10 step marketing plan - mlee - fiesta spaghetti

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10 STEP Marketing Plan for (Fiesta Spaghetti – White King)

Maureen LeeOctober 2011

http://maureentlee.blogspot.com/



This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Disclaimer




Demographic Mothers – housewives, working or

professionals who cook or cater parties for family occasions

Dominantly Class C & D but also includes Class B

Age 20 – 55 Buying Behavior – Highly Seasonal

2nd Quarter of the Year – Fiestas, Graduation December Holidays – Christmas & New Year Birthdays, Baptism, Anniversaries and other

special occasions

Step 1

Describing the Primary Target Market (PTM)




Mothers need to satisfy hunger, express love, be recognized and prepare the best food for their family and loved ones.

Mothers wants to buy affordable products to maximize the value for money and at the same time is concerned about product quality.

Mothers would go for Fiesta Spaghetti over other brands because of the brand promise “sulit i-share”, and its market availability.

Step 2

PTM’s Needs, Wants & Demandswith their Spaghetti




PTM Needs


Need food to survive

Cooking for celebrations is a need for expression of love

Mothers need to be recognized for their cooking and parties they organized

Reference: Maslow’s Hierarchy of Needs Pyramid

Mothers need to provide the best tasting food for celebrations



PTM Wants – Top 2 Priority


Affordable

High Quality Product

Worth it!

SULIT!



Direct Other Pasta Brands – Knorr’s Royal

Spaghetti; Del Monte’s Spaghetti Italiana, Ram’s Premium Spaghetti

Indirect Pancit, Palabok Popular Take Out & Delivery Noodle Dishes

(Amber’s, Buddy’s) Restaurants and Fast Food chains serving

spaghetti and other noodle dishes (Jollibee, TOSH)

Step 3

Fiesta Spaghetti’s Competitors




Step 3-A

Fiesta Spaghetti’s Position Map Price vs Market Class (2009)


2009 Market Share(Retail Value Sales)

White King Fiesta30%

Unilever - Knorr Royal28%

Reference: http://www.euromonitor.com/pasta-in-the-philippines/report



http://www.euromonitor.com/pasta-in-the-philippines/report



Step 3-B

Fiesta Spaghetti’s claims high-end quality @ low price


Benefit Positioning vs Brand Matrix



Between Customers Attempting to conquer the Class B Market Offering high end quality at affordable price

Between Competition Increased market share in 2009 after

launching Fiesta Commercial with Maricel Soriano as endorser

Continued attempt to increase market share in 2011 with Kris Aquino and Bimby as endorsers

Step 4

Closing the GAP




Step 4

Positioning Fiesta - Maker


Selling Propositions – Fiesta TV Commercial 2011

Not malabsak – Firm and Delicious (Product Quality) Sulit i-share with the kid’s friends pati sa grown ups

(Affordable) Spaghetti pa lang masarap na

youtube link: http://www.youtube.com/watch?v=yS8coj6tm38



http://www.youtube.com/watch?v=yS8coj6tm38

Investing on TV Commercials Fiesta has invested so much on TV

commercials and endorsers since 2009

Market share greatly increased in 2009 to about 29-30% surpassed the leading brand Knorr’s Royal Spaghetti

Step 4

TV Commercials work for Fiesta Spaghetti - Positioning




Step 4

Positioning Fiesta using Taglish term “i-share”


Maricel Soriano’s Endorsement“i-share ang sarap ng FIESTA”

Kris Aquino’s Endorsement“I choose FIESTA. Sulit i-share ang sarap”



Step 5-AFIESTA vs Royal – Market Share


2009 Market Share – Retail Value Sales Fiesta – 30% Royal – 28%

Reference: http://www.euromonitor.com/pasta-in-the-philippines/report

Market Share – Quantity Sold (Derived Analysis)If you have 200 Pesos, you can purchase: Fiesta = 200 / 69 = 2.90 K

Royal = 200 / 99.50 = 2.01 K





Step 5-BFIESTA’s Market Share– Company Data


Q1 2011 Market Share – Retail Value Sales Fiesta – 29%

Reference: http://www.rfmfoods.com/investor-relations/newsroom

RFM stated that White King Fiesta Spaghetti sold over 10 million packs in 2010 alone

Reference: http://showbizandstyle.inquirer.net/breakingnews/breakingnews/view/20110318-326206/Kris-Bimby-new-endorsers-of-Fiesta-Spaghetti



http://www.rfmfoods.com/investor-relations/newsroom

http://www.rfmfoods.com/investor-relations/newsroom

http://showbizandstyle.inquirer.net/breakingnews/breakingnews/view/20110318-326206/Kris-Bimby-new-endorsers-of-Fiesta-Spaghetti


Step 5-BFIESTA’s Market Share– Company Data – Derived Analysis


RFM Claims 29 % Market Share – Retail Value Sales & sold 10 million packs

(Assuming that average pack is 1 kg)

Probable sales data = 10 M packs x 69 pesos/kg = 690 Million Pesos

Company Data & Third Party Data:

Total Market = 690 M ÷ 29% = 2.38 Billion Pesos



Step 5-CFIESTA’s Market Share– Customer Data projects a size of


Purchase of Spaghetti Packs:

Projected Households in the Philippines in 2010 is 20 Million, assuming only (60%) 12 Million of these households cook spaghetti for special occasions on the average of 3 times per year, 36 million 1-kg packs are sold each year

Total Market = 36 M x 80 = 2.8 Billion Pesos80 Pesos used as the average price per kilo of spaghetti



Step 5-CProjected Market Size for Spaghetti


1. Third Party Data = 2.38 Billion Pesos

2. Company Data = 2.38 Billion Pesos

3. Customer Usage Data = 2.8 Billion Pesos



Step 6Fiesta Spaghetti Packages


Pack Sizes:

• 5 kilogram

• 1 kilogram

• 400 grams



Step 6Fiesta Spaghetti vs Competition


Direct Competition

Indirect Competition



Step 7Price Profile of Spaghetti – Oct 2011per kilogram




Step 7Fiesta Spaghetti Price vs Competion


• Royal Spaghetti is 30.50 Pesos more expensive than Fiesta Spaghetti

• Royal Spaghetti’s market share is almost equal to Fiesta Spaghetti in terms of Price

• Conclusion – Fiesta Spaghetti is the Market Leader in terms of quantity sold



Step 8Fiesta Spaghetti TV Advertisements




Step 8Fiesta Spaghetti TV Ads- Engages High Profile Celebrities




Step 8Fiesta Spaghetti Sales Promotion




Step 8Fiesta Spaghetti Event


Bimby, who turns four this April (2011), opted to celebrate his birthday during the event where he spent gift-giving time with children from Bahay ni Maria, a Bel-Air Makati-based orphanage. The orphans have long been supported by the Concepcions and are now regular beneficiaries of the Fiesta family.

Complete article: http://mb.com.ph/node/313157/bimby-yap-indemand-endor



http://mb.com.ph/node/313157/bimby-yap-indemand-endor

http://mb.com.ph/node/313157/bimby-yap-indemand-endor

Step 8Kris Aquino shares her personal experience and relate it to Fiesta Spaghetti


Aquino said that she chose to endorse brands and products that she actually believed in, adding that these products can be seen in her home because she uses them.

Aquino explained that the Fiesta spaghetti was not only firm and delicious, it was affordable as well. She said that one-kilogram packs are being sold at P69. Each pack of the spaghetti can serve up to 20 plates, making it suitable for sharing, she added.

She revealed that spaghetti was Bimby's favorite and she cooks it at least three times a week for him.

Complete article:http://showbizandstyle.inquirer.net/breakingnews/breakingnews/view/20110318-326206/Kris-Bimby-new-endorsers-of-Fiesta-Spaghetti






Step 8Competitor Promo and Actions


Del Monte offers Merienda Packs for Everyday



Step 8Competitor Promo and Actions


Knorr’s Royal Spaghetti is a household brand. Based on personal experience I have always remembered the packaging of Royal in our pantry.

Includes a logo that says “100 Years of Pasta perfection”



Step 9Place – Fiesta is available to almost all retail channels


Big Super Markets – SM, Rustan’s

Small Time Groceries – Local Groceries

Wet Market – Typical Palengke

Convenience Stores – 711

Friendly Neighborhood Sari-Sari Stores



Step 10Fiesta Spaghetti – Generic Winning Strategy


Low Cost Producer

Supply and Distribution Leverage

Differentiation



Step 10Fiesta Spaghetti – Generic Winning Strategy


• Fiesta Spaghetti’s main strategy is to dominate the market by being the low cost producer of spaghetti

• Leverage on supply and distribution by being available to all market classes (A to E)

• Projecting its product differentiation by combining affordability and quality “firm noodles”



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SUMMARY




1. Fiesta Spaghetti’s PTM is the class C & D Mothers.

2. Mothers who need to satisfy hunger, express love, be recognized and prepare the best food for their family and loved ones.

3. Can buy Ram if would prefer to save 5 pesos or buy Royal which is a more traditional choice.

Steps 1 to 3

Fiesta Spaghetti Penetrated the Market in 2009




4. The gap is primarily evident in the Class B market and competitor brands that have been long out in the market

5. The market size is 2.38 Billion Pesos with about 29-30% belongs to FIESTA.

6. It is ”Not malabsak” and sulit i-share with the kid’s friends pati sa grown ups.

Steps 4 to 6

Fiesta Spaghettiis sulit i-share




7. Fiesta Spaghetti is 30 pesos less than Royal and Del Monte Brands but 5 pesos more than RAM.

8. Investing on aggressive marketing through TV Ads, Promotions and publishes the experiences of their endorser.

9. Distributed nationwide.10. Winning strategy is being low cost and

available with high end quality of firmness.

Steps 7 to 10

FIESTA Spaghetti is low cost and always available




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10 STEP Marketing Plan for (Fiesta Spaghetti – White King)

Maureen LeeOctober 2011




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10 step marketing plan - mlee - fiesta spaghetti