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Non-Tech : Any info about Iomega (IOM)?
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To: Joe who wrote (46259)1/29/1998 7:59:00 PM
From: Herb Fuller   of 58324
 
Joe ,

If a company , like IOM , has the capacity to double their sales instead of just increasing them by some 35% for y98 they should use advertising $ to do it .

IOM has at this point in time a Zip production capacity of some 20 million Zip drives per year . By increasing their sales by increasing
their advertising is prudent for Iomega at this point in time .

Joe , the potential market for the Zip drive is the complete inclusion into OEM's boxes . This complete inclusion would be some 100 million drives . No one expects complete inclusion but it is not hard to invision that a 50 % or more inclusion is very possible .

Now , after you look at the 100 million new boxes that will be produced this year you must look at the 100s of millions of boxes that was produced in past years that has the potential to be upgraded to include a high capacity floppy drive.

Do Not Underestimate the Power of advertising .

Iomega has done a lot of spot test advertising this past year to measure it's effectiveness in small markets areas. They are now expanding their market nation wide . To some it looks like a sign of weakness but for those that know the complete picture , Iomega's expanding their advertising nation wide is a sign of strength .

My 2 cents worth ,

Herb
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