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Are Analysts in Touch with PC Market

In a piece noting Compaq Computer's planned ad campaign featuring Sting, Om Malik cites harsh criticism by Merrill Lynch analyst Steve Milunovich. Milunovich calls the plan "terrible advertising" and suggests that Compaq needs a "differentiating message." Perhaps Milunovich is right. Image advertising is always risky, leaving an impression of the star involved greater than the product. But with the youth market for small PCs growing and the age of PC users dropping, this is a gamble that Compaq is apparently prepared to take. Sting, also an icon of the upper cusp of Generation X, may connect with older parents buying for this youth market. My point is don't underestimate the power of a youth icon to drive a product's image. Milunovich, steeped in Wall Street number crunching, may be missing the mind-set of Compaq's prospects. It could be a rock 'n roller such as Sting provides just the differentiation Compaq seeks. Youth culture rules our society - give the people what they want.

Tue, 16 Nov 1999 13:35:03 -0800