LCD monitor
LG retains the crown
The LCD monitor category continues to be hotly contested between the two Korean companies, Samsung and LG.
LG retained the crown primarily because of high scores on customer and channel marketing, and the introduction of new products which created excitement in the category. On parameters like warranty support and channel relations, it edged past Samsung by a very small margin. Majority of respondents opined that Samsung has significantly improved its channel engagement and management.
AOC climbed to the number three spot on the back of some aggressive channel marketing, forceful pricing, and high volume sales of 15-inch LCD monitors. The difference between an AOC 15.6-inch and one from LG was almost 20 percent, or Rs 900-1,000, during H1 2009.
Acer retained the fourth position, with a distribution strategy that is focused on identifying states and cities where penetration of LCD monitors is low. The biggest surprise was Viewsonic, which was No 3 in the 2008 Channel Champions study, but failed to make it in 2009.
Product availability
While Samsung has a wide network of sub-distributors, LG has achieved wide coverage with its regional distribution network. From the market penetration point of view, both brands are at par. However, LG scored because it had a model in the 15-inch category, while Samsung didn’t.
With the phasing out of CRT monitors, the 15-inch category has found new demand; according to many large sub-distributors, this screen size commands 40 percent of the overall volumes. The 18.5-inch product was the most dominant, comprising nearly 50 percent of all shipments. Also, LG was the first to launch the Monitor TV, while Samsung launched a similar product only recently.
AOC made gains in the market due to the availability of its 15-inch model at a very competitive price, which was 20 percent lower than that of LG’s equivalent offering. The company continues to be strong in the south and west, mainly in class B and C cities. Acer polled the maximum votes from the south, which suggests that the company has good penetration in the region.
Price-performance
Samsung and LG are at par. Samsung is priced 2-3 percent more than LG, but that’s because it operates through a national distribution model and partners get a 21-day credit. LG on the other hand offers no credit to its regional distributors, and for a 14-day credit partners are charged 2 percent extra on the invoice. From a product quality and specifications perspective, channels perceive both brands to be equally good.
With a price differential of 10-15 percent compared to LG and Samsung, AOC continues to be perceived as an economy brand among channel partners. AOC reported a higher ratio of in-warranty failures as compared to the three other brands. Acer is positioned as a value brand, and is available at a price that’s 5 percent lower than those of the two Korean companies.
Partner profitability
Both Samsung and LG scored high on this parameter followed by AOC and Acer. Despite large volumes, respondents said that both Samsung and LG offered relatively better margins. Also, both companies have a strong back-end rebate mechanism for their partners. AOC and Acer have also been focused on ensuring that their partners make good margins.
Marketing and training
LG scored much higher than Samsung on this criterion which in many ways tilted the overall score in its favor. While both companies enjoy strong brand awareness and pull, LG scored far better than Samsung when it came to customer and channel marketing. According to even staunch Samsung partners, LG ran good schemes for customers and channels, and did more local advertising and retail promos. The Monitor TV scheme which LG ran during the second half of 2009 created much excitement in the market. Under the scheme, LG offered a DTH connection with a 21-inch Monitor TV.
Many Samsung authorized sub-distributors who are also AOC partners said that AOC was more aggressive with its channel schemes, an indication that Samsung goofed up on this aspect. Acer scored the lowest because it does neither customer nor channel marketing.
Post-sales support
All vendors offer 3-year onsite warranty support on their LCD monitors. LG ranked slightly higher than Samsung on this aspect. LG got higher rating in class A and B cities, while Samsung got higher rating in class C cities. Acer ranked third on this parameter. While AOC has substantially improved the coverage and quality of its post-sales support during the last 12 months, respondents said that it has relatively more in-warranty problems than other three brands.
Channel policy and management
Overall, LG ranked higher on this parameter followed by Samsung, AOC and Acer. In the 2008 respondents had complained of significant delays in back-end payouts by Samsung. The company worked on this aspect in 2009 and also showed marked improvement in its channel engagement.
While LG continued to be swift in its back-end payouts, there were issues in executing the popular DTH offer on its Monitor TV. However, it was swift to address this matter. The company is also perceived to have more accessible channel manager.
AOC’s channel engagement improved significantly in 2009, however many respondents believe that it now needs to evolve good partner programs. Acer lacks both policy and channel engagement, according to many respondents.
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