Consumer Electronics Industry Snapshot Philips
[To support the speciality retailer] I think there's a number of things we should commit to as a company. You will never hear me use the word "exclusive," but the speciality guy has got to count on a constant flow of new products and technologies that he has a short window. Secondly, he has to depend on excellent communication and depend on me to protect the positioning of the product in the marketplace--the most common is a MAP program--so he can maintain his position in the market. We have to make sure the value that we attach to our products is a value that everyone agrees with and is maintained fairly well in the marketplace.
Our brand transition strategy is to move from Magnavox to Philips Magnavox and, at some point, when the unaided consumer awareness is high in Philips, we then will move to Philips and only Philips, and then move to Magnavox as a tactical brand.
Magnavox, as a brand, is important to TV and VCRs, but it's not important to audio or peripherals. We going through the difficult process mapping now what says Philips, what says Magnavox and how we transition. In the case of audio, we'll probably move more quickly. In the case of TVs and VCRs, we'll probably more more slowly. By 2000 we'll be well on the way.