4. What is SkrAtch™ ?

     (ticker symbol SKRH)

4. (b) (ticker symbol SKRM)

SkrAtch™ is the line Extension based upon its successful game which sold 3 million units in 5 countries at $5.95 USD with a Gross Profit of $18 million entered the prototype stage  in 2005 and developed web presence in 2018 with aspirations to launch as a Token in 2021 during the previous Bitcoin Halving and cryptocurrency Bull run.

SkrAtch™ is now positioned to be listed on exchanges during the next Bull run in March — April 2024. 3 billion Tokens titled SKRACHIT will be offered under the ticker symbol SKRH at $0.15 and a Presale will be held in mid-January 2024 with 30 billion Tokens titled SKRATCHME offered under the symbol SKRM at $0.001.

SkrAtch™, with the ticker symbol SKRM, is a robust platform that seamlessly integrates analytics, online and retail brand promotion, and offers consumers free product sampling both online and in retail at a minimal cost. It's not just about products; it's about delivering value.

SkrAtch™ also optimizes manufacturer advertising with highly cost-effective Cost Per Thousand (CPM) rates, ensuring that your marketing budget goes further.

But that's not all. We provide a comprehensive turnkey service, overseeing the entire supply chain, including product launches and new line extensions.

Our relationship with additional blockchain resource providers like VeChain (ticker symbol VET) guarantee streamlined administration, immutable tracking throughout the product life cycle, reduced slotting or listing fees, and maintaining a prominent shelf position for the manufacturer's product.

This results in monetary benefits for the retailer and provides free products for consumers, available for pickup at the retail outlet, ensuring transparency and trust in the entire process.

In summary, participating in our platform gets your product on the shelf at a prominent position, for example, at eye level, and we strive to maintain that position, reducing the risk of being delisted.

We offer a solution for the 50,000 new products representing 90% of new products introduced to retail, only to be delisted.

In addition to our partnerships with Electroneum (ticker symbol ETN) and Ripple (ticker symbol XRP), consumers can make point-of-sale smartphone purchases at minimal costs, with transaction completion details available within 5 seconds.

Furthermore, we provide a unique value-added service where your participation in our product ecosystem can genuinely pay for itself. It's a mutually beneficial arrangement for both businesses and consumers. Join us today and unlock the full potential of SkrAtch™!

SkrAtch™ serves a multifaceted role beyond being a consumer game product available in supermarkets and retail outlets. It operates as a proprietary Advertising Vehicle that enhances brand awareness, offers real-time Analytics, and harnesses QR Code, RFID, and UPC technologies. This comprehensive approach can significantly mitigate the high failure rate (90%) commonly experienced by manufacturers when launching 50 thousand new products annually.

In our Studies section, we provide free access to a substantial collection of existing Research, Studies, and Statistical data.

Listing Fees and Slotting Fees are pivotal considerations. The top 100 manufacturers, such as Kraft, General Foods, and Proctor & Gamble, offset the losses incurred by newly introduced products at retail against their more established and stable brands. It's important to note that new products don't fail solely because of poor quality but often due to their inability to capture consumer attention in stores.

Listing Fees and Slotting Fees, charges imposed by retailers on manufacturers to secure a favorable shelf position, range from $25,000 per product (SKU) to as much as $3 million per chain. Shelf space is not only limited but also exceptionally valuable, as it can determine the success or failure of a new product.

Typically, well-performing products are positioned at eye level, featured in prominent aisle locations, or showcased on end caps. To gain further insights into the reasons behind the failure of new products, I recommend watching the video titled "Why New Products Fail."

Sales per Quarter: Every new manufacturer's product must attain a required number of sales or shelf turns, generating sufficient revenue to justify its shelf position; otherwise, the retailer or chain will delist and remove it from the retail shelves.

Why New Products Fail: The failure of new products has various underlying reasons, with one significant factor being the product's visibility to consumers. If consumers have difficulty locating a new product, possibly due to its placement on the bottom shelf or in a less favourable location, it will not sell well.

Consequently, it will fail to generate the expected sales per square foot of shelf space required to justify its continued presence at retail. This lack of visibility is a key contributing factor to the failure of the 30,000 to 50,000 new products introduced annually. For further insights on this topic, I recommend watching the video titled "War for Shelf Space."

SkrAtch™ Addresses Consumer Awareness: SkrAtch™ tackles the issue of consumer awareness concerning new manufacturer products. It achieves this by featuring five new manufacturer products in each game edition run. The SkrAtch™ game is strategically sold at prominent retail positions, including the Point of Sale, Cash Register, and End Caps. Additionally, it can be displayed on hanging strips in the grocery aisle. This approach effectively drives product sell-through by creating awareness and promoting conversions both during and after the retail experience.

Effective Product Sampling: Each SkrAtch™ game includes five free full-value products, collectively worth over $15.00 for the consumer. This marketing approach, commonly referred to as effective sampling or "try before you buy," boasts an impressive conversion rate of up to 62%. This indicates that the consumer is more likely to revisit the retailer, actively seek out, and repurchase the product. This positive outcome aids the manufacturer in acquiring or retaining shelf turns, ultimately avoiding the risk of being de-listed. For more information on the effectiveness of consumer sampling, I recommend watching the video titled "Effective Consumer Sampling."

How SkrAtch™ Provides Over $15.00 in Each Million Game Edition: SkrAtch™ issues a purchase order to the manufacturer for the number of products to be given away at retail, calculated at the full retail value with markup. The purchase order is always a percentage of the total number of new products the manufacturer intends to sell. In return, the manufacturer issues a purchase order to buy an equal number of ads on the SkrAtch™ game.

Consumers purchase the SkrAtch™ game for $1.99 and redeem the five free product tickets, each worth a minimum of $3.00, providing over $15.00 or more in full-value products, not discounted ones, redeemable at retail. To view the products included, please refer to the menu's "Products 1 - 5." New products are changed with each game and edition.

Tax Deductions and Cost Efficiency: The purchase orders are tax-deductible, meaning that neither SkrAtch™ nor the manufacturer have to use out-of-pocket cash to participate in the consumer awareness brand loyalty sample-before-you-buy program. In fact, since the manufacturer's production cost for the new product is significantly lower than the retail value that SkrAtch™ is paying, the manufacturer will have already earned a profit by engaging in the SkrAtch™ promotion.

SkrAtch™ games are sold at retail for $1.99 and contain over $15.00 worth of free full-value products, along with the chance to win hundreds of thousands of dollars in additional prizes. You can find more information on Products 1 - 5 page.

Benefits to the Retailer, Manufacturer, and Consumer: The advantages for the manufacturer are substantial, and the retailer also benefits from the sale of SkrAtch™. With a Manufacturer's Suggested Retail Price (MSRP) of $1.99, the retailer earns $0.80 cents, SkrAtch™ earns $0.80 cents, and the production cost, including wholesale of the game, is $0.39. With a very small footprint and 10 games on a strip in a store, it more than justifies SkrAtch™'s presence and shelf turnover, just as we did when we sold over 3 million games at $5.95 in 5 countries.

More Value, Blockchain, and Smartphones: Now, with the advent of blockchain technology and the widespread availability of smartphone technology, the redesigned SkrAtch™ makes more sense and holds greater value. SkrAtch™ provides manufacturers with an easy, turnkey method to embrace blockchain technology today.

Marketing & Sampling: SkrAtch™ functions as a marketing, promotion, and sampling platform set to be initially reintroduced in 18 nations. Sales targets for each country are established at 1 million SkrAtch™ games per quarter. As a result, SkrAtch™ may need to be selective in determining which new products to advertise on the platform. Factors such as consumer interest, charity initiatives like food delivery, and the overall perception of product quality will play crucial roles in influencing participation metrics and ensuring the overall success of the venture.

Loyalty Programs: Loyalty programs serve as the cornerstone of a comprehensive customer retention strategy, offering a range of options from standard point programs to engagement-driven VIP programs and referral-based advocate programs. These programs are implemented across various industries, catering to brands of all sizes. However, it's important to note that while loyalty programs excel in capturing and retaining the attention of new and existing customers, they do not directly generate awareness for new product launches, regardless of the brand.

Smartphone Technologies & IoT: SkrAtch™ Smartphone, App, and Analytics. The SkrAtch™ Smartphone App interfaces with the physical SkrAtch™ game at and after the Point of Sale (POS). Additionally, the SkrAtch™ game can be purchased at retail using cryptocurrencies like the ETN cryptocurrency.

The ETN Smartphone App, known as the "Instant Mobile Payment System" and currently pending patent, is designed for mass adoption. It is produced by Electroneum Ltd., a UK fintech company, and aims to target the vast user base of 1.7 billion smartphone users (as per PwC, PricewaterhouseCoopers). This app is readily available in both Android and iOS formats and is already in use in numerous countries. It's worth noting that Coopers & Lybrand served as our original auditors.

​Funding and the Token ICO: SkrAtch™ is currently privately funded. Alongside the Token ICO launch, we vet and add advisers, advisors, and team members worldwide. Visit our Token ICO launch website at: http://www.skratch.online.