Forum Archive Index - January 2002

[Marilyn Munroe <who.c@res.co.nz>]

In Saturdays Christchurch Press Danone Asia's managing director Mr Simon
Israel is quoted as follows;

"We want to sit down with them and see how they see the world. It is a young company that has brought a new way of doing things. I like the company.

Apart from its innovation, Frucor has the capacity to think about the world differently."

Mr Israel said that Danone's interest in Frucor went beyond its signature product, the energy drink "V".

"Its more than a recipe. They have a whole category approach from the branding to packaging and positioning."

Precisely Mr Israel, you spotted that Frucor had superior marketing and brand management skills. I did too, but very few others did.

These skills are very difficult to aquire and maintain. If done well they can be worth a bundle. Witness some blokes loyalty to their local beer brand, a product made up of water, gas, sugar, flavouring substances, and organic solvents, and more than likely made in the same factory as the favourite local brand in the next province.

What I am saying is that if you can get it right you are laughing all the way to the bank.

In N. Z. marketing skills are regarded as something that real men do not do, like men's netball. I believe that this attitude was carried forward to the markets perception of Frucor and its valuation.

I would urge Kiwi blokes to value these marketing skills more in future, and thus be less willing to allow companies with these skills to be sold out from underneath them at less than their intrinsic value.

The other question that arises from the takeover is why, given Frucors marketing skills did Pepsico not enter the ring. A takeover of Frucor would have hardly dented their balance sheet, and the benefits of spreading Frucors marketing skills across the larger organization would have been good.

Enough of my rant, the next thing to do is grimace all the way to the bank with Danone's cheque.

Boop-boop-de-do Marilyn

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