The Client:
SuSE Linux,
the number-two commercial Linux distributor
and provider of open source solutions.
The Situation:
SuSE Linux was
founded in Germany and had a very
Eurocentric culture. This helped them gain
70% market share in EMEA, but they struggled
in North America against market leader Red
Hat.
Silicon Strategies Role: North
American marketing strategist for the SuSE Linux product line.
Initial Observations: Being a
successful European company, SuSE's U.S.
office did not receive the guidance
they needed from Germany. The home office generally let the U.S. division operate independently.
However, SuSE's U.S. office did not have
anyone on staff with a classical technology
marketing background. Their North American
sales had been nearly flat during Linux's
early hyper-growth phase. Through a series of
executive interviews Silicon Strategies
Marketing concluded:
-
SuSE Linux did not have a consistent brand
in North America
-
The market had assigned SuSE
Linux a
brand, that being of a quirky technology
company with interesting products, but without
mind-share or traction.
-
Corporate-wide, SuSE
Linux did not have
any core marketing messages and their
messages in North America were muddled
and tended to ape Red Hat's.
-
SuSE Linux
did not effectively position their
superior technology.
Going Back to Basics: SuSE
Linux's U.S. office
was eager to take the fight to Red Hat
and other competitors. Together, SuSE Linux and
Silicon Strategies Marketing:
From these seeds, many other activities
were launched by SuSE and Silicon Strategies
Marketing:
-
Rapidly collected customer
testimonials that reinforced the new brand and strong
SuSE Linux technology position
-
Extended core messages through strategic partners including
IBM, HP, Oracle and others
-
Carried messages through
collateral, presentations and
advertising
-
Created proposals and RFPs for Fortune 500
companies using the new brand, position
and messages
The Results: The results were very
positive:
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Revenues
for business products increased 5,000%
in two years.
-
Tradeshow traffic, magazine ad
response and positive media coverage
improved.
-
Messaging
and positioning content fed a renewed PR
campaign resulting in media mentions of
SuSE Linux wherever Red Hat was covered
(all smaller
competitors were excluded as the media told our two-horserace
story).
-
Strategic partners took renewed
interest in SuSE Linux - even paying for
representation in SUSE tradeshow booths.
-
SuSE Linux was sold to Novell for six
times annual revenues.
The Lesson: There are a number of lessons
from the SuSE Linux marketing strategy engagement:
-
Success in one region can blind a
company to how they should market
differently in
other regions. SuSE Linux's U.S. operation needed
independence in order to move their
market forward.
-
When you do not create your brand,
the market assigns a brand to you. SuSE
Linux's market-assigned brand would have kept it a
distant second unless they took
control.
-
The market rewards strength and
strength is reflected through
communications. SuSE Linux attracted more
participation from customers, more
attention from the media, more key
customer deals (including a corporate-wide contract for Ford Motor
Company),
and a favorable acquisition.
Contact Silicon
Strategies Marketing for a telephone
consultation on how to control market
perceptions.
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