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Author Topic: Some interesting news  (Read 10428 times)

Peter Morris

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Re: Some interesting news
« Reply #20 on: August 05, 2014, 01:46:20 AM »

That link is very interesting.  Much more than just the plug in cards.  Much of the copy came right from the X32 page,  The software, iPad apps etc.  the spectrum display all share the same art work.  The rack effects are identical, again as is the language.

I would think they would have differentiated the products much more.

Exactly! If MG create the perception that Midas = Behringer then the top end of the market is open for DiGiCo to take, especially with this latest news. MG just don’t get it.

What I don't get  ??? - it would have been soooo easy to avoid this – put KT on the modules, make the S16 stage rack look like it’s a new product not just a paint job, change the text and layout of the promotional stuff a bit and you’re done.

At the same time make an effort to support the Pro series and drive its rider acceptance.
 
If MG don't do better, in 5 years’ time the market will have forgotten Midas's iconic status and the current leverage MG is getting from the Midas name will be gone, and by association the same will happen to Turbosound.
« Last Edit: August 05, 2014, 02:11:54 AM by Peter Morris »
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John Roberts {JR}

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Re: Some interesting news
« Reply #21 on: August 05, 2014, 11:34:28 AM »

Exactly! If MG create the perception that Midas = Behringer then the top end of the market is open for DiGiCo to take, especially with this latest news. MG just don’t get it.
The real calculus here is where is the larger reward. Does Behringer make more money from raising the status of the entire Behringer product line, or defending the reputation of Midas in the relatively smaller market.
Quote
What I don't get  ??? - it would have been soooo easy to avoid this – put KT on the modules, make the S16 stage rack look like it’s a new product not just a paint job, change the text and layout of the promotional stuff a bit and you’re done.
Except now you must support multiple versions of every product you want to include in that digital eco-system. The inventory/distribution cost to support all these extra glue SKUs world wide is significant, with availability of the low volume versions probably challenged.

If customers are willing to pay a high enough premium for re-skinned versions (with the same guts) this might work on paper, but eventually the customers will figure out that they can just  buy the cheaper branded version in the first place and the lower volume version gets driven even lower so unsustainable. This is a juggling act and so far they seem to have managed the M32 version with good demand. 

Lets not forget that Midas did not buy Behringer because they were so successful, but the other way around.   
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At the same time make an effort to support the Pro series and drive its rider acceptance.
 
If MG don't do better, in 5 years’ time the market will have forgotten Midas's iconic status and the current leverage MG is getting from the Midas name will be gone, and by association the same will happen to Turbosound.

I have been watching from the sidelines as Uli mounted his charm offensive to re-invent Behringer. Younger customers do not share our historical perspective on the market, so for them Behringer is the polished version of itself. 

I am a student of brand management and as far as I can tell Behringer has been doing a pretty good job at the impossible task of having it different ways for different markets.  Lets not lose track of who is the tail and who is the dog. Even if Midas declines over time, the brand image value improvement for Behringer will pay the larger reward.

JR

@ Scott:  Do not confuse your personal perception of brand image with the broader market perception, and especially the CEO's self perception. New customers are a blank sheet to be won or lost without historical prejudices. Over time old guys with bad attitude will die off. 8)

 
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Scott Holtzman

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Re: Some interesting news
« Reply #22 on: August 05, 2014, 12:30:04 PM »


@ Scott:  Do not confuse your personal perception of brand image with the broader market perception, and especially the CEO's self perception. New customers are a blank sheet to be won or lost without historical prejudices. Over time old guys with bad attitude will die off. 8)

John - I try to be as objective as possible.  Since I do quite a bit of volunteer HOW work I have had a good exposure to the good/bad/ugly of B.  With regard to Uli's business acumen in this matter I compared the Goldstar-LG and Valuejet-Airtran epic reversals.  Airtran being the most impressive, same planes, same mechanics, same pilots.  They achieved the turn around via process improvement, communication of value proposition, a coat of paint, 10 new planes and brass balls.  They did it so well the company was a good buy for Southwest.  Very impressive.

The public will spot lipstick on a pig a mile away.  B. is being innovative and creating a compelling value prop. 

To repeat the mantra, it's an interesting time to be in audio

An a purely business side note, I can take a passable Behringer product. the B-1x series loudspeakers, no carpet solid construction.  With some minor tweaks the can survive rental market.  On the secondary market if you are savvy you can buy used/non-working inventory sub $100 per cabinet.  Two hours of time and $100 in parts and I have a cabinet that I can rent all day long for $25-50 a day and not care if it comes back blown up or trashed.  In fact so far the loss/damage waiver is a money maker (with a deductible of course).

It's this kind of bread and butter business that creates capital to purchase the esoterica to do the work we want to do.

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Hayden J. Nebus

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Re: Some interesting news
« Reply #23 on: August 05, 2014, 12:35:00 PM »

While product line differentiation may make good short term sense, I note that "Midas" is not the family name of the CEO. I don't know Herr B., but I suspect that he might want to have his family name as closely associated with audio gear as Honda is with motorsports and power equipment. He may wish to play a "Trump" card, if you will.  Mark C.

More like Old Yeller Brand dog food. More than one person decided that was an appealing brand name, and apparently people buy it. All it makes me think of is rabies.
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John Roberts {JR}

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Re: Some interesting news
« Reply #24 on: August 05, 2014, 01:02:25 PM »

John - I try to be as objective as possible.  Since I do quite a bit of volunteer HOW work I have had a good exposure to the good/bad/ugly of B.  With regard to Uli's business acumen in this matter I compared the Goldstar-LG and Valuejet-Airtran epic reversals.  Airtran being the most impressive, same planes, same mechanics, same pilots.  They achieved the turn around via process improvement, communication of value proposition, a coat of paint, 10 new planes and brass balls.  They did it so well the company was a good buy for Southwest.  Very impressive.
Unless you were long airtran stock (like I was) when they stuck that jet into the glades.

I guess Malaysia Air needs a new name now. 

I do not see the parallel with music equipment industry. Back in the '70's Sony repositioned their brand higher end, using the trinitron picture tube technology.

JR
Quote


The public will spot lipstick on a pig a mile away.  B. is being innovative and creating a compelling value prop. 

To repeat the mantra, it's an interesting time to be in audio

An a purely business side note, I can take a passable Behringer product. the B-1x series loudspeakers, no carpet solid construction.  With some minor tweaks the can survive rental market.  On the secondary market if you are savvy you can buy used/non-working inventory sub $100 per cabinet.  Two hours of time and $100 in parts and I have a cabinet that I can rent all day long for $25-50 a day and not care if it comes back blown up or trashed.  In fact so far the loss/damage waiver is a money maker (with a deductible of course).

It's this kind of bread and butter business that creates capital to purchase the esoterica to do the work we want to do.

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Scott Holtzman

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Re: Some interesting news
« Reply #25 on: August 05, 2014, 02:45:55 PM »

Unless you were long airtran stock (like I was) when they stuck that jet into the glades.

I guess Malaysia Air needs a new name now. 

I do not see the parallel with music equipment industry. Back in the '70's Sony repositioned their brand higher end, using the trinitron picture tube technology.

JR

Well true but Malaysia Air had/has a good name and one incident to charge against accrued good will.  Valuejet on the other hand was on the ragged edge, equipment flying with MEL waivers, untraceable parts etc.  The accident was caused by a gross breakdown in process and communication within the organization. 

Goldstar to LG is a much better example IMHO
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Scott AKA "Skyking" Holtzman

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Peter Morris

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Re: Some interesting news
« Reply #26 on: August 05, 2014, 09:22:48 PM »

JR,
Your points are of course all valid; it’s just that I think the desired outcomes could all be achieved with much less, if any impact on Midas.
 
Until very recently I thought Uli's strategy had been perfect. In one respect he has done exactly as I expected with the release of the ProX.  He has built one of the best sounding and most powerful digital mixers available, and he’s done it for $40K!

What Uli doesn’t seem to understand is the Pro market; it would rather pay $80K for a rider accepted desk, than $40K for a non-rider desk even if it’s a better desk. No matter how good it is, if you can’t hire it out, it’s worth nothing.

I have an iron in both the Midas and Turbosound fire, so I hope he does get it right. I was planning on buying some more Midas consoles, but he has made me too nervous at the moment.

Two weeks ago I flew halfway across the country to do DiGiCo training...
« Last Edit: August 13, 2014, 09:03:12 AM by Peter Morris »
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John Roberts {JR}

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Re: Some interesting news
« Reply #27 on: August 12, 2014, 01:23:46 PM »

Well true but Malaysia Air had/has a good name and one incident to charge against accrued good will.  Valuejet on the other hand was on the ragged edge, equipment flying with MEL waivers, untraceable parts etc.  The accident was caused by a gross breakdown in process and communication within the organization. 

Goldstar to LG is a much better example IMHO
Not to feed this veer but recent news is that the Malaysian government has had to step in with cash to help Malaysian air keep the doors open. The Malaysian government investment corp already owns 70% and they are looking to take it private again, replace management, layoff many workers and do a corporate reset.

I would not be surprised is a name change was part of the reset. While I do not blame the old managements for their run of bad luck, the task of what is effectively a new start-up is harder than managing an ongoing (profitable last three years) concern.

JR
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Ned Ward

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Re: Some interesting news
« Reply #28 on: August 13, 2014, 02:28:13 PM »

If they do this smartly, they can save money in a bunch of areas that are below the line, or not important to the end user:

Back office - all of these companies have supply chain, payroll, finance, legal, HR. Sharing all of those across the 3 companies should save money and no one will miss the Calrec legal person or the Digico payroll system.

Purchasing - standardizing on common elements - screws, nuts, washers - is a big deal. Having 3 companies to standardize on things that don't deter from their individual brands can lower overall costs. If you can get to the point where you have common power supplies and that level of commonality without changing the sounds of the individual consoles, you may be able to save some more money.

should be interesting.

From a financial terminology standpoint, private equity is what we used to call venture capital. It can be from companies specializing in this, from mutual funds, or from investment banks. It's another way for companies to raise funds besides issuing debt or equity stock in the public market, which also means they don't have to disclose a lot of financial information.
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Re: Some interesting news
« Reply #28 on: August 13, 2014, 02:28:13 PM »


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