It’s hard to believe that even with its amazing success as a simple, hand held, digital video camera, the Flip has been killed by Cisco (go to http://mwne.ws/hd5Xfu). To me it only shows a lack of understanding of the equity of a loved brand in a successful marketplace: the top-selling digital camera with over 2.5 million sold by 2010. It’s not about being the only player in the market or being part of the “Cisco Home Network” strategy, which Cisco says is their direction that Flip does not fit into. It’s about a device that has a loyal following: actively involved customers, blogs, and conversations that support the brand. You cannot create this overnight—you need customers to make it happen. Why squander this?
Let’s be really frank here: Cisco’s acquisition of Flip was a bit weird. What did Cisco, a multibillion dollar B2B networking company, think it was going to do with this homespun consumer digital camera? Well, whatever it was, it didn’t happen.
But still, why kill it? It has brand equity that cannot be replaced. How many consumer brands launched in the last 5 years have such devotion and recognition, with hundreds of blogs, sharing communities and Facebook friends. Although newer phones with video have clouded the future of simple single-purpose digital cameras, the Flip brand could survive and support a growing customer base.
The key to brand value is not the technology per say, but the loyalty, the customer created brand value that can be morphed into other products and experiences for the brand. The one thing you cannot count on in building new products is brand loyalty, love and commitment. I think the Flip has more of this than all of Cisco, which is more a company of functionality, not committed loyalty.
Cisco, like many technology companies, thinks only linearly within the context of their technological hold on the market, but the Flip does not fit this model – it’s a consumer brand with limited market share in a changing consumer landscape. It does not fit into the Cisco networking world.
I say, why not sell it to another company willing to innovate around the brand and continue to cultivate customer support, love and and grow the brand.
Too bad. Goodbye, Flip!