumer Electronics: Performance and Future Strategies by Region
In fiscal 2007, ended March 31, 2007, sales of HD-ILA rear projec-
tion TVs were hurt by the sharp decline in selling prices. This,
together with the contraction in the CRT TV market, a decline in
sales of our DVD recorder lineup, and a downturn in audio product
sales, caused overall sales in the Americas to fall sharply despite a
surge in sales of Everio hard disk camcorders.
In fiscal 2008, we will take steps to fully implement our strategy of
two LCD TV lineups—high-value-added models in one and basic
models in the other—and reenter the market. Moreover, we are
reworking our basic strategy for HD-ILA rear projection TVs. We plan
to broaden our lineup of front projectors, which are off to a strong
start, and look to promote the growth of these systems by develop-
ing new sales channels focused on specialist retailers carrying high-
end AV products. Moreover, in our U.S. operations, we will take
steps to reform the organization to reinforce sales activities carefully
designed for each distribution channel, along with expanding our
sales network.
In fiscal 2007, despite growth in LCD TVs and hard disk cam-
corders, sales in Europe fell due to large declines in sales of DVD
recorders, CRT TVs, and audio equipment.
In fiscal 2008, we will work to increase the name recognition of
our LCD TVs, which are driving sales growth in this region. To do
this, we will use product strategies devised for each region and dis-
tribution channel and step up product announcement activities. We
will also strive to enhance profitability by ending production and
sales of unprofitable models.
We plan to bolster manufacturer-retailer alliances by tracking buy-
ing groups in each country through the effective use of our market-
ing network, one of our strengths in Europe, and by strengthening
the role of the European head office as a liaison in responding to the
buying centers of leading European retailers.
In the Russian market, where we are working to expand opera-
tions, we will continue to step up local production and augment our
sales network, which spans 14 cities with populations of one million
or more.
In fiscal 2007, while sales in the video camera business grew thanks
to brisk sales of hard disk camcorders, sales in Japan flagged due
to weakness attendant with the shrinking market for component MD
systems in audio equipment and weak sales of LCD TVs.
In fiscal 2008, boosting sales will be our biggest initiative. To do
this, we will ensure launch-phase product programs are implement-
ed throughout our marketing activities, especially for high-value-
added products such as our lineup of Everio hard disk camcorders
with full HD capabilities and our full HD LCD TVs with fast frame
rates. Other measures include augmenting profile-raising activities
for core products and strengthening our structure through reorgani-
zation to realize marketing activities carefully designed for each retail
channel.