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PROFILES
Welcome to our comprehensive profile on Spongetech Delivery Systems, Inc.
(OTCBB: SPNG)
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MARKETING & COMPETITION
They have expanded the sales and marketing of their existing product lines and began airing a new commercial for the Auto Wash & Wax system in mid February 2008. The commercial is running on a variety of cable and satellite channels and is expected to run through February 2010. They have also entered into an agreement to produce a new commercial, at a cost of $35,000, for the Pet Sponge Care Kit. Upon completion of the commercial they anticipate the commercial will run on a variety of cable and satellite channels through June 2010.
They have entered into the following arrangements or activities to promote their products:
They have committed to donate a percentage of their children’s bath sponge, Puddle Pals, revenue to The Darryl Strawberry Foundation, an organization that is dedicated to bringing global awareness to autism and other developmental disorders.
They entered into an agreement with the New York Yankees on March 25, 2008 pursuant to which they were granted a license to display certain advertising in Yankee stadium and make certain other commercial arrangements for the 2008 baseball season. They will hold a promotional day at Yankee Stadium on July 28, 2008 and will distribute a keychain to commemorate the final season at the old Yankee Stadium to the first 18,000 fans under 14 in attendance or 21 and over. Preceding the game, they will be mentioned on radio and television. Their name will be spotlighted in each of the ten games played preceding Promotional Day, and they will also have a Diamond Vision video spot in the Stadium. An on-field ceremony will be held to express thanks to SpongeTech ® . Their sponsorship will be published in Yankees Magazine . For the 2008 season sponsorship, they have a Diorama advertisement and two Highway Marquee Clock advertisements on the Major Deegan Highway. The term of the agreement commenced on March 31, 2008 and will continue through November 1, 2008.
On March 31, 2008, they entered into a consulting agreement with Straw Marketing and Darryl Strawberry. Pursuant to the terms of the agreement, Darryl Strawberry agreed to make promotional appearances on behalf of the Company, coordinate promotional appearances with the New York Yankees and New York Mets, and introduce the Compan to promotional opportunities with MLB.
On April 8, 2008, their Auto Care products, including their "Smart Sponge," with wash and wax imbedded inside, as well as the Detail Sponge and Chamois, were featured during QVC’s “Keep It Clean” broadcast.
On April 11, 2008, they entered into an agreement with the New York Mets for certain advertising rights during the 2008 baseball season. Pursuant to the terms of the Agreement they received the right to have signage appear in left and right field during three full innings of each game.
Competition
The market for consumer products is highly competitive. They compete with international, national and local manufacturers and distributors of soaps, detergents, waxes, sponges, cloths and other automotive, household and bath products. Indirectly, in the automotive product area, they compete with drive-through car washes. Their competition, for the most part, has brand recognition and large marketing and advertising budgets. They face major multinational competition in their proposed household and children's bath sponges. Although their product is unique and patented, they cannot predict its acceptance in any of the marketplaces for which it is designed.
They compete on the basis of the uniqueness of their sponge, which combines efficiency and effectiveness compared to other vehicular cleaning products. Their product avoids the preparation and clean-up of using sponges, liquid soaps and pails of water. It also avoids the mess and limited storage life of traditional liquid and paste waxes. In addition, their cleaning and wax product is much easier to apply and does not have to be buffed. Their sponge which combines soap and wax is considerable cheaper than the purchase of the individual cleaning and application products, and their cleaning product is less expensive than the cost of a sponge and liquid detergent. |
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