Saturday, December 15, 2007

Verizon, Comcast and DishTV -- WTF!?!?

Just when you think you've seen it all...for all of you marketing folks out there, I think this by far is the best thing I've seen yet.

Comcast and Verizon are locked in a fierce battle to add subscribers, with Comcast being the established leader. However, Verizon's new Fiber Optic (FiOS) offering is clearly taking market share away from them. In fact, most of the fund managers I meet with at work have been hurt in 2007 by holding Comcast but have realized upside as Verizon continues to get more customers to switch from Comcast.



Remember the promise of all that fiber optic cable that the providers laid in the 90s? The Juniper Networks and JDS Uniphases of the world that were supposedly worth more than GE and drove the internet-bubble to dizzying heights with their killer-apps and fiber-optic that would render copper obsolete? Well it only took 10 years for all that infrastructure to get "utilized". We actually swtiched to FiOS and it is far and away better than Comcast. Comcast sucks, and competition is good, because without it, Comcast would continue to raise prices without as much of a peep from it's captive base.

I get it, Verizon and Comcast...but there is always a third competitor in any market, as Ghadar and his "Herfindahl Index" proved. DishTV is clearly the third game in town, with their niche being the sports package offerings where you can get your sports team games instead of having to watch the Giants or Yankees all the time. But the trade off is you every time it rains, no signal, and you basically have a sail mounted to your house.

So how is DishTV taking all of this competition, you ask?? Well, they certainly aren't taking this lying down. I was making eggs this morning, and noticed something on the egg itself. I kid you not, have a look at the picture below (Click to Enlarge):

WTF? This is brilliant, as is the marketing team that convinced an exec at DishTV to stamp a "1-800" number on eggs. Can't you just see the pitch:

"Here's our idea, it's called "Project Easter Egg." We stamp our 1-800 number on eggs. People eat eggs, it's the #1 breakfast food. Here is a pie chart that McKinsey put together showing the 5 year market growth estimates for egg consumption by U.S. Region. As you can see, the NY metropolitan area is growing by 25%, so we should stamp this info on eggs. If the take rate is 1%, and 1% of the take translates into a new customer, our subscriber base and revenue generated could be $MM. And not to mention that it's low cost way, so our Revenue per marketing $ goes up."

The only thing crazier than the pitch is the fact that the exec bought into it. I can just see the follow-on studies to understand the effectiveness of "stamping eggs with 1-800 numbers."

It's brilliant, but does nothing to make me want DishTV. Just thought I'd share, because it goes to show that people will do anything to get the word out. God bless the idiot that actually picks up the phone.

By the way, the egg was delicious. It's in the trash.

1 Comment:

justin said...

That is hilarious. I wonder what they had to feed the chickens to get them to lay eggs with 1-800 numbers on them.