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New Development in LCD T V's by Jaygopal Raghavan, Head/VP/GM-Client Servicing, Percept Holdings

New Development in LCD T V's

By : Jaygopal Raghavan, Head/VP/GM-Client Servicing, Percept Holdings
Industry : Consumer Durables Functional Area : Gadgets
Keywords :

Brands

Development

Consumer Electronics

V'S

Market Trends

LCD

Activity:  4 comments  464 views  last activity : 07 06 2010 20:18:04 +0000
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 Vizio - picture perfect 
 Vizio
picture perfect
by Barry Silverstein


When it comes to big name brands in flat panel (LCD) TVs, there are three giants whose names everybody would likely recognize—Sony, Samsung, and Sharp. And then there’s the upstart brand that is developing a name of its own: VIZIO. 		 
 
 Just being in the same league as the big brands would be enough for most young companies, but VIZIO is a legitimate big brand killer: In the second and third quarters of 2007, VIZIO beat out its better-known rivals and took first place in market share, according to researcher iSuppli Corp. VIZIO did fall to third place in Q4 2007 and Q1 2008, but that seemed to be largely because Samsung and Sony used deep discounts and aggressive promotions to compete with VIZIO. Less than one percentage point separates the three vendors in sales, according to iSuppli. Nevertheless, VIZIO is now a brand—maybe the brand—to be reckoned with in LCD TVs. According to CNBC’s Silicon Valley Bureau Chief, Jim Goldman, Vizio came out of nowhere. In 2002, William Wang tried to sell Gateway on the idea of moving from computers to flat panel TVs. Gateway never successfully made the switch—so Wang went off on his own and launched VIZIO. “This is one of the most extraordinary stories I’ve seen in some time,” says Goldman. VIZIO’s numbers have been anything but flat: According to Jim Goldman, VIZIO had sales of US$ 700 million in 2006 and was expecting triple that in 2007. And, says Goldman, all of this revenue is coming from the United States. The company has only recently started to sell its televisions internationally, so the potential for future growth is unlimited. How did a new brand with no defined reputation rise so high so quickly? The company’s slogan embodies the answer: “Where Vision Meets Value.” Very simply, VIZIO came to the market with a quality product at a price that was not just low—it positioned the brand as the low price leader. And in a market where products are typically priced in the thousands of dollars, that is a powerful advantage. VIZIO is based in California and has a small staff in the US, but it manufactures its products in Asia and Mexico. Low overhead means VIZIO can make televisions for a fraction of the price of its larger competitors. In fact, in 2003, a VIZIO 46-inch TV was first introduced into the market at a retail price of US$ 2,799—around half the price of competitors’ similar models. VIZIO has maintained its strategy to be recognized as the lowest-priced brand. For example, the 42-inch screen Vizio “Gallevia” can currently be purchased for as low as US$ 1,199. It was the least expensive LCD TV reviewed by PCWorld (September 12, 2007), yet it earned the best image-quality score of any LCD TV. At the time, comparable sets were selling for anywhere from $200 to as much as $600 more than the Gallevia. VIZIO’s exceptional awareness is also fueled by the brand’s distribution strategy. VIZIO brand televisions are sold exclusively in such giant discount retailers as Costco Wholesale, Sam’s Club, and Wal-Mart, where the bigger brands’ prices can be undercut. Wal-Mart alone gives the VIZIO brand exposure to a huge consumer audience of value-based buyers. It also doesn’t hurt that VIZIO is something of a media darling. In October 2007, TIME magazine called the 42-inch Gallevia one of the “best inventions of the year.” VIZIO has been featured on NBC’s Today Show and ABC’s Good Morning America. Its products have won numerous awards, including Good Housekeeping’s Best Big-Screens, CNET’s Top 10 Holiday Gifts, PCWorld’s Best Buy, Sound & Vision’s Editors Choice, Home Theater Magazine’s Rave Award, and PC Magazine’s Editors Choice. Exceptionally low prices and excellent media coverage have carried VIZIO through its early years, but now it wants to build critical mass. That is a formidable challenge against competitors with very deep pockets, so VIZIO has taken a big step by investing millions of dollars in marketing. In July 2007, VIZIO signed an endorsement deal with 2006 NFL MVP LaDainian Tomlinson, who appeared in a VIZIO television ad late last year. Tomlinson also makes personal appearances on behalf of the brand. In early 2008, VIZIO created the “VIZIO Top Value Performer Award,” presenting the first one to David Garrard, quarterback of the NFL team, Jacksonville Jaguars. VIZIO says the award is intended “to salute the athlete whose performance on the field outpaced his salary by the widest margin.” That’s a novel way to tie the award directly to VIZIO’s unique selling proposition. Linking a brand with sports is a proven marketing strategy. For VIZIO, it makes perfect sense: Sports television programming is a hot commodity, so the marriage with VIZIO’s product line is a natural. If VIZIO can keep pounding competitors with its compelling message of outstanding product value, then the brand could be positioned to score a knockout punch in the market for flat-screen TVs.
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4 comments on "New Development in LCD T V's"
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  Commented by  ravi vyas, sales and marketing, IFB Industries Ltd    | 02 24 2010 08:15:19 +0000 
Is there any real difference in features and quality as compared to big names like Sony, Sharp & Samsung.What about the after sales services and availability in India. By this report it seems that the brand has just clicked because of the price factor and the last couple of months even the rich people of States have been saving money.
Also even the big names manufactures all the products in China only so cost of manufacturing cannot make that big difference.
anyway this is good news as may be the biggies will be forced to rationalise their prices and end customers will benefit. So good peice of information albeit not complete.
  Commented by  shivraj subramaniam, Sales/BD Manager, Al Futtaim    | 10 13 2008 19:01:40 +0000 
I was surprised to see Sharp named aside Samsung & Sony. Both these brands are streets ahead of Sharp,though as every insider knows Sharp has always maintained a much higher quality than its competition.
  Commented by  Bandi Kanna, Head/VP/GM-Corporate Planning/Strategy Almasa Facility Services LLC    | 06 29 2008 05:52:31 +0000 
End of the day . how much does it cost vis a vis Sony .. Samsung or Sharp?
Is the quality and features same as others?
  Commented by  Anurag Mitra, Product Marketing Manager (Asia Pacific)    | 05 21 2008 07:17:37 +0000 
very good info
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