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Pricing and Profitability.
Pricing is tied to the philosophy of
operating at a break even basis. However, because of both the past
losses incurred in the giveaways, and the capital payment outlined
in this plan, we will increase our pricing in order to retire the newly
incurred expenditures.
Selling Tactics.
Consistent with previous years, publicity outlin-
ing new merchandising concepts is utilized extensively to generate
paid advertising participation from retailers and shopping centers
world wide. This has worked well, and there are no plans to change
this strategy.
Distribution.
Central pre-distribution centers have now been
established in each country. This concept permits faster delivery,
without the need to return to the North Pole each time the sleigh
needs restocking. This is the most cost effective procedure imple-
mented in the last years.
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