Us Pioneer

1.0 Situation Analysis

Pioneer Corporation, a top maker of consumer and commercial electronics was founded in 1938 in Tokyo. U.S. Pioneer was established in March 1968 under the then Vice President, Ken Kai. Pioneer has a global presence. In 1977, 65% of total sale was from international markets. Pioneer’s marketing and advertising efforts have helped to get their name out during the early years and helped to keep sales up.

U.S. Pioneer is facing a problem with its value network; its marketing channels, and the dealers in particular who are disparaging Pioneer products with a “bait and switch” advertising tactic. Pioneer upset dealers/other manufacturers with its new price list with multiple gross margins. Some dealers were dissatisfied with the margins they were offered on Pioneer products so were comparing the equipment negatively to other manufacturers and were not trying to sell them. Pioneer’s relationship with their dealers went downhill. During this period components was facing stiff competition from compacts and consoles. To overcome the problems faced U.S. Pioneer came up with strategies:

* Distribution Shift: Shift retail distribution away from specialty stores to department stores and catalog showrooms.

* Multiple Branding: Offer several product lines of different price points and varying quality under separate brand names.

* Company-owned stores: Move toward operating their own retail stores.

* Dealer Communication Program: Build relationships with dealers by means of direct mail-outs, cash rebates, incentives and all dealer conference.

2.0 Statement of Main Problem- Level of Analysis

This scenario is a Level 3-Disciplinary issue: specific problem or issue that requires a solution (Patti, 2010).

Should Pioneer make considerable investments in tangible and intangible forms in order to revive their position and build profitable relationships with their dealers and consumers?

Marketing success will require building...