Hi Brushup
Agree in part, I recall using 5 year life cycles for brands and with the heavy investment strategies and the final 3 years planned being cashcow time.
But I think we all know the royalty rate will be small.
It will be interesting to figure out which path the negotiation went for the license. Did they get a marketing % or flat fee reducing the royalty or are all costs deducted (hopefully with a cap)
When it comes to price reaction, I think if history is a guide, pre the original license when we all got excited it went from 3ish to 9c then some months later it jumped on product launch. (also we had the coty and GSK potential coming).
Then we found out it was a trial and price retreated.
2 years later we are about to be at the same point again, but this time with 2 licences (both a wand) at least. So I expect a jump on signing with a product launch some months later to give it another boost.
I am not expecting to see these prices again unless the product fails in the market place
time will tell
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