London, UK, April 1st, 2013 – Unilever (UNA) maker of the Nexxus line of hair care products announced its agreement with Gartner (IT) to sell the Connecticut based company its Nexxus product line in an all-stock deal. Industry analysts are confused but interested in the possibilities. “It seems like a natural extension of the consumerization of technology that a technology company should acquire consumer products.”
“We want you to use Gartner every day and you wash your hair everyday, so the connection seems a natural,” commented one Gartner product manager. “Besides it makes a natural product extension, our new Nexxus product line goes on your head and Gartner research goes in your head.” No immediate plans to merge the operations of the two companies were announced.
“It will be interesting to see what the acquisition will do to ‘customer experience’ at symposium and the appearance of Gartner Analysts. Both present interesting possibilities,” according to Jebediah Springfield at Simpson and Simpson PLC. Springfield commented that Gartner’s IT events made a unique and unparalleled opportunity to distribute samples and sell products.
Magnus Magnus, president of branding strategies sees an additional benefit to the acquisition for both parties. “Gartner has invested a lot in the term the “Nexus of Forces” and the Nexxus product line lets them take a virtual digital idea and make it analog and tangible. At the same time, Unilever further complicates the hair care market as Gartner will now compete with Garnier (www.garnier.com) in the premium hair care market. The name confusion alone is worth the deal.” Mr. Magnus predicts two immediate changes:
First, Gartner will change the name of its concept to Nexxus, “adding the extra X will make the IT based company seem more hip and relevant to the digital natives.” Second Gartner will come out with a new line of products aligned with the Nexus now Nexxus themes. “I can foresee Nexxus Cloud Conditioner that allows you to monitor the moisture in your hair over the web. Combined with a new Social Media Shampoo that tweets whenever its applied or you receive a compliment on your hair. The combination would be a truly disruptive personal product.” Magnus was unsure of the products that would represent the other forces. He mumbled something about Big Data foot cream and Mobile Mousse as he walked away from the interview.
Either way, the announcement has shook up the technology world as other firms look to follow the consumerization trend. Larry Ellison, founder of software giant Oracle was seen in talks with John Paul DeJoria the founder of the Paul Mitchell Hair Care Product Line. Remarking on their resemblance to each other, the two are talking about other product extensions for example between Oracle and Patron Tequila, as it seems the two products often are consumed together. Likewise, Meg Whitman, CEO of HP was rumored to be checking her shampoo for possible acquisition candidates.
Jim Creamer from CBNC’s Insane Bucks was reached for comment. “The Consumer market is 70% of the U.S. economy, connecting that economy with the increasingly digital world through cross branded products sounds like more than a hair brained scheme.”
More on this as it develops after today April 1, 2013.
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