Insights from Mighty Corp’s Oscar Barrientos

Mighty Corp executive vice president and spokesman, Oscar Barrientos has become the face for the low-profile owners of the wholly-owned Filipino cigarette company, who have been doing their business for 70 years quietly and away from the prying eyes of the media and even from competitors.

 

He joined the company 2 years ago upon the encouragement of the owners who happened to be good friends of his, can only at least in the best position that this company has to offer and will continue to offer. It has remained faithful to what it does best, producing cigarettes for the Filipinos market content with a 3 percent market share.

While both prices for premium and the non-premium brands were adjusted to account for the increase in excise tax, the non-premium has a lower tax increase and therefore it has lower price hike while the premium brands have to endure with the huge price hike making them more expensive to the ordinary smoker.

Mighty, which has a total of 23 brands and focused on its distribution system in the rural areas.Its premium competitors though have been concentrating in the big cities and their distribution are mostly in big supermarkets.

Another unique strategy is the company’s credit line offer to the rural sari-sari stores. This strategy does not only ensure that small stores carry Mighty products, but also augment the poor Filipinos capital to enable them to continue their small business.

 

The company has also tapped the direct selling network to further beef up its market.

Barrientos explained that at the end of the day, the price of a merchandise will redound to the cost of production plus margin.

This scholarship program, which is geared for the tobacco farmers or through the Federation of Tobacco Farmers, has been going on for the past ten years already. Part of its CSR program is to help improve the quality of local tobacco produce so they will not import anymore in the long run.

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