DID MAGNUM SALES DRIVE RFM STOCK PRICE?

     RFM Foods Corporation, the company behind several household brands like Selecta, Fiesta, Swift, and Sunkist, brought in the premium ice cream brand Magnum (together with Uniliever) around 2 months ago. The perception is that Magnum is selling out fast and this is very evident when you try buying one from 7-11 or Ministop. Most of the time they’re out of stock. We can’t say for sure though how much Magnum is contributing to RFM’s bottom line but we can say that it probably is helping the surge of the company’s stock price. They started with Php1.20 per share in January this year and they just hit Php2.07 last April 3.

Chart from PSE website:

   Magnum was powered by a very aggressive marketing and branding campaign which culminated in the brand launch in March.As a result the brand has been getting a lot of mentions on social media sites like Twitter.

    It will be interesting to see how the stock performs this summer.

source: www.newmedia.com

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   RFM Foods Corporation has a very effective marketing strategy that enabled magnum sales to be at boom level. It made a good start that serves as an impression to the people. It was showed in the graph how the sales rose up in a short period of time. Their are outside factors like social websites that affected the popularity of the product. This is good for the company because it is free and yet their product is being advertised. If this will continue, the value of their stock price will continue to rise.

 On the other hand, the Company failed to supply the demand of the people. Evident enough to any store that sells the said product. When people can't get what they wan't, it can damage the products reputation.  The time that you see ads on tv or posts on the internet, it can give you excitement and then knowing that it is out of stock, it will lead to frustration.

 The company can avoid this by producing more products.  If the company is able to produce enough supplies, they might have a higher stock price compared to the present. RFM Foods Corporation had already made magnum wanted by the people, they should now focus on producing enough supplies to maximize its potential outcome.