Forum Archive Index - October 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi winner69,
 
>
>
>Snoopy - at least panic-e-button was wrong and the 
>interim dividend was retained.
> 
>


'Panic-e-button' never had anything to back up his assertion.  RBD 
has plenty of cash so there was no way the dividend was ever going to 
be cancelled. 


>
>
>Half year result a bit of a worry though. All that activity in
>driving sales growth but declining profits doesn't make good
>reading.
>
>


Standard technique in building a consumer business:  Advertise your 
presence to hell to get the people coming through the door.  Then 
turn back the wick on the advertising and profits will start to flow.

I think a lot of people expect too much too soon from RBD.  People 
seem to be shocked that PH has not turned around in Victoria after 
only six months!  The turnaround was never going to happen that 
quickly.  Collier sold the KFC and PH real estate in NZ and is now 
sitting on buckets full of cash.  He didn't gather the cash because 
he wants to put it on term deposit.  He wants to spend the cash to 
grow the business!  He has already told us that now the basics are in 
place Victoria is about to 'get wet' with an advertising splash.

Perhaps Victoria is a little behind where they hoped they would be. 
But then salesman always think they can turn something around faster 
than is reasonable.  In short, I'm happy with the way things are 
going.


> 
>Pretty robust discussion on the other channel - especially the
>suggestion that since the Eagle Boys merger a significant share of
>the pizza market has been lost. 
>


Collier has a bit of the salesman streak in him, and salesmen *never* 
forecast a decrease in sales (at least in public).   Behind the 
scenes I am sure Collier was realistic.  He would have known that he 
would not retain all the Eagle Boys custom.  He was/is also well 
aware the the Pizza Hut franchise could come under attack from new 
entrants such as 'Mad dog'.

Competition in Pizza is not news.  PH was never designed to be the 
latest 'hip' brand.  PH is the Pizza brand of the average Joe and 
Joess.  Good basic food at a reasonable price, with nothing too 
offensive.  They want to stay no.1  in the market.  Contrary to 
popular opinion, being number one in sales of any consumer product 
does not mean that you need the 'best' product or the 'newest' 
product on the market.  The fact that PH neither makes the best nor 
the hippest nor is the newest pizza brand about does not derail PH's 
plans.

There has been some discussion as to why Eagle Boys, seen by many as 
the stronger brand, was dumped and 'Pizza Hut' expanded.   The reason 
for this was that RBD takes PH/KFC as a package as part of the 
agreement with the company that owns these brands in the USA, 'YUM' 
foods (formerly Tricon).  If they dump PH, they will also lose KFC 
and this they cannot afford to do.

>
>You should come and join us.
>

I get enough spam through being on this channel!  I do wish more 
people would ask for their e-mail addresses to be munged in the 
sharechat archives.  I am sure it would make a difference to the spam 
levels.

SNOOPY


 
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Message posted by Harry Tennyson
 using Pegasus Mail 2.55
I have Word 97 to read attachments
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