ARRL Letter Alert (May 31. 1996) re: Kenwood's alternate distribution

The ARRL Letter
Electronic Update
May 31, 1996

KENWOOD ANNOUNCES NEW DISTRIBUTION CHANNELS

Longing for a new Kenwood TS-870S or maybe a TM-733? Soon, you might find them in your local CB shop or truck stop. Citing concerns about the future of Amateur Radio and a changing business climate, Kenwood Communications Corp announced to its dealers on May 21 it's taking "some bold steps" to turn things around. Kenwood has appointed three new companies (as yet unnamed) to wholesale Kenwood Amateur Radio products "to CB radio stores, truck stops, 2-way radio stores, and electronic re-sellers," according to a letter to its dealer network.

Kenwood says it believes its new distribution strategy will benefit the hobby by increasing the visibility of its Amateur Radio line through small dealers to help draw newcomers into the hobby.

The company also says it plans to offer a new pamphlet or "primer" about Amateur Radio to introduce people to the hobby. The primer will be free. In addition, Kenwood will start selling Amateur Radio study guides and has urged its authorized dealer network to help distribute the new materials. In conjunction with its Kenwood Report--distributed to ham radio clubs--the company also plans to offer "incentives for local clubs to gain new members using the Kenwood Amateur Radio primer and licensing materials." In a May 28 letter to authorized dealers, Kenwood described the moves as "our first stage of activities to promote Amateur Radio."

Kenwood says the extra step in the new distribution chain will guarantee that existing authorized dealers always have a price advantage over the smaller resellers. The company also denied rumors that it plans to exit the Amateur Radio market.

Back to the Kenwood August 13, 1996, letter
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