10 Step Marketing Plan for Ramking Convenience Store

10 STEP
Marketing Plan for
RAMKING CONVENIENCE STORE

FRANCINE LUANNE M COLLANTES
October 2011

http://francollantes.blogspot.com 1

Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
http://francollantes.blogspot.com

Steps 1 to 5
Ramking needs to be accessible
anywhere, everywhere
1. Young Parents and Healthy Middles are
always “on-the-go”
2. Who need to buy fast food, grocery goods
while getting on with their busy lives
3. Can choose to go to 7-eleven or Ministop
4. Gap is that no C-stores have tapped the
online and delivery service aspect
5. The Asia-Pacific food retail industry is worth
$629.7B

Steps 6 to 10
To enter the market, Ramking must
redefine convenience by offering
ONLINE & DELIVERY SERVICES
6. Ramking offers online ordering and
delivery services
7. Priced lower than other C-stores
8. Uses interactive marketing, sales
promotions, and word of mouth
9. Will establish 50 branches in Luzon for
year 1
10. Will use differentiation to win

1. Ramking PTM are young
professionals and healthy middles who
want food and retail items on the go,
as they go
 25-50 years old
 Belonging to Upper D to Upper B social class
 Working, fond of purchasing “pasalubong” or
toiletries when they fall short of supply;
homekeepers who prepare snacks for their
families
 Looks for easily accessible items and food
without having to queue in the grocery


2. PTM wants to make thir
families special and happy
Self-Actualization
Needs
I am happy when my (Self-Development
family is happy & Realization)

Esteem Needs
(Recognition,
Status)

I want to make my family feel
special and happy Social Needs (sense of
belonging, love)

I need to work to give
my family a
Safety Needs (security, protection)
comfortable life

Physiological needs (food, water, shelter)

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler


2. PTM has a distinct set of
needs, wants and demands
Needs: Young professionals need to go to work
everyday to provide for their family’s daily needs.

Wants: Young parents want to focus on spending their
time working or taking care of their little children, so
quick access to commodities is important.

Demands: PTM demand buying fast, quick, and no
fuss goods. They are willing to pay for the
convenience that they would get because it gives
them more time to concentrate on their busy lives.


3a. Ramking is in a very
competitive C-store industry
 Direct – 7-eleven, Ministop, Shell Select
 Indirect – Local sari-sari stores,
supermarkets
 Variables – accessibility, availability of
goods, visibility to market


Ramking will be the most accessible
and will be the only one to offer online
ordering and delivery services

High Accessibility Low Accessibility

Upper Class

Ramking
7-Eleven
Middle Class Ministop

Lower Class


Ramking as a new entrant will be the
first of its kind to tap the web and
technology for its ordering and
delivery services
7-Eleven Ministop Shell Select RAMKING
Hot Meals
Accessibility (# of
Branches/Stores)
Everyday Necessities
Pasalubong Food
Bottled/Canned drinks
Grocery Items
25 kilo Rice
Online Ordering
Delivery Service


4. Ramking will be accessible
to its PTM anywhere,
everywhere
Ramking’s USP: Convenience Anywhere,
Everywhere – it will be first
 To have an online ordering system

 To deliver goods ordered

 To sell packed rice as part of its staple goods
in-store. Most players don’t sell this.


5a. Ramking has a very big opportunity
as C-Stores proved most lucrative in
sales w/ 53% share according to
Datamonitor


5a. Market Size According to
Competitor Data = P20B

 7-Eleven claims having 50% of the total
market share in the C-Store sector
 Ministop fares a far 2nd in share with only
28% of the whole sector
 7-Eleven sales report in 2010: P9B
 Expected sales in 2011: P10B
 P10B / 0.5 = P20B


5b. Ramking can penetrate the
market with a target sales of
P13M/Store/Annum by Year 1

 Based on 7-Eleven Data, we can derive the ff:
7-Eleven Ministop RAMKING
Number of Stores 750 390 50
Sales/Annum 10B 3.9B 0.65 M
Market Share 54% 28% 4%
 Ave Annual Sales/Store = P13M
 With 50 Stores Ramking can penetrate the
market claiming 4% of Total Market Share with
P650M Projected Sales/Annum

5c. Asia Pacific Food Retail
Market Size is at $629.7B


5c. Philippines has <1% of
Total Market Share in APAC

Assumption: Philippines owns .075% of Total
Market Share of the whole region
APAC Retail Market $629.7B
Philippines' Share <1%
Phil Retail Market $472M

 Philippine Market Share = P20.78B

5. Convenience Store Market
is at P20B
1. Competitor data= P20B

2. Company data = none yet since it’s a
new entrant

3. Customer Usage data = P20.78B


6a. A look at the Ramking
Store Premises

AFPOVAI, Taguig RAMKING can come
up with an ONLINE
ordering system and
delivery system so
that customers do not
necessarily have to
go to the store if they
don’t have time.


6a. 7-Eleven’s customers can
access the store thru WALK-IN

7-Eleven utilizes a Central Ordering System for their operations
but is limited to Inventory and Supply Chain Management


6a. Now let’s take a peek at
the other players

Your Local Sari-Sari Large format
Store: WALK-IN groceries: WALK-IN

6b. What will set Ramking
apart?

1. Product catalogues may
be sent via mail and
posted on websites
2. Packed rice will be sold
3. Delivery services will be
offered
4. Group ordering may also
be considered

7. Ramking Prices are lower
than the typical C-Store

PRODUCT
7-Eleven RAMKING % Difference
DESCRIPTION
LM Instant Beef na Beef
10.00 6.75 33%
Mami 55g
Del Monte Fit N Right
25.00 20.00 20%
330ml Pet
The Bar Lemon & Lime
72.00 63.50 12%
Gin 700ml
Coke 1.5L 48.00 38.75 19%

Ref: Latest Price List of 7-Eleven DLSU Lipa as of Sept 2011

8a. Ramking will make use of
the ff to penetrate the
industry

2

1

3


8a. Ramking will make use
of the Online Technology

SHOP RAMKING


8a. Ramking will be actively
distributing flyers and
brochures


8a. Ramking will come up
with a referral program


8b. 7-Eleven is very active
in storewide promotions


8b. 7-Eleven’s website
showcases their products


9. The first 50 branches of
Ramking will be located all
around Luzon in Year 1
 Ramking will open 50 stores by next
year (mostly with a 24-hour format)
 With free delivery within a 5km radius
 Minimum delivery fee to be introduced
with a required minimum purchase
 Cash/Card transactions available


10. Ramking’s winning
strategy: Differentiation

What will set Ramking apart from its
competitors?
 Online Ordering System
 Delivery Service System
 Goods like rice will be sold in store
 Low Cost of Goods as compared to the big
players


SUMMARY


10 STEP
Marketing Plan for
RAMKING CONVENIENCE STORE

FRANCINE LUANNE M COLLANTES
October 2011


10 Step Marketing Plan for Ramking Convenience Store

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