Raising PM CORP shares is like flogging a 'dead horse'. No offence to u Calvin. I know u r passionate about this stock and u meant well in all ur postings. Please read this article, and let us know where NFI chocolates stand in the Singapore Market.
CHOCOLOTE CONFECTIONERY IN SINGAPORE
1.TRENDS
In a reflection of the health and wellness trend, consumers are gradually moving towards reduced sugar chocolate confectionery. In addition, there is also a trend towards premium high-quality chocolates as consumers develop a more sophisticated taste for chocolate and the know-how to appreciate premium chocolate products such as those with high cocoa content. Consumers further appreciate the health benefits offered by dark chocolate due to the flavonoid content found in cocoa beans which has antioxidant properties.
2.COMPETITIVE LANDSCAPE
Ferrero SpA leads chocolate confectionery with an expected value share of 23% in 2012 due to its strong portfolio of brands, including Ferrero Rocher, which is the leading brand in standard boxed assortments, Kinder Bueno, ranked second in countlines, and Kinder Joy, which is the leading brand in chocolate with toys. These brands are household names which are trusted by consumers for their taste and quality. Ferrero SpA is also expected to see the biggest increase in value share in 2012 as it continued to invest in marketing for its brands to ensure that they maintain top-of-the mind awareness among consumers.
3.PROSPECTS
Chocolate confectionery is expected to see a 3% constant value CAGR over the forecast period. Growth is expected to be slightly faster than during the review period, despite a weaker volume growth rate, as consumers continue to purchase more premium chocolate confectionery. There is likely to be a growing demand for niche chocolate confectionery and novel products that use exotic ingredients and flavours, as consumers continue to develop more sophisticated palates
Ferrero Roche is an image chocolate because through long exposure to high end TV advert the masses have accepted this as a norm. Like paying RM10.00 for a bottle of mineral water in a six star hotel which you can get it for less than a ringgit in Giant.
In reality you are OVER PAYING FOR AN IMAGE BY A WIDE MARGIN. Ferrero Roche is nothing in comparison with TUDOR GOLD. It has high palm oil content. Our Tango also has palm oil. But Tango has AntiOxidant!
I think with the ongoing Subprime fear from US & the recession of Eurozone, Singaporeans are more careful with their money. Of course the top 20% may splurge and spend as though there is no tomorrow.
The majority of the population are VALUE CONSCIOUS. See the book "The Millionaire Next Door". TUDOR GOLD & TANGO Have Already Captured Wide Acceptance in HDB Heart Land.
Mr. Chia, the Boss of an engineering firm, regularly buy Tudor Gold Dark Chocolates for His Singapore Staff (30 boxes of 200gm Tiramisu Dark at one go) (I took a picture. He obliged.)
Entire BOX of Tango 40gm bars were sold to Singaporeans from all nationalities - will last them 2 whole weeks.
First Visit to NTUC FairPrice At Noon During Lunch Time - I took notes - About 20% of Tango Sold and only 10% Tudor Gold Sold. 2nd Visit During Dinner Time- Tango COMPLETELY SOLD OUT. For Tudor Gold - Only 50% SOLD.
This Is The Recurring Sale Performance I observed Daily in Jurong Point, Singapore.
This Is The Reason Why I AM OVER THE TOP With Regard To PM Corp's bright future!
I like the idea of selling chocolate which is recession proof. However, just tried Tudor and Tango for the first time and I think they are a little too sweet to my liking although I am sure there are people love it as it is. The Tudor is quite smooth. It would be good if the company considers a 'low sugar' version and they really should highlight the high cocoa content on the packaging since that is a big selling point.
Singaporeans will trade up. PMC Choco products is and should be targeted at the masses...per capita consumption of chocolates in ASEAN countries is still very low ..there there is unlimited opportunities just in ASEAN chocolate markets as per capita disposable income among masses will increase over time.
From the strategy viewpoint, PMC target consumers are the masses of people whose disposable incomes will rise as economic growth gathers pace in the various ASEAN countries.
PMC products currently is appealing in packaging. is affordable and has the edge in taste and the marketing strategy should continue to target the masses particularly in High Traffic Outlets. With growing urbanization there is further opportunities to be tapped in targeting younger consumers and people on the go as a snack supplement chocolate food or just a snack impulse product where the cash outlay is very affordable that is sell in smaller packaging.
The disposable incomes of majority of Singaporeans had not really improved over the past 10 odd years and the new migrant workers have also not seen much improvement in their disposable incomes as living cost is high in Singapore.
Consequently economic circumstance influence most Singaporeans and migrant workers to be value conscious as they r feeling relatively poor in a rich country with GDP per capita exceeding USD 50,000.. As such PMC marketing strategy of offering "Value for money Chocolate products" is the right strategy to gain mass consumption and induce repeat purchase from these "Value Conscious" consumers.
However in the event that disposable incomes of the average working Singaporeans improve in the next few years there is a good likelihood that easily 15% to 25% of these consumers will trade up and this reality may occur sooner than expected as World Economic growth spike up in the next few years.
In Penang lot of sales Tudor Gold, I noticed in Giant, 711 shop and Gama, next to Gama there is one whole sale shop, they also selling lot Krispy, Tango choclates.
As long as PMC Choco products targets the "Value chocolate consumers" and organizes its resources to provide availability and affordability of PMC Choco products to these "Value Conscious Chocolate Consumers" in ASEAN countries, PMC has a bright future ahead as currently it has a definitive edge in taste over its local and global competitors manufacturing in ASEAN countries as Economic growth in these countries accelerates in the future years
A Big Thank You For Helping To Promote Tudor Gold in Penang.
I love Penang - the Pearl of The Orient. I have travelled the whole Island of Penang 5 Times: 3 Times on motor bike & 2 times by car. I have also visited Air Itam Dam & Penang Hill many times. Wonderful memories.
Yes. For some of us Tudor Gold may be a little too sweet. That's why we must eat in smaller portion with plenty of liquid. So far our Malay friends have little complain.
I have brought up the idea of a "Semi-sweet" Tudor Gold to NFI Bosses before. And putting "29% Cocoa content" on each Tudor Gold will enhance sale, definitely.
Calvin, I am just a mere human residing in this place called Earth , I take people for what they are, What they believe in, Not what I expect them to be, Each person is free to decide on their role in this global society, I am of the opinion that diverse views is a precondition for sustained development of the human mind, it is one's self responsibility to try as much as possible to develop an unbiased objective view of anything...
Good morning to all friends at this forum, nice day n happy trading. I don't mind telling all of u here that I'm already 71 years n coming to 72 n still enjoying eating chocolates ...........Tudor Gold, Crispy n Tango n feel strong, healthy with a sound mind to mix with all of u, young, middle age n quite old friends in sharing our views, knowledges n advices to this forum. Have a nice day friends n happy trading.
PMC at this juncture is best to focus on creating effective but inexpensive brand awareness campaigns, creating consumer trials, inexpensive consumer promotion campaigns in HTOs on existing product ranges in current packaging form.
There is opportunity to develop "affordable yet contemporary healthy chocolate products or chocolate related products that can be immediately consumed without having to store it after consumption"...healthy but Value buy product appeals to people on the GO in the rapidly urbanising ASEAN societies...and widen distribution channels to provide affordable,healthy and value products availability to these mass consumers
However it is important to always be conscious not to offer Voluminous Products that cost very few $$ per cubic space as this is clearly not sustainable due the increasing transportation costs...It is better to offer high $$$ products per cubic space that is affordable for mass consumers
You hit PMCorp business model right on the bullseye. Bravo
NFI made chocolates are for masses. Low price, easy to buy, small packaging and "more bang for the buck". Therefore, volume is critical and factory running on full shifts is a good sign. I heard that they will increase another 2 production line in their Shah Alam plant. ( this is market rumor, maybe Calvin can check further info).
The next step for Pmcorp is to shed its contract manufacturing business and concentrate on building its own branding business globally. OEM business doesn't pay well and only serves to generate paltry revenue and profits.
When I was in the early forties I suffered the symptoms of stroke - certain days I could not move my left arm and also have severe headache.
Then in my fifties I suffered the symptoms of heart attacks - sudden tightness of the chest & short, sharp pains in my chest that come and go suddenly. Sometimes the pain persist for a period of time. A warning sign - I always rush to Giant Supermarket to get a Small Bar of Tudor Gold Dark Chocolate bar. It worked wonders for me.
I have 3 friends in their forties & fifties who have died from heart attacks. And one in his seventy (very rich guy) paralysed by stroke.
That Is The Reason Why I Am So Passionate about Tudor Gold Life Saving Chocolate. Before that I ate kit kat & cadbury like those of my friends who died too early.
So I Am Doing A Promotion of Good Healthy Tudor Gold As A Means of Returning Thanks.
Yes Huangbk72, PMC should focus on building up its OWN BRANDS , Market and Sell its OWN BRANDED CHOCO Products to the MASS ASEAN CONSUMERS. If it could do it in the immediate future, it should free up valuable production time on Contract Manufacturing and Focus on producing its own branded Choco products thus earning higher gross margins on its BRANDED PRODUCTS and deliver Higher EPS which will result in Higher Share Price and pay dividends to REWARD its Shareholders.. It is a very simple business model, easy to understand and easy to execute.
Yes! This Was What NFI Bosses told me. They Also Prefer To Manufacture Own Brand for Higher Profits than thin margins from OEM. So All Are In Agreement! There is Power in Unity!
just visited Beryl's chocolate in Seri Kembangan and found out that the manufacturing outfit also cater for product promotion by giving out info and explaining the origin of chocolates . After the talks , followed by the sales . in fact , the co did a roaring sales as visitors and tourists flocked in to buy any chocolates that suited their tastes and packing. This should be the way that NFI must do it to expand local sales apart from other established outlets inclusive overseas sales. Since the OEM not very profitable , NFI should adopt producing their own brands and packagings by doing more on researches and different ways of packaging . Initial start may be a little bit slower , but when going for a longer term , businesses will soar and bringing increased profit to the co. After that the rest will be history....
Yes. I once met a lady promoter from Beryls. She told every woman about how dark chocolate can prevent breast cancer. That was new to me. So I learnt as I go along.
All are in full agreement that PM Corp should be renamed to NETWORK FOODS INDUSTRIES
Strong effective CREDIT Management will Reduce tremendously The Risk of Bad Debts. The Risk of Bad Debts must not be a deterrent to Increase Gross Margins that result in Increase Earnings that pay Dividends to Shareholders
But in reality, it all depends on management risk appetite. For a small company, the risk may be too big and none want to be responsible. Older management style are generally more conservative especially dealing in FMCG products. Since we can see PMCorp is moving away from the safety of OEM manufacturing, it may take time for them to increase their RISK appetite.
All said, only good things will happen in PMCorp business model. Time is on their side and market is as much as they can explore globally.
This is a constructive feedback from me.....there are now many ppl afflicted with diabetics...so what i mean is create another product with less sugar. tq
Just focus on selling to all the "Health and Value Conscious" mass consumers in ASEAN countries and these Mass Consumers will provide PMC "ENDLESS OPPORTUNITIES"
I think heavyth meant the taste was good but just a bit too sweet lah. I thought the same too. Everyone has different level of tolerance towards sweetness lah. But I totally agreed that it tastes quite good and smooth........
Changing the name of the company without changing the old guards who helms them is akin to undergoing a plastic surgery....outside look different but inside still same old. The right thing to do is for KKP to pass the company to a sucessor and let him have a free hands to chart the company's course. By doing so the public confident with the company will slowly return and hopefully it will be reflected in the share price. KKP is liability to the company as he has proven to be not interested in reviving the company's fortunes or have the interest of investor at heart. Ask yourself whether you want to bet on a young stallion or an old injured horse.
My opinion is that as long as the above is not carried out, this is a sinking ship....only that it has not fully sunken yet. There's hope yet for this ship, but only if KKP plug the leaks.
I just bought Tudor gold dark chocolate for my mum & crispy for my girl friend yesterday in one of Penang supermarket. PM Corp marketing had changed their strategy, their product placed nicely on the shelve beside cadbury & van houten. But, Tudor & Tango chocolate penetration in Malaysia still very low. I saw some Indians beside me still pick cadbury. I think they still need to put effort to do some chocolate fair, advertisement & promoter.
lee9fold, I just back Penang last week. Busy with my family, new car, insurance agent & we will b going to Singapore by this weekend. Hahax, my friend insurance agent look for me liao, my friend car dealer pun look for me liao. ~.~ no time for PM Corp pula.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
zu1967
3,791 posts
Posted by zu1967 > 2013-12-09 17:27 | Report Abuse
Hai guys. Jcool tengah promote mqtech. Time to fly