Pioneer, Working With TBWA Disruption Consultancy, Reinvents Itself For The Discerning Consumer Seeking The Best In Home Entertainment

Game-Changing Technology Allows the Company to Forego Commodity Market and Focus on Discerning Entertainment Junkies Who Demand Premium Products

May 17, 2007

Pioneer marks the tenth anniversary of flat panel display sales in the U.S. with the introduction of its new, most advanced line of flat-panel televisions ever and a brand reinvention aided by the TBWA Disruption Consultancy. Earlier this year, Pioneer announced an engineering project to remake its flat panel televisions, harmonizing each element for deeper blacks, richer colors and unrivaled performance. The game-changing technology redefines the category with eight new television models that meet tremendously high standards set by the most discerning consumers. The engineering project was referred to as Project KURO, a Japanese word meaning deep, black and penetrating, reflecting on the company's goal of creating a flat panel television so superior in quality that it would evoke tremendous emotion from viewers. The company also embarked on the initial stages of a Disruption(R) process with TBWA to reinvent the home entertainment business, embracing its role as a specialist in audio and video. The multi-year project will touch all aspects of the business including not just marketing and advertising, but product development, retail distribution, post-purchase service and more. With this initiative, also named Project KURO, Pioneer will break away from the commoditization model that most manufacturers are taking with flat panel displays. The company will offer continual advancements in technology that appeal to sports and entertainment enthusiasts who demand a heightened emotional experience only available through Pioneer products. The redefined consumer target is not primarily categorized by age, gender or other demographic information, but rather through their appreciation for high-quality audio and video, passion for entertainment and sports, and the income to afford high-end purchases. This audience is a critical part of the luxury goods market in the U.S. where most indexes have posted an average increase of at least 13 percent between 2001 and 2006 compared to less than 5 percent for the Dow Jones Industrial average during the same period. "The DNA of our company stems directly from our engineers' passion to design and manufacture the highest performing audio video equipment possible," said Ken Shioda, general manager for display business for Pioneer Corporation. "We refuse to compromise on quality in order to reach a mass audience. Instead we will allow our best-in-class engineers to develop products that can truly connect with human emotion, and can be fully appreciated. We do this with pride, knowing that consumers will bring our product into their homes with pride of ownership that comes from having the best." With the launch of the new displays, TBWA/Chiat/Day is Pioneer's home entertainment agency of record with a team led by its Los Angeles office. Overseeing the project is Chairman and Chief Creative Officer Lee Clow. Clow is known for numerous marketing initiatives for brands like Apple Computer, Adidas, Pedigree, and the creation of the Energizer Bunny. TBWA will handle Pioneer's flat panel television business globally as well as additional audio and video assignments. The work will include brand strategy, creative, and in some markets, media buying through Omnicom Media Group. New campaigns will launch this fall. "I happen to have a Pioneer Elite at home now, but the next generation seems to take the theatrical intensity of film to a kind of rich contrast-laden place that, as an art director, I love. The blacks are black, the colors are kind of crushed and intense. I just happen to love the saturation and richness of the picture that we're trying to capture in the marketing and advertising initiatives," Clow said. Pioneer's Home Entertainment and Business Solutions Group develops high definition home theater equipment for sports and entertainment junkies. Its flat panel televisions, Blu-ray Disc players, A/V receivers and speakers heighten the emotions created by great HD content. The company brands include Pioneer(R) and Elite(R). When purchased from an authorized retailer, consumers receive a limited warranty for one year with Pioneer products and two years with Elite products. More details can be located at http://www.pioneerelectronics.com.

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