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  4. Hangover Joe's Holding Corporation (HJOE) Message Board

"the company must start a marketing campaign to su

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Post# of 15187
Posted On: 01/26/2016 2:59:41 PM
Posted By: thesmalls
Re: X10 #2240
"the company must start a marketing campaign to sustain growth at some point. For a beverage company trying to build, marketing and public brand recognition will and will always be the make or break"

Agreed but the company is simply not there from a cash positon. Minimumit would be $500K to do anything worthwhile as a start for national campaign (via TV/radio). But there is no sense in doing that until they have product coverage. They cant do that without distribution and that takes brand turnover. Chicken and egg. That is where the SMS model fits well. The dealers build the brand while building their business. Eventually when they have top 100 markets covered and product placed several things happen: public awareness is increased to the point larger retailers will want to stock product; revenues will have increased to provide cash flow to do larger scale advertising without putting production at risk, and substantially attractive financing will become much easier to find.

With current dealer success - they have to be getting close to getting more attractive financing as it becomes clearer that the brands resonate and dealers are moving product. That would not only allow further expansion but also help retire remaining debt and possibly buy some stock back if it is still at these levels. $250K of several $MM could retire a lot of shares at this level.

As far as store locator - I spoke with several Walgreen locatons in NOLA and several were hassled big time by callers and I was told the same happened to the SMS folks when that deal was announced. So - why do a store locator if they are going to be doing a disservice t9 their customers? The stores can be found now but it takes a lot more work to do so than by providing a comprehensive list. The dealer network is a slower build out but it should be a much stronger one as the onus is on the dealer to build the brand/business instead of a large distributor rep with hundreds of products in their portfolio.





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