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Technology Stocks : Dell Technologies Inc.

DELL 138.94

0.0%

Dec 5 9:30 AM EST

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To: jhg_in_kc who wrote (81350)	11/19/1998 4:14:00 PM
From: Chuzzlewit	Read Replies (3) of 176387

jhg, basically you establish two separate brand identities. In the hosiery business you can have a brand like L'Eggs at the high end with fancy packaging, and a brand like No Nonsense at the low end. But the interesting point is that there is typically no difference between the products -- they are identical except for the packaging, pricing, and branding. This allows a business to fight for shelf space (irrelevant here), and to aim at separate consumer markets without cross-contamination of identities. This latter attribute is key because Compaq has several distinct consumers: the end user who knows what he wants to purchase, the user who either needs refinements provided by a VAR, and a consumer that prefers to purchase through retail outlets. This kind of market segmentation has long been recognized as a useful tool in food and other retail consumer goods. TTFN, CTC

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