Boy Bawang- The Future of Cornicks

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 I. Case Brief

KSK Company Profile

KSK Food Products is a manufacturing and distribution company established in 1990. After over a
decade of moderate success, KSK Food Products hit it big in 2003, when they launched the now
leading corn snack brand in the country, Boy Bawang garlic flavoured cornick. With Boy Bawang’s
phenomenal success, this young aggressive company’s future looks brighter and brighter each
passing year – potential is practically limitless.

As a company, our main objective is to be able to manufacture and distribute a wide array of high-
quality, nutritious, and delicious snacks for the entire family. Our company is committed in
maintaining a long-standing reputation of trust and integrity with our customers, suppliers and
consumers.

KSK Food Products already started exporting to North America, Asia, Europe and the Middle East,
making Boy Bawang a truly international brand Filipinos everywhere can be proud of.

Boy Bawang

Product Offerings
From the original garlic flavor Boy Bawanq, KSK Food Products introduced a variety of cornick
flavors, namely Boy Chili Cheese, Bida Corn and Boy Corn. Boy Bawang is available in the
following sizes and prices: 15 grams P1.00, 25 grams (in packs of 12) P21 .75, 50 grams P6.00, 100
grams P12.50. Other flavors like Boy Chili Cheese, Bida Corn and Boy Corn have similar pricing
levels as Boy Bawang. In sari-sari stores, only the flagship product Boy Bawang is usually available.

Competition
Zesty, Siga, Heartbits, and Captain Mokia are just few of the competitors of Boy Bawang.
However, Cornbits is considered as the main rival of Boy Bawang, a brand manufactured by W.L.
Food Products. The company was established in August 1986 and WL is trying to latch on to the
success of Boy Bawang by coming up with its own version under the brand name Super Bawang.

Marketing Strategy
The company advertises its products thru point-of-sales promotions, billboards, posters, and
other promotional materials. Boy Bawang advertising is concentrated on billboards. A total of 11
billboards have so far been installed in Manila and the roads going to the north and south
provinces. There is a standard size for all their billboards, evoking a one look, one feel consumer
perception. All the billboards are back-to-back, therefore doubling the number to a total of 22
billboard ads containing the same information. The rental cost of the billboards range from a low
of P50,000 per month to a high of Php150,000.00 per month.
TV host Anjo Yllana usually promotes Boy Bawang in Eat Bulaga, a daily noon time show. KSK pays
him nothing except for sponsoring Golf Tournaments of Anjo and his buddies in showbiz.

Product Differentiation
KSK Food Products can differentiate its products by customizing the sizes of its pack. Currently, it
is available in 15 gram, 25 grams (in packs of 12), 50 grams and 100 grams. By introducing
different packaging, the customers have flexibility to buy based on their appetite and money.
Although the profit generated from each small packaging is also small, bulks of purchases would
compensate it. Thus, there is a big income for bulk purchases from groceries and sari- sari stores.
It is known that Filipinos are fond of buying items in “Tingi” or small packaging. Because of this,
companies introduced sachets to accommodate the needs of the market. From foods, skin and
body care, it is noticeable in groceries nowadays that every products are in sachets or sold in
small packs. Compared to industrialized countries, the products are sold in big sizes and quantity.
In connection to this, Boy Bawang introduced a bigger sized version designed exports. It uses a
reseal able bag to preserve its freshness.

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 II. Statement of the Problem

How can Boy Bawang market itself ahead of the competition, differentiate its products and
services, and become the clear leader in the industry?

III. Objectives of the Case

a. Identify the areas of strength of Boy Bawang as a brand and leverage on these in promoting
the product
b. Identify weak points in the business and address them
c. Tap on opportunities for business growth
d. Safeguard the brand from the threats coming from competition and other factors

IV. Environmental Scan

a. Strengths
 Good quality products
 Modern equipment
 Tie-up with agricultural agencies for supply of ingredients
 Various awards and citations received
 Continuous product development by R&D to improve the product
 Company has set up high standards for their raw materials and final products
b. Weakness
 Poor marketing activities
 Weak distribution resulting to frequent stock-outs
 No sales force to directly deal with accounts
 No strict monitoring of distributorship activities
c. Opportunities
 Increasing population – growing market for Boy Bawang
 Export market
 Available ex-deals with product endorser

d. Threats
 “Me-too” brands and other competitors especially WL Foods
 Alternative snack products – peanuts, green peas, chicharon, etc.
 Typhoons or calamities that may hamper local supply of its major raw materials
 Aggressive marketing campaigns of competitors may result to greater name recall

V. Alternative Courses of Action

a. Status Quo – maintain current marketing programs and distribution set-up

Advantages
 Maintain minimal marketing expenditures
Disadvantages
 Competitors may eat up on the current market of Boy Bawang

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 b. Implement strategic marketing plans to strengthen “Boy Bawang” as a brand and increase its
brand equity

Advantages
 Improved perceptions of product performance. The brand equity for Boy Bawang adds a
significant value as it is well recognized to have positive associations in the mind of its
customers.

 Greater loyalty
To create brand loyalty for Boy Bawang, KSK envisions customers to bind themselves to the
products as a result of deep-seated commitment. Instead of repeat customers or re-buying
Boy Bawang, the loyalty that the company wants includes antecedents or reason/fact
occuring before the behavior.

 Less vulnerability to competitive marketing actions

The Financial Brand Equity for Boy Bawang determines the price premium over a generic corn
snack. Customers are much willing to buy the product over the same unbranded corn snack
because its premium tells important information about the value of the brand. In return,
promotional cost is considered to measure brand equity.

 Less vulnerability to marketing crises

 Larger margins
Once Boy Bawang established a strong brand equity, KSK can have the ability to command a
premium price by charging more for the same product compared to competitors with less
brand equity without adding costly features. For example, a 50 grams pack which currently
sells for Php 6.00 may increase its price by 50 cents more making the new price to Php 6.50.
Loyal customers will continue to support the product because the increase is reasonable. The
perception is its superior to other product because of its high quality finish.

 More Inelastic consumer response to price increase

Strong brand equity provides more predictable income, increases cash flow by increasing
market share, reducing promotional costs, and allowing premium pricing.

 More elastic consumer response to price decrease

 Greater trade cooperation and support

Research and Development (RND) could easily come up with new flavors from the
suggestions and experimentations of the customers. KSK can establish to the public that they
listen to the people through their suggestions and recommendations. In connection with the
experimentation of adding new flavor to the existing product line, KSK can study the
customers taste preference before launching it to the market. Through this experimentation,
RND can make adjustments to the tastes that would represent the entire market of Boy
Bawang. Customers are more likely to support and welcome new products from Boy Bawang
because of its established brand. In case they make a mistake, the customers would
understand it unlike weaker brands.

 Increased marketing communications effectiveness

According to Alexander Hiam (2009), the brand is considered as the heart and soul of a
marketing program (p. 259). The marketing program will have a high chance of success if the
product is good and has a strong, appealing identity.

The naming of Boy Bawang shows a clear personality that became KSK's intangible signature.
It is clear, simple and easy to say. A great brand name is one of the most powerful forces in
branding, marketing and advertising. Using the name Boy Bawang makes an emotional tug
that connects to the audience using a common Filipino name and vegetable.

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 Customers dont see the personality directly, but its choice of fonts, colors and styles
differentiates it from competitors. For example, Ford Mustang, an extremely successful
brand name, used this strategy. Marketers presented the car as having the personality of the
small, hardy horse of the American plains from which the car took its name. Those marketers
hoped that the driver saw himself as a modern-day cowboy, akin to the real cowboys who
broke and used the mustangs for their work. This strategy has a powerful effect because it
uses existing terms whose meaning marketers apply to their products.

 Possible licensing opportunities

The need to develop product licencing ensures KSK to develop most unique consumer
product. This approach usually earns more profit because it results in fewer deals and higher
averages- each licensee will pay more. Green peas, peanuts and mixed nuts are considered
for the licensing opportunities because these are a common snack food among Filipinos.

 Opportunities for brand extensions

Brand extensions will be launch by introducing other flavors like Chilli Cheese and Barbeque.
It leverages on the existing brand awareness of Boy Bawang thus, reducing the cost in
advertising and a lower risk from the perspective of the consumer. Furthermore, its brand
extensions enhance the core brand which is the Garlic Flavor Boy Bawang. Brand extensions
can further fortify the brand, but only with related products having a perceived fit in the
mind of the consumer.

Disadvantages
 There are investments involved in marketing activities

c. Implement full-blown marketing campaigns to increase media mileage of the brand

Advantages
 Increase brand awareness

Disadvantages
 Very costly for the company
 May result to money being spent on un-relevant marketing activities
 The company needs to identify market segments that it can serve effectively

VI. Recommendation

(b) Implement strategic marketing plans to strengthen “Boy Bawang” as a brand and increase its
brand equity. In addition, to address the threat on supply due to calamities, they should have
back up suppliers from abroad.

VII. Action Plans

a. Active Marketing Campaigns on TV advertisement.
A jingle will be launched with Jose from Eat Bulaga as its endorser. Jose captures the target
market of Boy Bawang because of his “Masa” appeal to the audience. The jingle is simple, fun
and easy to remember that kids can sing-a-long. It will be shown on TV from 12 noon to 3 p.m.
like in Eat Bulaga, Happy-Yipee-Yehey and afternoon dramas. Likewise, it will also be heard on
major AM and FM station in NCR and provinces on the said time; and/or

Launch a Marketing campaign on Social Networking Sites like Facebook and Twitter. Contestants
will have the chance to win by following these instructions:
1. Click the “Like” button on the official Boy Bawang Facebook account.
2. Upload a picture with any Boy Bawang products by showing how they like it.
3. Put a comment on why the like Boy Bawang then tag at least 10 of their friends. The
most creative and unique photos will win a Gift pack. This campaign will run for 1
month during the Anniversary celebration and winners will be selected every Friday.

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 b. Blue Ocean Strategy – identify potentially lucrative segments that are still untapped or under-
served like the export market. Management team will attend in International conventions that
will introduce the product in the International market and not limiting its international
opportunities for Overseas Filipino Workers (OFW). The conventions will also help the R&D Team
to come up with product extensions by observing and studying the other delegate’s products.

c. Effective target marketing requires the following:

i. Market segmentation
ii. Market targeting
iii. Market positioning
 Develop product extension such as peanuts, green peas or mixed nuts.
 Increase sales force or improve distribution system. They should assign own people to
monitor the performance of their distributors but ensuring that all markets are served and
demands are supplied immediately thus avoiding stock-outs.

References:

Reily (2004). Retrieved from http://www.brandchannel.com/brand_speak.asp?bs_id=94

Nissim (n.d.). Retrieved from http://www.brandchannel.com/papers_review.asp?sp_id=680

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