Klipsch Group Restructures to Double Retail Sales
New initiative focuses on product categories, clear messaging, retail strategiesSeptember 30, 2013 By Jeff O'Heir
The Klipsch Group, under the leadership of CEO Paul Jacobs, has embarked on a three-year strategy designed to double the sales of its three brands through its retail partners.
The crux of the plan involves restructuring the major product categories that fall under the Klipsch, Jamo and Energy lines: separates, including higher-end components and speakers; connected systems, including 5.1 speaker packages, soundbars, Bluetooth speakers and wireless whole-home systems; mobility, including headphones and ultraportable Bluetooth speakers; and commercial.
As part of the restructuring, marketing and design teams are now assigned to each product category, as opposed to having separate teams working for each brand. A main element of the Klipsch Group's goal is to transition the brands' positions from performance based to one centered around lifestyles.
"The teams will eat, breathe and live" those categories, Jacobs said. "If you're assigned to separate audio, the question will be how do you take three brands and create the most compelling story to tell the world. They won't worry about what's happening in headphone or the Bluetooth speaker space. Their interest is what's happening in high-end components."
The idea is to create unique products and marketing strategies for the Klipsch, Jamo and Energy brands instead of, for example, all three selling three similar soundbars for similar prices. The goal is to offer retailers unique products that leverage the heritage of each brand but through the ease of dealing with a single company.
"Now you can bring in products with all different brand values from one company," Jacobs said. "Retailers want product range that works on the sales floor."
The Klipsch Group recently equipped its sales and marketing teams with a "Briefcase" tablet app that allows them to easily show retailers all of the different products under the three brands, to customize that assortment to best fit a sales floor or showroom, and model the offerings for a particular client base. The company is thinking of offering the app to its retail partners to help them make choose products and create mixes when needed, Jacobs said.
Jacobs just logged in 27,000 miles in 17 days to outline the restructuring for existing and non-traditional retail partners. While the group will maintain its support of traditional CE dealers, it needed to restructure, transition its brand positioning and seek new partners because the way in which consumers buy, discover and experience new products has changed so much in the last few years, he said. While high-end audio enthusiasts wouldn't think of buying anything before listening to it at their favorite dealer, there's a whole legion of younger consumers that buy a variety of audio products based solely on recommendations through an e-tailer or non-traditional retailer.