What makes a company successful?...

... delivering products and services that are relevant and create impact among consumers.

I combine my expertise as a Marketing executive in a Fortune 500 company and my passion as an investor to find the Companies that I think have "cracked the code" with consumers. Advertising does work. When I see a new product that fits relevant consumer trends, and that is supported with a campaign that I find particularly shrewd and innovative, I know that Company is potentially a great investment.

One of the great investors of all times, Peter Lynch, recommends to "buy what you know". You watch TV, go to the supermarket and walk around everyday. Observe... look around: what you see can make you money in the stock market. Now, let's be clear: a Company is not good just because it advertises. What we have to look for is great products supported with -and enhanced by- great advertising. The principle is simple: if something is good enough to draw your interest, it will be of interest to millions of persons just like you.

It is my goal to share with the reader my findings in the world of marketing which I think will turn into great returns for investors. Profit from it!

Saturday, September 8, 2007

Fat profits with Alli

Glaxo SmithKline (GSK) has recently launched a new weight loss drug named Alli. Alli is more than a drug: GSK has designed a whole program around Alli, and in a very honest way, warns the public that losing weight with Alli requires discipline and commitment. This is, for me, the key to its incipient success. Obesity is a serious pandemic in America, and consumers are worried about their weight. But they are exposed to a constant barrage of weight loss products offerings of dubious procedence and even more questionable effectiveness; products that offer magic formulas to lose weight while you keep eating like a Roman emperor and spend your weekends watching TV in the comfort of your couch. A combination of skepticism and desperation grasp over-weight consumers who know they need help, yet feel they are victims of unscrupulous scammers who prey on their weakness: what to believe? Who to trust?. So, when a reputable, Big Pharma company like Glaxo SmithKline finally comes to the rescue and launches a weight loss program, consumer will listen... and buy. This a serious Company that can be trusted. GSK has launched Alli in a quite vigorous way, and it's diffcult to miss their very well done TV commercials and their aisle displays at key retailers like Wal-Mart and Walgreens. Awareness of the new proposition must be high, and I assume some robust trial has ensued. I think Alli is a great initiative from GSK; in my view, this business will turn into a gold mine for this Company.

At $53, GSK share price is a little depressed right now as collateral damage of the sub-prime-driven market turmoil. It looks like a good opportunity to fatten up your portfolio.

Disclosure: I own shares of Glaxo SmithKline

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