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LG, Onkyo & B&W tie up to market home theatre systems

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LG, Onkyo & B&W tie up to market home theatre systems

In a strategic marketing alliance aimed at getting maximum mileage by exploiting synergies, three brands LG Electronics, Onkyo and Bowers & Wilkins (B&W) have tied up to market complete home theatre systems.

While LG provides the Plasma Display Panel (PDP) televisions and projectors, Onkyo markets receivers and DVD audio-video players and UK-based B&W is a big name in speakers.

While Onkyo and B&W have an on-going tie-up for the last six months, LG stepped into the picture only two months back when it ran a pilot in Chennai, after which it decided to launch it at on a national basis. The tie-up offers home theatre combinations at different price points to make the task of selecting the various components of a home theatre system easy.

The marketing tie-up will also have a great commercial advantage as marketing expenses will also be divided. UK-based B&W products are marketed in India by Mumbai-based Audio Vision India. Its portfolio includes hi-fi and home cinema speakers from small book shelf units to large floor standers, centre speakers and subwoofers. According to Audio Vision India CEO Burge Cooper,‘‘Our brands complement each other and this confluence will result in a more cohesive system than is possible now, with the consumer having to rely on the local dealer and whatever was available.’’

LG’s PDPs will be sold as standalones also at brand shops and special counters o]n an exclusive basis. The home theatre packages, priced between Rs 4.9 lakh and 9.9 lakh, will be available at six outlets initially and increased to 15 by Q1 next year.

The PDPs will be sold under the XCanvas Studios sub-brand that will cover technology products, like PDP and projection TVs. The size of the PDP market this year is estimated at 600-900 units and expected to grow to 1,200 next year. The target market is a mix of the home and institutional segments. LG claims a 70 per cent share of the PDP market. It has models in 40, 42, 50 and 60 inches.


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