More on multi-brand strategy for TCL.doc

 PAGE \* MERGEFORMAT 5 More on multi-brand strategy for TCL Now, some multi-brand strategy for TCL expressed concern that the merger with the Thomson’s TV business, the only color TV there are at least TCL, THOMSON, RCA three major brands, so many brands, relationships, how to deal with? Will interfere with each other? This involves the TCL brand strategy. Basically, we can say with certainty that this worry is unnecessary, why? Because it did not form between the three brands competing, non-competitive interference just do not care. In fact, the TCL-THOMSON Electronics Corporation (hereinafter referred to as TTE) strategy, the three brands were used in different regions, that is implemented TTE is ‘sub-regional brand strategy’ - the use of RCA brand in the U.S. (in fact, also This sub-brand, GE), using the THOMSON brand in Europe (in fact, Schneider, and Germany in Europe, there are two sub-brand Li Feng-kan), in China and surrounding regions using the TCL brand (in fact, Leroy of this sub-brand) , so that the three brands belonging to three different market areas, do not form a competitive relationship with each other. Markets in different regions use different brands, is to rationalize the allocation of resources, the performance of the brand. Since the RCA brand in the United States has a tradition of dominant position, why should give up in use? THOMSON brand in Europe, the same way. Some people say that TTE Corporation in the U.S. and European markets outside of the use of TCL brand, is incomplete TCL international performance, this is a misunderstanding of the brand resources. TCL holds 67% in the TTE stake in the use of any one of the TCL brand is are the same, as long as the brand can have a real effect of the regional market. Now, on the TTE or the TCL, there are likely to form the brand inverted internal friction is not between the three brands, but within different regions of the main brands and sub-brand relationship. In the U.S. market, how t