Just a thought !2 Apr 2021 11:08
I have a family business selling tourist items / tickets / across London mainly and to some international incoming tourist company's. I normally have between 150 - 200 outlets each year that sell my products ( range from pubs, tourist shops, museums, tour company's, hotels, bookshop etc etc ). As you can imagine its been a difficult year, and I have had a lot of time on my hands.
I'm sure you ll know about the old business rule called the 80-20% rule of business (Pareto Principle).
Over the past twenty years I quickly realised that this rule applied to my revenue. I consistently took around 70/ 80% of all my revenue from around 20% of my customers and the rest were steady, reliable, smaller sales.
The 20% of outlets that produced 80% of revenue were all in high foot fall areas, OR museums, bookshops , Pubs that had a connection to products I was selling.
Zoetic will be rolling out to the first 10,000 of its stores initially. This from the RNS 15th February 2021 they state
Asian American Trading Associations Council ('AATAC')
"The rollout of Zoetic's Chill brand of tobacco alternative products has now commenced across the AATAC's national convenience store distribution network. Leveraging dedicated shelf space, our products will take prime position within an initial 10,000 stores committed during the 'Prepare for Lift Off' phase. In conjunction with the sage advice of the AATAC's distribution experts, the Group's focus during this time will be on determining favourable geographic targets whilst gathering the data needed to optimise continued rollout operations. Initial product shipments are anticipated in the coming weeks, with the programme's early requirements set to be satisfied with existing inventory and available funds. With initial test markets set to span from New York to California, these key strategic geographies will inform our wider strategy, enhance brand recognition, and allow us to execute a mass market rollout that is repeatable and scalable."
These guys have far more experience than me, and will know that to to fast track excellent revenues, and impress the market they will need to go for the best locations first - rather than take chance and just put product in the first 10,000 on list.
If I were directing this roll out I would have approached the top selling outlets across the USA initially to get 10,000 of the best sales sites on board initially. Why? The publicity from the massive ramp up in sales and revenue in the first six - nine months ( would only reinforce the notion that this is a best selling product ( which it may be). If the product cant shift at best sites, it wont shift anywhere else!
This will accelerate the company, and the remaining 80% of lower performing outlets ( which are also important) can be picked up on the back of the profits made by first 20% over next three years or so.
https://www.sharesmagazine.co.uk/news/market/LSE20210215070007_3878
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