GROUP 3 FINAL PRESENTATION Mother Earth Marketing Plan **Cocoy Amador ** Haydee Aunzo ** Harry Kuma** **Des Manlapa

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-Environment: 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%) 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. S.W.O.T

13. Comparison with competitors Product Line:Frozen Meat Products Direct Competitors

14. 4P’s

15. Comparison with competitors Product Line:Frozen Meat Products Direct Competitors

16. Purefoods Mekeni CDO

17. Garcia’s Meat Shop

19. POSITIONING Company Name: MOTHER EARTH PRODUCTS INC. Brand Name: MAN-YUMMY, Mamang’s, Yo Joe! Tagline: “Heavy in the belly... Easy in the pocket!” Value Proposition: “FOOD TREATS” ATTRIBUTES 1. Made in Pampanga 2. Safe and with high quality 3. Affordable 4. Customized 5. Supply guaranteed Phil Meat Market Structure

20. 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)

21. Current - Competitive Pricing Strategy MEPI is using competitor’s retail or wholesale prices as their benchmark. 2P/PRICING Lower Price Hotdog Ham Hamburger Patties Pork Tocino Sisig Higher Price Bacon Pork Longaniza Beef Tapa Pork & Beef Cuts Garcia’s Meat Shop

22. Current - No Marketing Plan MEPI has no marketing plan in place nor concerns itself on how competitors price their products. In short, a follower. 2P/PRICING Garcia’s Meat Shop

23. Current - 20% Increase in Sales Despite absence of a marketing plan, MEPI managed to increase their sales by 20% in 2008. This is good indication that the business has huge potential to grow. 2P/PRICING

24. Current Prices MEPI’s hotdog price is the lowest at 117/kg while the leading brand Purefoods Tender Juicy hotdog is 55.6% higher. Best-seller with better taste. 2P/PRICING

25. Current Suggested Retail Price 2P/PRICING Competitively low price

26. 2P/PRICING Current Suggested Retail Price

27. Proposed Action Plans & Strategies: Competitive Pricing Strategy 2P/PRICING • MEPI will launch a brand name for its product. • Pushing brand awareness will have effect on sales as people tend to look for better alternative without sacrificing quality and taste. MEPI on its 1st year up to the 3rd year should stick to its competitive pricing strategy while gaining higher market share. • Hire or appoint Sales & Marketing Manager ASAP. • Whether a Sales & Marketing Manager will be hired or appointed, conduct pricing strategy analysis of MEPI’s competitors like price variations depending upon the packaging material i.e vacuum-packed, loosely sold, ordinary packaging etc. and use the information in formulating pricing schemes MEPI’s product lines. • Perform cost analysis of MEPI’s products to determine if price re-alignment is necessary to maintain competitiveness with the leading brand. Man-yummy Mamang’s Yo Joe!

28. Proposed Action Plans & Strategies on Pricing: • As consumers become aware of MEPI’s low price, high quality products, it will be a table brand that consumers will get used to. • For Pork & Beef choice cuts supplied to hotels and restaurants, these will be priced slightly lower than the leading supplier with same discount offerings on bulk orders. In this way, these companies will realized their cost-savings in doing business with MEPI while getting same quality meats from the leading brand. • On the 4th year of this marketing plan, MEPI can slowly increase its price a little lower on the price of the leader while constantly studying how the next challenger is making its move against MEPI’s price increase. MEPI by this time is categorized as a challenger. • By the end of the 5th year, MEPI will be categorized as one of the leading brands of quality processed and choice cut meats thus premium pricing will be achieved. 2P/PRICING Man-yummy Mamang’s Yo Joe!

29. MEPI’S DISTRIBUTION STRATEGIES 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.

30. MEPI’S DISTRIBUTION STRATEGIES 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 concentration will cover on Luzon provinces. Five years target is to have nationwide Distribution.

31. MEPI’S DISTRIBUTION STRATEGIES Strategy #3 Capitalize on the fast paced life and changing lifestyle of the Filipinos. Introduce a kiosk type food outlets in schools, BPO and Call Center areas that will showcase MEPI’s product line. Kapampangan Deli PAMPANGA'S EXPRESS PAMPANGA'S EXPRESS PAMPANGA'S EXPRESS FOOTLONG VALUE MEALS PAMPANGA'S EXPRESS PAMPANGA'S EXPRESS

32. 4P/ PROMOTION Factors considered for the development of an optimum promotion mix: • 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

33. 4P/ PROMOTION 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

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

35. PROMOTION MIX Medium to Long-Term (2 - 4years)

36. 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

37. 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 Marketing Calendar for 2010.

38. 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?

39. BACK UP FILES

40. 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

41. Distributorship The Company will conduct open house for distributorship in FONTANA resort for Metro Manila and Central and Norther Luzon and Area. • Buffet lunch • Show Case fresh and frozen products • Presentation on lucrative projection for the product sales • Giveaways of promotional items umbrella, bags etc. What’s in store for the distributors? • 10% volume discount for minimum required purchase of P200,000.00/ month • Promotional support Requirements: • Availability and qualification of distributors facilities • Submission of letter of intent, which signifies interest to become MEPI’s distributor. • Letter of intent will be submitted to www.motherearth.com.ph or Maunawa St, Duquit, Maqbalacat, Pampanga, Philippine 2010 For Other inquiries pls call:Tel # (6345) 892-65-43 FAX # (6345) 332-3371 Applications will undergo approval process within 7 days time frame

42. Kapampangan Deli PAMPANGA'S EXPRESS & Kiosk Type Food Outlets Mother Earth Products Incorporated will come up with Kiosk type food outlets that will be strategically positioned in schools, BPO and call center areas. It will serve as extension of Mother Earth Fresh cut and processed products by offering COOKED formats which will include the rice toppings like Pares in a bowl, Tapa toppings, Longa Rice, Tocino Meal for Pampanga’s Express and ready to eat sandwiches for Kapampangan Deli. Kiosk will be company owned as initial offering to boost the branding of the products. After a year of successful operation it will be offered as franchise. The key features are : • Customer convenience • Competitive pricing • Quality products

43. Product Line-up Product Line UpSRP Single Serve Liempo P35.00 Pork BBQ P25.00 BBQ Porkchop P 35.00 Rice Meals Tapa Toppings P50.00 Longa Rice P50.00 Tocino Meal P50.00 Sisig Rice P60.00 Pares in a bowl P60.00

44. Costing Franchise Investment Franchise Fee(inclusive of VAT) =P150,000.00 Equipment =P 90,000.00 Griller (gas) = 40,000,00 Gridle (gas) = 25,000.00 Deep fryer (gas) = 3,500.00 Storage Cabinets = 5,000.00 Gas Tank = 1,500.00 Refrigirator = 9,000.00 Rice Cooker = 1,000.00 Initial Stocks = 5,000.00 Total P 240,000.00 How to become Pampanga’s Express Franchisee Submit letter of intent, which signifies interest to operate Pampanga’s Express or Kapampangan Deli Letter of intent will be submitted to www.motherearth.com.ph or Maunawa St, Duquit, Maqbalacat, Pampanga, Philippine 2010 For Other inquiries pla call: Tel # (6345) 892-65-43 FAX # (6345) 332-3371