Hi Art
Positives of this is that
1 it uses up stock of old characters they possible had in inventory.
2 New team is are trying something
3 hope they have learnt prior lessons
4 cheap to do as no new creation required
Risks
Just how many collectors are there ? Have they seriously researched who i buying their product that or just having a punt.
Below - just some infor on how retail can work and promotions.
Supply stuffing
measurement of internet interactions
Actual sales and real discounts for promotion.
Reality - there isn't that many Yowie collectors and it only relates to their introduction a few years ago. Collectables reply on series not being re-released otherwise there is a constant flow allowing people to collect slowly. Yes there is a 12 week urgency but unless they can market to their new audience and who were not around xx years ago it will just be sales as normal.
Yowie have IMO had a history of their marketing and promotions costing far more than their actual immediate resulting sale and / or traffic to websites. All OK if you expand you retail base and they continue to buy and interact but that ha snot been the result of many past campaigns IMO. Retailers are also wary of short period promotions and run down stock before hand and then are often offered special promo placement fee or discount purchase pricing to have news stock on shelves at a certain date.
All I am saying is be a little wary of YOW promotions as history IMO hasn't shown huge sucess so this is a great test for basically a whole new team and promotions. As a holder you will probably not be given enough info by YOW management to know if it has really been a sucess instantly and with promotions , rebates, returns , discounted left over stock etc quite easy for management to try and paint a rosy picture pre 30 June a sit effectively is stuffing your supply lines. It could be seen as a great promotion if successful or a desperate move to hold shelf space by
company waiting to get good sales numbers and on sell business. It is the cost of those sales that matters and if there is ongoing increase in demand for product ( eating and collecting) and especially interaction at website .
Numbers given by YOW IMO about their interactions online where either not accurate in the way they were portrayed or in their interpretation as massive perceived increases in supposed activity didn't seem to result in interest in product resulting in actual sales. Previous promotions didn't IMO get lots of traction and charitable style and partnerships I don't believe led to a lot of sell through. Pretty amazing considering the $ they IMO spend. hopefully a newer team and different advice will drive some sales
None of the above is only related to YOW it is any manufacturer accessing retail but what shareholders need is accurate consistent honest reporting with a bit more detail so they can see if YOW management and promotions are really growing the business as IMO it needs scale.
I wish them well and especially shareholders but ask management for the way they are measuring results of promotions and ask for exact sales numbers and returns /discounts in regards of the series and clear measurement of interactions on internet.
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