TRA - Turners Automotive Group

[Stockgathering]

Hmm - wasn't Vulcan Steel the 2022 winner? Anybody remembering what happened with their share price in the last 2 years?

Just checking some other winners - FPH made it in 2020, and yes - what a company they are. However - they had a pretty rough stretch after their 2020 award as well. SP just recovered now to its 2020 glory.

So - maybe - lets hope this cup passes from us.

Last year Winner was Comvita. The next Annual result for comvita after the award was an massive loss of $77m and the CEO was pussed out of his job it seemed. I am not sure if it is something to be proud of winning those Deloittes awards.

[winner (n)]

Awards are realy ego trips for top management, something they can rave about for years

But they can generate a lot of goodwill amongst staff, like higher degree of 'engagement' etc etc....it's great working for Company of Year

Awaiting the NZX announcement and seeing what Todd says.

[Stockgathering]

How much credibility should we place on the Auditor's report of companies like Deloittes if with their expertise of supposingly analysing 200 companies, they come up with a winner like Comvita? 

[winner (n)]

How much credibility should we place on the Auditor's report of companies like Deloittes if with their expertise of supposingly analysing 200 companies, they come up with a winner like Comvita? 

Judges are not Deloittes people ..independent

Alongside Fran O'Sullivan on the Deloitte Top 200 independent judging panel are Jonathan Mason, Neil Paviour-Smith, Gavin Lonergan, and Hinerangi Raumati-Tu'ua.

[Stockgathering]

Judges are not Deloittes people ..independent

Alongside Fran O'Sullivan on the Deloitte Top 200 independent judging panel are Jonathan Mason, Neil Paviour-Smith, Gavin Lonergan, and Hinerangi Raumati-Tu'ua.

Ok, that is interesting. So who do you think chooses the judges?

[Basil]

I bought even more Turners yesterday at $5.25. Wanted to buy myself a Christmas present that would confer great benefits and be richly rewarding in the years ahead. Couldn't think of anything better.

[Stockgathering]

Fair enough, if TRA wins the award this year I think the judges are likely looking back in a few years and will be pleased with this years selection.

[winner (n)]

Ok, that is interesting. So who do you think chooses the judges?

Probably Fran O'Sullivan as she's associated with partner / main sponsor being NZ Herald

[Basil]

Judges seemed to focus on who's performed well this year.  "Fonterror" has had a really patchy track record over the years whereas Turners have hit one record profit after another 5 years running right through Covid and the long, truly depressing recession.  Judges got their call wrong in my opinion but I could be biased lol.  Go Todd and Tina.

[Cod]

Finally reached the breakout target flagged a year ago, will take a breather IMHO.

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[winner (n)]

Nice, it's very tough to compete with Tina and Todd.  Jarden's quite a while back predicting 12% market share for Turners by FY30, currently 9.5%.
To put the modesties of this expectation into perspective, it's important to note that in the period since the Tina campaign began a few years ago, Turners have roughly doubled their market share, so such a modest 2.5% further increase over the next 5 years does seem VERY conservative.  A ~ 14% market share by FY30 or FY31 wouldn't surprise me.

Roughly doubled a bit of an exaggeration (Basil in love with Tina does that) but going from ~6% to ~9.5% still a pretty good effort

Pity sales $s haven't grown at the same rate but that's a sign of the times with cheaper cars etc etc

But shows THE PLATFORM IS SET FOR GREAT RESULTS IN BETTER TIMES

Still reckon TRA close to 7 bucks this time next year

The market share chart Todd proudly shows

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[Basil]

I can't remember exactly when the Tina campaign first kicked off but it seems from media reports it was 2021. https://nzmarketingmag.co.nz/lessons-from-turners-in-driving-fame-and-business-results/#:~:text=Since%20launching%20in%202021%2C%20it%20has%20picked%20up,%E2%80%93%20paying%20itself%20off%20within%20just%20one%20month.  What is crystal clear is the slope of the curve, (the rate at which they are gaining market share) has significantly steepened since then.

Interesting article about how the Tina campaign paid for itself within one month.
https://www.nzherald.co.nz/business/markets-with-madison/how-the-tina-from-turners-ad-paid-off-in-a-month/LAJ7NQFB4ZAKFJ3I6OEVSLL2J4/

The compelling forward metrics of Turners suggests to me the market doesn't yet fully appreciate the true brilliance of the Tina campaign and what a powerful influencer it's going to be on driving future growth.
Agree a $7 something handle is a good target for some time in the next 12-24 months.  I would prefer not to be too prescriptive on when.

[BlackPeter]

I can't remember exactly when the Tina campaign first kicked off but it seems from media reports it was 2021. https://nzmarketingmag.co.nz/lessons-from-turners-in-driving-fame-and-business-results/#:~:text=Since%20launching%20in%202021%2C%20it%20has%20picked%20up,%E2%80%93%20paying%20itself%20off%20within%20just%20one%20month.  What is crystal clear is the slope of the curve, (the rate at which they are gaining market share) has significantly steepened since then.

Interesting article about how the Tina campaign paid for itself within one month.
https://www.nzherald.co.nz/business/markets-with-madison/how-the-tina-from-turners-ad-paid-off-in-a-month/LAJ7NQFB4ZAKFJ3I6OEVSLL2J4/

The compelling forward metrics of Turners suggests to me the market doesn't yet fully appreciate the true brilliance of the Tina campaign and what a powerful influencer it's going to be on driving future growth.
Agree a $7 something handle is a good target for some time in the next 12-24 months.  I would prefer not to be too prescriptive on when.

Just wondering how many people are still spending their time at the TV watching ads? The only NZ TV we still regularly watch are the news and they are recorded, i.e. we just flick over the ads.

But ok - if we still have enough people enjoying to watch the commercials ...  long may Tinas impact last!

Having said that, still more important than entertaining a fraction of the crowd with ads will be providing good products and services at the right price. I hope they keep that as a priority!

Having said that - despite normally considering Turners as well when we are looking out for the next vehicle, they so far never managed to even make our short list. So, maybe you are right ... their phenomenal success might just be based on great marketing of an otherwise quite average product. A somewhat frightening thought, though.

[Basil]

They advertise on SKY T.V. and the radio a lot as well.  Probably social media platforms too but I'm not on any. Surely you listen to your radio driving around in your car?

Debate about advertising platforms and effectiveness aside, it is clearly working with a significant steepening in the rate of market share growth since the campaign started several years ago. Market share has in fact climbed from 4% in 2017, per Winners graph to 9.5% in 1Q FY25.  That's ~ 2.4 times the market share they have now compared to 8 years ago, most of that gain since the Tina campaign kicked off.  Todd said in a recent analysts call that about 90% of the people that ring Turners to sell their car ask to speak to Tina lol.

[winner (n)]

Some of the share gains would have come from still being 'in the game' .....lot less dealers to compete with Todd says