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GROUP 3 FINAL PRESENTATION Mother Earth Marketing Plan

GROUP 3 FINAL PRESENTATION Mother Earth Marketing Plan **Cocoy Amador ** Haydee Aunzo ** Harry Kuma** **Des Manlapaz ** Jerome Paras**Jean Reyes** Submitted to: Prof. E. Soriano July 16, 2009. MACRO ECONOMICS. Supply & Utilization.

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GROUP 3 FINAL PRESENTATION Mother Earth Marketing Plan

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  1. GROUP 3 FINAL PRESENTATION Mother Earth Marketing Plan **Cocoy Amador ** Haydee Aunzo ** Harry Kuma** **Des Manlapaz ** Jerome Paras**Jean Reyes** Submitted to: Prof. E. Soriano July 16, 2009

  2. MACRO ECONOMICS Supply & Utilization • Meat supply and consumption in 2008 declined by 3.48%. • In 2007, backyard supply (# heads) : 72% pork, 94% beef. • Growing meat import indicate an increasing domestic demand that outpace supply, demand for quality meat. • In the first quarter of 2009 livestock industry expanded at 2.4% over the same period in 2008

  3. Supply & Utilization • Philippine is a pork eating nation. Of every 10kg of meat consumed, about 8kg is pork. • The consumption rate for pork has also steadily improved from 4.3% in 2007 to 6.1% in 2008.

  4. PRICE • Price Margin between pork and beef widens at wholesale and retail point with beef becoming more expensive. • In 2009 percentage increase in price: • Pork : Retail (0%), Farm-gate (8%) • Beef: Retail (9%), Farm-gate (10%) • Price variation (Farm-gate and retail) ranges from 200% to 300% • Retail price of Pork Ham, and Beef Rump – Farmers market

  5. Livestock Production in Luzon, 2007 (in metric tone live weight) Geographic segmentation Consumption is 37.3% of Total country consumption Of the 37.3%, MEPI’s share is 0.17%

  6. Consumer Profile • Increasing Purchasing Power (OFW Remittance, BPO's in MM & in provinces) • Prefers to shop in Supermarket/Convenience stores vs Wet Market • Celebrates by having more meat Increasing Household Expenditures • Food regularly consumed outside home • 3.4% (1988), 5.0% (2000), 5.3% (2003) • Intro to Western style fast food chains due to BPO exposure & internet • 52M consumers <30 y.o.

  7. Consumer Profile - cont • Busier & Fast-paced Lifestyle • One-Stop Shop, merchandise +service • Easy to prepare, ready to cook/eat food • Dine Outside at full service or at speed • Drive thru's/ Take out Window • Preference for affordability & unique experience • Global Financial crisis forces “more value for money” • International dishes • 37% of consumer expenditure ($28.3B) on food, 27% increase by 2015 • Increased awareness for food quality & safety • (food-borne outbreaks, animal-human diseases, • chemical residues, dietary concerns)

  8. Micro-Envt: Mother Earth Products Inc (MEPI) • Founded by the CEO/President Atty Renato Tayag, Jr. • Original focus on cattle breeding & fattening but due to to Pinatubo eruption, Asian Financial Crisis, it had to diversify to prime cuts & processed meat • Now located at Dau, Pampanga • W/ “AAA” accreditation by NMIS (SSOP, GMP, HACCP) • Customers include Robinsons, Waltermart, Max, Jollibee, Makro, Northpark Noodles & more • Products & Services: • Choice Cuts & Processed Meats, • Tolling & Tesda Trng Center

  9. MEPI SALES PERFORMANCE ('07-'09 td) CURRENT OPERATIONS: 250+cattle/month ~ 20MT primal cuts 2000+hogs/month~ 80MT primal cuts Sales(P) : 0.18% of 2007 Market (386M) Growth Rate: Ave +20% from '07 to '08 2009 Ave Sales: Php33M

  10. SUPPLY CHAIN HOTEL (9%) PRIME CUTS (22% beef, 48% pork) -hyperlinked CATTLES & HOGS SLAUGHTER HOUSE RESTO's/FFC (46%) Top20 70% PROCESSED MEAT (30% sales) DEALERS (9%) OFFALS SUPER- MARKETS (35%) NOTE : SINCE RAW MATERIALS ARE LIVE ANIMALS, MEPI MUST SELL ALSO PROCESSED MEATS BIODIESEL MATERIALS “Unclassified” Other 30%

  11. MEPI SALES BY CUSTOMER TYPE • → 12% - 6 New Big Names, (hotel & resto),discovered MEPI via word of mouth • → Supermarkets – slower MEPI sales growth despite of the allocated mktg budget • → 30% - uncategorized customers

  12. SWOT – In Summary...

  13. Haydee, I suggest that u capture a side-by-side comparison of the Competitors. Pls put bulletized “key messages” like which are the industry BKM Segmentize based on product. Many data but 'PUNCH” is not obvious. Competitors Profile – Haydee

  14. Purefoods CDO Mekeni

  15. Garcia’s Meat Shop

  16. POSITIONING . . . COMPANY NAME: MOTHER EARTH PRODUCTS INC BRAND: MAN-YUMMY! TAGLINE: “Heavy in the belly... Easy in the pocket!” VALUE PROPOSITION: “FOOD TREATS” ATTRIBUTES: 1. PAMPANGA MADE 2. SAFE & W/ HIGH QUALITY 3. AFFORDABLE 4. CUSTOMIZED 5. SUPPLY GUARANTEED Phil Meat Market Structure

  17. JEROME – REBRANDING (MAN-YUMMY!) • 5 Brand Attributes & Experiences • * touch on Identity, Behavior, Performance • APPLY THE SMART PRINCIPLE Objectives Short Term (1 year) Medium Term (2 to 4 years) Long Term (5 to 7 years)

  18. 2P/PRICING -DES • Pls insert here & send

  19. 3P/ DISTRIBUTION STRATEGIES • Hayds, • We agreed to have a General assembly to entice the distributors. • Logo's are just Supermarkets.... How abt the hotel & resto's which compose the bigger chunk of our sales.

  20. Strategy #1 Mother Earth Products INC. (MEPI) needs to strengthen strategic partnership with retailers. MEPI also needs to take the option of joining the SM bandwagon. The strategy will realize the household penetration in Metro Manila area.

  21. Strategy #2 Establish strong presence in provincial areas through Distributorship. Target areas are Central Luzon, Northern Luzon and the Metro Manila areas for the first year. Second Year conceration will cover on Luzon provinces. Five years target is to have nationwide Distribution.

  22. Strategy #3 • Capitalize on the fast pace life and changing lifestyle of the Filipinos. Introduce a kiosk type food outlets in schools, BPO and Call Center areas that will showcase Mother Earth Products. Kapampangan Deli PAMPANGA'S EXPRESS PAMPANGA'S EXPRESS PAMPANGA'S EXPRESS PAMPANGA'S EXPRESS FOOTLONG VALUE MEALS

  23. 4P/ PROMOTION – COCOY Promotions Decisions • Sales Promotions • Advertising • Public relations • Personal Selling • Direct Marketing Application: Integrated Marketing Communications to the plan

  24. Factors considered for the development of an optimum promotion mix: Promotions • Product factors – Relates principally to the way a product is bought, consumed, and perceived by the customer. • Alternative to the common brands in the market • USP – Proudly made in Pampanga. Tastes just as good (if not better) yet more affordable! • Market Factors – The position of the product in its life cycle. • Growth Stage • Sampling – most common strategy employed by its competitors • Consumer Factors – Marketed for household consumption or organization • Primary target are mothers

  25. 4. Budget factors – Influences the types of promotions to be undertaken • Below the line advertising Communication Model (AIDA) Attention --> Interest --> Desire --> Action • Attention - Below the line advertising (flyers, leaflets, discount coupons) • Interest – Proudly Made in Pampanga. Tastes just as good (if not better) and more affordable • Desire– Through sampling at supermarkets and selected occasions/events • Action – Conveniently available (through strategic distribution channels) for customers to purchase

  26. PROMOTION MIX Short Term (1 year) * can be continued to med-long term depending on its success

  27. Long-Term (2 - 4years)

  28. Establishing the Budget The Group recommends the combined use of % of sales and the objective-and-task method to establish the budget. It is imperative that stakeholders would like to make sure that the cost-benefit of each project is advantageous to the company. Projected results of Marketing Promos The effectiveness of Marketing campaigns is projected to increase sales slowly by 15% on the first year and up to 40% on the 4th year. Break-Even Analysisand justification of Promotion Mix To be detailed in the Marketing Plan

  29. Marketing Calendar There should be a quarterly, monthly and weekly coverage of marketing activities. Promotions should be planned way ahead before the start of the year but provisions can be made for activities that are necessary in response to changes in market conditions/practices. Below is a sample of its calendar for 2010.

  30. CRISIS MGT , ECONOMY/CSR/GREEN ADVOCACIES/ – JEROME or COCOY? • Crisis Mgt – sent by Jerome (word file) • Jerome, I suggest you define the roles & responsibilities of each member of the CMT. Define Escalation procedure also based on gravity of the issue. • To whom are they going to report the issue, at what time (ex: after 2 hrs) upon detection of issue. Who among the CMT is to stand as spokesperson to assess whether a closelooping w/ the concerned party is required? What is the operating philosophy among them? Drop everything & convene at the conference room or via conference call?

  31. BACK UP FILES

  32. ORGANIZATION & BIZ MODEL CEO CFO COO QC PRODN HR Sales & Mktg Cashier TRNG CTR Acctg MEAT PROC SLAUGHTER HOUSE Credit R&D Purchasing MAINT Internal Audit

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