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Monday, 06/28/2010 4:21:08 PM

Monday, June 28, 2010 4:21:08 PM

Post# of 241034
Hello Moderator Team - DRTV update

From: Eric Lehner [mailto:eric@winningbrands.ca]
Sent: Monday, June 28, 2010 4:13 PM
To: Paul Knopick (pknopick@pacbell.net)
Subject: RE: WNBD: DRTV update

Hello Moderator Team,

We are regrouping to prepare the next commercial in our presentation strategy for Winning Colours on DRTV. This is because the first (short) round of commercials did not yet achieve self-sufficiency in its media-efficiency-ratio. From the outset, there were several creative opportunities as to who the target audience was (conventional thinking: women, with emphasis on laundry. You can’t ignore convention – it’s there for a reason.) However there have always been parallel streams of thought about the positioning, with entirely different stain types, target demographics and approaches. Even the media strategy has several possibilities. One approach would be to throw all available cash at expensive high viewership networks on rotation, with the drawback of having low frequency of airings. The alternative is to be prudent with resources and focus on lower viewership networks initially and build momentum, rising in the hierarchy of programs gradually. A third approach is to select certain specific suitable programs and be there because of the repeated viewing by their loyal audience. It should be remembered that what works in DRTV does not always follow the same formula as regular advertising. So we have to be careful not to apply our personal biases to the art/science of this medium. Therefore, what Winning Brands is doing with DRTV in 2010 is systematically going through these basic considerations and approaches, one by one in order to find the best way to convey the unique characteristics of Winning Colours Stain Remover to the DRTV audience. One thing is for sure - Winning Colours Stain Remover is moving in one direction – forward. We are in our first DRTV pause currently, as we prepare for the next round. The level of Hawthorne’s appreciation for Winning Colours Stain Remover as a product is impressive. They believe in this product and like it very much. Their exact words in recent correspondence are: “…we will do whatever it takes to get this spot right and to make sure that you are happy with it…”

If I were determined to find disappointment in the first go around, it would be to say that it was not a “home run” with the first batter at the plate. “Home run” would equate to the first commercial being self-sufficient with no changes. But we all know that you can still win the ball game without starting the game with a home run. On the positive side we have new customers in most U.S. states from whom we can learn a great deal about their initial experiences with Winning Colours. They are all being written to now to begin a feedback cycle and fine tune our understanding of who is buying and why. A commercial printer is preparing the correspondence at the moment. Product has been sold and delivered to the following states: Alaska, Alabama, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, North Carolina, New jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin. There is interest in Hawaii, but the shipping cost is too high at the moment for the kit. States not yet delivered to: Montana, Nebraska, New Hampshire, West Virginia, Wyoming and the Dakota’s. For competitive reasons we would prefer to not to get into specifics on quantity yet, but more information will be forthcoming in due course.

In summary, it is far too soon to assess the long term contribution of DRTV to Winning Brands, but our primary partners, Hawthorne with all their experience, are enthusiastic for the prospects of this product in America and want to apply the next round of adjustments in order to advance toward a self-sufficient DRTV campaign.

Rgds,
Eric Lehner, CEO
WinningBrands.com

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