GROUP 3

FINAL PRESENTATION

Mother Earth

Marketing Plan

**Cocoy Amador ** Haydee Aunzo ** Harry Kuma**

**Des Manlapaz ** Jerome Paras**Jean Reyes**

Submitted to: Prof. E. Soriano

July 16, 2009

1

Meat supply and consumption in 2008 declined by 3.48%.

In 2007, backyard supply (# heads) : 72% pork, 94% beef.

Growing meat import indicate an increasing domestic demand that outpace supply, demand for quality meat.

In the first quarter of 2009 livestock industry expanded at 2.4% over the same period in 2008

MACRO ECONOMICS

Supply & Utilization

2

Supply and utilization of Livestock (metric tones)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2005 2006 2007P 2008(est)

Carabao

Goat

Beef

Pork

Pork79%

Beef10%

Goat3%

Carabao8%

Share of 2.3 million metric tones of Carcas (2008)

Philippine is a pork eating nation. Of every 10kg of meat consumed, about 8kg is pork.

The consumption rate for pork has also steadily improved from 4.3% in 2007 to 6.1% in 2008.

Supply & Utilization

3

PRICE

Price Margin between pork and beef widens at wholesale and retail point with beef becoming more expensive.

In 2009 percentage increase in price:

Pork : Retail (0%), Farm-gate (8%)

Beef: Retail (9%), Farm-gate (10%)

Price variation (Farm-gate and retail) ranges from 200% to 300%

Retail price of Pork Ham, and Beef Rump – Farmers market

4

Livestock Production in Luzon, 2007

(in metric tone live weight)

Geographic segmentation

Consumption is 37.3% of Total country

consumption

Of the 37.3%, MEPI’s share is 0.17%

5

Consumer Profile Increasing Purchasing Power (OFW Remittance, BPO's in MM & in provinces)

Prefers to shop in Supermarket/Convenience stores vs Wet Market

Celebrates by having more meat

Increasing Household Expenditures

Food regularly consumed outside home

3.4% (1988), 5.0% (2000), 5.3% (2003)

Intro to Western style fast food chains due to BPO exposure & internet

52M consumers <30 y.o.

6

Consumer Profile - cont

Busier & Fast-paced Lifestyle One-Stop Shop, merchandise +service

Easy to prepare, ready to cook/eat food

Dine Outside at full service or at speed

Drive thru's/ Take out Window

Preference for affordability & unique experienceGlobal Financial crisis forces “more value for money”

International dishes

37% of consumer expenditure ($28.3B) on food, 27% increase by 2015

Increased awareness for food quality & safety

(food-borne outbreaks, animal-human diseases,

chemical residues, dietary concerns)

7

Micro-Environment: Mother Earth Products Inc (MEPI)

• Founded by the CEO/President Atty Renato Tayag, Jr. • Original focus on cattle breeding & fattening but due to to Pinatubo

eruption, Asian Financial Crisis, it had to diversify to prime cuts & processed meat

• Now located at Dau, Pampanga • W/ “AAA” accreditation by NMIS (SSOP, GMP, HACCP) • Customers include Robinsons, Waltermart, Max, Jollibee, Makro,

Northpark Noodles & more • Products & Services:

– Choice Cuts & Processed Meats, – Tolling & Tesda Trng Center

8

MEPI SALES PERFORMANCE ('07-'09 td)

CURRENT OPERATIONS: 250+cattle/month ~ 20MT primal cuts 2000+hogs/month~ 80MT primal cuts

Sales(P) : 0.18% of 2007 Market (386M) Growth Rate: Ave +20% from '07 to '08

2009 Ave Sales: Php33M

9

SUPPLY CHAIN

CATTLES & HOGS

SLAUGHTERHOUSE

PRIME CUTS(22% beef, 48% pork) -

hyperlinked

PROCESSEDMEAT

(30% sales)

BIODIESEL MATERIALS

OFFALS

HOTEL (9%)

RESTO's/FFC (46%)

DEALERS (9%)

SUPER-MARKETS

(35%)

“Unclassified”

Top2070%

Other 30%

SINCE RAW MATERIALS ARE LIVE ANIMALS, MEPI MUSTSELL ALSO PROCESSED MEATS

10

MEPI SALES BY CUSTOMER TYPE

• → 12% - 6 New Big Names, (hotel & resto),discovered MEPI via word of mouth

• → Supermarkets – slower MEPI sales growth despite of the allocated mktg budget

• → 30% - uncategorized customers

11

S.W.O.TStrengths Weaknesses

GMP + HACCP Accredited (Slaughterhouse+ processing plant) Strategic Location (50miles fr MM)Carries Kapampangan Taste, able to customize cuts Price 33% lower than Premium (TJ) TESDA trng center on butchery 20% sales growth w/ limited mktg

Biz model is tactical (centric on daily order fulfilment) / weak PPC, 21% CU, 1 mo WIP No long term plans & executable strategies for growth Lack of integrated database to monitor progressMktg activities focused on Supermarket penetration

Opportunity Threat

Inc customers by word of mouth Inc Purchasing power Preference on “ready to eat” due to changing lifestyleGrowth of FFC's/RestoGlobal F Crisis – “more value for money”Increased awareness on Food Q&S

Import substitution (lower price) Price Fluctuation Customer high regards on branded products (TJ, CDO, Mekeni, Monterey) Global F-Crisis – hold buyingPeriodic outbreaks of food-borne illnesses,animal diseasesAggressive industry leaders (mktg strategies)

12

4P’s“ Making Everyday life a celebration”

“Can Afford ang

Saya”

“Swift Meat- Bringing Family Together”

“PAMPANGA’S BEST, Truly the Best”

.

“ Meatier, Tastier,

Delicious”

M.SHARE 67% 27% 6%

Product Refrigerated Meats: Hotdogs, Sliced Hams, Whole Hams, Bacons, Native and Specialty Line

Hotdogs: Tender Juicy

PF

Frozen Meat Products: Hotdogs, Patties, Native Delicacies, Traditional Ham, Christmas Ham, specialties, Bacon, Chinese Delicacies

Hotdogs: Affordable CDO

Swift Meats: Bacon, Frankfurter, Hotdogs, Halal Chicken dogs

Hotdogs: Mighty

MM Meaty

Process Food Products : Tocino; Longaniza; Tapa; Chorizo Macao; Embutido; Franks; Meat Loaf; Marinated Meat products

Process Food Products: Hotdog, Hamburger Patties, Langoniza, Tocino; Franks

Process Meat Products: Franks; Hotdogs; Sausage; Langoniza; Patties; Tocino/Tapa;

Hotdogs: Delicious

Place(Distribution)’V’GG

Nationwide

Retail through supermarkets, wet markets

Franchises: San Miguel Food shops, TJ Hotdog Fun Factory Booth Smokey’s.

Nationwide

Retail through supermarkets, wet markets

Distribution through provincial distributors, customized products for hotels, restaurants and food chains

Nationwide

Retail through supermarkets and wet markets

no distributor

Central Luzon, Northern Luzon, and Metro Manila

Retail through supermarkets, wet markets

Provincial Distributors

Central Luzon and Metro Manila

Retail through supermarkets

Central Luzon and Metro Manila

Retail through supermarkets

Distribution through customized products for hotels, restaurants and food chains

Comparison with competitorsProduct Line: Frozen Meat ProductsDirect Competitors

13

“ Making Everyday life a celebration”

“Can Afford ang Saya”

“Swift Meat- Bringing Family Together”

“PAMPANGA’S

BEST, Truly the Best”

.

“Meatier, Tastier,

Delicious”

Market Share 67% 27% 6%

Price To be discussed in Current Pricing

Promotion Website, TV commercials, billboards, print ads,

Website,

TV show, Billboards, Environmental Awareness campaign in school nationwide

Website, TV commercials

Billboards Print ads

Website;

Bill boards; Print ads

Provincial Distribution

Website

Bill boards

Leaflets,

Food tasting, banners

Word of mouth

Personal and direct selling

4P’s

“ Meat that you can trust”

Garcia’s Meat

“ Meatier, Tastier, Delicious Market Share 70% 6% 2%

Product Products: pork, beef and lamb cuts, Monterey Ready-to-Cook Meals, Magnolia Chicken and dairy products

Regular Cuts; Premium Cuts

Products: Pork cuts: Regular Cuts; Ground Pork; Ribs and Belly; Beef Cuts: Regular Cuts; Ground Beef; Prime Roast; Prime SteaksRegular Cuts; Premium Cuts

Product: Pork cuts: Regular Cuts; Ground Pork; Ribs and Belly; Beef Cuts: Regular Cuts; Ground Beef; Prime Roast; Prime SteaksRegular Cuts; Premium Cuts

Place(Distribution)

NationwideRetail: supermarketsFranchise Meat Shops; through customized products for hotels, restaurants and food chains

LuzonRetail: supermarketsDistribution through customized products for hotels, restaurants and food chains

Decentralize warehousing

Retail: supermarketsDirect Selling through customized products for hotels, restaurants and food chains

Price Regular Pork cuts: 185/kgRegular Beef Cuts: 230/kgPrime Steak:Beef Tenderloin: 799/kgRib Eye Steak: 450/kg

Premium Pricing Monterey

Regular Pork cuts: 151/kgRegular Beef Cuts: 225/kgPrime Steak:Beef Tenderloin: 799/kgRib Eye Steak: 450/kg

Affordable Pricing GM

Regular Pork cuts: /kgRegular Beef Cuts: /kgPrime Steak:Beef Tenderloin: /kgRib Eye Steak: /kg

Competitive Pricing

Promotion Website, TV commercials, billboards, print ads

Presence in major supermarkets Partnership and affiliations, Word of Mouth

Comparison with competitorsProduct Line: Frozen Meat ProductsDirect Competitors

15

Purefoods Mekeni

CDO

16

Garcia’s Meat Shop

17

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Company Name: MOTHER EARTH PRODUCTS INC.Brand Name: MAN-YUMMY, Mamang’s, Yo Joe!Tagline: “Heavy in the belly... Easy in the

pocket!”Value Proposition: “FOOD TREATS”

ATTRIBUTES1. Made in Pampanga 2. Safe and with high quality3. Affordable4. Customized5. Supply guaranteed

Phil Meat Market Structure

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POSITIONING

JEROME – REBRANDING (MAN-YUMMY!)

• 5 Brand Attributes & Experiences • * touch on Identity, Behavior, Performance

• APPLY THE SMART PRINCIPLE

Objectives

Short Term (1 year)

Medium Term (2 to 4 years)

Long Term (5 to 7 years)

20

2P/PRICING Current - Competitive Pricing Strategy

MEPI is using competitor’s retail or wholesale prices as their benchmark.

Garcia’s Meat Shop

Lower PriceHotdogHamHamburger PattiesPork TocinoSisig

Higher PriceBaconPork LonganizaBeef TapaPork & Beef Cuts

21

2P/PRICING Current - No Marketing Plan

MEPI has no marketing plan in place nor concerns itself on how competitors price their products. In short, a follower.

Garcia’s Meat Shop

22

2P/PRICING Current - 20% Increase in Sales

Despite absence of a marketing plan, MEPI managed to increase their sales by 20% in 2008. This is good indication that the business has huge potential to grow.

23

2P/PRICING Current Prices

MEPI’s hotdog price is the lowest at 117/kg while the leading brand Purefoods Tender Juicy hotdog is 55.6% higher. Best-seller with better taste.

24

2P/PRICING

Processed Meats MEPI

San Miguel Corp CDO

Pampanga's Best Mekeni's

Reg. Hotdogs 117/kg 182/kg 171/kg 119/kg 138/kgSweet Ham 47/250g 102/250g 67/250g 48/250g 54/200g

Hamburger Patties 62/500g 72/250g 42/225g 67/500g 76/500gBacon 130/500g 275/500g 174/400g 120/500g 100/500gPork Tocino 80/500g 104/480g 99/450g 98/450g 79/500gBeef Tapa 155/500g 156/500g 103/500g 139/480g 85/450gPork Longaniza 74/500g/12pcs 149/500g 42/250g 60/12 pcs 67/400gSisig 62/300g 127/500g - - -

Current Suggested Retail Price

Competitively low price

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2P/PRICING

Pork & Beef Cuts MEPI Monterey Mrs. Garcia Farm Fresh

Reg. Pork Cuts 185/kg 250/kg 154/kg 185/kg

Reg. Beef Cuts 230/kg 265/kg 230/kg 234/kg

Prime Steak 350/kg 405/kg 285/kg 400/kg

Beef Tenderloin 799/kg 799/kg 640/kg 750/kg

Rib Eye Steak 450/kg 450/kg 385/kg 420/kg

Current Suggested Retail Price

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2P/PRICING Proposed Action Plans & Strategies: Competitive Pricing Strategy

MEPI will launch a brand name for its product. Pushing brand awareness will have effect on sales

as people tend to look for better alternative without sacrificing quality and taste. MEPI on its 1st year up to the 3rd year should stick to its competitive pricing strategy while gaining higher market share.

Hire or appoint Sales & Marketing Manager ASAP. Whether a Sales & Marketing Manager will be hired

or appointed, conduct pricing strategy analysis of MEPI’s competitors like price variations depending upon the packaging material i.e vacuum-packed, loosely sold, ordinary packaging etc. and use the information in formulating pricing schemes MEPI’s product lines.

Perform cost analysis of MEPI’s products to determine if price re-alignment is necessary to maintain competitiveness with the leading brand.

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2P/PRICING Proposed Action Plans & Strategies on Pricing: As consumers become aware of MEPI’s low price,

high quality products, it will be a table brand that consumers will get used to.

For Pork & Beef choice cuts supplied to hotels and restaurants, these will be priced slightly lower than the leading supplier with same discount offerings on bulk orders. In this way, these companies will realized their cost-savings in doing business with MEPI while getting same quality meats from the leading brand.

On the 4th year of this marketing plan, MEPI can slowly increase its price a little lower on the price of the leader while constantly studying how the next challenger is making its move against MEPI’s price increase. MEPI by this time is categorized as a challenger.

By the end of the 5th year, MEPI will be categorized as one of the leading brands of quality processed and choice cut meats thus premium pricing will be achieved.

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Strategy #1

Mother Earth Products INC. (MEPI) needs to strengthen strategic partnership with retailers. MEPI also needs to take the option of joining the SM bandwagon. The

strategy will realize the household penetration in Metro Manila area.

MEPI’S DISTRIBUTION STRATEGIES

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Strategy #2

Establish strong presence in provincial areas through Distributorship. Target areas are Central Luzon, Northern Luzon and the Metro Manila areas for the first year. Second Year concentration will cover on Luzon provinces. Five years target is to have nationwide Distribution.

MEPI’S DISTRIBUTION STRATEGIES

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Strategy #3

Capitalize on the fast paced life and changing lifestyle of the Filipinos. Introduce a kiosk type food outlets in schools, BPO and Call Center areas that will showcase MEPI’s product line.

FOOTLONG VALUE MEALS

MEPI’S DISTRIBUTION STRATEGIES

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4P/ PROMOTION

1. Product factors – Relates principally to the way a product is bought, consumed, and perceived by the customer.

Alternative to the common brands in the market USP – Proudly made in Pampanga. Tastes just as good (if not better) yet

more affordable!

2. Market Factors – The position of the product in its life cycle. Growth Stage Sampling – most common strategy employed by its competitors

3. Consumer Factors – Marketed for household consumption or organization?

Primary target are mothers

Factors considered for the development of an optimum promotion mix:

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4P/ PROMOTION

4. Budget factors – Influences the types of promotions to be undertaken Below the line advertising

Communication Model (AIDA)

Attention --> Interest --> Desire --> Action

Attention - Below the line advertising (flyers, leaflets, discount coupons)Interest – Proudly Made in Pampanga. Tastes just as good (if not better) and more affordableDesire – Through sampling at supermarkets and selected occasions/events Action – Conveniently available (through strategic distribution channels) for customers to purchase

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PROMOTION MIXShort Term (1 year) * can be continued med-long term depending on its success

Advertising Personal Selling Promotions Public Relations

• Biz Support at selected supermarkets

• Flyering/leafleting at selected supermarkets

• Sponsor PTA (Parents Teacher Association) activities at selected schools (Free tasting).

• Participate in Pistang Kapampangan King Sinukwan

• Start internet blogging at their website. Use social networking sites such as multiply, facebook.

• Aggressively get retailers/dealers to market their products by providing marketing collaterals and offering tiered incentive scheme

• Sales meetings/presentations with retailers/dealers

• Build a high performance sales culture for Account Executives by rewarding performers

• Equip promodisers with selling and customer service skills through extensive training

• Product tasting/sampling in selected supermarkets.

• Buy 1 kilo and get a free lunch box

• Attractive Point-of-Sale displays in supermarkets (x-stand banners, wobblers, etc.)

• Join discount catalogues of selected supermarkets

• Word-of-mouth advertising (continue to build on relationships with existing clients)

• Join more organizations and trade fair shows.

• Socialize and build relationships with key contact persons/decision makers for HORECA clients.

• Send food for VJ/DJ at radio stations and be acknowledged on –air

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Medium to Long-Term (2 - 4years)

Advertising Personal Selling Promotions Public Relations

• Billboard at NLEX

•TV/Radio/Newspaper Advertisement (tri-media)

• Place ads on Yahoo! Philippines/Yehey and other often visited sites

• Create an attractive online purchasing section at MEPI’s website (possible tie-up with MyAyala.com)

• Raffle Promos (Ex. Buy Php500 worth of MEPI products and get a chance to win a trip for 2 to Boracay inclusive of Airfare)

• Host cooking demo’s in selected supermarkets and malls

• Sample gourmet style packaging of hams and sausages (ala Santi’s)

• Loyalty Card similar to Monterey’s MVP card

• Join community activities in Pampanga and other surrounding provinces (basketball league, charitable donations)

• Be featured in a newspaper and/or magazine

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PROMOTION MIX

Establishing the Budget

The Group recommends the combined use of % of sales and the objective-and-task method to establish the budget. It is imperative that stakeholders would like to make sure that the cost-benefit of each project is advantageous to the company.

Projected results of Marketing Promos The effectiveness of Marketing campaigns is projected to increase sales slowly by 15% on the first year and up to 40% on the 4th year.

Break-Even Analysis and Justification of Promotion Mix

To be detailed in the Marketing Plan

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Marketing Calendar

There should be a quarterly, monthly and weekly coverage of marketing activities. Promotions should be planned way ahead before the start of the year but provisions can be made for activities that are necessary in response to changes in market conditions/practices. Below is a sample of its Marketing Calendar for 2010.

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CRISIS MGT , ECONOMY/CSR/GREEN ADVOCACIES/ – JEROME or COCOY? • Crisis Mgt – sent by Jerome (word file) • Jerome, I suggest you define the roles & responsibilities

of each member of the CMT. Define Escalation procedure also based on gravity of the issue.

• To whom are they going to report the issue, at what time (ex: after 2 hrs) upon detection of issue. Who among the CMT is to stand as spokesperson to assess whether a closelooping w/ the concerned party is required? What is the operating philosophy among them? Drop everything & convene at the conference room or via conference call?

38

BACK UP FILES

39

ORGANIZATION & BIZ MODEL

CEO

COO CFO

HR Sales &

Mktg TRNG CTR

PRODN QC

MAINT

R&D

MEATPROC

Cashier

Acctg

Purchasing

Credit

InternalAudit

SLAUGHTERHOUSE

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DistributorshipThe Company will conduct open house for distributorship in FONTANA resort for

Metro Manila and Central and Norther Luzon and Area. Buffet lunch Show Case fresh and frozen products Presentation on lucrative projection for the product sales Giveaways of promotional items umbrella, bags etc.

What’s in store for the distributors? 10% volume discount for minimum required purchase of P200,000.00/ month Promotional support

Requirements:• Availability and qualification of distributors facilities• Submission of letter of intent, which signifies interest to become MEPI’s

distributor.• Letter of intent will be submitted to www.motherearth.com.ph or

Maunawa St, Duquit, Maqbalacat, Pampanga, Philippine 2010

For Other inquiries pls call:Tel # (6345) 892-65-43 FAX # (6345) 332-3371

Applications will undergo approval process within 7 days time frame

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Kiosk Type Food Outlets

Mother Earth Products Incorporated will come up with Kiosk type food outlets that will be strategically positioned in schools, BPO and call center areas. It will serve as extension of Mother Earth Fresh cut and processed products by offering COOKED formats which will include the rice toppings like Pares in a bowl, Tapa toppings, Longa Rice, Tocino Meal for Pampanga’s Express and ready to eat sandwiches for Kapampangan Deli.

Kiosk will be company owned as initial offering to boost the branding of the products. After a year of successful operation it will be offered as franchise.

The key features are : Customer convenience Competitive pricing Quality products

&

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Product Line-up

Product Line Up SRP

Single Serve

Liempo P35.00

Pork BBQ P25.00

BBQ Porkchop P 35.00

Rice Meals

Tapa Toppings P50.00

Longa Rice P50.00

Tocino Meal P50.00

Sisig Rice P60.00

Pares in a bowl P60.00

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Costing Franchise Investment

Franchise Fee(inclusive of VAT) =P150,000.00Equipment =P 90,000.00Griller (gas) = 40,000,00Gridle (gas) = 25,000.00Deep fryer (gas) = 3,500.00Storage Cabinets = 5,000.00Gas Tank = 1,500.00Refrigirator = 9,000.00Rice Cooker = 1,000.00Initial Stocks = 5,000.00

Total P 240,000.00

How to become Pampanga’s Express Franchisee

Submit letter of intent, which signifies interest to operate Pampanga’s Express or Kapampangan Deli Letter of intent will be submitted to www.motherearth.com.ph orMaunawa St, Duquit, Maqbalacat, Pampanga, Philippine 2010

For Other inquiries pla call:Tel # (6345) 892-65-43 FAX # (6345) 332-3371

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