2016 Senior Project on the impact of westernization in the Philippines.
Industry studyFull description
DISCLAIMER NOTE: ALL POWER POINT PRESENTED WAS MY DESIGN AND CONCEPT BUT MAJORITY OF THOSE INFORMATION AND FACTS ARE FROM THE BOOKS AND INTERNET. IF YOU NEED THIS COPY I WILL PROVIDE THIS TO…Full description
module in science
Passport: Study on noodles in the PhilippinesFull description
The national tourism policy adopted by the Congress stressed that ‘the State shall pursue, promote, manage and develop ecotourism anchored on sustainable development through environmental …Full description
This book shows the good relation of the Netherlands and the Philippines and their charity and good work towards our country, the Philippines.Full description
Infor on Death Penalty in the PhilippinesFull description
Market Research on Consumer Lifestyles in the Philippines
different herbal medicines in the philippines
Market Research on Skin Care in the Philippines
Tertiary Education in the PhilippinesFull description
Tertiary Education in the PhilippinesFull description
The presentation is about the Philippines Medicines Policy and its strategy of providing essential medicine in line with the goal of providing universal health care by the present administra…Full description
BISCUITS IN THE PHILIPPINES Euromonitor International March 2013
Sales of Biscuits by Category: Volume 2007-2012 ................................ ...... 4 Sales of Biscuits by Category: Value 2007-2012 ......................... ................ 4 Sales of Biscuits by Category: % Volume Growth 2007-2012 ...................... 4 Sales of Biscuits by Category: % Value Growth 2007-2012 ......................... 5 Biscuits Company Shares 2008-2012 .......................................................... 5 Biscuits Brand Shares 2009-2012 ................................................................ 5 Sales of Biscuits by Distribution Format: % Analysis 2007-2012 ............ ..... 6 Forecast Sales of Biscuits by Category: Volume 2012-2017 ........................ 7 Forecast Sales of Biscuits by Category: Value 2012-2017 ........................... 7 Forecast Sales of Biscuits by Category: % Volume Growth 2012-2017 ....... 7 Forecast Sales of Biscuits by Category: % Value Growth 2012-2017 .......... 8
BISCUITS IN THE PHILIPPINES HEADLINES Volume and value sales of biscuits set to grow by 5% and 8%, respectively in 2012
Biscuits continues to gain shares from chocolate confectionery
Sandwich biscuits expected to post fastest volume growth of 6% in 2012
Average unit price set to post 3% increase in 2012 Monde Nissin Corp to lead a 34% value share in 2012 Biscuits volume and constant value sales expected to increase at CAGRs of 5% and 4%, respectively over the forecast period
TRENDS Biscuits in the Philippines continues to compete with chocolate confectionery. Many consumers continue to consume biscuits, usually chocolate-coated biscuits, as a cheaper alternative to chocolate confectionery. Brands such as Choco Knots, Knick Knacks and Cubee tend to steal shares from brands such as Kit Kat and Gandour. Consumers tend to perceive biscuits as a cheaper snack alternative and better value for money compared to chocolate confectionery in the Philippines.
The biscuit category had a healthy value g rowth in 2012, thanks to the stable economic growth, increasing children and student population, new product launches, multimedia advertisements and higher unit prices. This registered value growth, set to be 8% in 2012, is the highest since the economic recession in 2009 owing to the better fiscal condition and improved disposable income. Sandwich biscuits is expected to experience the fastest volume growth of 6% in 2012. The low price positioning and strong distri bution through sari-sari stores of local brands such Jack „n‟ Jill Cream-O and Bingo continue to drive the growth of sandwich biscuits. Sandwich biscuits also tend to be a snack time favourites amongst both the young and old attributed to the long heritage of brands such as Bingo and Rebisco. The average unit price of b iscuits is expected to post a 3% current value increase in 2 012 due to general inflation, i ncreased cost of commodities and higher marketing costs. Biscuit ingredients are mainly locally sourced and hence prices were abl e to stay competitive. The average unit price growth was slightly higher than it was in 2011 d espite more stable oil prices in 2012. In 2012, plain biscuits experienced the slowest volume growth at 2%. The lack of innovation amongst plain biscuit manufacturers continues to make their brands lose out against sandwich biscuits and filled biscuit brands, where manufacturers continually innovate products and introduce new flavours. Cookies also experienced slow volume growth in 20 12 at just above 2%. The cookies industry is dominated by Chips Delight and Chips Ahoy!. The dominance of these two brands makes it difficult for new brands to enter the market and hence limits the growth of cookies. The impact of health and wellness continued to have a limited effect on biscuits. Most biscuit brands face the difficulty of changing t heir image from something tasty to something healthy. In addition, consumers who purchase biscuits do not tend to be very health conscious and price tends to hold greater weight when it comes to consumer purchasing decisions. Savoury biscuits and cracker brands have made the greatest effort to leverage on the health and
wellness trend. Starting in 2009, brands such as Sky Flakes and Rebisco have developed savoury biscuits and crackers out of whole wheat to provide consumers with a healthier alternative.
COMPETITIVE LANDSCAPE The Monde Nissin Corp is the leading biscuits brand manufacturer and is set to post a 34% value share in 2012, thanks to its wide product portfolio, popularity of its brands and continuous large investment on marketing and product innovation. The company had numerous multimedia advertisements in 2012 with about seven different television commercials promoting its various brands. Monde Nissin is one of the ol dest manufacturers of biscuits and is proven to be a producer of quality biscuit products. Its Sky Flakes brand is the main driver of its growth and the major contributor of its value sales.
Being the leading manufacturer of chocolate-coated biscuits, second ranked Universal Robina Corp registered the fastest value share growth in 2012 owing to the robust sales o f its Jack 'n' Jill brands. Its brands such as Choco Knots, Magic Flakes and Cream-O are all top performers their respective markets. Universal Robina is a leader in innovation. Its brands are also well advertised, enabling it to communicate the unique positioning or advantage of particular brand. For example, the Jack 'n' Jill Magic competes with Sky Flakes by providing more value for money, whilst the Jack 'n' Jill Cream-O is available in various flavours and is significantly cheaper compared to its foreign brand counterpart, Oreo. Jack 'n' Jill Drewberry is the first local biscuit with tasty and pasty fruity filling. Biscuit manufacturers continue to focus on improving its distribution and providing consumers with better value for money. Distribution through sari -sari stores continues to be an extremely important channel for brands as it assists in penetrating less developed provinces in the Philippines. Advertising was also heavily used amongst competitors to continuously remind consumers of brand availability. The top three biscuit companies in the Philippines are all domestically owned, namely Monde Nissin, Universal Robina and Republic Biscuit Corp. Together they will comprise a 69% value share in 2012. International players find it difficult to compete with these companies due to their extensive distribution networks and low price positions. In addition, domestic companies tend to have a better understanding of the local market. Universal Robina‟s Jack „n‟ Jill Filled Stix Nutty Choco Delight was one of the products launched in 2012. It is a chocolate-coated biscuit, filled with peanut butter. The brand uses a low price positioning, with a suggested retail price of Ps6 per package. The brand‟s target market is mainly children. The brand is able to compete both against biscuit brands and chocolate confectionery brands. In 2012, the brand was mainly distributed through hypermarkets and supermarkets.
Monde Nissin and Universal Robina were the most aggressive in advertising in 2012. Monde Nissin launched several campaigns for its different biscuit brands. These included its “This is your break” campaign for Sky Flakes. To compete, Un iversal Robina used famous celebrities to endorse its brands in TV commercials and print advertisements. Both manufacturers tend to compete for the same target market and needed to do aggressive marketing campaigns to gain or retain their market share. There have been no major trends for packaging innovation in the biscuits industry. The majority of manufacturers continue to use smaller, single-serve flexible packaging, containing 2-4 biscuits. This tends to be the preferred packaging format as it allows con sumers to purchase products as needed and lesser cash layout is necessary when making a purchase.
Distribution also becomes easier when using this packaging as it allows manufacturers utilise sari-sari stores.
Even in biscuits the standard and economy brands are the most saleable in the local market due to their affordability and also because these brands are able to maintain quality. The higher priced brands, though tasty, seldom achieve market leadership in various biscuit categories mainly because they are less affordable, have a limited market niche and are challenged by competition from cheaper biscuit products. In 2012, there was no private label brand yet present within biscuits.
PROSPECTS Competition between chocolate confectionery and biscuits is likely to intensify because both industries tend to target a similar market niche and use similar strategies to gain market share. Over the forecast period, both industries will be driven by innovation to keep consumers interested. Manufacturers are also li kely to restrict unit price growth to stay competitive.
Biscuits volume is expected to grow at a 5% CAGR over the forecast period, similar to what was experienced over the review period. Growth is likely to continue to come from consumers who purchase biscuits as a cheaper alternative to chocolate confectionery. Constant value growth is estimated to reach a 4% CAGR, about twice what was experienced over the review period. Higher average unit prices are expected to have the greatest effect on value growth due to the movement to smaller pack sizes. Smaller packages tend to be more expensive compared to larger packages when the price is compared in equal volumes. Sandwich biscuits is likely to experience the fastest volume growth at a 7% CAGR over the forecast period. Sales will be driven mainly b y its low price points and an improvement in distribution to provincial regions in the Philippines. As a result of this, plain biscuits and cookies are likely to suffer; these are expected to register volume CAGRs of 2% and 3%, respectively. The lack of innovation and the hi gher price position of brands in plain biscuits and cookies are likely to make it difficult for them to compete with sandwich biscuits. The average unit price of th e biscuits is expected to decline at a constant value CAGR of -1% due to stiffer competition. Leading manufacturers such as Monde Nissin and Universal Robina are likely to use a lot of sales promotions to encourage purchases. The development of cheaper local brands is also likely to keep average unit prices low. The key distribution channels for biscuit products are likely to see negligible change over the forecast period. Other grocery retailers is likely to contribute to a majority of the sales due to the high dependence of manufacturers on using sari-sari stores to reach less developed areas of the Philippines. Hypermarkets and supermarkets are also likely to continue to grow due to the expansion of key grocery retailers such as SM, Puregold and Robinsons. Marketing activities are likely to remain unchanged over the forecast period. TV commercials and print advertisements should remain the main sources of information for consumers. However, use of social networking site advertising and independent blog reviews is becoming more prevalent. Manufacturers are also likely to continue using in -store sales promotions to encourage impulse purchases amongst consumers. Jack „n‟ Jill Filled Stix Nutty Choco Delight is likely to have limited growth over the forecast period. The new development does not really have any distinct differentiation compared to its competitors. There are numerous brands that compete for the same market that Jack „n‟ Jill Filled Stix Nutty Choco Delight is targeting. In addition, it is likely that other manufacturers will develop similar or better products in the future.
Monde Nissin Corp Monde Nissin Corp Monde Nissin Corp Kraft Foods (Philippines) Inc Grand Alphatech International Corp Martinez & Co Inc, Felicisimo Delfi Foods Philippines Inc Monde Nissin Corp Republic Biscuit Corp Kraft Foods (Philippines) Inc Kraft Foods (Philippines) Inc Campbell Soup Co Commonwealth Foods Inc Monde Nissin Corp Meiji Seika Kaisha Ltd Loacker SpA, A Kraft Foods Inc Croley Foods Mfg Corp Meiji Holdings Co Ltd First Choice Food Corp Kraft Foods (Philippines) Inc Kraft Foods (Philippines) Inc Meiji Seika Kaisha Ltd Metro Biscuit Corp Monde Nissin Corp Nestlé Philippines Inc
Chips Delight La Pacita Knick Knacks Cubee Frooteez Tiger Chips Ahoy! Arnott's Fibisco MY San Grahams Hello Panda Loacker Ritz Sunflower Yan Yan BluSkies Nabisco Ritz Yan Yan Marie Nuggets Knick Knacks Others Total
4.7 3.6 3.5 2.8
4.7 3.8 3.5 2.9
4.6 3.9 3.6 3.0
4.5 4.0 3.6 3.0
2.4 1.9 1.1
2.5 2.0 1.7
2.4 2.1 1.8
2.4 2.1 1.8
1.6 1.1 1.0 0.4 0.3 0.4 0.3 0.1 2.6 -
1.4 1.0 1.0 0.3 0.3 0.3 0.2 0.1 -
1.4 1.0 1.0 0.3 0.3 0.3 0.2 0.1 -
1.4 1.0 0.9 0.3 0.3 0.3 0.2 0.1 -
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Sales of Biscuits by Distribution Format: % Analysis 2007-2012
% retail value rsp
Store-Based Retailing - Grocery Retailers -- Supermarkets -- Hypermarkets -- Discounters -- Small Grocery Retailers --- Convenience Stores --- Independent Small Grocers --- Forecourt Retailers -- Other Grocery Retailers - Non-Grocery Retailers -- Health and Beauty