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Expert: Dell had one of 2004's biggest branding goofs
Dell Inc. committed one of the top 10 branding blunders of 2004, a branding expert says.

 
For its foray into digital music, Round Rock-based Dell (NASDAQ: DELL) ranked No. 9 on the blunder list released by Kelly O'Keefe, chairman and CEO of Atlanta-based brand consulting firm Emergence Inc.

O'Keefe says Dell had designs on competing with Apple Computer Inc.'s iPod when it introduced its DJ. The Dell DJ's late introduction hurt holiday sales last year, even though Dell priced the product to undercut the wildly popular iPod, he says.

This year has seen little marketing of the Dell DJ, while Cupertino, Calif.-based Apple (NASDAQ: AAPL) has increased its dominance in hard drive-based music players by 10 percent and now controls more than 90 percent of that market, according to O'Keefe.

"What's the point in trying to go head-to-head with the market leader if you're not certain you really want to?" O'Keefe says. "Belief is crucial to the brand, and Dell has shown little signs that it believes in this offering. So why should anyone else?"

Dell spokesman Venancio Figueroa says: "Since the introduction of the Dell DJ and Pocket DJ products, we have been pleased with our customers' response to the offerings. They are enjoying the style, storage and battery capacity, and value that we offer. In addition, Dell's music products are based on open standards, which allow customers to legally download music from a variety of music stores."

At the top of the blunder list is Mattel Inc.'s questionable marketing of its iconic Barbie doll, including the decision to have her dump longtime boyfriend Ken. Third-quarter sales for Barbie were off 13 percent, according to O'Keefe.

Clients of O'Keefe's firm include high-end retailer Bloomingdale's Inc., home improvement chain The Home Depot Inc. and athletic apparel maker Russell Corp.

© 2004 American City Business Journals Inc.