Mighty Corp and their business strategy

In the controversies that the Bulacan-based tobacco manufacturer Mighty Corp strucked the company for the past several months, they explained about their business strategy. According to Vice President and spokesman Oscar Barrientos said that they keep their products low-priced, while their competition has very high costs. Mighty has been dedicated to their principles of serving Filipinos by its quality and affordable products in the country. But the rival companies keep on mudslinging Mighty with malicious lies over the issues on tax evasion and alleged technical smuggling.

With the low profits that Mighty is earning, while the other brands targeting a very high profit that makes the Bulacan-based company emerged in the market. As the company doesn’t have foreign brands and equity, and also they don’t remit royalty to any foreign headquarters. They didn’t retain a professional consultant which paying a high salary in the company. PMFTC does have this for the sake of making it more than 90% of the cigarette market are from them.

The diverse experience of Mighty Corp in the tobacco industry since the 1940s as they produced truly Filipino products. In my observation, there are smokers that around in their 30s to 40s of age bought the company's products per stick. With the heavy competition in this kind of industry, Barrientos added that they solidify its base, and enhance its core competencies. Smokers nowadays have three choices: quit smoking, smoke less frequently or look for low-priced alternatives.

Meanwhile, the retired judge said that fraud is a serious offense. And it must be proven by complete evidence, and conducted by a trusted authority. The allegation against the company is indeed unfair. Thus, the competitors doing damaging claims that the company did it illegally. They must prove to the authorities that they have substantial evidences against Mighty.

“We’re not selling at a loss; we’re gaining. Why should we continue our business at a loss? Assuming we’re losing, why should the competition be worried? Actually, we’re making reasonable profit. Our concept of gain is not only measured in peso signs; having been patronized by our loyal customers in the low-priced market, we feel duty-bound to keep our price low owing to our company’s nationalistic anchor,” Barrientos explained.

The margin profit of Wongchuking-owned company are totally different from the others in the said industry. The thing is that the competitor didn't explain publicly their side on how they merged.

BIR speaks up on Mighty Corp's controversies

Mighty Corp, a Bulacan-based tobacco manufacturers which was accused of alleged tax evasion, illegal smuggling and trade misconduct. For the past few months, there's a survey conducted by foreign research firm, AC Nielsen. They described the company as killing the local brands in the market. 

Kudos to BIR, they are neutral over Mighty’s controversies, they are not taking side over the competition to its rival. The rival company, PMFTC accused Wongchuking-owned company of tax evasion, technical smuggling and other malpractice by a foreign research firm, AC Nielsen. Did they have substantial evidence against Mighty? If you may recall, they are spreading malicious lies over traditional media. 

According to a BIR tax fraud official that they have not received any derogatory confidential information against the company other than what we read in newspapers on the results of the survey conducted by AC Nielsen. The said survey was allegedly commissioned by PMFTC, and baseless facts, killing all local brands.

They claimed that Mighty's promoting mid-market brands since profit margins in the low-cost category are low. It means the local brands will be faced out to favor expensive brands. According to the officials said that the information is not true and they are spreading unjustified information to the public. And selling its products at a loss to gain more patronage, they are degrading the quality products of Mighty.

“MC is not selling at a loss and is gaining profit as evidenced by the more than P5.4 billion income and business tax payments to the BIR during the first nine months of the year, which payment is expected to rise to P8 billion by the end of the year,” said Oscar Barrientos, a retired judge and executive vice president of Mighty.

Mighty Corp: BIR neutral over the tobacco wars

Mighty Corp, Bulacan-based tobacco manufacturer has been in the middle of controversial issues for the past several months already.

Government agency, Bureau of Internal Revenue is not taking side over the trade war between the company and giant cigarette manufacturer Philip Morris Fortune Tobacco Corporation. 

According to a BIR tax fraud official said “we have not received any derogatory confidential information against Mighty other than what we read in newspapers on the results of the survey conducted by AC Nielsen.” The alleged survey was commissioned by the rival company which was “unfair and malicious to discredit and to kill all local brands.

Mighty said it was untrue that it was selling its products at a loss to gain more patronage and eat up the low income clientele of its competitor which controlled at least 94 percent of the cigarette market.

“Mighty Corp is not selling at a loss and is gaining profit as evidenced by the more than P5.4 billion income and business tax payments to the BIR during the first nine months of the year, which payment is expected to rise to P8 billion by the end of the year,” said Oscar Barientos, a retired judge and executive vice president of the company.