Onkyo, LG's Plasma Display Panel, and B&W have formed a marketing alliance to grow the home theatre segment in India.
Each of these brands specialises in a different product in the entertainment segment and share a common target audience. The products are Onkyo's high-end video and audio sources, the LG Plasma Display Panel (PDP) and the B&W speakers.
According to industry sources, research shows that the target audience is largely middle-aged male and from a nuclear family. The customer went through great pains to identify the complementary accessory of his home theatre system. The market for this segment is growing at a rate of 60 per cent to 70 per cent. The strategic marketing alliance is the direct response to major strategic challenges facing the business of home entertainment in India.
According to sources LG Electronics India has a market share of 70 per cent and the product are available in various sizes from 37 to 60 inches digital PDP.
B&W has been making loud speakers for over 40 years and is a globally recognised brand in speakers. There is a comprehensive range of loudspeakers from small bookshelf units to large floor standers, dedicated centre speakers and sub woofers, which deliver true-to-life sound. The prices would vary according to the configuration and could cost anything between Rs.25,000 and Rs 15 lakh.
As per sources, Onkyo will be spending Rs 3 to Rs 4 crore on advertising this segment. The three brands will be available in all Onyko showrooms and in some LG showrooms. The products will have common service point.