U.S. PIONEER ELECTRONICS CORPORATION
PURPOSE OF THE REPORT
? U.S. Pioneer is facing a problem with its value network; its marketing channels, the dealers in particular, are disparaging Pioneer products.
? Pioneer upset dealers/other manufacturers with its new price list with multiple gross margins. Some dealers are dissatisfied with the margins they are getting on Pioneer products so they are not trying to sell them and they are comparing the equipment negatively to other manufacturers
? Components face competition from compacts and consoles
U.S. Pioneer's strategy options were:
? Distribution Shift. Shift retail distribution away from specialty stores to department stores and catalog showrooms
? Multiple Branding. Offer several product lines of varying quality and price points under separate brand names
? Company-owned stores. Move toward operating its own retail stores
The purpose of this analysis is to:
? Evaluate the strength and weaknesses of each strategy
? Recommend what plan should be adopted, rejected, or modified and adopted
? Determine the best marketing channels
RECOMMENDATION
? Adopt superordinate goals. Pioneer should set a goal to have dealer satisfaction as high as consumer satisfaction with the company.
? Introduce more high-end components for specialty stores to help them with their margins
? Update franchise agreements to reflect the current free market environment for electronics
? Expand department store and catalog showroom sales with first time buyer components ...