Any info about Iomega (IOM)? Message Board

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

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To: sheila rothstein who wrote (51156)	3/25/1998 11:54:00 AM
From: Bill Lin	Read Replies (1) of 58324

SR, I agree that KE's exit is long term good for the company. He was locked in a marketing differentiation and premium pricing scheme that clearly could not work in the current disk media market. The price of media was plummetting too fast and he kept holding out his outdated marketing reports (from last summer). Well, the market and consumers got out ahead of him, so his advertising campaign failed. However, it failed NOT because it was inappropriate, but because he did not lower zip prices across the board. We all know OEM drives are cheaper than retail drives, so lots of OEM drives are cannabilizing retail sale drives. Thus we will have lower margins this quarter. The ouster of KE signals the end of the premium pricing strategy. The price of zip and jaz and jaz2 will not drop to match the /gig pricing of the HDD industry. For KE to quit now, signals that there was great displeasure within the board about his advertising campaign (risky), and he knew that the campaign would not produce the desired results. IMO this is positive for IOM. :) BL

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