TABLE OF CONTENTS

Chapter I. INTRODUCTION……………………………………………………………………..4
 1.1 Coffee in the Philippines………………………………………………………………4

1.2 Coffee Segmentation…………………………………………………………………..5

1.2.1 Roasted………………………………………………………………………6

1.2.2 Soluble……………………………………………………………………....7

1.2.3 Ready-to-Drink……………………………………………………………...7

1.2.4 Specialty Coffee……………………………………………………………..8

1.3 Profitability of Coffee Industry in the Philippines…………………………………….8

Chapter II. INDUSTRY BACKGROUND………………………………………………………10

2.1 Nestlé and Nescafé Coffee Inc……………………………………………………….13

2.1.1 Geographic Market and Strategic Behavior………………………………..14

2.1.2 Supply Chain……………………………………………………………….15

2.1.3 Capacity……………………………………………………………………16

2.1.4 International Market……………………………………………………….16

2.1.5 Domestic Market…………………………………………………………..16

2.1.6 Brand and Product Portfolio……………………………………………….17

2.1.7 Sales per Brand 2016………………………………………………………21

2.2 Universal Robina Corporation – Great Taste Coffee………………………………...21

2.2.1 Product Description………………………………………………………..25

2.2.2 Supply and Chain Capacity………………………………………………..27

2.2.3 Geographic Market and Strategic Behavior………………………………………27

2.3 Intensity of Rivalry…………………………………………………………………28

Chapter III. THE INDUSTRY ANALYSIS…………………………………………………….32

3.1 Macro Environment – Worldwide…………………………………………………..32

3.2 Micro Environment………………………………………………………………….32

3.2.1 Consumers…………………………………………………………………32

3.2.2 Competitor…………………………………………………………………33

3.2.3 Suppliers…………………………………………………………………...36

3.2.4 Employees…………………………………………………………………38

3.2.5 Government Regulation …………………………………………………..39

3.2.6 Taxes and Regulatory Environment……………………………………….40

3.3 Market Segment Share……………………………………………………………….41

3.3.1 Breakdown of Market Size and Market Value…………………………….43

3.4 Market Leadership and Economies Scale……………………………………………44

3.5 Demand and Pricing………………………………………………………………….45

3.6 Changes in Consumer Tastes and Preferences……………………………………….46

Chapter IV: References…………………………………………………………………………..48

Chapter I

I. INTRODUCTION
1.1 AXE OR LYNX IN THE PHILIPPINES

Axe or Lynx is a brand of male grooming products, owned by the British- Dutch company
Unilever and marketed towards the young male demographic. It is known as Lynx in the
United Kingdom , Ireland, Australia, New Zealand and China. In other countries it is
known as Axe.

Lynx was launched in France in 1983 by Unilever. It was inspired by another of Unilever's
brands, Impulse. Unilever introduced many products in the range, but were forced to use the
name Lynx in the United Kingdom, Ireland, Australia, and New Zealand due to trademark
issues with the Axe name. In addition, some countries (such as South Africa) introduced the
brand as EGO. [3]

Scents have evolved over time. From 1983 until about 1989, the variant names were
descriptions of the fragrances and included Musk , Spice ,

Amber, Oriental , and Marine . From 1990 until 1996, geographic names for fragrances were
used. In 2009, the brand launched an eight-centimetre container called the Axe Bullet. The
brand has also extended into other areas.

Most scent names usually have a shower gel to accompany them and sometimes an
antiperspirant/deodorant stick and an aftershave lotion. The Axe Shampoos come in three
different sizes, regular size, travel or sample size of and XL bottles. Axe also ships a shower
scrub tool called the Axe Detailer.

Axe also launches limited edition variants from time to time that may be on sale for a few
months or over a year.

From the 1990s, Axe advertisements portrayed various ways the products supposedly helped
men attract women. In 2003, the advertising in the UK for the Pulse fragrance showed how it
supposedly gave "geeky" men the confidence to woo women with dance. In 2005, Consumer
Expert Dr. Vince Wong, CEO of Insights Interactive, was hired to help explore cross cultural
behavioral motivations of their young male adult consumers. This fed into development of
the brand globally, resulting in award-winning global communication campaigns. [4] This was
followed by Touch , Unlimited,[5] Clix,[6] and in 2007, Vice ,[6] which was marketed on a
theme of making "nice" women become "naughty".

1.2 Axe deodorant’s target segmentation:

A. Geographic:
  Urban

B. Demographic:

 Age — 16 to 35;

 Gender — male;

 Income — middle & high income;

 Family life cycle — single

C. Psychographic:

 Life-style — sociable

 Personality — extroverted

D. Behavioral:

 Occasions — regular occasion

 Benefits — quality & economy

 User status — potential user, regular user

 Usage rate — medium, heavy

 Loyalty status — strong, absolute