I would assume they completed extensive modelling around distribution methods.
They went down the right path first - new product with unknown market potential so keep margins up, control distribution and test volume. Easier to reduce margins and leverage off retailers strength first but if it went ballistic then we would have missed the margin opportunity.
Not to be. So next test is volume/lower margin. Only risk then is volume remains low, but that would confirm no mass product/market demand and it would be written down.
Personally would like to see marketing dollars spent on a global football figure front and centre for Playr. Distribution across all major retailers, straight to consumer. With features like squad, first up customers will become referral agents to team/friends.
Retail is not our core business so keep costs tight, focus on R&D etc and let retailers sell our consumer product for less margin on mass.
Playr should be cream.
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