Most parts of the world know relatively little about New Zealand except for its adventure sports and the beautiful scenery featured in "Lord of the Rings". However, it has been a significant market for Shriro for over a decade. In-Form talked to Dave Wenham, Managing Director of Monaco Corporation Ltd, Shriro's New Zealand subsidiary, on what's been happening in the land of the Kiwis.

While New Zealanders are noteworthy for their love of the outdoors and adventure sports, they are also very passionate about their homes. This pride translates into a desire to ensure that their homes are full of the latest and greatest products - and Monaco is certainly in the business of making that happen. "Not surprisingly, you can describe much of our product range as image enhancers for the owner - something we also commonly refer to as boys' toys," says Dave. "Consumer electronics has become one of the most desirable product categories, outperforming the retail sector in general. The constantly-changing "must-have" products continue to drive the market."

A History of Success in New Zealand
Monaco has been present in New Zealand for over 25 years, starting off by representing two iconic and well-loved brands - Casio and Pioneer - brands it continues to represent even today. As the market grew, Monaco continued to add more brands to its portfolio and today it has one of the most diverse and powerful portfolios in the consumer electronics category - with products ranging from plasma TVs to side-by-side refrigeration to gaming software.

"We are New Zealand's largest multi-brand consumer electronics marketer, - if you have a plug in your home, we have a product for it!" says Dave. "We are proud of our long-standing relationships with some of these brands - we have worked with them for so long that they feel like our own. In addition to Casio and Pioneer, which have been with us from inception, we have Toshiba and TDK, who we have represented for fifteen years, as well as General Electric and Dimplex. We are also the largest multi-brand marketer of video game software in New Zealand representing Acclaim, THQ, Ubisoft and Nintendo."

Shriro bought into the publicly-owned Monaco in 1991 and privatized it in 1997, deciding to keep the Monaco brand untouched for its tremendous equity in New Zealand.

Growing Organically
Monaco has gone from strength to strength in New Zealand, with record 2003 results only the latest in a track record of success. The secret formula? Organic growth. "We've always had success in growing the business through our people and our relationships," comments Dave. "We've had a great success rate in introducing new products from existing principals to our wide customer base - especially those in the electronics category or that appeal to younger audiences."

Since Monaco's expertise is concentrated in the consumer electronics area, the company has relative flexibility in placing people where their skills can be best utilized. The company has fifteen product managers and four marketing managers, each assuming sole responsibility for one specific area. Where possible, Monaco also grows its people and their skill sets by giving them the opportunity to move between product areas.

As with all markets, the company pays great attention to developing and maintaining a strong relationship with its principals and retail partners. Monaco's strategy is to be the "sole distributor" or "sole agent" for all the brands it represents - again, a testament to the trust it has built up over the years with its brand principals. The sales representatives and product managers are passionate about their brands and treat them like their own - building and maintaining distribution and service networks nationwide. Monaco also emphasizes continuous marketing and promotional campaigns for all its brands. "Passion, ownership and mutual commitment - these are the keys to our successful relationships with our brand principals," says Dave.

Smart Marketing in a Competitive setup
Competition comes from all directions and at all price points. Monaco brands go head-to-head with top-level prestige brands on the one hand, and with cheaper brands on the other. The retail scenario consists of large chains of electronics stores, as well as buying/ marketing groups that represent groups of independent retailers, and Monaco's distribution and marketing strategies need to be appropriate across these different types of channels.

The most critical factor, however, is the rapid price drop that has become a staple of the consumer electronics market worldwide. "We have literally seen the product life cycle shorten from years to in some cases just a few months," remarks Dave. "This keeps us on our toes in terms of marketing / promotional strategies that help to keep products moving off the shelves. We aim to run innovative campaigns that target the value- and quality-conscious consumer - it's obvious we can never win if we compete on price alone."

A major success was the "Lazy Bugger" promotion, which was a sell-out success across New Zealand. The promotion gave away a free Laz-y-boy armchair with every 43", 50" or 61" Toshiba Projection TV sold.

Other branding campaigns include the Gash & Gore prize, where Monaco in conjunction with a monthly magazine gives away a free G-Shock watch to the bodyboarder or surfer with the most gory injuries. "It's all in good fun, and innovative ideas just click," says Dave.

Set to Keep Winning
Monaco's success in New Zealand is merely a result of getting the details right. And the most important facet is its relationship with its employees. Many of Monaco's staff are long-time employees who have built up familiarity and trust with their brand principals and retailers. "We have a great team, a great set of relationships, and a winning portfolio of brands," says Dave, himself a 13-year Monaco man. "We have fun doing what we do, and that pays off in results!"

The company's sights are set on the future, as it aims to keep building on its track record of success to achieve even greater heights in 2004. Monaco aims to be in the top three in its product categories and to increase its share of the rapidly growing market for LCD and plasma TVs and DVD-Recordables.

We wish them luck and continued success!