Hacienda Macalauan’s Pure & Best:

A Low Fat Flavored Milk Drink

In Metro Manila
 SITUATION ANALYSIS
GLOBAL
¤  drinking milk products is a US$152.8 billion
industry
¤  flavored milk drinks contributing US$17.5 billion to
the total in 2010
¤  Demand for health and indulgence remained a
recurrent theme of product innovation
¤  Drinking milk products growth by 2%
¤  Flavored milk products by 12% in China and
India
¤  Powder milk’s importance to overall drinking milk
products has declined steadily since 2004
¤  Nestlé remained the global market leader
¤  Supermarkets/hypermarkets remained the most
important retail formats
¤  progressive expansion of low-fat milk lines
LOCAL
¤  US$1 billion in revenues
¤  Flavored milk drinks contributing Php 3.2 million
to the total in 2012
¤  Brands with additional health benefits will likely
be popular with adults
¤  Drinking milk is expected to grow at over 3%
CAGR
¤  Powdered milk remains important to lower
income households
¤  Nestle’ remains a market leader
¤  Supermarkets/hypermarkets remained the most
important retail formats
¤  Product differentiation is likely to be a key
strategy for manufacturers in gaining market
niches
 COMPETITIVE LANDSCAPE

PHP72.6m Ad Spend for Nestlé Non-fat (according to Starcom 2013 Ad Spend)

 Competitor’s Efforts

Company   Distribu0on   Pricing   Adver0sing   Sales  Promo0on   Packaging   Product   Ad  Spend   Audience  
Supermarkets/ adult  healthy  lifestyle  
Nestle     P78/1L   Instore     None   Tetra  Brick  Asep>c   Low  Fat  Hi-­‐Calcium  Milk   -­‐  
hypermarkets   seekers  
    P30/250ml       Tetra  Brick  Asep>c        
                 
Supermarkets/
Nestle   P81.75/1L   TV/Print   None   Tetra  Brick  Asep>c   Non-­‐Fat  Hi-­‐Calcium  Milk   72,610,304.00   die>ng  women  
hypermarkets  
    P30/250ml       Tetra  Brick  Asep>c        
                 
Supermarkets/ high  end  healthy  Lifestyle  
Nestle   P130/1L   None   Online  contest   Plas>c  boSle   Premium  Dairy  Low  Fat  Milk   -­‐  
hypermarkets   seekers  
    P30/200ml              
                 
Supermarkets/ Magnolia  PureFresh  Low  Fat   adult  healthy  Lifestyle  
San  Miguel  Corp   P74.50/1L   None   None   Tetra  Brick  Asep>c   -­‐  
hypermarkets   Cow's  Milk   seekers  

Convenience  
  P30/250ml       Tetra  Brick  Asep>c        
stores  
                 
Supermarkets/ women  seeking  healthy  
RFM  Corpora>on   P65/1L   TV/Radio/Print   None   Tetra  Brick  Asep>c   Selecta  Low  Fat  For>fied  Milk   -­‐  
hypermarkets   lifestyle  on  a  budget  

Convenience  
  P24.50/245ml       Tetra  Brick  Asep>c        
stores  
                 
Supermarkets/ Cowhead  Lite  Low  Fat  High   adult  healthy  Lifestyle  
Ben  Foods  PTE  LTD   P74.50/1L   None   None   Tetra  Brick  Asep>c   -­‐  
hypermarkets   Calcium  Milk   seekers  
    P29.50/250ml       Tetra  Brick  Asep>c        
                 
Supermarkets/ Cowhead  Slim  Fat  Free  High   adult  healthy  Lifestyle  
Ben  Foods  PTE  LTD   P74.50/1L   None   None   Tetra  Brick  Asep>c   -­‐  
hypermarkets   Calcium  Milk   seekers  
    P29.50/250ml       Tetra  Brick  Asep>c        

*Based  on  Jan-­‐Aug  2013  Compe>>ve  Ad  Spend  (Milk  Category)  from  Starcom  
Competitor’s Efforts
Competitor’s Efforts
 What is Hacienda Macalauan?

¤  President and Chief Operating Officer, Mr. Eduardo

J. Soriano

¤  a Philippine corporation, registered with the

Philippine Securities and Exchange Commission

¤  Farm operations are guided by Good Agricultural

Practices (GAP)

¤  Herd originated from the Holstein Friesian-Sahiwal

cows that came from Australia and New Zealand

¤  Produce premium milk that is without antibiotics,

growth hormones or dangerous pesticides

¤  Processing plant is home to both the research and

development team and quality control team
PROs vs CONs

Strengths   Weaknesses  
1  Locally  produced   1  Limited  local  distribu>on  
2  Ultra  pasteurized   2  Short  Shelf  life  
3  Farm  fresh   3  New  entrant    
4  Marke>ng  efforts  limited  to  limited  
4  All  natural  
sampling  and  social  media  
5  More  expensive  than  majority  of  
5  No  preserva>ves  
established  brands  
6  Unique  packaging   6  Low  awareness  of  target  market  
7  Low  Fat      
8  3  flavors  (chocolate,  vanilla,  strawberry)      
9  2  SKUs      
10  Delicious  taste      
11  Available  in  upscale  supermarkets      
   
Opportuni>es   Threats  
1  Health  and  wellness  trend   1  Established  brands  
2  All  natural  and  organic  trend   2  Tropical  weather  
3  Improving  local  economy      

SO  (S4,  S5,  S7,  S8,  O1)   ST  (S8,  S7,  T1)  

Posi>on  the  product  as  an  all  natural,  no   Highlight  flavors  while  s>ll  being  low  fat  
preserva>ves,  low  fat  flavored  milk  drink  for   against  established  brands  that  have  no  
healthy  lifestyle  seekers   variants  

SW  (W3,  S4,  S5)   WT  

Posi>on  the  product  as  a  new  entrant  that  is   Add  distribu>on  points  to  compete  with  
all  natural  and  has  no  preserva>ves   established  brands  
 What do we want to achieve?

¤  General Objectives

¤  To generate awareness and interest of the target market in Metro Manila resulting to
product trial
¤  To create opportunities for the target market to sample HMI’s Pure & Best

¤  Creative Objectives

¤  To create awareness of HMI’s Pure & Best as the only farm fresh, delicious, all natural,
low fat, locally produced milk that comes in chocolate, vanilla and strawberry
flavors which is available in select supermarkets in Metro Manila.
¤  To inform the target market that flavored milk can be low in fat.

¤  Media Objective

¤  To effectively reach at least 50% of the target market through various media
executions.
 What is Pure & Best?

Consumer Promise
The only locally produced milk from Calauan, Laguna
which offers delicious, farm fresh, all-natural, milk which is
void of any preservatives and comes in Chocolate, Vanilla
and Strawberry flavors that are low in fat content.

It is available in select supermarkets in Metro Manila, which

offers convenience to consumers.

By drinking Pure & Best milk the consumer will get his
nutritional requirement with lower fat content, less sugar
and no preservatives, which other milks have.

This leaves the consumer happy, satisfied and elated

knowing that the exercise, which he finished, was not
completely negated by the milk drink, which he chose.
 Why is it better?

Cows with rBGH suffer serious health

problems, including an alarming rise in
the number of deformed calves and
dramatic increases in mastitis, a painful
bacterial infection of the udder, which
causes inflammation, swelling, and pus
and blood secretions into the milk.

Flavored milk, is a delicious way to help people of all

ages consume essential vitamins and nutrients
important for health.

A small amount of added sugars can be used to

increase the palatability of nutrient-dense foods, such
as fat-free chocolate milk.
 What’s Pure & Best like?

Brand Personality
HMI’s Pure & Best is fun, sociable,
energetic and confident. Always ready
to seize the day with a positive attitude
and willing to work hard to play harder.

Tone and Mood of Advertising

The advertising should exude fun,
confidence, the zest for life and ready to
face challenges ahead.
 What do we want to say?

Product Truth: HMI’s Pure & Best is the only

locally produced, delicious, premium, all-
natural, farm-fresh, low fat, flavored milk
drink available in select supermarkets in
Metro Manila.

Consumer Insight: Active young urbanites

want delicious farm fresh, flavored milk
minus the added fat and preservatives.

The “Big” Idea: HMI’s Pure & Best is the

premium, all-natural choice for delicious
farm fresh, low fat flavored milk drink for the
active young urbanite.

Tagline:
Sacrifice the fat, not the taste.
 Who are we talking to?

¤  Demographics: ¤  Psychographics:

¤  25 – 35 years old ¤  Influencers

¤  Single, Married ¤  Yuppies

¤  Male and Female ¤  Healthy living practitioners

¤  Belonging to SEC AB ¤  Tech savvy

¤  Living in Metro Manila ¤  Gadget fanatics

¤  College degree holder ¤  Sports enthusiasts

¤  Income level not below P30,000.00 ¤  Success driven

monthly
¤  Seeks convenience

¤  Occasional weekend warrior

¤  Values quality of life

Who are we talking to?

P901 - P1,000 Milk Budget

6%
P80 - P100
P701 - P900 9%
4%
P501 - P700
11%

P100 - P300
35%
P301 - P500
35%
Who are we talking to?

Weekend
markets Place of Purchase
2%
Convenience
stores
14%

Retail stores
4%

Supermarkets
80%
Who are we talking to?

Factors Affecting Milk Choice

Availability
12%

Taste
17%

Shelf Life Brand

9% Reputation
17%

Price
4%
Flavor Variety
7%
Packaging Freshness
8% 14%
Nutritional
Value
12%
Who are we talking to?

Reason for Drinking Milk

Others
28%
Health
Improvement
36%

Prescribed by
Doctor
2%
Health
Maintenance
34%
 How and When do we want to say it?

Above  the  Line               %  of  total  budget  

Publica>on   Size     Rate   Produc>on  Cost   No  of  inserts   Total   Schedule    
Men's  Health   Fullpage   158,000.00   10,000.00   6   958000   Jan-­‐Jun  2014    
Women's  Health   Fullpage   198,000.00   10,000.00   6   1198000   Jan-­‐Jun  2014    
                 
Cost  per  1K  
Internet  Ads  (Facebook)   Cost  per  click   Produc>on  Cost   Frequency   Total   Schedule    
impressions  
      8.00   10,000.00   6  mos   82,000.00   Jan-­‐Jun  2014    
                 
Facebook           30,000.00   Jan-­‐Jun  2014    
                 

TwiSer           30,000.00   Jan-­‐Jun  2014    

                 
Website/microsite       45,000.00     45,000.00   Jan-­‐Jun  2014    
                 
ATL  Total           2,343,000.00     37%  

OOH               %  of  total  budget  

Medium     Placement   Produc>on  Cost   Frequency  (10pcs)   Total   Schedule    
Bannering   3'x8'   High  street   7,673.97   6   46043.82   Jan-­‐Jun  2014    
Bannering   3'x8'   Rockwell   7,673.97   6   46043.82   Jan-­‐Jun  2014    
Bannering   3'x8'   Shangri-­‐la   7,673.97   6   46043.82   Jan-­‐Jun  2014    
Alabang  Town  
Bannering   3'x8'   7,673.97   6   46043.82   Jan-­‐Jun  2014    
Center  
Bannering   3'x8'   S&R  BGC   7,673.97   6   46043.82   Jan-­‐Jun  2014    
Lightbox   2x4   SM  Maka>   8,500.00   6   51000.00   Jan-­‐Jun  2014    
Lightbox   2x4   Greenbelt  1   8,500.00   6   51000.00   Jan-­‐Jun  2014    
Lightbox   2x4   Landmark  Trinoma   8,500.00   6   51000.00   Jan-­‐Jun  2014    
Lightbox   2x4   Landmark  Maka>   8,500.00   6   51000.00   Jan-­‐Jun  2014    
                 
OOH  Total            434,219.10       7%  
 How and When do we want to say it?

Brand  Ac>va>on   Booth  Size   Event  expenses   Sponsorship  Rates   Frequency   Total   Schedule   %  of  total  budget  
Sponsorship  Men's  Health  Fun  Run   2x2   120,000.00   500,000.00   1   620,000.00   Mar-­‐13    
Product  Tas>ng  in  supermarkets   2x2   41,722.22     18   750,999.96   Feb-­‐Apr  2014    
Product  Tas>ng  in  workout  studios   2x2   75,100.00     10   751,000.00   Jan-­‐Mar  2014    
Product  Tas>ng  in  offices   2x2   85,100.00     10   851,000.00   Apr-­‐Jun  2014    
Farm  Tour  for  Bloggers     47,800.00     1   47,800.00   Jan-­‐14    
                 
Brand  Ac>va>on  Grand  Total           3,020,799.96     47%  

Miscellaneous   Size   Expense     Frequency   Total   Schedule   %  of  total  budget  

Marathon  giveaways     40.00     5,000    200,000.00     Mar-­‐14    
Standees   2x4.58   800.00     19    15,200.00     Jan-­‐Jun  2014    
Loyalty  cards     8.00     5,400    43,200.00     Jan-­‐Jun  2014    
Shelf  talkers     30.00     162    4,860.00     Jan-­‐Jun  2014    
               
Mscellaneous  Total            263,260.00       4%  

Post  Campaign  Evalua>on            Total     Schedule   %  of  total  budget  

Retail  Trade  Audit           100,000.00   1  yr      
UAI            100,000.00     aker    
FGD            150,000.00      campaign    
               
Post  Campaign  Evalua>on           350,000.00     5%  

TOTAL   6,411,279.06  
Where do we say it?
Where do we say it?
 Where do we say it?

!
Where do we say it?
 Where do we say it?

!
Where do we say it?
Where do we say it?
 Schedule

Supermarket  List   Date  

S&R      
S&R  Bonifacio  Global  City   Feb  14-­‐16,  2014  
Offices   Date   Gyms   Date   S&R  Congressional   Mar  14-­‐16,  2014  
BGC       Fitness  First       S&R  Alabang   Mar  14-­‐16,  2014  
Net  One   Apr  14-­‐15,  2014   RCBC  Maka>     Jan  17-­‐19,  2014   S&R  Aseana  Baclaran   Mar  14-­‐16,  2014  
       
Net  Cube   Apr  14-­‐15,  2014   Alabang     Mar  28-­‐30,2014   SM  Hypermarkets      
Net  Lima   Apr  29-­‐30,  2014   BGC   Jan  31-­‐Feb  2,  2014   SM  Maka>   Feb  28-­‐Mar  2,  2014  
Picadilly   Apr  29-­‐30,  2014   Trinoma  (Fitness  First  Pla>num)   Feb  14-­‐16,  2014   SM  Pasig   Feb  14-­‐16,  2014  
SM  Mandaluyong   Feb  14-­‐16,  2014  
              SM  MOA   Mar  28-­‐31,  2014  
Maka>     Gold's  Gym              
Enterprise  Bldg   May  29-­‐30,  2014   GlorieSa   Jan  17-­‐19,  2014   Rustans      
Maka>   Feb  28-­‐Mar  2,  2014  
RCBC  Plaza   May  29-­‐30,  2014   Ka>punan   Feb  14-­‐16,  2014   Rockwell   Apr  11-­‐13,  2014  
LKG  Tower   June  10-­‐11,  2014   ADB  Ave   Feb  28  -­‐  Mar2,  2014   Shangri-­‐la  Plaza   Apr  11-­‐13,  2014  
PB  Comm  Tower   June  10-­‐11,  2014           San  Antonio   Apr  11-­‐13,  2014  
Magallanes   Apr  25-­‐27,  2014  
      Work  out  studios       Corinthian  Hills   Apr  25-­‐27,  2014  
Or>gas     Yogaplus   Jan  31-­‐Feb  2,  2014   Ayala  Alabang   Mar  28-­‐31,  2014  
Union  Bldg     May  14-­‐15,  2014   Beyond  Yoga   Mar  14-­‐16,  2014          
Landmark      
Orient  Sq  Bldg   May  14-­‐15,  2014   360  Fitness  Or>gas   Feb  28  -­‐  Mar2,  2014   Landmark  Maka>   Feb  28-­‐Mar  2,  2014  
360  Fitness  Maka>   Mar  14-­‐16,  2014   Landmark  Trinoma   Mar  28-­‐31,  2014  
Where do we say it?
Where do we say it?
 Bloggers Site Topics Views
Anton Diaz Our Awesome Planet Food and Travel 20,517
Lori Baltazar Dessert Comes First Food and Lifestyle 5,675 (FB)
Erwann Heussaff The Fat Kid Inside Food 27,419 (FB)
Malds Menzon The Fit Pinoy Fitness 18,464
Anonymous Manila Spoon Food 6,857
Raymund Ang Sarap Food 11,666

*views according to topblog.com.ph and Facebook

Where do we say it?
Where do we say it?
Where do we say it?
 After the six-month campaign…

The target market has been informed that flavored milk can also be low in fat

HMI’s Pure & Best is the premium choice for farm fresh, all natural, locally produced
milk which is available in select supermarkets in Metro Manila.

The result of reaching 50% of the target market in Metro Manila through various media
executions is curiosity, which leads to trial and purchase.

The brand seeks to be part of the target market’s healthy, active lifestyle.

Ultimately we see the consumers of Pure & Best’s brand ambassadors through word of
mouth or through social networking shares, likes, retweets or reposts and blogs.

Because of product awareness more from the target market will gain consumers. This
sentiment will be shown through social media by liking the Hacienda Macalauan
Facebook page and following the Twitter page and sharing their experiences online.

Through this more consumers will become curious about the brand and will search for
more information about it through the internet.

Consumers will become more receptive of future events from Hacienda Macalauan
now that they have affinity with Pure & Best paving the way for other products from
the same umbrella company.