Marketing plan for maggi magic sarap

Marketing Plan
For
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 NUMBER OF MARKET
SEASONING RESPONDENTS SHARE RANK
BRAND SURVEYED

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

Sales
3%
13%
Maggi
17% Lucky Me
Knorr
Aji Ginisa
Del Monte
8%
59%

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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 NUMBER OF SHARE
SEASONING RESPONDENTS OF MIND RANK
BRAND SURVEYED

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

Sales
3%
1%
17% Maggi
Lucky Me
7% Knorr
Aji Ginisa
Del Monte

71%

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 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..

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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 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

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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

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.

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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

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, 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 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 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.

25

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:
The challenger is
Maggi P 3.50
P .50 cents P .50 cents higher than
Challenger: Maggi
AjiGinisa P 4.00

2. Market Leader: The challenger Lucky Me
Maggi P 3.50 NONE (New Entrant) has the
Challenger: same price with Maggi.
Lucky Me P 3.50

3. Market Leader:
Maggi P 3.50 The challenger has the
Challenger: P 1.50 lowest price in all brands.
Knorr P 2.00

4. 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

 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

 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

X. IMPLEMENTATION AND CONTROL

 Sales Action Plan

Period 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

 Advertising Plan

Period 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

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 P 80,000 84,000 88,200
Expense

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

Administration P 125,000 131,250 137,812.50
Expense

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 P 92,610 97,240.50 102,102.525
Expense

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

Administration 144,703.125 151,938.2813 159,535.1953
Expense

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  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

 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

Question # 4: What brand of all-in-one seasoning No. of Respondents
mix do you usually use?



D. Aji Ginisa 9


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 3

Question # 6: How often do you usually buy for this all- No. of Respondents
in-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

Question # 7: In buying your chosen brand, what
buying factors can you considered as the reasons for No. of Respondents
continued 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 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


42

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




D. Aji Ginisa 8


Question # 14: Have you heard about Maggi Magic No. of Respondents
Sarap?

A. Yes 68

B. No 2

Question # 15: Have you tried using Maggi Magic No. of Respondents
Sarap?

A. Yes 53

B. No 17

Question # 16: Referring to question #15, If Yes, how‟s
your experience using Maggi Magic Sarap on your No. of Respondents
favorite 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

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