I. Executive Summary.
A one-to-three-page synopsis of the plan providing highlights of the current situation, objectives, strategies, principal actions programs, and financial expectations.
II. Situation Analysis
A. Category/competitor definition
PHILIPPINE FOOD AND BEVERAGE INDUSTRY
Philippines have emerged as one of the rapidly growing food and drinks industries in the Asian region over the recent past. The country is characterized by various factors, such as its growing young affluent population, rising disposable income and rising consumer awareness regarding health and safety concerns. With these factors, the demand for health food and drinks is surging high, says our new research report, “Philippines Food and Drinks Market: Emerging Opportunities”. The country exports foods to several countries, including the US, Europe and some Asian countries. However, the ongoing financial turmoil is forcing the country to look at alternative destinations such as the Middle East and Africa. In line with this, it is striving hard to get a share of highly lucrative global halal food industry. The major players in the Philippines food and drinks industry, including San Miguel Corporation, Jollibee Foods Corporation, Pancake House, Inc., and Pepsi-Cola Products Philippines Inc. PHILIPPINE SOFT DRINK INDUSTRY
Softdrinks, also known as carbonated drinks, cola, soda or pop, is one of the most consumed beverages in the country. Prior to the introduction of bottled water, ready-to-drink teas, ready-to-drink fruit juices, and other functional drinks, it was the usual choice of Filipino consumers in many parts of the country. A pending bill in Congress (House Bill 5039) defined carbonated drinks as “aerated potable water, whether or not it contains added sugar or other flavor sweeteners, and non-alcoholic beverages which are charged under pressure with carbon dioxide gas and are sold in bottles and other air-tight containers.” Just like other beverages, softdrinks are a popular thirst quencher in the country B. Category Analysis
1. Aggregate market factors
a. Category size / Category Growth
Total household spending on non-alcoholic beverages reached P33.3 billion in 2006 based on the latest Family Income and Expenditure Survey of the National Statistics Office. The figure was higher by 2.9% per year from P30.6 billion in 2003. In inflation-adjusted terms, expenditure grew by 7.4% per annum during the period. The bulk of the spending may be attributed to softdrinks. Meanwhile, the total size of the softdrinks market in the country was estimated at 8,591 million liters in 2007, with projected growth of 7.6% in 2008 to 9,241 million liters (www.euromonitor.com)
b. Stage in the product life cycle
The maturity stage is the most profitable. While sales continue to increase into this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditures will be reduced. Competition may result in decreased market share and/or prices. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. The firm places effort into encouraging competitors' customers to switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products. During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Marketing mix decisions may include: • Product - Modifications are made and features are added in order to differentiate the product from competing...