Regular readers will know I have a thing for Eric Sprott. Not in a religious sense (although I have read plenty of
religious-like fervor surrounding the man), just a fuzzy feeling knowing the guy is a brilliant marketer. Today's article celebrates Eric Sprott because the
recently released documents from the Sprott-based Palladium and Platinum funds give validation to other funds (a kind of reverse-zen thing).
Let's first talk about brand power. A few years ago our local supermarket recently started selling their own mobile SIM card - I remember being really surprised that they had launched their own carrier and for a little while I was awestruck by the power of their monopoly (which here in the antipodes includes not just grocery items but also key markets like petrol, hardware stores, etc). It wasn't until my internet service provider started offering their own mobile SIM cards that the penny finally dropped and a bit of investigation revealed that these 'brands' will piggy-back on the infrastructure of one of the major providers (for example iinet uses Optus), normally offering slightly different price packages. Bottom line it's the same service in different wrapping paper, but it's beneficial and convenient for all parties involved because it reduces overall cost and allows economies of scale while still retaining brand identity and (I presume) maximizing market share.
Let's first talk about brand power. A few years ago our local supermarket recently started selling their own mobile SIM card - I remember being really surprised that they had launched their own carrier and for a little while I was awestruck by the power of their monopoly (which here in the antipodes includes not just grocery items but also key markets like petrol, hardware stores, etc). It wasn't until my internet service provider started offering their own mobile SIM cards that the penny finally dropped and a bit of investigation revealed that these 'brands' will piggy-back on the infrastructure of one of the major providers (for example iinet uses Optus), normally offering slightly different price packages. Bottom line it's the same service in different wrapping paper, but it's beneficial and convenient for all parties involved because it reduces overall cost and allows economies of scale while still retaining brand identity and (I presume) maximizing market share.