Blackfriars' Marketing

Thursday, March 03, 2005

The marketing challenge to plasma TVs

Today's New York Times Circuits section has an article on the fact that plasma TV markers are starting to face serious challenges to their current domination of the flat screen TV market. Blackfriars made that call earlier this year. The article then goes on to compare the various features of plamsa TVs versus its competing technologies.

Our view: plasma TV marketers should be doing some serious marketing planning. Blackfriars saw all the wonders of flat TV (1 2), at CES (our web site is still getting numerous hits every day by people looking for that Samsung 102-inch plasma TV). But like many technology products, the high-tech sell of plasma TV is wearing thin, particularly as plasma tries to break out of its niche of video afficionados. If marketers aren't careful, plasma companies could be engaged in the same race to low-margin commoditization that is afflicting PC makers today.

So what should plasma marketers do? For one thing, start selling the lifestyle benefits of TV, not its geeky features. Sharp notes that its LCD-based flat screens are the only ones you can hang near a window; plasma makers need to similarly differentiate their products in terms of what consumers care about. Secondly, plasma makers need to start making flat HDTV simple to install and set up. The LCD world has already been through that battle with computers, and they've done a good job. If plasma doesn't start rethinking their image, these systems that currently cost between $4,000 and $40,000 will start looking as cool as 8-track tape decks. How soon do they have to get their act together? They have some time; they just have to have their products consumer-friendly before Apple enters the HDTV market. But don't wait too long; that could happen this year.