ML New Prez

[Keith]

I didn't see any mention of this here, but they have found a replacement for Gayle's replacement.

http://www2.ljworld.com/news/2007/aug/08/martinlogan_tunes_new_leader/?business

There is a video news story at that location also.

Keith

 

[Craig]

The recent tour they mention in the article was our tour. Take a close at this photo. Who was that in the yellow shirt?

http://www2.ljworld.com/photos/2007/aug/08/129551/

 

[nsgarch]

And if he does what he says he wants to do, it will be the end of ML as we know it -- and it may be the end of MartingLogan altogether, if he can't pull it off.

Basically, he wants to expand the ML line (as if it wasn't large enough already) to include more 'lifestyle' products (like Bose, the new JBL, the new Infinity, etc) which if it works, will make ML just another name at Best Buy. And he wants to do this globally! I mean -- aren't there already enough companies making in-wall speakers? And is that an appropriate location for a dipole electrostatic? C'mon!! ML makes a unique, and let's not forget successful product(s). Why change it into just another speaker company dining out on it's past glory like JBL and Infinity?

Very few specialized high end companies have survived this kind of conglomerate-ization without losing their focus and identity. We almost lost McIntosh altogether, Marantz to the lo-end, JBL as a producer of high quality home loudspeakers, Infinity to the lo-end; and we're about to lose Madrigal/Levinson, except for their very profitable automotive division.

Someone once said, "in a capitalist economy, a business must expand a certain amount each year just to stay the same!" I'll smoke to that! But there are lots of ways to expand a company, maybe a bit more slowly, but without sacrificing its core products and market.

This hotshot (listen to the audio clip) doesn't seem to have the foggiest idea what ML is to its current customer base. Either that, or he doesn't care, and just wants to build up profits quickly and then sell it off for his new masters.

 

[sleepysurf]

Hmmm, very interesting, especially that the new CEO worked at a stereo shop competing with the one Gayle worked at! Sounds like ML will really be targeting the architectural market (as mentioned during our visit), as well as stronger marketing internationally, and to females. IMHO, those are more mid-fi than higher-end markets, so I hope they are still committed to investing research and development $$ into the latter sector. Guess we'll see if the CLX ever gets off the drawing board.

 

[jtwrace]

And if he does what he says he wants to do, it will be the end of ML as we know it -- and it may be the end of MartingLogan altogether, if he can't pull it off.

Basically, he wants to expand the ML line (as if it wasn't large enough already) to include more 'lifestyle' products (like Bose, the new JBL, the new Infinity, etc) which if it works, will make ML just another name at Best Buy. And he wants to do this globally! I mean -- aren't there already enough companies making in-wall speakers? And is that an appropriate location for a dipole electrostatic? C'mon!!

Very few specialized high end companies have survived this kind of conglomerate-ization without losing their focus and identity. We almost lost McIntosh altogether, Marantz to the lo-end, JBL as a producer of high quality home loudspeakers, Infinity to the lo-end; and we're about to lose Madrigal/Levinson, except for their very profitable automotive division.

Someone once said, "in a capitalist economy, a business must expand a certain amount each year just to stay the same!" I'll smoke to that! But there are lots of ways to expand a company, maybe a bit more slowly, but without sacrificing its core products and market.

This hotshot (listen to the audio clip) hasen't the foggiest idea what ML is to its current customer base. Either that or he doesn't care, and just wants to build up profits quickly and then sell it off.

This is also another reason I decided to sell my ML's. The company is not what it was 15 yrs ago in terms of direction. I don't like it.

 

[sleepysurf]

Who was that in the yellow shirt?

Isn't that Tony?

 

[Craig]

I think it is TonyC.

I can understand the business case for branching out into other market areas. I wouldn't be concerned as long as they continue to maintain and improve their audiophile line as they have done from the beginning.

This hotshot (listen to the audio clip) hasen't the foggiest idea what ML is to its current customer base. Either that or he doesn't care, and just wants to build up profits quickly and then sell it off.

That's a lot of judgement to make from a 20 second audio clip probably taken out of context from a lengthy interview. I've been around long enough to know a news report is usually distorted and innaccurate. I'll reserve an opinion on the guy and the company until I know a lot more both. I spent enough time with many of the ML employees to know they are truly passionate about thier company and very proud of thier products.

On the other hand...as we all know...WAF can often results in a performance compromise. I don't really care if they want to compete with a Bose boutique in a mall as lonf as they maintain the high-end product line and outstanding customer service.

And the first step to recovery is admitting your an Audiophile!

 

[nsgarch]

Craig, please listen to the clip (longer than twenty seconds BTW, and in his own words) and then tell me Mr. Lyons isn't a hotshot marketer!

 

[Audioseduction]

In this statement is he calling our ML's clumsy or cumbersome?

“If we can build speakers that go in the wall and disappear, or can blend in with the decor, or can give them quite a number of decorating solutions that are not clumsy or cumbersome or dominating in the space, then I think that’s something we should do,”

 

[Craig]

The entire interview is exactly 1 minute and 18 seconds. In that time he gives 3 very short answers to 3 simple questions. He's representing a company in a public forum and answers professionally just as any other company president would be expected to do in that situation. Yes they sound very much like canned statements but that is typical business practice.

For me that is not enough information to make a character judgement about someone I know nothing about. That's also not enough info for me to think the company is now going down the tubes and therefore I should sell my speakers.

I have a high opinion of ML based on my years of personal experience with many of thier products that I have purchased with my own money, excellent customer service received and from visiting the company in person. They took a lot of time out thier work day to accomodate us.

If they suddenly change thier focus too much on catering to a womens eye at the expense of performance then I would be concerned. I'm confident the dedicated employees at ML will advise thier new president wisely and I hope thier new president is smart and experienced enough to listen to the advice of those long-term employees who have made ML the success it is today.

That's all I'm saying.

 

[sleepysurf]

I think the upcoming Clarity, Purity, and Motif clearly reflect ML's trend to focus on the mid/high-fi market, offering unique products at a lower price point. There's NOTHING fundamentally wrong with that, as it introduces an entirely new customer demographic to the electrostatic sound. Hopefully, those new customers, like us, will eventually want to upgrade to even better ML speakers as time goes on. I view this as a POSITIVE, since a BROADER customer base ultimately should provide more profits to continue investing in the higher-end. Even if they really just want to move high volumes of cheaper asian-manufactured products, focusing SOLELY on the mid-fi level, at least WE will have high-quality "vintage" ML designs which will command higher resale value!

 

[sleepysurf]

BTW, welcome to the forum Keith. I presume you work at ML. Would certainly be interesting to hear the water cooler conversation these days at ML. I sure hope the employees don't feel their jobs might be in jeopardy.

 

[amey01]

Craig, please listen to the clip (longer than twenty seconds BTW, and in his own words) and then tell me Mr. Lyons isn't a hotshot marketer!

The probelm with a lot of these "hotshots" is that they're career focused. I'm making a gross generalisation here, but all too often I see people come in to an organisation with the sole purpose of "building" their resumé in the shortest time possible so they can move on to the next higher-paying gig.

These people do not care for the overall good of the organisation - they just want to put words to the effect of "raised revenue by 63% in two years" on their resumé and then move to a higher paying job where they can repeat the crap.

I hope this guy isn't one of those. I'm certainly not saying he is or isn't.

 

[Keith]

No, I don't work there. I had a connection to them a few years ago when Gayle was still in charge, but these days I just hear from friends of friends who work there. I will say IMHO that everything they have done these last few years to grow the brand has been the right thing to do. Someone in the thread above said the company has to grow a little each year just to stay in place and they were absolutely right. The sad truth is that there are more dollars to harvest in the mid range than at the high end, and having those dollars harvested makes it possible to keep the high end developing. I don't think they will kill off the high end, it remains the goal to be achieved. If someone can't afford a pair of Summits, well maybe they can buy a pair of Claritys and still tell everyone they have Martin Logans and how great they sound. Someone they tell may be able to buy a pair of Summits.....


Keith.

Rockin a pair of ReQuests, with a Cinema center. Forgive me, I have a pair of bose for my back channels. Used to be SL3's but the WAF was not good for our small living/listening room. Never should have sold those Scripts.

 

[MotorToad]

IMO, if expanding into WAF-friendly markets is a goal (and it must be into mid-fi if in-wall speakers are even mentioned), I'd rather see it done as a model line not fully integrated into the existing (and marvelous) electrostatics. Some sort of MartinLogan Jr. (I'm obviously not in marketing ) or another way to differentiate the new stuff from the main product. Maybe put a more obvious step between the Design and ESL lines. So long as the ESL line continues so I have something to go to when I'm ready to replace mine.

One thing I could not stand, though, is to have to qualify my MLs the way I have to qualify my dad's tube Fisher gear: "see back in the day before they became a purveyor of third-world-child-labor crap and sludge for profit, they were one of the most respected companies in the industry..."

 

[SundayNiagara]

It is my understanding that the new president is an audiophile.

 

[edwinr]

There's nothing to be concerned about. I would take these public statements as confirmation that "ML is doing VERY well, thankyou" to the extent that they now have the means to expand a little more into new markets. That's good.

When Gayle went down the path of creating the Summit and related products, he set the scene for all future ML products - making ML more relevant to current and future trends. So, in other words, we're already well into ML's strategy of making ML more consumer friendly.

The Summit, Vantage et al aren't so bad, are they? :bowdown:

 

[JonFo]

There are two ways of seeing this, as others have pointed out above.

My hope is that an expansion into the mid-market will generate the profits and cash-flow to sustain the inevitable peaks and valleys of the high-end line. While not privy to financial data, one can assume that when the financial markets are good, and the rich are making good money, that people are willing to blow >$10K on a pair of speakers. But when markets are down, then sales of these might dry up quickly. What’s needed is a steady flow from more modest lines to sustain the organization through those periods.
Also, increasing brand awareness is a plus. ML has excellent reputation, and a strong brand. This is huge equity that can be leveraged to penetrate new markets, and to add to the potential pool of high-end purchasers.

I would say this is somewhat like Apple, who has excellent brand recognition, entering the consumer electronics arena with the iPod. Everyone asked themselves what the heck a computer company was doing in that space, but as we’ve seen, it turned out OK
Even sales of the Mac computers are at all time highs.

The market share for Apple as whole is still quite small, but then, they don’t care about share, they care about creating great products .
As long as Martin Logan continues to create great products, I’ll be behind them cheering them on.

 

[tonyc]

Hey that is me! They told us in Lawrence that the Summit has been their most successful speaker in recent years. I just can't see them cutting off their nose just to spite their face!

 

[attyonline]

I have a full five channel system of ML products and love them, but I am also somewhat pessimistic by nature. High end audio is not a growth area in terms of profits, so it seems it is not likely ML will turn into a huge seller w/o selling cheap speakers at low prices. I cannot think of a great high end company that was bought out by a big corporation or buying group that ever reached its high end achievments again. Maybe someone can and that will give me some hope. The pessimistic view is that cheaper and cheaper models come out with all production eventually shifted to Asia and the end of the glory days of the marque. I hope I am wrong.