Wednesday, October 27, 2004
Channel Strategy: Segway Does 180 Degree Turn and Signs up Dealer Channel
After three years, Segway has changed its channel strategy and licensed 60 dealers. Why? Because you cannot sell a product that has to be experienced over the internet. Regardless of how cool it is.
I have nothing against Amazon (except slow servers), but it was not sufficient as a channel for Segway. Channels are good for supply, access or demand. Want to reduce the cost of distribution? Then get into an existing supply chain. Want to reduce the sales cycle? Then get in front of decision makers? Want to launch a product? Then get sales people who can help customers experience the product.
Amazon is great for supply and consumer access but was a dumb choice because the Segway HT is a product that needed experience (also known as product demonstration) and access to buyers in enterprise businesses. Too bad they did not have a channel in place to take advantage of all the PR hype they created 3 years ago.
Segway is now bringing its next product, a four-wheeled HT ATV code named Centaur, to market. Chances they will build the right channel are low. Popular Science quotes Segway Chief Technology Office Doug Field "Real breakthroughs never occur from market pull or business briefings." When it comes to channel development, attitudes like this are the reason 99% of product launches fail.
Centaur sound fun and cool. The right channel and promotion could take Segway and Centuar off the futuristic pages of Popular Science and into users homes and businesses.
Scott Karren, The Channel Pro
0 comments
After three years, Segway has changed its channel strategy and licensed 60 dealers. Why? Because you cannot sell a product that has to be experienced over the internet. Regardless of how cool it is.
I have nothing against Amazon (except slow servers), but it was not sufficient as a channel for Segway. Channels are good for supply, access or demand. Want to reduce the cost of distribution? Then get into an existing supply chain. Want to reduce the sales cycle? Then get in front of decision makers? Want to launch a product? Then get sales people who can help customers experience the product.
Amazon is great for supply and consumer access but was a dumb choice because the Segway HT is a product that needed experience (also known as product demonstration) and access to buyers in enterprise businesses. Too bad they did not have a channel in place to take advantage of all the PR hype they created 3 years ago.
Segway is now bringing its next product, a four-wheeled HT ATV code named Centaur, to market. Chances they will build the right channel are low. Popular Science quotes Segway Chief Technology Office Doug Field "Real breakthroughs never occur from market pull or business briefings." When it comes to channel development, attitudes like this are the reason 99% of product launches fail.
Centaur sound fun and cool. The right channel and promotion could take Segway and Centuar off the futuristic pages of Popular Science and into users homes and businesses.
Scott Karren, The Channel Pro
0 comments
Comments:
Post a Comment
