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Technology Stocks : Zenith - One and Only

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To: Terry Berg who wrote (3394)11/12/1997 11:43:00 PM
From: Robert Utne  Read Replies (1) of 6570
 
Terry, Congratulations on getting HFC.

The dilemma with selling on the Net is that the present dealership network could evaporate over night if not handled correctly. Bypassing the present distribution network could drive present Zenith dealers to the competitors as IBM found out last year.

Several months ago, I suggested to Zenith to develop three separate product lines. The first would be called Zenith-Inteq and would include the highest quality, best styled and most expensive Zenith products and sold only through high-service dealers. The second would be called Zenith Classic and would include the lower and medium priced products and sold through the mass retailers. The third would be called Zenith Direct offered solely on the Net and would include Build On Demand (BOD) products such as customized audio and video configuarations with a wide choice of materials, shapes, colors and sizes (in the Dell Computer mode of operations).

I don't know if Zenith is taking my suggestions seriously. All I've heard is that in 1998 they are going with a Zenith branded "Life Style" line of 27" and below and a Zenith/Inteq branded "Home Entertainment" line of higher than 27". I think it's a dumb move-eliminating smaller, high quality products from the Inteq line and budget-priced, large projection sets from the Zenith line.

I've also heard from the grapevine that Zenith's 1998 offerings are being called "Warriors" and will feature audio ports and the 1999 line are being called "Predators". Hope these are just code words. Can't think of worse labels for digital TVs.

Hoping to learn a lot more about Zenith's future models and marketing strategies at the International CES in January.
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