Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Sam who wrote (9894)	10/23/1996 10:21:00 PM
From: Fred Fahmy	of 58324

Sam, <<What's everyone's take on this new marketing move by IO?>> What makes you think IO has anything to do with this offer? <<I guess rebates weren't good enough to get the Zips moving. Now there (ZIP) going for free...>> If you would have listened to IO's conference call, you would know that the rebates DID indeed achieve their objective. The rebates as stated countless times (publicly) by KE are a stepping stone between $199 and $99. IO did studies when developing ZIP using focus groups. These consumers told IO exactly what they wanted in a removable storage product. They also told IO how much they were willing to pay for such a device. Using the distribution of price points they collected, IO should have a very good idea of how much incremental volume is generated by lowering prices various amounts. Getting back to the bundle. I see this as a positive for a few reasons. 1) Immediate sales of more ZIP drives which use more ZIP disks. 2) Free advertising for IO (actually IO may have helped subsidize the add; known as coop advertising). 3) Best Buy realizes how powereful the ZIP brand name/standard has become and is taking advantage of this. Others will feel pressured to follow. FF

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