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10 STEP

Marketing Plan for


Mekeni Food Product
Auren B. Galang
June 2010

5 Steps for Part 1


(PTM and Positioning)
1.

2.

3.

4.

5.

Mekenis PTM are meat product lovers (especially


hotdogs) from the B,C ,D, E Market
Who likes easy to prepare food during parties or even
meals to be served especially to children and adults
alike
With Choices that varies from highly competent
companies like Purefoods (Hormel +SMC Food Corp),
CDO, other local producers like Pampangas Best etc
Gap is focused on good pricing scheme for B,C, D to E
consumers without sacrificing taste and quality
In a Philippine population that is roughly 90 million
and a potential market of roughly 27 B Pesos.

http://www.thepigsite.com/articles/2164/philippine-pork-market-2008

5 Steps for Part 2


(Marketing Mix & Strategy)
6.

7.

8.

9.

10.

Hotdogs, tocino, Patties and


other meat products
Is 10-20 % price difference
lower than the premium
brands
Uses local tv and print ads,
radio commercial, mobile
announcers
Is distributed nationwide with
more penetration on the
provincial areas
Uses a low price approach to
win

Positioning to the
Primary Target Market
Part 1:
Steps 1 to 5

1.Mekenis primary target


market (PTM) are the working
class Moms

Demographics (18-45yo, M/F, with


children ranging from 3-12, class
B,C,D and E, usually from local
provinces)
Lifestyle (low income or working class
who choose to buy from nearby
groceries, sari-sari stores or wet
markets)
Behavior (opts to buy more in retail
rather than bundle packs, concerned

Food esp. for the young

2. My PTMs NWE
Moms both young and old, set high priorities on
feeding their young. During the formidable
years of 3-12, children are most concerned on
growing socially by having friends and
playmates, but also require nourishment for
their rapid growth.
With their limited and usually bland taste
preference, being one of their favorite and
easy to prepare meals, Hotdogs remain to be
Moms number one choice to serve during
breakfast or as other meal replacements for
their kids.

3a. Mekeni has a lot of


formidable Competitors

Direct: San Miguel Food Products, Swift


Foods, Bibbo hotdog, Pampangas Best,
other Local meat product processors
(Ghie and Rica, Ariel meat products )

Indirect: Canned Meat Products like:


Sausages, Spam, Corned Beef, etc

Variables: Price, product availability,


promotion

Mekeni vs Competitors
A

High
price

Price vs Consumer
B Bracket C
D-E

Tender Juicy, Swift Mighty Meaty

Bibbo Hotdog

Low
Price

Pampangas Best

Mekenis Picnic

Distribution and Availability of


Product

Competitors are available in all of the


markets nationwide.

4. Mekeni positions strongly


on low cost markets catering
mostly to the provincial areas
Mekenis marketing opportunity is on
increasing availability on a bigger
market
Options available in more groceries and
supermarket in the metros
Identify more distributing channels on
provinces
More promotional ads both on print and
commercial

5a. Based on DTI data, the


Meat Preparation industry
amounts to about P 32.4 B
The Philippine Processed Food Industry
Meat preparations
In 2000, household spending on canned and uncanned meat
preparations amounted to P32.4 billion (NSO-FIES). Uncanned
meat (longanisa, tocino, chorizo, hotdog, tapa, etc.) accounted for
about 70% of this amount, with the rest accounted for by canned
meats (corned beef, luncheon meat, meat loaf, Vienna sausage,
etc.).
The meat processing industry is expected to benefit from
increased consumer spending and the expansion of the fast-food
industry. San Miguel Purefoods Corp. is the top meat processor in
the country accounting for more than half of the processed meat
market. Swift Foods, Inc. is a far second with around 30%. Other
players are Pacific Meat Company Inc., Virginia Foods, etc. These
players cater mainly to the household sector and, to a lesser
extent, the institutional markets.
http://itdibiz.com/ecatalog/index.php?
option=com_content&task=view&id=85&Itemid=128&limit=1&limitstart=1

5b. Current Market Share on


the Hotdog Industry

Pure Foods (SMC), which controls 66 % of the hot dog


market and 20% of the canned goods sector, said its
net income grew sixfold to P872 million from P143
million, and after revenues went up 2 percent to P18.2
billion from P17.8 billion
Swift Foods Inc holds 22 %the market share of
processed meats.
More or less about 10-12 % is covered by other local
players like, CDO (Bibbo Hotdog) Pampangas Best
( first in the market on Local production ) and Mekeni
Food Corp both of which are breaking through at a
national coverage

10http://www.manilastandardtoday.com/insideNews.htm?f=2010/may/15/news5.isx&d=2010/may/15

5c. Consumer data indicates a


market size consumption of
about P 98 Billion worth
Each Filipino consumes an average of seven kilos of
hotdogs, corned beef and other processed meat
products annually, according to a study by the
Philippine Association of Meat Processors of the
Philippines, Inc. (PAMPI).CDO is a member of PAMPI

85 M X 7 kg X P165 ( Tender Juicy retail Price


/kg)
Total Sales Projection of : P 98,175,000,000
Legend:
0-14 35 % of Population
15- 64 60 % of population
http://en.wikipedia.org/wiki/Demographics_of_the_Philip
http://www.philstar.com/Article.aspx?articleid=479791
pines

5. Concluded that the Total Potential


Market of processed food business is
approximately P 27 B revenue per
annum
1.

Competitor data= P 18 B (SMC)

2.

Company data = P 800 Million

3.

Usage data = P 98 B

http://sanmiguelpurefoods.com/www/SiteFiles/File/SMPF%20AR09.pdf
https://news.reportlinker.com/n01188424/Mekeni-aims-for-higher-sales.html

The Marketing Mix Strategy


Part 2:
Steps 6 to 10

16

6a. Meat Product Processing


Industry remains to be one of the
biggest industry in the country

6b. Mekeni Meat Products caters to the similar line of


business with concentration on the provinces. Known
to be a AAA and ISO accredited company.

Vacuum Sealed
Packaging
Variety of Processed
Meat Products
Low priced
Available in different
sizes and
variants( regular,
jumbo, cheese dog,
chicken)
Different package
size: 1 kg, 2.5kg
bundle pack, retail
disposal, 500kg
AAA marking

7. Price War

145.00/kg

165.00/k
g

137.00/kg

8a. Promotional Activities


Mobile
Announcements
Radio and TV Ads
Jingles
Free Food Taste in
Supermarkets
Direct Selling
Dealership
Event Sponsorship
( Concerts, Open
Houses, Showrooms )
http://aurengalang.blogspot.com/2010/06/my-mekeni-picnic-ads.html

8b. Competitors
promotions
t
c
u
rod
P
hy
s!
c
n
t
a
a
g
C
Slo

Ce le
End b r it y
orse
rs!

SPO C SR
N S and
OR
SH
I PS

Ev en t s
!
Events
!
Events

Print Ads and Commercials!


http://aurengalang.blogspot.com/2010/06/puref00ds-tender-jucyh0td0gs.html

Other Brands

http://aurengalang.blogspot.com/2010/06/funny-hotdog-commercial.html

9. Place of Distribution

Supermarkets, sari-sari stores


Wet markets
Widely distributed in REGION 3 and
nearby provinces
Has Started to export products on
major cities in US, Canada and Parts
of Middle East
Method of delivery: dealership, Direct
Selling,Wet and Dry Markets

9. Mekeni is distributed Nationwide


via dealership, distribution to local
markets , and groceries

Supermarkets, sari-sari stores,


convenience outlets, drugstores,
market stalls
Nationwide
Pick-up by customers
Cash and Consignments
Dealership

10. What is the generic


winning strategy?

Low Cost Producer


Supply and Distribution Leverage
Differentiation
Niche

SUMMARY
Mekenis Marketing Strategy

26

5 Steps for Part 1


(PTM and Positioning)
1.

2.

3.

4.

5.

Mekenis PTM are meat product lovers (especially


hotdogs) from the B,C ,D, E Market
Who likes easy to prepare food during parties or even
meals to be served especially to children and adults
alike
With Choices that varies from highly competent
companies like Purefoods (Hormel +SMC Food Corp),
CDO, other local producers like Pampangas Best etc
Gap is focused on good pricing scheme for B,C, D to E
consumers without sacrificing taste and quality
In a Philippine population that is roughly 90 million
and a potential market of roughly 27 B Pesos.

http://www.thepigsite.com/articles/2164/philippine-pork-market-2008

5 Steps for Part 2


(Marketing Mix & Strategy)
6.

7.

8.

9.

10.

Hotdogs, tocino, Patties and


other meat products
Is 10-20 % price difference
lower than the premium
brands
Uses local tv and print ads,
radio commercial, mobile
announcers
Is distributed nationwide with
more penetration on the
provincial areas
Uses a low price approach to
win

10 STEP

Marketing Plan for


Mekeni Food Product
Auren B. Galang
June 2010

29

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