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10 STEP Marketing Plan for Mead Johnson – Philippines (MJP)

Elaine R. Buday02 March 2010

5 Steps for Part 1 (PTM and Positioning)

1. MJP PTM are parents of infants and children

2. Who relies a lot in the food safety and the quality of the products

3. Can choose Lactum, Bonakid or Nido

4. Gap is all other brands focus on providing good quality milk formulas

5. The market size is P 40 Billion. MJP’s share is P11 Billion.

5 Steps for Part 2(Marketing Mix & Strategy)

6. Infant Formula and Children’s Nutritional Milk

7. Has 13% premium vs. leading competitor

8. Uses TV, stores/groceries, events and health campaigns

9. Is distributed nationwide10. Uses product differentiation as their

generic winning strategy

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Positioning to the Primary Target Market

Needs, Wants and ExpectationsCompetitors

Opportunities (gap)Market Size and Share

1.MJP’s primary target market (PTM) are the parents of infants & children

Demographics (25 to 45, F, social class ABC, married/single-parent)

Lifestyle (working professionals, busy, not stay at home)

Behavior (500 gms & up, at least 3x a day, daily, food safety and quality product)

I want my child to only in-take safe milk products

I am confident that my childwill grow up healthy

2. MJP’s PTM’s NWE

Parents need … To feel secure that they are only giving the best

for their children

Parents choose MJP products over other milk formulas of their competitors because of …

Awareness and credibility of the products and the company, price, brand, and recommendation by their pediatrician (esp if it’s the 1st child)

Parents expect this when they use MJP products …

Their children will grow healthy, strong, smart, immune to most common diseases and getting the right nutritional requirements they need

3a. MJP has many formidable competitors

Direct:

Indirect: breast milk, other forms of milk such as filled milk and condensed milk, and “am” (liquid when cooking rice)

Variables: marketing and promotional campaign, product availability, price, brand and product features

ABBOTT(MS = 12)

MJP products is #1 in ABC market

Price / EC Matrix

AB (Upper Class)

C (Middle Class)

D (Lower Class)

E (Extremely Low Class)

High price

Low Price

Price vs. Economic Class (EC) Matrix

NESTLE

(MS = 25)

MJP (Market Share = 27.5)

Wyett(Market Share = 30.2)

MJP’s unique positioning is shown in this competitive map

Positioning vs. Brand MatrixLactum(MJP)

Promil(Wyeth)

Nido(Nestle)

Gain Plus(Abbott)

Contains all the nutrients for the all around health requirements of the child (100% nourishment/panatag)Has no history of product recall in the milk industryPromotes IQ improvement for the kidsPromotes better health and nutrition for the kidsOffers relatively low price amongst major competitorsUses credible and famous celebrity endorsersProducts are supported by Health Care Professionals, i.e. Products are available nationwide

4. MJP has a strong position in the milk formula industry

MJP is the only milk formula company… with no product recall in the milk

formula business that uses the tagline “100% panatag” in

one of its products to assure confidence of its clients to the company

No brand has a similar position.Others focus on research and

development, low price and product availability in all channels of distribution

5a. Based on competitor data, milk formula market is P30billion

5a. Based on competitor data, milk formula market is P30billion

Year Market Size

2007 23.5 B

2008 26.05 B

2009 29.5 B

5b. Based on MJP’s data, where their share is 27%, total market size is 40 billion

Total milk formula corporate share without full cream milk

96%

5c. Consumer data indicates a size of P 50 billion

Milk formula Usage:5% of Filipinos ages 0 to 4 years old and

the Philippines is estimated to have a population size of 94 million, therefore around 4.7 million infants/toddlers where 20% belongs in the AB class = 940,000

1 child consumes 1 kg can of milk per week

940T x 4 x P300 X 52 = P50 billion

5. Concluded that milk formula market is 40 billion

1. Competitor data= P30 B

2. Company data = P 40 B

3. Usage data = P 50 B

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The Marketing Mix Strategy

Product, Price, Promo and Place

Generic Winning Strategy

6a. Milk formula category is dominated by 4 major companies

6b. Product Description

Mead Johnson’s milk formula products are Enfalac A+, Enfalac DHA, Alacta, Enfapro A+, Enfapro, Alactamil, Enfagrow A, Lactum 1+, Alactagrow, Sustagen Jr, Enfakid A+, Lactum 3+, Sustagen Kid

There are 6 sizes: 350g, 400g, 800g, 900g, 950g, and 1000g/1kg

7. Price – MJP is 13% premium priced in affordable packs

7. Price – MJP is 13.13% premium priced in affordable packs (cont.)

8a. Promo – For a P10-B company, MJP is spending P2-B on Lactum & Sustagen

End-2008 figures from AC Nielsen

8a. Promo – MJP tvc

8b. Competitor promo – Wyeth tvc

8b. Competitor promo – Nestle & Abbott tvc

Nestle

Abbott

9. MJP products is distributed nationwide, majority in Supermarkets

Infant formula by channel (source: 2008 EuroMonitor Report)

9. MJP products is distributed nationwide, majority in Supermarkets

Children’s milk by channel (source: 2008 EuroMonitor report)

10. MJP produces differentiated products

MJP’s main strategy is thru Product Differentiation, ie uses the 100% “panatag” / nourishment tagline

They need to drive competitiveness of its brands through different intensive market penetration activities (i.e. promotions)

Offers excellent, good quality and reputable premium priced products distributed nationwide

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SUMMARY

5 Steps for Part 1 (PTM and Positioning)

1. MJP PTM are the mothers of the infants and children

2. Who relies a lot in the food safety and the quality of the products

3. Can choose Lactum, Bonakid or Nido

4. Gap is all other brands focus on providing good quality milk formulas

5. The market size is P 40 Billion. MJP’s share is P11 Billion.

5 Steps for Part 2(Marketing Mix & Strategy)

6. Infant Formula and Children’s Nutritional Milk

7. Has 13% premium vs. leading competitor

8. Uses TV, stores/groceries, events and health campaigns

9. Is distributed nationwide10. Uses product differentiation as their

generic winning strategy

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10 STEP Marketing Plan for Mead Johnson – Philippines (MJP)

Elaine R. Buday02 March 2010