MARKETING PLAN

PRINCIPLES OF MARKETING
GROUP 1

Barrida, Rofa Joy

Candelon, Chariza
Icotanim, Joel Ryant
Nicolas, Kimberly
Perucho, Mia
Ragos, Hannah Mae
Sedano, Marian
Sucgang, Ayanna
Tabernero, Kien Jones
 I.
Executive Summary

San Miguel Corporation engages in the manufacture and sale of beverage, food,
and packaging products. It operates through the following segments such as
Beverage, Food, Packaging, Energy, Fuel and Oil, and Infrastructure.

The Beverage segment produces and markets alcoholic and non-alcoholic

beverages. The Food segment includes feeds production, poultry and livestock
farming, processing and selling of poultry and meat products, processing and
marketing of value-added refrigerated processed meats and canned meat
products, manufacturing and marketing of flour, importation and marketing of
coffee and coffee-related products, and grain terminal handling.

The Packaging segment comprises production and marketing of packaging

products such as glass containers, glass molds, and polyethylene terephthalate
bottles. The Energy segment sells, retail, and distributes power, through power
supply agreements, retail supply agreements, concession agreement, and other
power related service agreements. The Fuel and Oil segment includes refining
and marketing of petroleum products. The Infrastructure segment involves in the
construction and development of various infrastructure projects such as airports,
roads, highways, toll roads, freeways, skyways, flyovers, viaducts, interchanges,
and mass rail transit system.

The company was founded in 1890 and is headquartered in Mandaluyong,

Philippines.
Through strategic partnerships forged with major international companies, they
have.San Miguel's goal is to help people enjoy and make progress in the
eir lives through the many products and services that our company offers. We
want to give every customer and consumer we touch access to the best we can
offer—whether in terms of quality, or affordability or choice. Invest in and develop
businesses with market leading positions. San Miguel intends to further enhance
our market position in the Philippines by leveraging the company's financial
resources and experience to allow it to continue to introduce new products and
services.
 II.
External Analysis

1. Industry Definition

An industry is a sector that produces goods and services within an economy. It is

the whole of all economic activities by companies, people, and organizations
involved in the production of goods and services for a particular field. Industries
are usually categorized by the goods and services they produce including food
and beverages industry.

The food and beverages industry is all companies involved in processing raw
materials, packaging and distributing them. This includes fresh prepared foods as
well as packaged foods, and alcoholic and nonalcoholic beverages. This industry
is driven by consumer's demand for more nutritious food and better packaging.
The growth of the food and beverages industry is propelled mainly by developing
countries such as India, China, and Brazil, as the economies of these nations
improve and more people are lifted into the middle class.

The food and beverages industry providing businesses deliver food and
beverages to their customers at a particular location such as hotel, restaurant, or
at a customer's intended premises. Any product meant for human consumption,
aside from pharmaceuticals, passes through this industry.

edge.pse.com.ph › companyinformation › form

2. Industry Segmentation

The food and beverage industry is divided into two major segments. Those two
segments are production and distribution of edible goods.

Production includes the processing of meats and cheeses and the creating of
soft drinks, alcoholic beverages, packaged foods, and other modified foods. The
production segment of this industry excludes foods that were directly produced
via farming and other forms of agriculture, as those are encompassed by the
definition of agriculture industry.

Distribution involves transporting the finished food product into the hands of
consumers. The industry is much more focused on technology and mechanical
manipulation of raw foods to create more value-added food products. Distribution
includes companies that ship food to retail outlets, restaurants, or directly to
consumers.
www.sanmiguel.com.ph › page › strategy

3. Industry Size and Growth

MANILA, Philippines — Conglomerate San Miguel Corp. (SMC) saw an 18-

percent drop in first quarter net profit to P12.8 billion as volatile global oil prices,
higher oil taxes, and higher cost of raw materials gnawed on its oil and food
businesses. Three-month consolidated revenues, however, grew by 7 percent
year-on-year to P250.9 billion, driven by strong volumes across most of its major
businesses. The P12.8 billion net profit included earnings attributable to minority
interest.

For its food business, the government’s lifting of special safeguard duties against
import surges led to an industry-wide oversupply and a significant decline in
poultry prices. The rising cost of major raw materials – wheat, soybean meal,
corn, and cassava – was also a big factor.

https://webcache.googleusercontent.com/search?
q=cache:SLfc_4DjOl8J:https://www.sanmiguel.com.ph/article/san-miguel-sets-
sights-on-higher-growth-from-new-businesses+&cd=2&hl=en&ct=clnk&gl=ph

4. Seasonality

San Miguel Corporation posted strong results for the first nine months of the
year, buoyed by significant contributions from its fuel and power businesses as
well as steady growth in its traditional food and beverage businesses.

Miguel’s September-year-to-date consolidated sales revenue reached P393.4

billion, a 143% jump from last year’s level. Consolidated operating income
amounted to P42.0 billion, a 112% improvement. Recurring net income rose 41%
to P11.6 billion with reported net income of P11.9 billion.

Petron Corporation posted revenues of P202 billion, 19% higher than in the same
period last year. This was due largely to an increase in exports and sales of
higher-margin petrochemicals, which grew by 17% in volume. Income from
operations reached P13.1 billion, up 47%, while net income reached P7.6 billion,
up 42%.

San Miguel’s core businesses also posted significant gains. San Miguel Brewery
Inc.’s (SMBI) September-year-to-date revenue rose 7% to P52.1 billion as
volume sales reached 165.8 million cases, a 3% improvement. Operating income
rose 9% to P14.7 billion, owing to higher volumes, managed fixed costs, and big
improvements in Beer international’s operations.
The San Miguel Food Group meanwhile posted double-digit net revenue sales
growth of 11% to P64.3 billion, brought about by better volumes and higher
average selling prices. Operating income was at P4.3 billion, 2% higher than
from the previous year.

San Miguel Yamamura Packaging, on the other hand, reported consolidated

sales revenue of P17.7 billion for the first nine months, up 4% from the previous
year. Operating income grew 8% to P1.6 billion.

Meanwhile, soft demand for liquor products continued to weigh down Ginebra
San Miguel, which reported net revenue sales of P11.5 billion, down 31% from
the previous year.

SMC chairman and chief executive officer Eduardo M. Cojuangco Jr. said that
the company was also able to make significant strides in its diversification
strategy. In August, SMC signed a sale and purchase agreement to acquire
Exxon Mobil’s downstream business in Malaysia, which includes a 65% stake in
Esso Malaysia Berhad, 100% of ExxonMobil Borneo Sdn Bhd, and ExxonMobil
Malaysia SDN Bhd.

Preparations for the expansion of its Boracay Airport in Caticlan, Malay, Aklan,
are also underway. The plan includes the extension of the runway, construction
of a new and bigger terminal, and improvement of navigational aids. Construction
of Phase 1 of the Tarlac-Pangasinan La Union Expressway (TPLEx) from Tarlac
to Gerona is on track for completion and operation by the first quarter of 2012.
The MRT-7 project, meanwhile, is under review by the relevant government
agencies in preparation for a financial close.

https://www.sanmiguel.com.ph/files/reports/SMC_17A_04.16_.2018_(A)_.pdf

5. Stage in the Product Life Cycle

The San Miguel beer product is in growth stage since 1890 and still a market
leader at present. The San Miguel food and beverage Inc. continue to expand
inside and outside of the country, products are also exported over 60 markets
around the world. Many of their products are popular and widely accepted in the
market. The characteristics of growth stage in the industry of food and beverage
is that the sales volume increase as the product increase in popularity. The
public awareness grows through word of mouth and promotion. Promotional
activities created brand image in the industry. Profits are generated as sales
revenues increase faster than costs creating profit for the company. The product
become more popular in the market and its gaining acceptance among the
consumers. In this stage the competition is present were it leads to decreased in
price of the product. The marketing in this stage increase the market share of the
product.

https://www.cram.com/essay/The-Stages-Of-A-Corporation-s-Life/PKLZ66AZ7BWW

6. Environmental Scan

A. Political-legal, economic, sociocultural, technological

Political-legal Forces- Although Foreign beers are popular with in the country,
the Thai government seek to shelter its domestics breweries through the
imposition of import duties, in addition, all imported beers must bear an imported
stickers on their bottle caps.

Economic forces - Asia has an emerging economy. Asia is widely known

provide its cheap labor. When China and Taiwan were admitted into the WTO in
2002. Beer could now be completed and expected to the two countries. The
South Korea mostly brewed from rice. Only the Hites’s Max Prime brand contains
100% barley malt.

Sociocultural Forces - The similar of the culture around Asia greatly affect San
Miguel Corporation. SMC was the first Filipino Company that publish an
Environmental update in 1996,which was received by local business Community
and Stockholders. The Uniqueness of SMC environment program is it deals
focus on both the external and internal environment. The Corporation not only
takes care the natural environment but also of its people.

Technological Forces - The rapid technological advancement will affect the San
Miguel and also their prices will also be affected.

https://studymoose.com/san-miguel-corporation-case-analysis-essay

B. SWOT Analysis and Industry Analysis

STRENGTH: It is known a leader in the beer business. It is already Globally &

Internationally known. It is large group of company. All things are being detailed.
The company is diverse into not-allied business. The company is strict with the
quality of its product. The company implement strategic planning.

WEAKNESS: The company has large market sale. The company suffered from
credit rating downfall. Dynamic market environment. Losing its International
assets. Their planning process is too long. Competition is very tough. There are
lots group of people to be involved.

OPPORTUNITIES: New ventures for company. The company can merge into
non-allied business. Successful diversion. The company can engage into more
profit oriented business. Asian beer market was similar to the Philippines beer
market.

THREATS: Competitors wrong evaluation Asia brewery is selling cheaper beer.

Large loss of money due to credit rating downfall.

COMPETITOR – SMC is the leader in the beer industry in the Philippines, its
main rival is ASIA BREWERY, but the competition is low.

THREAT OF NEW ENTRANTS – The beer industry in the Philippines is almost

monopoly by San Miguel Corporation.

THREAT OF SUBSTITUTE PRODUCTS – With Local and Multinational

Company offering products and campaigning for follow lifestyle to Consumers.
They can chat with each other during drink the beer and something like peanuts
pork, & chicken.

BARGAINING POWER OF SUPPLIERS – The Suppliers of the company hold a

major role. Without it presence, the company could not produce its product and
basically, could not offer anything to customer. The suppliers of Miguel to each
country are being standardized, thus, it could not purchase it locally unless it has
been approved & has passed the company’s standard.

BARGAINING POWER OF BUYERS – San Miguel has a significantly high

bargaining power to its customers due to the monopoly in the Philippines. Now in
the modern life, there is heavy pressure from life and work. As a result, the role
of the San Miguel beer generally provides one way to slow the pressure.

https://studymoose.com/san-miguel-corporation-case-analysis-essay

7. Customer/Consumer Analysis

CUSTOMER RELATIONS, PRODUCTIVITY AND QUALITY

We have an updated Privacy Statement

Quality Management is focused on continuous improvement and enhanced

customer relations. The culture of quality has permeated the San Miguel
organization for more than four decades now. Total Quality Management (TQM)
is a business philosophy related to an organization’s management system that
leads to a stronger competitive position, increased productivity and improved
customer satisfaction.

TQM started in San Miguel in the ‘60s with emphasis on productivity

improvement. Two decades later, it evolved to focus on product quality and
people involvement. This emphasized the need for a quality mindset for all
employees and for them to be involved in ensuring high-quality products and
services that delight and secure the loyalty of our customers. From the ‘90s up to
the present, we have adopted TQM as a management system, underscoring the
linkages of the various aspects of doing business, like leadership, planning,
process and information management, human resources and customer focus to
deliver the desired business results.

At present, the quest for continuous improvement continues as SMC remains

committed to sustain business excellence and maintain its tradition as the “home
of quality products and people”.

Customer Care Center

By setting up this Center, SMC re-affirms its responsibility to its customers.

Advancements in information technology makes it possible for the Corporation to
establish a more personal communication link with its customers. The integrated
SMC Customer Care Center provides alternative channels for easy access and
fast response to varying types of customer needs and requests. The Center
supports SMC’s businesses in strengthening customer relations, and indirectly
market share as well. It is manned by a professional staff using superior
technology and employing innovative solutions to ensure customer satisfaction
and capture product loyalty. Walk-in customers who may prefer face-to-face
interaction feel welcome amidst the Center’s warm atmosphere.

The Center’s call handling services take care of both inbound and outbound
calls, providing information on the quality, pricing, distribution and availability of a
product or service, while operating as a call center. It also handles order taking,
telemarketing, sales campaign, promotion of new products, and customer
satisfaction surveys. Electronic customer linkages come through e-mail, faxes
and SMS (short message services).

The Center’s integrated setup makes it easy for SMC’s operating divisions to link
up with it for their customer and product concerns.
CORPORATE

HEAD OFFICESAN MIGUEL CORPORATION

40 San Miguel Avenue, Mandaluyong City

1550 Metro Manila, Philippines

P.O. Box 271 Manila Central Post Office

Telephone: (+632) 8-632-3000

SAN MIGUEL CUSTOMER

CARE HOTLINETelephone: (+632) 8-632-2000

Fax: (+632) 8-632-3299 routing code 2005

Toll Free 1-800-1888-7621

customercare@sanmiguel.com.ph

SHAREHOLDER SERVICES

AND ASSISTANCESMC STOCK TRANSFER SERVICE CORPORATION

40 San Miguel Avenue, Mandaluyong City

1550 Metro Manila, Philippines

P.O. Box 271 Manila Central Post Office

Telephone: (+632) 8-632-3000

smc_stsc@sanmiguel.com.ph

INVESTOR

RELATIONSREYNABETH D. DE GUZMAN
INVESTOR RELATIONS HEAD

SAN MIGUEL CORPORATION

Telephone: (+632) 8-632-3752

Fax: (+632) 8-632-3313/3749

SMCInvestorRelations@sanmiguel.com.ph

DATA PRIVACY AND SECURITY OFFICETelephone: (+632) 8-632-3007 Email:

dpo@sanmiguel.com.ph

https://www.sanmiguel.com.ph/page/customer-relations-productivity-and-quality

8. Key Success Factors

San Miguel’s goal is to help people enjoy and make progress in their lives
through the many products and services that our company offers. We want to
give every customer and consumer we touch access to the best we can offer—
whether in terms of quality, or affordability or choice.

Our strategy for achieving these goals has five major elements which are
common to both our traditional and new businesses:

Enhance value of our established businesses.

We aim to enhance the value of our established businesses, ever striving to

achieve even greater efficiencies and operational excellence. We will strengthen
our brands by improving product visibility and targeting areas where there is
room for growth in market share.

Continue to diversify into industries that underpin the development and growth of
the Philippine economy.

In addition to organic growth, we continue to seek strategic acquisition and

greenfield opportunities, positioning our businesses in a way to best contribute to
our country’s economic growth and industrial development.

Identify and pursue synergies across businesses through vertical integration,

platform matching and channel management.

We will create an even broader distribution network for our products and expand
our customer base by identifying synergies across our various businesses. In
addition, we are pursuing plans to integrate our production and distribution
facilities for its both our established and newly acquired businesses to generate
additional cost savings and efficiencies.

Invest in and develop businesses with market leading positions.

San Miguel intends to further enhance our market position in the Philippines by
leveraging the company’s financial resources and experience to allow it to
continue to introduce new products and services. Potential investments to
develop existing businesses include building additional service and micro-filling
stations, constructing new power plants, expanding our power generation
portfolio and expanding food distribution networks. We believe our strong
domestic market position provides an effective platform to develop markets for an
expanding product portfolio. And we will continue to invest in and develop
businesses that have the potential to gain leading positions in their respective
markets and industries. Adopt world-leading practices and joint development of
businesses.

We will develop strategic partnerships with global industry leaders, including Kirin
in the beverages business and Nihon Yamamura Glass in our packaging
business. These partnerships provide marketing and expansion opportunities,
and potentially provide liquidity and opportunities for SMC to divest minority
stakes in its businesses as other opportunities arise.

https://www.sanmiguel.com.ph/page/strategy
 III.
Internal Analysis

1. Company Background

a. History

History of San Miguel Corporation

Best known for its internationally distributed beer, San Miguel Corporation can
only be described in superlatives. It is Southeast Asia's oldest and largest
brewer. With nearly 33,000 employees, the company also ranks among the
Philippines' largest, most consistently profitable, and most admired
manufacturers. San Miguel's flagship beer utterly dominates both the Filipino and
Hong Kong markets, with 90 percent and 60 percent respective shares. A 1988
brief in The Economist noted that Filipinos order "beer" at bars and restaurants,
knowing that they'll receive a San Miguel. But San Miguel didn't make it to the top
of the regional heap on good beer alone. It also makes agricultural feeds,
processed and fresh meats, ready-to-eat foods, packaging, and non-alcoholic
beverages. By the early 1990s, beer constituted about half of San Miguel's
annual turnover. In fact, the conglomerate has grown over the course of its more
than 105 years in business to generate four percent of its home country's gross
national product and six percent of tax revenues.

San Miguel grew to its commanding position in the Southeast Asian market in
spite of political upheaval, infrastructure glitches, and high taxes. It achieved its
status through aggressive competitive strategies and shrewd long-range planning
over the decades. Having diversified into agribusiness, foods, and packaging in
the mid-20th century, the conglomerate dominated its domestic markets by the
early 1980s. At that time, San Miguel undertook an aggressive program of
international expansion that came to fruition in the mid-to-late 1990s.

Don Enrique Ma Barretto de Ycaza established the brewery, Southeast Asia's

first, in 1890 as La Fabrica de Cerveza de San Miguel. He named the company
after the section of Manila in which he lived and worked. He was soon joined by
Don Pedro Pablo Roxas, who brought with him a German brewmaster. San
Miguel's brew won its first major award at 1895's Philippines Regional Exposition,
and led its imported competitors by a five-to-one margin by the turn of the 20th
century. The company was incorporated in 1913 following the death of Don
Pedro Roxas.

By that time, San Miguel was exporting its namesake brew to Hong Kong,
Shanghai, and Guam. Andrés Soriano y Roxas joined San Miguel in 1918,
beginning a multi-generation (albeit interrupted) reign of Sorianos. In 1990, San
Miguel's Beer Bulletin noted that "Beer was the heart of San Miguel's business,
and the soul from which emanated all its other businesses." Andrés Soriano
initiated the company's diversification, which proceeded rather logically via
vertical integration. The experience cultivating barley naturally evolved into other
agricultural businesses, for example. San Miguel gathered steam in the 1920s,
when the company expanded into nonalcoholic beverages with the creation of
the Royal Soft Drinks Plant in 1922. San Miguel entered the frozen foods market
in 1925 with the creation of the Magnolia Ice Cream Plant. By the early 1990s,
Magnolia held four-fifths of the frozen dessert market. Soriano created the first
national Coca-Cola bottling and distribution franchise in 1927. The Philippine
company owned 70 percent of the joint venture, which grew to become Coke's
sixth-largest operation. By the early 1990s, San Miguel had captured over two-
thirds of the domestic soft drink market.

Although World War II interrupted San Miguel's brewing business, the company
got back on the growth track in the postwar era, acquiring production facilities in
Hong Kong in 1948. The company also resumed its program of vertical
integration, even building its own power plant so that it would not be dependent
on the Philippines' notoriously poor infrastructure. San Miguel also built a liquid
carbon dioxide plant, glass bottle manufacturing facilities, and a carton plant
during the postwar period.

The company shortened its name to San Miguel Corporation in the early 1960s,
and Andrés Soriano, Jr. advanced to the company's presidency upon his father's
1964 death. He has been credited with instituting modern management theory,
including decentralization along product lines. Soriano Jr. continued to diversify
the food business during the early 1980s, expanding into poultry production in
1982, building an ice cream plant in 1983, adding shrimp processing and freezing
in 1984, and adding beef and pork production in 1988.

Over the decades, San Miguel earned a formidable reputation as a fierce

competitor. The company used all the tools at its disposal. When it could not beat
a rival through traditional means, it acquired and intimidated upstarts into
submission. The Filipino government's complicity didn't hurt, either. Long
protected by high tariffs, San Miguel encountered its first major competitor in the
beer market in the late 1970s. That's when Asia Brewery entered the segment.
The rivalry between Asia Brewery and San Miguel came to a head in 1988, when
Asia Brewery cannily introduced a bargain-priced "brand" called, simply, "Beer."
The imported product looked and tasted like its primary competitor, playing upon
the fact that in the Philippines, the San Miguel brand was synonymous with
"beer." It was a creative counter to San Miguel's notoriously aggressive and
sometimes cutthroat competitive strategy, which had reportedly included
"attempts to sabotage sales network and smash its empty bottles." Asia Brewery,
whose owner was reputedly connected to Marcos sympathizers, even hired away
San Miguel's brewmaster.

Although San Miguel enjoyed virtual monopolies in its markets, that status did not
shield it from the political machinations of the Philippines. The reign of Ferdinand
Marcos brought this element into sharp focus in the 1980s, when an intra-familial
proxy fight at San Miguel turned political. The dispute was instigated in 1983 by
Enrique Zobel, a wealthy cousin of the Sorianos who owned the Ayala banking
and real estate group and sided with the Marcos government. Unable to execute
a takeover on his own, Zobel sold his 19.5 percent stake to Eduardo Cojuanco,
Jr. (known in some circles as "the coconut king"). Although Cojuanco was a
cousin of Marcos opponent Corazon Aquino, he too sided with Marcos.
Cojuanco's Coconut Industry Investment Fund (a.k.a. United Coconut Planters
Bank) accumulated an additional 31 percent of San Miguel, giving him effective
control of the conglomerate and leaving the Soriano family with a mere three
percent. Cojuanco scooped up the chairmanship in 1984, when Andrés Soriano
Jr. died of cancer. But his reign over San Miguel lasted only two years. When
Marcos lost the 1986 election to Aquino, Cojuanco and many other Marcos
backers fled the country.

Andrés Soriano III resumed San Miguel's chairmanship and launched a

campaign to reclaim the family legacy that year. But when the new chairman tried
to buy back the abandoned shares, he was blocked by an unexpected agency;
the Aquino administration's Presidential Commission on Good Government
(PCGG) assumed control (but not legal ownership) of the 51.4-percent stake and
refused to relinquish it. The controlling interest carried nine of San Miguel's 15
directors seats with it. The PCGG continued to tend its San Miguel stake into the
early 1990s, but it acceded de facto control of the conglomerate to Andrés
Soriano III via a management contract with his A. Soriano Corp.

Soriano III was characterized by Business Week's Maria Shao as an "introverted,

almost reclusive" leader. Schooled at the University of Pennsylvania's prestigious
Wharton School, Soriano III had dabbled in investment banking in New York City
before returning to the Philippines. Soriano tried everything from legal
machinations to joint-venture buyout schemes to wrest control of San Miguel
from the PCGG, but to no avail.

San Miguel Corporations has different variety of product and one of it is the
Magnolia.

https://www.referenceforbusiness.com/history2/86/San-Miguel-Corporation.html

a. History of Magnolia
Magnolia, Inc. was established in 1981 when San Miguel Corporation (SMC)
spun off its butter, margarine and processed cheese assets into a joint-venture
with New Zealand Dairy Board (NZDB), forming Philippine Dairy Products
Corporation (PDPC). The company was a business unit of
SMC's Magnolia Division and engaged in the manufacture
of butter, margarine and processed cheese. Its production facility was the
Magnolia Dairy Products Plant on Aurora Boulevard. The Aurora Boulevard plant
remained as its production facility until 2000 when it transferred to a new facility
in General Trias, Cavite.
In 1994, PDPC acquired the margarine brands Star Margarine and Dari
Creme from Procter & Gamble Philippines, Inc. (formerly Philippine
Manufacturing Company).
In 1996, SMC spun off its ice cream and milk business into a joint-venture
with Nestlé, forming Magnolia-Nestlé Corporation. The Aurora Boulevard
property remained under the ownership of SMC and served as the venture's
main production facility and site of its ice cream parlor. After SMC withdrew from
the venture in 1998, albeit still owning the property, Nestlé Philippines continued
with the business under the Nestlé brand name (the ice cream parlor became
known as Nestlé Creamery). PDPC and Nestlé’s ice cream production was
gradually transferred a new facility in General Trias, Cavite. By 1999, Nestlé
ceased ice cream production operations in the Aurora Boulevard facility. [1] In
2008, SMC sold the Aurora Boulevard property to Robinsons Land Corporation
(RLC), a subsidiary of JG Summit Holdings, Inc. News reports cited that the
property was sold reportedly in the amount of P1.6 billion. The property was
developed by RLC into a mall (Robinsons Magnolia) and residential
condominiums (The Magnolia Residences).[2] One of the mall’s first
establishments was a Magnolia-franchised ice cream parlor named Magnolia
Flavor House, which operated from 2012 to 2017, as a fitting homage to the
property’s roots.[3]
In July 2002, SMC gained full ownership of the company after NZDB divested its
stake.[4] With this, the company name was changed to Magnolia, Inc. and
became a subsidiary of San Miguel Pure Foods Company (now San Miguel Food
and Beverage, Inc.), the corporate parent for the entire food and beverage
portfolio of SMC.
Magnolia, Inc. has since diversified from the manufacture of butter, margarine
and processed cheese, to include jelly snacks, cooking oil, salad aids and the
revived Magnolia ice cream and milk products.
https://en.wikipedia.org/wiki/Magnolia_(Philippine_company)

b. Vision and Mission

Vision Statement:

To be a viable company model for sustainability, responsibility, financial strength,

integrity, democracy, employee and member satisfaction, conservation,
renewable energy, education and communication while maintaining good quality
products.

Mission Statement:

It is the Mission of San Miguel Corportion. to demonstrate corporate

responsibility and community service while providing our members with safe,
reliable, cost effective and environmentally responsible products and services

http://www.smpa.com/content/mission-vision-core-values
e. Distribution Network

Plan Distribution

SMC plans to issue the Offer Shares to institutional and retail investors in the
Philippines through a public offering to be conducted through the Underwriters.
The Offer does not include an international offering. The detailed plan of
distribution and underwriting arrangements for each tranche of the Offer shall be
as set out in the Offer Supplement. The Underwriters are duly licensed by the
SEC to engage in the underwriting or distribution of the Offer Shares. The
Underwriters may, from time to time, engage in transactions with and perform
services in the ordinary course of its business, for SMC or any of its subsidiaries.

Underwriters have no direct relations with SMC in terms of ownership by either

of their respective major shareholder/s and have no right to designate or
nominate any member of the Board of Directors of SMC.

The Underwriters have no contract or other arrangement with SMC by which it

may return to SMC any unsold Initial Offer Shares.

Sale and Distribution

The distribution and sale of the Offer Shares shall be undertaken by the
Underwriters who shall sell and distribute the Offer Shares to third party
buyers/investors. The Underwriters are authorized to organize a syndicate of
underwriters, soliciting dealers and/or Selling Agents for the purpose of the Offer.
In connection with the foregoing, the Underwriters may enter into agreements,
participation agreements, or like agreements with other co-lead managers and
managers (who may be named or have been named in the Offer Supplement)
and/or Selling Agents, as necessary. There is nothing in such agreements that
allow the Underwriters to return to SMC any unsold Offer Shares.

The Company will not allocate any Offer Shares for Local Small Investors. As
defined in the PSE Revised Listing Rules, a Local Small Investor is a share
subscriber whose subscription does not exceed ₱25,000.00. The Offer will have
a minimum subscription amount of ₱37,500.00, which is beyond the prescribed
maximum subscription amount for Local Small Investors. Prior to close of the
Offer Period for each tranche of the Offer, any Offer Shares not taken up by the
trading participants shall be distributed by the Underwriters directly to their clients
and general public. All Offer Shares not taken up by the trading participants,
general public, and the Underwriters’ clients shall be purchased by the
Underwriters pursuant to the terms and conditions of the relevant Underwriting
Agreement.

https://www.papercamp.com/group/san-miguel-corporation-distribution-
channels/page-0

Term of Appointment

The term of the appointment of the Underwriters for each tranche of the Offer
shall be as set out in the relevant Offer Supplement.

Manner of Distribution

The Underwriters shall, at their discretion, determine the manner by which

proposals for subscriptions to, and issuances of, the Offer Shares shall be
solicited, with the sale of the Offer Shares to be effected only through the
Underwriters. The Underwriters may appoint other entities, including trading
participants, to sell on their behalf.

https://www.papercamp.com/group/san-miguel-corporation-distribution-
channels/page-0
 IV.
Competitive Analysis

1. Industry Participants

DIRECT COMPETITORS:

Marigold
Marigold was produced by Malaysia Milk Sdn Bhd. It was founded in 1969
by Mr. Thio Keng Poon, who was driven the company through the singular mission
of developing products for a healthier lifestyle, a corporate philosophy that
continues to lead us through the future. Their main mission then was to distribute
the range of quality products manufactured by Singapore counterpart.

Nestle
Nestlé SA is a nutrition, health and wellness company, which engages in
the manufacture, supply and production of prepared dishes and cooking aids,
milk-based products, pharmaceuticals and ophthalmic goods, baby foods and
cereals. The company products portfolio includes powdered and liquid
beverages, water, milk products and ice cream, nutrition and health science,
prepared dishes and cooking aids, confectionery, and pet care. It operates
through the following segments: Zone EMENA, Zone Americas, Zone Asia,
Oceania & Africa, Nestlé Waters, Nestlé Nutrition, and Other Businesses. The
Other Business segment is comprised of Nespresso, Nestle Health Science and
Nestle Skin Health. The company was founded by Henri Nestlé in 1866 and is
headquartered in Vevey, Switzerland.

Selecta
Selecta is a brand of ice cream and milk sold in the Philippines and also in
Australia by Mead Johnson Company, who also made Sustagen and Enfamil.
The ice cream brand is co-owned by the Philippines' RFM Corporation and the
food giant Unilever under the subsidiary Unilever RFM Ice Cream, Inc. The
company's beginnings can be traced back to Selecta Ice Cream and
Refreshment Parlor, owned by Ramon Arce, Sr. and family, and founded in the
1930s. It later expanded its business by selling its ice cream and milk with Mead
Johnson nationwide. In 1990, RFM Corporation bought Selecta from the Arce
family, and formed Selecta Dairy Products, Inc..
INDIRECT COMPETITORS:

Mondelez International
Mondelez International, Inc. is a snack company. The Company manufactures
and markets snack food and beverage products for consumers. It operates
through four segments: Latin America, Asia, Middle East, and Africa (AMEA),
Europe and North America. As of December 31, 2016, its brands spanned five
product categories: Biscuits (including cookies, crackers and salted snacks);
Chocolate; Gum and candy; Beverages (including coffee and powdered
beverages), and Cheese and grocery. Its portfolio includes various snack brands,
including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy
Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered
beverages. The Company sells its products to supermarket chains, wholesalers,
supercenters, club stores, mass merchandisers, distributors, convenience stores,
gasoline stations, drug stores, value stores and retail food outlets. As of
December 31, 2016, it sold its products to consumers in approximately 165
countries.

Meiji
Market the high-cacao-polyphenol-content product Chocolate Kouka,
which caters to customers’ increasing health consciousness. Meiji also
offers Meiji The Chocolate, which includes the “bean-to-bar” concept. We are
driving expansion of the chocolate market. We market a wide range of chocolate
brands. Offerings include the long-seller brand Meiji Milk Chocolate, which has
been on the market for more than 90 years, the mainstays Almond
Chocolate and Macadamia Chocolate, the fun and tasty Kinoko no
Yama and Takenoko no Sato, the winter-only product Meltykiss, the marvelously
textured Galbo, and the sweet, whimsical Cute Chocolate varieties
(Apollo, Marble Chocolate, CHOCO BABY).

Jack ‘n Jill
Since 1954, parent company Universal Robina Corporation (URC) has
been the innovative front runner in the snack food industry. The secret behind the
success is the EXCELLENT VALUE that Jack ‘n Jill products provide to
consumers. Only pure ingredients, like real cheddar cheese, are used to create
its tongue tickling snacks, while prices are kept affordable.

https://craft.co/san-miguel-corporation/competitors

2. Comparative Analysis

A. Target Market

DIRECT COMPETITORS:
MARIGOLD
Their main target market is consumers who are more health conscious
and are looking for convenient alternatives to fresh fruits, milk or yogurt
.

NESTLE
Nestle is expanding its market in different regions of the world and the
food items are provided in different variety. The company is looking for
new market including the rural areas, where these food products can be made
available through their effective and quick distribution channels.

The target market of nestle are those people who wants to live a healthy life, who
wants to eat quality products with nutritional value.

SELECTA
 The market is geographically segmented on Philippine regions.
 All people
-Who belong in social class which prioritizes child-centered activities and
family bonding moments
-Who loves ice cream but are not in favour of fruits or healthier choices

INDIRECT COMPETITORS:

MONDELEZ INTERNATIONAL
Mondelez focuses on the international market and it includes the
Philippines. The target age is from all the ages but the priorities are those young
ones who are capable on being aware of brand. The products are also suits to
the income of everyone as it offers small packs of each of its products

MEIJI
Their target market are the chocolate lovers and children.

JACK ‘N JILL-URC
Their target market are the people living in the Philippines and neighboring
countries.

B. Positioning

DIRECT COMPETITORS:

MARIGOLD
Their positioning in helps to maintain good healthy when time is short and create
a value in consumer mind about this product and motivate them to buy frequently
with a tagline of “For health, For life.”
NESTLE

Nestle brings a many of product for target customers which includes dairy
products. They reach their products to the customers through their experienced
market salesman and transportation. So that their products are much easy to
reach by their customers. The Company has a large number of manpower’s that
are highly educated and trained.

SELECTA

Selecta focuses on the creaminess of their ice cream co-created by Manila’s

finest chef that suits with its passion for exceeding the expectations of
consumers, unwavering dedication to quality, and unrelenting quest to improve
itself through its innovations.

https://craft.co/san-miguel-corporation/competitors

INDIRECT COMPETITORS:

MONDELEZ INTERNATIONAL

Powerful global brands and local jewels they have a rich portfolio of strong
brands – both global and local. Strong Value Chain Across the globe, they also
have a powerful value chain. They touch millions of stores and combine this with
state-of-the-art manufacturing. Committed People their people are energized for
growth. They have a diverse employee community that can make things happen,
and happen fast.

MEIJI
They believe that they are offering a more affordable version of a similar
quality to craft-chocolate fans and their product helps them have it as daily
necessity.

JACK ‘N JILL-URC
URC to have market leadership in salty snacks, candies, chocolates,
canned beans, and ready-to-drink tea while maintaining strong positions in
coffee, biscuits and noodles.
C. Products

DIRECT COMPETITORS:

MARIGOLD

MARIGOLD
MARIGOLD
100% Fresh
HL Milk
Milk

MARIGOLD
PowerBeans MARIGOLD
Fresh Soya UHT Milk
Milk
 MARIGOLD MARIGOLD
Canned Milk Fruit Drink

NESTLE

KOKO
CHUCKIE
KRUNCH

NESTLE NESTLE
FRESH CORN
MILK FLAKES
 NESTLE
NESTLE
BEAR
ALL
BRAND
PURPOSE
STERILIZE
CREAM
D
SELECTA

SELECTA
SELECTA
FORTIFIED
CORNETTO
MILK

SELECTA SELECTA
BUTTERFRES BIRTHDAY ICE
H MARGARINE CREAM

SELECTA ICE
SELECTA ICE
CREAM(MANG
CREAM
O CREAM
(ROCKY
CAKE)
ROAD)
INDIRECT COMPETITOR:

MONDELEZ INTERNATIONAL

EDEN
TANG
CHEESE

CLORET
OREO
S

TIGER BELVITA
ORIGINAL BISCUIT
MEIJI

Meiji Milk Meiji

Chocolate Almond
Meiji Chocolate

Meiji
Japan Meiji
Chocolate Macadami
s 100% a - Original
Authentic

Meiji
Meiji Hello
Yanyan
Panda
Chocolate
Strawberry
Pretzels
JACK N’ JILL-URC

Jack N Jill
PIATTOS
Jack N Jill SUPERSIZED
Jack n Jill CHEESE
Hello! FLAVORED
Vanilla POTATO
Flavor 10s CHIPS PARTY
PACK 170G X
2 PACKS

Jack n' Jill

Jack N Jill
Jack N Jill NOVA
Quake Multigrain
overload Snacks -
favorites Country
33g x 10 Cheddar
pcs Flavor (20
packs x 40
grams)

Jack N Jill
Magic Jack n' Jill
Flakes Lush candy
Cracker 50PCS x 3
Sour Cream packs
28g x 15s
D. Packaging and labeling

DIRECT COMPETITORS:

MARIGOLD

MARIGOLD HL Low Fat Milk

 Is more than just ordinary milk. It is high in calcium and protein while low
in fat and lactose, also fortified with 9 essential vitamins: A, B1, B3, B6, B12, C,
D3, E and Folic Acid.

MARIGOLD 100% Fresh Milk

Direct from the green pastures of Australia, MARIGOLD 100% Fresh
Milk contains all the natural goodness of fresh Australian cow's milk. MARIGOLD
100% Fresh Milk is available in the classic variant that's pure milky goodness.

MARIGOLD Power Beans Fresh Soya Milk 

Is the only fresh soya milk that offers the added goodness of 5 Vitamin Bs
and a unique Bone Plus formula (Vitamins K & D) which work synergistically to
enhance calcium absorption and improve bone strength.

MARIGOLD UHT Milk

Is the ideal nutritious drink for everyone at all times of the day. What's
more, MARIGOLD UHT Milk is enriched with calcium, protein and
MARIGOLD's unique Bone Plus formulation. With ourMARIGOLD UHT
Milk conveniently packed in Tetra-Pak, one can drink it anytime, anywhere,
chilled or non-chilled.

MARIGOLD Canned Milk

Marygold Lady General Full Cream Sweetened Condensed Milk is high in
calcium and is fortified with the goodness of Vitamin A, D and B1. It is an ideal
choice for creaming your favorite beverage like coffee and tea, leaving you with a
rich and creamy taste. It is also good for baking and dessert-making.

MARIGOLD Fruit Drink

Enriched with the goodness of Vitamin C and no preservatives, perfect for
those who desire a quick-and-easy beverage for their active lifestyles. It comes in
six delectable fruity flavors including Apple, Orange, Mango, Grape, Kiwi Apple
and Peach Lemon.

http://www.marigold.com.my/
NESTLE

CHUCKIE
Sweet, creamy, and with the no-fail flavor of chocolate awaiting as you
stick a straw through their foil-lined holes, it’s no wonder we continue to crave
chocolate milk to this day. While the real-deal stuff made with fresh dairy
remains superior, the convenience and nostalgia of the UHT-treated, tetra-
packed sort is one that has its place in our hearts and our stomachs. But with so
many brands to choose from, which one best fits what your taste buds prefer?

KOKO KRUNCH
The great chocolatey taste. We know that kids want to live incredible
adventures and make the most out of their day. These crunchy petals are made
with whole grain and have vitamins, iron and calcium and that great chocolate
taste that they really love! KOKO KRUNCH® is a good way for your kids to take
their day to the max!

NESTLE FRESH MILK

Have enough energy to power your day with Nestle Fresh Milk. Nestle
Fresh Milk is from fresh cow's milk imported from New Zealand. This is great for
the whole family. 100% fresh cow’s milk with 50% less fat. This ready-to-drink
beverage is great for those who appreciate the goodness of milk but want to
manage their weight.

NESTLE CORN FLAKES

Corn flake ear into a box of Nestle Corn Flakes and discover the simple
WHOLE GRAIN goodness within. There’s nothing quite like a bowl of delicious,
crispy flakes of golden corn with a splash of milk to get the day started. It also
contains essential vitamins and minerals, including calcium and iron.

BEAR BRAND STRERILIZED

continues to strengthen generations of Filipino families with an affordable
range of beverage solutions that highlight the resistance building nutrients of
Iron, Zinc and Vitamin C.

NESTLE ALL PURPOSE CREAM

Nestle All purpose Cream has been a great partner of culinary experts in
making creamy creations with a twist. Its versatility allows you to make delightful
sweet and savoury dishes. It can be whipped to create swirls, dollops, and soft
peaks to add excitement to your creamy delicious
SELECTA

SELECTA FORTIFIED MILK

It is fortified with "Vitagen" to build resistance and boost appetite of active
kids. Selecta Fortified Filled Milk is Fortified with Vitamins A, D, B-Complex,
Niacin and Calcium that comes from the trusted brand Selecta.

SELECTA BUTTERFRESH MARGARINE

It is very low in cholesterol and sodium. It is also a good source of Vitamin
A and Vitamin E, and very good source of Vitamin K, vitamin B6 and Vitamin
B12.

CORNETTO
The iconic oh-so-creamy ice cream in a crunchy golden wafer cone. Rip
and reveal delicious tastes and textures, and enjoy every mouth-watering bite all
the way down to a sweet surprising chocolate tip.

SELECTA BIRTHDAY ICE CREAM

2 original flavors and 2 Espesyal flavors in 1.5L tub featuring Ube,
Pandan, Choco Mallows (chocolate base with marshmallow bits) and Cookies
and Cream (vanilla base with cookie bits). It also comes with different sizes and
combination of flavors .

SELECTA SUPREME ICE CREAM

Bring the family together with selecta supreme, heritage flavors and
dessert inspired creations brought to life by an exciting combination of inclusions
mixed in high-quality ice cream that families will surely love which also contain
protein.

https://en.wikipedia.org/wiki/Selecta_(dairy_products)

INDIRECT COMPETITIORS:

MONDELEZ INTERNATIONAL

EDEN
When it comes to creating creamy dishes, nothing comes close to Eden
cheese, the original that Filipinos have loved for more than 30 years—a true part
of our culinary heritage! Eden gives your recipes a distinct rich creaminess for
mealtimes made with love.
TANG
Tang juice drink is not only delicious juice drink but it also a good source
of calcium and contains 100 percent of the recommended daily value vitamins.
You will get the taste of real fruits and at the same time you boost your immune
system with its dose of vitamins. There are also different flavours available

OREO
Oreo is a delicious cookie with two wafers and a creamy center, it consist
of many sizes and flavors there are also a lot of styles which could encourage
those picky eater. And there a lot of flavour to choose.

CLORETS
A refreshing gum and mint which gives long lasting refreshing taste
designed to neutralize bad odors. Indeed, it is only chewing gum that contains
the active Ingredient with Actizol and Chlorophyll. So you can be closer to
anyone you want.

TIGER BISCUIT 
Tiger Biscuit is a glucose biscuit that are mainly made from wheat and
milk to enrich its nutrition and healthier compare to other glucose biscuits in the
market. The main target market of this biscuit is the kids. Therefore, they make
improvement in their biscuits by offering various choice and flavor.

BELVITA
A breakfast biscuit that slightly sweet, crunchy biscuits made with high
quality wholesome ingredients, like rolled oats and real flavored ingredients such
as blueberry. Specially baked and release 4 hours of nutritious steady energy
fuel you all morning long and portioned in convenient, individual packs to help
you grab a breakfast option no matter what morning brings.

https://fr-en.openfoodfacts.org/brand/mondelez/brands

MEIJI

Chocolate. Meiji Milk Chocolate

Number 1 chocolate manufacture in Japanese market by sales. Our
first chocolate was introduced in 1918, after which we released Meiji Milk
Chocolatein 1926. This mellow chocolate is made from carefully selected
ingredients and manufactured according to strict specifications.
Meiji Almond Chocolate
 Has been one of the most beloved chocolate snack in Japan Select, high
quality almonds.

Meiji Japan Chocolates 100% Authentic

100% authentic Japan Chocolates Meiji choco baby Meiji best of 3 Meito
alphabet chocolates Kit kat dark chocolates.

Meiji Macadamia - Original

One of many quality products from Meiji, Macadamia is Creamy Chocolate
filled with soft yet crunchy Macadamia Nuts, known as the "King of Nuts".

Meiji Yanyan Chocolate Pretzels

Pucca is a tasty and moreish snack made by famous Japanese
confectionery company Meiji. It consists of a lightly salted crunchy pretzel outer
shell with a deliciously creamy and smooth sweet chocolate filling.

Meiji Hello Panda Strawberry

Meiji Hello Panda Strawberry biscuits (260g) ... Each bite-size biscuit in
this box has an adorable picture of a panda playing a sport (including badminton,
sailing, and boxing) on the outer biscuit shell casing, while the inside is filled with
luscious Strawberry flavoured filling.

https://www.meiji.com/global/products/lineup/chocolate/
E. Price

DIRECT COMPETITORS:

MARIGOLD

PRODUCT PRICE

MARIGOLD HL Milk ₱ 286.13

MARIGOLD 100% Fresh Milk ₱ 119.54

MARIGOLD Power Beans Fresh Soya Milk ₱ 244.00

₱298.00
MARIGOLD UHT Milk

MARIGOLD Canned Milk ₱ 199.47

MARIGOLD Fruit Drink ₱141.55

NESTLE

PRODUCTS
PRICE

FRESH MILK
₱26.00
NESTLE FRESH MILK TETRA 250ml

Nestle Fresh Milk 1L 2s ₱299.00

Nestlé Non Fat Milk 250ml

₱150.31
BEAR BRAND

Nestle Bear Brand YUGO Strawberry Flavor, Yoghurt Milk ₱285.00

Drink (pack of 12 pcs x 180 ml)

Nestlé BEAR BRAND Sterilized Milk - Full Cream Milk (12

pieces x 200 ml) ₱355.00

BEAR BRAND Adult Plus Milk Powder 300g ₱134.5

Bear Brand Sterilized Full Cream Milk 140ml 6 cans ₱225.72

ALL PURPOSE CREAM

Nestlé All Purpose Cream (2 pieces x 250 ml) ₱135.00

CHUCKIE
Nestlé CHUCKIE Chocolate Milk Drink (3 pieces x 1000ml) ₱279.00
Nestlé CHUCKIE Chocolate Milk Drink (12 pieces x 250ml) ₱325.00

CEREALS

Nestlé Nestlē Corn Flakes 275 grams

₱128.00
Koko Krunch 15g ₱52.00
₱119.00
Koko Krunch Maxx 250g

SELECTA

PRODUCTS PRICE

Butterfresh Margarine 225g ₱ 34.00

Selecta Fortefied Milk 1l ₱ 70.25

ICE CREAM

Cornetto Duet Ube Keso ₱27.51

₱268.95
Selecta Ice Cream 2 In 1 Cookies And Cream And Rocky Road 1.5l
₱136.00
Selecta Ice Cream 2 In 1 Double Dutch And Rocky Road 750ml
Selecta Ice Cream 2 In 1 Double Dutch And Rocky Road 1.5l ₱255.00

Selecta Ice Cream 2 In 1 Quezo Real And Buco Salad 1.3l

₱255.00
Selecta Ice Cream 2 In-1 Double Dutch And Pistachio And Cashew
₱255.00
1.3l
Selecta Ice Cream Buko Salad 1.5l ₱255.00
Selecta Ice Cream Cookies And Cream1.5l ₱255.00
Selecta Ice Cream Double Dutch 1.5l ₱255.00
Selecta Ice Cream Hershey's Salted Caramel With Kisses 1.3l ₱280.00

Selecta Ice Cream Mango Graham Cake 1.5l ₱268.95

Selecta Ice Cream Quezo Real 1.5l ₱255.00

₱255.00
Selecta Ice Cream Rocky Road 1.5l
₱253.10
Selecta Ice Cream Super Thick Vanilla 1.5l

Selecta Double Dutch 1.5l ₱304.74

Selecta Coffee Crumble 1.5l ₱304.74
Selecta Hershey's Cookies & Cream 1.3l ₱323.32
Selecta 3in1+1 Mango Chocolate Ube Double Dutch 1.5l ₱210.16
Selecta Quezo Real 1.5l ₱286.18
Selecta Cookies & Cream 1.5l ₱304.74
Selecta Super Thick Mango 1.5l ₱286.18
Selecta Doub`le Dutch 475ml ₱112.25
Selecta Hershey's Milk Chocolate & Almonds 1.3l ₱315.90
Electa Buco Salad 475ml ₱112.25
Selecta Pistachio & Cashews 475ml ₱112.25
Selecta Hershey's Milk Chocolate & Almonds 475ml ₱169.65
Selecta Quezo Real 475ml ₱112.25
Selecta Pistachio & Cashews 1.3l ₱303.32
Selecta Coffee Crumble 475ml ₱112.25
Selecta Rocky Road 475ml ₱112.25
Selecta Matcha Cookies & Cream 1.3l ₱304.74
Selecta Ube Langka Cheesecake 1.3l ` ₱304.74
Selecta Buco Melon 1.3l ₱278.39
Selecta Mango Graham Cake 1.5l ₱286.18
Selecta Choco Toffee Crunch 1.3l ₱304.74
Selecta Hershey's Cookies & Chocolate ₱169.65
Selecta Super Thick Strawberry 1.5l ₱271.40
Selecta Black Forest 1.5l ₱286.18
Selecta Hershey's Kisses Dark Fudge 1.3l ₱315.00
Selecta Classic Langka 1.3l ₱278.39
Selecta Quezo Real / Buco Salad 1.5l ₱286.18
Selecta Mango Graham Cake 475ml ₱112.25
Selecta Black Forest 475ml ₱112.25
Selecta Ube Keso 475ml ₱112.25

INDIRECT COMPETITORS:

MONDELEZ INTERNATIONAL

PRODUCT PRICE

EDEN

Eden Filled Cheese 165g (Set of 5) ₱252.96

Eden Filled Cheese 165g with FREE Cheese Keeper (Set of 4)

₱201.96
Eden Sandwich Spread Jar 470mL
₱143.5
Eden Filled Cheese Original 165g
₱49.75
Eden Sandwich Spread Jar 220mL
₱70.00
EDEN CHEESE 5 PIECES OF 165grams EACH
₱328.00
Eden Original Processed Filled Cheese Spread 440g
₱269.00
Eden original Cheese Spread 440g 2's
₱450.00
Green eden sandwich spread with cream cheese flavor 220ml
₱95.00
Eden Filled Cheese
₱83.00
Meltsarap165g

TIGER BISCUIT

Tiger Swavory Choco Sandwich 118g (Pack of 6)

₱208.08
Tiger Original Energy Biscuits 50.4g. (Pack of 10)
₱112.2
Tiger Energy Chocolate Cookies (10s 210g) x 2 packs
₱163.13
Tiger Swavory Chocolate Sandwich Multipack (9x27g)
₱70.00
Tiger Energy Chocolate Biscuits Multipack (10x21g)
₱56.25
Tiger Swavory Chocolate Sandwich 118g ₱35.00

TANG

Tang Orange 375g (Pack of 2)

₱533.46
Tang Lychee Litro 25g (Pack of 6)
₱107.10
Tang Orange Drink Mix 72oz (2.04kg)
₱685.00
Tang Grape 25g Litro Pack
₱17.95
Tang Mixed Berries Litro 20g (Pack of 12)
₱214.2
Tang Orange Drink Mix 20oz (566g)
₱395.00
Tang CalamansiLitro 25g (Pack of 6)
₱107.10
Tang Strawberry Litro 25g (Pack of 6)
₱107.10
Tang Calamansi 25g ₱17.95
Tang Dalandan 25G ₱17.95
Tang Orange 25g ₱17.95
Tang Pineapple 25g ₱17.95
Tang Guyabano 25g ₱17.95
Tang Honey Lemon 25g
₱17.95
Tang Strawberry 25g ₱17.95
Tang Mango 25g
₱17.95
OREO

Oreo Chocolate Candy Bar 856g ₱1,999.00

Oreo Cookies Dauble Cream 170g ₱249.00
Small Crushed Cookie Pieces 1Lb ₱185.00
Oreo Vanilla Sandwich Cookies Multipack (9x28.5g) ₱72.00
Oreo Strawberry Sandwich Cookies Multipack (9x28.5g) ₱72.00
Oreo Thins Tiramisu Sandwich Cookies 95g ₱43.50
Oreo Chocolate Sandwich Cookies 137g ₱41.00
Oreo Strawberry Sandwich Cookies 133g ₱41.00
Oreo Chocolate Wafer Roll 54g ₱33.00
Oreo Vanilla Mini Cookies in Cup 61.3g ₱30.00
CLORETS
Clorets Actifresh Cool Mint Candy 2.8g ₱33.00
Clorets Ocean Mint (40pcs) 100g ₱33.00
BELVITA
Belvita Breakfast Biscuits Crunchy Hazelnuts 6 Pk 300g ₱119.71
Belvita Raspberry Chia Seeds 270g ₱119.71
Belvita Breakfast Biscuits Yogurt Crunch Live 5 Pk 253g ₱119.71
Belvita Strawberry Duo Crunch 253g ₱119.71
Belvita Oat Crunch 225G ₱179.28
Belvita Fruit &Fibre 225g ₱179.28
Belvita Milk & Cereals 225g ₱179.28
Belvita Honey Nut 225g ₱179.28

MEIJI

PRODUCT PRICE

₱190.00
Meiji MILK CHOCOLATE 26 BLOCKS

Meiji Almond Chocolate ₱120.00

Meiji Japan Chocolates 100% Authentic ₱250.00

Meiji Macadamia - Original ₱125.00

Meiji Yanyan Chocolate Pretzels 10 pcs x 50 g ₱448.00

Meiji Hello Panda Strawberry 43g 3 box ₱141.55

JACK ‘N JILL-URC
 PRODUCT PRICE

Jack N Jill Jack n Jill Hello! Vanilla Flavor 10s ₱102.50

Jack N Jill PIATTOS SUPERSIZED CHEESE
FLAVORED POTATO CHIPS PARTY PACK 170G X 2 ₱244.00
PACKS
Jack N Jill Quake overload favorites 33g x 10 pcs (2
₱199.47
packs)
Jack n' Jill Jack N Jill NOVA Multigrain Snacks -
₱265.00
Country Cheddar Flavor (20 packs x 40 grams)
k N Jill Magic Flakes Cracker Sour Cream 28gr x 15s ₱132.00
Jack n' Jill Lush candy 50PCS x 3 packs ₱198.00
F. Distribution Network

INDIRECT COMPETITORS:

MARIGOLD
Their distribution network is through authorize distributors and online
stores like lazada and shopee

NESTLE

Distribution system of Nestle is one major source of competitive edge over

its existing rivals. Nestle has its own distribution networks equipped with all
necessary transportation facilities. They transport their products at the major
regional sales offices, which are situated at different cities of Philippines. The
sales offices (distribution centers) have their own vans with sales people who sell
and transport goods to the small retailers.

SELECTA
The company can provide a proper distribution to its brands by working
with thousands of suppliers across the world, with a massive supply chain that
purchased over thirteen billion in ingredients and raw materials for its products
and brands.

Those materials are turned into finished products, based on consumer insights,
and manufactured in more than three hundred factories in sixty-nine countries.
The distribution and direct access to consumers via a network of more than four
hundred warehouses and twenty-five million retail stores.

Among direct-to-consumer channels, Unilever brands and products which include

Selecta are served in:

 hypermarkets
 wholesalers and cash and carry
 small convenience stores
 other fast-growing channels such as e-commerce
 out-of-home and direct-to-consumer

All those channels are critical to Unilever brands ( Selecta) to make them
properly available and displayed.

The company also uses digital channels to create a target and more
personalized campaigns based on consumer insights. And in doing so, our value
chain cycle repeats itself.
INDIRECT COMPETITORS:

MONDELEZ INTERNATIONAL
This network of distribution contacts wholesalers and which in turn
contacts to the retailers directly which include grocery stores, panwallas,
Newsagents shops, and other convenience stores. Then it is the consumer,
which is the end result of the channels of distribution for Mondelez. Once the
stock product reaches retailers, the prospective customers can have access to
the product. Recently there was a crisis that Mondelez products had had to
resolve when it was reported that worms were found in a few of the Cadbury’s
chocolates. Since then the company has invested in upgrading packaging
facilities and in making sure that the product’s quality and integrity is maintained.

Some other distribution channels of Mondelez:

 Supermarkets
 Specialist multiples
 Variety chain stores
 Franchised chain

MEIJI
Their products can only be bought through online shops like lazada and
shopee and authorized distributors

JACK ‘N JILL-URC
Their distribution network is through all means of distributions like retail
outlets, supermarkets, malls, etc

G. Promotion

DIRECT COMPETITORS:

MARIGOLD

They promote their product backed with health facts and good animation.

NESTLE

Nestle uses tune to their products and it was one of the best advertising
campaigns and was launched. However, the campaign brought Nestle strongly in
the marketBesides this, Nestle regularly uses TVC’s and ATL marketing. It is also
present online through some smart creative. Overall, Nestle is a brand which has
strong products as well as strong marketing, and hence the brand has a very
high brand recall value.
SELECTA

Advertising serves as the primary means of promoting Selecta’s products.

Many of the company’s brands have advertisements on television and online
media. The firm also occasionally uses sales promotion, such as discounts and
product bundles.

 Advertising (primary)
 Sales Promotion
 Public Relations
 Personal Selling

INDIRECT COMPETITORS:

INTERNATIONAL

Mondelez international has a wide range of ways of promoting itself. the

promotion strategy in the marketing mix is done through the television, posters,
newspaper, online, radio. They have seen that the company has made great
efforts to make its product reach the people and make the people aware of it
items. There are various kinds of taglines which are attached with various brands
of Mondelez.

MEIJI

Percentage of advertising impressions (1) made on children and (2) made

on children promoting products that meet dietary guidelines.

JACK ‘N JILL-URC

Their way of promotion is through TV advertisements, leaflet, posters,

freebies, and many more.
 V.
SWOT ANALYSIS

Strengths
•It is already globally and internationally known.

•It is a large group of company

•The company is diverse into non-allied businesses.

Weaknesses
•The company has a large market share.

•The company suffered from a credit rating downfall.

•Dynamic market environment

•Losing its international assets.

Opportunities
•New ventures for the company.

•The company can merge into non-allied businesses.

•The company can engage into more profit oriented businesses.

•Successful diversion plans.

Threats
•Effectiveness of diversion plans.

•Large loss of money due to large market share.

•Losing of other contracts due to credit rating downfall.

•Wrong evaluation of plans.

•Other competitors

https://www.researchandmarkets.com/reports/585238/san_miguel_corporation_s
wot_framework_analysis
 VI.
Marketing and Financial Objectives

A. Sales Objectives
• To introduce new products or services
•To attract to new customers
•To introduce existing customers to buy more
•Helps the firm to remain competitive
•To increase sales in off-seasons
•To add to the stock of the dealers

B. Profit objectives
•Growth in earnings
•Wide profit margins
•Maintaining a healthy cash flow
•Increasing Return on Investment
•A more diversified revenue base

C. Market Share Objectives

1.To increase sales among the youth by over 15% by the end of our 6 week
summer campaign.
2.Raise awareness about Magnolia’s around the country, and be recognized as
the number one ice cream and dairy products provider in the country within five
years.
3.To become and maintain the number one spot of the best ice cream providers
in the country named by consumers.
4.To respond correctly and effectively to every customer’s service query, whether
in-store or online, within five minutes of the question or instantaneous in cases of
simpler questions.
5.To come up with ice cream book clubs and increase the number of ice cream
book clubs to double the current number in the next 18 months.

https://www.slideshare.net/edzmhar0186/san-miguel-corporation-24130073
 VII
Marketing Strategies

1. Positioning Statement and tagline

For providing a comprehensive food solution to its customers, thereby building
greater brand loyalty and prestige, Magnolia the subsidiary of San Miguel
Corporation is the dairy company that access to the best it can offer, so they can
experience deeper connections through helping people enjoy and make progress
in their lives through the many products and services that company offers,
because they want to give every customer and consumer the best.

Tagline

“Celebrate Goodness Everyday”

2. Strategies

San Miguel’s goal is to help people enjoy and make progress in their lives
through the many products and services that our company offers. We want to
give every customer and consumer we touch access to the best we can offer—
whether in terms of quality, or affordability or choice.

Our strategy for achieving these goals has five major elements which are
common to both our traditional and new businesses:

Enhance value of our established businesses.

We aim to enhance the value of our established businesses, ever striving to

achieve even greater efficiencies and operational excellence. We will strengthen
our brands by improving product visibility and targeting areas where there is
room for growth in market share.

Continue to diversify into industries that underpin the development and

growth of the Philippine economy.

In addition to organic growth, we continue to seek strategic acquisition and

greenfield opportunities, positioning our businesses in a way to best contribute to
our country’s economic growth and industrial development.

Identify and pursue synergies across businesses through vertical

integration, platform matching and channel management.

We will create an even broader distribution network for our products and expand
our customer base by identifying synergies across our various businesses. In
addition, we are pursuing plans to integrate our production and distribution
facilities for its both our established and newly acquired businesses to generate
additional cost savings and efficiencies.
Invest in and develop businesses with market leading positions.

San Miguel intends to further enhance our market position in the Philippines by
leveraging the company’s financial resources and experience to allow it to
continue to introduce new products and services. Potential investments to
develop existing businesses include building additional service and micro-filling
stations, constructing new power plants, expanding our power generation
portfolio and expanding food distribution networks. We believe our strong
domestic market position provides an effective platform to develop markets for an
expanding product portfolio. And we will continue to invest in and develop
businesses that have the potential to gain leading positions in their respective
markets and industries.

Adopt world-leading practices and joint development of businesses.

We will develop strategic partnerships with global industry leaders, including Kirin
in the beverages business and Nihon Yamamura Glass in our packaging
business. These partnerships provide marketing and expansion opportunities,
and potentially provide liquidity and opportunities for SMC to divest minority
stakes in its businesses as other opportunities.

https://www.adbrands.net/ph/sanmiguel_ph.htm
 VIII
Marketing Programs/Schedule/Action Plan

Activity In-charge Duration Budget

Php 50,000,000,000
Promote the Marketing
to
brand nationwide Department One year
Php100,000,000,000

Respond
Php 22,500 to Php
correctly and
Human Resource One month to 67,500
effectively to
Manager Three months
every custome

Three months to Php 1,000,000

To have a wide Sales Department
Five months
profit margin

Keeping the firm

Human Resource
to remain One year Php 5,000,000
Management
competitive

Increase the Sales Manager/ Six months to

Php 5,900,000
sales and profit Sales Person One year
 IX
Marketing Budget

Action Plan Total Cost

Developing a series of outreach and

activity programs and nationwide
Php 64,000,000,000
advertisement to raise awareness of
product

Creating social media websites and

accounts to be able to respond
Php 30,000
customer such as complaints,
suggestions, deterrents, and delays

Php 250,000
Optimize vendor relationships

Scouting employees with great Php 4,500,000

potential and talent

Intensify the variation of offerings Php 4, 000, 000

 XI.
Monitoring and Control

Action Plan Monitoring Control

Developing a series of
outreach and activity Assess your concepts Track awareness of
programs and nationwide people about the product
advertisement to raise or brand
awareness of product

Creating social media

websites and accounts to Employ quality Provide full attention to
be able to respond monitoring to improve the customer and ask
customer such as capability of agents questions
complaints, suggestions,
deterrents, and delays

Optimize vendor Create channels and Communicate often with

relationships monitor the vendors vendors and build strong
partnership

Analyze each potential

Scout employees with Place staffs where they
and strengths of
great potential have the talents and skills
employees

Intensify the variation of Monitor the likes and Taking an action to meet
offerings interests of customers the expectation
 Appendices

edge.pse.com.ph › companyinformation › form

www.sanmiguel.com.ph › page › strategy

https://webcache.googleusercontent.com/search?
q=cache:SLfc_4DjOl8J:https://www.sanmiguel.com.ph/article/san-miguel-sets-
sights-on-higher-growth-from-new-businesses+&cd=2&hl=en&ct=clnk&gl=ph

https://www.sanmiguel.com.ph/files/reports/SMC_17A_04.16_.2018_(A)_.pdf

https://www.cram.com/essay/The-Stages-Of-A-Corporation-s-
Lifhttps://studymoose.com/san-miguel-corporation-case-analysis-essay

e/PKLZ66AZ7BWWhttps://studymoose.com/san-miguel-corporation-case-analysis-
essay

https://www.sanmiguel.com.ph/page/customer-relations-productivity-and-quality

https://www.sanmiguel.com.ph/page/strategy

https://www.referenceforbusiness.com/history2/86/San-Miguel-Corporation.html
https://en.wikipedia.org/wiki/Magnolia_(Philippine_company)
http://www.smpa.com/content/mission-vision-core-values

http://www.smpa.com/content/mission-vision-core-values

https://www.papercamp.com/group/san-miguel-corporation-distribution-
channels/page-0

https://craft.co/san-miguel-corporation/competitors

https://craft.co/san-miguel-corporation/competitors

https://www.meiji.com/global/products/lineup/chocolate/
http://www.marigold.com.my/
https://fr-en.openfoodfacts.org/brand/mondelez/brands
https://www.nestle.com/ask-nestle/products-brands/answers/what-
products-does-nestle-sell
https://en.wikipedia.org/wiki/Selecta_(dairy_products)
https://www.researchandmarkets.com/reports/585238/san_miguel_corporation_s
wot_framework_analysis
https://www.slideshare.net/edzmhar0186/san-miguel-corporation-24130073
https://www.adbrands.net/ph/sanmiguel_ph.htm