A. The Company
Central Macaroni Inc. (CENMACO) was established in 1951. Back then, the company’s main business was manufacturing macaroni (thus the name Central Macaroni), but in 1958, the company ventured into the fruit processing business. Today the market exports finished goods such as fruit purees, fruit juices, canned peas, and canned chickpeas, under the brand name ‘Gina’. The market it mainly exports to are: North America (US), Canada, Germany, Italy, Holland, London, Brussels, and Switzerland. As for South East Asia, they export to Hong Kong, Brunei, Japan, and a very little found in Cambodia. The company is a processor from raw to finished goods. This means that they buy fresh fruits and they process it themselves. Their products are expensive and cater to the AB segment of the market.
B. Market Offering
CENMACO’s main products are fruit purees and juices of mango, calamansi, papaya, pineapple, guava, guyabano, and tropical fruit. Other than that, they also have iodized salt, green peas, and chickpeas (garban sauce). They also offer services such as toll processing, wherein they process raw materials or semi-finished goods for another company. With this, they offer two types of packaging: industrial packaging and consumer packaging. For the industrial packaging, they present their raw materials packed in bulks. This constitutes in 220 kg drums or 25 kg boxes. Consumer packs on the other hand, are packaging seen often in malls or stores. They come in 240 ml, 340 ml, and 1 L packs.
240ml| 340ml| 1L|
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2. Value Proposition
For a company who’s got their eye on the AB segment of the market, high quality products come with a price, especially since the fruit puree/juice market, with mango products in focus, is small. With this, CENMACO go for ‘Value for Money’, where customers get the best value of their money for the best product their company has to offer; either finished or raw. They leave it to the customers to perceive the difference between their product from other competitors in terms of taste, color, and quality.
II. ENVIRONMENTAL SCANNING
A. Industry Analysis
1. Industry Definition and Drivers
There are many influential factors that affect how the company is being run, first of is the packaging and labelling of the product. The company needs a design that clearly states out what they’re all about, what they’re selling. If the people do not know what products you’re selling, then what’s the point? The second important factor that influences the company is the weather. For a company that processes fruits, the weather has a pretty big effect on sales and production. The third factor to affect the company is the cost component. This includes the fuel being used and the trucking of products. Lastly, the efficiency of people also affects the company. You need to have competent people working in your company to get the job done properly and fast.
2. Industry Players
There are only a few major players in the juice/puree industry and a company such as CENMACO is a small player compared to other companies like Del Monte and Dole, despite it being internationally known. The indirect competitors of CENMACO are soft drinks, water, iced tea and powdered drinks. According to Mr. Vincent Kawsek, the owner of CENMACO, the market size for the juice industry is humongous, roughly about 15 billion, but at the end of the day, the mango business is still small. He could have someone compute the hector litters, but he says getting data would be too expensive, especially for, “a minor player in a sea”. He also says he’d rather invest his money on improving the company rather than spend money on getting the data.