EdenPlast “proprietary product” distribution strategy

Not only must all Eden’sproducts be great, they also have to be sold in a way that quickly grows the “user”base, which in turn helps to produce compounding “user” growth. And all this inthe most cost-effective way possible.

In the case of selling EdenCrete,Eden is now obviously using two customer acquisition channels, i.e. a traditional“direct” distribution, as well as a “proprietary product”distribution model. In my opinion, only a combination of both channels willallow Eden to become hugely successful with all of their products.

Whilst, in terms of actualsales volume, the traditional “direct” distribution channel may be the more successfulstrategy for EdenCrete, I certainly would not underestimate the power of the “proprietaryproduct” distribution channel method.

In the case of selling EdenPlast related products, as opposed to selling EdenCrete,I see things very differently. In my opinion, one of the best ways to make EdenPlasthugely successful is to build and control a large number of “proprietary product” distribution channels. In fact, Ibelieve that this is almost a strategic imperative for Eden, in order to allow theeach of the various EdenPlast related products to reach industrial scale.

We all know that “direct”distribution is capital, sales staff, and time intensive, therefore, if I wasEden, I would strongly suggest that they avoid trying to sell these new EdenPlastrelated products themselves.

Every new EdenPlastrelated product, like EdenPlast PP Tape, has nothing to do at all with theconcrete industry. Therefore, quite possibly, Eden will have to build a wholenew team of sales/industry specialists. I would avoid doing this at all costs! IfI was Eden, I would be selling EdenPlast PP Tape and all other future EdenPlastrelated products via “proprietary product” distribution and/or other types oflicencing arrangements.

I believe that Eden wouldbe far better served by just developing new EdenPlast related mixes in theirown lab, and then trialling and selling these mixes as "proprietary” mixesto companies who are already specialists in their own specific industry sector.This can be undertaken under strict “proprietary product”distribution or other types licencing arrangements. In this regard, Eden's"patent" announcement from last Friday, will allow Eden to enter intosuch “proprietary product” or other types of licencingarrangements” with far greater vigour and with substantially more confidenceand added security.

Such a “proprietary product”distribution model, will not only reduce the cost of customer acquisition, itis a customer acquisition method that will remain under the control of Eden.

From an R&D perspective,by primarily concentrating on just developing new mixes in their own lab, Edenwill also be able to release far more EdenPlast related products onto the market.

Eden has recentlyindicated that they have already been successful selling EdenCrete to ready mix companies on a "proprietary” mix basis,and that they also expect a steady increase in their number, both in Colorado, aswell as in the rest of the US. Therefore, I can well imagine Eden adopting a “proprietaryproduct” distribution strategy when it comes time to selling EdenPlast PP Tape and other future EdenPlast relatedproducts.

Eden’s business mustnow grow very rapidly. Therefore, a “proprietary product” distribution strategyshould be just the shot for Eden and EdenCrete, and perhaps very much so for EdenPlastPP Tape and other future EdenPlast related products

Having said this, customersare getting more and more expensive to acquire. Therefore, Eden must also ensurethat its customer acquisition costs drop over time. If its customer acquisitioncosts stay high, or indeed increase over time, this will not be good news.