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Marketing Plan For Maggi Magic Sarap (All-in-One Seasoning)

II.

EXECUTIVE SUMMARY

Maggi Magic Sarap is the market leader in the all-in-one seasoning industry. They have been consistently positioned at the top because of the customer who patronize the product , despite the presence of other brands.

To improve quality by having a NAPA seal , to increase distribution levels so that everyone can buy maggi anywhere, and to maintain the highest advertising share is the purpose of this plan.

Current Situation: 2012 Share of Market ---------------------------- 59% in the food seasoning industry Sales Volume -------------------------------------- increased from the previous year Profit -------------------------------------------------- increased in profit Brand Awareness ---------------------------------- 71% ( UAI Survey) , Maggis shares in the market

Product: Maggi has the same grams with other competitors. Price: Much lower than other competitors but much higher than Knorr when it comes to pricing. Promotion: They dont have any regular promotions like discounts, raffle or other promotional strategy to increase the sales but the sales is still increasing, because of their highest advertising share. Place: The consumer can buy the product in any Supermarkets, Grocery Stores or even in Sari-Sari Stores.

Analysis: When it comes to all-in-one seasoning, Maggi was positioned as the top all-in-one seasoning mix in the industry. Even though there are many competitors in the maket, they still maintain their position, because of their highest advertising share. The price of Maggi is same as the price of other brands but much higher than Knorr. We will maintain this pricing so that consumer will still afford our product. Maggi doesnt have a regular promotions because they already have their advertising in tvs, the advertising strategy of Maggi help them to increase their sales. It is well-distributed in all supermarkets, convenience store and sari-sari store nationwide.

SPECIFIC GOALS FOR 2013: 2013 Share of Market ------------------------------ increased by 5%. Sales Volume ----------------------------------------- increased by 5% every year Profit --------------------------------------------------- increased by 5% every year Brand Awareness ------------------------------------100% Distribution Level ------------------------------------- 85%

Strategies and Action Plans:


PRODUCT product. : Seek NAPA seal, so that that customer will continue patronizing the

PRICE affordable price. . PLACE

: Give additional discounts and freebies to the consumer and maintain its

: Intensify distribution of the product / appoint more distributors.

PROMO

: Increase advertising budget

III. INTRODUCTION Company Information

NESTLE Nestle Philippines Incorporated is a large-scale, well-known international food manufacturing corporation engaged in the manufacture of instant coffee, milk, and ready-to-cook noodles. Nestl Philippines, Inc. is a robust and stable organization, proud of its role in bringing the best food and beverage throughout the stages of the Filipino consumers lives. The Company employs more than 3,200 men and women all over the country It is now among the top companies in the entire Nestl world, ranking No. 14 in the group and No. 3 in the region comprising of Asia, Oceania and Africa. It is No.1 among the ASEAN countries. In the Philippines, Nestl is among the Philippines' Top 10Corporations.. Its products are No. 1 or strong No. 2 brands in their respective categories. MAGGI Maggi is a Nestle brand of instant soups, stocks, bouillon cubes,

ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. He quickly became a pioneer of industrial food production, aiming to improve the nutritional intake of worker families. Maggi was the first to bring protein-rich legume meal to the market, and followed up with a ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today. At present

in Indonesia, Thailand and Vietnam Maggi seasoning sauce is a popular condiment in every dishes.

Location: The Nestl Philippines, Inc. is located at Nestle Center, 31 Plaza Drive, Rockwell Center, Makati City. It has manufacturing facilities in Cabuyao, Laguna, CagayandeOro, Lipa, Batangas, and Pulilan, Bulacan to meet the growing demand for Nestle products in the country. Soon to rise is another factory in Tanauan, Batangas.

IV. CURRENT MARKETING SITUATION

Current Position This study focuses on the seasoning industry consumption specifically the all-inone seasoning. Based on the UAI survey conducted, Maggi is still the market leader with a share of 59%, despite the presence of a number of other brands. Most of mommies out there are choosing magic sarap because of the aroma and taste when it sprinkle on every dishes. They believe that if they use maggi on every food that they are preparing it will gives magic to every dishes. But because of the negative issues concerning the imitations of Maggi Magic Sarap, I believe that it will shaken up the position of the product in the market.

Table 1 shows the overall result of the industry analysis based on the UAI survey conducted. This analysis involves several factors in consideration such as the Price, Packaging , Choices, Advertisement and Distribution. The total number of respondents who answered the UAI survey has a number of 70 different individuals to test the product awareness of the brands available in the market today. Figure 1 shows the share of heart of the all-in-one seasoning in a graphical representation.

Table 1.2 shows the overall result of the share of mind based on the UAI survey conducted in the 70 respondents. When thinking about all-in-one seasoning mix, what specific brand comes first to customers mind? This study proved that Maggi is the no.1 all-in-one seasoning mix that comes to every consumers mind, it is because of the high advertising share of Maggi. It is advertised on billboards and on tv commercials that is endorsed by many well-known artists here in the Philippines. The data proves on how strong the advertisement are, it really captures the consumers attention. Figure 2 shows the share of mind of the all-in-one seasoning in a graphical representation.

Table 1 Industry Analysis Based on the UAI Survey conducted in the 70 Respondents Referring to what All-in-one Seasoning Mix they prefer

ALL-IN-ONE SEASONING BRAND 1. Maggi 2. Lucky Me 3. Knorr 4. AjiGinisa 5. Del Monte

NUMBER OF RESPONDENTS SURVEYED 41 6 12 9 2

MARKET SHARE

RANK

59% 8% 17% 13% 3%

1st 4th 2nd 3rd 5th

Figure 1 Share of Heart Graphical Representation Based on the UAI Survey conducted in the 70 respondents

Sales
13% 17% 3% Maggi Lucky Me Knorr

Aji Ginisa
Del Monte

8%

59%

Table 1.2 Share of Mind Based on the UAI Survey conducted in the 70 respondents Referring to what All-in-One Seasoning comes first in their mind

ALL-IN-ONE SEASONING BRAND 1. Maggi 2. Lucky Me 3. Knorr 4. AjiGinisa 5. Del Monte

NUMBER OF RESPONDENTS SURVEYED 50 5 12 2 1

SHARE OF MIND

RANK

71% 7% 17% 3% 1%

1st 3rd 2nd 4th 5th

Figure 1.2 Share of Mind Graphical Representation Based on the UAI Survey conducted in the 70 respondents

Sales
3% 17%

1%

Maggi Lucky Me

7%

Knorr Aji Ginisa 71%

Porters Framework (Figure 2)

New Entrant Lucky Me Nam Nam

Competition Suppliers Supermarkets Sari-sari Stores Convenience Stores Maggi (Magic Sarap) Knorr (All-in-One) AjiGinisa (Ginisa Mix) Del Monte (SandosenangSarap) Customer Class C, D and E all over the Philippines

Substitutes All-in-One seasoning mix in cubes Real herbs and spices like onions,garlic,etc..

Porters Framework (Explanation)

Figure 2 shows the five forces of the seasoning industry in Manila. Presented here are the all-in-one seasoning mix industry in competition, the new entrants, the substitutes and the customers and suppliers. This framework will give us an overview of what an industry is made of and the flow of it. With this tool we can better understand and analyze the industry.

COMPETITION:

Maggi Magic Saraps major competitors in the all-in-one seasoning industry are AjiGinisa, Knorr and Lucky Me NamNam. Each of the competitorshave their own

strategies and ways on how they will accomodate their customers. The standing of Maggi in the seasoning industry specifically in all-in-one seasoning mix industry was still on the number one, with the total market share of 59%, which makes them theno. 1.

Knorr is considered as the leading seasoning manufacturer when it comes to sauces, soups and seasonings.But the sales went down due to the coming of Maggi which makes it in the top spot. They have also launched differentready-made sauces for pasta dishes and other Filipino dishes. But they did not make it as the no.1 all-in-one seasoning mix in the market.It is possible that Knorr all-in-one seasoning mix will be out in the market in the future.

Aji Ginisa has a market share of 13% making it the 3rd in the market. The target The advertising strategy of AjiGinisa is also high, they are endorsed by different chef and Sarah Geronimo. But the consumer still patronize and love the advertising strategy of Maggi.

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Lucky Me NamNam is the rank 4 in the market with a market share of 8%. Lucky is known to be the leading noodle manufacturer in the Philippines but when it comes to all-in-one seasoning they didnt make it to the top. They have a good advertising strategy, specifically in tvs, it is endorsed by 4 well-known matinee idol here in the Philippines namely Luis Manzano, Vhong Navarro, Billy Crawford, and John Lloyd Cruz.

Del Monte has the market share of 3% that makes them in the lowest rank. They are also known to cater different ready-made sauces, condiments and seasoning. But the sales of all-in-one seasoning of delmonte went down because of heavy competitors.

NEW ENTRANTS:

The seasoning brand referred as new entrants are those recently established brands in the market today. They are those newly launched brands that are trying to get a share of the market by introducing same line of products.The threat of new entrants porter created affects the competitive environment for the existing competitors and influences the ability of existing firms to achieve profitability. A high threat of entry means new competitors are likely to be attracted to the profits of the industry and can enter the industry with ease. New competitors entering the marketplace can threaten or decrease the market share and profitability of existing competitors and may result in changes to existing product quality or price levels. An example of the threat of new entrants porter devised exists in the graphic design industry. The new entrants in the all-in-one seasoning is the Lucky Me Nam Nam.

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SUBSTITUTES:

The substitutes refer to the food seasoningthat is also available in the supermarkets, sari-sari stores and even in the wet and dry markets nationwide. The allin-one seasoning in cubes and also the real herbs and spices like onions and garlic is referred to as substitute. They consider as substitutes because they are also available in the market where consumers buy the the product. Most of the time other consumers prefer to choose the real herbs and spices to have a real taste in their dishes for them to be sure that the ingredients that they are using is safe and natural.

CUSTOMERS: The industry of the seasoning serves the needs of the Mommies who prepares and cook different meal for their family. This industry caters the Class C, D and E market. They are considered as the budget conscious individual because the seasoning mix is considered the wisest product to use when preparing different meal that they will serve for their families . Mothers and some chefs is one of the customers especially those in a hurry most of time, who need an alternative seasoning if the real herbs and spices like onions and garlic is not available.

SUPPLIERS:

Maggi magic sarap is available at Supermarkets, Sari sari stores and in some Convenience Store. The suppliers have a big part in bringing the product to the consumer. The bargaining power of suppliers is a strong factor for a Noodle industry because this is where consumer find what they need and if it is available.

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Relationship Between the Entries

The arrow between the boxes shows the relationship among the entities. The direction to which the arrow is pointing, illustrates the flow of control or influence of an entity over another.

To further explain the Porters Framework, we can see that an arrow pointing upward from the competition to the new entrants would explain that the competition is intense because of the strong advertising strategy of the newly launched brand.

This shows that new entrants are very dominated by the competition because Maggi have already established and have been patronized by people for a long period of time making it as the no.1 all-in-one seasoning mix in the market.

An arrow pointing to the competition from the substitutes indicates that there are many substitutes available in the market which offer an easy and readily available products because of the flavor and it also affordable.

An arrow pointing to the competition from the suppliers would explain that the company have controlled by the suppliers and it states that the companies are dependent on the supplier. Thats why companies really need suppliers to market their product and to maintain their service to the consumers.

On the other hand, an arrow pointing to the competition from the customers would explain the strong need of the consumers to buy a alternative seasoning mix and a low price when the natural ingredients is not available.. Consumers will continue to look for a alternative seasoning especially for those who didnt have time to buy the natural spices when they forget to buy it..All-in-one seasoning mix is readily available anywhere and also has a low price.

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Key Success Factors In 2011, sauces, dressings and condiments manufacturers continued to push allin-one products capable of meeting consumer demands for convenience and value for money. Nestle was one of the pioneers of this trend in the Philippines, and following the initial success of its Maggi Magic Sarap, the review period saw several other manufacturers follow suit with the launch of their own all-in-one variants. Unilever Foods Philippines (CMC), for example, introduced Knorr Real Sarap , which is also an all-inone seasoning mix. Lucky Me Nam Nam, also an all-in-one seasoning mix that can also be used to marinade meat or fish, season soup or for sauting purposes. But Maggi Magic Sarap was the pioneer of all-in-one variants and because of the great advertisement in tv commercial it became a big thing when it comes to seasoning mixture, also because of the well-known artist that endorsed the product, the consumer patronized it. A UAI ( Usage, Attitude, Influence ) Survey was used in order to know the all-in-one seasoning consumption of the buyers. According to the accumulated results of the UAI Survey conducted to the consumer who uses all-in-one seasoning mix when cooking. It shows that Maggi is considered as the market leader and Del monte is the low performer. Table 2 shows the ranking of the all-in-one seasoning brand according to consumer preference. Table 2 Rankings of the All-in-One Seasoning Brand according to UAI Survey conducted to 70 respondents

ALL-IN-ONE SEASONING BRAND & THEIR MANUFACTURER 1. ( Nestle Inc. ) Maggi 2. 3. 4. 5. ( Monde Corp.) Lucky Me ( Unilever Inc. ) Knorr (Ajinomoto Corp.) AjiGinisa ( Del Monte Corp. ) Del Monte

MARKET SHARE 84% 3% 6% 7% 0%

RANK 1st 4th 3rd 2nd 5th

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Part of the UAI survey allowed the respondents to rate the all-in-one seasoning brand as factor in choosing and continued patronize of their chosen product. Respondents were given several seasoning factors or criteria and they rate it according to Yes or No or if that factor is available on a brand or not. Table 2.1 will show the result that several factors are important reasons of respondents for their product loyalty.

Table 2.1 Factors of an all-in-one seasoning brand considered as the reasons for continued patronage

LUCKY FACTORS MAGGI ME KNORR

AJI GINISA

DEL MONTE

1. Affordable Price

YES

YES

YES

YES

NO

2. Appealing Advertisement

YES

YES

NO

YES

NO

3. Impressive Packaging 4. Different Varieties /

YES

YES

NO

YES

NO

Flavors 5. Widely Available in stores Nationwide

NO

NO

YES

NO

NO

YES

YES

NO

YES

NO

Top 3 key success factors they considered are the following: First , affordable price acceptable to the budget of the buyer. Second, appealing advertisement that will convince the buyer. Third, choices in different varieties and flavors.

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According to the respondents, the most important factor they consider in purchasing the brand is the affordable price. Most of the consumer budget their money for a much important things, so they wont buy a product with a high price. They will find a product that has a lower price yet also a high quality product. It is acceptable because based from the UAI survey, most of the respondents income ranges P 5,000 and below, so we cant expect them to buy in exceed of price for just an all-in-one seasoning mix. Table 3 will shows the price comparison of different brands. Aside from the affordable price it is very important to the respondents that the product is widely available in stores nationwide. It is a must that the product can easily be found in every market shelves to continue patronizing the products.

Table 3 Pricing Comparison of the all-in-one seasoning brands

LUCKY MAGGI ME KNORR

AJI GINISA

DEL MONTE

8 grams

3.50

3.50

2.00

4.00

6.00

50 grams

14.00

NONE

NONE

16.75

NONE

100 grams

29.95

NONE

NONE

34.25

NONE

Different choices in varieties and flavors is the third key success factor, because consumer are always looking for alternatives choices. Knorr is well known in introducing a lot of flavors and brands, when it comes to seasoning, they never limit their products on just one flavor.

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Respondents learned new product innovation through the television according to the UAI survey, most especially in between the commercial breaks when watching their favorite shows. Respondents buy the product daily, some buy the product once a week. Lastly, respondents didnt really care about the packaging of the product. Theyre more focus on the price, varieties and availability of the product more than the packaging.

Competitors Fact Sheet

BRAND MAGGI PRICE VARIETIES DISTRIBUTION ADVERTISEMENT NAPA SEAL MASS APPEAL Low Limited Wide Intense No Yes

LUCKY ME Low Limited Wide Intense Yes Yes KNORR Low Many Narrow Lacking Yes No

AJI GINISA Low Limited Wide Intense No Yes

DEL MONTE High Limited Narrow Lacking No No

Critical Success Factor Consumer always see to it that the food products they will buy is safe to eat. They want to make sure that the food that they will feed to their family wont harm their health. Filipinos are health conscious. Most of us dont prefer artificial preservatives on our food. We dont want to be hesitant when eating or even using products in our dishes. One of the downside of Maggi is that it still doesnt have a NAPA seal even though they always says that Maggi comes from natural ingredient.. They must focus on having their NAPA seal in order for the buyer not to be hesitant on buying Maggi products..

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V. OPPORTUNITY AND ISSUE ANALYSIS Company History Brief History Nestle Philippines Although Nestl products were already available in the Philippines as far back as 1895, it was not until 1911 when The Nestl and Anglo Swiss Condensed Milk Company was established in the country, with its first sales office in Calle Renta, Binondo. The Company was forced to suspend its operations during World War II, but soon made a comeback after Liberation, under a new name: Filipro, Inc. It continued to import products such as MILO, NIDO powder milk, MILKMAID and NESCAF from other countries. In the early 1950s, Filipro encountered difficulties when the Philippine government imposed import control. Due to lack of imported products to sell, it was forced to become a distributor of peanut butter, napkins, fruit preserves, and patis (fish sauce) just to keep its operations going. In 1960, Nestl S.A.and San Miguel Corporation entered into a partnership resulting in the formation of Nutritional Products, Inc. (Nutripro). In 1962, Nutripros first factory started operations in Alabang, Muntinlupa to manufacture NESCAF. In 1977, Filipro, Inc. and Nutripro Inc. merged under the name Filipro, Inc. In 1986, Filipro, Inc. changed to its present name as Nestl Philippines, Inc. Nestle now has manufacturing facilities in Cabuyao (Laguna), Cagayan de Oro, Lipa (Batangas), and Pulilan (Bulacan) to meet the growing demand for Nestl products in the country. Soon to rise is another factory in Tanauan, Batangas. In 1991, Nestl pioneered the AIJV (ASEAN Industrial Joint Venture), a regional complementation program. The Company participated in this program with the production of breakfast cereals at the Nestl Lipa Factory, for export to ASEAN markets. Today, three of the Nestle factories in the Philippines Lipa, Cabuyao, and Cagayan de Oro -- serve as ASEAN Supply Centers to meet the requirements of Nestle markets in the region. In late 1998, Nestl Philippines became a wholly owned subsidiary of Nestl S.A., following the latters purchase of all of San Miguel Corporations equity shareholding in the Company.

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Vision of Nestle

At Nestl, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestl products bring consumers the vital ingredients of taste and pleasure. As consumers continue to make choices regarding foods and beverages they consume, Nestl helps provide selections for all individual taste and lifestyle preferences. Research is a key part of our heritage at Nestl and an essential element of our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life

Mission of Nestle Nestl strives to be a leader in nutrition, health and wellness, with the belief that good food is central to health and wellness. At the Nestl Research Center, nutrition research meets food innovation to bring consumers of all ages and stages of life, foods and beverages that contribute to health and wellness, while offering remarkable taste and convenience.

Brief History of Maggi MAGGI owes its name to founder Julius Maggi (1846 - 1912), entrepreneur and inventor of the first product to bear the brand - MAGGI Soup Seasoning. In 1883 Julius Maggi had a vision: good-tasting and nutritious food accessible to all. More than 120 years later this vision is more alive than ever for the brand that bears his name. Globally, MAGGI provides a wide range of flavour solutions from basic bouillons to seasonings, soups and recipe mixes for the professional environment. Everyday ,

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operators are cooking a wide variety of meals with the help of MAGGI products. Nestle goal is to assist us, feel good about the food you prepare by giving

you reliable, efficient solutions and easy to apply ideas for great tasting, balanced meals. Maggi is a Nestl brand of instant soups, stocks, bouillon cubes,

ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. He quickly became a pioneer of industrial food production, aiming to improve the nutritional intake of worker families. Maggi was the first to bring protein-rich legume meal to the market, and followed up with a ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today. In parts of Europe, Mexico, Malaysia, Brunei, German-speaking countries and the Netherlands, Czech Republic, Slovenia, Slovakia, Poland and France, "Maggi" is still synonymous with the brand's "Maggi-Wrze" (Maggi seasoning sauce), a dark, hydrolysed vegetable protein based sauce which is very similar to East Asian soy sauce except that it does not actually contain soy. It was introduced in 1886, as a cheap substitute for meat extract. It has since become a well-known part of everyday culinary culture in Switzerland, Austria and especially in Germany. It is also well known in Poland and the Netherlands. In 1947, following several changes in ownership and corporate structure, Maggi's holding company merged with the Nestl company to form Nestl-Alimentana S.A., currently known in its francophonehomebase as Nestl S.A.. Today, Maggi is known throughout the world for its dry soups, seasoning sauce and instant noodle dishes. In New Zealand Maggi Onion Soup mix is often combined with reduced cream to create an Onion Dip for Potato Chips that has come to be generally accepted as a Kiwi favorite. In Indonesia, Thailand and Vietnam Maggi seasoning sauce is a popular condiment, and the bottles are familiar sights on restaurant tables.

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Market Needs: Maggi all-in-one seasoning provides its customers with high-quality seasoning mix that are unique and captures the taste of every Filipino. It can flavor a variety of dishes from soups, fried, stir-fried and stewed. But the customer seeks the NAPA seal, because most of the Filipino today are health conscious. They dont want artificial preservatives in their diets. People prefer to have high-quality and much safer product that they can use without any hesitations.

SWOT Analysis A study is conducted to analyze the SWOT analysis of the 3 brands in seasoning industry to fully understand the advantages and disadvantages of the product. The following SWOT analysis captures the key strengths and weaknesses inside/ outside the company, and describes the opportunities and threats.

Maggi Magic Sarap Strengths Market leader in all-in-one seasoning here in the Philippines. Brand loyalty; because Maggi is under the Nestle Company that creates high quality product. Distribution Channels; can be distributed in all leading supermarkets nationwide, retailers and even on a small sari-sari stores. Innovative flavors; has a complete flavor of meat, garlic, onion, spices and taste enhancers. The only all-in-one all-purpose seasoning in the market that can flavor a variety of dishes from soups, fried, stir-fried and stewed. Highest Advertising Share; It is advertised on billboards and on tv commercials that is endorse by many well known artists here in the Philippines. The price is very affordable.

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Weaknesses Health Related Issues; despite the quality of the product its still doesnt have NAPA seal. New entrants, competitors that have very much similar product. Imitations of the product; the consumer may be hesitant on buying the product because of the news. Limited varieties and flavors. Opportunities More television advertisement on cooking shows. Threats Strong presence of heavy competitors. Imitations of Maggi Magic Sarap that may results on decreasing the product market share.

Lucky Me NamNam Strengths Distribution Channels; can be distributed in all leading supermarkets nationwide, retailers and even on a small sari-sari stores. Advertising Share; It is advertised on billboards and on tv commercials that is endorse by many well-known heartthrobs here in the Philippines. Weaknesses Limited varieties and flavors. New entrants, competitors that have very much similar product. Opportunities More television advertisement on cooking shows. Add a celebrity mom endorser because seasoning mix are usually used by moms. Threats Strong presence of heavy competitors.

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Knorr All-in-One Seasoning Strengths Brand loyalty; because Knorr is known to creates high quality product. Has a variety of flavors. Already has a NAPA seal. Weaknesses Less advertisement. Limited distribution. Opportunities More television advertisement including commercials and sponsorships on cooking shows. Wide distribution on different suppliers. Threats Strong presence of heavy competitors. Has a possibility that the product will be phase out soon.

AjiGinisa Strengths Distribution Channels; can be distributed in all leading supermarkets nationwide, retailers and even on a small sari-sari stores. Has a complete flavor of meat, garlic, onion and other spices. Advertising Share; It is advertised on billboards and on tv commercials that is endorse by a well-known celebrity and other celebrity chef here in the Philippines. Weaknesses Limited varieties and flavors. New entrants, competitors that have very much similar product. Opportunities Focus on having a NAPA seal. Add some varieties and flavors.

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Threats Strong presence of heavy competitors.

Del Monte SandosenangSarap

Strengths Brand loyalty; because Del Monte is known to creates high quality product. Weaknesses Poor advertisement.-Lack in promotions and advertisement. New entrants, competitors that have very much similar product. Poor distribution. Poor in product awareness. Opportunities More television advertisement including commercials and sponsorships on cooking shows. Wide distribution on different suppliers. Make some promotions, discounts, & freebies. Threats Strong presence of heavy competitors. Has a possibility that the product will be phase out soon.

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Critical Issues

Maggi Magic Sarap is facing a very critical issue as of this moment because of the recently confiscated Maggi Magic Sarap imitations. I believe that it will probably shaken up their market position due to this negative issue. Here is the news concerning the Maggi Magic Sarap imitations: The Philippine National Police Criminal Investigation and Detection Group warned the consumer to BEWARE of counterfeit Maggi seasoning products being sold in public markets across the country. PNP-CIDG chief Director Samuel D. Pagdilao Jr. issued the public advisory of some P5,000 worth of fake Maggi seasoning packs in separate operations in Rizal and Batangas provinces. Members of the CIDG Anti-Fraud and Commercial Crime Division (AFCCD), accompanied by representatives from Nestle Philippines Inc. last week raided several stalls at the vicinity of Antipolo, Montalban and Binangonan Public Market in Rizal and at the Padre Garcia Public Market in Batangas and confiscated assorted packs of fake Maggi Magic Sarap seasoning products. AFCCD chief Supt. Benjamin Acorda Jr. said all the confiscated products were brought to abounded warehouse in Paraaque City. He added that cases for violation of the Anti-Unfair Competition Law are being prepared by his men against the owners of the establishments where the fake Maggi products were confiscated. The authority committed to safeguard the health of the public against the possible ill effects of using fake seasoning products by unsuspecting consumers.

With this issue, the consumer will probably be hesitant in buying Maggi Magic Sarap, because theyre not sure if the seasoning that they are going to buy is fake or not.

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VI.

MARKETING OBJECTIVES To support the Maggis mission and vision, and also the consumers needs and wants,I came up with the following marketing objectives:

For the product to have a 100% consumer awareness, the company should sponsor on some cooking shows so that the product will standout and will be known more by the public especially all the people who loves to cook.

The product canstay as the market leader in seasoning mix by increasing more the advertising strategy, so that it will be consistent and will stay as the market leader, because of this the consumer will always remember that the product is readily available anywhere and anytime they want.

To emphasize the features of the productthe company needs to modify the product specification such as the NAPA seal, this will assure the consumer that Maggi products are all safe and of high quality.

To promote the product as a healthy food among mothers and single working professionals. To maintain the price, in order for the consumer to continue patronizing the product. To assign more distributors / increase distribution level.

VII.

FINANCIAL OBJECTIVES To increase the sales for at least 5% more every year. To reduce the cost of goods sold for 5% every year.

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VIII.

MARKETING STRATEGY

Maggi seasoning mix will continue making every meal taste like magic as shown to all their advertisement on television as this seems to be working well. To prevent competitors from getting a big market share on the seasoning industry, product

innovation is required as otherwise Maggi may get stereotyped as an unexciting product and just a common seasoning mix just like any other product in the line. To deal with the consumer wants, Maggi has to concentrate on having a NAPA seal and having a unique yet tasty seasoning mix in the country. The market is very sensitive to taste and rejects any flavor or ingredients that is not good to the health of many peoplethats why food certification from Department of Health and Food and Nutrition Research Institute is a MUST. On the other hand Maggi has to deal with thenegative perception that Maggi has a counterfeit Maggi seasoning products being sold in public markets across the

country, a major threat in the current scenario. Both these problems can be tackled bypositioning Maggi as a food seasoning with nutritional value. With a good product quality, Maggi will still emphasize on the advertising especially in television.We will also emphasize the taste itself and will slowly introduce innovation in the product, by offering varieties of flavors and by having the NAPA seal on the product, assuring the consumer that Maggi is a healthy food seasoning product among others. Target Markets:

The primary target markets includes individuals belongs to the Class D and E market, especially those mother who prepares food for their family. Group of families who usually budget conscious and prefer to buy cheap food seasoning even the quality is not that good. We will prioritize that to give them a gualitable seasoning product and also very affordable.The income of those buyers ranges from P 5,000 and below. Consumer who usually buy the seasoning mix in the supermarket and sari saristores which is the wide source of distribution.

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Market Trends:

The market trend for food seasoning mix in the Philippines today depends on what is available and affordable to many people. It is by producing a cheap product but have a superior quality flavors. Positioning the product to the masses will win the sales of the product offered to the market.

Focusing on the production and the product concept of marketing in order to produce a best product that every Class D and E market can afford to buy.

Most of the patron consumers usually look for a product that has a NAPA Seal, approved by the DOH, to ensure the health of their family will be in good hands because of the food certification that it doesnt have added preservatives.

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IX.

MARKETING MIX

Product Strategy The target market wants a healthy and of high quality product yet affordable price. We can replace some of the ingredients that makes the reason why it doesnt have a NAPA seal. Most of the consumers are health conscious, they want their family to be comfortable with the foods that they prepared without taking the risk of their health. With this innovation, most mommies will surely patronize our products. We can just replace the flavor enhancer and add another natural spices.

Price Strategy

The affordability of the product is the most important

factor that a consumer

considers in buying the food seasoning mix. People who usually earns P 5,000 and below amount, considered as affordable to them if the price of the product matches their income. No matter how good or superior the product, consumer will still reject to buy it if they found out that the price is higher than the standard price being offered in the market.

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Here the Pricing Comparison of Maggi against its competitors and the comparison among other competitors.

BRANDS

PRICES

DIFFERENCES

ANALYSIS

1. Market Leader: Maggi Challenger: AjiGinisa P 4.00 P 3.50 P .50 cents The challenger is P .50 cents higher than Maggi

2. Market Leader: Maggi Challenger: Lucky Me P 3.50 P 3.50 NONE

The challenger Lucky Me (New Entrant) has the same price with Maggi.

3. Market Leader: Maggi Challenger: Knorr P 2.00 P 3.50 P 1.50 The challenger has the lowest price in all brands.

4. Market Leader: Maggi Challenger: Del Monte P 6.00 P 3.50 P 2.50

The challenger is highest price in all brands. P 2.50 much higher than Maggi.

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Place or Distribution Strategy

Strengthen more the distribution of the product.

Assign more distributors: Supermarket is one of the main source of sales of seasoning mixes. Most of the consumers often go to supermarkets once or twice a week. So it will be effective to use this place for sales and also promoting the product.

The product can be distributed by major distributors in the country through the help of the Philippine AmalgatedSupermarkets Association of the Philippines.

We can seek alliance to this organization to carry the Maggi products within their supermarkets,.

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Promotion Strategy

Strengthen more the advertising and promotions

Increase more the advertising budget: The budget for advertising is considered to be one of the most expensive expense that a company can get in order to make the people aware of an existing or new product. For Maggi, we dont need too much expensive advertising for the existing product , all we have to do is to increase by at least 5 % on the budget, so that we can use at least the newspaper to advertise the product again into the market.

Introduce the product on some cooking shows: Most of the mommies out there loves to watch cooking shows specifically on television. So, it is an advantage to a product to be included and promoted in different cooking shows. This will be one of the big factor for the mommies to patronize a product. If they saw a specific product like Maggi Magic Sarap used by the chef on their favorite cooking shows, they will definitely follow what the chef did, and will use it on their personal dishes.

Do give some freebies or discount to the first time shopper & also to the regular customer: Discounted products is what the consumers are waiting for.This will help the consumer to have an awareness of the product. After the discounted period, they will then realize that it is a good product and they will get used to it. Even it is not discounted they will still patronized it because you give them the time to first try the product on a low price and will then be satisfied with it. It will help the company make an intensive promotion to the first time shopper or repeat shopper of the product. They will do anything to make the turnover of the product to move so fast.

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X.

IMPLEMENTATION AND CONTROL

Sales Action Plan

Period Date

Action

Responsible

Budget

Expected Output

Jan - April

Bundled Package with other Maggi ProductsLimited time only

Promotion Coordinator

P 50,000

Increase sales by 5%

May - Sept.

Monitoring the Shelves where the product is displayed. Increase the no. of merchandiser so that the shelves wont become empty.

Merchandising

P 35,000

Also will increase the sales by 5%..

Oct. - Dec.

Providing Assistance to Supermarket.

Supermarket Coordinator

P 20,000

Established an Assistance area in the supermarket

TOTAL BUDGET:

P 105,000.00

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Advertising Plan

Period Date

Action

Responsible

Budget

Expected Output

Jan - April

Discounted prices and freebies.

Sales Coordinator

P 25,000

Increase the Sales

May - Sept

Rent display spaces in supermarkets

Promotion Coordinator

P 20,000

Increase Product Awareness

Oct - Dec

Designating Promodizers in the Supermarket

Team Leader

P 35,000

Strengthen Sales Force

TOTAL BUDGET:

P 80,000.00

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XI.

FINANCIAL PROJECTIONS

Financial Statement of Maggi Nestle Sales Volume in Units: P 20,000,000 (Assume number of units sold for 2012)

2012

2013

2014

Sales Cost of Goods Sold

P 11,800,000

12,390,000

13,009,500

P 235,000

246,750

259,087.50

Contribution Margin

P 11,565,000

12,143,250

12,750,412.50

Less: Marketing Expense Selling Expense Administration Expense

P 80,000

84,000

88,200

P 105,000 P 125,000

110,250 131,250

115,762.50 137,812.50

Net Income before Tax Tax Expense Net Income After Tax

P 11,255,000 P 3,601,600 P 7,653,400

11,817,750 3,781,680 8,036,070

12,408,637.50 3,970,764 8,437,873.50

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2015

2016

2017

Sales Cost of Goods Sold

P 13,659,975

14,342,973.75

15,060,122.44

P 272,041.875

285,643.9688

299,926.1672

Contribution Margin

P 13,387,933.13

14,057,329.78

14,760,196.27

Less: Marketing Expense Selling Expense Administration Expense

P 92,610

97,240.50

102,102.525

P 121,550.625 144,703.125

127,628.1563 151,938.2813

134,009.5641 159,535.1953

Net Income before Tax Tax Expense Net Income After Tax

P 13,029,069.38 P 4,169,302.202 P 8,859,767.18

13,680,522.84 4,377,767.309 9,302,755.531

14,364,548.99 4,596,655.677 9,767,893.313

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Total number of Pouches sold for 2013 Based on the food seasoning price of P 3.50 in the industry 12,390,000 pouches for the year (Assume no. of pouches)

Changes in Sales Volume:

2013

2014

2015

2016

2017

12,390,000

13,009,500

13,659,975

14,342,973.75

15,060,122.44

5%

5%

5%

5%

5%

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XII.

ANNEXES

All Products Dairy Health and Nutrition Solutions Bear Brand o Bear Brand Choco o Bear Brand Lusog Busog o Bear Brand Sterilized Coffee-Mate o Coffee-Mate Original o Coffee-Mate Lite Nesvita Nido Liquid Beverages and Dairy Culinary Chuckie Milo Nescafe o Original o Strong and Rich o Classic o Decaf o Gold o Protect Nestle All Purpose Cream Nestle Fresh Milk Nestle Low Fat Milk Nestea Food Maggi Magic Sabaw MAGGI MAGIC SARAP Maggi Magic Sinigang Maggi Mami Noodles Maggi Oyster Sauce Maggi Savor Ice Cream Chuckie Wacky Duo Kit Kat Bites Heaven Cookie Dough Pleasure Kimy Crazy Banana Drumstick and Drumstick Loaded Nestle Ice Cream Butterfinger Ice Cream Temptations Zero Fat Ice Cream Pops Sorbetes Chilled Dairy Fruit Selection Yogurt Fruit Selection Yogurt with Jelly Premium Dairy Breakfast Cereals Clusters Cookie Crisp Corn Flakes Fitness Honey Stars Koko Crunch & Koko Crunch Duo Milo Snow Flakes Confectionery Baby Ruth Butterfinger Foxs KitKat Polo Infant Nutrition Cerelac Gerber Petcare Alpo Purina

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Tally of Survey: (Total of Respondents: 70)

Question # 1: How much is your monthly income? A. below P 5,000 B. P 5,000 P 10,000 C. P 10,000 P 15,000 D. P 15,000 P 20,000 E. P 20,000 P 25,000 F. P 25,000 and above

No. of Respondents 33 23 23 12 2 2

Question # 2: When thinking about all-in-one seasoning mix, what specific brand comes first to your mind? A. Maggi Magic Sarap B. Lucky Me NamNam C. Knorr all-in-one D. Aji Ginisa E. Del Monte Sandosenang Sarap F. Others (pls. specify)

No. of Respondents 50 5 12 5 1 2

Question # 3: Where did you learn about this brand? A. Television B. Radio C. Newspaper / Magazines D. Supermarket, Sari Sari Stores E. Relatives / Friends/ Neighbors F. Internet

No. of Respondents 64 0 2 2 2 0

Question # 4: What brand of all-in-one seasoning mix do you usually use? A. Maggi Magic Sarap B. Lucky Me NamNam C. Knorr all-in-one D. Aji Ginisa E. Del Monte Sandosenang Sarap F. Others (pls. specify)

No. of Respondents 44 6 12 9 0 2

Question # 5: How long have you been patronizing this brand? A. Less than a month B. 1 month 6 months C. 6 months 1 year D. 1 year 2 years E. 2 years 5 years F. more than 5 years

No. of Respondents 7 7 23 25 9 3

Question # 6: How often do you usually buy for this allin-one seasoning mix? A. Daily B. Once a week C. Twice a week D. Monthly E. Every 6 months F. Others,(pls. specify)

No. of Respondents

31 20 11 7 0 1

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Question # 7: In buying your chosen brand, what buying factors can you considered as the reasons for continued patronage of this brand? A. Affordable Price B. Appealing Advertisement C. Impressive Packaging D. Different varieties and Flavors E. Widely distributed in stores nationwide

No. of Respondents

44 24 7 11 5

Question # 8: What specific brand advertisement have you seen, heard or read for the past 6 months? A. Maggi Magic Sarap B. Lucky Me NamNam C. Knorr all-in-one D. Aji Ginisa E. Del Monte Sandosenang Sarap F. Others (pls. specify)

No. of Respondents 43 13 13 3 0 2

Question # 9: . Have you ever been tempted to use other brand than your current brand? A. Yes B. No

No. of Respondents 58 11

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Question # 10: Referring to question # 9, If Yes what is the name of that brand? A. Maggi Magic Sarap B. Lucky Me NamNam C. Knorr all-in-one D. Aji Ginisa E. Del Monte Sandosenang Sarap F. Others (pls. specify)

No. of Respondents 23 12 11 17 1 3

Question # 11: What do you usually do whenever you didnt find your chosen brand in the market? A. Buy whatever brand is available B. Look for the brand in another store C. Postponed buying

No. of Respondents 22 38 10

Question # 12: What brand do you think is the market leader in the all-in-one seasoning mix industry today? A. Maggi Magic Sarap B. Lucky Me NamNam C. Knorr all-in-one D. Aji Ginisa E. Del Monte Sandosenang Sarap F. Others (pls. specify)

No. of Respondents 60 2 3 4 0 0

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Question # 13: How about the market looser? A. Maggi Magic Sarap B. Lucky Me NamNam C. Knorr all-in-one D. Aji Ginisa E. Del Monte Sandosenang Sarap F. Others (pls. specify)

No. of Respondents 2 5 1 8 54 0

Question # 14: Have you heard about Maggi Magic Sarap? A. Yes B. No

No. of Respondents

68 2

Question # 15: Have you tried using Maggi Magic Sarap? A. Yes B. No

No. of Respondents

53 17

Question # 16: Referring to question #15, If Yes, hows your experience using Maggi Magic Sarap on your favorite dishes? A. Satisfied B. Not Satisfied C. Very Satisfied D. Quite Satisfied E. No Answer (They answered NO to question #9)

No. of Respondents

12 0 29 10 19

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