alxndrhll
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- Apr 1, 2020
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I see, Being an individual that runs his own business I'd say these are all smart moves not to mention healthy investments that will garner a healthy return. The business model here seems more than stable. So I'm not totally understanding how there's much of a negative marketing to budget allocation ratio here. Unless you're eluding to the idea that they're incurring unnecessary costs that affect their profit by doing this or choosing not to allocate their finance in the essential areas? They themselves could be choosing to allocate finances where they feel beneficial to growth and neglect other aspects willingly, such as product packaging. That's kinda conservative and not a bad format
Nope, not at all implying it's a negative or stupid thing... not without evidence anyway. It's just a very Western approach to an predominantly Eastern dominanted market (at least to my knowledge).
The only part we could ever really question would be the return on investment (ROI) of their various marketing activities, which I doubt we'll ever know... and truthfully any publicly available numbers wouldn't reveal much. I've never owned a KWA RIF to speak for their quality first hand, most of what of seen is fairly positive in terms of OOTB performance with the main critiques being 'on the pricey side' (with CYMA going from strength to strength this'll start to be applied to everything), stock hop buckings aren't great (with the exception of Marui this extends to pretty much everything) and proprietary part(s) (this is just the tappet plate if memory serves)... none of these are unique to KWA so perhaps their allocation to marketing is what they're doing to separate themselves from the pack so to speak. Is it working? ?
I guess the reason I say 'obscene marketing budget' is very much a comparitive statement when compared to other companies in the same market. Generally speaking marketing budgets are allocated per project when it comes to the usual 'manufacture goods, sell goods' model, and RRPs tend to be chosen based on the margin after combining those costs... so I'd say it's safe to assume the end user is covering a portion of those costs in some way/shape/form (again, not unique to KWA... KWA just do more with marketing so that portion wouid likely be higher).
For reference of where this is all coming from, I design and develop board games for a living (on salary for a company, not as a freelancer) part of that job includes product development with some marketing input and juggling budgets etc. While aware there won't be an exact translation across markets I imagine it's much of a muchness, there's a pretty cookie cutter way businesses of a certain size are run these days. So yeah, not entirely plucking it out of my arse, I'm aware you didn't ask, but I figure some background might be useful to the conversation.
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