Kenwood 2006 Annual Report Download - page 17

products as business opportunities, and implement product
strategies that utilize Kenwood’s own high quality sound
technologies. More specifically, the Company increases its product
lineups, mainly consisting of high value-added models,
corresponding to the rapidly changing audio market in recent years,
and promotes the structural reforms of the Home Electronics
business. These products include high quality sound digital portable
audio players and high-class Hi-Fi audio systems that have been
produced by the “Sound Meister,” Kenwood’s sound officer, and
the sales of the current models of these products have been
strong.
Strengthening cost competitiveness through
design, procurement and “Production
Innovation”
Reducing processing costs at plants in France and
Shanghai, and strengthening global procurement
functions.
Since February 2003, the Company has started to globally
implement “Production Innovation” that was a significant success
with regard to the reforms on profitability and cash flows, and
realized a significant reduction in processing costs at plants in France
(Kenwood Electronics Bretagne S.A.) and Shanghai, as well as in
Japanese plants in Yamagata and Nagano.
The Company also reinforced IPO (International Procurement
Office) functions of the Shanghai and Singapore Plants, and newly
established an IPO in Hong Kong, in order to strengthen global
procurement functions.
In addition, the entire Company conducts new operational
innovation activities for designs related to planning, systems and
products and for production technologies by focusing more on plant
operations, and strengthens cost competitiveness in order to
respond to lower prices resulting from increasingly fierce market
competition.
Business and Capital Investments
The Company has considered making several business investments
and corporate mergers in the past, and will also be actively making
various effective investments to increase its corporate value in the
future.
As for capital investments, in the fiscal year ended March 2006
the Company made investments in the technology center
development at the Nagano Plant and the construction of a test
course with various road surfaces to be used for development
purposes. The Company will purchase neighboring land
(approximately 12,800 m2), establish experiment, research and
customer service facilities, and improve environments for employees’
activities in the fiscal year ending March 2007.
The Company will also take actions for new social environments
including strengthened security measures.
Greet the Company’s 60th Anniversary
Foundation
Strengthening brand presence and business
promotions through a sales campaign
The Kenwood Group will celebrate its 60th anniversary in December
2006 and the Company regards the period until December 21, the
anniversary date, as the 60th anniversary campaign period. A
campaign consisting of various business promotions focuses on
expanding the Company’s brand strategy to various parts of the
globe.
High-quality sound, pure audio system "Kseries"
Front Surround Home Theater Systems
High-quality sound,
portable HDD audio
player "Media Keg"
High value-added models ''Sound Meister Edition''
in Home Electronics Business
The 60th Anniversary Mark
Kenwood Corporation 17 Annual Report 2006