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3Com Channel Marketing

Channel Marketing Case Study

"3Com Small Business Networking"
From 1996-1999 Kerry led the marketing efforts for 3Com Corporation's expansion into the small business market.

The Challenge

  • In 1996 enterprise networking hardware leader, 3Com Corporation was looking to expand into the growing small business segment. This market was not familiar with 3Com or networking technology.
  • Most small business owners didn't employ a CIO, nor did they read any computer publications. In many cases they needed the basic benefits of networking explained to them. 

Research

  • Kerry worked with a branding agency and conducted focus group research to understand this new target audience -- who did they purchase from, what words did they use to describe their businesses, what did they know about networking?
  • Next, she hired Progressive Studies to complete an analysis of how networking could benefit small businesses. The study yielded some astonishing results concluding on the average networking could improve a company's productivity by 40 percent.
  • An analysis of the research showed that 70% of small businesses relied on VAR's for recommendation and purchase of their networking equipment. 3Com realized it had to develop a relationship with an entirely new kind of channel – the so-called strip-mall VAR who numbered in the thousands and did more than half their trade with small businesses.

Strategic Planning

  • A strategic decision was made to first concentrate on building a channel of small business resellers and after that was completed to start end user marketing.
  • Kerry created a Small Business Advisory Board to review key strategic decisions and even items such as ad copy.  She recruited members from analyst, reseller, small business and editorial communities and met with the board once per quarter.

Tactical Elements - Channel Marketing (Detailed program examples)

Tactical Elements – End User (Detailed program examples)

The Results

  • The overall campaign was a huge success. The company was named the small business market leader in network interface cards, hubs and modems.
  • 20,000 new Small Business resellers joined 3Com's program in just 1 year. This was approximately one-third of the total number of resellers that targeted small businesses with LAN and WAN products according to VAR Business. The company also recruited 15,000 new European resellers and 6,000 Latin America resellers.
  • Awareness of 3Com as a small business networking company grew 10% in 6 months.
  • 6500 small business owners (end user) registered for The Ultimate Connection sweepstakes. More than 5 million media impressions were garnered; 12 case studies were created; and all the leads were sent to 3Com's new partners.
  • 40,000+ resellers listened each quarter to the 3Com Small Business Report on CRN's web site.
  • As a result of the successful program, 3Com reorganized the company to create a division targeted to small-medium businesses.

Related Articles
Read articles that quote Kerry speaking about the success of 3Com's small business marketing campaign.

Marketing Computers - December 1997 "Thinking Small"

CNet News.Com - September 18, 1997

Computer Reseller News - April 20, 1998 "3Com Gets Connected"