Pioneer 2008 Annual Report Download - page 14

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PIONEER CORPORATION
12
CENTRAL AND
SOUTH AMERICA
Car Electronics Markets in
New plant in Manaus, Brazil Designing stores in cooperation with car
audio installers
0
2,500
5,000
7,500
(Thousands of Units)
’06 ’07 ’09’08 ’10
Demand in the Central and South American
Car Audio Product Markets
The Car Electronics business is steadily growing sales
in Central and South America, supported by significant
growth in Brazil’s market. Pioneer’s current priorities
are to shift its center of gravity to value-added models
in car audio products and bolster marketing activities
that raise customer satisfaction. By carrying out these
measures, we aim to drive further business expansion.
Market Leadership in Central and
South America
Brazil’s consumer market for car audio products
has been expanding signifi cantly on the back of
sharp new car sales growth. Going forward,
Pioneer expects to see increasing demand for
car AV products such as car DVD players here.
To prepare for further market expansion, we
have roughly doubled annual production
capacity to 1 million units with the completion of
a new plant in Manaus, Brazil, in April 2008.
This should help to enhance operating
profi tability by further expanding sales of Pioneer
products, which already account for a large
share of the Brazilian market.
Mexico is the second largest market in this
region after Brazil, but this market is already
maturing. Here, we are forging stronger ties with
prominent car audio installers and encouraging
them to design stores around Pioneer products.
These and other cooperative efforts are geared
toward increasing our share of this highly
competitive market. Separately, we will also
actively develop business in developing markets
in Argentina and Colombia.
Reinforcing Brand Power
In Central and South America, the daily enjoyment
of music is part and parcel of the local culture.
There is strong demand for car audio products,
especially from younger people, and events such as
motor shows in various regions, and car sound
contests in which car owners compete in terms of
the sound quality of their car audio systems, attract
much attention. We are working to enhance the
image of our brands by actively participating in
these events and promoting the advantages of our
products. Efforts are also focused on enhancing our
website dedicated to sales promotions in order to
effi ciently cover the vast Central and South
American region. In Brazil, communication activities
through Web magazines and newsletters, involving
the distribution of product information and
questionnaires, have enjoyed favorable support
from customers and retailers.
■ Brazil
■ Mexico
■ Other Countries
Data: JEITA
(Calendar year)