The discussion seems to revolve around P&G, Olay and SKll
If the discussion in the market place was about P&G, Olay, SKll and the fantastic new OBJ high tech magnetic wand applicator, with all its benefits - then OBJ has negotiating power when it comes to royalities.
Now P&G are saying, hey we spent all the millions upon millions up front developing and marketing the product and took all the risk................your royalities will be .
imo the OBJ management lost control of their financial destiny by becoming too closely aligned with P&G. If they had raised funds in the early stages of development and created their own cosmetic applicator/Wand and gone to the market place, then the total cosmetic market was their oyster.
Sure they will get a royality stream from P&G, but it will be measured. More than likely P&G have also stitched them up legally in terms of using the wand development with any other organisation.
One certainly about the cosmetic industry is CHANGE.
There is always a new marketing angle to create the illusion that a face cream will make you look beautiful. Considering the human being is about 60% water, the best treatment for ones skin is to keep well and truly hydrated every day along with controlled exposure to the direct rays of the sun.
So, what is the current life cycle of the wand and the associated millions spent on marketing. The P&G number crunches will know what they expect and are probably already looking at the next marketing add on - mayb cannabinoids etc.
The wand will have a life but the key is how long and how do you handle this investment in OBJ to make a buck.
I really do hope all those invested make a great return on their money - for me, I will watch from the sidelines.
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