Vision - November/December 2007 - (Page 51)

by steve koenig ] • [ industry research from cea market iNsiDer for uninterested homeowners. In addition, uninterested non-owners indicate they don’t see a need for a multi-room audio or video system in their home and perceived cost is an issue. Can the industry generate interest in MRAV solutions among these consumers? Expose the Real Cost Turning to homeowners interested in a MRAV solution, cost is a chief concern holding them back. Not surprisingly, several of these respondents believe the cost to be higher than what most current owners spent on their systems. Installation is another concern for many homeowners interested in MRAV. Will professional installation be required (adding to the cost)? Will self-installation be too challenging? The main strategy for overcoming these obstacles is education. For starters, making it easy for homeowners to access educational and marketing materials (either online or in the store) for MRAV systems will help cultivate homeowners’ desire to purchase. Avoid burying the price of a system or hiding the total cost in a forest of required components and accessories. These tactics can make consumers skeptical, and shown by the survey, they usually overestimate the cost. Surprise them with affordability up front. What about products, features and specs? Based on feedback from current owners of MRAV systems, marketing messages should focus on the following key elements: ubiquitous access to content, compact size, good for entertaining/parties, no need to turn up the volume to listen in another room, and ease-of-use. On the installation front, marketing messages should address the level of complexity. Self-installed systems should be accompanied by a detailed, non-technical guide to make them more approachable. For systems requiring installation by a professional integrator, be clear about the steps involved— don’t leave it to the buyer’s imagination. Lastly, manufacturers and the sales channel may want to offer a forum where prospective buyers can connect with MRAV owners to learn about the positive aspects of incorporating a system in their home. Considering the price and level of purchase involvement associated with MRAV systems, testimonials can be a powerful tool to promote awareness, interest and purchases. • November/December 2007 L Education Key in Multi-Room A/V Sales ift the roof off an American over 2006 sales. But while the outlook for household, and you’re likely to the industry is promising, CEA’s recent qualdiscover a cache of digital con- itative consumer study Uncovering the Bartent from photos, video, music, riers to the MRAV Retrofit Market reveals games and more. But while several barriers to ownership, including today’s consumers enjoy their digital content cost, other financial priorities, installation stockpiles, they are not willing to sit on them concerns, no perceived need, fear it will not like a dragon protecting his treasure. Instead, work right or break down, and unfamiliarconsumers increasingly desire to shift their ity with the technology. Could these pitfalls content around the house from room to room derail growth or is there something the industry can do about it? or even out on the back deck. What are their options? Through a series of in-depth interFor years, multi-room audio/video views, the study triangulates on solu(MRAV) systems have enabled contions to overcoming these objections. sumers to easily and seamlessly move The analysis goes on to suggest stratand enjoy their content throughout egies to convert uninterested homthe house, but until recently these eowners to interested prospects and solutions have been limited to new to convince interested homeownSteve Koenig construction. Now a new breed of ers into purchasing an aftermarket MRAV systems is emerging to address ret- MRAV system. rofit applications, unlocking an entirely new customer base. Given the chilling sales cli- Fears of Owners & Non-Owners mate in the new home sector, aftermarket Many ownership barriers are shared by systems could be a key factor in cultivating both groups of non-owners, regardless of MRAV industry growth. their level of interest in purchasing a retrofit How will these new retrofit solutions MRAV system for their home, yet some are impact the market? CEA industry forecasts unique to each group. Other financial prioripredict shipment revenues of MRAV prod- ties and fear of a system breaking are more ucts (excluding speakers) will approach of an obstacle for interested homeowners, $200 million this year, a 10 percent increase whereas low familiarity is more of an obstacle www.ce.org Frank Renlie/Getty Images 51 http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - November/December 2007

Vision - November/December 2007 Contents Shapiro's Spectrum In This Issue The Economist C4 Visionary Tech Speak Going Global Eye on Business Tech Policy Special Supplement: CES Unveiled 2008 CES Technologies to Watch Eastern Europe Embraces CE M&A Fest Displaying the Future CEA Newsline Market Insider Just the Stats

Vision - November/December 2007

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