Cisco spending big dollar to get its brand in your face


With the purchase of consumer Internet router and switch manufacturer Linksys in 2003, Cisco Systems, Inc. (NASDAQ:CSCO) appeared to want to break into the consumer marketplace by offering a line of modern household Internet products. Not sure what overlying competitive strategy propelled the company, but so it was. Linksys routers, such as the popular WRT54G, are now emblazoned by the Cisco name and logo, although the design is still Linksys'.

Is Cisco wanting to become a household name like Motorola, Microsoft or Pepsi? Most likely -- but Cisco products aren't kept in the pocket (Motorola), in the pantry (Pepsi) or in front of you when working hours at the computer (Microsoft). That is, unless you have your Linksys router with the tiny Cisco label directly in front of you while typing up that Microsoft Word document.

What goal does Cisco have to be entrenched among the consumer populace? If it potentially spends hundreds of millions of dollars to brand itself for the consumer space -- like it is purported to be doing -- what will the payback be beyond having a brand that consumers know better? After all, most Cisco products are sold to IT departments and are tucked away in server closets, yes?

What does Cisco have to gain with becoming more well-known to the average joe? If you own Cisco stock, do you approve? Cisco sells more Internet-traffic equipment that anyone in the world, so perhaps Cisco is making this push just for overall branding purposes and to see if it can raise CSCO stock to where it may deserve to belong, price-wise.



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Last updated: February 13, 2012: 05:29 AM

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