Author: Growing your tree of prosperity

MBA in a Nutshell #16 – Marketing : Marketing Mix – Discounts and Premiums

This is a strong article to run-down all the possible discounts and premiums that can be given out with a product offering : Premiums a) Gift with purchase Last Christmas, KitKat chocolates came in Avengers tin containers. That’s almost a gift and my son loved it. b) Purchase with Purchase If you buy something, you get to buy something else at a discount. Amazon Kindle books now give credits to buy more kindle books and I can’t seem to stop buying books because of that. Discounts a) “Twofer”  In Singapore, we call this buy one get one free. b)...

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Why are you not rich yet ?

As we speak, a lot of financial bloggers are attaining the stage in their lives where they can live on dividend payouts. Sustaining this for a few more years may even allow them to live on 4% of their income. This means that they can decouple from the workforce and then deal with the messy issues of early retirement like how to craft a personal identity without a day job. But many of these financial bloggers will not be RICH. This is because financial capital is only one component of a person’s wealth. Sociological studies in the UK define...

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Personal Update

Ok, time for a personal update again. a) My father’s matters I am 95% done with my father’s matters. Given the circumstances, getting over the 80% mark within 2 months is a fairly decent record given what I was taught in law school. When a bank receives notice from a law firm that someone has passed away, the bank account becomes frozen. No withdrawals or deposits are allowed. Incoming CDP dividends will also be prevented from coming in (which is puzzling to me). According to CDP, cheques will be instead be issued under the name of the deceased. A...

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MBA in a Nutshell #15 – Marketing : Marketing Mix – Promotion

We are now going to spend a few weeks talking about the last of the 4Ps which is promotion. There two kinds of broad promotional strategies : The Pull strategy employs advertising to get the consumer to want your product and so the demand will cascade from consumer, retailer, wholesaler and manufacturer. The Push strategy works in the opposite direction where selling will be made from the manufacturer to wholesaler, retailer and then to the retailer. I doubt that these strategies are mutually exclusive so I expect companies to use a mixture of both. Theoretically, I play the role of “manufacturer” with...

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Shinigai (死甲斐) – Who would you short in Life ?

I just read an article where Warren Buffett asked a group of graduating graduates who thy will bet on in life if they could buy up 10% of the person’s lifetime time for an upfront equity investment. He reasoned that, very often, the person with the highest IQ will not be invested in most of the time. Instead the most dedicated, conscientious and resilient person with leadership qualities would probably attract the most funding. I would not be afraid to say who I will bet on in this blog : Alvin Chow of Dr Wealth would be top of...

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Invest before you investigate

I was reading a book entitled What Philosophy can Teach You About Being a Better Leader by Reynolds, Houlder, Goddard and Lewis and was pleasantly surprised that it turned out to be an above average read for investors. The authors asked to resolve this paradox concerning two uber-investors Peter Lynch and Warren Buffett: Lynch believes in hard work, but Buffett believes strongly that inactivity is much more intelligent behavior.Lynch was quite an opportunist but Buffett was famous for his self-restraint.Lynch makes thousands of decisions a year, Buffett only a few.Although I think Peter Lynch is bad influence to retail...

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MBA in a Nutshell #14 – Marketing : Marketing Mix – Place

We are still trying to progress through the 4 Ps of marketing. Today we are covering Place. The first we thing w need to understand are distribution options. There are three levels of distribution options. We commit to intensive distribution if we are aiming for maximum exposure. We do this by using any wholesaler or retail outlet that would let us stock our goods. Most consumer products fall into this category. We can also use elective distribution if we sell the higher ticket items. The RPGs and boardgames I play are normally sold through special FLGS stores. Finally, we...

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Personal Update

The week has been less relaxing than I thought. I was supposed to conclude my training for Batch 9 and then spend the next few days doing noting much but I ended up doing some administrative matters regarding my dad’s matters. a) My dad’s matters Things are moving much faster than I was taught in law school. In Part B, we were taught that you do up a will because things get slow and complicated otherwise. I ended up going through the Letters of Administration route, and initially I thought things would be really slow, but everything concluded in...

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MBA in a Nutshell #13 – Marketing : Marketing Mix – Price

Wow ! It took ages to get out of the product segment. The segment of Price only has enough material for one article. Here are all the possible approaches to price a product Premium Pricing – Charging a high price relative to other brands. Hermes is a great example of a brand that does this. I wish I were here. Fair Pricing – Price that is objectively regarded as being reasonable. NTUC Fairprice is definitely in this category. (OBVIOUSLY !) Penetration Pricing – Charging a low price to generate volume. My program was here a year ago. I would...

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Letter to Batch 9 of the Early Retirement Masterclass.

Dear Students of Batch 9,It’s been a great honour and privilege to be able to conduct a 2-Day Early Retirement Workshop for you. The highlight of this session is that we managed to successfully conduct a new version of the Emigration Exercise that used to be done for earlier batches. In this exercise, students get to roleplay an emigrating singleton and to investigate one destination that they would like to emigrate to by digging out the economic data of a target country. Once they reach their destination country, students will have to determine whether they can live on the...

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MBA in a Nutshell #12 – Marketing : Marketing Mix – Product – Boston Matrix

The Boston Consulting Matrix was my first exposure into the power of 2×2 matrices. Some genius found a way to build a map of where all your products stand vi-a-vis each other based on the twin axes of market share and growth rate. This generates 4 possible quadrants : a) Star – High Growth, High Market Share These are the stars of the show who have a dominant position in a high growth industry. If your product is placed here, this is an enviable position to be. While my ERM class is growing fairly quickly in 2019, my market...

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Living the NERFed Murderhobo RPGer Life

The weekend post is a little late because I spent the greater part of Saturday and Sunday attending a course on Quantitative Investing by Dr. Wealth but as a paid customer. I’m not ready to blog about it because I want to do this some justice to the course, so instead I just want to do a philosophical piece about life. I had a small epiphany about my life lately. Of late, I have been drifting away from playing D&D and putting a lot of focus on my life as a trainer. A cursory explanation is that D&D does...

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MBA in a Nutshell #11 – Marketing : Marketing Mix – Product – Product Lifecycle

Like many living things, a product has a life cycle and evolves through multiple stages. i) Introduction At this stage, there is a lot of research and development. Sales and profits are low. A product at this stage his highly vulnerable and funds are needed to grow properly. ii) Growth At this stage, sales and profits are growing. A substantial amount of promotional effort is required to sustain this stage. iii) Maturity Sales and profits peak at this stage. Profits may diminish because competition is getting into this game. iv) Saturation Decreased profitability occurs here. Competitors are starting to...

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Thinking at the margins.

One reason I would like Economics to be introduced to O level students despite only starting to study it serious at my Masters is its immense usefulness in daily life (as compared to that abomination English Literature).  One really nifty concept in economics is marginal value, which is contrasted with average value. Marginal value is the value we give to one extra unit of an item. i.e. I’m going to eat lobster rolls with a friend next week and I bet we’re both looking forward to it. This is a special event because neither of us eat lobster rolls...

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