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Skullcandy, Inc. Message Board

  • j.paron j.paron Sep 16, 2012 12:11 PM Flag

    Best Buy

    WHY, doesn't SKUL advertise in the Best Buy Sunday ads. Everyone else does..

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    • Print advertising has an extremely low return on investment these days. The highest return on investment for skul is point of sale advertising and in particularly for the audio category having a audiostation in store so potential customers can hear the quality of each headset. Skul has been investing in audio stations (as per highlighted in the last earnings conference call) . I've investigated this area and Audio stations can increase store sales for the brand by up to 30%.

      • 1 Reply to staffordo3
      • SKUL is not a headphone/accessory company. Skullcandy is a MARKETING company. They take a relatively decent product, made in China no doubt, and have figured out a way to sell it at fantastical margins unheard of in their industry.

        I think their advertising/marketing executives know EXACTLY what they are doing :)

        Disclosure: Long SKUL (bought in at 15.80)

        Sentiment: Strong Buy

    • JP,

      I would assume IMP, that they are selling accessories and Best Buy probably charges a fee for those adds. Also, those adds are for discounted and specials and SKUL doesn't discount at Best Buy - Full Retail

      Also, SKUL marketing strategy is not heavy into advertising. They sponsor events, utilize celeboraty figures and "Utilize organic home grown word of mouth"...

      I often think it would be nice to see them on a few TV adds, but then again, their marketing dollars go to special events, giveaways etc. it has worked so far.

      One thing I learned in business school is you formulate your marketing plan and the market you are going to try to capture and STICK WITH IT. Companies go bust when they get away from their plan.

      Just my thoughts...

      Sentiment: Strong Buy

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