Ateneo de Manila University
John Gokongwei School of Management
Project Information Cataloging System (PICS)
Class Project Information and Cover Sheet
| Name of Student/s: (Surname, First name, MI) ANG, Alexandra Erika L. BLANCH, Paulo Austin D. CHUA, Bianca Monique T. de la CRUZ, Catherine Marie C. LIM, Karlo Sebastian A. | School Year: 2011-2012 | Semester: First |
| Subject Code: MKT 101 | ||
| Course Name: Principles of Marketing | ||
| Teacher(s): Mr. Ronald C. Molina | ||
| (Information below this line and in this column for use by Faculty &/or PICS staff only.) | ||
| Grade: | Call Number: | |
| Project Title: A Marketing Plan for a new Product under | Functional Area | |
| Client: Universal Robina Corporation | Comments | |
| Industry Category: Ready-to-Drink Tea | ||
| Abstract (150 words or less) Universal Robina Corporation – C2 Cool & Clean falls under the RTD (ready-to-drink) tea category of the Philippine beverage industry. The brand’s major competitors include Coca-Cola’s Real Leaf and Pepsi’s Lipton. In this paper, the group will examine the findings of the current industry and will suggest an expansion of the C2 Cool and Clean brand through the introduction of C2 Cool & Clean Immuni-Tea, an immunity boosting RTD tea line that targets busy, on-the-go individuals who cannot afford to get sick because this will prevent them from performing at their best. As a campaign, the group prepared an overall marketing strategy and marketing mix for the new line of RTD tea with the hopes that it will answer the people’s need for boosting their immunity and enhance their ability to perform efficiently in daily activities. |
| Author(s)’ Recommendation Key Words RTD (ready-to-drink) Tea, Universal Robina Corporation – C2, Immunity Boosting, Moringa, Licorice, C2 Cool & Clean Immuni-Tea |
Table of Contents
Executive Summery................................................................................................................. 12
Marketing Background........................................................................................................... 12
Overview of the Industry.................................................................................................. 12
Market Size (Volume / Volume)........................................................................................ 12
Market Profile ......................................................................................................................... 14
Competitive Analysis............................................................................................................... 14
Competitive Positioning....................................................................................................... 14
Market Shares / Sales Volume / Sales And Profit Trends............................................... 15
Marketing Strategies.............................................................................................................. 16
Strengths and Weaknesses of Competition...................................................................... 17
Company Background........................................................................................................... 19
Company Profile.................................................................................................................... 19
Current Position of the Company ....................................................................................... 20
Company Bran Strengths and Weaknesses Analysis..................................................... 20
Brand Consumer Profile........................................................................................................ 23
Identified Market Segments.............................................................................................. 23
Market Needs Being Addressed...................................................................................... 24
Buying Patterns................................................................................................................. 24
Usage Habits....................................................................................................................... 26
Present Marketing Strategy...................................................................................................... 27
Segmentation, Targeting and Positioning.................................................................... 27
Marketing Mix...................................................................................................................... 28
Competitive Strategies Employed.................................................................................... 30
Identified Marketing Opportunity.......................................................................................... 30
Proposed Target Market......................................................................................................... 32
Demographics..................................................................................................................... 32
Psychographics.................................................................................................................. 33
Behavioral............................................................................................................................ 34
Geographic.......................................................................................................................... 34
Marketing Objectives............................................................................................................... 36
Overall Marketing Objectives............................................................................................... 38
Specific Objectives and Targets........................................................................................... 38
Market Shares, Sales and Profits.................................................................................... 38
Overall Marketing Strategy..................................................................................................... 38
Marketing Mix............................................................................................................................ 39
Product..................................................................................................................................... 39
Product Strategy / Positioning Statement....................................................................... 39
Product Description / Features / USP............................................................................ 40
Packaging........................................................................................................................... 45
Pricing...................................................................................................................................... 49
Pricing Strategy.................................................................................................................. 49
Detailed Product Costing................................................................................................. 49
Selling Price index vs. Competition................................................................................ 49
Distribution.............................................................................................................................. 50
Distribution Strategy.......................................................................................................... 50
Trade Channels................................................................................................................. 53
Distribution Scheme......................................................................................................... 55
Promotions............................................................................................................................... 57
Overall Promotions Strategy............................................................................................. 57
Advertising......................................................................................................................... 58
Consumer and Trade Activities........................................................................................ 63
Merchandising / Point of Purchase Materials............................................................... 64
Publicity / Public Relations / Events............................................................................... 64
3-Year Financial Forecasts................................................................................................ 65
Sales Volume / Value Projections................................................................................... 65
Detailed Marketing Budget and Marketing Timetable................................................. 67
Income Statement.............................................................................................................. 79
Bibliography........................................................................................................................... 80
Executive Summary
Marketers have seen a boom in the patterns of consumer behavior, patterns in which a new line of potential demand has arisen and developed from a certain trend and therefore, a need to be addressed and satisfied – the stronger immune system for the Filipino’s hectic schedule. This need has been associated in the past to be fulfilled by certain products in the market, and tea-based beverages are definitely on top of the list. Since then, the inherent motive of players in the food and beverage industry was to consistently come up with ways on how to deliver satisfaction to the optimum level. Indeed, as the market’s support for RTD (ready-to-drink) tea products strengthened and therefore, resulted in growth for the tea industry’s market share, there came a logical incentive for marketers under the tea beverage industry to dwell on innovative approaches towards gearing even more for this highly demanded good.
Yet, it must be affirmed that before venturing into the realm of ready-to-drink tea products, the active players and competitors must firstly be considered. Undoubtedly, Universal Robina Corporation’s C2 COOL & CLEAN Cool & Clean is still the leader, owning twenty-five percent (25%) of the RTD tea market share. Trailing behind them is Zest-O’s One Tea, which approximately has eleven percent (11%) of the total RTD tea market share. Finally, not too far behind is Lipton Iced Tea by Pepsi Co., which has an approximated market share of seven percent (7%). As these players fight for RTD tea supremacy, there is the essential drive for all of them to address the needs of the customers in the best way possible relative to other competitors, may they be dominant or minor players in the arena.
To begin, an expansion of C2 Cool and Clean is proposed through the addition of the immunity boosting RTD tea line called C2 Cool & Clean Immuni-Tea. The overall product strategy of this campaign is to explicitly enforce the product’s objective –primarily, to educate consumers about the importance of having a strong body amidst the busy lifestyle so as to avoid certain illnesses that arise from having a frail immune system. Because of the demands of society, work, school, family, and other external factors, fatigue is not a relatively alien term for most Filipinos. As fatigue spikes, the immune system becomes fragile, deteriorates, and in effect, fails to deliver its purpose of ensuring a strong and healthy disposition fit for the busy metropolitan lifestyle. Relatively, common diseases, such as colds, flu, cough that are effects of having a poor immune system are just some that could be mentioned. In this light, C2 Cool and Clean Immuni-Tea seems to have all the solutions in one package as it carries the benefits of boosting one’s immunity in an instant by the combined effects of Moringa and Licorice and at the same time, exhibiting a cleansing sensation thereafter with the presence of antioxidants and fiber. Effectively, it does not only detoxify the body, but also brings the effects of protecting the body from complications that could so easily arise if the immune system were to fail. Hence, in this context, the product has the capacity of going beyond the typical benefit of the C2 Cool & Clean Green Tea line and the other competing brands. C2 Cool and Clean Immuni-tea therefore, has the advantage of assuming a place above all the rest – that it is better than the existing C2 line and far more beneficial relative to other competing products.
Presenting this fairly new product, thus, is to penetrate the market systematically so as to identify who really needs the benefits of C2 Cool and Clean Immunit-Tea. In considering this matter, demographic, geographic, and psychographic factors could be appropriated. For the demographics, the product would be for people fifteen (15) to thirty-four (34) years of age falling under classes B and C, most of which are either undergraduates or employed individuals. Geographically, these people are known to reside in the dynamic urban and metropolitan areas such as, Davao, Cebu, and Manila. Essentially, they have the psychographics of leading busy and active lifestyles. For the students, they consistently try to balance the responsibilities of strenuous schoolwork in efforts to attain the college degree they’ve been targeting. For the employed, their central focus is maintaining their work efficiency in spite of the busy environment and the responsibilities associated with being an earner in the family.
Ultimately, all these proposed observations based on certain realities focus on one singular aspect of the market – that there are indeed people out there who lead such demanding lifestyles and consequently, are highly prone to stress inducing fatigue, thereby opening them to the risk of being infected by the common illnesses associated with having a weak immune system. In connection, they are in need of something that would aid them in coping with all the pressures and demands and in effect, would grant them the privilege of a consistently strong immune system at all times.
C2 Cool and Clean Immuni-Tea must therefore be proposed at a price that the targeted consumers are willing and able to pay, thereby focusing on the ultimate goal of grabbing the market shares of other identified competitors and dominating the RTD (ready-to-drink) tea industry in the shortest time possible. Having assumed a place as a product that offers more than the detoxifying effects of the former C2 COOL & CLEAN line, its price is needed to be of higher level, all for the more-for-more positioning it has – that more value can be expected from a good with high value. As a new line under URC’s RTD Tea products, C2 Cool and Clean Immuni-Tea would have corresponding retail prices of P12.95 per 230 ml, P19.95 per 355 ml and P 55.95 per liter.
To maximize the distribution of C2 COOL & CLEAN Cool and Clean Immuni-Tea, it’s best to systematically segment the periods, separately having different yet developing main objectives. For the first year, the central effort of the distribution would be for the expansion of the product to metropolitan districts. To specify, the insertions would be prioritized for the leading groceries and supermarkets to amplify optimal sales volume, convenience stores to push for the purchase of on-the-go consumers, and drug stores to be at par with the health awareness value contained within the product’s name. As a new brand in the market, it’s important first to develop a good reputation in order to capture the attention and trust of the potent buyers.
For the second year, the focal point would be to expand the distribution methods to other potent networks and at the same time, to allocate further development efforts in the already established metropolitan areas. The new regions would include nearby provincial districts that have their own industrial line of groceries, supermarkets, convenience stores, and the like, all of which pose as potential channels for huge sales volume and product awareness. For the formerly prioritized urban areas, it’s important that these receive innovative developments even for the minor sales points so as to expand even further the distribution channels. With this, plans pertaining to the insertion of C2 Cool and Clean Immuni-Tea in school cafeterias, vending machines, and sari-sari stores are to be appropriated and taken into action.
Finally, for the third year upon launch, it’s important that from this point onwards, all contracted retailers have already assumed a permanent shelf space for C2 Cool and Clean Immuni-Tea. By this time, on the presumption that the product has already penetrated the market deeply, then what’s left for the company to do is to project the strength even more through the years to come.
Yet, distribution is only expansionary in the sense that it has the capacity to widen a product’s range of availability. What’s vital to be primarily addressed is the actual purchase and buying incentive of the market through promotional efforts, all for the fact that they have the capacity to increase brand awareness, brand consciousness, brand purchase, and ultimately, brand preference.
With this in mind, it is necessary to invest highly in the first year in the market, shedding out P214,140,001.70 initially, and then decreasing advertising aggression in the succeeding years as the market becomes more familiar with the brand and hopefully, more inclined to buying it and appropriating it in their respective lifestyles.
The overall promotions strategy, therefore, is to reach the target market by positioning C2 Cool and Clean Immuni-Tea in advertisements such as print, digital, radio and television.
The print advertisements are for the purpose of sparking the market attention and curiosity. As billboards are to be placed in main highways such as C5 and Edsa, it has the advantage of being noticed easily by passers-by, may they be from the rural or urban areas of the Philippines. Also, the new product will be able to grab attention when seen in lifestyle magazines or newpaper.
Social Networking sites, on the other hand, are so powerful, in a sense that they have the ability to reach people even in the comforts of their homes. Nowadays, with the reality of Facebook being a medium that even middle-aged individuals are familiar of, it’s logical to claim that advertising efforts made through it are not to be taken for granted. According to statistics, with an estimated 24,000,000 users in the Philippines alone and the total population being around 94,000,000, then there is a huge rate of twenty-six (26%) that’s being penetrated automatically through efforts of digital marketing.
Lastly, and probably the most influential would be use of TV commercials, as well as radio, as vehicles to directly communicate to the consumers their needs that have to be actualized, what C2 Cool and Clean Immuni-Tea is all about and how it can do the job perfectly and conveniently. In line with the wellness value is the person of Kuya Kim, a figure who is well known for his reputation in environmental issues and therefore, a reliable source for matters regarding health, viral threats, and preventive measures that could be taken. Fundamentally, his deliverance of the message through TV advertising will not only trigger awareness, but also prompt the education of the people regarding the information about themselves as beings who are prone to sickness, the world around them, and how to protect themselves from threats.
Ultimately, if the mentioned goals are met and the data gathered from the focus group discussions prove to be accurate, then certain quantitative expectations can be mentioned as reachable standards. Effectively, these quotas are only theoretical yet hypothetically, could be attained or even bettered if outcomes are fortunate enough for C2 Cool and Clean Immuni-Tea. Approximately, the Philippine population is to reach a number somewhere around 100,000,000 by 2012 and would successively grow by an estimated rate of two (2%) for the next two (2) years. Given this estimation and the percentages based on the FGD’s and UAI’s, projected volume in 2012, 2013 and 2014 can be expected to be 38,867,558 units, 46,807,141 units and 55,015,262 units, respectively.
Overall, C2 Cool and Clean Immuni-Tea could be perceived as a product for striking a balance – a balance needed for all demanding aspects surrounding the typical Filipino life. Because of the reality that some people actually fall prey to the common illnesses threatening the active lifestyle, then there is an inherent need for protection. All in one package, C2 Cool and Clean Immuni-Tea is the easiest, most convenient and best tasting way to keep one’s immune system strong. It is the drink to be looked for in groceries, supermarkets, convenience stores, cafeterias, vending machines, and household refrigerators nationwide.
I. Marketing Background
A. Overview of the Industry
The tea industry in the Philippines has increased its market volume in the recent years as the fruit of gaining popularity and support from majority of the Philippine population. Although the consumption of black tea, the largest tea category, is expected to decline over the forecast period, the overall tea consumption in the Philippines should spike due to the growing demand for fruit/herbal, green and instant tea beverages as Filipinos begin to adopt healthier lifestyles rooted on general wellness.
According to Euromonitor, companies of the food and beverage category responsible for the innovations of mature and dynamic tea types continue to lead the market with a computed 25% value share of the overall tea industry for the year 2010. The hit success can be attributed to the increasing awareness of society regarding the following types of tea: black, fruit, herbal and instant, as well as the extensive distribution of the different tea brands in both off-trade and on-trade channels.
Table I. Unit and numerical figures of the RTD (Ready-to-Drink) Tea Industry in the Philippines as computed by Euromonitor for the year 2010.
| | Category | Subcategory |
| Units | 240 million liters for 2010 | 189.7 - Off-trade Sales of RTD Tea by Category: Volume -2010 |
| Value | P49 per liter for 2010 | 8,239.4 - Off-trade Sales of RTD Tea by Category: Value -2010 |
For the past three (3) to five (5) years, tea manufacturers have majorly capitalized on the health benefits of tea in order to generate demand from the public. Such a value trend is expected to alter the beverage preferences of Filipinos, particularly middle and high-income consumers by the mere fact that the essential nutrients found in it have been strongly highlighted such that they are known to be great agents in strengthening the immune system, thus, their ability to fight common illnesses. Consequently, demand for healthier alternatives is therefore expected to increase over the forecast period, from which ready to drink tea products will strongly benefit.
In 2010, tea consumption remained low in the Philippines as Filipinos generally preferred coffee. Nevertheless, tea manufacturers sustained themselves to focus on the health and wellness trend by promoting tea as the best choice. Domestic manufacturers of fruit and herbal teas together with the Department of Health persistently continued to educate Filipinos about the health benefits of tea, emphasizing on its ability to prevent, relieve and treat common illnesses such as stomach aches and coughs, colds, and flu, thereby providing the essential nutrients that assist in maintaining a generally healthy body.
Another particular trend that highly influenced consumer behavior is climate change. In reality, Filipinos are so used to the tropical climate. Yet, the unusually high temperatures in 2010 made consumers look for cold and thirst quenching beverages in efforts to relieve themselves from the extreme discomfort from the scorching heat. RTD tea beverages therefore, benefited from the situation as these products were perceived as refreshing drinks. In addition, the health and wellness trend again took into effect as it further improved demand due to the bias that ready to drink tea is a healthier alternative compared to carbonated drinks, which were formerly the common thirst quencher on a warm day amongst locals.
Domestic companies, mainly Universal Robina Corp, Zest-O Corp and San Miguel Corporation, continued to generate the bulk of off-trade sales of RTD tea, thereby accounting for 77% shares in 2010. The dominance of local players can be attributed to their greater knowledge of and experience in the local market. Despite the long-standing presence of Lipton’s Nestea in the Philippine market history, demand for RTD tea only escalated after the entry of Universal Robina Corp with its C2 Cool & Clean brand.
B. Market Profile
The target market of ready to drink tea in general is the middle income to high-income bracket. These consumers typically can afford consumption for such beverages and therefore, better chances of high sales volume. Simultaneously, they also have the tendency to be more aware of health and wellness needs basically due to unlimited access to the diverse forms of media for advertising and promotions as carriers of information. However, unlike Asian neighbors, it is important to note that the Philippines is not, historically speaking, a tea drinking country. Hence there is an inherent need to educate the population on the health benefits of tea consumption.
As mentioned earlier, the Philippines, having a warm climate, is not such a comfortable place to be in especially during the peak of heat waves. For the local consumer, it’s all natural to look for a thirst-quenching treat in compensation for the discomforts of the heat.
In line with this, demand for refreshing beverages significantly boosts during the months of March, April and May, while the rest of the year, the demand lessens partially yet remains constant.
Convenience stores are also patronized, but mostly by the younger generation, as they prefer to buy these beverages chilled and ready for consumption on a per need basis. Green tea is the top choice amongst consumers in the Philippines, accounting for an 80% share of off-trade volume sales in 2010. The preference for the product is mainly due to the perceived health benefits of regular consumption. The ready-to-drink format is commonly infused with fruit flavors to enhance its taste and provide more options to consumers
II. Competitive Analysis
A. Competitive Positioning
1. Zest-o Corporation as one of the leading competitors of Universal Robina Corporation, positions itself in such a way that it caters to the masses of the market. This is accomplished by firstly, making their products available at affordable costs. Having relatively low prices compared to other brands enables Zest-o to gain loyalists more rapidly at higher rates and therefore, cover a bigger bulk of the different types of consumers nationwide. Secondly, Zest-o has a wide range of product portfolio, which makes them a formidable competitor not just with RTD Tea beverages, but also with other products under the beverage industry. Finally, Zest-o uses the tool of trend analysis to gain competitive advantage. Instead of being innovators of new products that have not yet been tested in the market, Zest-o settles with focusing on the already proven hit trends. As they adapt these products, they promise to satisfy similar consumer expectations at lower prices.
2. Pepsi Co. is also another strong competitor of Universal Robina Corporation. Pepsi positions itself in such a way that it makes itself available to individuals with “hip” and active lifestyles. With the certain fizz felt after each gulp of their leading product Pepsi Cola, Pepsi Co. promises to provide thirst quenching drinks for those active and on-the-go consumers seeking refreshment a long and tiring day. Given that Pepsi Co. is a multinational company, it aims to make its presence nationwide in order to maximize product distribution all over the country.
B. Market Shares/Sales Volume/Sales Trend/Profit Trend
1. Market Shares
a. According to Euromonitor, statistics show that Zest-o has approximately 10.9 % of the total Philippine RTD market last 2010.
b. Pepsi on the other hand has 7.4 % of the total Philippine RTD market last 2010.
2. Sales Volume
a. In 2010, Zest-o sold 20.6773 million liters of RTD Tea beverages.
b. In 2010, Pepsi sold 14.0378 million liters of RTD Tea beverages.
3. Sales and Profit Trends
C. Marketing Strategy
1. Product
a. Zest-o offers a lengthy line of RTD products. From tea beverages, they also have an array of fruit juices and dairy-based drinks, making their product line rich in variety. As for the RTD tea drinks, the main threats that URC must keep an eye on are One White Tea and One Plus.
b. Pepsi Co. has always been accustomed to carbonated drinks and sodas. Pepsi Cola, which is known as their leading brand has always led the company’s direction in terms of sales and popularity. Basically, it’s the product that their company is most known for. Other sodas under the company are Mirinda and Mountain Dew, which are also widely famous carbonated beverages. However, despite having focused all these years on carbonated drinks, Pepsi has decided to venture out of their box and expand their product line to non-carbonated drinks. Now, Pepsi Co. offers more than just sodas but also other RTD beverages, which now include RTD tea products. Leading Pepsi’s race in the RTD tea industry is their Lipton Iced Tea.
2. Price
a. One White and One Plus both come in different sizes, each having corresponding prices. Their smallest size is at 355 mL. It comes at an affordable price of Php 12 while their 500 mL bottle costs Php 3 more expensive at Php 15. In comparison to URC’s C2, (which sells at Php 13 for 355 mL and Php 18 for 500 mL) it’s relatively cheaper giving it the (more for less?) advantage.
b. Pepsi Co. has always aimed to be situated in the middle-priced area of the competition. For instance, in the carbonated drinks arena, the leading brands here in the Philippines are Cosmos, Pepsi, and Coke. For 500 mL, the brands respectively cost Php 17, Php 18, and Php 21, thus, fulfilling Pepsi’s goal. For the Lipton Iced Tea, Pepsi’s price is Php 17, making it cheaper than C2 yet more expensive than One White and One Plus.
3. Promotion
a. Zest-o Corporation has moderate promotion efforts. Indeed, their products are highly visible and available in leading major supermarkets such as Rustan’s Fresh, SM Hypermart, Unimart, Parco, etc., yet their advertisements are not as numerous and aggressive compared to leading RTD tea competitor C2 of URC. Instead of the common medium that most companies work with (e.g. TV ads, radio ads, print ads – most of which are utilized by URC), Zest-o makes use of web-based promotional techniques in order to interact with the consumers in their daily internet usages, thus, giving Zest-o the privilege of having a closer and more personal relationship with their target market.
b. Pepsi Co., on the other hand still lacks investments in promotional efforts and must take action into expanding this area further in order to make itself more visible and known to the market.
4. Place
a. Zest-o is dominantly present and available in leading supermarkets and groceries nationwide. They are however, poorly distributed in small-scale wholesalers such as “sari-sari” stores, restaurants, cafeterias, etc.
b. Pepsi has approximately 275,00 points of sale here in the Philippines alone. As opposed to Zest-o, apart from the distribution to major groceries and supermarkets, Pepsi manages to cover the small-scale wholesalers such as convenience stores, drugstores, cafeterias, etc.
D. Strengths and Weaknesses of Competition
1. Strength
a. Given that Zest-o has relatively lower prices than other competitors, the company is then able to achieve higher volume sales at faster rates. Furthermore, customers who are price-conscious tend to remember their product more than others, thus, making the accumulation of loyalists an almost immediate effect. All this is based on the company’s dependence on mass consumption driven by their low prices.
b. The main strength of Pepsi Co. is given by the fact that they have worldwide recognition. In terms of global market strength in the soda industry, Pepsi comes second to The Coca Cola Company, thus, giving it the edge over other local competitors (URC and Zest-o being one of them). In addition to that, their nationwide presence and dominance has given them enough fiscal power to secure long-term growths for potential segments and the ability to support those trapped in troublesome markets. Finally, the fact that they cover not just carbonated drinks but also non-carbonated drinks gives them the advantage of having more various products than other companies.
2. Weakness
a. As mentioned, the medium that Zest-o is focused on in terms of promoting themselves and their products is the World Wide Web. Indeed, the company is able to catch the customers in their most private endeavors thru the Web. No one can argue that Zest-o would benefit a lot if they achieve success in establishing the desired connection with a huge number of Internet users. Yet, doing this is very difficult due to the passiveness of the consumers when it comes to marketing efforts done over the Web. Why is this so? – the realities of spam mail and VIRUSes have made people very cautious about the things that they click on the browser, thus, making penetration very hard for the marketers. On a more arena-based scenario, it’s true that URC’s C2 is still the most dominant in the RTD Tea beverage industry. It was mentioned earlier that one of the company’s key advantages is their rich line of various products based on the successful trends set by prior companies. However, this strength as followers instead of innovators also proves as a weakness in this point of view. Because they merely obey the dictations of the market thru the efforts of other companies, they have no room to provide dictations in markets themselves. This is also true for the promotion of health and wellness as being dominated by C2 alone. They simply follow and settle with what other companies have set, leaving no room for the company’s voice in the market area.
b. Pepsi Co. has always been known for Pepsi Cola and other carbonated drinks. However, the market has come to the realization of sodas and other carbonated beverages as being unhealthy choices. Because of this, Pepsi suffers with Carbonate bias from the consumers, meaning that as they are associated with having sodas and other carbonated drinks as their main products, the company is stereotyped as a poor provider of the healthy lifestyle as opposed to URC which is well known for offering RTD wellness teas such as C2. Indeed, Pepsi has ventured into other non-carbonated drinks and in effect, has also adapted themselves into the more natural and healthy themes. However, it is still too early for these efforts to be fully recognized and appreciated by the market.
III. Company Background
A. Company Profile
Universal Robina Corporation (URC), a subsidiary of JG Summit Holdings was established in 1954 by John Gokongweias Universal Corn Products. Initially, it produced glucose and corn starch but as the founder envisioned to transform it into a multinational company, he founded Consolidated Food Corporation to produce and market his own brands of consumer goods. Under Consolidated Food Corp, John Gokongwei ventured into the coffee industry and the chocolate confectionery, hence the birth of Blend 45 coffee, the first coffee blend manufactured in the Philippines and Nips, the candy-coated chocolate that became very famous to Filipino children. In 1966, the entrepreneur founded Universal Robina Corporation which produced a variety of snack products under the Jack ‘n Jill brand. Through the years, URC has become one of the biggest producers of fast moving consumer goods (FMCG) in the Philippines. It has established its reputation as one of the largest, mass-friendly branded food products companies in the country and as a fulfilment of the founder’s vision, the companyis known to be the first “Philippine Multinational”.
URC has three distinct divisions: Branded Consumer Food Group; Agro Industrial Group; and Commodities Group.Of these, Branded Consumer Food Group (BCFG) is the largest division, accounting for over three quarters of its turnover. Under BCFG are the brands such as Jack’n’Jill, Payless and Nissin, Hunts, and C2, through which snack products, instant noodles, tomato products and RTD beverages, respectively, are sold.The company has expanded into the international market by entering into different Asian countries such as Thailand, Vietnam, Indonesia, Singapore, Malaysia and China, as well as, into the U.S.URC’s nationwide distribution network includes supermarkets, convenience stores, sari-sari stores, full-service restaurants, fast food establishments and carinderias. With the size and efficiency of its distribution network, it is no longer a surprise that URC has grown to be a multinational company.
B. Current Position of the Company
Universal Robina Corporation has encountered even more success upon its entry to the Asian beverage industry. With the introduction of C2 Cool and Clean, it has grown to be the largest player in the Philippine ready-to-drink (RTD) tea industry. The company consistently owned most of the market shares, occupying the top position in terms of volume and sales, with Zest-O Corp.’s One and Pepsi’s Lipton Iced Tea occupying the second and third places, respectively.
C. Company/Brand Strengths & Weaknesses Analysis
Strengths
A strong brand portfolio provides for leading market positions.
Obviously, URC has a strong brand portfolio. The combined market shares of Piattos (potato chips), Nova (corn chips) and Chippy (extruded chips), which are marketed under the Jack 'n Jill brand, sum up for the largest market share in the salty-snack industry. Furthermore, the two chocolate brands of the company, namely, Cloud 9 and Chooey Choco chocolate are dominant brands in the country; while the brands Magic Flakes crackers, Cream- O cream-filled chocolate cookies, and Hello cream wafers, etc. combine for market shares that render the company to be the third largest player in the biscuit industry. These well-known and well-loved brands along with good marketing strategies provide the company with a strong market position.
URC has established a strong market position in the Philippines. It is known to be a dominant player by holding the most market shares in savory snacks, candies and chocolates; and as mentioned before, it is the largest player in the Philippine ready-to-drink (RTD) tea industry. In addition, holding top ranking positions in the market of coffee and cookies/pretzels, the company has become the second largest player in the coffee industry and a significant player in the biscuit industry, respectively.
Excellent Operations Management and Marketing Performance
URC has built its reputation with the quality and availability of its goods as the foundation. In order to have done this, it has to have a good operations management. Included in this are areas such as, product design, quality management, location strategy, operations scheduling, etc. First, product design involves R&D: knowing what satisfies the consumers and designing a product based on those specifications. Second, quality management involves ensuring that every stage of the production process conforms to a standard quality specification in order to efficiently produce top-quality finished goods. Third, location strategy involves building facilities and warehouses in strategic areas such the size and layout of the facilities can bring about the most efficient production; and that from these locations, finished goods can be easily delivered to intermediaries or distributors who help in dispersing the goods to wholesalers and retailers who in turn sell these to consumers. Finally, operations scheduling involves systematic planning of the company’s production in order to accommodate the demand on time.
The advantage of the company does not only rely on good quality management but on excellent marketing performance as well. The most important factor is the knowledge of what customers need and want. URC is very sensitive to this aspect of their market, especially in their constantly changing preferences. Next is designing a customer-driven marketing strategy where the marketing mix and marketing strategy are created. In this stage, a very good communication between the marketing team and the operations department of the company is evident. This can be seen in product design under operations management because the R&D team must work hand in hand with the marketing team which performs the understanding of the marketplace in order to produce a product that consumers will buy. And then everything between the company and consumers that comes after the product designing process will rely on how well the marketing team forms marketing programs that deliver superior value to customers. URC is good in this part, for the few decades of its existence, it has produced and marketed consumer goods that have been a staple of Filipino lives. The company was able to generate profit and customer equity because it has captured value from them by providing them delight withtheir products.
URC, a “market follower”
The company benefits from introducing a similar product to the leading brand in rapidly growing categories shortly after demand takes off, a strategy which incurs less R&D costs. Since there is already an established market, the only focus will be to tweak the existing design of the specific product. In the case of immunity-boosting tea, if URC decides to introduce this, it will be placed under the category of RTD tea such that it would be sold under the brand of C2 Cool and Clean which has an existing market already and which is forecasted to grow further in the coming years.
Weaknesses
Geographical Concentration
Despite its presence in the U.S and in other parts of Asia, URC is very much dependent on the demand of the Philippine market such that majority of its revenues are secured from the consumption of those in the country. The revenues earned from international markets comprise a very minimal part of the company’s revenues. This high dependence to the Philippine market limits the growth of the company since the up and down fluctuations or sudden drops in demand would seriously affect its earnings. Unlike other competitors with higher demands from international markets, URC would be greatly affected by the fluctuations in the Philippine economy because the demands of international markets are not big enough to cover for the demand of the local one.
Opportunities
Growth of the RTD Tea Industry
The RTD tea industry is said to be growing further in the coming years. A 21.8% CAGR or Compound Annual Growth Rate in volume and 22.9% CAGR in value areforecasted to be seen in the coming period.
Health and Wellness Trend
More and more Filipinos are changing their lifestyles due to the health and wellness trend. Health consciousness is growing in them such that they prefer to consume products with additional health benefits.
Threats
Highly Competitve Market
The availability of direct substitutes poses a threat to the growth of individual brands in the market. Since there are a lot of brands competing in one category while total market shares are not increasing as much, a growth in one brand will definitely be shrinkage in another.
Existence of Substitutes
The availability of indirect substitutes poses a threat to the growth of RTD tea industry. The presence of a variety of non-alcoholic beverages, local and imported,such as powdered tea mix, flavored sparkling water, fruit/vegetable juice, carbonated drinks, etc. may be possible alternatives for consumers.
D. Brand Consumer Profile
Identified Market Segments
Universal Robina Corporation targets the mass. Due to a variety of products, the company is able to reach out to all social classes, age, and gender and family sizes with varying lifestyles. Its green tea segment caters to athletes, students, health-conscious individuals, businessmen and other on-the-go workers. Its snack foods cater to all: individuals, teens, and family-oriented households. The company chooses not to target just a specific segment in the market, but to provide each individual with products that matches their needs and wants subjected to changing trends.
Market needs being addressed
Universal Robina Corporation is able to meet the market’s growing need for variety, convenience, novelty and cheaper alternatives. With a wide array of product ranging from snack foods, beverages and instant noodles, the company is able to provide its consumers with a wide choice of products. It provides it consumers with product choices that they can match with their current and changing lifestyles.
The growing Global awareness for health prompted the company to produce C2 Cool and Clean in response to such trends. C2 Cool and Clean Green Tea continues to cater to the growing group of people who values health and wellness.
Changing times also affected the company’s decision in production of new goods. Economic slowdowns made way to high demand for instant pouch and cup noodles across the country. The company continues to respond to this need by producing cheaper alternative to already existing brands of noodles.
The company is also heavy on providing the consumer with products that are readily accessible through its mass distribution across the country. URC products are available in every major and local supermarket, and convenience stores.
Buying Patterns
To analyze the buying behavior and usage habits of consumers who purchase goods under URC, most especially RTD Tea, the group conducted a survey. Our survey results showed that forty-two (42) percent of the consumers who purchased C2 Cool and Clean Green Tea buy at a weekly basis. Twenty-three (23) of those who consume the drink purchase it at least thrice a week.
Fig. I Buying Frequency Habit of C2 Cool and Clean
Thirty-three (33) percent of total respondents purchase C2 Cool and Clean purchase at local supermarket. They prefer to buy their drinks at the supermarket because of the availability of the product in all sizes and flavors. On the other hand, twenty-seven (27) percent of total respondents purchase C2 Cool and Clean at local convenience stores out of easy access and convenience.
Fig II. Distribution Channels where peple mostly buy RTD Tea
With a versatile packaging strategy, Universal Robina Corporation is able to cater to individual users and families as well. Students tend to purchase more regular-sized bottled drinks due to its on-the-go quality. Such sizes are made more available in sari-sari stores and convenience stores located around schools and universities where it is more accessible to students. On the other hand, families and households seek medium to large-sized bottled drinks more often. Such sizes are mostly available in supermarket where most shoppers of the family purchase their family needs.
Usage Habits
Sixty (60) percent of respondents who drink C2 Cool and Clean prefer to consumer the drink with snacks. Only nineteen (19) percent answered that they consumed the drink with rice meals. The remaining twenty one (21) percent had mixed answers. Most of them claimed that they preferred to drink C2 Cool and Clean without any food.
Fig III. Common food consumed with RTD Tea
Forty (40) percent prefer to consume C2 Cool and Clean during merienda or snack time. Only thirty-one (31) percent of the respondents prefer to drink it during meal times. The remaining twenty-five (25) percent mentioned that there wasn’t a specific time of day where they most often consumer the drink. Majority mentioned how they would consume C2 Cool and Clean after sports and recreational activities to quench their thirst.
Fig. IV Time of Day RTD Tea is mostly consumed
Present Marketing Strategy
Positioning
Universal Robina Corporation considers itself as market follower, creating lines of products that mimic local and global trends. It continues to offer local versions of imported goods with the introduction of Spuds that is heavily similar to well-sought goods such as Pringles Potato chips and Lays. Nonetheless, the company still continues to improve and invest in Research and Development in creating new products to match the consumers wants.
The company also gains a lot of loyalty from its customers by keeping its products at low prices while still providing them with good quality products with the right amount of benefits. In catering to the demand for cheaper alternatives due to changing times, the company has introduced the Payless Brand, a cheaper brand with about the same benefits of other competing brands. Moreover, changes in price of goods are kept at a minimal rate to retain customer loyalty.
Furthermore, the company provides its consumers with variety of pack sizes ranging from small to family-sized packed goods to cater to all demographic. Its bottled drinks are available in three sizes: small, medium and large or litro sized bottles. Their current packaging strategy is able to cater to both individual users and family-oriented households. Its Jack ‘n Jill product line offers it snack products in small, regular and family-sized packs. Recently, the company introduced the mixed-pack brand, Pic-A to cater to families and barkadas.
Marketing Mix (Four P’s)
Product
Universal Robina Corporation Branded Consumer Product focus group enables the company to provide its customers with local snacks, candies, chocolate bars, cakes, beverages, instant noodles, etc. Its snacks include consist of savory snacks such corn chips (Chippy, Mr. Chips, Taquitos, Tostillas),
natural potato (Potato Chips, V-Cut),
fabricated potato (Piattos, Roller Coaster),
extruded/pelletized (Chiz Curls),
multi-grain (Nova),
mixed snacks (Pic-A), and
granny goose (Tortillos, Kornets). As one of the leading brand in the biscuit industry, the company provides a variety of biscuit products that is well received by the youth. Such products include cookies (Presto, Cream-O, Dewberry,
crackers (Magic Flakes, Magic Creams, Magic Flavors),
wafers (Hello! Coated, Hello! Pipers, Hello! Glazed, Wafrets Sticks), and
pretzels (Choco Pretzels, Knots). They also provide customers with hard candies such Maxx, Dynamite
and X.O.,
gummies such as Jojo Gummies, lollipops such a Star Pops,
and Marshmallows like Wiggles, and the soft candy Lush. They have also penetrated the chocolate bar industry with products such as Cloud 9, Chooey, Monster Much and Nips that heavily attracts children.
The company is very much known in the beverage industry. They are known to be the first local company to provide its consumers the 3-in-1 flavored coffee mix and the first locally-manufactured ready-to-drink green tea drinks made available in PET bottles. Its line of beverage drinks include Ready-to-Drink Tea (C2, Yin Yang
Juices: Refresh Flavored Drinks, Nature's Harvest FAB),
bottled water (Hidden Spring, Nestle Pure Life),
energy drinks (Explode),
pure coffee (Great Taste Granules, Great Taste), premium
blended coffee (Blend 45),
creamer (Cream All),
Ready-to-Drink Coffee (Coffee Twist),
instant coffee mixes (Great Taste Coffee Mixes), and
chocolate mixes (Choco Lava, Captain Choco).
The company continues to respond for the growing need for cheaper and more convenient meals through the introduction of the Payless Brand. It prides as the cheapest instant noodle brand. Moreover, the company has partnered with Nissin Food Products Co Ltd and ConAgra Food Inc. in providing its customers with instant pouch noodles, and Hunt’s tomato sauce.
Place
The company is able to set its products across Luzon, Visayas and Mindanao through it wide network of retail distributers. It reaches convenience stores, local sari-sari stores, supermarkets and hypermarkets, and drug stores. With sixteen (16) production site scattered across the country, the distribution becomes faster; thus reaching more local stores.
Price
Increase in prices is kept at a minimal rate. The company tries to keep its products at low prices to gain customer loyalty. In addition to their current strategy, the company tries to produce cheaper alternatives of most commonly sought products such as the introduction of the Payless Brand in response to the economic downfall. Furthermore, 2010 figures have showed no changes in the prices of ready-to-drink or RTD tea in the market.
Promotions
The company is heavy on promoting its products through television, radio and print advertisements, event sponsorships, and free samplings. Most of the company’s advertisements on TV and radio commercials portray family and friendship themes. Its advertisement usually centers on stories that attracts the youth and family households with its subtle humor and heartwarming tactics. Moreover, it continues to sponsor business, educational and cultural events by providing them with free samples of their products. The company’s promoters travel across the country to join local festivals to further promote their current and upcoming products.
Competitive Strategies Employed
The company is currently aiming to further widen its distribution by catering to traditional convenience stores or sari-sari stores located in remote areas and unreserved provincial areas across the country. In doing so, the company will be able to reach more households, thus reaching its goal to remain in the hearts of every Filipino. Moreover, the company continues to strengthen its Research and Development (R&D) department to be able to provide consumers with innovative products based on current and growing trends to meet the ever-changing demands of the Filipinos.
IV. Identified Market Opportunity
Certain occurrences in the market boosted numerous tea manufacturers to high gear as they grabbed and utilized the different potential opportunities. Generally speaking, observations have been deduced regarding the trends that came up some three to five years ago rooting from health, social and geographical concerns – concerns regarding demanding constraints, personal wellness, and alarming heat trends that have caused discomfort and therefore, have caught the attention of the Philippine population.
In general, the immune system is vital for all people. Its marvel not only protects the human body, but also saves it from the perils of the different complications that could arise from external threats. It helps on-the-go individuals in balancing their respective hectic schedules while maintaining productivity and work efficiency.
Yet, in a highly industrialized world, it cannot be denied that these tasks and responsibilities could take on a really demanding turn leading to saturation points and even outright burn out. For instance, in a collegiate setting, finding the striking balance in order to juggle all course requirements is actually tantamount to sacrificing precious time for rest intervals, hence, equating not just to the immediate hike of stress levels, but also to extreme fatigue and exhaustion. In the labor arena, on the other hand, this truth is also prevalent –the reality of graveyard shifts and work overtimes that are deviances from human body’s capacity to work. Because people are forced to work beyond their means and limits, immunity starts to weaken and complications begin to pile up.
Indeed, due to these pressuring realities that cause stress, anxiety, and fatigue levels to spike, the body’s natural tendency to fight these diseases is attacked, thereby making people more susceptible to the very threats that the immune system promised to counter.
In support to this claim, statistical data show that certain illnesses have already risen in frequency in recent times. According to data gathered by Businesswire, the seasonal Influenza vaccination industry in the Asia-Pacific region has grown significantly and is expected to grow even further due to the increasingly alarming cases of poor immunity system related diseases. For the period of 2009-2016, there is an anticipated projection in the Philippine Influenza vaccination market alone from Php 57.3 M in 2009 to Php 283.9 M in 2016, with an amazing stated compounded annual growth rate of 25.7%.
Generally, the range of influenza vaccines vary within Php 400 to Php 900 per shot, thereby making it a quite costly buy. However, despite the high price, it’s still seen by the market as a necessary investment in taking precautionary measures, thus its potential as a highly demanded good.
Indeed, seasonal flu, cough, and cold are typical daily illnesses that threaten the general wellness of the Philippine population, yet their hike in occurrence seems to tell a substantial story that people want to be safe. People want to keep their immune systems in superb condition so as to be able to keep up with society’s demands, thus, a need for a vehicle to deliver such.
Essentially, the opportunity here is that people see the biological threats surrounding them. As the market is seen to have been becoming more mindful and aware about the importance of having a better immune system to fight against certain illnesses, then there is a logical prospect that can be grabbed – to present a product that can meet the demands for better immunity systems at fairly affordable prices and at the same time, a more convenient experience such that visiting clinics in order to get the actual shots is no longer needed.
IV. Market Opportunities
Certain occurrences in the market boosted numerous tea manufacturers to high gear as they grabbed and utilized the different potential opportunities. Generally speaking, observations have been deduced regarding the trends that came up some three to five years ago rooting from health, social and geographical concerns – concerns regarding demanding constraints, personal wellness, and alarming heat trends that have caused discomfort and therefore, have caught the attention of the Philippine population.
In general, the immune system is vital for all people. Its marvel not only protects the human body, but also saves it from the perils of the different complications that could arise from external threats. It helps on-the-go individuals in balancing their respective hectic schedules while maintaining productivity and work efficiency.
Yet, in a highly industrialized world, it cannot be denied that these tasks and responsibilities could take on a really demanding turn leading to saturation points and even outright burn out. For instance, in a collegiate setting, finding the striking balance in order to juggle all course requirements is actually tantamount to sacrificing precious time for rest intervals, hence, equating not just to the immediate hike of stress levels, but also to extreme fatigue and exhaustion. In the labor arena, on the other hand, this truth is also prevalent –the reality of graveyard shifts and work overtimes that are deviances from human body’s capacity to work. Because people are forced to work beyond their means and limits, immunity starts to weaken and complications begin to pile up.
Indeed, due to these pressuring realities that cause stress, anxiety, and fatigue levels to spike, the body’s natural tendency to fight these diseases is attacked, thereby making people more susceptible to the very threats that the immune system promised to counter.
In support to this claim, statistical data show that certain illnesses have already risen in frequency in recent times. According to data gathered by Businesswire, the seasonal Influenza vaccination industry in the Asia-Pacific region has grown significantly and is expected to grow even further due to the increasingly alarming cases of poor immunity system related diseases. For the period of 2009-2016, there is an anticipated projection in the Philippine Influenza vaccination market alone from Php 57.3 M in 2009 to Php 283.9 M in 2016, with an amazing stated compounded annual growth rate of 25.7%.
Generally, the range of influenza vaccines vary within Php 400 to Php 900 per shot, thereby making it a quite costly buy. However, despite the high price, it’s still seen by the market as a necessary investment in taking precautionary measures, thus its potential as a highly demanded good.
Indeed, seasonal flu, cough, and cold are typical daily illnesses that threaten the general wellness of the Philippine population, yet their hike in occurrence seems to tell a substantial story that people want to be safe. People want to keep their immune systems in superb condition so as to be able to keep up with society’s demands, thus, a need for a vehicle to deliver such.
Essentially, the opportunity here is that people see the biological threats surrounding them. As the market is seen to have been becoming more mindful and aware about the importance of having a better immune system to fight against certain illnesses, then there is a logical prospect that can be grabbed – to present a product that can meet the demands for better immunity systems at fairly affordable prices and at the same time, a more convenient experience such that visiting clinics in order to get the actual shots is no longer needed.
V. Proposed Target Market
A. Demographic
We conducted a survey that is universally representing the population who pose as potential buyers of our product. Fifty percent (50%) of those who participated in the survey were from the low income bracket, meaning their total monthly income is below P10,000. The remaining were from the middle income—41%; total monthly income is P10,001-P25,000—and high income—9%; total monthly income is above P25,000—brackets. The research revealed the following regarding the market and their general purchase and user habits:
Based on the gathered and analyzed information above, the group inferred that the target market of RTD tea should be the low income to middle income brackets. Clients under these segments present disposable income enough to consume such beverages.
However, it is necessary to note that the Philippines, unlike its Asian neighbors, is not a tea drinking country. Hence, there is a must to educate the Filipinos on the health benefits of tea consumption. Ideally, most of the respondents are able to acknowledge the availability of RTD tea through social media—especially the television. Thus, proper knowledge regarding this through television—with the right mix of advertising factors—will ensure the overall awareness and exposure of the public to our desired product.
One significant issue about the Philippines is that has a tropical climate. The country is generally warm and people can be expected to persistently be thirsty and thus, be in pursuit for beverage drinks. The demand for cool beverages increases significantly during the summer, while throughout the year demand remains constant. The higher income brackets are more likely to buy beverages on impulse in high volume form leading major supermarkets. On the other hand, the lower income bracket, mostly having no refrigerators at home, will be more likely to purchase smaller quantities.
B. Psychographics
The target segment of the product is the working class and and anyone who falls under having a busy lifestyle. Most of the respondents belong to the 28% that are so-called believers. These consumers have modest income and are part of the low-resource group motivated by ideals. They are conservative and predictable consumers who favor products and established brands. Their lives are centered on family, church, community, and the nation.
Followed by them are the experiencers that compose of 19% of the respondents. These consumers are the high-resource group of those who are motivated by self-expression. They are the youngest of all the segments, with a median age of 25. They have a lot of energy, which they pour into physical exercise and social activities. They are avid consumers, spending heavily on clothing, fast-food, music, and other youthful favorites, with particular emphasis on new products and services.
Eighteen percent (18%) of the respondents belong to the thinkers. These take on the high-resource group and are motivated by their ideals. Thinkers are mature, responsible, well-educated professionals and find their leisure activities center on their homes. But they are well informed about what goes on in the world and are open to new ideas and social change. They have high income but are practical consumers and rational decision makers.
Most of the respondents have answered that they are engaged in sports. Thirty percent are engaged in volleyball or badminton, while basketball and swimming have twenty-six percent responses. Only a few play baseball, frisbee, tennis, track and field/running, gymnastics, soccer, and table tennis. Moreover, only eighteen percent do not play any sport at all.
C. Behavioral
The group intends to target consumers based on their taste preference that they seek. The unique selling point of URC C2 is its wider variety of fruit flavors in relation to its competitors. Sixty-one percent of the respondents have chosen taste as a key factor in determining their purchase decision.
The behavioral segmentation will target the current consumers of the C2 line. These are the people who have enjoyed drinking the product as part of their lifestyle, may it be while having a meal, or simply when thirst takes its toll. The group intends to put a new line of C2 product that will aid in boosting their immune system while keeping them refreshed and clean. Though the consumers have brand loyalty to the parent C2 brand, they will likely be attracted to a new line that has an extra benefit with a new greater taste.
Even though the new immunity boosting tea line will be introduced by URC C2, the parent brand C2, sugar-free and Envidia will still be retained. In this way, the loyal consumers of the brand will also be encouraged to buy and eventually be part of the target market.
D. Geographic
Since the production sites are widespread throughout the country, it will not be a problem for the distribution process. Expounding more, the group will target the key cities in Metro and Mega Manila for Luzon; Cebu, Bacolod and Ilo-ilo for Viayas; and Zamboanga, Davao and Cagayan de Oro for Mindanao.
Table II. Survey Results
| | Low income | Middle Income | High Income |
| Buyers of RTD tea | 64% Buyers | 67% Buyers | 50% Buyers |
| Satisfaction of RTD tea | 73% RTD satisfies their thirst | 50% RTD satisfies their thirst | 50% Thirst |
| Awareness of kinds of RTD tea | 91% RTD Green Tea | 89% RTD Green Tea | 50% RTD Green Tea, Slimming Tea, White Tea |
| Awareness of Brands of RTD tea | 45% Nestea | 44% Nestea | 50% One and C2 |
| Awareness in the Public | 100% TV Ad | 78% TV Ad | 50% TV Ad and Word-of-mouth |
| Reasons for buying the brand | 18% Availability and convenience | 67% Taste | 50% Taste and Availability |
| Awareness of pack sizes | 36% Singles | 56% Singles | 50% Litro Bottles |
| Place bought | 64% Supermarkets | 44% Supermarkets | 50% Sari-Sari stores |
| Immunity boosting tea Appeal | 73% Strongly like | 67% Strongly Like | 80% Like |
| Packaging of Immunity boosting tea | 100% PET or Plastic Bottles | | |
| Flavor of Immunity boosting tea | 27% Lemon 32% Apple 32% Other Fruity Flavors (Strawberry, Grape, Lime, Four Seasons) | | |
| Factors That Affect Decision In RTD Tea Purchase | 73% Taste | | |
| Price for RTD Tea | 45% Php 20.00-30.00 | 67% Php 15.00-30.00 | 50% Php 25.00-30.00 |
VI. Marketing Objective
A. Overall Marketing Objective
The group’s primary objective is to expand the RTD tea line of the C2 Cool and Clean brand via a line of RTD tea that brings together the benefits of Moringa and Licorice which aim to boost the immune system of its consumers. The target market is made up of multiple segments that are classified under on-the-go individuals, in particular, students and young professionals belonging to the age group of fifteen (15) to thirty-four (34) years old, whose busy schedules hinder them from living adequately healthy lifestyles. The immunity boosting tea would be positioned as the easiest, most convenient and best tasting way to keep one’s immune system strong in order to fight the different threats to the body which might prevent him from performing at his best.
The product will be offered in six (6) different flavors: Kiwi-Strawberry, Passion Fruit, Tropical, Pineapple-Orange, Apple and Lemon which will come in three (3) pack sizes: 230 ml, 355 ml and 1L. The following pack sizes will be sold at suggested retail prices of P12.95, P19.95 and P55.95, respectively. In the first year, the company will aim to sell approximately 2,900,000 units to be able to reach around seven percent (7%) of the market. While in the next two (2) years, the group aims to seize an estimated ten percent (10%) market share in the Philippine RTD tea industry. In order to accomplish this, the following measures would be employed. First is to educate the public regarding the need for a strong immune system and how the immunity-boosting tea is going to help address that need. On the one hand, the public must be made aware of the function of the immune system, and how it affects the body’s immunity to the different bacteria and viruses present all over the environment. It is also important to include the disadvantages brought about by a weak immune system and consequently, a low immunity to such bacteria and viruses, which results to various sicknesses or ill health conditions that in turn affects the daily performance of people. On the other hand, the benefits of the immunity –boosting tea would be promoted as a means of strengthening the immune system in order to cope with daily stress and to obtain a more efficient performance in life. The natural properties of its two (2) key ingredients, Moringa and Licorice, would be the main sources of benefits such that both contain vitamins and minerals crucial to the rapid regeneration of cells and production of interferon which play important functions in protecting the body from pathogens such as viruses and bacteria, thus boosting the immune system.
The next step would be to spread brand awareness by way of advertising, sales promotions and public relations. Along with this, efforts would also be made to achieve branding excellence and be recognized by Superbrands, Philippines. These are necessary steps in order to attain a higher objective, which is to establish a niche, as an herbal immunity-boosting tea, in the RTD tea market.
Each and every objective mentioned earlier is a part of a greater package that seeks to offer superior customer value. The aim is not only to provide superior value to the customers but also to make them aware of the product’s existence, to persuade them to make purchases and finally, to establish a long term relationship with them such that benefits will flow in a two-way stream. On the one hand, the immunity-boosting tea will address customers’ need for a strong immune system. On the other, the customers will bring profit to the company.
B. Specific Objectives and Targets
Table III. Specific Targets for the next three years
| | 2012 | 2013 | 2014 | |
| Market Share | 7.9% | 9.36% | 10.8% | |
| Sales (in volume) | 38, 867, 558 | 46, 807, 141 | 55, 015, 262 | |
| Sales (in value) | P 1, 150, 479, 728.64 | P 1, 385, 491, 360.48 | P 1, 628, 451, 761.36 | |
| Profit | P 7, 523, 116.83 | P 132, 572, 758.83 | P 182, 823, 269.36 | |
VII. Overall Marketing Strategy
Overall Marketing Strategy
From the surveys conducted, a high number of respondents show an interest of purchasing the product with a seventy-nine percent (79%) response of yes, they drink RTD tea and sixty-three percent (63%) response of likely to most likely to buy C2 Immuni-tea. Favorable responses come from the younger demographic of ages 15 to 34 with busy lifestyles that need of stronger immunity to prevent them from getting sick. Our marketing strategy is to enter the market with aggressive advertising to create and capture the demand for the product and with a superior product that delivers the promised good.
Fig V. Usage Rate of C2 Cool and Clean
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