FUN TIME!

CAYETANO|GUIAMAN|HASIM|HEQUILAN|MORENTE
MOZAR|MULATO|SALIK|YTANG
COMPANY
BACKGROUND
➤ AFI is a small company
specializing in the
production of processed
shrimp paste (bagoong
alamang) under the name
Neptune.
➤ Owned and managed by John
“Tex” Macapagal.
➤ Started the business in 1988.
ORGANIZATIONAL CHART OF AFI
 THE PRODUCT
➤ Shrimp paste or “bagoong alamang” is considered versatile
product that goes with any Filipino dish
➤ It is considered generic brand which consumer cannot
distinguish taste from other brands
➤ AFI perfected a unique and hard to imitate formula
➤ Low-cost & low-priced leader in the industry
➤ Seasonal raw materials that needs good forecasting
OPERATION
➤ Focused on shrimp paste
(neptune) product only
➤ Intensive distribution channels
which includes intermediate and
direct wholesalers/dealer buy not
sari - sari store level
➤ Exclusive distributorship with
Davao Duck Enterprise but with
mutual trusts basis
➤ Companies who avail the tolling
manufacturing of AFI sells their
products in a different label and in
a much higher price. 30% for
export and thrice the price for
those sold in luzon area.
MARKET
POSITIONING
➤ Market of Neptune in the Philippines
is segmented in major regions which
is Luzon, Visayas, and Mindanao.
➤ In Mindanao, it is distributed to
Davao City, General Santos City,
Cagayan de Oro, Butuan, and
Zamboanga.
➤ In Luzon, some brands are
manufactured by AFI which is sold in
supermarkets.
➤ In Visayas, it is an untapped market
due to the idea that these region
consists mainly coastal towns which
are abundant with seafood products.
COMPETITION
➤ No major brands nationality when
it comes to shrimp pastes product
➤ In Mindanao alone, Neptune,
Lasap and Frisco dominates the
market with 30, 30 and 20
percent respectively with the
remaining 10% going to the other
small players
➤ Other well known brands offering
the same product are Barrio
Fiesta, Kamayan, Chowking, SM
Bonus, and other imported
brands like Lee Kum Kee and
Tanjung Malacca
ADS AND PROMOS
➤ No specific promos are given
by AFI to wholesalers
➤ Monetary support is used for
promotions on the end
consumer level
➤ Davao Duck Enterprises
pushes the product with in-
store promotions or “hard
selling”
OPPORTUNITIES
➤ SM Bonus offering a definite
proposal to order a minimum
number of orders in exchange
for exclusivity in the Metro
Manila are and a 60-day term
from delivery date.
➤ Luzon and Visayas Market
➤ Adam Teves’ proposal for a
small scale backyard
operation for processed
coconut items which utilizes
similar equipment and
packaging material used in
shrimp paste.
 STUDY
QUESTIONS
1. DESCRIBE THE MARKETING ENVIRONMENT
OF AQUARIUS FOOD INDUSTRIES. WHAT ARE
THE OPPORTUNITIES AND THREATS?
2. WHAT ARE THE STRATEGIC AND
OPERATIONAL ISSUES THAT AQUARIUS FOOD
INDUSTRIES IS FACING?
To continue the toll manufacturing arrangement with other brands?

➤ Total sales of their brand are compromised.

➤ This arrangement tends to be more volatile that depends essentially on the
availability of shrimp fry.
➤ Toll manufacturing in Luzon is thrice of its price.
➤ Stretching payment terms
In the long run, AFI has to have a more varied product line to
keep up with competition and allocate fixed cost over more
output.

➤ The process of making the shrimp paste is the same as

making these products.
3. GIVEN THE ISSUES IN QUESTION NUMBER 2, WHAT
ALTERNATIVES ARE AVAILABLE TO THE COMPANY?
➤ To continue or not the toll manufacturing the product of Golden
Hands and other toll arrangements as it compromised the total
sales of the Neptune Brand.
➤ They may choose to sell their product directly in Luzon to have
the advantage of getting the higher price and gaining more
revenues or to establish a new variety of products that can
probably increase their sales.
➤ To pursue the partnership with Adam Teves in extending the
product line of AFI.
4. WHAT ALTERNATIVE AND COURSES OF ACTION
WOULD YOU RECOMMEND? WHY?
➤ To continue having the toll manufacturing with other brands
although it compromised its total sales, it can be resolved by a
good forecasting technique that can be able to anticipate the
right amount of product to manufacture during a certain period.
➤ AFI may also extend their production to Luzon and sell their
product thrice the price and hire logistics to distribute the
product.
➤ To extend their product line to different flavors of bagoong.
➤ As of now, AFI must not pursue Adam Teves’ proposal unless
a study is conducted and result to favorable outcome.
FUN TIME!