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Old 04-02-2008, 01:32 PM
  #34  
TomBlaze
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Join Date: Mar 2008
Posts: 115
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Oh I had an afterthought about consolidation. I really do see the points that were made about team loyalty. Another way to promote the product would be to parter with the larger electronics giants like Best Buy or Circuit City.

As an example, lets say Schumacher decides to aggressively market their upcoming Cat 4WD. They can easily broker a deal with a company like Best Buy to carry their product. Best Buy would most likely kick in for advertising and Schumacher would have their new Cat 4WD advertised in Best Buy's mailers as well as possibly get a spot on TV.

All the manufacturers can do this with Best Buy or any other electronics retail outlets. A possible side effect would be that smaller hobby shops could get choked on sales, but then again hobby shops would have something that the large retail stores don't - tracks. They can focus less on product and more on track building and running events and have them sponsored by the large chains keeping cost at bay as it would be in the interest of these businesses to promote the products they carry. One way or another there can be a happy medium found. Drivers could start getting sponsored by these franchises as well increasing income potential for the sport and eventually bringing national and international events to TV.

I actually like this idea better than consolidation though I think consolidation is still a viable options for those companies that just resell other companies products under a different name.
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