Kenwood Reports Strong First Fiscal Quarter Sales and Market Share Growth

LONG BEACH, Calif.--Kenwood USA Corporation has announced strong first quarter sales results and significant gains in market share. The company attributes the robust gains to popular new product offerings, effective sales promotions and increased consumer demand for enhanced navigation and connectivity capabilities. “We managed our way through a difficult market environment and capitalized on business opportunities like never before,” stated Keith Lehmann, Senior Vice President of Kenwood’s Consumer Electronics Sector. “We came out of CES with one of our best product lineups coupled with the very aggressive ‘King of Spring’ promotion and enhanced in-store merchandising. Our dealers responded favorably and took a strong position with Kenwood in 2007, particularly with in-car navigation and OEM integration products. The result was the achievement of an important quarterly business target and a welcome increase in market share.”

The DNX7100 DVD Receiver with built-in advanced navigation system ($1,600 MSRP) is currently the best selling model within the mobile electronics channel according to industry data. “In-car navigation is the specialists’ answer to the rise in popularity of portable navigation products,” said Lehmann. “Our DNX7100 has proven to be a very satisfactory navigation solution for Kenwood customers with the highest expectations. It has also been an asset to Kenwood dealers, who have reported fast turns and exceptional profitability.”

Kenwood’s highly successful ‘Fear No Dash’ campaign, centered on the company’s CarPortal™ line of OEM integration products, has given dealers more options than ever in building mobile audio/video systems for customers with newer vehicles featuring electrical or mechanical difficulties. “The CarPortal message is well understood and embraced by forward-thinking installing dealers who are transitioning their business to sell and install aftermarket electronics into nearly every vehicle,” explained Lehmann. “The ‘Fear No Dash’ theme takes on additional significance with more dealers every day.”

Part of the success during the last quarter can also be credited to Kenwood’s inaugural Expeditor Program, which supplies qualified dealers with program-specific product and extended warranty coverage necessary for working with car dealerships, fleet companies and other vehicle resellers.

Lehmann also cited first fiscal quarter success with Kenwood’s line of Marine Products, thanks to an increase in product penetration among boat builders, a dedicated category focus. JD Power and Associates recently recognized Kenwood as having a top three position among boat builders in six out of seven watercraft types. “We’re particularly pleased to have the number one position in the ski/wakeboarding audio system category,” said Lehmann.

Kenwood’s dealer promotion efforts have paid-off recently with multiple purchase incentives, mail-in rebates for consumers and enhanced in-store merchandising. “We increased the profitability of our products this year with the Kenwood Excelon EPI program, which was a request of our dealers in late 2006. The ‘More Bass for your Buck” consumer mail-in rebate program was launched July 1 to help drive floor traffic, and our new merchandising materials including a cool new promotional DVD should help to give customers a strong Kenwood message when they arrive at the dealers’ showroom.”

What’s next in the coming months? Lehmann answered, “We have more sell-through activities and dealer profit opportunities planned for mid Summer as well as a few new product surprises later in the year. We’re having a great year and we look forward to keeping the heat turned up.”