The H20 Audio Analysis

1. H20 has grown rapidly on being focused.  Kristian needs to shift gears now and realize that the message and the product all changes when it becomes a “stuff the shelves” strategy.

2. Radio Shack is big time.  I wouldn’t be mentioning Best Buy in the same breath.

How H20 Can Become a Major Brand

1. It ain’t over til the fat lady sings.  Very few products ever get to discussions with big retailers and a smaller few ever get selected.   Radio Shack said it is willing to do the deal, but Kristian needs to still tackle the terms. The discussions that go on after CES are really going to be the make or break for this opportunity.

2. The game has changed.  When Kristian is talking with Radio Shack he must talk to their needs and not preempt it with the end consumer’s needs.  And he better never, ever imply to Radio Shack that they are a stepping stone to Best Buy.  This deal better be a win for Radio Shack, or it will be a loss for H20.

3. It isn’t about surfers any more.  Now that Kristian’s products are going on the shelves at Radio Shack, the consumer has changed.  I mean, how many surfers hang out at Radio Shack?  Kristian better heed Radio Shack’s direction and supply a product that serves the needs of a Radio Shack consumer, not extreme sports.

The H20 Audio Bottom Line

Welcome to the big time!  This is one of the most challenging stages of business growth, so H20 better proceed carefully.  As they convert from an extreme sport focus to a big time retail shelf focus they run two major risks.  First, the extreme sports consumers may see H20 as “selling out.”  Second, Radio Shack will need flexibility and adjustments to their needs.  If H20 can navigate these turbulent seas, they may just become a household name.

For more on H2O Audio's story, check out Kristian's profile

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