Novell fights back with aggressive marketing strategy

Novell is attempting to beef up its image, following the abrupt resignation of former chief executive Bob Frankenberg last month.

Within days of Frankenberg's departure, Novell officials hurried forward an aggressive marketing plan designed to buff up the company's image.

The strategy calls for unity in the company's global marketing messages, and proposes that the advertising budget be doubled to $100m (# 64.5m) in fiscal 1997. The aim is to push the intranet side of Novell's products.

Lack of focus and direction resulted in the exodus of top Novell executives during the last quarter. More than a dozen marketing and public relations directors have left Novell in the past six months.

The company lost its vice president of corporate marketing and the product marketing directors in its Internet infrastructure, Internet commerce, management products and communications products divisions.

One marketing manager who recently left for greener pastures said: 'Being there was like being caught in a really unfocused whirlpool, and it came down to the question, "Hey, do I really want to spend the next five years spinning around trying to fix Novell?". There are a lot of people who answered no to that question. It is a headhunter's haven over there.'

Another former Novell marketing director who asked to remain anonymous said: 'The frustration that has really caused the haemorrhaging of marketing people lies in upper management not recognising the obvious direction toward the Internet, and then not being able to turn the boat quickly enough to catch that wave.'

Others who left Novell expressed concerns that competition between company divisions resulted in a disjointed corporate message.

All the divisions have been building up their individual businesses, and efforts were not synchronised, so people outside were not aware of the company's strengths, said Doug Kernan, former director of product marketing at Novell's communications division.

Kernan left Novell in June to become vice president of marketing at Semaphor Communications. The new plan is intended to create a unified marketing front and clearly spell out Novell's position on the intranet.

According to Steve Markman, executive vice president and general manager of Novell's product group, the company's revamped marketing strategy focuses strictly on IntranetWare, GroupWise and ManageWise. Novell intends to convince its users that, together, these products provide a solid intranet platform.

'This is the message you will see in our ads, in our press releases, in literature. We will put everything we can behind this,' Markman said.

Joe Rodrigues, worldwide director of advertising, said Novell will spend $20m in each quarter of fiscal 1997 to drive home the message. This represents a 100% increase in the company's advertising budget, he added.

Industry observers said that for Novell to compete with Microsoft in the booming intranet applications server market, it must convince chief executives and top-level IT professionals that its mind-set goes beyond NetWare. If Novell's new story is not articulated clearly enough at this level, analysts argue, users will rip out NetWare in favour of a more intranet-savvy platform.

Peter Rubicam, first vice president and senior equity analyst with Dean Witter Reynolds in New York, said: 'Until recently, Novell has been virtually silent on this issue and Microsoft has got a great hold on the mind share.

'While they still need a strong evangelist at the top, I think they are moving in the right direction with this push.'

Additional reporting by IDG News Wire staff.