Business
Medgen CEO outlines future strategies in letter to shareholders
Medgen CEO outlines future strategies in letter to shareholders.
About this update from Medgen Inc
[{"type":"text","content":"From the Chief Executive Officer\n\nSince 1996 Medgen, Inc (MDIN) has gone through periods of tremendous prosperity and lengthy stagnation. In this letter, I will discuss the sections listed below and elaborate on some of the opportunities that will make MDIN great again. \n\nI. We have an outstanding company- we’ve been here and are here to stay.\n\nIf you think back over the past decade or two many big brand health nutrition companies have come and gone. Since 1996, Medgen, Inc. (MDIN) has been able to not only survive but also push forward towards a brighter future. As with every industry, ours is not immune to the cyclical nature of business and we’ve had our fair share of ups and downs. Here is why we won’t fall to the wayside like others…\n\nAs a company, Medgen is in possession of some excellent brands within the supplement industry. The greatest that comes to mind is SNORenz®. When was the last time you encountered someone who hasn’t heard the name or recognized it from television advertisements or from its prime years where it dominated almost every big box retailer? The brand isn’t only recognized domestically but internationally as well. Add to that, the fact that MDIN has generated over ten (10) million dollars in revenue on that one product alone, which often made up 60% to 80% of the company’s annual revenue. The control of such a brand provides great advantages. For the purposes of this letter, I’d like to specifically reference the cost of customer acquisition (CAC) in establishing why MDIN is such an outstanding company.\n\nMany of the largest brands out there are raising millions, in some cases billions in order to acquire customers. Why is the CAC so high? Customer risk aversion. If a consumer does not recognize a brand they are highly unlikely to purchase their product due to lack of familiarity. It’s difficult to convince a customer to change from one brand to anther. Since 1996, our products have been building familiarity among our target demographic. We have engaged these customers through various means including TV, Internet, and physical retailers. In addition, due to our highly diverse product offerings we can expect our customer lifetime value (LCV) to be higher. Our LCV is also higher because many of our customers become repeat customers. We have products that fulfill various needs and are workin...