MERALCO

The Manila Electric Company, or Meralco, is the Philippines' largest distributor of

electrical power. The company holds the power distribution franchise for some 22 cities
and 89 municipalities, including the capital city of Manila, as well as for the cities of San
Juan, Las Piñas, Quezon, Malabon, Makati, Caloocan, Pasay, Mandaluyong, Paranaque,
and Navotas. Meralco's 25-year franchise for these markets, awarded in 2003, gives the
company control of the energy distribution services for an area of more than 9.3 thousand
square kilometers and a population of more than 19.7 million--one-fourth of the Philippines'
total population. The company boasts a coverage rate of more than 97 percent, the highest
in the country. Each year, Meralco sells more than 23 million megawatt-hours (MWH), with
residential and commercial sales each contributing roughly 35 percent, and industrial
sales adding 30 percent. Formerly a power producer, Meralco purchases its power
requirements primarily from government-owned National Power Corporation; since the
beginning of the 2000s, however, the company has begun to purchase electricity from a
number of newly established independent power producers, helping to lower its prices.
Meralco also has started to diversify its operations in response to the deregulation of the
Philippines power industry by extending into power generation, industrial construction and
engineering, and other areas, including real estate development, e-commerce, and
consultancy services. Meralco is led by Chairman and CEO Manuel M. Lopez, whose
family, through direct and indirect holdings, retains control of some 25 percent of the
company. The Lopez family, one of the country's most prominent, also controls
conglomerate Benpres Holdings and other businesses.

Chronology
 Key Dates:
 1892: La Electricista is founded.
 1903: Charles M. Swift is awarded a franchise to build the Manila electric tramway,
founding the Manila Electric Railroad and Light Company (Meralco).
 1904: Meralco acquires La Electricista.
 1919: Meralco is renamed Manila Electric Company as electricity generation and
distribution becomes the main business area.
 1925: Associated Gas & Electric Co. (AGECO) of the United States acquires Meralco.
 1930: Meralco inaugurates Botocan Hydro Station.
 1948: The company sells off its bus operations, exiting the transportation market.
 1950: The company begins a five-year, P 45 million investment program to restore and
expand capacity.
 1962: Eugenio Lopez, Sr., leads the Philippino buyout of Meralco.
 1972: Meralco and other Lopez family businesses are taken away from Lopez after
Ferdinand Marco declares martial law.
 1979: Government-owned Napocor is granted a power generation monopoly, taking over
Meralco's power generation operations.
 1986: The revolution that topples Marco puts into motion the restoration of the Lopez
family businesses, including Meralco.
 1990: Meralco goes public on the Manila stock exchange.
  2000: Meralco forms e-Meralco Ventures to create and invest in Internet and high-
technology businesses.
 2003: Meralco is granted a new 25-year franchise for the Manila electrical power
distribution market.

Additional Details
 Public Company
 Incorporated: 1903 as Manila Electric Railroad and Light Company
 Employees: 5,969
 Sales: P 121 billion ($2.3 billion) (2002)
 Stock Exchanges: Philippine
 Ticker Symbol: MER
 NAIC: 221122 Electric Power Distribution

Read more: https://www.referenceforbusiness.com/history2/63/Manila-Electric-

Company-Meralco.html#ixzz6EvdTDBZn

MARKETING OBJECTIVE

 To remain as the World-Class company that provides good quality service and best value of
energy in the country.

MARKETING STRATEGY

 To utilize above the line advertising (TV, RADIO, PRINT) and below the line (EVENTS,
INTERNET, OOH,)

ADVERTISING OBJECTIVE

 To strengthen the trust and satisfaction among our target market.

ADVERTISING STRATEGY

 To show that Meralco is a provider of good quality service and best value of energy in the
country for over 11 decades.

STRENGTHS
 Country’s Biggest Power Distributor
 Serving Filipino people since 1903
 Trusted by Millions of Filipinos (Service Provider of Choice)
WEAKNESS
 Extra and Unwanted charges

OPPORTUNITIES
 Innovation of technology

THREATS
 Uncontrollable numbers of power pilferers
 Increasing numbers of solar panels users
 Emerging Competitors