Brand Development, Positioning, Key Messaging

Strategic Brand Development, Positioning and

Key Messaging Recommendations

Presented to

Presented by

2

Today’s age da

Strategic brand development

Competitive review

Positioning

Key messaging

Six benefits of a strong brand

A a d ide tifies you goods o se i es as distinct from others

The benefits of a strong brand include:

1. Premium brand image commands a premium

price

2. A premium price creates a perception of quality

3. Perceived quality has been shown to positively

affect customer usage

4. Perceived quality is the single most important

o t i uto to a o pa y’s etu o i est e t

5. Perceived value can be a point of differentiation

6. When buyers need to make a wise decision, they

choose the brand name product over the no-

a e o e. You’ll e e e fi ed fo uyi g IBM.

3

Channel Vision strategic brand development based on

CV management and dealer/distributor survey

1. Primary research – CV’s ,0 distributor/dealer database

2. Secondary research – vertical and

horizontal lit review

3. Competitive review

4. CV management input

1. Brand & product awareness –

% so e hat o ot fa ilia

2. Brand imagery; lack of positioning

3. Lack of product family clarity

4. La k of e efits essagi g

1. Few negative brand associations

2. Have many offerings to meet

consumer demands: energy,

security, entertainment systems

3. Competition gets stiffer everyday

4. P i e is ot a diffe e tiato

1. Channel activities

• Direct marketing of specials

• Advertising

2. Coop sales/collateral materials

3. Website improvements

1. Focus messaging on most

important selection criteria

2. Raise brand visibility among key

decision makers

3. Promote product attributes and

e efits

1. Use tagline/phrase/descriptor

• Promotes brand essence

• Promotes product offerings

• Opportunity to cross sell

2. Leverage key market drivers

4

Summary of AUDIO/VIDEO key o petito s’ st e gths a d eak esses ased on CV management and distributor/dealer survey

Brand development is a communication function that includes analysis and planning o ho the a d is positio ed i the

a ket , hi h ta get audie es the a d is targeted at, and building a desired brand reputation

Tangible elements of the brand include products – their look, price, packaging – interaction with employees, whether the company stands behind its products and honors product performance promises

The intangible elements are brand promises and experiences consumers take away from the brand


5

Strengths

• Complete solution with touch

screen controls

• Easy to program

• Great aesthetics

• Knowledgeable support

• Marketing programs

• Scalable solution

Weaknesses

• Customization of interface is limited

• Difficult to make changes/updates

• Low equipment margins

• Need better 2-way RS232 drivers

• Need longer tech support hours

• Not very flexible technology

• Wireless touch panels are horrible

Strengths

• Competitively priced

• Delivers on time

• Easy method to place orders

• Has 24/7 tech support

• Has high-quality A/V products

• Has rebate program

• Responds to problems quickly

Weaknesses

• Brand not well known by consumers

• Distributor support

• Getting product through distribution

• Lack of apps

Strengths

• Competitively priced

• Industry leader

• Only focus on distributed audio

solutions

• Scalable solution

Weaknesses

• Co erge e is happe i g, ut they’re still way behind

• Expensive

• Loss of their 4-room system

• No protection from unauthorized

internet sales

• Not enough variety

Strengths

• High-end solution

• Proprietary system

• Touch screen controllers

Weaknesses

• Complexity

• Difficult to program

• Expensive

• Shipping costs

• Too many resellers

31% SOM 17% SOM

9% SOM 8% SOM

SOM = Share of Mind

Summary of INTERCOM key o petito s’ st e gths a d eak esses ased o CV management and distributor/dealer survey






6

Strengths

• All-in-one solutions available

• MDU, commercial, residential

offerings

• Specialize in intercoms

• Variety of product offerings

Weaknesses

• Complicated design

• Delivery

• Lack of integration

• Old technology

• Some dated models

• Support

Strengths

• Aesthetically pleasing

• Direct call features

• Music integration

• Room-to-room communications

Weaknesses

• Looks cheap

• Low amplifier power

• Not wireless

• Only one design

• Poor sound quality

• Wiring connectors are touchy

Strengths

• Both room-to-room and phone

integration options

• Compatible with popular KSU phone

system

• Multiple finishes available

Weaknesses

• Getting product from distributors

• Has radio interference issues at times

• Indoor room intercoms are ugly

• Lack of integration with other

products in the home

• Limited 3rd party integration

• Very limited price protection

Strengths

• Compatible with touch screen

(Control4 Only)

• IP camera integration with app

Weaknesses

• Ca ’t se d s apshot of ho ra g doorbell to smartphone easily

• Does ’t o e t to ell pho e

• Does ’t i tegrate to ho e pho e system

• Must use proprietary touch screens

a d do ’t ork o iPad/A droid

15% SOM 15% SOM

13% SOM 11% SOM

SOM = Share of Mind

Summary of IR REPEATER/DISTRIBUTION key o petito s’ st e gths a d weaknesses based on CV management and distributor/dealer survey






7

Strengths

• Expanded assortment/wide range

of options

• IR for any application

• Operates in wide frequency range;

covers almost any product

• Reliable and dependable

• Started the IR repeating business

Weaknesses

• Control parameters within

environment

• Distribution problem

• Getting outdated

• Not reliable

• Support

• Very messy transition to Core brands

Strengths

• Aggressively priced

• All-in-one solution for any application

(plasma/LCD)

• Compact design

• Reliable solution

Weaknesses

• Distributor support

• Getting product through distributors

Strengths

• Audio/Video expert

• Co pati le ith halle gi g applications

• Expanded assortment

• Reliable

Weaknesses

• Expensive

Strengths

• Low cost solution

• Not available online = higher margins

• Purchases contribute to overall

rebate

Weaknesses

• Creeping prices up, up, up

• Lower quality

• Made in China

• Reliability

• Some product limitations

35% SOM 16% SOM

9% SOM 9% SOM

SOM = Share of Mind

Summary of REMOTE CONTROL key o petito s’ st e gths a d eak esses based on CV management and distributor/dealer survey






8

Strengths

• Easy to operate

• Ergonomic back lighting

• Fast and simple programming

• Great support

• The app – it’s easy to use

• The LED screen

• Wide acceptance among mftrs.

Weaknesses

• Drivers could be improved

• Frequent set-up issues to overcome

• Limited user interface flexibility

• More remote programmable buttons

• Network reliant

• No low price entry point

• The app is ’t usto iza le

Strengths

• Good product line

Weaknesses

• N/A

Strengths

• Capability

• iPad control

• Selection

Weaknesses

• Complexity

• Price

• Programming time

• Takes way too long

Strengths

• Great customer service

• High-end for clients who like toys

• Large database of manufacturers

• Lows and works well

• Programming software

• Well-built, flexible platform

Weaknesses

• Distributor availability

• Docking stations

• Have to build a device library before

it’s easy

• Need a simple remote option

• Supply problems during transition

• Takes extra time to program

26% SOM 17% SOM

4% SOM 9% SOM

SOM = Share of Mind

Summary of STRUCTURED WIRING key o petito s’ st e gths a d weaknesses based on CV management and distributor/dealer survey






9

Strengths

• 3 shipping locations – CA, TX, NC

• Direct to dealer model

• Great support

• Great website

• Price protected

• Rebate program

• Variety of product combo packages

Weaknesses

• Bland

• Can be a little flaky

• Distribution center products look

cheap and unprofessional

• Quality

• Shipping cost

• They’ll let al ost a yo e e a dealer

Strengths

• Broad range of products

• Good marketing

• Good penetration in building market

• Outside sales force

• Rebate program for builders and

distributors

• Visible presence in distribution

Weaknesses

• Can be very sensitive

• Lack of supply by distributors

• Way too expensive

• Weird SKUs

Strengths

• Availability

• Comparable price/quality to CV

• Is widely available -- including retail

and electrical outlets (Home Depot)

• Recently acquired home

automation line with security

• Wide variety of products

Weaknesses

• Expensive

Strengths

• 20-year warranty option

• Designed to mount in other

a ufa turers’ e losures

• One of the largest enclosures in the

i dustry 50


Weaknesses

• Brand less known by consumers

• Limited range

• Not much demand for this

• The powered coax distribution blocks

have too narrow of bandwidth

23% SOM 16% SOM

15% SOM 14% SOM

SOM = Share of Mind

Summary of SURVEILLANCE SYSTEMS key o petito s’ st e gths a d weaknesses based on CV management and distributor/dealer survey






10

Strengths

• Analog and IP solutions

• Cannot be shopped online

• Certified integration with most

home automation platforms

• Excellent branding

• First with analog solutions for

Control4 integration

Weaknesses

• Could be easier to setup DVRs and IP

cams

• Lack of different form factors

• Need more camera styles

• No rewind in IP camera app

• Not many options on cameras

• The remote app

Strengths

• Certified integration with most home

automaton platforms

• Exclusive to surveillance category

Weaknesses

• Cameras and chip sets tend to be

inconsistent when it comes to color

reproduction

• Lack of attention to detail with

product support

• Literature

• Not very friendly

Strengths

• Integration with home automation

systems (IP)

• Primarily focused on the security

market


• Widely distributed/accessibility is

good

Weaknesses

• Distributor options

• Have had some problems with bad

hard drives

• The support guys typically have no

real solid understanding of networking

• Their ra d a e, “pe o

Strengths

• 24/7 tech support

• Aggressively priced

• IP integration with home automation

platforms

Weaknesses

• Limited selection of low-profile

cameras

• Not inexpensive

21% SOM 9% SOM

9% SOM 9% SOM

SOM = Share of Mind

Discovery summary: Who is Channel Vision – distributors and

dealers say . . .

Positive – Best RF splitters

– Customer service

– Front door intercom works well

– Great modulators

– Great people and products

– Great price points

– Innovative products

– J box camera 6200 – best little front door camera on the market

– Large product selection

– Long history in the industry

– Old reliable

– Product quality

– Product reliability

– Respected brand

– RF distribution products

– Structured wiring products

– They ha e p odu t offe i gs e a ’t get f o othe s

– They have products that solve unique requirements

Negative – A little outdated

– Better distributor support

– Builder program

– Greater market penetration with installers and distribution

– Lack of brand recognition

– Lack of quality

– More up-to-date marketing

– More visible/viable consumer marketing

– Need a catalog

– Need comprehensive documentation on product interoperability

– Need more apps

– Need more information on products and pricing

– Need marketing info – why should I buy and where

– Need to market more to the industry

– Never had a rep call on me

– New logo

– Tech support needs more techs

– Weak field support

– Website navigation

– Website not easy to spec products

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#1

#6

#8

#5

#10

#10

Discovery summary – Competitive taglines promote a

range of brand positions and category offerings

Complete Home Control

Integrated Control and Automation Systems

A/V Distribution & Control Systems

Video Security Intercoms

You turn it on. We make it work.

Changing The Way Custom Installers Do Business

The First Name in Custom Installation

It’s U de Co t ol Security & Automation

Simply Unique

Security Solutions

12

Current perceptual map of key competitors and

Channel Vision brand positioning

13

5% 10% 15% 20% 25% 30% 35% 5% 10% 15% 20% 25% 30% 35% HIGH BRAND

AWARENESS LOW BRAND

AWARENESS

EMOTIONAL

LIFESTYLE BRAND

RATIONAL

PRODUCT-CENTRIC BRAND

Future perceptual map of key competitors and

Channel Vision brand positioning

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5% 10% 15% 20% 25% 30% 35% 5% 10% 15% 20% 25% 30% 35% HIGH BRAND

AWARENESS LOW BRAND

AWARENESS

EMOTIONAL

LIFESTYLE BRAND

RATIONAL

PRODUCT-CENTRIC BRAND

Distributor and dealer key selection criteria and perception

of Channel Vision Distributor and dealer key selection

criteria in rank order

1. Product reliability

2. Product availability

3. Products in stock

4. Knowledgeable support

5. Treats us well

6. Competitive pricing

7. Easy to place an order

8. Brand reputation

9. 1-5 year warranty

10. Intuitive website

CV’s pe fo a e y ite ia

1. Product Reliability – not asked

1a. P odu t Quality as asked

a. A/V p odu ts: % yes, they’ e high uality

b. Intercom: 33% yes

c. IR repeater/distribution: 44% yes

d. Remote control: Not asked

e. Structured wiring: 47% yes

f. Surveillance: 36% yes

2. Product Availability – Not asked

3. Products in stock – Not asked

4. Knowledgeable tech support – 22% yes

5. Treats us well – Not asked

6. Competitive pricing – 52% yes

7. Easy to place an order – 32% yes

8. Brand reputation – Not asked

9. 1-5 year warranty – Not asked

9a. Has 1-year powered product warranty – 26% yes

9b. Has 10-year passive warranty – 12% yes

10. Intuitive website – Not asked

15

X

X

X

X X

X

X

X

= Asked and Answered

X = Survey Did Not Ask Question

Channel Vision current messaging critique 1. No tagline, phrase or descriptor

2. No consistent key messaging or theme

3. No positioning

4. Product-centric messaging only – Product descriptions mostly without benefits

– Messages not consistent with top selection criteria

5. Press releases include: – Cele ati g 0 yea s as a leadi g a ufa tu e

of innovative technology products for the Well-Co e ted Ho e™

– Well-Co e ted Ho e™ is a t ade a k of Simpson Strong-Tie Company

16

Grouping products into relevant families will clarify CV

brand essence – the three major market drivers are . . .

Benefits – Control appliances, HVAC

– Convenience

– Cost savings

– Enhanced comfort

– Track and reduce consumption

Relevant CV Products – Distribution modules

– IR repeaters

– Mobile apps

– iPad wall docks

– Structured wiring

Benefits – Deter crime

– Faster emergency assistance

– Life safety

– Peace of mind

Relevant CV Products – Home intercom systems

– IR repeater systems

– Mobile apps

– Structured wiring

– Surveillance systems

– Wall plates, connectors, tools

17

Benefits Enhanced family gatherings

Free refreshments

In-home relaxation

Lifestyle enjoyment

No movie tix to purchase

Viewing/listening convenience

Relevant CV Products Audio Video distribution

iPad wall docks

IR repeater systems

Mobile apps

Structured wiring

Wall plates, connectors, tools

1. Energy 2. Entertainment 3. Security

Taglines and phrases tell your audience what you offer

They’ e o e of the fi st steps a d a integral part of brand building

A good tagline/phrase can be your

least expensive form of advertising

A tagline/phrase creates a first

impression

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I t i si alues of Cha el Visio ’s a d esse e

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Promotes brand essence through relevant

and recognized product categories

Provides clarity and

consistency of messaging

Ho e e e gy, e te tai e t, a d se u ity atego ies a e key d i e s

Promotes breadth of offerings

with opportunity to cross-sell

e Home Energy • Entertainment • Security Systems e Home Products & Solutions e Home Products & Systems i Home Energy • Entertainment • Security Systems i Home Products & Systems If it isn’t Channel Vision, it’s no damn good Intelligent Home Energy • Entertainment • Security Systems Smart Products for the Intelligent Home Intelligent Home Products & Systems i Home Energy • Entertainment • Security Systems i Home Energy • Entertainment • Security Systems

Authe ti . Refle ts CV’s historic and future offerings I tellige t Ho e . . .

Five-year messaging recommendation

P odu t elia ility is the top message to be emphasized – May be expressed through

exceptional warranties

As strategic messages are added to the mix, the weight shifts

The goal is to ensure CV brand awareness improves on top 5 selection criteria

CV brand should be synonymous with reliability, availability and distributor/ dealer support

0%

10%

20%

30%

40%

50%

60%

2014 2015 2016 2017 2018

Product reliability/

warranty claims

Product availability/

in-stock guarantees

Knowledgeable tech

support

Treats us well --

Dist./dealer progams

Ease of placing orders

20

Me

ssa

gin

g W

eig

ht

Channel Vision brand identity and positioning

To consistently provide innovative,

high-quality, reliable iHome

products to customers quickly,

profitably and without fail

BRAND ESSENCE

Innovative, high-quality iHome products

BRAND IDENTITY

PROGRAM TACTICS

Brand/Image

Marketing & Advertising

Product/Service

Marketing & Advertising

PR & Media

Relations

BRAND POSITIONING

iHome Energy, Entertainment & Security Systems

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VISION

To be recognized as a leading

manufacturer of innovative, high-

quality, reliable products for iHome

energy, entertainment & security

systems

MISSION VALUES

A commitment to excellence and

the highest levels of mutual

respect for customers, employees

and vendors alike

Home Energy • Entertainment • Security Systems i

Recommended Channel Vision new messaging

Leading manufacturer of innovative,

high-quality and reliable products for

iHome energy, entertainment and

security systems

1. Descriptor clearly communicates relevant

product offerings

2. Provides consistent messaging

3. Positions the brand

22


Future CV messages for consideration Focus on top 5 selection criteria and

consumer benefits

1. Product reliability

a. 1-year powered warranty

b. 10-year passive warranty

c. 20-year optional warranty

2. Product availability/in stock

3. Knowledgeable tech support (available 24/7)

4. Treats us well

a. Easy method to place orders

b. Rebate program

c. Responds quickly to problems

d. Stands behind warranty

5. Easy to place an order

6. Consumer/end-user benefits

a. Security

b. Energy savings

c. Convenience

d. Lifestyle enjoyment

7. Future press release boilerplate Cele ati g 0 yea s as a leadi g

manufacturer of innovative technology p odu ts fo iHome energy, entertainment a d se u ity syste s.

23


Evolution of CV brand messaging over time

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i Home Energy • Entertainment • Security Systems

TAGLINE/DESCRIPTOR • Clarity of offerings

• Clarity of brand messaging

• Trade & consumer relevant

2016 2017 2018 2019 2020

Smart Products for Intelligent Homes™

TAGLINE • Maintains i Home focus

• Leverages brand equity

• Trade & consumer relevant

Short-term Long-term

Summary Dealer targets

1. Owner/partner – key decision maker (66%)

2. System designer – next important (11%)

Information sources

1. CE Pro is top information source (69%)

2. Residential Systems is next (43%)

3. Sound & Video Contractor (33%)

Objective

Tell the right stories to right audiences

frequently, consistently and across all mediums

25

Brand awareness is low

Brand imagery is dated

Few negative associations exist

Positioning and key messaging need

attention

– Consider leveraging top market drivers –

energy, entertainment, security

– Focus on top five selection criteria

– Promote product attributes and benefits

– Price is not a meaningful differentiator

Opportunity for messaging and

positioning clarity

26

NEXT STEPS

Messaging development • How many ways can CV demonstrate/articulate the top five criteria

• Testimonials

• Pseudomonials (testimonials told in 3rd person)

Develop marketing communication plan • Direct marketing

• Advertising – vertical markets

• Media investment

• Sales presentations

• Website

• Collateral materials

• Budget

Develop creative • Execute, measure, refine

27

Q & A