Advance Marketing
Marketing Excellence Cisco
Cisco Systems is the worldwide leading supplier of networking equipment for the Internet. The company sells hardware (routers and switches), software, and services that make most of the Internet work. Cisco was founded in 1984 by a husband-and-wife team who worked in the computer operations department at Stanford University. They named the company cisco—with a lowercase c, short for San Francisco, and developed a logo that resembled the Golden Gate Bridge, which they frequently traveled.
Cisco went public in 1990, and the two founders left the company shortly thereafter. Over the next decade, the company grew exponentially, led by new-product launches such as patented routers, switches, platforms, and modems, which significantly contributed to the backbone of the Internet. Cisco opened its first international offices in London and France in 1991 and has expanded to more than 165 countries. During the 1990s, Cisco acquired and successfully integrated 49 companies into its core business, growing its market capitalization faster than that of any company in history—from $1 billion in 1991 to $300 billion in 1999. In March 2000, Cisco became the most valuable company in the world, with market capitalization peaking at $582 billion, or $82 per share.
By the end of the 20th century, the company was extremely successful, but brand awareness was low. Many consumers and investors knew Cisco for its stock price, but few outside the industry knew what it did. Cisco developed partnerships with Sony, Matsushita, and US West to co-brand its modems with the Cisco logo in hopes of building name recognition and brand value. In addition, it launched its first television spots as part of a campaign titled “Are You Ready?” In the ads, children and adults from around the world delivered facts about the power of the Internet and challenged viewers to ponder, “Are you ready?”
The company survived the Internet bust but reorganized in 2001 into 11 new technology groups and a marketing organization, which planned to communicate the company’s product line and competitive advantages better than it had in the past. In 2003, Cisco introduced its largest marketing campaign to date, including a new slogan, “This Is the Power of the Network. Now.” The international campaign targeted corporate executives and highlighted Cisco’s critical role in a complicated, technological system by using a soft-sell approach. Television commercials explained how Cisco’s systems change people’s lives around the world, and an eight-page print ad spread didn’t mention Cisco’s name until the third page. Marilyn Mersereau, Cisco’s vice president of corporate marketing at the time, explained, “Clever advertising involves the reader in something that’s thought-provoking and provocative and doesn’t slam the brand name into you from the first page.”
Cisco entered the consumer segment with the acquisition of Linksys, a home and small-office network gear maker. Within a year, Cisco offered several home entertainment solutions, including wireless capabilities for music, printing, and video. The transition into the consumer segment triggered a rebranding campaign in 2006, aimed at increasing awareness among consumers and lifting the overall value of Cisco’s brand.
“The Human Network” campaign tried to reposition the technology giant as more than just a supplier of switches and routers by communicating its role in connecting people through technology. The campaign evolved into “Built for the Human Network” and targeted everyone from consumers to IT professionals. As a result, Cisco developed a new marketing strategy that showcased its brand as fun and digestible, using interactive games, videos, and virtual events.
Cisco’s partnership with sports and entertainment venues created the perfect opportunity to exhibit the way its technologies connected people to their passions. Cisco Connected Sports turned sports stadiums into digitally connected interactive venues, “the ultimate fan experience.” Fans could meet the players virtually through a videoconferencing system, while digital displays throughout the stadium allowed them to pull up scores from other games, order food, and view local traffic. These flexible platforms could also work with business conferences and music concerts.
Cisco’s ultimate goal is to increase overall Internet traffic, ultimately driving demand for its wide range of products. The company has recently expanded into consumer electronics, business collaboration software, and computer servers. Revenues topped $47 billion in 2014, and its market cap exceeded $118 billion. Its Web site boasts, “We help the most innovative companies in the world do things they never could before.”
Sources: Marguerite Reardon, “Cisco Spends Millions on Becoming Household Name,” CNET, October 5, 2006; Michelle Kessler, “Tech Giants Build Bridge to Consumers,” USA Today, March 13, 2006; Marla Matzer, “Cisco Faces the Masses,” Los Angeles Times, August 20, 1998; David R. Baker, “New Ad Campaign for Cisco,” San Francisco Chronicle, February 18, 2003; Bobby White, “Expanding into Consumer Electronics, Cisco Aims to Jazz Up Its Stodgy Image,” Wall Street Journal, September 6, 2006, p. B1; Burt Helm, “Best Global Brands,” BusinessWeek, September 18, 2008; Ashlee Vance, “Cisco Buys Norwegian Firm for $3 Billion,” New York Times, October 1, 2009; Jennifer Leggio, “10 Fortune 500 Companies Doing Social Media Right,” ZDNet, September 28, 2009; Karen Bannan, “How Cisco Used Consumer-Based Marketing Strategies to Reach B2B Clients,” BtoB Marketing, July 20, 2010; Cisco.com.