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3Com`s Claflin Outlines Strategies to Build Brand At National Advertisers Annual Conference; 3Com President Says Simplifying the Lives of Customers Is Key

LAGUNA NIGUEL, Calif.--(BUSINESS WIRE)--Oct. 16, 2000--Outlining the strategies to transform a technology-driven company to a brand-driven one, Bruce Claflin, president and COO of 3Com Corporation (Nasdaq:COMS), today spoke at the Association of National Advertisers 2000 Annual Conference. Claflin addressed advertising industry leaders to detail 3Com`s decision to rebrand the company and illustrate why a Fortune 300 company such as 3Com makes the fundamental change in how it communicates a new message.

"When you are hoping to create something new and important, you must have the courage to fully commit yourself and the entire business to the transformation," remarked Claflin. "Only in that way will your brand promise be fulfilled, and only then will you achieve your business goals, including delivering greater shareholder value."

Describing how 3Com has changed in the past eight months, Claflin highlighted the decision to become a brand-centric company that markets great technology. As a result of this change, 3Com has a more focused set of customers and a much better appreciation of their needs and how 3Com can fulfill them. "But best of all," commented Claflin, "we are learning how to live the brand that we have become."

"When you make a transformation turn the way 3Com has, you have to be willing to go all the way," explained Claflin. "A half-hearted re-commitment is no commitment at all. If you are less than fully committed, your customers know it, your strategic partners know it and most of all, your own people know it."

Claflin described to his audience the major lessons 3Com has learned from its masterbranding strategies:

-- Embrace the need to be brand driven as a core strategy;

-- Commit your entire company to the brand building process.
Commit them to the cause and organically grow that commitment
into allegiances from strategic partners, providers, investors
and other members of your brand community;

-- Recognize that a commitment to brand building starts at the
top; and

-- Go all the way and increase your odds of success. Commit to
commitment.

In addition to sharing these lessons, Claflin highlighted 3Com`s new message of Radical Simplicity and how the company communicates 3Com`s new master brand.

"Our research confirmed that our customers believe that 3Com excels at simplifying the use of technology and, in the process, simplifying their lives," said Claflin. "3Com has an aptitude for making it easier for people to make the most of otherwise highly complex networking systems. In fact, simplifying networks is an enormous technical challenge...a challenge our engineering community has embraced."

As a result of this fundamental change, Claflin said, 3Com has changed the way it thinks about and designs products with the simplicity of the consumer in mind. He said it didn`t take 3Com long to figure out that the idea of simplifying for consumers would be even more crucial in those markets where users often do not have direct access to technical staff on site.

"As a happy coincidence, there is a major backlash underway against unnecessarily complex technology in all sectors of our lives," explained Claflin. "In 3Com`s efforts to rebrand our company, we also ended up riding a wave that is sweeping across the nation."

3Com, according to Claflin, has used the fundamental change of radical simplicity to develop its new advertising campaign and selling line: Simple sets you free. The creative strategy is centered on the concept that when you use 3Com`s radically simple technology, it frees you to accomplish more. Three commercials, which Claflin unveiled to top advertising and marketing executives, convey the new strategy as applied to wireless networking in an office setting, in home networking and with local area network telephony. 3Com is also running extensive print advertising in both business and trade publications.

Another aspect of communicating its new master brand is through 3Com`s new logo and graphic system. The new logo employs three rings; two of which are linked and the third is floating free. "The new logo has created a lot of buzz and curiosity...and that`s just what we had in mind," Claflin said. "It is a symbol that people can readily interact with, not just look at. That is crucial since 3Com`s strengths reside primarily in its ability to help people."

The ANA conference, held at the Ritz-Carlton Laguna Niguel in Dana Point, featured high-profile brand leaders and in-depth presentations on many varied aspects of e-marketing, branding on the internet as well as other traditional marketing/advertising issues. The association acts as a catalyst to bring together industry leaders to confront pressing issues and explore emerging ideas critical to the advertising industry.
 
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