Display the power of a clearly defined core idea

AG Neovo

Responding to new competitive pressures
Within just seven years of its foundation in 1999, AG Neovo had risen to become one of the top ten LCD monitor producers in Europe. Despite brilliant initial performance, however, the company began to suffer from competitive pressures as computer manufacturers such as Acer and Samsung increased their presence in the quality monitor market.

With the future appearing uncertain, AG Neovo turned to DDG in 2007 to help discover and define a more coherent, long-term brand strategy that would both grow the brand and withstand competitive challenges.

The search for a powerful Brand Catalyst™
After conducting a global brand audit, DDG found that product design and distinctiveness were the key elements that AG Neovo was most proud of. With no consensus about AG Neovo’s core values, however, this was not sufficient to develop a solid foundation for a long-term brand strategy.

DDG therefore went outside the organization and conducted a series of extensive field investigations throughout AG Neovo’s European markets, identifying the key strengths that the brand could leverage to build a strong position.

Finding that AG Neovo was the top choice for museums, airport flight schedules, and surveillance, DDG realized that the brand’s unique strength lay in “environment specific” displays. With further refinement, this soon became the brand catalyst and was used to develop a brand position that clearly differentiated AG Neovo from its competitors.

Becoming a professional niche brand
With AG Neovo now promoting the key competitive advantages of durability and convenience, and specializing in meeting the needs of public spaces, the company began to reposition itself. Two main brand associations – “the choice of professionals” and “environment-specific displays” – helped AG Neovo adjust the direction of its product development and put a strategic focus on professional niche markets.

The results were striking: while the rest of the industry was heavily affected by the global recession, sales of high-end AG Neovo displays continued to grow between 2007 and 2009. Profit margins also increased from 14 to 26% and its stock price rose by 150% between 2008 and 2010, proving that, with its core brand values and position clarified, AG Neovo was both able to withstand competitive pressures and beat market forces. The new brand strategy had succeeded in taking the company forward to a new level of development.

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AG Neovo’s gross profit margin climbed from 14% to over 30% between 2007 and 2009.

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