An ICO is a financial tool for blockchain companies, but nowadays, some of the highly innovative companies that have crowd favorite products are using it as a marketing tool by offering tokenized securities. It is recommended to make the token more like the product rather than the company. A strategy used by some companies is to provide a share of the company and a piece of its profit through the use of ICO.
The same strategy can be applied in the case of the traditional companies. Since they already started production and determined their target audience, their next goal is to increase the sales. An effective strategy would be to use ICO and offer discounts for their products. The company could sell their tokens at 5-10% of the suggested retail price and offer 50% discount to token holders. For instance, if the product is at $100, the token would cost $5-10 while token holders could purchase the product at $50.
Although there is a markdown in prices, it is healthy because profit is still secured and the company will no longer need to undergo escrow because it has already established its concept and trustworthiness. The earnings can be reinvested to market globally and promote ICO itself.
ICO will focus on the product, but attention will gradually come back to the company and resources to expand and innovate both new and existing products. This move can efficiently contribute to the publicity of the company and result to increase in demand, market widening, and big media pushes. Moreover, it can also be a way to have new strategic partnerships and growth.
When the use of ICO as a marketing tool is maximized, it can surely bring enormous benefits to businesses. Although the outcome may not be directed to Blockchain, it is targeted to be an instrument in marketing and gaining the attention of media.
Traditional companies are encouraged to adopt such ICO practices because it is projected to become a part of the whole economy and it will enable them to interact with crypto economies.