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TABLE OF CONTENTS

Background Analysis
Mission
Vision
Objectives
Executive Summary
History
Nature of the Industry
Current Marketing Situation
Lambanog Making Process
Properties of the Product
Product Quality

Benefits of the Product

Major Users of the Product
Marketing Program

Situation Analysis

SWOT Analysis
Factors Affecting the Market

Marketing

Product
Manufacturing Process
Marketing Strategy
Promotion

Financial Projection
Implementation Control

BACKGROUND
ANALYSIS

MISSION
An industry unified in its
commitment to innovation
and quality resulting in the
production of world class
wines in Philippines.
Continuous improvement the
quality and uniqueness of the
product, enhancing its image
and reputation with local,
national and worldwide

VISION
The El Batangueno Polding
Special Purong Lambanog San juan
Batangas industry will double its
market share and reach measurable
sales on a national level.
To be the leading, most-trusted
and most-efficient distributor of
Lambanog creating distinctive,
measurable and innovative value
for our customers.

OBJECTIVES

Improve quality and uniqueness of El Batangueno

Polding Special Purong Lambanog San Juan Batangas.

Enhance the image and reputation of El Batangueno

Polding Special Purong Lambanog San Juan Batangas.

Expand the market share of El Batangueno Polding

Special Purong Lambanog San Juan Batangas.

Improve the profitability of the El Batangueno Polding

Special Purong Lambanog San Juan Batangas.

Maintain the rural character of the San Juan landscape

through expansion of Lambanog industry.

Executive
Summary

HISTORY
Lambanog wine, also called coconut vodka, is an
alcoholic beverage produced in the Philippines. It is a very
popular alcoholic drink among men and women in the rural
areas of the Southern Tagalog provinces, where it is widely
produced. It is widely enjoyed by the locals and festive
occasions are almost incomplete without it . It is free from
artificial chemicals because it is made purely from coconut
sap. Lambanog wine is produced in the Southern Tagalog
region particularly in the provinces of Quezon, Laguna, and
Batangas. The Quezon province produces most of the
lambanog wine because of abundance in coconut plantations
in the area.

NATURE OF THE INDUSTRY

In 1996, the Philippines, Indonesia, and India
accounted for 69.6% of the worlds coconut
production of 9.6 million metric tons. About
25.4% of the Philippines arable agricultural land
was planted with coconut in 1997 (Sarian 2010).
Since then, efforts to increase countrys
competitive share of the coconut market have
been underway, including the push to plant
more coconut trees, and to develop new coconut
products.

The Philippine coconut industry is generally

viewed as a monopoly, controlled by a very
privileged few. Small time coconut farmers
livelihoods are being threatened as an
increasingly powerful United Coconut
Planters Bank, has been buying out or
absorbing most of the market share. In
response, these farmers have become more
organized and united over the past decade
(Ravi, 2009). The lambanog industry,
although it has been around for centuries,
takes up a fairly small share of the overall
coconut industry.

CURRENT MARKETING SITUATION

In san juan, batangas,, drinking lambanog is
usually a communal thing men sit around in a
circle and tagayan will ensue. The men take turns
drinking shots from a cup placed in the middle of
the group. Usually, there is also someone singing
and playing the guitar to add to the festivities; he
takes his turn at drinking too, so the music gets
more interesting as the drinking goes on. It was
made an export product in 2001 and has
attracted foreign markets. To attract the youth
and expand its marketing possibilities, it is now
marketed and sold in different flavors such as
cherry, jack fruit, apple, orange, four seasons,
mint, etc.

LAMBANOG MAKING PROCESS

Every afternoon,
the mangangarit (the one who climb
the trees to get the sap) would
attach bamboo receptacles to the
coconut flowers on which the sap
would drip. The following morning,
the mangangarit would climb the
tree again to collect the bamboo
receptacles with the coconut sap.
The collected sap would undergo
fermentation process to
produce tuba or coconut toddy.
When tuba undergoes distillation,
lambanog will be produced.
Lambanog has alcohol content
of 80-90 proof.

PROPERTIES OF THE PRODUCT

PRODUCT QUALITY
As far as the environment is concerned, the
lambanog industry does not pose any major
threats, since it is in their best interests to
encourage more tree planting. To achieve,
quality product the business will ensure high
customer satisfaction through the successful
attainment of the product styles which will be
done by the lambanog manufacturing.
Both the product and the process do not include
any harmful chemicals; in fact, it is being
marketed as an organic product.

BENEFITS OF THE PRODUCTS

Lambanog can be one of the best drinking
beverages for socialization because the
consumption of alcohol in moderate amounts
can lead to certain psychological needs .Low
levels of alcohol can trigger stress reduction,
easy feelings of anxiety and help consumers
to reduce tension. It is usually use as part of
their Filipino celebration such as fiesta,
birthday, etc. It can also be used in baking
cakes, some baker uses lambanog in baking.
It is widely enjoyed by the locals and festive
occasions are almost incomplete without it.

MAJOR USERS OF THE PRODUCT

The major users of the product are those
who consume alcoholic drinks and those
who love to party and make lambanog as
part of their celebration. It also has good
benefits for the health because it is made
from the coconut. Coconut water is good
help for kidney and urinary bladder
problems, as you may have notice, you
urinate frequently when you drink
coconut water.

MARKETING PROGRAM
Direct selling is the most common way to
distribute the product. The processors use
their own residences as the main point of
distribution. Buyers go directly to their houses
to purchase lambanog wine. Some have
signage in front of their houses to attract more
customers. Their products are distributed
through different channels such as
wholesalers, retailers, local consumers, and
consumers from other towns and provinces.

Straight forwardly, marketing the

product to their potential consumers. It is
a way to let people know about their
product and to hold their interest long
enough for them to know how their
product can benefit them, without using
the television or radio for advertising. The
business venture will provide discount to
customers during the holiday/season to
attract more clients and have a greater
demand. Product exhibit and sampling
will be used as a part of product
promotion. A taste-test campaign will also
be conducted for product quality testing.

Situation
Analysis

Swot analysis
Strengths
Among

the strengths include a relatively high quality

of wine in terms of alcohol content, long and solid
experience in lambanog wine processing, skilled
labor in terms of tuba collection and distillation
process, a low bargaining power of suppliers in
terms of coconut farm which also contributes to the
low production costs.

It

is not seasonal
Affordable compared to other drinking beverages
Good market situation

Weaknesses

The industry suffers lack of tuba during rainy season

which makes wine production relatively unstable
during this period.

There are many competitors

Time consuming in processing the product
The perception of some that lambanog are unhealthy and
not good in taste.

Other weaknesses that stem from wine operations are

the use of traditional distillation process which may
affect the overall quality of the wine and absenteeism
among workers.
The product is also undifferentiated in terms of taste,
color, alcohol content, quality, and even packaging.

Opportunities

Opportunities Prospects for the lambanog wine

industry is good as it has been identified by
CITEM as an export potential and it enjoys
support from the government. There is also a
trend towards organically processed foods and
beverages as more people have become health as
well as environment conscious. There is also an
unmet demand in nearby towns and provinces.

It

could maximize the use of coconut

plantations in producing lambanog
It is needed occasionally

Threats
Threats As alcoholic beverage is considered a luxury, a
slowdown in economy affects the lambanog wine
industry. In addition, competition from other wine and
alcohol products is relatively high and buyers can easily
switch from one product to another.
Not all people are alcoholic drinkers.
Well-known manufacturers within the same location will
be the great competitors of the business.
The business will be common in the market, it may not
easily have good market standing and also it may
encounter difficulty in terms of sustaining demand of the
customers that may lead to its saturation point or
declining stage.

FACTORS
FACTORS AFFECTING
AFFECTING THE
THE MARKET
MARKET

Problems

Ignoring the products

It is not recognized by
the customers because
it is a simple drinking
beverage compared to
others
Negative feedback
Its physical appearance
is very simple because
it uses an ordinary
bottle.

Solution

Change the selling

strategy
The used strategy is by
giving the customers
some flyers in the
opening of the store but
if that strategy wont
work, we will be using
another strategy, and it
would be direct selling.
Improve product quality
Innovation in packaging

Competitors
The prices
are too high
compared to
our
competitors.

Lower Pricing
We will compete
in pricing of the
products, we
will make our
prices lower
than our
competitors.

Marketing

PRODUCT
Lambanog is wine made from
coconut. It is famous for its
potency that normally carries
about 80 to 90 proof variations. It
has been passed down throughout
generations of coconut plantation
farmers. The process involves
collecting the sap from the
coconut flower, similar to rubber
tree tapping. The sap is then
cooked and fermented to become
tuba, a popular coconut toddy.
The tuba is then distilled to make
lambanog.

MANUFACTURING
MANUFACTURING PROCESS
PROCESS

I.Collecting
Coconut sap is the liquid tapped from the
unopened flower (spadex) of coconut tree. The sap
when collected must be pearly white in color and
sweet in taste and has the characteristic coconut
sap smell.
II.Receiving
Coconut sap packed in carbouys (20-L capacity) is
received at the production area.
III.Transferring to Fermentation
The coconut sap is filtered and manually
transferred to the fermenting container.

IV.Fermenting
Coconut sap is allowed to ferment in large plastic
drums. Fermentation period takes about 3-4 days
to produce an alcohol content of approximately 78%.
V.Transferring and Holding
The alcoholic liquor is transferred to a holding
tank that is usually located near or beside the
distillation area. The alcoholic liquor stays in the
holding tank until distillation set-up is ready for
the next batch.

VI.Distillation
The traditional process of distillation is the batch
type pot-still process with rice hull or wood as
source of fuel. The alcoholic liquor is heated. The
initial distillate (head or bating) which contains
the undesired methanol and other components is
separated and set aside for other purposes. It has a
high proof of content (concentration: 110 proof).
The succeeding distillates that are lambanog have
lower alcohol content. However, as distillation
proceeds, the desired alcohol content of 80-90
proof must be achieved. The distiller uses an
alcohol meter (hydrometer) to check the alcohol
content. It varies from 80 to 90 proof.The
remaining liquor in the distillation vat, which is the
tail, is discarded. It is composed of high alcohol
like fusil oil that boils at higher temperature.

VII.Packaging
The product (alak) is transferred to
different sizes of bottles and container in
full capacity for delivery or storage.
VIII.Storing
To put the lambanog in a place where it
is available, where it can be kept safely.

MARKETING STRATEGIES
To promote our product Lambanog we will put a twist
to an ordinary lambanog by creating different flavors
of it such as pineapple, cherry, mango, strawberry,
blackberry, melon and even bubblegum.
Creating a variety of flavors of Lambanog is not
enough the packaging of it should also considered for
it to become more appealing. As the product package
considered as the silent salesman it speaks about
the products quality and gives impression about the
companys reputation.
For it to be known we have facebook page so for
more information just visit the page El BatanguenoPolding Lambanog.

PROMOTION

Financi
al
PROJECTION

INVESTMENT COST

PRODUCT PRICES

Implementation
Control