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Marketing plan for maggi magic sarap


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Marketing plan for maggi magic sarap

  1. 1. Marketing Plan For Maggi Magic Sarap(All-in-One Seasoning)
  2. 2. II. EXECUTIVE SUMMARYMaggi Magic Sarap is the market leader in the all-in-one seasoning industry. They havebeen consistently positioned at the top because of the customer who patronize theproduct , despite the presence of other brands.To improve quality by having a NAPA seal , to increase distribution levels so thateveryone can buy maggi anywhere, and to maintain the highest advertising share is thepurpose of this plan.Current Situation:2012 Share of Market ---------------------------- 59% in the food seasoning industrySales Volume -------------------------------------- increased from the previous yearProfit -------------------------------------------------- increased in profitBrand Awareness ---------------------------------- 71% ( UAI Survey) , Maggi‟s shares in themarketProduct: Maggi has the same grams with other competitors.Price: Much lower than other competitors but much higher than Knorr when it comes topricing.Promotion: They don‟t have any regular promotions like discounts, raffle or otherpromotional strategy to increase the sales but the sales is still increasing, because oftheir highest advertising share.Place: The consumer can buy the product in any Supermarkets, Grocery Stores or evenin Sari-Sari Stores. 2
  3. 3. Analysis:When it comes to all-in-one seasoning, Maggi was positioned as the top all-in-oneseasoning 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 ofMaggi is same as the price of other brands but much higher than Knorr. We willmaintain this pricing so that consumer will still afford our product. Maggi doesn‟t have aregular promotions because they already have their advertising in tvs, the advertisingstrategy of Maggi help them to increase their sales. It is well-distributed in allsupermarkets, convenience store and sari-sari store nationwide.SPECIFIC GOALS FOR 2013:2013 Share of Market ------------------------------ increased by 5%.Sales Volume ----------------------------------------- increased by 5% every yearProfit --------------------------------------------------- increased by 5% every yearBrand Awareness ------------------------------------100%Distribution Level ------------------------------------- 85%Strategies and Action Plans:PRODUCT : Seek NAPA seal, so that that customer will continue patronizing theproduct.PRICE : Give additional discounts and freebies to the consumer and maintain itsaffordable price..PLACE : Intensify distribution of the product / appoint more distributors.PROMO : Increase advertising budget 3
  4. 4. III. INTRODUCTION  Company InformationNESTLE Nestle Philippines Incorporated is a large-scale, well-known international foodmanufacturing corporation engaged in the manufacture of instant coffee, milk, andready-to-cook noodles. Nestlé Philippines, Inc. is a robust and stable organization,proud of its role in bringing the best food and beverage throughout the stages of theFilipino consumers‟ lives. The Company employs more than 3,200 men and women allover the country It is now among the top companies in the entire Nestlé world, rankingNo. 14 in the group and No. 3 in the region comprising of Asia, Oceania and Africa. It isNo.1 among the ASEAN countries. In the Philippines, Nestlé is among the PhilippinesTop 10Corporations.. Its products are No. 1 or strong No. 2 brands in their respectivecategories. MAGGI Maggi is a Nestle brand of instant soups, stocks, bouillon cubes,ketchups, sauces, seasonings and instant noodles. The original company came intoexistence in 1872 in Switzerland, when Julius Maggi took over his fathers mill. Hequickly became a pioneer of industrial food production, aiming to improve the nutritionalintake of worker families. Maggi was the first to bring protein-rich legume meal to themarket, and followed up with a ready-made soup based on legume meal in 1886. In1897, Julius Maggi founded the company Maggi GmbH in the German townof Singen where it is still established today. At presentin Indonesia, Thailand and Vietnam Maggi seasoning sauce is a popular condiment inevery dishes. 4
  5. 5. Location: The Nestlé Philippines, Inc. is located at Nestle Center, 31 Plaza Drive, RockwellCenter, Makati City. It has manufacturing facilities in Cabuyao, Laguna, CagayandeOro,Lipa, Batangas, and Pulilan, Bulacan to meet the growing demand for Nestle productsin the country. Soon to rise is another factory in Tanauan, Batangas. 5
  6. 6. IV. CURRENT MARKETING SITUATION Current Position This study focuses on the seasoning industry consumption specifically the all-in-one seasoning. Based on the UAI survey conducted, Maggi is still the market leaderwith 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 andtaste when it sprinkle on every dishes. They believe that if they use maggi on every foodthat they are preparing it will gives magic to every dishes. But because of the negative issues concerning the imitations of Maggi MagicSarap, 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 surveyconducted. This analysis involves several factors in consideration such as the Price,Packaging , Choices, Advertisement and Distribution. The total number of respondentswho answered the UAI survey has a number of 70 different individuals to test theproduct awareness of the brands available in the market today. Figure 1 shows theshare 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 surveyconducted in the 70 respondents. When thinking about all-in-one seasoning mix, whatspecific brand comes first to customer‟s mind? This study proved that Maggi is the no.1all-in-one seasoning mix that comes to every consumer‟s mind, it is because of the highadvertising share of Maggi. It is advertised on billboards and on tv commercials that isendorsed by many well-known artists here in the Philippines. The data proves on howstrong the advertisement are, it really captures the consumer‟s attention. Figure 2shows the share of mind of the all-in-one seasoning in a graphical representation. 6
  7. 7. 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 NUMBER OF MARKET SEASONING RESPONDENTS SHARE RANK BRAND SURVEYED1. Maggi 41 59% 1st2. Lucky Me 6 8% 4th3. Knorr 12 17% 2nd4. AjiGinisa 9 13% 3rd5. Del Monte 2 3% 5th Figure 1 Share of Heart Graphical Representation Based on the UAI Survey conducted in the 70 respondents Sales 3% 13% Maggi 17% Lucky Me Knorr Aji Ginisa Del Monte 8% 59% 7
  8. 8. 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 NUMBER OF SHARE SEASONING RESPONDENTS OF MIND RANK BRAND SURVEYED1. Maggi 50 71% 1st2. Lucky Me 5 7% 3rd3. Knorr 12 17% 2nd4. AjiGinisa 2 3% 4th5. Del Monte 1 1% 5th Figure 1.2 Share of Mind Graphical Representation Based on the UAI Survey conducted in the 70 respondents Sales 3% 1% 17% Maggi Lucky Me 7% Knorr Aji Ginisa Del Monte 71% 8
  9. 9.  Porter’s Framework (Figure 2) New Entrant Lucky Me Nam Nam Competition Suppliers  Maggi Customer (Magic Sarap) Class C, D and E all Supermarkets  Knorr Sari-sari Stores over the Philippines (All-in-One)Convenience Stores  AjiGinisa (Ginisa Mix)  Del Monte (SandosenangSarap) Substitutes All-in-One seasoning mix in cubes Real herbs and spices like onions,garlic,etc.. 9
  10. 10. Porter’s Framework (Explanation) Figure 2 shows the five forces of the seasoning industry in Manila. Presentedhere are the all-in-one seasoning mix industry in competition, the new entrants, thesubstitutes and the customers and suppliers. This framework will give us an overview ofwhat an industry is made of and the flow of it. With this tool we can better understandand analyze the industry.COMPETITION: Maggi Magic Sarap’s major competitors in the all-in-one seasoning industry areAjiGinisa, Knorr and Lucky Me NamNam. Each of the competitorshave their ownstrategies and ways on how they will accomodate their customers. The standing ofMaggi in the seasoning industry specifically in all-in-one seasoning mix industry was stillon 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 tosauces, soups and seasonings.But the sales went down due to the coming of Maggiwhich makes it in the top spot. They have also launched differentready-made sauces forpasta dishes and other Filipino dishes. But they did not make it as the no.1 all-in-oneseasoning mix in the market.It is possible that Knorr all-in-one seasoning mix will be outin the market in the future. Aji Ginisa has a market share of 13% making it the 3rd in the market. The targetThe advertising strategy of AjiGinisa is also high, they are endorsed by different chefand Sarah Geronimo. But the consumer still patronize and love the advertising strategyof Maggi. 10
  11. 11. Lucky Me NamNam is the rank 4 in the market with a market share of 8%. Luckyis known to be the leading noodle manufacturer in the Philippines but when it comes toall-in-one seasoning they didn‟t make it to the top. They have a good advertisingstrategy, specifically in tvs, it is endorsed by 4 well-known matinee idol here in thePhilippines 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. Theyare also known to cater different ready-made sauces, condiments and seasoning. Butthe 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 establishedbrands in the market today. They are those newly launched brands that are trying to geta share of the market by introducing same line of products.The threat of new entrantsporter created affects the competitive environment for the existing competitors andinfluences the ability of existing firms to achieve profitability. A high threat of entrymeans new competitors are likely to be attracted to the profits of the industry and canenter the industry with ease. New competitors entering the marketplace can threaten ordecrease the market share and profitability of existing competitors and may result inchanges to existing product quality or price levels. An example of the threat of newentrants porter devised exists in the graphic design industry. The new entrants in the all-in-one seasoning is the Lucky Me Nam Nam. 11
  12. 12. SUBSTITUTES: The substitutes refer to the food seasoningthat is also available in thesupermarkets, sari-sari stores and even in the wet and dry markets nationwide. The all-in-one seasoning in cubes and also the real herbs and spices like onions and garlic isreferred to as substitute. They consider as substitutes because they are also availablein the market where consumers buy the the product. Most of the time other consumersprefer to choose the real herbs and spices to have a real taste in their dishes for them tobe 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 andcook 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 isconsidered the wisest product to use when preparing different meal that they will servefor their families . Mothers and some chefs is one of the customers especially those in ahurry most of time, who need an alternative seasoning if the real herbs and spices likeonions and garlic is not available.SUPPLIERS: Maggi magic sarap is available at Supermarkets, Sari sari stores and insome Convenience Store. The suppliers have a big part in bringing the product to theconsumer. The bargaining power of suppliers is a strong factor for a Noodle industrybecause this is where consumer find what they need and if it is available. 12
  13. 13. Relationship Between the Entries The arrow between the boxes shows the relationship among the entities. Thedirection to which the arrow is pointing, illustrates the flow of control or influence of anentity over another. To further explain the Porter‟s Framework, we can see that an arrow pointingupward from the competition to the new entrants would explain that the competition isintense because of the strong advertising strategy of the newly launched brand. This shows that new entrants are very dominated by the competition becauseMaggi have already established and have been patronized by people for a long periodof 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 aremany substitutes available in the market which offer an easy and readily availableproducts because of the flavor and it also affordable. An arrow pointing to the competition from the suppliers would explain that thecompany have controlled by the suppliers and it states that the companies aredependent on the supplier. That‟s why companies really need suppliers to market theirproduct and to maintain their service to the consumers. On the other hand, an arrow pointing to the competition from the customers wouldexplain the strong need of the consumers to buy a alternative seasoning mix and a lowprice when the natural ingredients is not available.. Consumers will continue to look fora alternative seasoning especially for those who didn‟t have time to buy the naturalspices when they forget to buy it..All-in-one seasoning mix is readily available anywhereand also has a low price. 13
  14. 14.  Key Success Factors In 2011, sauces, dressings and condiments manufacturers continued to push „all-in-one‟ products capable of meeting consumer demands for convenience and value formoney. Nestle was one of the pioneers of this trend in the Philippines, and following theinitial success of its Maggi Magic Sarap, the review period saw several othermanufacturers follow suit with the launch of their own all-in-one variants. Unilever FoodsPhilippines (CMC), for example, introduced Knorr Real Sarap , which is also an all-in-one seasoning mix. Lucky Me Nam Nam, also an all-in-one seasoning mix that can alsobe used to marinade meat or fish, season soup or for sautéing purposes. But MaggiMagic Sarap was the pioneer of all-in-one variants and because of the greatadvertisement in tv commercial it became a big thing when it comes to seasoningmixture, also because of the well-known artist that endorsed the product, the consumerpatronized it.A UAI ( Usage, Attitude, Influence ) Survey was used in order to know the all-in-oneseasoning consumption of the buyers. According to the accumulated results of the UAISurvey conducted to the consumer who uses all-in-one seasoning mix when cooking. Itshows that Maggi is considered as the market leader and Del monte is the lowperformer. Table 2 shows the ranking of the all-in-one seasoning brand according toconsumer 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 MARKET SHARE RANK MANUFACTURER 1. ( Nestle Inc. ) Maggi 84% 1st 2. ( Monde Corp.) Lucky Me 3% 4th 3. ( Unilever Inc. ) Knorr 6% 3rd 4. (Ajinomoto Corp.) AjiGinisa 7% 2nd 5. ( Del Monte Corp. ) Del Monte 0% 5th 14
  15. 15. Part of the UAI survey allowed the respondents to rate the all-in-one seasoningbrand as factor in choosing and continued patronize of their chosen product.Respondents were given several seasoning factors or criteria and they rate it accordingto “Yes or No” or if that factor is available on a brand or not. Table 2.1 will show theresult 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 AJI DEL FACTORS MAGGI ME KNORR GINISA MONTE 1. Affordable Price YES YES YES YES NO 2. Appealing Advertisement YES YES NO YES NO 3. Impressive Packaging YES YES NO YES NO 4. Different Varieties / Flavors NO NO YES NO NO 5. Widely Available in stores Nationwide 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. 15
  16. 16. According to the respondents, the most important factor they consider in purchasing thebrand is the affordable price. Most of the consumer budget their money for a muchimportant things, so they wont buy a product with a high price. They will find a productthat has a lower price yet also a high quality product. It is acceptable because basedfrom the UAI survey, most of the respondents income ranges P 5,000 and below, so wecan‟t expect them to buy in exceed of price for just an all-in-one seasoning mix. Table 3will shows the price comparison of different brands.Aside from the affordable price it is very important to the respondents that the product iswidely available in stores nationwide. It is a must that the product can easily be found inevery market shelves to continue patronizing the products. Table 3 Pricing Comparison of the all-in-one seasoning brands LUCKY AJI DEL MAGGI ME KNORR GINISA 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, becauseconsumer are always looking for alternatives choices. Knorr is well known in introducinga lot of flavors and brands, when it comes to seasoning, they never limit their productson just one flavor. 16
  17. 17. Respondents learned new product innovation through the television according tothe UAI survey, most especially in between the commercial breaks when watching theirfavorite shows. Respondents buy the product daily, some buy the product once a week. Lastly, respondents didn‟t really care about the packaging of the product. They‟remore focus on the price, varieties and availability of the product more than thepackaging.  Competitor’s Fact Sheet BRAND LUCKY AJI DEL MAGGI ME KNORR GINISA MONTE PRICE Low Low Low Low High VARIETIES Limited Limited Many Limited Limited DISTRIBUTION Wide Wide Narrow Wide Narrow ADVERTISEMENT Intense Intense Lacking Intense Lacking NAPA SEAL No Yes Yes No No MASS APPEAL Yes Yes No Yes No  Critical Success FactorConsumer always see to it that the food products they will buy is safe to eat. They wantto make sure that the food that they will feed to their family wont harm their health.Filipinos are health conscious. Most of us don‟t prefer artificial preservatives on ourfood. We don‟t want to be hesitant when eating or even using products in our dishes.One of the downside of Maggi is that it still doesn‟t have a NAPA seal even though theyalways says that Maggi comes from natural ingredient.. They must focus on having theirNAPA seal in order for the buyer not to be hesitant on buying Maggi products.. 17
  18. 18. V. OPPORTUNITY AND ISSUE ANALYSIS  Company History Brief History Nestle PhilippinesAlthough Nestlé products were already available in the Philippines as far back as 1895,it was not until 1911 when The Nestlé and Anglo Swiss Condensed Milk Company wasestablished 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 madea comeback after Liberation, under a new name: Filipro, Inc. It continued to importproducts such as MILO, NIDO powder milk, MILKMAID and NESCAFÉ from othercountries. In the early 1950‟s, Filipro encountered difficulties when the Philippinegovernment imposed import control. Due to lack of imported products to sell, it wasforced to become a distributor of peanut butter, napkins, fruit preserves, and patis (fishsauce) just to keep its operations going.In 1960, Nestlé S.A.and San Miguel Corporation entered into a partnership resulting inthe formation of Nutritional Products, Inc. (Nutripro). In 1962, Nutripro‟s first factorystarted operations in Alabang, Muntinlupa to manufacture NESCAFÉ. In 1977, Filipro,Inc. and Nutripro Inc. merged under the name Filipro, Inc. In 1986, Filipro, Inc. changedto its present name as Nestlé Philippines, Inc.Nestle now has manufacturing facilities in Cabuyao (Laguna), Cagayan de Oro, Lipa(Batangas), and Pulilan (Bulacan) to meet the growing demand for Nestlé products inthe country. Soon to rise is another factory in Tanauan, Batangas.In 1991, Nestlé pioneered the AIJV (ASEAN Industrial Joint Venture), a regionalcomplementation program. The Company participated in this program with theproduction of breakfast cereals at the Nestlé Lipa Factory, for export to ASEANmarkets. Today, three of the Nestle factories in the Philippines – Lipa, Cabuyao, andCagayan de Oro -- serve as ASEAN Supply Centers to meet the requirements of Nestlemarkets in the region.In late 1998, Nestlé Philippines became a wholly owned subsidiary of Nestlé S.A.,following the latter‟s purchase of all of San Miguel Corporation‟s equity shareholding inthe Company. 18
  19. 19. Vision of Nestle“At Nestlé, we believe that research can help us make better food so that people live abetter life.Good Food is the primary source of Good Health throughout life. We strive to bringconsumers foods that are safe, of high quality and provide optimal nutrition to meetphysiological needs. In addition to Nutrition, Health and Wellness, Nestlé products bringconsumers the vital ingredients of taste and pleasure. As consumers continue to makechoices regarding foods and beverages they consume, Nestlé helps provide selectionsfor all individual taste and lifestyle preferences. Research is a key part of our heritage atNestlé and an essential element of our future. We know there is still much to discoverabout health, wellness and the role of food in our lives, and we continue to search foranswers to bring consumers Good Food for Good Life”Mission of Nestle“Nestlé strives to be a leader in nutrition, health and wellness, with the belief that goodfood is central to health and wellness.At the Nestlé Research Center, nutrition research meets food innovation to bringconsumers of all ages and stages of life, foods and beverages that contribute to healthand wellness, while offering remarkable taste and convenience.” Brief History of MaggiMAGGI owes its name to founder Julius Maggi (1846 - 1912), entrepreneur and inventorof 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 hisname. Globally, MAGGI provides a wide range of flavour solutions from basic bouillonsto seasonings, soups and recipe mixes for the professional environment. Everyday , 19
  20. 20. operators are cooking a wide variety of meals with the help of MAGGIproducts. Nestle goal is to assist us, feel good about the food you prepare by givingyou reliable, efficient solutions and easy to apply ideas for great tasting, balancedmeals. Maggi is a Nestlé brand of instant soups, stocks, bouillon cubes,ketchups, sauces, seasonings and instant noodles. The original company came intoexistence in 1872 in Switzerland, when Julius Maggi took over his fathers mill.He quickly became a pioneer of industrial food production, aiming to improve thenutritional intake of worker families. Maggi was the first to bring protein-rich legumemeal to the market, and followed up with a ready-made soup based on legume meal in1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German townof Singen where it is still established today.In parts of Europe, Mexico, Malaysia, Brunei, German-speaking countries and theNetherlands, Czech Republic, Slovenia, Slovakia, Poland and France, "Maggi" is stillsynonymous with the brands "Maggi-Würze" (Maggi seasoning sauce), a dark,hydrolysed vegetable protein based sauce which is very similar to East Asian soysauce except that it does not actually contain soy. It was introduced in 1886, as a cheapsubstitute for meat extract. It has since become a well-known part of everyday culinaryculture in Switzerland, Austria and especially in Germany. It is also well known inPoland and the Netherlands. In 1947, following several changes in ownership and corporate structure, Maggisholding company merged with the Nestlé company to form Nestlé-Alimentana S.A.,currently known in its francophonehomebase as Nestlé S.A.. Today, Maggi is known throughout the world for its dry soups, seasoning sauceand instant noodle dishes. In New Zealand Maggi Onion Soup mix is often combinedwith reduced cream to create an Onion Dip for Potato Chips that has come to begenerally 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. 20
  21. 21.  Market Needs:Maggi all-in-one seasoning provides its customers with high-quality seasoning mix thatare unique and captures the taste of every Filipino. It can flavor a variety of dishes fromsoups, fried, stir-fried and stewed. But the customer seeks the NAPA seal, becausemost of the Filipino today are health conscious. They don‟t want artificial preservativesin their diets. People prefer to have high-quality and much safer product that they canuse without any hesitations.  SWOT AnalysisA study is conducted to analyze the SWOT analysis of the 3 brands in seasoningindustry 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 SarapStrengths  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. 21
  22. 22. Weaknesses  Health Related Issues; despite the quality of the product its still doesn‟t 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 NamNamStrengths  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. 22
  23. 23. Knorr All-in-One SeasoningStrengths  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.AjiGinisaStrengths  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. 23
  24. 24. Threats  Strong presence of heavy competitors.Del Monte SandosenangSarapStrengths  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. 24
  25. 25.  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 Parañaque 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 they‟re not sure if the seasoning that they are going to buy is fake or not. 25
  26. 26. VI. MARKETING OBJECTIVES To support the Maggi‟s mission and vision, and also the consumer‟s 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. 26
  27. 27. VIII. MARKETING STRATEGY Maggi seasoning mix will continue making every meal taste like magic as shown toall their advertisement on television as this seems to be working well. To preventcompetitors from getting a big market share on the seasoning industry, productinnovation is required as otherwise Maggi may get stereotyped as an unexciting productand just a common seasoning mix just like any other product in the line. To deal with theconsumer wants, Maggi has to concentrate on having a NAPA seal and having a uniqueyet tasty seasoning mix in the country. The market is very sensitive to taste and rejectsany flavor or ingredients that is not good to the health of many peoplethat‟s why foodcertification from Department of Health and Food and Nutrition Research Institute is aMUST. On the other hand Maggi has to deal with thenegative perception that Maggi hasa counterfeit „Maggi‟ seasoning products being sold in public markets across thecountry, a major threat in the current scenario. Both these problems can be tackledbypositioning Maggi as a food seasoning with nutritional value. With a good product quality, Maggi will still emphasize on the advertising especiallyin television.We will also emphasize the taste itself and will slowly introduce innovationin the product, by offering varieties of flavors and by having the NAPA seal on theproduct, assuring the consumer that Maggi is a healthy food seasoning product amongothers. Target Markets: The primary target markets includes individuals belongs to the Class D and Emarket, especially those mother who prepares food for their family. Group of familieswho usually budget conscious and prefer to buy cheap food seasoning even the qualityis not that good. We will prioritize that to give them a gualitable seasoning product andalso 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 saristoreswhich is the wide source of distribution. 27
  28. 28.  Market Trends: The market trend for food seasoning mix in the Philippines today depends onwhat is available and affordable to many people. It is by producing a cheap product buthave a superior quality flavors. Positioning the product to the masses will win the salesof the product offered to the market. Focusing on the production and the product concept of marketing in order toproduce 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 becauseof the food certification that it doesn‟t have added preservatives. 28
  29. 29. 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 doesn‟t 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 consumerconsiders in buying the food seasoning mix. People who usually earns P 5,000 andbelow amount, considered as affordable to them if the price of the product matches theirincome. No matter how good or superior the product, consumer will still reject to buy itif they found out that the price is higher than the standard price being offered in themarket. 29
  30. 30. Here the Pricing Comparison of Maggi against its competitors and the comparisonamong other competitors. BRANDS PRICES DIFFERENCES ANALYSIS1. Market Leader: The challenger is Maggi P 3.50 P .50 cents P .50 cents higher than Challenger: Maggi AjiGinisa P 4.002. Market Leader: The challenger Lucky Me Maggi P 3.50 NONE (New Entrant) has the Challenger: same price with Maggi. Lucky Me P 3.503. Market Leader: Maggi P 3.50 The challenger has the Challenger: P 1.50 lowest price in all brands. Knorr P 2.004. Market Leader: The challenger is highest Maggi P 3.50 price in all brands. P 2.50 Challenger: P 2.50 much higher than Maggi. Del Monte P 6.00 30
  31. 31.  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,. 31
  32. 32.  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 don‟t 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. 32
  33. 33. X. IMPLEMENTATION AND CONTROL  Sales Action PlanPeriod Date Action Responsible Budget Expected Output Jan - April Bundled Package with Promotion P 50,000 Increase sales other Maggi Products- Coordinator by 5% Limited time only May - Sept. Monitoring the Shelves Merchandising P 35,000 Also will where the product is increase the displayed. Increase the sales by 5%.. no. of merchandiser so that the shelves wont become empty. Oct. - Dec. Providing Assistance to Supermarket P 20,000 Established an Supermarket. Coordinator Assistance area in the supermarket TOTAL BUDGET: P 105,000.00 33
  34. 34.  Advertising PlanPeriod Date Action Responsible Budget Expected Output Jan - April Discounted Sales P 25,000 Increase the prices and Coordinator Sales freebies. May - Sept Rent display Promotion P 20,000 Increase Product spaces in Coordinator Awareness supermarkets Oct - Dec Designating Team Leader P 35,000 Strengthen Promodizers in Sales Force the Supermarket TOTAL BUDGET: P 80,000.00 34
  35. 35. 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 P 11,800,000 12,390,000 13,009,500Cost of Goods Sold P 235,000 246,750 259,087.50Contribution Margin P 11,565,000 12,143,250 12,750,412.50Less: Marketing P 80,000 84,000 88,200ExpenseSelling Expense P 105,000 110,250 115,762.50Administration P 125,000 131,250 137,812.50ExpenseNet Income before Tax P 11,255,000 11,817,750 12,408,637.50 Tax Expense P 3,601,600 3,781,680 3,970,764Net Income After Tax P 7,653,400 8,036,070 8,437,873.50 35
  36. 36. 2015 2016 2017 Sales P 13,659,975 14,342,973.75 15,060,122.44Cost of Goods Sold P 272,041.875 285,643.9688 299,926.1672Contribution Margin P 13,387,933.13 14,057,329.78 14,760,196.27Less: Marketing P 92,610 97,240.50 102,102.525ExpenseSelling Expense P 121,550.625 127,628.1563 134,009.5641Administration 144,703.125 151,938.2813 159,535.1953ExpenseNet Income before Tax P 13,029,069.38 13,680,522.84 14,364,548.99 Tax Expense P 4,169,302.202 4,377,767.309 4,596,655.677Net Income After Tax P 8,859,767.18 9,302,755.531 9,767,893.313 36
  37. 37. 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% 37
  38. 38. XII. ANNEXES All Products Dairy Health and Nutrition  Kimy Crazy Banana Solutions  Drumstick and Drumstick  Bear Brand Loaded o Bear Brand Choco  Nestle Ice Cream o Bear Brand Lusog  Butterfinger Ice Cream Busog  Temptations o Bear Brand  Zero Fat Ice Cream Sterilized  Pops  Coffee-Mate  Sorbetes o Coffee-Mate  Chilled Dairy Original  Fruit Selection Yogurt o Coffee-Mate Lite  Fruit Selection Yogurt with  Nesvita Jelly  Nido  Premium Dairy Liquid Beverages and Dairy  Breakfast Cereals Culinary  Clusters  Chuckie  Cookie Crisp  Milo  Corn Flakes  Nescafe  Fitness o Original  Honey Stars o Strong and Rich  Koko Crunch & Koko o Classic Crunch Duo o Decaf  Milo o Gold  Snow Flakes o Protect  Confectionery  Nestle All Purpose Cream  Baby Ruth  Nestle Fresh Milk  Butterfinger  Nestle Low Fat Milk  Foxs  Nestea  KitKat Food  Polo  Maggi Magic Sabaw  Infant Nutrition  MAGGI MAGIC SARAP  Cerelac  Maggi Magic Sinigang  Gerber  Maggi Mami Noodles  Petcare  Maggi Oyster Sauce  Alpo  Maggi Savor  Purina Ice Cream  Chuckie Wacky Duo  Kit Kat Bites  Heaven Cookie Dough Pleasure 38
  39. 39.  Tally of Survey: (Total of Respondents: 70) Question # 1: How much is your monthly income? No. of Respondents A. below P 5,000 33 B. P 5,000 – P 10,000 23 C. P 10,000 – P 15,000 23 D. P 15,000 – P 20,000 12 E. P 20,000 – P 25,000 2 F. P 25,000 and above 2 Question # 2: When thinking about all-in-one seasoning mix, what specific brand comes first to No. of Respondents your mind? A. Maggi Magic Sarap 50 B. Lucky Me NamNam 5 C. Knorr all-in-one 12 D. Aji Ginisa 5 E. Del Monte Sandosenang Sarap 1 F. Others (pls. specify) 2 Question # 3: Where did you learn about this brand? No. of Respondents A. Television 64 B. Radio 0 C. Newspaper / Magazines 2 D. Supermarket, Sari Sari Stores 2 E. Relatives / Friends/ Neighbors 2 F. Internet 0
  40. 40. Question # 4: What brand of all-in-one seasoning No. of Respondents mix do you usually use? A. Maggi Magic Sarap 44 B. Lucky Me NamNam 6 C. Knorr all-in-one 12 D. Aji Ginisa 9 E. Del Monte Sandosenang Sarap 0 F. Others (pls. specify) 2 Question # 5: How long have you been patronizing No. of Respondents this brand? A. Less than a month 7 B. 1 month – 6 months 7 C. 6 months – 1 year 23 D. 1 year – 2 years 25 E. 2 years – 5 years 9 F. more than 5 years 3Question # 6: How often do you usually buy for this all- No. of Respondentsin-one seasoning mix? A. Daily 31 B. Once a week 20 C. Twice a week 11 D. Monthly 7 E. Every 6 months 0 F. Others,(pls. specify) 1 40
  41. 41. Question # 7: In buying your chosen brand, whatbuying factors can you considered as the reasons for No. of Respondentscontinued patronage of this brand? A. Affordable Price 44 B. Appealing Advertisement 24 C. Impressive Packaging 7 D. Different varieties and Flavors 11 E. Widely distributed in stores nationwide 5Question # 8: What specific brand advertisement haveyou seen, heard or read for the past 6 months? No. of Respondents A. Maggi Magic Sarap 43 B. Lucky Me NamNam 13 C. Knorr all-in-one 13 D. Aji Ginisa 3 E. Del Monte Sandosenang Sarap 0 F. Others (pls. specify) 2Question # 9: . Have you ever been tempted to useother brand than your current brand? No. of Respondents A. Yes 58 B. No 11 41
  42. 42. Question # 10: Referring to question # 9, If Yes what isthe name of that brand? No. of Respondents A. Maggi Magic Sarap 23 B. Lucky Me NamNam 12 C. Knorr all-in-one 11 D. Aji Ginisa 17 E. Del Monte Sandosenang Sarap 1 F. Others (pls. specify) 3Question # 11: What do you usually do whenever youdidn‟t find your chosen brand in the market? No. of Respondents A. Buy whatever brand is available 22 B. Look for the brand in another store 38 C. Postponed buying 10Question # 12: What brand do you think is the marketleader in the all-in-one seasoning mix industry today? No. of Respondents A. Maggi Magic Sarap 60 B. Lucky Me NamNam 2 C. Knorr all-in-one 3 D. Aji Ginisa 4 E. Del Monte Sandosenang Sarap 0 F. Others (pls. specify) 0 42
  43. 43. Question # 13: How about the market looser? No. of Respondents A. Maggi Magic Sarap 2 B. Lucky Me NamNam 5 C. Knorr all-in-one 1 D. Aji Ginisa 8 E. Del Monte Sandosenang Sarap 54 F. Others (pls. specify) 0Question # 14: Have you heard about Maggi Magic No. of RespondentsSarap? A. Yes 68 B. No 2Question # 15: Have you tried using Maggi Magic No. of RespondentsSarap? A. Yes 53 B. No 17Question # 16: Referring to question #15, If Yes, how‟syour experience using Maggi Magic Sarap on your No. of Respondentsfavorite dishes? A. Satisfied 12 B. Not Satisfied 0 C. Very Satisfied 29 D. Quite Satisfied 10 E. No Answer (They answered “NO” to question #9) 19 43
  44. 44. 44