Ann: Quarterly Activities Report and Appendix 4C, page-53

Marketing was extremely inefficient as of late. More marketing won't help at a time of low market interest. It would only help to burn money.

Sure, marketing is necessary, but not necessarily scaled up marketing at all times.


More efficiency would help though. Even if it just helps to accumulate cash while biding their time, waiting on increased market interest.

It's a hard decision what to do about the undercutting competitors though.

I think they're focusing on adding revenue streams at the moment, which seems reasonable. Having a higher revenue per user would make the marketing cost have a higher ROI, so what is extremely inefficient marketing now, might change to regularly inefficient. And when market interest turns, what is moderately efficient, might change to be very efficient.

While more revenue streams would help the company, and boost ROI on marketing, it wouldn't answer the questions of competitor undercutting.

To answer that question (to avoid losing market share), I think demands one of: lowering price, or improving services.

- Lowering price would retain more users, at a significant cost, but particularly the budget users, who are less valuable. So it's hard to justify that option.
- Improving services would be nice, if they're capable. Making users forget about any price differences, and increasing the chances of clients promoting the company by word of mouth. Lately on social media, people stopped mentioning SWF much. Usually it was Stake and IB, mainly due to pricing.