1
This Market Study on Dielle’s Apiary and Meadery Enterprises was submitted on September 12, 2010 as part of the e!uirements in TM 20" Te#hnolo$y Te#hnolo$y Marketin$ and %ommer#iali&ation This 'ndustry Study was #ondu#ted by
JOSIE D. ALBAO DANILO M. GACUSAN MARIA JUDITH L. SABLAN HECTOR M. TIBO
under the super(ision of )rof* Edison D* %ru&
Masters in Te#hnolo$y Te#hnolo$y Mana$ement Te#hnolo$y Te#hnolo$y Mana$ement %enter +ni(ersity of the )hilippines, Diliman, ue&on %ity
TABLE OF CONTENTS
2
)a$e %o(er )a$e Table of %ontents -ist of A#ronyms -ist of Tables -ist of .i$ures
2 3 4 5 6
I.
Executie Su!!"#$
%
II.
I&t#'(ucti'&
)
III.
Cu##e&t M"#*et Situ"ti'&
+3
A* * %* D* E*
1 13 14 20 22
I,.
,.
, I.
,II.
Market /(er(iew S/T Analysis %ompetiti(e and 'ndustry Analysis )rodu#t /(er(iew 5eys to Su##ess and %riti#al 'ssues
E&i#'&!e&t"- A&"-$i
23
A* * %*
2 2" 24
Ma#ro En(ironmental .a#tors Mi#ro En(ironmental .a#tors %ompetiti(e Strate$y
M"#*eti&/ St#"te/$
20
A* ** %* D*
27 27 27 27
Marketin$ /b6e#ti(es .inan#ial /b6e#ti(es )ositionin$ Strate$y Summary
M"#*eti&/ Mix
31
A* * %* D* E* .*
0 1 1 1 1 2
)rodu#t )ri#in$ )romotion %hannel Ser(i#e 'nternal Marketin$
M"#*eti&/ Ree"#c
,III. Fi&"&ci"-
A* * %* D*
Sales8e(enue .ore#ast9s: Marketin$ E;pense ud$et9s: reak = E(en Analysis )rofit and -oss Analysis
32 33
< > >
2
)a$e %o(er )a$e Table of %ontents -ist of A#ronyms -ist of Tables -ist of .i$ures
2 3 4 5 6
I.
Executie Su!!"#$
%
II.
I&t#'(ucti'&
)
III.
Cu##e&t M"#*et Situ"ti'&
+3
A* * %* D* E*
1 13 14 20 22
I,.
,.
, I.
,II.
Market /(er(iew S/T Analysis %ompetiti(e and 'ndustry Analysis )rodu#t /(er(iew 5eys to Su##ess and %riti#al 'ssues
E&i#'&!e&t"- A&"-$i
23
A* * %*
2 2" 24
Ma#ro En(ironmental .a#tors Mi#ro En(ironmental .a#tors %ompetiti(e Strate$y
M"#*eti&/ St#"te/$
20
A* ** %* D*
27 27 27 27
Marketin$ /b6e#ti(es .inan#ial /b6e#ti(es )ositionin$ Strate$y Summary
M"#*eti&/ Mix
31
A* * %* D* E* .*
0 1 1 1 1 2
)rodu#t )ri#in$ )romotion %hannel Ser(i#e 'nternal Marketin$
M"#*eti&/ Ree"#c
,III. Fi&"&ci"-
A* * %* D*
Sales8e(enue .ore#ast9s: Marketin$ E;pense ud$et9s: reak = E(en Analysis )rofit and -oss Analysis
32 33
< > >
3
I.
.
C'&t#'-
36
A* * %*
" << <<
'mplementation Marketin$ /r$ani&ation %ontin$en#y )lannin$
Bi Bi-i'/#"$
46
LIST OF ACRONMS
4
DA 7 Department of A$ri#ulture DOST 7 Department of S#ien#e and Te#hnolo$y DOST 7 SETU8 9 Department of S#ien#e and Te#hnolo$y Te#hnolo$y = Small and Medium
Enterprises Te#hnolo$y Te#hnolo$y +p$radin$ )ro$ram DOT 7 Department of Tourism DTI 9 Department of Trade and 'ndustry FIES 9 .amily 'n#ome and E;penditure Sur(ey IFE 7 'nternational .ood E;hibition ISO 7 'nternational /r$ani&ation for Standardi&ation MSME 7 Mi#ro, Small and Medium Enterprises
Te#hnolo$y eek NST: 7 ?ational S#ien#e and Te#hnolo$y 8AGASA 8AGASA 7 )hilippine Atmospheri# @eophysi#al and Astronomi#al Ser(i#es
Administration 8IFBE 7 )hilippine 'nternational .ood and e(era$e E;po SM 7 Shoemart
Te#hnolo$y 'nformation 'nstitute STII 7 S#ien#e and Te#hnolo$y TA8I 7 Te#hnolo$y Appli#ation and )romotion 'nstitute U8LB 7 +ni(ersity of the )hilippines -os anos URC 7 +ni(ersal obina %orporations USCB 7 +nited States %ensus ureau :SA8 7 ine and Spirits Asso#iation of the )hilippines
LIST OF TABLES
5
T"-e +. )ri#es of Some -o#ally )rodu#ed ines in the )hilippines T"-e 2. Sales .ore#ast from 2011 to 201 T"-e 3. Marketin$ E;pense ud$et T"-e 4. reakE(en Analysis T"-e 5. )rofit and -oss Analysis T"-e 6. Marketin$ Strate$y 'mplementation )lan
LIST OF FIGURES
Fi/u#e +. )hilippine 'mports of ine in 2004 by Bolume )er#enta$e
6
Fi/u#e 2. @rowth of )hilippine 'mports of ine by Balue Fi/u#e 3. )orter’s .i(e .or#es Model in Dielle’s Apiary and Meadery Fi/u#e 4. Different Bariants of Dielle’s Coney ine Fi/u#e 5. Coney ine Balue %hain Analysis
I.
EECUTI,E SUMMAR
This marketin$ plan for Dielle’s Apiary and Meadery honey wines was prepared usin$ the key in$redients of the marketin$ mana$ement pro#ess that #an $uide marketin$ a#ti(ities* The first part in(ol(ed s#annin$ the #urrent
7
marketin$ situation* This was done by analy&in$ market demo$raphi#s, trends, and needs #ondu#t of S/T analysis a )hilippine wine industry study o(er(iew of the produ#t and identifi#ation of keys to su##ess and #riti#al issues* 't was presented that the )hilippines was able to establish a lo#al wine industry despite bein$ a non$rower of $rapes utili&in$ the abundan#e of lo#al fruits and other indi$enous a$ri#ultural resour#es su#h as #o#onut, ri#e, and others* An Australian analysis of the )hilippine wine market re(ealed a $rowin$ wine demand at a rate of 10 per#ent from 2002004 with 1< per#ent of its 71 million population #onsumin$ wine at a per #apita of a tablespoon 93* m-:* The #onsumers of wine in the #ountry are mostly workin$ men and women belon$in$ to the middle to hi$h in#ome bra#ket and many of whom are youn$ urban professionals* This market se$ment is the tar$et #onsumers of honey wine* The produ#ts #an be better alternati(e to imported wines and other indi$enous wines* The se#ond part #entered on the analysis of the en(ironment ma#ro and mi#ro and dis#ussion of the #ompetiti(e strate$y to be used* The hi$hli$hts of the en(ironmental analysis showed that the prin#ipal dri(ers of wine #onsumption in the world are tradition, #ulture, lifestyle and health, and e#onomi# status* Also, it showed that a dire#t relationship e;ists between population and wine #onsumption* .inan#ial #apability was also shown to be a fa#tor in wine #onsumption* A re#ent te#hnolo$i#al breakthrou$h that uses immobili&ed #ells of Hansenula anomala in the produ#tion of mead #apable of shortenin$ mead produ#tion #y#le was identified* There are also two key )hilippine le$islations that presented that dire#tly affe#t the wine industry the e(ised Sin Ta; ill or epubli# A#t 7< and the etail -iberali&ation ill* A 7< imposes a )h)13*<3 ta; per liter for wines with 1< al#ohol by (olume and below 9where Dielle’s wines are #ate$ori&ed:* The latter law enabled forei$n retailers to enter the wine industry resultin$ in the in#rease of wine retail outlets in the #ountry and en#oura$ed the entry of more imported wines in the #ountry* %onse!uently, indi$enous )hilippine wines fa#e stiff #ompetition from these imported wine brands* The )hilippines bein$ a typhoonprone #ountry is identified as a #riti#al fa#tor that #an affe#t produ#tion of honey wine* .ruits and honey supply are hi$hly (ulnerable to ad(erse weather #han$es* ?e;t, a marketin$ strate$y was laid down #onsistent with the firm’s $oal to make a stron$ and su##essful business of honey wine produ#tion in the )hilippines and e(entually establish an e;port market for another !uality produ#t that is proudly F)inoyG* The marketin$ ob6e#ti(es in#lude the followin$H
8
• • •
populari&in$ honey wine #onsumption in the )hilippines, in#reasin$ its lo#al market penetration, and positionin$ the produ#t as midpri#ed e;oti# health wine that is fit to workin$ men and women and youn$ urban professionals*
.inan#ial ob6e#ti(e on the other hand is $eared towards the in#rease of sales and profit of the firm by 200 in 2011* The marketin$ strate$y #rafted will be a low #ost strate$y at the onset based on the pro6e#ted fis#al position of the firm but will $radually shift to betterfunded a#ti(ities as the firm establishes its foothold in the industry* Su#h strate$ies will emphasi&e laun#hin$ a si$nifi#ant presen#e in the world wide web throu$h the (arious media a(ailable su#h as so#ial networkin$ that are basi#ally free ad(ertisement* 't will also in#lude publi#ation of produ#t bro#hures parti#ipation in lo#al e;hibit, trade fairs, and food e;positions sponsorship of wine appre#iation e(ents for media people appearan#es in national t( pro$rams produ#t tours produ#t (isibility in bartendin$ #ompetitions and networkin$ with pri(ate #ompanies* A marketin$ mi; was de(eloped utili&in$ the >)s strate$y* The produ#t will be presented as a better alternati(e to imported and indi$enous wines* )a#ka$in$ and labellin$ should suit the produ#t’s ima$e and should appeal to the tar$et market se$ment, mostly #omprised by dis#riminatin$ and intelli$ent #onsumers* Deri(ation of pri#e is based on the produ#t’s hi$h (alue due to the presen#e of honey its main in$redient that distin$uishes it from its #ompetitors* The pri#e should not be established within the ran$e of its nearest #ompetitor lo#al fruit wines but within the midpri#ed wines offered by imported brands* The #hannel of distribution was #arefully e(aluated based on the positionin$ of the produ#t, hen#e, it is deemed proper to market them initially in three ma6or #itiesH Metro Manila, %ebu, and Da(ao and leadin$ tourist destinations like ora#ay and %amarines Sur* The wines will be sold in ma6or wine stores like alph’s ine and Spirits, sele#ted > star hotels and restaurants, and bi$ malls like SM* 'n support of all this identified marketin$ mi;, Dielle’s should stri(e to firm up its or$ani&ation by buildin$ a workin$ en(ironment that would allow its workers and staff to partake in the #reati(e pro#ess of produ#in$ honey wine and in puttin$ up a $ood ima$e within that #an be translated to #onsistent !uality produ#ts* Marketin$ resear#h was done usin$ se#ondary data* Studies showed that .ilipino wine #onsumers are partial to drinkin$ white wine, but has shown in#reasin$ patrona$e of red wine e#hoin$ the so#alled F.ren#h )arado;G* Also, pri#e is the main #onsideration of .ilipinos’ wine buyin$ de#ision* These #onsiderations are wei$hed in the li$ht of honey wine bein$ an e;oti# health wine and a no(elty produ#t bein$ its #ompetiti(e ad(anta$e*
9
A finan#ial analysis was presented that in#luded a sales fore#ast, profit and loss analysis, marketin$ e;pense bud$et, and breake(en analysis* The a(era$e bud$et #omputed for marketin$ e;pense is 1< per#ent, whi#h is e;pe#ted to pro(ide an a(era$e #ontribution mar$in of )h)>* Million o(er a period of three years* Dielle’s a(era$e pro6e#ted profit in three years is #omputed at )h)2*3 Million $i(in$ it suffi#ient leeway to fund implementation of a modest but effe#ti(e marketin$ plan* The #omputation showed that an effe#ti(e marketin$ plan is essential to the reali&ation of the finan#ial ob6e#ti(es of the firm* %ontrols is the last se#tion of the marketin$ plan* 't in(ol(es the implementation plan, identifi#ation of the need for a marketin$ or$ani&ation inside the firm to undertake the plan, and the #ontin$en#y measures that should be in pla#e to ensure that the plan is on tra#k to meet the marketin$ ob6e#ti(es of Dielle’s* The marketin$ milestones were shown to be hi$hly possible throu$h the #ondu#t of the (arious a#ti(ities as embodied in the a#tion plan*
II.
INTRODUCTION
Why Dielle’s? This paper analyzes Dielle’s Apiary and Meadery Enterprises in the context of the marketing concepts in TM 206 (Technology Marketing and ommercialization!" The gro#p selected Dielle’s Apiary and Meadery Enterprises for the market st#dy $eca#se of the #ni%#eness of its prod#cts& ha'ing $ig potential to gain local market leadership and glo$al competiti'eness" Dielle’s does not ha'e a concrete marketing strategy at present&
10
making it an ideal firm for the market st#dy" The market plan de'eloped can $e adopted and #sed $y the firm to realize its goals and o$ecti'es" The firm Dielle’s is c#rrently the only prod#cer of honey )ine in the *hilippines" +t is o)ned $y Mr" ,#ke Maca$a$$ad and located in ,a'ender -treet& .arangay T#nasan& M#ntinl#pa ity" The $#siness )as started in 200/& $#t )as only registered in 200" Dielle’s has $een prod#cing fo#r 'ariants of honey )ine& namely1 traditional& mango& d#hat& and $ignay" The main prod#ct of the firm is honey& deri'ed from Dielle’s o)n apiary" Incremental innovation through DOST The o)ner )anted to increase its prod#ction capacity in order to s#pply the increasing demand and later& a$le to export the prod#ct to other co#ntries like apan and 3orea" +t is for this reason that the o)ner applied for assistance from the Department of -cience and Technology4-mall and Medi#m Enterprises Technology 5pgrading *rogram (-ET5*! in 200" +ncremental inno'ation )as pro'ided in the form of the 20 #nits ageing tanks and packaging and la$elling assistance thro#gh the *ackaging 7esearch and De'elopment enter (*7D! #nder the +nd#strial Technology and De'elopment +nstit#te" This )ill hasten and increase the prod#ction 'ol#me of the firm and also spice #p the prod#ct’s o'erall look" Purpose, goals, and obectives of the mar!et plan The p#rpose of the paper is to steer Dielle’s to)ards a more acti'e and aggressi'e concrete marketing strategy that )ill ena$le it to strengthen its position in the local )ine ind#stry and achie'e greater le'els of profita$ility for the next three years" +ncrease in sales and profit of the firm $y 2008 in 20// is desired" +t )ill e'ent#ally ena$le the Dielle’s to compete in the market that is dominated $y foreign $rands" The #ltimate goal is to make a strong and s#ccessf#l $#siness of honey )ine prod#ction in the *hilippines and e'ent#ally esta$lish a glo$al market of a prod#ct that is pro#dly 9*inoy:" The paper foc#sed on the follo)ing specific o$ecti'es1 • • • •
To introd#ce and pop#larize honey )ine cons#mption in the *hilippines; To increase local market penetration of honey )ine; To enter the export market; and& To expand the $#siness"
Sections of the mar!et plan The Marketing *lan is organized into se'eral sections" The first section deals )ith scanning the c#rrent market sit#ation" A detailed -<=T analysis is presented to e'al#ate
11
Dielle’s capa$ility as a firm and )eigh its readiness& partic#larly in competing in the )ine ind#stry that is c#rrently dominated $y foreign $rands" *rimary data )ere o$tained thro#gh the cond#ct of inter'ie) )ith the o)ner and physical 'isit to the prod#ction site" *orter’s >al#e hain model )as highly effecti'e in o#r analysis and in the preparation of the market plan" The maor market segment identified for honey )ine incl#des )orking men and )omen $elonging to the middle to high income $racket and many of )hom are yo#ng #r$an professionals" To#rists and bali!bayans are also target markets" The second section analyzes the macro4 and micro4en'ironment affecting the firm and the recommended marketing strategy" -e'eral factors )ere in play that affects Dielle’s 4 either in a positi'e or negati'e )ay" ,egal iss#es& policies& technology& and conditions )ere disc#ssed" There )ere se'eral methods #sed in order to pro'ide a thoro#gh analysis of the sit#ation" Data )ere gathered and o$tained from 'ario#s references incl#ding $ooks& o#rnal articles& related market st#dies& direct connections& and the internet" The identified $est competiti'e strategy for Dielle’s is to $e a niche marketer $eca#se it )ill achie'e high margin" A lo)4cost strategy )as crafted $ased on the proected fiscal position of the firm& $#t the strategy )ill grad#ally shift to more the firm esta$lishes its foothold in the ind#stry" -ection three presents the marketing mix& )hich )as de'eloped #tilizing the ?*s strategy" -econdary data )ere o$tained& analyzed& and #sed to come #p )ith the plan and recommendations" Dielle’s honey )ine )as presented as a $etter alternati'e to imported and indigeno#s )ines" This is some)hat one of the most diffic#lt sections of the plan $eca#se it )ill essentially determine and dictate ho) the prod#ct )ill $e positioned in the market to in order to achie'e the desired o$ecti'es" -econdary research d ata )ere st#died and methods and strategies applica$le to Dielle’s )ere adopted for the plan"
+n the fo#rth section& financial analysis )as presented )herein sales and profit )ere calc#lated $ased from ass#mptions res#lting from the marketing implementation" The comp#tation sho)ed that an effecti'e marketing plan is essential to the realization of the financial o$ecti'es of the firm" The last section of the plan is the ontrols )herein the implementation and the control mechanisms )ere presented aimed at ens#ring that the desired res#lts are achie'ed incl#ding the contingency meas#res to ens#re s#ccess" Milestones )ere like)ise ta$led to g#ide the firm" "imitations and #ecommendations The market plan presented in this paper is $asically an analysis of Dielle’s Apiary and Meadery Enterprises and solely applica$le for the said firm" The plan does not
12
pro'ide a thoro#gh re'ie) of the channels s#ch as penetration in s#permarkets d#e to limited time to gather or inter'ie) managers or high ranking official from -M hypermarket or 7o$inson’s grocery" A s#pporting doc#ment on ho) to penetrate $ig s#permarkets or ho) to attract ne) retailers can $e added to the plan" This market plan deals only )ith direct marketing programs& $#t does not disc#ss indirect iss#es that affect prod#ct retail or other iss#es like infrastr#ct#re impro'ement and technology ac%#isition as conse%#ence of expansion"
III.
CURRENT MAR;ETING SITUATION A. M"#*et Oe#ie<
1* Market Demo$raphi#s and ?eeds The )hilippines, with a population of 71 million, has been a beer #onsumin$ #ountry by tradition, due to e;isten#e of domesti# breweries su#h as San Mi$uel rewery 'n#*, Asia rewery, Tanduay Distillers, and Distileria -imtua#o* A##ordin$ to the 200" .amily 'n#ome and E;penditure Sur(ey 9.'ES: an a(era$e .ilipino family spends 0*3 per#ent of its in#ome on al#oholi# be(era$es*
13
-o#al #onsumers of wine $enerally #omprise 121> per#ent of the population, mostly the upper and middle in#ome #lasses from Metro Manila, and the other key pro(in#ial #ities like %ebu and Da(ao and tourist areas like ora#ay* The le$al a$e for drinkin$ al#oholi# be(era$es in the )hilippines is 14 years old* Cowe(er manufa#turers of wine and al#oholi# be(era$es are now e;pandin$ their market to women and youn$ urban professionals as they in#reasin$ly ha(e the predisposition the money and the in#lination to spend on al#oholi# drinks* The risin$ number of youn$ #onsumers and women 6oinin$ the workfor#e makes the wine market promisin$ in the )hilippines* This same market se$ment will also be the tar$et of Dielle’s* Al#oholi# drinkin$ is a bi$ part of the .ilipino merrymakin$ a#ti(ities* 'n the )hilippines drinkin$ is more a##eptable amon$ $irls than smokin$* ?e(ertheless it is still the #ase that it is #onsidered more appropriate for men than for women to drink* @enerally the lo#al #onsumers of wine #omprise 121> per#ent of the population, mostly the upper and middle in#ome #lasses from Metro Manila, and the other key pro(in#ial #ities 9%ebu and Da(ao: and tourist areas 9ora#ay:* The #ountry relies hea(ily on imported wines from +SA, Australia Spain, Australia, .ran#e, %hile and South Afri#a to name a few* 'n 2004, total wine imports of the )hilippines $rew to ",>>2,3>4 liters, worth o(er I12* million in (alue a leap of 1"*3 per#ent in (olume and 0*7 per#ent in dollar (alue from that of 2003* 9.i$ure1*:
14
Philippine Imports of Wine in 2008 By Volume Percentage
38%
33%
12% 17%
United States Spain Australia Others
Fi/u#e +. )hilippine 'mports of ine in 2004 by Bolume )er#enta$e
9Sour#eH @lobal A$ri#ultural 'nformation ?etwork eport 7024, +SDA:
Ei$hty per#ent of imported wines are marketed in Metro Manila* The remainin$ twenty per#ent are #onsumed in hi$hend restaurants in %ebu, ora#ay and Da(ao, these are hi$hly populated tourist areas, while lo#al produ#ers and manufa#turers #on#entrate on their hometowns for distribution of their produ#t* There are no domesti#ally produ#ed $rape wines in the )hilippines* Despite the la#k of ability to $row $rapes .ilipinos still #an use (arious lo#al fruits in makin$ wines* @i(en that fruits are abundant readily a(ailable and ine;pensi(e se#urin$ #onsistent and low#ost supply to the )hilippine fruit wine industry is hi$hly feasible* The lo#al wine industry, when de(eloped fully, #an be a better substitute for imported wines and it #an sa(e the #ountry a lot of dollars* 2* Market Trends and Tar$et Market @rowth
15
@lobal wine industry has be#ome in#reasin$ly internationali&ed and sophisti#ated o(er the past twenty years* At the same time, the market has also be#ome more fra$mented, multilin$ual, and informationintensi(e* @lobal wine showed solid $rowth in terms of (olume in re#ent years rea#hin$ nearly 2>*0"" million liters* 9.lorian %e#il Torres Cow .lows the ine 'ndustry /#tober 2003:* The two leadin$ #ountries in international wine produ#tion and #onsumption are .ran#e and 'taly* More than three!uarters of the (olume of world wine produ#tion #onsumption and trade in(ol(e Europe and the rest in(ol(es 6ust a handful of ?ew orld #ountries like +nited States and Australia* The Asian market is also #ompetin$ in the wine industry* 'n Southeast Asia, the prin#ipal $rowth #ountries are Sin$apore, 'ndonesia, Malaysia, Thailand, and the )hilippines with $rowth rate ran$in$ from 10 to 20 per#ent for the ne;t fi(e years* hile the total wine market in the )hilippines is small in #omparison to other Asian #ountries, demand is #ontinually $rowin$* ud$et to midran$e pri#ed wines are the most popular as pri#e is an issue for the ma6ority of the #onsumers* The emer$in$ )hilippine wine market #ontinues to e;pand, with sales rea#hin$ I1>*" million and a (olume of 1< million liters in 2004, up by 20 per#ent from the year before* This represents a 100 per#ent in#rease o(er sales in 2002 and a 200 per#ent in#rease o(er sales in 1774* The +*S* o(ertook .ran#e in 2000 as the lar$est e;porter of wines to the )hilippines and still holds that title today* Balued at I>*< million in 2004, +*S* wine e;ports to the )hilippines marked a si$nifi#ant 2> per#ent in#rease o(er the pre(ious year, with (olumes a##ountin$ for <*" million liters* The +nited States is the top supplier, a##ountin$ for one third of total (olume, followed by Spain 92* million liters: and Australia 91*" million liters:* 9.i$ure 2:
16
Fi/u#e 2. @rowth of )hilippine 'mports of ine by Balue
9Sour#eH @lobal A$ri#ultural 'nformation ?etwork eport 7024, +SDA: There has been a noti#eable shift to wine in the past few years, as there is an in#rease in wine appre#iation and #onsumption* The health benefits of wine was first dis#o(ered and spread in the 1770’s after studies on the F.ren#h )arado;G was reported* Studies re(ealed that mortality le(els pro(oked by #oronary artery disease are mu#h lower in .ran#e than in other industriali&ed #ountries e(en thou$h the #onsumption of fats is mu#h the same and blood #holesterol le(els are $enerally hi$her* Justifiably, this is be#ause .ren#h #onsidered red wines staple in their diet* ein$ a tropi#al #ountry, .ilipinos preferred #hilled white wine o(er red wine* Cowe(er red wine’s popularity sur$ed followin$ its low introdu#tory pri#es #ompared to white wines* The )hilippines’ total red and white still wines importation is 74 of total wines imported* 9www*austrade*$o(*au8 ine to the )hilippines: )rin#ipal dri(ers of $rowth in )hilippine wine #onsumption are lifestyle and health makin$ brandy, $in, and beer the ma6or #ompetitors of wine* The health #ons#ious for instan#e are swit#hin$ from brandy to wines* omen are also an important market as they find wine to be more a##eptable al#oholi# be(era$e than beers* The $rowth of the lo#al tourism industry in the past years tri$$ered in#rease in wine demand* Tourists #onsume wine in some fine dinin$ restaurants and hi$hend drinkin$ establishments, in#ludin$ wine bars, bars and entertainment outlets* ?i$ht#lubs #an be a key distribution #hannel for imported
17
wines* These outlets #ommonly sell house wines 9pourin$ wines: and bottles ran$in$ from standard wines throu$h premium !uality /ld orld and ?ew orld wines* The )hilippines started on shippin$ small !uantities of fruit wines to Japan and other Asian #ountries, a##ordin$ to the Department of A$ri#ulture 9DA:* )hilippine tropi#al fruit wine has a better #han#e of $ainin$ patrona$e if it is marketed as an e;oti# produ#t* %urrently, there is a number of tropi#al fruit wines readily a(ailable in the #ountry, su#h as duhat, $uyabano, and man$o* A##ordin$ to a study from Euromonitor 'nternational, the total (olume of wine sales in 2004 in the )hilippines in#reased by ei$ht per#ent, whi#h translates to around 11 million litres* 'n terms of (olume, fore#asts for wine sales from Euromonitor indi#ate a positi(e $rowth of between 11*4 per#ent to 1>*1 per#ent litres from 2007 to 201*
B.
S:OT A&"-$i
Coney wine is new and unpopular in the )hilippines and in most Asian #ountries* Coney wine is more popular in %hina, @ree#e, Spain, @ermany, Ethiopia, and the alkan #ountries* Dielle’s Apiary and Meadery Enterprises is therefore fa#ed with many #hallen$es in produ#in$ and marketin$ the honey wine in the )hilippines* elow is the summary of the S/T analysisH +. St#e&/t
-o#al #ompetition is not ti$ht sin#e Dielle’s is the only honey wine and honeyfla(oured wine produ#er in the #ountry )rodu#t has world#lass pa#ka$in$ materials The owner produ#es its own honey whi#h is the most important raw material of the produ#t As member of the ee 5eepers Asso#iation of the )hilippines firm is assured of steady supply of honey Stron$ te#hni#al support from $o(ernment 9D/ST, DA, +)-: in#ludin$ produ#t de(elopment 2. :e"*&ee •
Coney wine is new in the )hilippines hen#e, marketin$ #ould be diffi#ult
18
•
•
• •
Te#hnolo$y problem spe#ifi#ally on the la#k of suitable stora$e system that #ould re$ulate temperature to ensure that the wine will not turn to (ine$ar* )a#ka$in$ materials like bottles, #orks, and shrink #aps are imported from other #ountry The firm’s produ#ts are pri#ed hi$her due to the hi$h pri#e of honey The firm does not ha(e a #on#rete marketin$ plan
3. O'#tu&itie •
•
•
•
)ro(ide additional li(elihood due to possible in#rease of lo#al honey produ#ers and farmersuppliers of bignay , duhat, and other fruits )ossibility of e;portin$ the produ#ts sin#e there are only few honey wine produ#ers in the world @rowin$ lo#al tourism industry will likely in#rease the demand for wine 'nternational re#o$nition of our home$rown fruit wines #ould also boost the marketability of honey wine and honeyfla(ored fruit wines Coney farm owners #an (enture to produ#tion of honey wine on#e an e;port established market @rowin$ number of women in the workfor#e and urban youn$ professionals @rowin$ number of health#ons#ious people
4. T#e"t •
•
•
C.
)hilippines is a typhoonprone #ountry and apiaries where honey are produ#ed are hi$hly (ulnerable De#rease in lo#al tourism $rowth due to the hosta$etakin$ in#ident in Au$ust 2, 2010 )rolon$ed world e#onomi# re#ession
C'!etitie "&( I&(ut#$ A&"-$i
1* %ompetiti(e En(ironment Mead is diffi#ult to find #ommer#ially* 't is in this ba#kdrop that Dielle’s Apiary and Meadery de(eloped the produ#t* Dielle’s is presently the lone produ#er of mead or honey wine and its fruit (ariants in the )hilippines*
19
.or the purpose of #omin$ up with this marketin$ plan, Dielle’s produ#t will be #ompared with fruit wines produ#ed in the )hilippines* Amon$ the known fruit wine produ#ers in the #ountry are Mi6iah Tropi#al .ruit ines, .ederi#o’s i$nay ine, and +)- .ood S#ien#e %luster* Mi6iah is now a wine e;porter* ines from these produ#ers are $enerally pri#ed )h)2>0*00 to )h)00*00 per 3>0 m- bottle* Table 1 shows the pri#es of other lo#allyprodu#ed fruits wines in the )hilippines*
T"-e +. S'!e L'c"--$ 8#'(uce( :i&e i& te 8i-ii&e Re/i'&=8#'i&ce >ue?'& @ L"/u&"
C'#(i--e#" I-'c' Re/i'&
C"/"$"& Be&/uet C"ite
:i&e T$e
-ambano$ 9300m-: Man$o wine 9300m-: Duhat wine 9300m-: i$nay wine 9300m-: Tapuy or ri#e wine 93>0m-: asi or su$ar #ane wine 93>0m-: Duhat wine 93>0m-: -ayaw 9#orn spirit: Tomato wine Strawberry wine #herry wine rewed #offee wine 93>0m-:
E;istin$ or new firms #an easily enter into the #ompetition of honey wine produ#tion* ein$ the pioneer howe(er, Dielle’s has a distin#t ad(anta$e be#ause it has already perfe#ted the te#hnolo$y of honey wine produ#tion in se(en years* Moreo(er, Dielle’s is produ#in$ its own honey* .ruits like man$o, duhat , and bignay are abundant when they are in season* Dielle’s #ould #hoose to introdu#e fruit fla(ours to their mead in a##ordan#e with the seasonal a(ailability of these fruits* 'ntrodu#in$ other (ariants su#h as guyabano, jackfruit , and e;oti# herbs #an be made the sub6e#t of further produ#t de(elopment*
20
+sin$ )orter’s .i(e .or#es model, .i$ure below shows a summary of the #ompetiti(e en(ironment of Dielle’s*
21
-A
Dielle’ s Apiary !ead ery is the l"ne pr"du #er "$ h"ney &O! ines in the A #"untr :); y A; ;DUS
)A O= ;: ;A; S
&"nsid erin, the per#ei* ed )A health O= (ene/t SU-S s "$ U $ruit ODU& ine+ S there are l"ts "$ su(stit utes li.e $ruit ui#es+ $ruit teas+ et#
Fi/u#e 3. )orter’s .i(e .or#es Model in Dielle’s Apiary and Meadery
22
D.
8#'(uct Oe#ie<
Mead or honey wine produ#ed by Dielle’s is an al#oholi# be(era$e made from honey and water with fruit fla(ours (ia fermentation of yeast* There are four produ#t (ariants namelyH traditional mead whi#h is made from premium honey, man$o mead, duhat mead, and bignay mead* The produ#ts are #ate$ori&ed as fruit wines be#ause it has 12 al#ohol #ontent* The wines are bottled in <00mele$ant bottles* )ri#e ran$es from )h)230 to )h)240 per bottle* The wines are re$istered on .AD 9ureau of .ood and Dru$s: on 2003* The !uality of honey depends on the (is#osity of the plants surroundin$ the honey farm* The wines #omposed 0 to <0 of honey as sweetener* At present all the firm’s produ#e are marketed lo#ally*
radi !a ti"na n," l !e !ea ad d
-i, Duh nay at !e ad !ea d
Fi/u#e 4. Die#e&t ,"#i"&t ' Die--e H'&e$ :i&e
+. T#"(iti'&"- Me"(
't is made from the finest honey a(ailable 9mostly from man$o flowerin$ season har(est:* 't has $emlike #larity in a #onsistent bri$ht
23
$olden #olor* 't is the bestseller amon$ the four (ariants durin$ tastin$ sessions* +ndertone of honey is pun$ently noti#eable* 't is a#omple; (oluptuous mead in e(ery sense* Moderately sweet and should be ser(ed #hilled* 2. M"&/' Me"(
't is made from )hilippine ripe man$o 9#arabao (ariety: and honey* 't has $emlike #larity in a #onsistent yellowish $olden #olor* Man$o fruit taste is mildly stron$* +ndertone of honey is moderately noti#eable* Moderately sweet and should be ser(ed #hilled* 3. Bi/&"$ Me"(
't is made from )hilippine wild berry 9lo#ally know as bignay:* %olor is red and it is sli$htly darker than the duhat mead* E!ually intense fruity aroma with refreshin$ a#idity and the undertone of honey #annot be missed* Moderately sweet and should be ser(ed #hilled* 4. Du"t Me"(
't is made from )hilippine plum 9lo#ally known as duhat : and honey* %olor is ruby red with tin$es of purple when held to a white li$ht e(o#ati(e to the #olor of the flesh of the duhat fruit* 'nitial aroma is stron$ly fruity with undertone of honey* 't is moderately sweet and should be ser(ed #hilled* The raw materials in makin$ honey wine are honey, water, and fruit e;tra#ts* .ermentation takes <> days and the a$ein$ is at least " months* The bottles, shrink #aps, and #ork are imported from the +S and pur#hased in bulk* The labels are made European style to make a world#lass impression to the wine* .i$ure > shows the Balue %hain Analysis for honey wine*
24
Fi/u#e 5. H'&e$ :i&e ,"-ue C"i& A&"-$i
E.
;e$ t' Succe "&( C#itic"- Iue
The top mana$ement of Dielle’s belie(e that they ha(e a $ood !uality produ#t in their honey wine* %ommuni#atin$ this belief to their intended market is the main key to su##ess* 'n addition, Dielle’s must also ensure total #ustomer satisfa#tion by warrantin$ the #onsistent produ#tion of !uality honey wines throu$h its stri#t adheren#e to produ#tion and pa#ka$in$ standards* %ontinuous produ#t inno(ation #ould also be an important fa#tor to de(elop #ustomer loyalty and e;pand market rea#h* As a start up firm in honey wine produ#tion, Dielle’s should wat#h for the followin$ #riti#al issuesH 1* Maintainin$ its standin$ as the pioneer honey wine produ#er in the #ountry*
2* 'n#reasin$ its re(enue base by e;pandin$ its produ#tion #apability and rea#hin$ new market* * Monitorin$ re$ularly of #ustomer satisfa#tion throu$h a re$ular me#hanism of #ustomer feedba#k so that the $rowth strate$y will not #ompromise !uality and le(el of satisfa#tion* All these #an be a#hie(ed throu$h #ontinuous produ#t de(elopment and pro#ess inno(ation that are in a##ordan#e with the demands of the market* Carmoni&in$ the entire supply #hain will also ensure the a(ailability of supplies when needed so as to keep up with e(entual business $rowth*
'B* EN,IRONMENTAL ANALSIS A. M"c#'e&i#'&!e&t"- "ct'#
Demo$raphi#s stron$ly influen#e wine #onsumption* orld population is #urrently estimated at ",4"4,000,000 9+nited States %ensus ureau:* Althou$h there was a #ontinuous $rowth in the past, #urrent pro6e#tions show a steady de#line in the population $rowth rate, with the population e;pe#ted to rea#h
25
between 4 and 10*> billion 9httpH88www*wikipedia*#om:*
between
the
year
20<0
and
20>0
There is howe(er a $lobal in#rease in wine #onsumption* 'n the +S, wine per #apita #onsumption in#reases with a$e, with early #onsumers drinkin$ only "*" bottles per year* %onsumption peaks annually at 1"*< bottles* The #ountry with the hi$hest wine per #apita #onsumption is -u;embour$ with o(er "*1 liters* )hilippine’s wine per #apita #onsumption, howe(er, is still 6ust below a tablespoon or only 3* m-* The prin#ipal dri(ers of wine #onsumption in the world are tradition, #ulture, lifestyle and health, and e#onomi# status* Tar$et #onsumers of wine #omprise 121> of the population, mostly the upper and middle in#ome #lasses from Metro Manila, and other key pro(in#ial #ities like %ebu and Da(ao, and tourist areas like ora#ay* Also, wine market is e;pandin$ to women and youn$ urban professionals as they ha(e the predisposition, the money, and the in#lination to spend on al#oholi# drinks* 'n addition, there is a small but a#ti(e e;patriate #ommunity that seek wine for their own #onsumption* The )hilippine population is pro6e#ted to in#rease up to 7< million by 2010 9?S/ 2010:* e#ause of the in#reasin$ population in#ludin$ a $rowin$ number of urban workfor#e, parti#ularly the professionals, and an in#reasin$ appre#iation for wine, there will be a #onse!uent in#rease in potential market for Dielle’s honey wines* %han$in$ lifestyles may affe#t the marketin$ strate$y* orld Cealth /r$ani&ation reported that #oronary heart disease is the 2 nd leadin$ #ause of death in the world* /besity has also rea#hed epidemi# proportions $lobally, with more than 1 billion adults o(erwei$ht 9C/ 2004:* )eople are also $ettin$ #ons#ious of the alarmin$ diseases brou$ht by smokin$, pollution, and stress* Thus, people are now $ettin$ more health #ons#ious* ed wines are per#ei(ed to be healthy drink be#ause of its F$ood for the heartG !ualities* This is known as the F.ren#h )arado;G* A study published in the Journal of .ood uality and )referen#e re(eals that more humans prefer sweet wine than dry or any other kind of wine* This is be#ause preferen#e for sweetness de(elops early in humans* Aside from the fa#t that Dielle’s wine is based from honey, and not su$ar, it is fla(oured with natural fruit e;tra#ts resultin$ in the sweet fla(our in wine* All these will influen#e the marketin$ plan in a positi(e way and will $i(e better opportunities for Dielle’s in keepin$ and e;pandin$ its markets*
26
ine, howe(er, is sometimes e!uated to al#ohol and al#ohol #an influen#e a tenden#y for addi#tion* This mi;ed appeal #an also impa#t Dielle’s marketin$ plan* 'n #ase there is an in#reased ad(o#a#y for this notion, there will be a de#rease in potential #onsumption of the produ#t* The re#ent hosta$e #risis last Au$ust 2, 2010 that took the li(es of some Con$ 5on$ tourists may affe#t )hilippine tourism industry* There #an be a de#line in the (olume of tourists #omin$ in the #ountry* Althou$h many are sayin$ that the in#ident is lo#ali&ed* ased from the 2004 ?S/ report, there were a total of 2,7<<,1> tourists who (isited the #ountry* 'f indeed the international #ommunity looked at the in#ident as lo#ali&ed, there will be no dramati# effe#t in the (olume of tourists in the #ountry* More or less, it will remain the same* 'f #han$e will indeed happen, only a small (olume #han$e will be reali&ed* As su#h, ma6or tourist destinations su#h as ora#ay, %ebu, )alawan, and Da(ao will still be fre!uented by forei$n and lo#al tourists* Therefore, there is still a market for Dielle’s honey wines in these parti#ular pla#es* A total of 17>,243 balikbayans (isited the #ountry in 2004 9?S/ 2010:* Assumin$ a #onser(ati(e 1020 of the total (olume of balikbayans as the tar$et market, it is a bi$ number of potential buyers* Dielle’s honey wines are #onsidered $ood no(elty items* ith the number of balikbayans, there is a positi(e market of people buyin$ Dielle’s as “pasalubong” item for their lo(ed ones when they $o ba#k to their respe#ti(e #ountries* Mead produ#tion dates ba#k to as early as 3,000 *%* Ar#haeolo$i#al findin$s of pottery (essels #ontainin$ mi;tures of mead, ri#e and other fruits alon$ with or$ani# #ompounds of fermentation were found in ?orthern %hina* /ther findin$s were likewise found in Europe* /n the other hand, wine has been part of estern history sin#e the ?eolithi# )eriod 94,>00 = <,000 *%*: and has spread throu$hout the world* 't has sin#e been in$rained and be#ame an inte$ral part of %hristian tradition*The te#hnolo$y of mead produ#tion is a#tually (ery simple and does not in(ol(e #omple; pro#esses* 't is basi#ally the fermentation of a mi;ture of honey and water throu$h the a#tion of yeast* 't remained un#han$ed o(er se(eral periods of time* Cowe(er, there are re#ent te#hnolo$ies that may affe#t Dielle’s marketin$ plan* 'n a study #ondu#ted by ureshi and Tamhane and published in the Journal of Applied Mi#robiolo$y and iote#hnolo$y Bolume 2, the pro#ess of immobili&ation, use of dual #ultures and series rea#tors redu#ed the time period of mead produ#tion and eliminated the #ostlier a$in$ pro#ess* Also published in the 6ournal Bolume 23 by the same authors, the use of immobili&ed #ells of Hansenula anomala in #al#ium al$inate $els enables the !ui#k produ#tion of
27
matured mead by a sin$le #ulture and the elimination of the traditionally used lon$ a$in$ periods* These te#hnolo$ies, if soon #ommer#iali&ed and adopted, may affe#t Dielle’s marketin$ plan* 't will affe#t Dielle’s in a positi(e way if the firm will e(entually adopt the te#hnolo$y in its produ#tion in order to in#rease and speed up its produ#tion to supply the $rowin$ demand* /r it #an be ne$ati(e if #ompetitors will adopt the te#hnolo$y sooner and will be the first* Dielle’s is also #urrently pa#ka$in$ the wine manually, from dispensin$ of the wine in the indi(idual bottles, to pla#in$ the #orks, and shrinka$e #aps* Automatin$ the pa#ka$in$ pro#ess or any other part of the produ#tion will brin$ positi(e effe#t to the marketin$ plan as it will hasten and in#rease Dielle’s produ#tion* There are e;istin$ $o(ernment laws and re$ulations that affe#t the firm* 'n January 200>, the re(ised Sin Ta; ill or epubli# A#t 7< was implemented in the )hilippines* This imposed e;#ised ta;es on al#ohols and toba##o produ#ts* .or spirits and wines, ta;es were #olle#ted on per liter (olume #apa#ity* .or wines, a )h)13*<3 ta; will be #olle#ted per liter for wines with 1< al#ohol by (olume and below, and )h)<*7< ta; per liter will be #olle#ted for wines with abo(e 1< but below 2> al#ohol* e#ause Dielle’s honey wine is 12 al#ohol, a )h)13*<38liter ta; should be #olle#ted* )resently, Dielle’s is not yet affe#ted by this spe#ifi# law be#ause the firm is #onsidered as MSME* Cowe(er, on#e the firm e;pand it will be #o(ered by this law, therefore it #an affe#t the marketin$ plan be#ause produ#tion pri#e will be affe#ted* 'n 2000, the )hilippines passed a etail -iberali&ation ill, enablin$ forei$n retailers to enter the wine industry* This mo(e is e;pe#ted to en#oura$e $rowth in retail outlets* This will ha(e a ne$ati(e impa#t on Dielle’s marketin$ plan as it has to #ompete with many forei$n brands, whi#h are already established brands and more familiar to the )hilippine market* )hilippines is a tropi#al #ountry* An a(era$e of 20 typhoons (isits the #ountry within a year period 9)A@ASA:* The o##asional o##urren#e of typhoons in the )hilippines may indire#tly affe#t Dielle’s marketin$ plan be#ause its produ#tion may be altered and affe#ted* The main raw material for Dielle’s wine (ariants is honey har(ested from the bee #olonies* /n#e there is a typhoon, there is always the risk that the bee #olonies produ#in$ honey for wine produ#tion #an be destroyed* 'n effe#t, on#e the sour#e of raw material is destroyed, the produ#tion pro#ess will likewise be affe#ted*
B. Mic#'e&i#'&!e&t"- "ct'#
28
The raw materials for honey wine produ#tion are basi#ally honey, water, and yeast* Dielle’s produ#es its own honey from its bee farm lo#ated in Muntinlupa and -as )inas #ities in Metro Manila, and -ipa and Tanauan #ities in atan$as* Dielle’s pro#esses 10 of the total honey har(est into wine* Thus, it has assuran#e of supply of raw material* Dielle’s also buys some of the raw honey from #omembers of the )hilippine ee 5eepers Asso#iation to au$ment their raw honey re!uirement* )resently, Dielle’s sour#es of raw honey are enou$h for the #urrent produ#tion* Should there be other firms or #omembers of the ee 5eepers Asso#iation who will also (enture into the same business, Dielle’s would ha(e to #ompete with the sour#e of their additional raw material espe#ially if Dielle’s has to e;pand its market* /therwise, it has to put up its own additional bee #olonies to produ#e enou$h honey for its wine produ#tion* Coney is marketed as a pure honey produ#t* )ri#e ran$es from )"0 to )1>0 per >0 m- bottle for lo#al brands and )200 to )>0 for imported brands* Coney is #ommonly #onsumed as pure substan#e be#ause of its health benefits* Sometimes it is used as additi(e in infant and $rowin$ up milk formulas su#h as in ?estle produ#ts like ?ido, in food and be(era$es, #akes and pastries, pharma#euti#als like burn ointments, , and in (itamins* Should these industries demand more supply of honey and offer a more #ompetiti(e pri#e, it will pose a problem for Dielle’s* ?aturally, if Dielle’s ha(e to buy raw honey from an outside supplier, it be at a mu#h hi$her pri#e* And this #an subse!uently affe#t Dielle’s produ#tion pro#ess and o(erall marketin$ plan* Sour#e of bottles, #orks, and shinka$e #aps will be the main problem for Dielle’s as these materials are sour#ed out abroad and by (olume* Therefore, bi$ #apital is needed for bulk importation* Should suppliers of these spe#ifi# materials would ha(e a shorta$e or if suppliers prioriti&e other buyers, Dielle’s produ#tion will be hi$hly affe#ted* Therefore, Dielle’s must build a stron$ partnership with its suppliers if it plans to order from them #ontinuously* %ustom duties and other importation pro#edures may #ause sli$ht problems, too* Dielle’s #an also try to sour#e for domesti# bottle produ#ers* This #an be possible as Dielle’s is usin$ $eneri# <00 m-#apa#ity bottles it is not #ustom desi$ned for them* Dielle’s #an build business allian#e with other #ompanies or MSMEs that use the same bottle to be able to #ome up with the minimum order re!uired by the lo#al bottlin$ maker like San Mi$uel ottlin$ %orporation or i$ht )ak* This will lower the #apital #ost re!uired be#ause the bottle will be transported lo#ally*
29
Dielle’s has a stron$ le(era$e in terms of pa#ka$e label be#ause Dielle’s label is ele$antlookin$ and #omparati(e to other imported brands* The firm has to maintain this standin$* Dielle’s does not ha(e any #ompetitor if we based the wines in the #urrent market in terms of raw materials* Dielle’s is the lone produ#er of fruit wines usin$ honey in the fermentation pro#ess* * /ther )hilippine produ#ers of fruit wines use su$ar instead, whi#h is the most #ommon raw material* There are already a number of fruit wine produ#ers in the )hilippines #omin$ from se(en pro(in#es = 'lo#os, -a$una, %a(ite, %a$ayan de /ro, %ordilleras, ?ue(a E#i6a, ue&on and en$uet* They use almost the same fruits like man$o, bignay , duhat , pineapple, and ri#e* Dielle’s has its own man$o plantation* Therefore, supply of man$o for Dielle’s man$ofla(ored wine will not be a problem* Cowe(er, for other fruits like bignay and duhat , Dielle’s has to establish a stron$ partnership with its supplier to ensure a steady supply of these fruits espe#ially durin$ lean months be#ause these fruits are seasonal* There are no e;istin$ defined #hannels for Dielle’s at present* Dielle’s four (ariant produ#ts are not sold in formal business establishments but only networkin$ and o##asional parti#ipation in trade fairs and e;hibits* The former is done throu$h its link with +)- .ood S#ien#e Se#tor, personal #onne#tions, and #orporate networks* The present networks only pro(ide Dielle’s a limited presen#e only in -a$una, Metro Manila, and Kamboan$a*
C.
C'!etitie t#"te/$
.irms with low shares of the total market #an be#ome hi$hly profitable throu$h smart ni#hin$* Su#h #ompanies tend to offer hi$h (alue, #har$e a premium pri#e,a#hie(e lower manufa#turin$ #osts, and shape a stron$ #orporate #ulture and (ision* 95otler 200: Dielle’s will follow a #ompetiti(e strate$y as a ni#he marketer be#ause it #an a#hie(e hi$h mar$in* 't #an atta#k initially small lo#al and re$ional firms that are not doin$ a $ood marketin$ 6ob* 't is not yet in a finan#ial position to laun#h an atta#k to the market leaders, whi#h in this #ase, are the imported wines* 't has to inno(ate #ontinuously so that when it be$ins to weaken, it will ha(e the #apability to offer a new produ#t whi#h may not be ne#essarily sti#kin$ to its ni#hin$ strate$y* Dielle’s #an do well also to stren$then its supply #hain throu$h the #onstant monitorin$ and s#outin$ of additional sour#es for !uality raw materials espe#ially the suppliers of fruits* Bignay for e;ample #an be sour#ed out from
30
sour#es outside its present network* 't needs to build up its own apiary to prepare for the in#reased demand for honey its ma6or in$redient* %onstant produ#t and pro#ess inno(ation should be pursued* Aside from doin$ produ#t de(elopment on other fruit (ariations it may also (enture into infusion of abundant lo#al herbs and spi#es like lemon$rass, FlibasG, FbatuanG, and indi$enous plants sin#e mead is traditionally #omplemented with herbs in its an#ient brewin$* )ro#ess inno(ation on the other hand #ould be in automatin$ #riti#al portions in the produ#tion pro#ess like pa#ka$in$*
,.
MAR;ETING STRATEG
A )hilippine wine #ompany needs to ha(e a #lear marketin$ strate$y in order to be able to effe#ti(ely #ompete in today’s wine market, whi#h is #urrently dominated by imported brands* /nly with a #lear understandin$ of the market #an a #ompany work seamlessly towards a#hie(in$ a profitable sales and establishin$ itself as a su##essful produ#er of wine, parti#ularly of honey wine, whi#h is not (ery mu#h familiar to the )hilippine #onsumers*
A. Mii'&
%urrently, Dielle’s Apiary and Meadery Enterpises does not ha(e a definite marketin$ strate$y* There is no e;istin$ Mission, Bision, and /b6e#ti(es, but the owner of the familyowned #ompany is (ery #lear about what they want to a#hie(eH to make a stron$ and su##essful business of honey wine produ#tion in the )hilippines and e(entually establish a $lobal market of a produ#t that is proudly F)inoyG* 't is therefore the main mission of the marketin$ plan* Dielle is already pra#ti#in$ the > S’ as shared by a %anadian bee keeper, whi#h is already a $ood start towards attainin$ international standard and 'S/ a##reditation* B. M"#*eti&/ Oectie
A #on#rete marketin$ strate$y is laid down and dis#ussed in this paper in order to a#hie(e the followin$ ob6e#ti(esH a* b* #* d*
To introdu#e and populari&e honey wine #onsumption in the )hilippines To in#rease lo#al market penetration of honey wine To enter the e;port market and, To e;pand the business*
C. Fi&"&ci"- Oectie
31
The main finan#ial ob6e#ti(e is to in#rease re(enue and profit of the firm by 200 D. 8'iti'&i&/
The produ#t will be positioned as a midpri#ed e;oti# health wine* E. St#"te/$ Su!!"#$
Marketin$ is ob(iously done to $enerate sales profit in order to make Dielle an established produ#er of honey wine* 'n summary, the first year of the marketin$ plan will #on#entrate more in the introdu#tion of the produ#t and edu#atin$ more #onsumers re$ardin$ honey wine be#ause based from the admission from Dielle’s owner, it is not easy to introdu#e honey wine in the )hilippines be#ause #onsumers are more familiar with su$arbased wines, be it imported or lo#allyprodu#ed fruit wines* The first year of the marketin$ strate$y will ob(iously in(ol(e a lot of #oordination and networkin$ to $ain partnerships and stren$then business ties* 't will in(ol(e more finan#ial in(estment from the firm for publi#ation of information materials and promotional a#ti(ities* Cowe(er, all these will pro(ide a stron$ $roundwork for the su##eedin$ a#ti(ities to ensure sales profit $eneration that will e(entually lead to business e;pansion* /nly a minimal sales input #an be e;pe#ted from the
promotional a#ti(ities* Dielle will in(est in marketin$ and not e;pe#t too mu#h sales $eneration durin$ the first year* The marketin$ a#ti(ities durin$ the first year will pro(ide the $roundwork for an a$$ressi(e marketin$ durin$ the su##eedin$ years, whi#h should #oin#ide with the e;pansion pro$ram as sales is e;pe#ted to in#rease*
,I. MAR;ETING MI
The marketin$ mi; in(ol(es how the produ#t line of honey wines will be pri#ed, promoted and distributed, and other su#h fa#tors that may affe#t the o(erall impa#t of the produ#t to the #ustomers* The followin$ marketin$ mi; is attuned to the #hoi#e of market se$ment for the produ#t* A* )rodu#t Coney is man’s oldest sweetener* 't is #omposed of $lu#ose and fru#tose, and minerals like ma$nesium, potassium, #al#ium, sodium, #hloride, sulphur, iron, and phosphate* 't #ontains (itamins 1, 2, %, ", >, and , all of whi#h #han$e a##ordin$ to the !uality of the ne#tar and pollen* %opper, iodine, and &in# e;ist also in small !uantities* Se(eral kinds of hormones are also present*
32
Appro;imately, onehalf of the human diet is deri(ed dire#tly or indire#tly from #rops pollinated by bees* Dielle’s #an take ad(anta$e of the fa#t that the main in$redient of Dielle’s wine is honey be#ause this is essen#e of its #ompetiti(e ad(anta$e* The honey wines that #ome in four (ariants 9premium, bi$nay, duhat, and man$o: should be well differentiated in the minds of the tar$et market* 't should be well pa#ka$ed with an e;#ellent artwork* Desi$n on the labels should be simple yet should (ery well arti#ulate the brand name and brand reputation* 't is also hi$hly essential that the ri$ht #olor and lo$o are used* The firm needs to re(iew its present pa#ka$in$ a$ainst those of its #ompetitors the lo#al fruit wines and midpri#ed imported wines and see where the pa#ka$in$ #an be further impro(ed* The si&e of the bottle shall be maintained at <00 m-* * )ri#in$ The honey wine should be per#ei(ed as ha(in$ hi$h (alue due to the presen#e of honey* 't is main in$redient that distin$uishes it from its #ompetitors* Therefore, the pri#e should not be established within the ran$e of its nearest #ompetitor fruit wines* -ookin$ at the breake(en #ost of the produ#t the pri#e per <00 m- bottle for the four honey wine (ariants #an be established as followsH )remium Coney ine
)h) 240*00
Man$o, Duhat , Bignay Coney ines
)h) 230*00
ulk pur#hase will be $i(en dis#ount* Coney wines #an be bundled with the firm’s ori$inal produ#t honey, whi#h is sold at )h) 1>0 per 2>0m-*
%* )romotion This will be #arried out usin$ ad(ertisement, publi# relations, publi#ity, promotions, and e(ents, produ#t marketin$ materials, and sales for#e* This will also in#lude website, and (isibility in so#ial networkin$* D* %hannel The present #hannel of distribution of Dielle’s is throu$h dire#t sellin$ and network with other sellers* The marketin$ strate$y should howe(er shift to a different plane while maintainin$ these e;istin$ #hannels in order to li(e up to the ri$htful positionin$ for the produ#t*
33
y 2012, the produ#ts will ha(e presen#e in three ma6or #itiesH Metro Manila, %ebu, and Da(ao and leadin$ tourist destinations like ora#ay and %amarines Sur* The wines will be sold in ma6or wine stores like alph’s ine and Spirits, in sele#ted > star hotels and restaurants, and bi$ supermarkets like SM* E* Ser(i#e After sales ser(i#e will only be limited to pro(idin$ warranty for the produ#t in #ase #ustomers find physi#al defe#ts in the bottle or when unwanted impurities are found in the wine* A me#hanism should be employed for the total refund to the #ustomer at the point of sale* Dielle’s should indi#ate its website in the wine label to fa#ilitate produ#t orders, #ustomer feedba#ks, and intera#tion* .* 'nternal Marketin$ All the employees and staff of Dielle’s should be aware of the $oals of the firm* They should internali&e the #ore (alues of the firm, be moti(ated to ha(e their own initiati(e, and #ontribute to the makin$ of #reati(e solutions to internal problems* %ontinuous trainin$ and learnin$ should be en#oura$ed amon$ the firm’s employees and staff* Top mana$ement #ould set aside an emer$en#y fund to its workers in #ase they ha(e finan#ial problems*
,II.
MAR;ETING RESEARCH
A##ordin$ to an arti#le from %he#he Moral of The )hilippine Daily 'n!uirer published /#tober 4, 2004, .ilipino wine #onsumers are partial to drinkin$ white wine but ha(e shown in#reasin$ patrona$e of red wine e#hoin$ the so#alled F.ren#h )arado;G* Also, that pri#e is the main #onsideration of .ilipinos’ wine buyin$ de#ision* ased on ine and Spirits Asso#iation of the )hilippines, best sellers in lo#al wine stores are imported brands from Australia, spe#ifi#ally $rape wines, whi#h ran$es in pri#e from )h) 1>0*00 to )h) >00*00 per 3>0 ml bottle* Cowe(er, more .ilipino #onsumers are shiftin$ to fruit wines that are per#ei(ed to pro(ide more health benefits than ordinary wines* -o#al fruit like Fbi$nayG are known to possess fla(onoids whi#h a#t as antio;idants that pre(ent #an#er* 'ts reddish to purplish #olor is indu#ed by its antho#yanin whi#h is also an antio;idant and possess potential health effe#ts a$ainst #an#er, a$in$,
34
neurolo$i#al disease, inflammation, diabetes, and ba#terial infe#tions* i$nay wine is the bestseller amon$ fruit wines in the #ountry*
,III.
FINANCIALS
A* Sales8e(enue .ore#ast At present the firm has an a(era$e monthly produ#tion #apa#ity of 2>0 liters per month or rou$hly "00 bottles* This is e!ui(alent to about )h) 7","00*00 $ross sales per month* The pro(ision of SET+) assistan#e will ma;imi&e the produ#tion #apa#ity of the firm to <00 of its present le(el pro(ided howe(er that the sour#in$ of raw materials i*e* honey and fruits will be effi#ient to mat#h the demand* Table 2 shows that the re(enue is e;pe#ted to in#rease by <0 in 2011 at )h) 2*43 Million assumin$ that the firm will operate at 200 produ#tion #apa#ity* y 2012 it is assumed that <00 ma;imum produ#tion will be met and will $enerate re(enue of )h) >*> Million* /n the third year Dielle’s is e;pe#ted to a#!uire additional e!uipment to meet in#reased demand and $ross re(enue is fore#ast at almost )h) 11 Million* T"-e 2. S"-e F'#ec"t
8"#ticu-"#
Total Sales Dire#t %ost of Sales
21++
S"-e F'#ec"t 21+2
21+3
2060%51.11
5400111.11
++121111.11
1,403,744
,<3,400*00
",301,>00*00
Dielle’s will #ontinue to sell their produ#ts to their present network in addition to the new markets that will be penetrated as a result of the
35
implementation of the marketin$ plan* 'n the #ase of new markets 9i*e* malls, hotel, restaurants and wine stores:, Dielle’s will initially allow a ma;imum of 0 dis#ount* The sales fore#ast shows that Dielle’s #ould be ready for dire#t e;portin$ by 201<* Dire#t e;port re!uires a minimum of 10,000 bottles per order*
* Marketin$ E;pense ud$et ased on the marketin$ strate$y presented in se#tion 'B the firm is #apable of fundin$ its marketin$ plan* /n its first ad(ertisin$ year, the firm will in#ur )h) 0,>00* The e;pense is e;pe#ted to in#rease as the firm be#omes more a$$ressi(e in its marketin$ a#ti(ities tar$etin$ its ni#he market* The bulk of the marketin$ e;pense $oes to printed materials and parti#ipation in lo#al fairs* This is to make the produ#t known to prospe#ti(e e;porters* Also, si$nifi#ant bud$et is allo#ated to parti#ipation in bartendin$ e;hibitions where the wine #an be introdu#ed as mi; with other known brands* %ookin$ e;hibitions #an also be done and funded as well as sponsorship of wine appre#iation e(ents* T"-e 3. M"#*eti&/ Exe&e Bu(/et
)eriod 8"#ticu-"#
De(t* of Marketin$ %on#ept ebsite Enhan#ement L Subs#ription 9@lobe us* Solns*: Media E(ent )rinted Materials )arti#ipation in -o#al Trade .airs L E;po )arti#ipation in artendin$ E;hibitions Total Sales & arketing e!penses "ercent of sales #ontribution argin
>+
>2
>3
>4
>0,000
10,000
TOTAL
>0,000
<,>00 2>,00 0
<,>00
<,>00
1>0,00 0
10,00 0
2,>00
1>0000*00
2>,000
2>,000
>0,000*00
10,000
10,000
0,000*00 0,>00*00 10*>4 1,0"0,3"2*0
36
0 <0
#ontribution argin$sales
%* reakE(en Analysis The breake(en analysis in Table < indi#ates that the firm will breake(en at the produ#tion le(el of ","7" bottles* The firm should operate abo(e this #apa#ity in order to breake(en* T"-e 4. B#e"*9Ee& A&"-$i 21++
reakE(en Sales
1,403,744*00 ","7" bottles
AssumptionsH Total e(enue Total Bariable %ost Total .i;ed %ost
2,4"4,3>0 1,131,000*00 "",744*00
D* )rofit and -oss Analysis The firm is e;pe#ted to $enerate profit #onsistently within the ne;t three years* 'n 2011 it is pro6e#ted to $enerate )h) 0*7 Million profit* The ne;t year when it is e;pe#ted to rea#h <00 ma;imum produ#tion #apa#ity )h) 1*1 Million profit will be reali&ed* 't is on this year that the firm will ha(e to a#!uire additional e!uipment for e;pansion of its produ#tion* 'n 201 the ma;imum profit will hit )h) 2*> Million sin#e the (olume of produ#tion will rea#h a re#ord hi$h of >0,000 bottles* This is already the si$nal that it is #apable of supplyin$ the e;port market dire#tly* y 201< the firm is e;pe#ted to penetrate the e;port market as dire#t supplier hen#e profit is e;pe#ted to #limb* T"-e 5. 8#'it "&( L' A&"-$i
37
8"#ticu-"#
e"#
2011 @ross Sales Dire#t Sales Sales from hotels, indire#t e;porters, wine stores -essH Bariable %osts Materials -abor ater L Ele#tri#ity epair L Maintenan#e .i;ed %osts Administrati(e %ost Marketin$ E;pense Depre#iation )ur#hase of e!uipment for E;pansion SET+) Amorti&ation Total ?et 'n#ome before ta; Ta; Net I&c'!e
2012
201
2060%51
5400111
++121111
1,"43,>00 1,141,2>0
1,7"0,000 ,>24,000
2,700,000 4,120,000
341,000 00,000 "0,000 0,000
1,43<,<00 <71,<00 1>0,000 <>,000
,>1<,>00 1,<0<,000 220,000 3>,000
210,000 0,>00 >,000
2>2,000 >00,000 >,000 3>0,000
34,000 1,000,000 110,000 1,>00,000
44,<44 1,403,744 1,0"0,3"2 4",0"
44,<44 123*20 <,14",244 4,202,423*20 1,01,312 2,413,132*40 1"<,"<0 0,"00*00
)%2202.11 ++3%1%2.11 24065%2.01
The marketin$ a#ti(ities is e;pe#ted to pay off more after 201 when the produ#t is e;pe#ted to be already widely known in the market se$ment sele#ted, and the produ#ts are made a(ailable to wider market networks* I.
C'&t#'-
A* 'mplementation .ollowin$ is a detailed presentation of the spe#ifi# marketin$ a#ti(ities that will be implemented* +. 8#'(uct #'!'ti'& t#'u/ te <'#-(
'n today’s di$ital a$e, web presen#e is a must* The tar$et market se$ment is seen as a#ti(e users of this medium* Dielle’s has an offi#ial website in the past
38
9httpH88www*diellesmeadery*#om : but was not maintained and updated* The first thin$ to do therefore is reestablish the website and should be done in the first month of the marketin$ plan implementation* 'f the #ompany does not ha(e an in house 'T #apability, a pro$rammer8website de(eloper #an be # ontra#ted* Another key element is to be able to find a less e;pensi(e web hostin$ pro(ider or domain that #an host the website* Dielle’s #an try the #ommer#ial portal su#h as @lobe usiness Solutions* Subs#ription may #ost about )h) 1,>00*00 per month* +pdatin$ and maintenan#e of the #ontent #an already be done by the owner or staff or a hired 'T personnel* Dielle’s #an also e;pand its presen#e online throu$h the use of so#ial networkin$ sites like .a#ebook, Twitter, and Multiply, whi#h are (ery popular nowadays and are for free* All that is re!uired is an internet #onne#tion* These sites are fre!uently (isited by the tar$eted market whi#h in#ludes youn$ urban professionals 9both men and women:, e;patriates and forei$ners, and #ompany e;e#uti(es, amon$ others* 't will be helpful in the promotion of the wine produ#ts* Dielle’s has to #reate its own a##ount on .a#ebook, Twitter, and Multiply and post produ#t photos and information and #ontinually update the a##ount* Throu$h this strate$y, there will be a twoway intera#tion between the firm and #onsumers be#ause people #an be a fan and post their #omments outri$ht* )rodu#t orders #an also be fa#ilitated in these media* Market #onne#tions and #ustomers #an likewise be $ained by uploadin$ produ#ts in the Alibaba website whi#h is a(ailable for free* Alibaba is widely used abroad by #ompanies seekin$ forei$n suppliers* E(en lo#al #ompanies sometimes (isit the Alibaba website in sear#h for lo#al suppliers whene(er they are short of supply for their own produ#ts* +ploadin$ of (ideo in outube su#h as a #ookin$ demonstration usin$ honey wine and wine mi;in$ will be a $ood strate$y so that more people will know about Dielle’s and its produ#ts* outube has been an effe#ti(e medium in the sear#h for new e;#ellent produ#ts* 2. 8#'(ucti'& ' #'cu#e "&( -e"-et
ro#hures and leaflets are (ery important sour#e of information for #ustomers durin$ the firm’s parti#ipation in lo#al trade fairs, e;hibits and tours* ?ormally, people (isitin$ trade fairs and e;hibits want to e;plore and it will be helpful if Dielle’s has a ready information material to $i(e away to prospe#ti(e #ustomers espe#ially those who won’t be spendin$ too mu#h time knowin$ the
39
produ#t durin$ the e;hibit* )eople #an read the material e(en when they lea(e the e;hibit areas* The bro#hures and leaflets should #ontain important information su#h as brief history, des#ription, ad(anta$es of usin$ the produ#t, the different (ariants, #onta#t information, amon$ other important information* A featured arti#le on the benefits of honey should always be in#luded* %olored and $lossy material should be used for the produ#tion of these readin$ materials* A !uality, hi$hresolution photo of the produ#t must be used so that readers #an see the a#tual appearan#e and #olor of the produ#t and also to make the readin$ material attra#ti(e and able #on(ey a temptin$ appeal so that people will buy honey wine* 'nitially, one thousand #opies of bro#hures and leaflets will be enou$h for distribution durin$ trade fairs and e;hibits for the first year* +pdatin$ of the bro#hure will be done in subse!uent years* 3. 8"#tici"ti'& i& -'c"- exiit t#"(e "i# "&( ''( ex'iti'&
Trade fairs and e;hibits are effe#ti(e (enues for ad(ertisin$ and marketin$ a produ#t* %onsumers $et to know more the brand and the produ#t durin$ trade fairs be#ause of dire#t intera#tion* )eople who (isit trade fairs and e;hibits usually want to dis#o(er new produ#ts and are #urious re$ardin$ new inno(ations* There is also an immediate sales input durin$ trade shows be#ause people droppin$ by the e;hibit booth will probably be buyin$ a produ#t as well* Althou$h Dielle’s already parti#ipated in a number of trade fairs in the past, it needs to #ontinue to tap this promotion medium* There are many lo#ally or$ani&ed fairs su#h as the D/ST ?ational S#ien#e and Te#hnolo$y eek 9?ST: e;hibit where parti#ipation re!uires only minimal fee due to subsidy* The only e;pense to be in#urred will be the transportation e;pense durin$ in$ress and e$ress and other in#idental e;penses* Dielle’s must assi$n a re$ular staff to man the e;hibit who should be knowled$eable about the firm and the produ#t and answer !ueries from #lients and prospe#ti(e #ustomers* /ther trade fairs and e;hibits that Dielle’s #an 6oin are Asia .ood E;po, )hilippine 'nternational .ood and e(era$e E;po 9)'.EN:, .ood and Drinks Asia, / )hilippines .airs, 'nternational .ood E;hibition 9'.EN:, and trade fairs or$ani&ed by $o(ernment a$en#ies su#h as Department of A$ri#ulture 9DA:, Department of Trade and 'ndustry 9DT':, and Department of Tourism 9D/T:* Cowe(er, parti#ipation in these trade fairs will re!uire re$istration fees* The firm must sele#t and prioriti&e whi#h trade fair will pro(ide $reater benefit* To lower
40
#ost, Dielle’s #an #oordinate with another MSME’s and #oshare with booth rental and other e;penses* Durin$ the trade fairs and e;hibits, Dielle’s #an #ondu#t an onsite produ#t demo or wine tastin$ to #on(in#e #ustomers to try out the produ#t* This is a $ood strate$y to make the audien#e e;#ited and en#oura$e them to a#tually buy the produ#t* /nsite wine tastin$ and demo #ould spell the differen#e between someone buyin$ the produ#t or someone 6ust walkin$ away durin$ trade fairs and e;hibits* )arti#ipation in trade fairs and e;hibits #an also be a $ood opportunity for Dielle’s to s#out its #ompetitors in the market be#ause most likely, similar businesses will be in(ited to parti#ipate in the same e(ent* Dielle’s #an ha(e an idea about why people bou$ht #ertain items and what people lo(e about the #ompetitor’s brand* Dielle’s #an take mental notes about what people and #lients look for in a produ#t and Dielle’s #an use these information and insi$hts in future promotion and produ#t de(elopment* Dielle’s #an also know the latest breakthrou$hs and produ#ts that are takin$ the market in storm by 6oinin$ trade fairs and e;hibits* 4. S'&'# "
Dielle’s #an #oordinate #losely with S#ien#e and Te#hnolo$y 'nformation 'nstitute of the Department of S#ien#e and Te#hnolo$y 9ST''D/ST: to or$ani&e a wine drinkin$ appre#iation for s#ien#e writers, editors, and broad#ast pra#titioners* These in#lude s#ien#e writers from re$ular partners like Manila ulletin, Manila Times, )hilippine Star, and broad#ast pra#titioners from re$ular radio partners su#h as M?, et#* riters and editors of food ma$a&ines like um, .la(or, and @ood Cousekeepin$ #an likewise be in(ited to the e(ent* ST'' is the information arm of the D/ST* 't #an pro(ide assistan#e to Dielle’s, bein$ a SET+)assisted pro6e#t under D/ST* The main ob6e#ti(e of the wine drinkin$ appre#iation e(ent is to promote the Dielle’s honey wines amon$ writers and media pra#titioners by ha(in$ them taste the (ariants and how it is #ompatible with other foods su#h as #heese, bread, et#* Media people are hi$hly effe#ti(e #hannels of information* A spinoff of this a#ti(ity would be the promotion of Dielle’s honey wine be#ause the writers and editors will naturally write about the produ#t or the D/ST te#hnolo$y inter(ention in the firm and published it in their respe#ti(e newspapers and ma$a&ines* 'n this manner, Dielle’s will be featured in the
41
newspaper8ma$a&ine without spendin$ too mu#h* The #ost for the wine drinkin$ appre#iation will be mu#h lower #ompared to the #ost if Dielle’s ha(e to dire#tly pay a writer or the publisher for the publi#ation of an arti#le in the newspaper and8or ma$a&ine* 'n addition, the story will ha(e more media (alue be#ause Dielle’s will not spend a sin$le #enta(o for the publi#ation, but only for the wine appre#iation e(ent* Dielle’s will only need to spend for the wines, breads, #heeses, and other food to a##ompany the honey wines* Dielle’s should pro(ide a $ood !uality, hi$hresolution, #olored photo of their produ#t for in#lusion in the arti#le writeup* The photo will #on(ey an e;#itin$ ima$ery to the readers, thus will en#oura$e people to buy honey wine* /ne key element in this e(ent is for Dielle’s owner or marketin$ mana$er to be able to keep $ood #on(ersation with $uests and ha(e sense of humor to keep the e(ent li(ely and for $uests to remain interested* /therwise, they #an hire a person to fa#ilitate the e(ent, someone who is (ery #on(ersant and has a load of topi#s to share with the $uests* ?ormally, it is the firm that will pro(ide transportation for the writers and editors who do not ha(e their own #ars* .urthermore, the story of te#hnolo$y inter(ention in Dielle’s business #an also be featured in the re$ular D/ST newsletter, SLT )ost and the monthly D/ST Di$est* )ubli#ation in these newsletters is for free* 5. Ae"#"&ce i& T, 8#'/#"! "&( Bui&e '<
Mr* -uke Ma#ababbad, Dielle’s owner has already appeared in (arious TB pro$rams in the past* Cowe(er, these shows were not a#tually part of a planned, a$$ressi(e strate$i# marketin$ as the firm does not ha(e a #on#rete marketin$ strate$y* TB is a hi$hly effe#ti(e medium for ima$e ad(ertisin$* The (isual a#tion and audio allow (iewers to feel in(ol(ed with tele(ision* 'n addition, tele(ision has national rea#h* Cowe(er, it #an also be #ostly* e#ause TB ad is #ostly and Dielle still #an not afford to pay for it, #oordination and ne$otiation #an be made with pro$ram produ#ers and hosts su#h that, Dielle’s honey wine #an be used as an in$redient or additi(e in #ookin$ pro$rams su#h as ui#kfire, Spoon, or feature in usiness shows like @o ?e$osyo and Moms* 't will not ne#essarily entail the appearan#e of the firm’s owner in the TB pro$ram, nor does it re!uires produ#tion of a #on#rete ad(ertisement spe#ifi# for Dielle be#ause this will be #ostly and still #an not be afforded be#ause it will re!uire hirin$ of produ#tion dire#tor or talents aside from the #ost of the TB spot* Dielle’s #an #osponsor with
42
ma6or sponsors of the pro$ram so that the produ#t #an be featured durin$ the show* -o#al #able stations are also an emer$in$ medium for a tar$et small, lo#al marketpla#e* This is normally less e;pensi(e than ad(ertisements in the national TB* Dielle’s #an tap lo#al #able stations for a sele#ted market su#h as in the Bisayas or Mindanao* 6. T'u# "&( #'(uct
As a #ontinued effort to promote the produ#t, Dielle’s #an tour sele#ted establishments and pla#es and #ondu#t wine tastin$* These #an be fun and edu#ational, both for Dielle’s and the publi# #onsumers* Dielle’s produ#t testin$ will basi#ally be a publi# wine appre#iation e(ent where #ustomers will ha(e the opportunity to drink and taste a small portion of Dielle’s wine $i(in$ them the opportunity to understand the differen#e of honey wine from other wines* 't will basi#ally hi$hli$ht the uni!ueness of Dielle’s honey wines* Althou$h it is a #ommer#ial wine tastin$, there’s no need for pushy salesman or borin$ sales pit#hes that sometimes dri(e away #ustomers instead of en#oura$in$ them* 't will be a real life e;perien#e be#ause people will a#tually be able to taste the produ#t, unlike $i(in$ out bro#hures and info materials where people only $ain idea about the produ#t without the opportunity of tastin$ the real material* %ustomers #an be asked to fill up a !uestionnaire or feedba#k form to indi#ate their most preferred (ariant and8or rate the wines a##ordin$ to basi# wine parameters su#h as !uality, odor, authenti#ity, pa#ka$in$, and ima$e* The ob6e#ti(e is that, parti#ipants should lea(e the e(ent knowin$ more about Dielle’s honey wine* Tour and wine tastin$ e(ents will be #ondu#ted in the followin$ areasH 5.+. I& M"--
Malls are often fre!uented by the tar$et market* Dielle’s #an #oordinate and ne$otiate with the mana$ement of SM hypermarkets or obinson’s $ro#eries, to #ondu#t wine tastin$* This strate$y is often done by food #ompanies like ?estle* Dielle’s should try to a(oid distributin$ !uestionnaire or sur(ey forms durin$ this e(ent be#ause it #an tend to repel #ustomers* The main fo#us should be to ha(e more people taste the produ#t and sell the produ#t on site*
43
5.2. I& !"'# -'c"- t'u#it (eti&"ti'& B'#"c"$ "&( C"!"#i&e Su#
The produ#ts #an be promoted in ma6or tourist destinations in the )hilippines sin#e these pla#es are fre!uented mostly by forei$ners, balikbayans, and lo#al tourists* 't is a $ood opportunity for Dielle’s to introdu#e and promote honey wine throu$h wine tastin$* ?i$ht life is (ery mu#h ali(e in these areas and people will most likely drink wine* alikbayans and forei$ners #an buy the produ#t as their Fpasalubon$G upon returnin$ to their respe#ti(e #ountries* This a#ti(ity will re!uire Dielle’s to send a staff to the different tourism areas to #ondu#t the wine tastin$* The staff should also be knowled$eable and should ha(e the #apability to #apture the perspe#ti(es of the #ustomers re$ardin$ the produ#t* 5.3. I& #et"u#"&t "&( 395 t"# 'te-
.ine dinin$ restaurants often in#lude wines in their menu offerin$s* Three to >star hotels are likewise fre!uented by forei$ners, tourists, and e(en so#ialites and urban youn$ professionals and businessmen* y #oordinatin$ with restaurant owners and hotel mana$ers to #ondu#t wine tastin$ e(ent, with Dielle’s pro(idin$ #omplementary wines* %. 8#'(uct ,iii-it$ i& B"#te&(i&/ c'!etiti'&
Cotels and bars held annual bartendin$ #ompetitions whi#h Dielle’s #an also tap by supplyin$ some bartenders with their wine* 0. Net<'#*i&/
Dielle’s #an rea#h out to more bi$ pri(ate #ompanies that often $i(e #orporate $i(eaways and %hristmas $ro#ery pa#ka$e to its #lients and employees* Dielle’s should write to the #ompany president to introdu#e the produ#t and pro(ide a #ompetiti(e offerin$ 9dis#ounted pri#e: for bulk pur#hase of the honey wine as #orporate $i(eaway in e(ents like %hristmas party, team buildin$, or sports #ompetitions* Cowe(er, minimum finan#ial $ain is e;pe#ted be#ause the first year of marketin$ strate$y will #on#entrate more in introdu#in$ and edu#atin$ as many #onsumers as possible re$ardin$ the produ#t be#ause honey wine is not yet
44
popular in the )hilippine market today* /nly a minimal sales input #an be e;pe#ted from the promotional a#ti(ities* Dielle’s will in(est in marketin$ and not e;pe#t too mu#h sales $eneration durin$ the first year* The marketin$ a#ti(ities durin$ the first year will pro(ide the $roundwork for an a$$ressi(e marketin$ durin$ the su##eedin$ years, whi#h should #oin#ide with the e;pansion pro$ram as sales is e;pe#ted to in#rease* Shown below are the spe#ifi# milestones in the implementation of the Marketin$ Strate$yH Mi-et'&e
D"te
Appro(al of the Marketin$ )lan by Jan* top mana$ement and allo#ation of 2011 bud$et -aun#hin$ of re(itali&ed website Mar#h /penin$ of a##ounts in so#ial 2011 networks like fa#ebook and multiply Marketin$ #on#ept de(elopment Mar#h 2011 .irst print ad 9)rodu#t feature with writeup:
)rodu#tion of produ#t bro#hures
2011
Bu(/et
Re'&i-e Det.=I&9C"#/e
/wner8Mana$er Marketin$ /ffi#er
10,000
/wner8Mana$er Marketin$ /ffi#er
>0,000
/wner8Mana$er Marketin$ offi#er Ads Spe#ialist /wner8Mana$er Marketin$ offi#er .eature riter and )hoto$rapher 1>0,000 /wner8Mana$er Marketin$ offi#er 2>,000 per /wner8Mana$er e(ent Marketin$ offi#er Cired promo staff
Sept* 2011 )arti#ipation in lo#al trade fair Au$* e;hibits food e;position 2011 onwar d )arti#ipation in forei$n trade fair 201 00,000 per /wner8Mana$er 9w8 $o(ernment sponsorship: onwar fair Marketin$ offi#er d Cired )romo Staff Tour of > star hotels L 2011 >,000 per /wner8Mana$er restaurants in Metro Manila onwar tour Marketin$ /ffi#er d Cired )romo staff Tour of Ma6or -o#al Tourism 2012 >0,000 per /wner8Mana$er Destinations onwar tour Marketin$ /ffi#er d Cired )romo Staff
45
Ma6or Mall tours in %ebu, a$uio April L L Da(ao ?o(* 2011 onwar d e(iew of Marketin$ )lan E(ery end of year
2>000 per tour
20,000
/wner8Mana$er Marketin$ /ffi#er Cired )romo Staff
/wner8Mana$er Marketin$ /ffi#er .inan#e /ffi#er Marketin$ #onsultant
* Marketin$ /r$ani&ation The e;e#ution of the marketin$ strate$y is the 6ob of the marketin$ mana$er in a firm* Dielle’s will therefore need to hire a marketin$ mana$er to implement this plan* Cowe(er, sin#e it is still new in the business, the owner8mana$er #an desi$nate himself as the primary person responsible pro(ided that he has the #ompeten#e and the time* Most of the a#ti(ities that are beyond the #ompeten#e of the firm’s present staff like promo tours, marketin$ #on#ept de(elopment, et#* will be outsour#ed from ad(ertisin$ firms or #ompetent a$en#ies* Dielle’s #an hire an ad(ertisin$ firm to prepare the #on#ept and ha(e a lo#al talented artist e;e#ute it* %* %ontin$en#y )lannin$ The marketin$ plan will be re(iewed e(ery year* Cowe(er in #ase of new si$nifi#ant de(elopments su#h as the offshoot of lo#al #ompetitors, market shift, market opportunities and others, the plan will be re(isited as they o##ur* Sin#e Dielle’s is e;pe#ted to in(est on new e!uipment for e;pansion, the eturn on 'n(estment 9/': and )ayba#k )eriods were #omputed* /' for the 2011 e!uipment in(estment is 0*30 while the in(estment will be re#ouped in 4 months* The 2012 e;pansion will ha(e an /' of 1*"" and payba#k period is #omputed at 3 months*
46
.
BIBLIOGRA8H
+%E M% @E%CA?* The ine Marketin$ )lan = our ay To Make etter )rofits Cappen* httpH88winemarketin$su##ess*#om* .-/'A? %T* 2003* Cow .lows The ine 'ndustry* * httpH88blo$s*in!uirer*net O'SAP 'nternational ines and Spirits Asso#iation 'n#* 2007* ine to the )hilippines* httpH88www*austrade*$o(*au 5/T-E )* 1773* Marketin$ Mana$ement* +pper Saddle i(er, ?ew JerseyH )earson Edu#ational 'n#* p*>0* 5/T-E )* 2004* 5otler on Marketin$* ?**,?ew ork* The .ree )ress*p*17* -A/ S* 2007* Analy&in$ the )hilippine ine 'ndustry* 'nH Manila Standards, -ifestyle Se#tion* De#ember 1>, 2007 'ssue* O?S/P ?ational Statisti#s /ffi#e* 2010* www*#ensus*$o(*ph O)D'P )C'-'))'?E DA'- '?+'E* 2007* More And More Are @oin$ 'nto ine 'n(estment* April 1>, 2007 'ssue* )/TE M* 200<* .ore#astin$ and Mana$ement of Te#hnolo$y* +nited States of Ameri#aH John iley and Sons 'n#* p*<<4 +ESC' ?, TAMCA?E DB* 174"* )rodu#tion of mead by immobili&ed #ells of Hansenula anomala * Journal of Applied Mi#robiolo$y and iote#hnolo$y Bol 23 91:H230* +ESC' ?, TAMCA?E DB* 174"* Mead produ#tion by #ontinuous searies rea#tors usin$ immobili&ed yeast #ells* Journal of Applied Mi#robiolo$y and iote#hnolo$y Bol 2 9":H<4<7* S'?@'A? M%* 2007* +SDA .orei$n A$ri#ultural Ser(i#eH @lobal A$ri#ultural 'nformation ?etwork eport ?o* 7024* +*S*A*H +nited States Department of A$ri#ulture *14p* S'-BEMA? M, %ASTA-D' , AA%5 S, S/-'E? @* 200>* %ompetition in the @lobal ine 'ndustryH A +*S* )erspe#ti(e* %alifornia, +*S*A*H San .ran#is#o State +ni(ersity* 24p EST-'?@ * 2001* ine Marketin$ 101* A##essed from httpH88www*marletin$wine*#om8pdfs8winemarketin$101*pdf on Au$ust 2010*