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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Artslaw who wrote (8259)	11/30/1999 1:16:00 PM
From: Don Hess	Respond to of 60323

Steve, it's a start. I've been as critical as anyone of SanDisk's lacklustre PR efforts, but -- at least here we are forging into a direct sales effort, retailers be damned. And besides, it will make it easier for all on the thread to buy me Christmas presents. - Don

To: Artslaw who wrote (8259)	11/30/1999 3:48:00 PM
From: Art Bechhoefer	Respond to of 60323

Well, it's not what I'd call a glamorous announcement, but considering that they are probably selling everything they make, do they need to spend much effort on retail? On the other hand, if they really want to expand retail sales in order to take advantage of the higher markup, then they should be more aggressive, particularly on sales made through their OWN store. I'm not sure what the strategy is here. Do they want to flood the market with SNDK flash memory and make the name SanDisk a well recognized brand, or do they simply want to stay in the background and be mainly an OEM manufacturer? Looking at other examples of establishing a brand, it appears that to do this in an effective way would require a marketing effort that is HUGE by comparison with the existing situation, and one which would seriously reduce short term profits.

To: Artslaw who wrote (8259)	12/1/1999 9:51:00 AM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

Steve, Art, Binx, Don... I caught Steve yawning during the Amazon press release. I find myself quite enthusiastic about the idea of SanDisk being added to their inventory... Amazon.com is one of the most popular e-commerce web sites because it is on the cutting-edge of e-commerce, said Rick Dyer, vice president of retail sales at SanDisk. We believe that Amazon.com will successfully link SanDisk to the MP3 market as well as increase awareness of SanDisk's wide range of products for the digital imaging and handheld PC markets due to their customer profile of early adopters. I see nothing here that should invoke boredom. Arturo, you stated... I'm not sure what the strategy is here. Do they want to flood the market with SNDK flash memory and make the name SanDisk a well recognized brand, or do they simply want to stay in the background and be mainly an OEM manufacturer? I think the landscape is changing with e-commerce. The relationships with OEM customers and private label products is complex. Ultimately it would be ideal to have a steady OEM base, a growing retail presence and on-line sales either directly or indirectly to savvy consumers who are looking to save a buck. If I were an OEM customer stuck with a couple thousand outdated OEM private label cards or a retailer stuck with a shelf full of product after the Christmas rush I wouldn't be too happy. In some ways, however, the markets are different. Retail is for the average Joe who doesn't want to dabble with internet commerce or is content with picking something off the shelf and paying a bit more for it. OEM sales tend to be lower capacity items (until recently) and I have not found OEM product to be terribly more expensive if you shop around. (For example, I bought two 64MB Kodak Picture Cards for under $130.00 each a few weeks ago.) I don't think that SanDisk will invest in a dedicated on-line store just yet because of reasons I have mentioned. Primarily it puts loyal retail customers and OEM private labels at a terrible disadvantage. Currently I am elated when I walk into my local BestBuy or my neighborhood Target store and see SanDisk product prominently displayed. I guess this is a form of passive advertising. Finally, before I end my rant, I wanted to say that the PR department creates the news that highlights recent developments in the company. In doing so they are limited by the quantity and quality of the "news" that develops. Advertising and marketing are asked to create gold out of copper. They have budgets. They have creative minds. It is the advertising and marketing departments who have not been carrying their weight, perhaps by design. In fact, I have sent several ideas to them personally. My impression is that they are on a limited budget for the time being. Look at the package inserts of any SanDisk product. Many leaflets are photocopied onto standard business paper. Look at the annual report. Not a single glossy photo. Someone in the SanDisk administration is keeping a close eye on the family checkbook and is maintaining a tight budget... ...at least for the time being. Ausdauer