BenQ attempts to clean up its image

Since it was incorporated in 2001, BenQ has had a very eventful journey in the Indian subcontinent. And while the brand has gained considerable mileage in other Asian markets, in India it still uses the Acer brand name. On the distribution front too, the company has not been too successful with its regional distribution model. However, the new management at BenQ is not daunted by the thought of realigning its image and is ready to take on the challenge, says Chris Ann Fichardo

Rick Lei says BenQ used the last 18 months to reshuffle its product range and project itself as a digital lifestyle company and not just a peripherals company

The $3 billion BenQ is on a brand-building spree. This time the company has enhanced its product range to include mobile phones, digital cameras, LCD TVs and MP3 players to its existing range of IT peripheral products. Rick Lei, vice president and general manager for sales at BenQ, says that the new products are aimed at enhancing the company’s brand image and further entrenching itself as a digital lifestyle company. “The last 18 months were used to reshuffle our product range and now it’s time to bring them into the market. We want to project ourselves as a digital lifestyle company. Originally, we were a computer peripherals company and now we want to diversify into digital lifestyle products and devices. In the next three months we will have ten different models of MP3 players—right now we plan to introduce our MP3 devices by launching two models. So by the end of the year we will have 20 different digital lifestyle products on top of our IT peripherals products,” elaborates Lei.

Switching channels
The new product range has made BenQ re-examine its channel strategy as well. Under the earlier management, BenQ followed a regional distribution model. Now however, with the new head honcho Ashish Bakshi as its country head, the company is planning to adopt a product-specific distribution method. Explains Bakshi, “People have been asking me if I prefer regional or national distribution methods. My perception is that, depending on the product, you have to identify the right partner—you cannot have a common channel strategy for CD media and storage products to projectors—the partner should be willing to share his resources and able to sustain a long-term relationship with the vendor.”

Bakshi states that as BenQ caters to wide range of segments with a product portfolio as diversified as keyboards to MP3 players, it is crucial to appoint partners who understand the technology. This move has attracted quite a bit of attention as the company was one of the first to opt for the regional distributor model, under its former name as Acer Communications and Multimedia.

When asked whether BenQ’s choice of distribution is proof that the regional distribution model might not be a viable option in India, Bakshi tactfully answered that for some products it might and for some it might not. “It might work for products that require reach and penetration, while it might not work for those that require coverage, different marketing product as well a definite channel strategy. But I will stress that it depends on the products.”

Since BenQ caters to a wide range of segments with a product portfolio as diversified as keyboards to MP3 players, it is crucial to appoint partners who understand the technology, says Ashish Bakshi

Getting mobile
After tasting success as an OEM partner in the mobile phone market, the company decided to launch its own brand of phones in Greater China and Taiwan. Now, it wants to bring these products in the Indian market as well. Elaborating on the marketing strategy for its mobile phones, Lei says, “The strategy for mobile phones is very diversified. Some of the top-end devices have a tiny camera and keyboard; these could be marketed through our IT channel partners. The low-end phones, which are just for voice, could be through the retail outlets. So there might be top-end, which go to IT resellers, and the low-end, which will be sold through the consumer channel.”

New focus areas
Besides, the expansions on the product-front, BenQ will also be looking at increasing its geographical reach. The company, which is headquartered in India, has till date had a very Asia focus, now however it will be tapping the European and Middle East markets too. “Last year we did really well in Greater China and Taiwan and this year did well in Singapore and South Asia, and this year our focus is on the Middle East, India and Europe. We are being little more conservative in North America right now and aggressive in Asia and Europe.”

Though its international strategy might be in place, on the domestic front BenQ still needs to boost its image. Channel partners say that despite being a two-year-old brand, the company still rides piggy-back on the Acer name. Realising the need to fill this lacuna and build a stronger channel presence, Lei says the company will be investing around Rs 20 lakh in the second half of this financial year towards this end.

The new management of BenQ has a lot on its hand, overcoming a tarnished past is no easy task. But Bakshi and his team are ready to face the channel and in the process build a coming the has a deeper penetration and wider product range. “The challenge is to make a new start. We have enhanced our products, backed our partners with good deals and products and so I am confident that things will improve, maybe not in a fortnight, it will take time but the growth will come,” says a confident Bakshi.

Since BenQ caters to a wide range of segments with a product portfolio as diversified as keyboards to MP3 players, it is crucial to appoint partners who understand the technology, says Ashish Bakshi

Realising the need build a stronger channel presence, BenQ will be investing around Rs 20 lakh in the second half of this financial year, says Rick Lei