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Company
Cyrix
was the world’s third-largest independent producer of microprocessors
until its sale to National Semiconductor in 1997.
Challenge
Cyrix
recruited Origin Communications to launch a full-scale channel marketing
support system for its Value-Added Resellers and Dealers (VARs/VADs),
distributors and retailers. Cyrix’s objective was to dominate competitors
by supporting the channel with first-class service and sales incentives.
Cyrix presented Origin with the challenge of creating the framework for
a complete channel operation within 30 days.
Strategies
Origin
created Cyrix Direct Connect, a complete channel solution for Cyrix. Origin
created the telephone and internet systems to handle communication with
thousands of Cyrix’s North American dealers as well as a sophisticated
custom database for tracking. Origin also established a fast-response
warehouse to ship collateral, point-of-purchase material, welcome kits
and samples to the field as well as set up complete merchant account services.
Origin created and managed a performance-based co-op advertising program that rewarded top performers with advertising allowances. Origin tracked channel performance, created semi-custom co-op ad "shells," coordinated shipping and photography of dealers’ systems for placement in ads, produced custom artwork for each co-op partner and negotiated advertising in local and national newspapers, magazines and radio. The advertising program resulted in turn-key, personalized advertising campaigns and placements in hundreds of media outlets. Campaigns were geared towards retailers and end-users as well as distributors, resulting in a "push-pull" strategy that was effective in creating top-to-bottom demand for Cyrix products.
Results
Cyrix
Direct Connect grew from an initial 1,500 channel participants to over
18,000 in a two-year period. Sales increased dramatically and Cyrix built
a loyal channel following. Many dealers become "Cyrix-only"
houses, virtually abandoning competitors. The number of qualifying co-op
partners for the advertising program increased from a few to several hundred
in less than six months. Overall, ROI for the program was several hundred
percent.
