Caesar, in this thread our members have focused on Magico and Wilson with respect to the marketing and image issues you raised. What about some of the other high end speaker manufacturers? Can we identify what are their respective marketing campaigns and images? Can we extrapolate from that data anything that might shed additional light on both Magico and Wilson?
Ron,
This industry is very small, as we all know. To be in the game, as a manufacturer, you need a good product, a few folks with a reputation who own your product, some word of mouth, and good customer service. Most people “try it and buy it”. Exclusivity in an already tiny market seems to be a selling point, rather than something that hurts sales – despite the obvious risks of the obscure parts availability, gear breaking down, founder dying, etc.
Barriers to entry are fairly low. People can just build something in their garage, rent a truck to take it to a show, get some publicity, and sell directly via internet. They can charge pretty much whatever they want. The more the better to help differentiate themselves from their pedestrian competitors, as mentioned in a post above. There is little focus on good branding and marketing. But having a good brand helps overcome some of these barriers by keeping the competition away from you and keeps your customers from switching.
In most cases, the designer is the brand. From a business strategy perspective, this is a very weak position to be in, as you are as good as your latest product. Take an example of Nola and VTL. Valin, in his RMAF blog on the avguide site, did a nasty hit job on both of these. He slammed the new $60K VTL Siegfried as a step back and he suggested that the newly released $60K Nola speaker needs a new cabinet for the bass to sound “right”. This will be very hard to overcome. I am sure that Manley and Carl M did not go to a nice steak dinner to celebrate Valin’s commentary, but a good brand will be able to better sustain and overcome such a hit on a reputation than a guy working in his garage.
For Wilson Audio, David Wilson is a big part of the brand. He is the authority. He has helped the industry grow up. He is an authentic super-audiophile. On the website, he talks about being “authentic”. But his reasons are weak. Wilson speakers are not authentic because of the videos of guys rubbing down the speakers (which is justification of the high price) or because it is an expensive luxury item. Their competitors have the same factors at play. IMO, people buy a Wilson because they become more authentic audiophiles with a Wilson speaker than with another brand. It’s an identity play that others could not easily pull off. Wilson should just get some Chutzpah and say that you will be a more real audiophile than your friend if you own their speaker. (If Alon Wolf had the gravitas of David Wilson, he would say it. He “hired” Valin as his “PR rep”, but Valin is not David Wilson.)
Of course, the reasons for poor marketing and business strategy is that most folks in audio do not understand economics and are not business professionals. That’s why I think it’s better to look at examples of successful brand building across other industries. A great brand coupled with a great organizational culture will outlive the founders - just Google the list of the most valuable brands for many examples.