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"This time, like all times, is a very good one, if we but know what to do with it" (Ralph Waldo Emerson).
In April 2001, managers in the IBM Personal Computing Division responsible for marketing strategy, branding and market intelligence were pondering the implications of a recently initiated reorganization of the firm's PC business. Since the late 1990s, efforts had been underway at IBM to simplify a complex set of product lines for customers and drive efficiency in marketing and business operations. This reorganization was the next big step.
Three organizations were now one: the IBM ThinkPad® notebook computer group; the IBM NetVista(TM) desktop computer team; and the monitors and options area. From a business strategy and brand strategy standpoint this consolidation of talent and resources posed both opportunities and challenges.
The question at hand was: should the new consolidated organization go to market with one identity or continue with multiple identities and positioning strategies in the marketplace? The branding and marketing strategy team saw the potential for a new branding approach that would strengthen the positioning of the IBM PC portfolio in the marketplace and signal strategic differentiation. Yet the current brands had varying levels of strength, and stood for different things in buyers' minds.
ThinkPad was by far the strongest brand. Announced in 1992, the IBM ThinkPad stood for quality and innovation. Its classic black design was recognized throughout the industry and had won hundreds of design awards. Research showed that customers believed that ThinkPad users tended to be serious business leaders who had achieved success in their field. These factors translated into high awareness, consideration and purchase for the ThinkPad line of notebook computers.
The IBM NetVista desktop PC line was less well known. Announced only the prior year, it had not yet had the ability to build brand equity and become known in the marketplace. Furthermore, the prior strategy of the desktop team was very different than that of ThinkPad, focusing less on hardware differentiation and more on reducing the total cost of ownership for the customer. Monitors and options were another story - though they were known by the IBM brand; they essentially had no sub-branding like ThinkPad and NetVista.
Beyond the branding issues, other factors needed to be considered....