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Case Study: Agilent's Test & Measurement Group Regains Credibility on Rollout
Problem: As Hewlett-Packard contemplated the spinoff of yet-to-be-named Agilent Techologies, the $4B+ Test and Measurement (T&M) Group—by far the largest component of Agilent—faced mounting problems. The T&M Group's image was suffering from a variety of issues, causing it to lose market share and its coveted position as the industry leader. HP executives wondered if the spinout would accelerate T&M's downhill slide, or be the catalyst that would restore it to its former enviable position.
Solution: A full marketing audit by CommPros Group Associate Partner Murry Shohat revealed that, despite its current problems, T&M still held the upper hand in semiconductor test and measurement—the cash cow of its business. The study also found that its soon-to-be-released new products were on-target to satisfy a major market need and were technically superior, to the point of being "awesome."
Shohat noted that T&M had a rich heritage that extended all the way back to the original garage in which Bill Hewlett and David Packard had launched the company. And its infrastructure was strong, even though there was some moderate internal dissention stemming from the turmoil at HP's corporate level.
As HP wanted each business operation to handle its own media and analyst relationships in a common spinout framework, Shohat developed a strategy to emphasize these strengths. After all, the T&M Group had earned the right to wax nostalgic on its history. And, the truly amazing new products due for launch gave the company the ability, perhaps even the obligation, to conduct one-on-one media and analysts briefings.
The press and analysts found this approach refreshing, as "the HP Way" had almost always employed a modest, non-proactive approach to the media, with the company rarely conducting press tours.
T&M Group Senior Vice President Tom Newsom, an executive with roots all the way back to the garage, accompanied Shohat on a whirlwind, three-day press tour to visit the core media and analysts in Boston, New York and Chicago, while a comparable Silicon Valley team conducted in-house briefings on the West Coast.
Unlike many press tours that are little more than dog-and-pony shows or platforms to regurgitate the company line, Newsom and Shohat did not take with them any special exhibits, slide shows, talking points, or other collateral. They wanted the tour to be compelling, unrehearsed and highly interactive, so that every editor and analyst knew that his or her interview was completely unique.
Each meeting consisted of two briefings: the first dealt with the upcoming spinout by HP of the "No-Name Company," and the second previewed the launch roadmap of T&M's "amazing" new product. After a few sessions, Newsom and Shohat realized that the nostalgia component was an important image to convey during this tour, as no matter what the new company was finally named, it would carry on an important HP attribute—exceptional product leadership and customer support. New company, same "HP Way."
The strategy worked. Journalists and analysts greeted the team warmly and either promised to reserve ample space in a future issue of their magazine, newspaper or investor research report for product coverage, or to write about the values of the new company in their next edition.
With future new product reviews secured, the promotion of the T&M Group during the spinout was indeed the rocket fuel that the new company needed to boost it back to its previous market dominance. By the time it was christened "Agilent" one month later, its reputation had been almost completely restored. In fact, the naming of the new company generated more media buzz and further enhanced its market dominance.
Shortly thereafter at the annual Semicon West convention, the T&M Group was officially renamed the Automated Test Group (ATG) during an invitation-only "coming-out" party in Agilent's huge booth. Working models of its new products were strategically situated on the show floor, where journalists were offered exclusive "drill down" opportunities to discuss product features with Agilent engineers. And key media were invited to meet one-on-one with Agilent's new CEO Ned Barnholdt in a special open-air conference held on the booth's rooftop plaza, with the entire show flow as a backdrop.
Press kits contained glossy brochures, interesting fact sheets and vintage photos that emphasized the heritage and garage, along with the obligatory press releases. Many editors requested extra kits to save "for posterity." Even after the convention, the campaign continued to generate coverage. For example, the CEO interviews stimulated a third round of stories in as many months. And "Dreams Made Real," the catchy unifying slogan for the newly minted, yet heritage-rich, Agilent continued to compile ongoing press for several years, creating its own legacy for the new company.
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