Competitive Review

Sardine sales began to expand as the category entered a period of strong

growth and development, and new categories have evolved in addition to the many
varieties of sardines. Initially, start-ups and enterprises like Mega Global Corporation,
the maker of Mega Sardines, developed brands for this product variety. For many years,
the most successful brands were acquired by major sardine companies, giving the
larger corporations a strong market position in this sector and diversification in easy-
open-can sardines in general. Sardines increased at an excellent rate, as backed by the
marketing expertise and budgets of the major sardine producers.

At one point, Mega Global Corporation’s Mega Sardines had one of the largest
fishing and canning capabilities in Asia, and one of the most popular canned sardine
brands in Asia, together with a competitor, Maunlad Canning Corporation’s Young’s
Town Sardines. The tightening supply-demand balance in markets for a variety of
species, together with a completely favorable view of economic growth over the next
few years, suggests that sardine demand will continue to grow rapidly.

The fragmentation of this category, combined with the domination of the market
leaders, has created a severely competitive environment. Although there is indirect
competition posed by all types of sardines (whether they are easy-open-cans or not),
this competitive analysis focuses on direct competition from leading sardine brands.
Sardine brands are either deliciously creamy and flavored, salty and sour, or flavored
and spicy. The right amount of tomato sauce and spices to enhance the delicious
flavors of the fish and create a point of differentiation.

The pricing of this product is consistent across brands and varies depending on
the type of retail location, with convenience stores charging more than grocery stores.
The cost of canned products is determined by the sardine brand. The Madla Canned
Goods Company’s Madla Sardines will focus on competition posed by flavor with a twist
(with peas). It will include the following:

 Mega Sardines: Started its operations in 1995 and the opened its first canning
plant in 1998, founded by William Tiu-Lim. Mega under the Mega Global
Corporation. Mega Sardines with the proposition of “freshest sardines in a
can” because of its trademark catching-to-canning process. Mega sardines
has 9 canned goods varieties—Mega Sardines in Tomato Sauce, Mega
Sardines in Tomato Sauce with Chili Added, Mega Sardines in Tomato Sauce
 with Chili Extra Hot, Mega Fried Sardines in Tausi, Mega Fried Sardines in
Hot and Spicy, Mega Sardines in Natural Oil, Mega Sardines in Spanish
Style, Mega Corned Sardines in Tomato Sauce and Mega Corned Sardines in
Tomato Sauce Chili Added. The brands’s tagline is “Improving Everyday, One
Meal at a time” and slogan, “Tatak Barko. Tatak Sariwa!” Despite its success,
Mega Global Corporation wanted further innovative by exploring new types of
packaging that is not the usual canned or bottled contained and by working
with the center, they have created an easy to open stand-up pouch or retort
pouch to store sardines. It has a presence of omega-3 oils, it has attracted
the middle and upper class markets. Every sardine is processed within 12
hours, allowing to retain its omega-3 oils, known to reduce the risk of
problems and also lowers blood cholesterol levels. It is sold in cans at a price
of 22 per can. It has 100 cans in one box. Mega Sardines also does not use
preservatives to retain its flavor and freshness. A calcium benefit that found in
tender fish bones and almost zero percent risk of having allergies. Its net
weight is 155 grams, has 5 pieces of sardines (78 grams). In texture and
taste, it has a strong flavor of fish, a little bit of sweetness and a little bitter.
Mega sardines has a sodium content, calories, carbohydrate, calcium, iron
and potassium. The Mega brand is the leading brand in the Philippines that
loves sardines with consumption pegged at roughly 100 million cans a month.
Innovating its product line and going into more export markets so that the
share of sales overseas will increase from the current level of just 5 percent,
and the rest coming from the Philippines.

 Young’s Town Sardines: Maunlad Canning Corporation started importing

Young’s Town Sardines in 1968 from Japan under the name of Earldon
Enterprises. This was changed to Lapaz Sales Center. The Maunlad Canning
Corporation is a Filipino brand that has stood the test of time because of its
dedication to the quality and taste of its products and its devotion to its
employees and its customers. It has four factories employing more than 2,000
people, with the fourth factory established in Zamboanga to supply the market
demand in Mindanao. Young’s Town Sardines have 2 varieties: Young’s
Town Sardines in Tomato Sauce (Green) and Young’s Town Sardines in
Tomato Sauce with Hot Chili (Red). The price of each can of Young’s Town
Sardines is 21 pesos. In one box, there are 100 cans. Sardines are rich in
omega-3 fatty acids, which reduce the occurrence of cardiovascular diseases.
Recent studies suggest that regular consumption of omega-3 fatty acids
reduces the likelihood of developing Alzheimer’s disease and may also help
lower blood sugar levels. It has omega-3 and lycopene. Its net weight is 155
 grams and it has 4 pieces of sardine (89.5 grams). In texture and taste, it’s
quite fishy, with many scales and a salty one. Young’s Town Sardines has
energy content, calories, fat ,sodium, carbohydrate and protein. Maunlad
Canning Corporation, with its Young’s town brand dominates this market with
its sales accounting for 26% of the market share.

Despite the strong competition, Madla Sardines is confident in its ability to

develop a relevant brand image and establish recognition among the targeted
segments. The brand offers strong points of differences with higher and unique vitamin
content. Madla Sardines with peas contain vitamins A, B, C, and E, as well as zinc and
other antioxidants. The components are 100% natural and support relevant social
issues. Madla Canned Goods Company is optimistic that, with other strategic assets, it
can develop a competitive advantage that will allow Madla Sardines to grow and
develop in the market.