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Technology Stocks : Seagate Technology
STX 282.86-0.9%Dec 9 4:00 PM EST
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To: Frodo Baxter who wrote (4839)4/11/1998 12:25:00 AM
From: Stitch  Read Replies (1) of 7841
 
Lawrence, Jacky:

<<>Besides, I don't think DD makers need branding ads at all. Most of the products go directly to OEM's. >>

Just for the record I think the Seagate ads are silly and suspect they will fail to do what is intended (create brand recognition).

But I do think the transition to the BTO model is causing the DD guys to correctly consider a brand recognition campaign. Either of you ever order from Dell? As long as you request from their approved list they don't care which drive you specify. Furthermore the advent of very low cost systems to reach into the homes of the heretofore computer illiterate, who also order from Dell and others racing towards the direct order model, may create further need for brand recognition. A final point: the drives don't always go direct to the OEMs anymore. The Channel assemblers and value added guys buy, based on universal contracts, from the approved maker, and take delivery. Chuck Haggerty recently commented on the complexity of relationships that is being brought on by the BTO/JIT operating model. The VARs , distributors, and 3rd party resellers are so many and varied that a mass market brand recognition campaign may well be called for. Things are changing folks.

Best,
Stitch
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