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Biotech / Medical : GUMM - Eliminate the Common Cold
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To: Mark Marcellus who wrote (2221)2/8/2000 8:03:00 AM
From: DanZ  Read Replies (3) of 5582
 
Mark,

There's a logical answer to why Gum Tech just started advertising. They sold all the Zicam they made last quarter without advertising because the PR from the first study created more demand than supply. Many retailers sold out of Zicam and Gum Tech would have been foolish to advertise to create demand that couldn't be satisfied with the supply. Retailers then placed much larger reorders because they gained confidence in the product. This is one reason that I think Q1 sales are going to be much higher than some people have estimated. My current estimate is $15 million to $20 million in sales, which would about double last quarter's sales. They could have advertised more in December and January to create brand awareness, but they elected not to because there wasn't enough supply in the channel.

Regards,

Dan
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