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INSIDE CHANNELWEB
THE FINAL CUT

Sun Set, Sun Rise


CRN logo By Steven Burke, ChannelWeb

12:00 AM EDT Mon. Apr. 30, 2007
From the April 30, 2007 issue of CRN
What was Sun thinking before it got its act together and pulled back last week on what can only be described as one of the biggest corporate marketing blunders in the history of this insane business?

The debacle began with Sun's Web site proudly proclaiming: "We celebrate. You save. Take advantage of Sun's 25th anniversary sale and get unbelievable pricing on our most innovative products. Sale ends May 7."

STEVEN BURKE
Can be reached at (781) 839-1221 or via e-mail at sburke@cmp.com.
For Sun VARs, the message may as well have read: "We celebrate. You lose sales and profits. Watch us pull the rug out from under you as we offer customers pricing you'd never in your wildest dreams be able to match."

Sun slashed prices by as much 60 percent on some of its most popular products in a two-week direct-sales-only promotion. If you want the full impact of the channel anger that the promotion caused, go to crn.com and read the full initial story by CRN Senior Editor Joseph F. Kovar titled, "Sun Stuns And Angers VARs With Direct-Sales Promo".

By midweek, in fact, Sun was profusely apologizing for the gaffe and had moved to allow full channel participation in the promotion.

Congratulations. Great recovery, Sun. But why didn't corporate marketing realize how damaging this could be in the first place? Why didn't it listen to its channel managers who apparently were arguing for inclusion of the solution providers with whom the company has been claiming it wants to do more business?

The fact is corporate marketing was allowed to run roughshod over the channel team and partners. This goes on all the time. Usually, numb, beaten-down partners and frustrated channel leadership end up taking the sales hit with nary a cry. But this time, the partner revolt and channel leadership backlash were so vociferous that action was taken.

Ultimately, the sales promotion is a Harvard Business School case study on corporate marketing run amok. Sun pulled back and did the right thing. But why did it have to reach a breaking point? If Sun really wants to celebrate its 25th anniversary, it should firmly resolve to bring its marketing team in line with its channel team and partners from here on forward.

Happy anniversary, Sun. Here's hoping you're channel born-again and that you never look back.

What do you think of the Sun backlash? Contact Steven Burke at (781) 839-1221 or via e-mail at sburke@cmp.com.

 
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