INTERNATIONAL MARKETING PLAN FOR JGB
JULIE GARRIDOJUANITA CASTILLO
INTERNATIONAL MARKETINGUNIVERSITY OF LA SABANACHA2015TABLE OF
CONTENT
4.3 STOW Analysis
4.4 Marketing Goal and Objectives4.4.1 Goals4.4.2 Objectives
4.5 Marketing strategy4.5.1 Product4.5.2 Price4.5.3 Place4.5.4
Promotion
4.6 Marketing Implementation 4.6.1 Specific marketing
activities
4.7 Evaluation and control4.7.1Formal marketing
control4.7.2Financial assessments
4.3 STOW Analysis of JGB
StrengthsImportanceRating (from 1 to 3)Score
High quality products with affordable prices0,1030,30
Well-known and stablished brand in Home country0,0110,01
High investment in R&D0,1030,30
Pharmaceutical Generic Product, without
prescription0,0920,18
Strong and diversified Portfolio0,0920,18
Economies of scale/economies of scope0,0230,06
Weaknesses
Distribution channels (to warehouses and neighborhood
stores)0,0920,18
Customer service0,1020,20
Product packaging0,0510,05
JGB is a new Brand in Peru0,0920,18
Opportunities
Market growth for the main business product0,1530,45
Strong publicity campaigns in social networks and
TV0,0530,15
Disposable income level is increasing in Peru0,0420,08
Incremental penetration and expansion of their portfolio in the
market0,0720,14
Alliance with Cencosud, and small retail chains in
Peru0,1020,20
Threats
High number of competitors and substitutes0,1030,30
Currency fluctuations0,0110,01
The strategic focus of the marketing plan will be the market
growth for the main business products, while maintaining quality
standards and affordable prices.
(Arias, 2015) (Sierra, 2014) (Repblica, 2012)
4.4 Marketing Goal and Objectives
4.4.1 Goals Grow internationally while maintaining high quality
standards. Achieving 10% growth in international sales, within 5
years. Present the products and retain consumers in the Peruvian
market.
4.4.2 Objectives
Establish the company internationally as a promoter of nutrition
and health for everyone, through high quality products and
affordable prices for consumers, achieving a 10% growth in profits
from international sales. Introducing our strongest and main
products through a strategy that can strengthen our brands. Report
expansion opportunities, taking into account market size, product
profitability and the likelihood of sales as a result of the
internationalization of the company
4.5 Marketing strategy
JGBs Tarrito Rojo market growth strategy. Our company has great
opportunities in neighbor countries, the first step we are going to
take will be through export of the star product Tarrito rojo to
Lima.
Our first target market will be consumers in the B, C and D
socioeconomical level in Peru (middle class) that look for high
quality health products at affordable prices. We also take into
consideration that 57% of Perus population belongs to the middle
class, but, according to Arellano Marketing, 72% of people feel
middle class. (Per21, 2014).
Image: (Per21, 2014)
4.5.1 PRODUCT:
Tarrito Rojo is classified as a convenience and consumer product
(is used at home) and recently as a milk modifier product, included
in the categories of nutrition and health. Tarrito Rojo is in the
end of the long tail, as it has many competitors and substitutes,
like Nesquick, Milo and Chocolisto; classified as Instant
nutritional supplement.
Reference: Wong.com.pe
Tarrito Rojo of JGB is a product that provides vitamins, energy
and nutrition for the body, this product is bought by both men and
women.
It is mostly purchased by 70% of men who play sports because it
is a multivitamin that provides the necessary energy after doing
sports. And the other 20% is purchased by housewives wishing to
provide other vitamins for their children; the remaining 10% is
consumed by single women who play sports, study or work. Tarrito
Rojo has 4 different presentations and four flavors
Tarrito Rojo Tarrito Rojo Chicos Tarrito Rojo Cero Azcar Tarrito
Rojo Tabletas
Flavors: vanilla, strawberry, chocolate, regular.
30g, 135g, 330g y 1.000g
This product in Colombia is in the maturity stage, because it
has been maintained over time and increasingly innovates to provide
its customers other options to consume a vitamin supplement; the
knowledge of this product allows JGB to enter the Peruvian market
with a strong strategy.
The market similarity between Colombia and Peru allows the
product to remain with the actual packaging, image and language;
therefore the company wont have to change the product labeling.
(JGB, 2015)
4.5.2 PRICE:
Tarrito Rojo will enter with a market price strategy. The final
customer price is based on competitive prices. This strategy can be
used because of the likelihood of the product to have a long life
cycle as stated before.
The currency equivalences are
USD $1 = COP $ 2533.63 = S/. 3.1565
Market Prices of the main competence are:
Nesquik. Doy pack 200 gr. S/.6.45 Un. Milo Doy pack 200 gr. S/.
8.99 un. Milo can 400gr S/.14.29 Un Milo can 1 kg. S/.39.00 Un
Chocolisto Doy pack 200 gr. S/.5.10 Un Chocolisto Jar 300 gr.
S/.6.99 Un
According to the gr. of each Tarrito rojo presentation prices
will vary from S/.6 to S/.30 (tarrito rojo 1 kg). Tarrito rojo 200g
S/. 9.15
(Wong, 2015)
4.5.3 PLACE:
As a convenience product most users purchase the product in the
nearest shopping centers, drugstores and in small markets or
convenient stores. We will have direct export and alliances with
Cencosud (Wong and Metro), Supermercados Peruanos (Plaza Vea) and
Hipermercados Tottus, the three main market chains in Peru.
4.5.4 PROMOTION:
Promotion strategies of the company have been focused in the
domestic market.
Since it is a new product in the Peruvian market, it will have
to go through each of the stages of adoption: awareness, interest,
evaluation, testing, adoption and repurchase. During these stages
it is important for advertising to communicate the benefits of the
product in relation to the competition, emphasizing its health and
nutrition benefits and performance. In this way it is expected to
achieve market positioning.
As promotional events will have the following options:
advertising and free samples of the product in supermarkets,
advertising on radio and television, billboards and flyers. The
budget invested in advertising will be 15% of the companys budget
for promotion in Colombia (8000 millions of pesos). (Dinero,
2015)
4.6 Marketing Implementation and activities
4.6.1 Introduce and advertise the product; enhance the
properties and qualities of the product in comparison to the
competition.
Action plans: Make sure that advertising in different media is
focused on highlighting the features and benefits of the product:
it is not harmful to health, suitable for diabetics, affordable,
nutritious, multivitamin and energizing. Billboards, TV, radio,
endorsement.
Resources: Peru advertising agency hired by the commercial
area.Time: continuous.Cost: invest 10% of sales on advertising or
different media.Monitoring: increased sales.
Design and maintain a website of the company for Peru, to
promote the initial product, and incrementally the new products,
and maintaining online services
Resources: company that provides web development services hired
by the commercial area.Time: Continuous.Costs: for the first year
$5 million pesos.Monitoring: number of webpage visits.
Presence in the main supermarkets, with promoters advertising
and offering the product to the customer.
Resources: Human Resources Company.Time: ContinuousCosts: in the
first year will be given $ 8 million pesos.Monitoring: increased
sales
Introduce products to industries and outlets by presentation of
catalogs (brochures).Resources: Advertising material provided by
advertising agency hired by the manager of the shopping area.Time:
Continuous.Costs: For the first year will be allocated $ 1.8
million pesos.Monitoring: Number of customers visited.
4.6.3 Taking advantage of the current trend to consume natural,
healthy, low-calories and nutritious products
Action Plans:
To present the brand in events of massive assistance.
Resources: Staff and advertisement from and advertisement and
Human Resources CompanyTime: depends on events programmed in the
city.Costs: For the first year will be allocated $ 17.5 million
pesos.Monitoring: Number of events attended.
4.6.4 Achieve and maintain profitability allowing coverage of
costs and expenses for the company to remain viable.
Control of the company budget by running analysis of the
finances at the end of each month.Resources: Financial areaTime:
Continuous.Cost: Payroll finance employees.Monitoring: Percentage
decrease in expenditures.
4.6.4 The concern to know the degree of customer satisfaction to
retain and increase customer loyalty and brand preference.
Identify needs and customer requirements, in terms of product
presentations, quantities, prices and uses.
Create networks for ongoing dialogue with the customer, focusing
on product quality, service, price and attitude using different
communication channels provided by the company.
Resources: Managing both sellers and business analyst.Time:
ContinuousCosts: Payroll sellers and business analyst. Expenses in
communication channels.Monitoring: Number of opportunities for
improvement, market response and increase sales.
4.7 Evaluation and control
4.7.1 Formal marketing control
The performance of the company at the corporate level will be
measured through management indicators classified as follows:
Budget execution: Efficient and effective implementation of the
budget is the index management of the organization.
INDICATORSFORMULA
IncomeIncome Statement
CostsIncome Statement
ExpensesIncome Statement
Income before TaxesIncome Statement
Net IncomeIncome Statement
Effectiveness: Measure the extent to which the objectives were
achieved in the companys activities in Peru, regardless of
resources used, are guide of progress toward the goals of an
organization.
INDICATORSFORMULA
Market share indexCompany Earnings / Earnings in the sector.
Sales growth rate (Sales in period 2 sales in period 1)/ sales
in period 1
NPL recoverySales credit portfolio / average accounts
receivable
Inventory rotationcost of goods sold / average inventory of
goods
Efficiency: measure the rate of return earned on resources.
INDICATORSFORMULA
Return on equityNet Income / Equity
Operating profit marginOperational / Sales Utility
Asset performanceNet Income / Total Assets
Return on investment(Operating Income - Taxes)/ Capital
Investment
Gross profit marginGross profit/ Sales
(Marketing, 2015)
4.7.2 Financial assessment. The Forecast of sales for the year
2016 and 2017 of Tarrito Rojo in Peru is as follows; having in mind
the total sales of the company by the year 2014 was 152.000 million
of pesos where only 5% was earned due to export to Ecuador, USA and
Panama. JGB has a wide portfolio of products where Tarrito Rojo
represents 30% of market share. A 5% increase in sales is expected
from year 1 to to year 2. While the total profit was 989 million of
pesos.
(Gmez, 2012)
JGB has a great opportunity for Tarrito Rojo and all of his
portfolio products in Latin America, taking advantage of these
could make JGB become a multinational, increasing market share and
profitability, gaining new consumers hearts and loyalty
establishing itself as a continental leader in health and care
products.
REFERENCESArias, G. (25 de 09 de 2015). JGB alista su entrada a
los mercados internacionales. Recuperado el 05 de 2015, de
Portafolio:
http://www.portafolio.co/negocios/jgb-mercados-internacionales-entrevistaDinero.
(20 de 03 de 2015). Tarrito de xito. Recuperado el 05 de 2015, de
Revista Dinero:
http://www.dinero.com/edicion-impresa/negocios/articulo/jgb-prepara-su-estrategia-expansion/206930Gmez,
C. (24 de 04 de 2012). Algunos han querido comprar la firma
colombiana JGB. Recuperado el 05 de 2015, de Portafolio:
http://www.portafolio.co/economia/algunos-han-querido-comprar-la-firma-colombiana-jgbJGB.
(2015). Tarrito Rojo Suplemento Multivitaminico. Recuperado el 05
de 2015, de JGB:
https://www.jgb.com.co/tarrito-rojo-suplemento-multivitaminico/Marketing,
W. P. (2015). Global Marketing Business Plan. Recuperado el 05 de
2015, de BPlans:
http://www.bplans.com/global_marketing_business_plan/management_summary_fc.phpPer21.
(14 de 01 de 2014). Clase media sera el 65% de la poblacin en el
bicentenario. Recuperado el 05 de 2015, de Per 21:
http://peru21.pe/economia/clase-media-seria-65-poblacion-bicentenario-2165061Repblica,
L. (26 de 12 de 2012). Tres cadenas de supermercados se disputan el
mercado peruano. Recuperado el 05 de 2015, de Peru-Retail:
http://www.peru-retail.com/noticias/tres-cadenas-de-supermercados-se-disputan-el-mercado-peruano.htmlSierra,
A. G. (03 de 11 de 2014). Cali recuper la confianza para hacer
negocios. Recuperado el 05 de 2015, de El Pas:
http://www.elpais.com.co/elpais/economia/noticias/cali-recupero-confianza-para-hacer-negociosWong.
(05 de 2015). Alimento Nutritivo Instantaneo. Recuperado el 05 de
2015, de Wong Cancosud:
https://www.wong.com.pe/FO/supermercados/index.go
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