Patricia C. Trinchero (22284 )
From: REW
Saturday, Mar 27 1999 3:02PM ET
Reply # of 23619
*****PromoCard***Definition and Marketing*****
The PromoCard has an all together different function even though it is a derivation of the
My MusicCard. It has a 3 CD purchase capability and is primarily used as a corporate
promotional item. It's value might start out at about $1.50 but that figure is a starting
point in the corporate deal making.
Think about where and how the PromoCard can be utilized. It can be placed on the
back side of venue tickets and given with the purchase of entry. It can be printed on
consumer packaging to be cut out and utilized by the purchaser as a bonus for
purchasing the primary object. It can be placed in delivery material. It can be given with
subscription material. The list is endless especially if thought is put to products and
situations.
Once received the prospective customer must decide to call by phone or internet and
activate the PromoCard or discard it. Once activated the customer has the right to
purchase 3 CDs at My MusicCard discounted prices. Once the 3 CDs have been
purchased the customer then can reload to a My MusicCard. A reasonable percentage
do since they have now become accustomed to My MusicCard Co and their
competitive pricing and service.
Place a lot of thought into the revenue generated by corporate deals. If a nationwide
concern wants to promote their product with the PromoCard in a given quarter instead
of discounting their product price, they will need millions of PromoCards. These are
purchased up front so the Card can be afixed to the product at packaging. As the
success of the initial corporate deals become known there will be a never ending supply
of corporate customers and repeaters.
Think of the profit margin of the PromoCard to TSIG. A corporation needs 10,000,000
Cards for a promotion. Assume TSIG discounts half to $.75 each. That is a $7,500,000
committment payable possibly with 10% down and payable as the Cards are printed
and delivered.
10% are activated for 1,000,000 using customers with PromoCards. They buy 3 CDs
to generate over $3,000,000. 25% convert or purchase My MusicCards at $10 or
$2,500,000. They buy 20 CDs which generates over $5,000,000.
Not bad. A bunch of customers. A lot of money. No advertising. The corporation paid
TSIG for the privilege of obtaining My MusicCard Co customers.
This is very simplified and I hope understandable.
Bob |
