Quote: (alansa @ Dec. 16 2009, 12:26 )
Well I agree with Mr Kirkby on those points quoted.
Yeah, he's pretty much got it. I might quibble on some small points (e.g. there is price sensitivity if there is a competing, similar quality product in the market), but overall it's on point.
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Never-the-less it would seem GW are not nearly properly practising what Kirby is preaching.
Ding, ding, ding! That's the problem.
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Back to epic, what is the point in having two products for the same market (sci-fi miniatures market) when one the cost of ownership is less if you only have one. Hence no investment (keep the cost of ownership down) and no promotion (to keep the epic and 40k markets separate). It's a niche market within a niche market and it's in GW's interest to keep it that way. The depressing fact is, epic fans, is that Epic can't be allowed to make a huge amount of money, even if it has the potential to do so because it's just sharing the overall pot with 40k.
I don't necessarily agree with all of this. The philosophy of SG when it was started was for it to be an adjunct to the "The Hobby" of the core games. It was to provide additional depth and, for most of the games, maturity to the universe. It was not supposed to cannibalize their core market but keep people in The Hobby longer.
Thinking about it like that I don't think it's entirely "the same market" but even assuming it is, the point of having multiple products in the same market is to increase overall market share. As Kirby notes, word of mouth is better than any advertising. Having dominant market share means you own most of the word of mouth. That's a self-reinforcing cycle. Market share = free promotion = more market share (or at least safer maintenance of the market share).
If you can make $X with 20% of the market, or $X with 40% of the market, having 40% is better even if you make no more profit. The Return on Investment might be lower (how much lower depends on how synergistic the line development can be), but even if ROI is lower the long-term stability of a market share approach is better than a short term ROI approach.
Now... maybe I'm wrong. Maybe the market research gurus at GW have come to the conclusion that the SG lines really do "cannibalize" from 40K and WFB. Or maybe people who would otherwise migrate to SG would stick with the core lines if SG weren't available, at least long enough for GW to make the same profit off of the higher margin core products.