Harman Consumer Systems Group Announces Expansion With Harman Kardon Reentering Car Audio Aftermarket
WOODBURY, N.Y.--Nov. 20, 2002--Having successfully captured the European GPS mobile navigation market, the Harman Consumer Systems Group (HCSG), a division of Harman International Industries, Inc. , announced today that its Harman Kardon brand is launching a reentry into the U.S. electronics aftermarket with its TrafficPro(TM) system.
TrafficPro will be the first Harman Kardon car audio product to be available at retail locations on this side of the Atlantic in nearly 20 years. A onetime leader in the aftermarket car audio arena with a full product line, Harman Kardon in recent years has focused its mobile electronics efforts solely on the original equipment manufacturer (OEM) business and home audio. Harman Kardon audio systems long have been the preferred OEM factory upgrade of many premium car manufacturers.
HCSG's two existing aftermarket car audio brands, JBL and Infinity, are known for premium speakers and amplifiers, so it opted to use the Harman Kardon name for the new head unit. Harman Kardon is associated with quality digital-audio products. Together, Harman Kardon, JBL and Infinity make up the HCSG Mobile Audio Division.
HCSG has chosen to reenter its Harman Kardon brand in the aftermarket sector now because it believes it has the right product at the right time. TrafficPro is the most highly integrated single DIN CD/radio/navigation system available. It is smaller than most other mobile navigation systems - fitting neatly in the dashboard of most vehicles - and rather than relying on a visual-based, monitor-oriented guidance system, TrafficPro "talks" drivers to their destinations. Unlike many other GPS systems available in the U.S. navigation aftermarket, TrafficPro has a proven track record for performance and ease of use.
"TrafficPro is the most popular system in Europe and we anticipate that its safe and easy operation will make it well received here, too," said Christopher M. Dragon, director of brand marketing, HCSG Mobile Audio Division. "We're confident it's a superior system in terms of performance, lack of driver distraction and ease of installation."
To date, more than 200,000 TrafficPro units have been sold in Europe. Dragon believes the $24 million-a-year American mobile navigation market is still in its infancy with plenty of room to grow. "The U.S. navigation market is about one-tenth of what it is in Europe, so we see huge growth potential," he said.
TrafficPro is designed, engineered and manufactured by Harman/Becker Automotive Systems, a world leader in Navtech-based GPS mobile navigation. Harman/Becker is a division of Harman International Industries, Inc. TrafficPro has been critically acclaimed in the European press and by automobile organizations as the top aftermarket model for performance, precision, ease of use and value.
TrafficPro provides world-class audio reproduction and the latest navigation features in a single, easy-to-use unit. The system is able to store even the longest of routes while the driver listens to his or her favorite CD or radio station. It provides audio turn-by-turn directions in one of five languages, and it can permanently store up to 50 destinations.
TrafficPro represents HCSG's first foray into the U.S. navigation aftermarket, and the company is unveiling a unique sales plan for the system. Rather than focusing exclusively on the traditional 12-volt sales model that caters primarily to younger males and sound enthusiasts, the company commissioned research to identify "key" navigation customers. Harman Kardon is pursuing these key groups with extensive targeted advertising and marketing efforts, including direct mail and Web promotions.
The initial marketing effort will focus on customers in the New York and Los Angeles areas. To support the launch, TrafficPro will be available in more than 50 Circuit City stores throughout these two markets and online from Crutchfield, the leading online retailer of car audio products, at www.crutchfield.com.
Teaming with Circuit City allows Harman Kardon to offer all consumers the same high-quality TrafficPro installation experience regardless of where they live. In addition, TrafficPro will be on display and available for sale in Circuit City locations throughout the New York and Los Angeles areas.
Harman Kardon has also partnered with Crutchfield, the nation's premier resource for the do-it-yourself (DIY) enthusiast, to provide a service option for DIY consumers. In addition to the TrafficPro unit and CD-ROM maps, consumers who purchase directly from Crutchfield will receive the components required for installation, including the appropriate vehicle wiring harness and a dash kit if necessary. They also have access to Crutchfield's world-class customer service and support.
In addition to demonstrating the product at Circuit City stores, consumers can "test drive" TrafficPro online at www.hktrafficpro.com. Consumers also have the option to purchase TrafficPro directly from Harman Kardon through the www.hktrafficpro.com Web site, as well as via an 800 number and a response card on the direct mail pieces. When TrafficPro is purchased from Harman Kardon, customers will receive a voucher for installation and information on arranging an appointment at their nearest Circuit City store.
The company plans to expand its TrafficPro dealer network to include a limited number of select specialty retailers in early 2003.
TrafficPro's price of $1,499 includes installation and CD-ROM maps for the entire United States. Consumers who opt to purchase TrafficPro from Crutchfield and install the unit themselves will receive a $100 gift certificate towards a future purchase at Crutchfield.
"Because we're able to tap into Harman International's vast resources, we have a unique opportunity to reenter the aftermarket-head-unit market with a known brand and a proven navigation system," HCSG's Dragon said. "We know the merits of the Harman Kardon TrafficPro, and they enable us to enter the navigation market in the United States with a smart approach and an unrivaled system."
For more information about TrafficPro, consumers may visit www.hktrafficpro.com or call (800) 422-8027.
The Harman Consumer Systems Group (HCSG) is a leading designer, manufacturer and marketer of a wide range of high-fidelity loudspeakers, audio and video components and multimedia systems for use in homes and automobiles, and with computers. The Group's brands include JBL, Infinity, Harman Kardon, Mark Levinson, Madrigal Imaging, Revel, Proceed, Audioaccess and Lexicon.
HCSG is a division of Harman International Industries, Inc. Harman International (www.harman.com) is a leading manufacturer of high-quality, high-fidelity audio and video products for the consumer and professional markets. The Company's stock is traded on the New York Stock Exchange under the symbol "HAR."