Case Study Analysis
Case # 2
‘Logitech: Launching A Digital Pen’
Group Members: Cristina Di Paolo, Priya Kalyanakrishnan, Natasha Nyapati,
Shady Selim, Katherine DeVrieze
Date: Friday, November 2, 2012
During Q4 of 2002, the research and development team of Logitech, who had been working closely with Anoto for months, released the Logitech io, the digital pen that was set to revolutionize the way individuals and businesses captured, stored, and transmitted information. The Logitech io worked with handwriting recognition software, in addition to digital paper technology, in order to have a device that not only wrote as a normal pen did, but electronically recorded written content in order to have it converted to text when placed in its USB cradle. This product was cohesive with Logitech’s existing line of computer peripheral products, acting as a brand extension as well as a unique addition to Logitech’s product mix. The launch of this product was accompanied by an incredibly sound business analysis and an exceedingly informed value proposition. According financial statements in the company’s online press releases, Logitech’s Q4 gross profits accounted for 43% of the gross profits earned in the last 3 quarters of 2002. Though the release of this product went over favourably, Logitech ultimately relinquished the io to digital writing business Destiny Wireless in 2007. As stated by Rory Dooly, Logitech’s senior vice president of control devices business, in a 2007 press release, “the digital writing category is not central to our strategic product direction”.
Logitech’s change of heart was mainly an issue of unsought product. A Logitech strategic marketing vice president summarized it eloquently when he stated that “[customer need recognition is limited by their understanding of technology,” as quoted in a case study focusing on Logitech’s io release. Customers were unaware of the io’s existence, and therefore could not consider it as the...