Page 80 - Marketing Management

DEVELOPING MARKETING STRATEGIES AND PLANS | CHAPTER 2 57

Marketing Excellence You Ready?” In the ads, children and adults from around
the world delivered facts about the power of the Internet
and challenged viewers to ponder, “Are You Ready?”
>>Cisco Surviving the Internet bust, the company reorganized
in 2001 into 11 new technology groups and a marketing
organization, which planned to communicate the com-
pany’s product line and competitive advantages better than
it had in the past. In 2003, Cisco introduced a new market-
ing message, “This Is the Power of the Network. Now.” The
international campaign targeted corporate executives and
highlighted Cisco’s critical role in a complicated, technolog-
ical system by using a soft-sell approach. Television
commercials explained how Cisco’s systems change
people’s lives around the world and an eight-page print ad
spread didn’t mention Cisco’s name until the third page.
Marilyn Mersereau, Cisco’s vice president of corporate
marketing, explained, “Clever advertising involves the
reader in something that’s thought-provoking and provoca-
tive and doesn’t slam the brand name into you from the
Cisco Systems is the first page.”
worldwide leading supplier of networking equipment The year 2003 brought new opportunities as Cisco
for the Internet. The company sells hardware (routers and entered the consumer segment with the acquisition of
switches), software, and services that make most of the Linksys, a home and small-office network gear maker. By
Internet work. Cisco was founded in 1984 by a husband 2004, Cisco offered several home entertainment solu-
and wife team who worked in the computer operations tions, including wireless capabilities for music, printing,
department at Stanford University. They named the com- video, and more. Since previous marketing strategies had
pany cisco—with a lowercase c, short for San Francisco, targeted corporate and IT decision makers, the company
and developed a logo that resembled the Golden Gate launched a rebranding campaign in 2006, to increase
Bridge, which they frequently traveled. awareness among consumers and help increase the
Cisco went public in 1990 and the two founders left overall value of Cisco’s brand. “The Human Network”
the company shortly thereafter, due to conflicting inter- campaign tried to “humanize” the technology giant by
ests with the new president and CEO. Over the next repositioning it as more than just a supplier of switches
decade, the company grew exponentially, led by new- and routers and communicating its critical role in connect-
product launches such as patented routers, switches, ing people through technology. The initial results were
platforms, and modems—which significantly contributed positive. Cisco’s revenues increased 41 percent from
to the backbone of the Internet. Cisco opened its first 2006 to 2008, led by sales increases in both home and
international offices in London and France in 1991 and business use. By the end of 2008, Cisco’s revenue
has opened a number of new international offices since topped $39.5 billion and BusinessWeek ranked it the 18th
then. During the 1990s, Cisco acquired and success- biggest global brand.
fully integrated 49 companies into its core business. As With its entrance into the consumer market, Cisco
a result, the company’s market capitalization grew has had to develop unique ways to connect with con-
faster than for any company in history—from $1 billion sumers. One recent development is Cisco Connected
to $300 billion between 1991 and 1999. In March 2000, Sports, a platform that turns sports stadiums into digitally
Cisco became the most valuable company in the world, connected interactive venues. The company already has
with market capitalization peaking at $582 billion or $82 transformed the Dallas Cowboys, New York Yankees,
per share. Kansas City Royals, Toronto Blue Jays, and Miami
By the end of the 20th century, although the company Dolphins stadiums into “the ultimate fan experience” and
was extremely successful, brand awareness was low— plans to add more teams to its portfolio. Fans can virtually
Cisco was known to many for its stock price rather than meet the players through Telepresence, a videoconfer-
for what it actually did. Cisco developed partnerships with encing system. Digital displays throughout the stadium
Sony, Matsushita, and US West to co-brand its modems allow fans to pull up scores from other games, order food,
with the Cisco logo in hopes of building its name recogni- and view local traffic. In addition, HD flat-screen televisions
tion and brand value. In addition, the company launched throughout the stadium ensure that fans never miss a
its first television spots as part of a campaign entitled “Are play—even in the restroom.