Ctg Marketing Plan

La Salle University
Graduate School of Business
Mr. Raymundo C. Dolor CPA,MBA,LLB

Chooks to Go Marketing Plan

Submitted by:

Janice S. Ga-a

I.

Executive Summary

Chooks to Go oven roasted chicken is the trade name under Bounty Agro Ventures
Inc. a conglomerate of the Bounty Fresh Group of Companies with more than 1,100 rotisserie outlets nationwide, is aiming to increase its sales in the province of Misamiz
Occidental by 10% this year.
The company is outsourcing its workforce in the ir Chooks to Go outlets so that the company will be hands off in any legal claims. However, they still assure that the Chooks to Go crews will have the wages and benefits they deserve . The company is also abiding the National Building Code of the Phillipines in building their Chooks to Go stores. This is to ensure the safety of the public.
The Bounty group is rapidly expanding its Chooks to Go stores nationwide . This is due to the confidence they have gain in the economy as it had achieved 7.3% economic growth last 2010 and expected to be better this year.
Denizens nowadays are more into healthy living that’s why the Bounty Group ensures that Chooks to Go provides the customers a guaranteed safe, cl ean and a high standard preparation for chicken and when it comes to technological advantage the company continuously invest in Research and Development to be able to cater the consuming public the best service and product s they deserve. The company also uses various technologies in preparing its products and high end chemicals in cleaning its equipment.
On the side of the micro-environment, it has been noted that the population of the province had increased from 91,410 to 112,650 from years 1995 to 2007 b ase on the statistical data presented by NSO on their website as of July 2011. This significantly means that the potential customers of Chooks to Go is also increasing. On the other hand base on that data given, Class A potential customers are in 20.75%, C lass B are in
18.74%, Class C potential customers are in 28.67% and the Class D are in 31.84%.
The competitors of Chooks to Go roasted chicken in the province are Sr. Pedro
Lechon Manok, Ogis Lechon Manok, Botoy’s Lechon Manok and other local roasted chicken operators. The competitions forces in the province are in moderate level.
The strength of the company is that they manufacture their own products, they operate their own broiler farms, feed mills and processing plants thus they have the sufficient supply for the increasing demand of the public.
There is a good opportunity now for the company of having a product line that would be infused with essential vitamins and nutrients because people loves to eat healthy foods, thus making chicken healthier will boosts sales for the company. However on the other hand, the company is not free from any threat of poultry diseases like Bird Flu that cause to disable the industry’s operation and making sales to rapidly decline.

The Chooks to Go roasted chicken is pri ced at P 149, 155, and 165 pesos depending on the sizes. Available sizes are Regular size, Bigtime size and Supersize which comes in three different flavors, Sweet Roast, Hot and Spicy, and Pepper Roast.
All this roasted chicken are available in all Chooks to Go rotisserie stores.
Chooks to Go will be advertise on FM radio stations here in Ozamiz City and will run for a year. Chooks to Go will also engage in Community Development activities here in the province to encourage youth to engage in sports rather than in illegal activities.
Chooks to Go will be continuously differentiated from its competitors to be the only oven roasted chicken na “ Masarap Kahit Walang Sauce”.

And because of all the efforts in marketing Chooks to Go , it will contribute a 10% increase in the company’s sales this year. Aside from that Chooks to Go will be popular not only as oven roasted chicken that is delicious even without sauce but as a brand that participated in society where it operates.

II.

Marketing Goal

Chooks to go is the only ORC that position itself to be the only roasted chicken na
“Masarap Kahit Walang sauce”. Chooks to Go that invades the country by storm last
2008 and now have more than 1,100 outlets nationwide is now aiming to increase its sales and market share in Misamis Occidental by 10% this year.

III.

Environmental Scanning

PEST Analysis

Political and Legal Environment
The rotisserie crew of chooks to go is under an agency which is the one responsible for their wages and benefits, however Bounty fresh ensures that the outlets workforce get the wages and benefits they deserve. E.g Minimum wage pe r region
Bounty Fresh also ensures that every Chooks to Go outlets abides the National
Building Code of the Philippines which is the policy of the state to safeguard life, health, property, and public welfare, consistent with the principles of environment al management and control; and to this end, make it the purpose of this Code to provide for all buildings and structured, a framework of minimum standards and requirements by guiding, regulating, and controlling their location, siting, design, quality of m aterials, construction, use, occupancy, and maintenance, including their environment, utilities, fixtures, equipment, and mechanical electrical, and other systems and installations.

Economic Factors
We can say that the economy of the Philippines now is doing well because of its achieved 7.3% economic growth last 2010, that is why the Philippines seeks to attract more foreign investment and enable the long underperforming economy to catch up with its fast-developing Asian neighbors. And this becomes a go od opportunity for Bounty
Fresh to invest more in expanding the Chooks to GO stores in the country by putting a

store in almost every city of the country. Aside from that it is no lie that Chooks to Go creates more employment having more than 1,100 outlets across the country.
Social and Cultural Environment

Filipinos were undeniably chicken lover, they crave for chicken, and Chooks to
Go answer this cravings by providing Filipino’s a delicious oven roasted chicken na “ masarap kahit walang sauce” There is also no doubt that people nowadays is more conscious with their health. A safe and clean preparation for food is a big factor that’s why Chooks to Go ensures that it provides the customer a safe, clean, guaranteed fresh, and a high standard preparation for chicken.

Technological Factor

Chooks to Go continuously invest in R and D to innovate its product, aside from roasted chicken they create value added products that are available also in the rotisserie outlet. They used various technologies t o ensure that the products quality will be maintained such as using meat thermometer and timer to ensure that the Chooks to Go chicken will be cooked in such manner that will be loved by many Filipinos. Using warmer to maintain the products hotness, using high end chemicals in cleaning the products used equipment’s.
Customers Analysis

Household Population of Misamis
Occidental
120000
100000
80000

Household Population of
Misamis Occidental

60000
40000
20000
0

1995

2000

2007

Household Population ( Based on
Highest Education Attained)
31.84%

20.75%
Class A
18.74%

Class B
Class C

28.67%

Class D

Competition Analysis

Competitors: o Sr. Pedro Lechon Manok ( Once Tasted, Always Wanted ) o Ogis Lechon Manok ( Tilawi Lang ) o Botoy’s o Other local lechon manok stores

Competitors Strengths and Weaknesses

Sr. Pedro Roasted Chicken ( Once tasted always wanted )

Strengths

Weaknesses



Traditional approach

Customer relations



Ambiance

Inconsistency of cooking



taste



restaurant



name

Ogis Lechon Manok ( Tilawi Lang )
Strengths





Weaknesses

Halal
Traditional approach restaurant name

Ambiance
Customer relations
Inconsistency of its taste

Botoy’s
Strengths



Weaknesses

Restaurant
Ambiance

Quality
Way of cooking

Other local players
Strengths



Weaknesses
Less expensive
Distance

Quality
Name

Market Share
15.46%

7.22% 12.37%
Botoy's
30.93%

34.02%

Sr. Pedro
Chooks to Go
Ogis
Other local players

Porters Five Forces Analysis

1.1 The threat of the entry of new competitors
1.2 The threat of substitute products or services
1.3 The bargaining power of customers (buyers)
1.4 The bargaining power of suppliers
1.5 The intensity of competitive rivalry

1.1 The threat of the entry of new competitors

In the roasted chicken industry, threat to the new entry is in moderate level. Roasted chicken stores doesn’t cost too much to venture, it depends on how the new entrant will organize or structure his/her store, if it will go through high level of modernization and store standards, like Chooks to Go, of course it will incur a high cost of putting up and operating expenses will surely surge, on the other hand, if it will go through just a simple roasted chicken store like most of the stores we usually see in the city, it will incur only minimal cost to put up and expenses are also minimal.

1.2 The threat of substitute products or services

We can see a lot of roasted chicken stores proliferating in the city, however, we can say that roasted chicken is not that affordable to buy, that’s why other commodity products like fish and vegetables are the best resort especially if the budget would not allow the customers to have a roasted chicken. This is very true for many families stretching their budget just to meet their ends. So instead of buying a roasted chicken which is good only for one meal or two, they go for fish and vegetables which is more cheaper and more healthy. 1.3 The bargaining power of customers (buyers)

Roasted chicken stores in Misamis Occidental sells their roasted chicken at a fixed price.
And the buying public would have to bu y this by the given price, except only in bulk orders that they could have manage to ask for discounts. Also the roasted chicken stores in Misamis Occidental are outnumbered compared to the population of the people who loves to eat roasted chicken. That is why the bargaining power of buyers of Mis. Occ. towards roasted chicken is low.

1.4 The bargaining power of suppliers

The bargaining power of suppliers in the roasted chicken industry is in moderate level.
Some of the roasted chicken operators have their own backyards, they are in backward integration, however there are still few operators who are dependent on some big players in the poultry industry, and these are the small and locally found roasted chicken stores, also backyard raisers has significantly increases their number.

1.5 The intensity of competitive rivalry

The structure of roasted chicken stores, the degree of differentiation and the low switching cost makes the intensity of competitive rivalry high, however, on the part of
Chooks to Go, the intensity of competition is in moderate level because Chooks to Go is differentiated in such many ways, like Chooks to Go is cooked in an oven, the chicken is prepared through cutting and not by chopping, and the packaging is in a class manner because it was wrapped in aluminum foil and most of all Chooks to Go is the only roasted chicken that has no sauce because it is already marinated.

Collaborators
Coca Cola Bottlers Philippines Inc.
Philippines Spring Water Resources Inc.

Company Analysis
Bounty Fresh Group of Companies
Bounty Agro Ventures, Inc., (BAVI)
Established in 1993, Bounty Fresh Group of Companies is currently the second largest broiler integrator in the Philippines, with large portfolios in Processed Meats,
Piggery and Layer Breeding and is the market leader in table eggs production. BAVI is

presently ranked among the top 200 corporations in the Philippines. Currently one of the leading and fastest growing broiler integrator in the Philippines supplying value added chicken products, fresh-chilled chicken and table eggs nationwide. To cater to the consumers nationwide, the company operates twenty branches across the country with its own hatchery, broiler farms, feed mills, processing plants and sales force to make available home-grown live broilers and fresh-chilled products to customers all the time. It has recently entered the food retail sector via company-owned rotisserie products, in
2006, Bounty Fresh Group of Companies expanded its operation to include the pig far m operation under its sister company, Hypig Genetics, Inc.

Goals:
To provide the freshest Products, but also to ensure the safety and health of the consumers. Mission:
“Full customer satisfaction" and commits to provide its customers with high quality and safe poultry products, produced through sound poultry management practices. It is manufactured using the best materials and ingredients. It employs the best processes within a safe and controlled environment, held and stored at the best -suited facilities and delivered on the right conditions at the right time.

Cultures and practices:
Flocks in our breeder farms are grown at a single age group.
Strict bio-Security is practiced, thus none can enter without going through stringent hygiene procedures. A complete change to farm uniforms is mandatory.
Hazard Analsis Critical Control Point (HACCP) and the good manufacturing Practices
(GMP) are practiced at all points of production up to delivery of the products and to its distribution point.
The National Meat Inspection Commission rates its dressing plant as "AAA" for three consecutive years (Grand Slam). Major plant operations consist of dressing wh ole chickens for sale, as fresh or frozen, cut-ups, marinated and further processing of chickens as per requirement and specification of customers.

IV.

TOWS Analysis

Threats
We can say that the poultry industry is in good health right now. However, it is no guarantee that it will be spare from any poultry diseases like Capillariasis,
Paramyxovirus-3, infectious coryza and the most famous of all the Avian Influenza or the Bird Flu virus that could definitely disable the operation in the industry. Bird
Flu or avian influenza has adversely affected at least 63 countries starting in 2003.
About 400-million poultry had been culled, leading to economic losses of over $ 20 billion to the world’s poultry sector.
Opportunities
Because of the fact that people are now more on healthy living , this would be good opportunity for Chooks to Go to create products like its Value added products (
Chicken Nuggets, Chicken Hotdog, Corned Chicken ) to be more healthy. Having a product line fortified with some of t he essential vitamins, like Iron and Vitamin A, would help boost s sales of Chooks to Go. It is your favorite chicken made healthier.
Furthermore, the Chooks to Go oven roasted chicken could also have essential health benefits by having some nutrients in its marinating process, in this way people will be more entice to buy Chooks to Go chicken not only because it is delicious even without sauce, but because it is more healthy to eat Chooks to Go chicken compared to other roasted chicken that is available i n the market.
Weakness
In the side of the food retail sector of the company, the company’s service to the consuming public in their Chooks to Go rotisserie stores are limited only to take outs, for customers cannot dine at Chooks to Go stores unlike the other lechon manok operat ors.
Strenghts
It is no question that the strength of Bounty fresh is that they manufacture their own products, thus they have the resources because the company operates its own hatchery, broiler farms , feedmills, and processing plants. And because of this most of the company’s products are priced lower than that of the competitors.

The company’s Pulilan dressing plant is rated AAA by the National Meat
Inspection Commission for four consecutive years which means that the dressing plants output could be exported to other countries, and that the company’s dressing plant have been coming out with cleanest and the best quality chicken in the country for four years already. The other company’s dressing plant is rated AA which also means of a high quality output dressing plant.
V.

Marketing Strategies

Product
The product is oven roasted chicken, which is more known as Chooks to Go, which also offers the highest quality as possible to customers. It comes with a variety of flavors and sizes. It offers Regular size roasted chicken, Bigtime size, and Supersize roasted chicken which comes in three different flavors, Sweet Roast for those who loves to eat their chicken in a little sweet taste, more likely children, Pepper and Garlic, and
Hot and Spicy for those people who loves to eat their chicken in sizzling hot and spicy.
Price
The price of Chooks to Go roasted chicken varies with their respective sizes, 149 pesos for Regular size Chooks to Go roasted chicken, 155 for the Bigtime size, and 165 for the Supersize Chooks to Go roasted chicken. When it comes to discounts, Chooks to
Go roasted chicken will be 3 pesos off for a minimum purchase of 50 heads Chooks to
Go roasted chicken, and 5 pesos off for a minimum purchase of 100 heads. Chooks to Go roasted chicken is for cash to cash bases only.
Place
Chooks to Go oven roasted chicken is available in Chooks to Go stores that is located in different strategic areas in Misamis Occidental. One Chooks to Go store in each of these following municipalities, Clarin, Aloran, and Plaridel, and soon to open at
Calamba,Misamiz Occ. and one Chooks to Store also in Tangub City. In Ozamiz city it is available in our Chooks to Go cart at G aisano Mall, Geege mall, Centrum Ozamiz,
Manolette Bakeshop, and two Chooks to Go stores located beside Susana Pharmacy, and in Maningcol Highway, Crossing OCSAT, Misamiz Occidental. Chooks to Go enters also in an exclusive third party agreement in some of the local roasted chicken operators in the municipality of Jimenez and Tudela Misamiz, Occ. in which Chooks to Go will be the one to supply in their need for raw marinated chicken.

Promotions
Chooks to Go will be advertise in radio stations here in O zamiz city, specifically in DXDD radio station (Cool radio) with the rate of 7000/month which comes in a 2 plus
1 package (3 times a day for a 30 second airplay ) which will run for a year.
Chooks to Go will also engage in Community development activiti es like holding an inter barangay basketball tournament here in the province to encourage the out of school youth to engage in sports rather than in illegal activities. This will be held every quarter with a budget allocation of P 10,000.00 and will be collaborated with other big companies that are operating in the province.
Positioning
Chooks to Go oven roasted chicken is differentiated in other local roasted chicken in such a way that the chicken is cooked through oven, the chicken is prepared throug h cutting and not by chopping, and then wrapped by aluminum foil to maintain its quality and most of all it is the only roasted chicken that caters the consuming public without sauce because the chicken is already marinated thus as its tag line goes “ Masa rap Kahit
Walang Sauce”.
VI.

Financial Projections

Assumptions:
Cost of goods sold is P 112 per unit net.
Fixed cost for 14 outlets is assume to be P 3,000,000

Bounty Agro Ventures Inc.
Ozamiz Branch
Income Statement ( Miss. Occ. Area )
For the year ended December 31,2010
Sales
Cost Of Goods Sold
Contribution Margin 28.36% less: Fixed Cost
NIBT

PHP 18,572,004
13,305,600
PHP 5,266,404
3,000,000
PHP 2,266,404

Bounty Agro Ventures Inc.
Ozamiz Branch
Income Statement ( Miss. Occ. Area )
For the year ended December 31,2011

Sales
Cost Of Goods Sold
Contribution Margin less: Fixed Cost
Advertising expense
NIBT

20,429,204.40
14,636,160
5,793,044.40
3,000,000
124,000.00
2,669,044.40

Notes:
1. Sales ( 2010 & 2011 )
9,900 heads/month x 12 months = 118,800
Average price per unit x 156.33
P 18,572,004.00 ( 2010 )
9,900 x 10% increased x 12 months = 130,680
Average price per unit x 156.33
P 20,429,204.4 ( 2011)
2. Cost of Goods Sold ( 2010 & 2011 )
9,900 heads/month x 12 motnhs = 118,800
Cost net per unit x 112.00
P 13,305,600.00 ( 2010 )
9,900 x 10% increased x 12 months = 130,680
Cost net per unit x 112.00
P 14,636,160.00 ( 2011)

3. Advertising Expense
7000/month x 12 months = 84,000.00
10,000 x 4 quarters
= 40,000.00
P 124,000.00

VII.

Conclusion

Therefore I believe that if this marketing plan will be fully implemented, sales would increase by 10% this year which will amount to P 1,852,200.40. Aside from that, Chooks to Go will be known for people not only as a oven roasted chicken that is delicious even without sauce but a brand that contribute a lot to the community where it operates. This is because of the Community Development activities that
Chooks to Go will be hosting with the collaborations of other big companies operating in the province.