I met former professor in marketing in AGSB and SBMA Administrator at Holy Land Subic

New ideas create better quality of life and wealth

Rizal Philippines
March 14,, 2017

                                       Prof Jorge, Administrator Robert Garcia, and our business partner


Today, my business partner in Laguna, his son, and my daughter who is part of the management team went to Holy Land  at SBMA (near the entrance of Subic Freeport along Tipo Highway in Front of Seal oil station) this morning.

There I met my former professor in marketing at AGSB some 30 years ago (at H de la Costa) who just resigned from his post as SBMA administrator.  He used to be exec at RamCar group (the Petines family business)   He turned around SBMA from a net loss, to  a profitable one, restructuring its debt together with Joven Reyes, the CFO and COO (former AGSB classmate;  he was our class valedictorian)

His wife Maribi's passion is running and getting finances for the Holy Land, a religious shrine that features way of the cross, Jesus Christ life, and many more.  She is Jesuit bred and understands a lot about Jesuit reflection  We were drawing inspiration for inspiration for a religious shrine at our Holy Gardens Memorial Park

You should visit it this Holy Week.   You will enjoy its attractiona and the entrance fee is low.  A great way to observe Lent

                              I looked older than the Chairman who plays golf always

                          The Administrator's wife Maribi Garcia and the master planner Arch Florentino

Grappling with new product idea for a financial product

New ideas create better quality of life and wealth

Rizal Philippines
March 8, 2017

We acquired a life plan company, which we bought for a premium of x amount.   There are only 14 remaining pre need companies in the Philippines.  The rest have been closed or under receivership.  Most of them failed because they were engaged in educational plan.  Cory A uncapping of the tuition fees signaled the demise of educ plans.

The leaders now are SPLP and Philplans.  SPLP did it with massive sales force and with matching chapels to spread their presence and reduce their costs and their risks.   SPLP is more conservative by buying assets and chapels of say Heritage (Rose Hill) to dominate the A market at MM and Makati.

1.  Now there are two types of plans:

1.  The trad which is pegged to the service and product to be bought, thus they are named after saints and flowers.  The trad were the cause of many failures of plans   SPLP has many such plans (traditional ) so they have many posts at their web sites with pictures of caskets.   The brochures do not look nice because of monicker of being a life plan, this is really a death plan

2.  The non trad which is a fixed peso value and the company only pays the amount promised.  That works more like a financial instrument which can be even made to increase (no interest or dividends here please)  So Philplans has increment of 4% yearly (not compounded beginning on the sixth year (they call this cash benefits) and after 40 years, in addition to the memorial benefit, they can give a new plan (that is 35 years x 5%)  + 175% increments ( a pamana to a beneficiary)

   That is like a life insurance with VL  (variable life) linked to an equity or mutual fund

   That is like a time deposit that yields higher than bank TD

Varieties of Lechon

New ideas create better quality of life and wealth

Rizal Philippines
March 8, 2017

Entrepreneurs at the Visayas have come come out with varieties of lechon:   lechon flavored with buko juice, lechon with crabs and lobster inside.  Who can resist that?

The latter is pricey.

Innovation create new wants and products.

Innovation is the key to progress and modernization

The last mile, end zone for FMCG

New ideas create better quality of life and wealth

Rizal Philippines
March 8, 2017

For a leading FMCG food company which has over $2 billion in sales (double about  a decade ago), their focus is not on supermarkets and modern convenience store (others like upscale food companies) focus on the said outlets.  This company is even doubling coverage of sari sari store, whom they think is the battle ground the frontier for FMCG.

For the end zone, last mile, the product manager would like to see a trike, or motortrike that carries all the sachet to the farthest flung barrios.  Reminds us of such outlet I saw in Cavinti, Laguna. An ambulant vendor sells plastic wares and all stuff P20.00 only on such trike,   He is equipped with a PA to call the attention of the residents.  There are variations of having fresh fish, meat and vegies for the ulam requirements of household

They are the ultimate channel to the barrios and far flung areas of the Philippines, which this FMCG wants to exploit and dominate in the future
Who ever said these were low techs and crude,  Even multinational professionals are paying attention.

Wall Selecta and Magnolia have been using this for vending their ice cream retail