Marketing plan for maggi magic sarap

Marketing PlanFor

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) , Maggi’s 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 don’t 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.

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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 doesn’t 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 : Seek NAPA seal, so that that customer will continue patronizing the

product.

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

affordable price.

.

PLACE : Intensify distribution of the product / appoint more distributors.

PROMO : Increase advertising budget

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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. Nestlé 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 Nestlé 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, Nestlé 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.

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Location:The Nestlé 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.

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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 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 customer’s mind? This study proved that Maggi is the no.1

all-in-one seasoning mix that comes to every consumer’s 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 consumer’s attention. Figure 2

shows the share of mind of the all-in-one seasoning in a graphical representation.

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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

NUMBER OF RESPONDENTS

SURVEYED

MARKET SHARE RANK

1. Maggi 41 59% 1st

2. Lucky Me 6 8% 4th

3. Knorr 12 17% 2nd

4. AjiGinisa 9 13% 3rd

5. Del Monte 2 3% 5th

Figure 1

Share of Heart Graphical Representation

Based on the UAI Survey conducted in the 70 respondents

59%8%

17%

13% 3%

Sales

Maggi

Lucky Me

Knorr

Aji Ginisa

Del Monte

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Table 1.2

Share of Mind


Referring to what All-in-One Seasoning comes first in their mind

ALL-IN-ONE SEASONING

BRAND

NUMBER OF RESPONDENTS

SURVEYED

SHAREOF MIND RANK

1. Maggi 50 71% 1st

2. Lucky Me 5 7% 3rd

3. Knorr 12 17% 2nd

4. AjiGinisa 2 3% 4th

5. Del Monte 1 1% 5th

Figure 1.2

Share of Mind Graphical Representation


71%

7%

17%3%

1%

Sales

Maggi

Lucky Me

Knorr

Aji Ginisa

Del Monte

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Porter’s Framework (Figure 2)

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New Entrant

Lucky Me Nam Nam

Suppliers

SupermarketsSari-sari Stores

Convenience Stores

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..

Competition

Maggi(Magic Sarap)

Knorr(All-in-One) AjiGinisa

(Ginisa Mix) Del Monte

(SandosenangSarap)

Porter’s 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 Sarap’s 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 didn’t 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 all-

in-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 Porter’s 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. That’s 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 didn’t 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 ‘all-

in-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-in-

one 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 sautéing 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

MANUFACTURERMARKET SHARE RANK

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

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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

FACTORS MAGGI

LUCKY

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 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.

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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

can’t 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

MAGGI

LUCKY

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 didn’t really care about the packaging of the product. They’re

more focus on the price, varieties and availability of the product more than the

packaging.

Competitor’s Fact Sheet

BRAND

MAGGI

LUCKY

ME KNORR

AJI

GINISA

DEL

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 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 don’t prefer artificial preservatives on our

food. 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 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 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 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 NESCAFÉ from other

countries. In the early 1950’s, 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, Nestlé S.A.and San Miguel Corporation entered into a partnership resulting in

the formation of Nutritional Products, Inc. (Nutripro). In 1962, Nutripro’s first factory

started operations in Alabang, Muntinlupa to manufacture NESCAFÉ. In 1977, Filipro,

Inc. and Nutripro Inc. merged under the name Filipro, Inc. In 1986, Filipro, Inc. changed

to 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 in

the country. Soon to rise is another factory in Tanauan, Batangas.

In 1991, Nestlé 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 Nestlé 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, 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 in

the Company.

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Vision of Nestle

“At Nestlé, 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, Nestlé products bring

consumers the vital ingredients of taste and pleasure. As consumers continue to make

choices regarding foods and beverages they consume, Nestlé helps provide selections

for all individual taste and lifestyle preferences. Research is a key part of our heritage at

Nestlé 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

“Nestlé strives to be a leader in nutrition, health and wellness, with the belief that good

food is central to health and wellness.

At the Nestlé 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 Nestlé 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-Würze" (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 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 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 don’t 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 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 NamNam

Strengths



Advertising Share; It is advertised on billboards and on tv commercials that is

endorse by many well-known heartthrobs here in the Philippines.

Weaknesses



Opportunities

More television advertisement on cooking shows.

Add a celebrity mom endorser because seasoning mix are usually used by

moms.

Threats


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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


Has a possibility that the product will be phase out soon.

AjiGinisa

Strengths



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



Opportunities

Focus on having a NAPA seal.

Add some varieties and flavors.

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Threats


Del Monte SandosenangSarap

Strengths

Brand loyalty; because Del Monte is known to creates high quality product.

Weaknesses

Poor advertisement.-Lack in promotions and advertisement.


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


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 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.

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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

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 peoplethat’s 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.

27

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 doesn’t have added preservatives.

28

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 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.

29

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 3.50

P 4.00

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 3.50

P 2.00

P 1.50

The challenger has the

lowest price in all brands.

4. Market Leader:

Maggi

Challenger:

Del Monte

P 3.50

P 6.00

P 2.50

The challenger is highest

price in all brands. P 2.50

much higher than Maggi.

Place or Distribution Strategy

30

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

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.

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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 Products-

Limited 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

33

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

34

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 13,009,500

Cost of Goods Sold P 235,000 246,750 259,087.50

Contribution Margin P 11,565,000 12,143,250 12,750,412.50

Less: Marketing Expense

P 80,000 84,000 88,200

Selling Expense P 105,000 110,250 115,762.50

Administration Expense

P 125,000 131,250 137,812.50

Net Income before Tax P 11,255,000 11,817,750 12,408,637.50

Tax Expense P 3,601,600 3,781,680 3,970,764

Net Income After Tax P 7,653,400 8,036,070 8,437,873.50

35

2015 2016 2017

Sales P 13,659,975 14,342,973.75 15,060,122.44

Cost of Goods Sold 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

P 92,610 97,240.50 102,102.525

Selling Expense P 121,550.625 127,628.1563 134,009.5641

Administration Expense

144,703.125 151,938.2813 159,535.1953

Net 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 4,596,655.677

Net Income After Tax P 8,859,767.18 9,302,755.531 9,767,893.313

36

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

XII. ANNEXES

All Products

Dairy Health and Nutrition Solutions

Bear Brando Bear Brand Chocoo Bear Brand Lusog

Busogo Bear Brand

Sterilized Coffee-Mate

o Coffee-Mate Original

o Coffee-Mate Lite Nesvita Nido

Liquid Beverages and Dairy Culinary

Chuckie Milo Nescafe

o Originalo Strong and Richo Classico Decafo Goldo 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

38

Tally of Survey: (Total of Respondents: 70)

Question # 1: How much is your monthly income? No. of RespondentsA. 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 your mind?

No. of Respondents

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

39

Question # 4: What brand of all-in-one seasoning mix do you usually use?

No. of Respondents




D. Aji Ginisa 9



Question # 5: How long have you been patronizing this brand?

No. of Respondents

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 3

Question # 6: How often do you usually buy for this all-in-one seasoning mix?

No. of Respondents

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

Question # 7: In buying your chosen brand, what buying factors can you considered as the reasons for continued patronage of this brand?

No. of Respondents

A. Affordable Price 44

B. Appealing Advertisement 24

C. Impressive Packaging 7

D. Different varieties and Flavors 11

E. Widely distributed in stores nationwide 5

Question # 8: What specific brand advertisement have you seen, heard or read for the past 6 months? No. of Respondents




D. Aji Ginisa 3



Question # 9: . Have you ever been tempted to use other brand than your current brand? No. of Respondents

A. Yes 58

B. No 11

41

Question # 10: Referring to question # 9, If Yes what is the name of that brand? No. of Respondents




D. Aji Ginisa 17



Question # 11: What do you usually do whenever you didn’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 10

Question # 12: What brand do you think is the market leader in the all-in-one seasoning mix industry today? No. of Respondents




D. Aji Ginisa 4



Question # 13: How about the market looser? No. of Respondents


42



D. Aji Ginisa 8



Question # 14: Have you heard about Maggi Magic Sarap?

No. of Respondents

A. Yes 68

B. No 2

Question # 15: Have you tried using Maggi Magic Sarap?

No. of Respondents

A. Yes 53

B. No 17

Question # 16: Referring to question #15, If Yes, how’s your experience using Maggi Magic Sarap on your favorite dishes?

No. of Respondents

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

Marketing plan for maggi magic sarap

Education

leading supermarkets

uai survey

threats strong

highest advertising

industrial

made soup

julius maggi

maggi magic