Sun's $50 Million Extreme Makeover

Realizing that its public image is not where it needs to be, Sun on Wednesday will start a $50 million ad campaign to rework its corporate brand. In comparison, the company only spent $14 million for advertising during 2004. The campaign will contain outdoor, print and online ads that highlight the concept of "sharing."

The sharing concept refers to using computer networks to do tasks such as buying a car, shopping online or keeping up with the latest sports scores. In order to drive the point home, Sun will use advertising themed on its partnerships with companies such as General Motors, eBay and Major League Baseball.

Sun will also sport a new simple S-curve logo, which it will launch on June 1. The company hopes that the rebranding will give Sun a softer image and a refocus to help it regain lost market share to rival companies.

Sun was hard hit by the tech downturn, as two of its key businesses -- telecom and financial services -- were part of the hardest hit industries. Even as recent as last quarter, Sun was still losing money - although at a much lesser pace than last year. Sun posted a $3 million loss for the quarter, down sharply from a $760 million loss a year earlier.

Ironically, Sun is hoping its new marketing campaign will succeed by de-emphasizing what the company actually does. Focus groups have said that references to General Motors and eBay creative a positive image of Sun, even if they do not understand what Sun's business encompasses.

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