Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Brendan2012 who wrote (45222)	1/23/1998 11:22:00 PM
From: Neil_L	Read Replies (3) \| Respond to of 58324

RE: Advertising By saying they are going to spend 100mm on stimulating demand definitely helped create an all or nothing perception. Reports are already comparing the entire years spending to their current cash on hand. Even though KE tempered it by saying that they would monitor demand and decrease spending if it wasn't successful enough, the initial damage was done. Wouldn't it have been ok to say that they were stepping up their consumer awareness campaign, spending ~$15mm this q on advertising with the campaign continuing into the year if successful? He could have updated us in 3 months on the progress and future spending as the campaign progressed. Just a thought. Neil.

To: Brendan2012 who wrote (45222)	1/23/1998 11:30:00 PM
From: Michael M	Read Replies (2) \| Respond to of 58324

I'm all in favor of turning up the marketing heat...if they do it well, I think we'll be well rewarded. Disagree about doing it earlier for the simple reason IOM couldn't seem to get enough stuff out the door...why spend money to advertise something you can't supply?

To: Brendan2012 who wrote (45222)	1/24/1998 9:10:00 AM
From: Vaughn	Read Replies (1) \| Respond to of 58324

>>Agreed. In both cases it is a bold, bet-your-company, move.<< >I happen to like bold moves!< Brendan: I do to, and I think there is less downside here than a lot of other folks. At first I saw the problem as even worse than "bet your company." My initial take was that this was a survival issue because demand was drying up for ZIP. I think that assessment was also wrong. I suspect the real issue is that we are simply between the first and second wave of demand and KE's plan is to accelerate the second wave. The good news is that, IMO, the second wave will come regardless and IOM is and will be in the best position to catch it. The upside of the campaign is that if it works: more demand sooner, price reductions delayed and IOM recognition increased. There is a lot of leverage potential here as well as it relates to inclusion rates. Regarding the campaign itself, I hope they look at more than just advertising. Incentive programs that help the consumer get "their stuff on their ZIP" would be helpful. For example: Buy a ZIP drive, send us 100 of your favorite photos, and we'll send you a ZIP disk with the photos and a self installing screen saver to display them. Or: Do a joint thing with someone like Kinkos. There are a lot of things that could be done. The key here is to motivate that large percentage of the target market who will be more inclined to buy if installing, loading, and using their "stuff" storage is easy.