1

10 STEP Marketing Plan for Mekeni Food Product

Auren B. GalangJune 2010

5 Steps for Part 1 (PTM and Positioning)

1. Mekeni’s PTM are meat product lovers (especially hotdogs) from the B,C ,D, E Market

2. Who likes easy to prepare food during parties or even meals to be served especially to children and adults alike

3. With Choices that varies from highly competent companies like Purefoods (Hormel +SMC Food Corp), CDO, other local producers like Pampanga’s Best etc

4. Gap is focused on good pricing scheme for B,C, D to E consumers without sacrificing taste and quality

5. In a Philippine population that is roughly 90 million and a potential market of roughly 27 B Pesos.

http://www.thepigsite.com/articles/2164/philippine-pork-market-2008

5 Steps for Part 2(Marketing Mix & Strategy)

6. Hotdogs, tocino, Patties and other meat products

7. Is 10-20 % price difference lower than the premium brands

8. Uses local tv and print ads, radio commercial, mobile announcers

9. Is distributed nationwide with more penetration on the provincial areas

10. Uses a low price approach to win

4

Positioning to the Primary Target Market

Part 1:Steps 1 to 5

1.Mekeni’s primary target market (PTM) are the working class Mom’s

Demographics (18-45yo, M/F, with children ranging from 3-12, class B,C,D and E, usually from local provinces)

Lifestyle (low income or working class who choose to buy from nearby groceries, sari-sari stores or wet markets)

Behavior (opts to buy more in retail rather than bundle packs, concerned with budget, taste and availability of product)

Food esp. for the young

2. My PTM’s NWE

Moms’ both young and old, set high priorities on feeding their young. During the formidable years of 3-12, children are most concerned on growing socially by having friends and playmates, but also require nourishment for their rapid growth.

With their limited and usually bland taste preference, being one of their favorite and easy to prepare meals, Hotdogs remain to be Moms’ number one choice to serve during breakfast or as other meal replacements for their kids.

3a. Mekeni has a lot of formidable Competitors

Direct: San Miguel Food Products, Swift Foods, Bibbo hotdog, Pampanga’s Best, other Local meat product processors (Ghie and Rica, Ariel meat products )

Indirect: Canned Meat Products like: Sausages, Spam, Corned Beef, etc

Variables: Price, product availability, promotion

Mekeni vs Competitors

A B C D-E

High price

Low Price

Price vs Consumer Bracket

Bibbo Hotdog

Tender Juicy, Swift Mighty Meaty

Mekeni’s Picnic

Pampanga’s Best

Distribution and Availability of Product

Competitors are available in all of the markets nationwide.

ProductsBest Selling Meat Product Wet Markets Supermarkets Metros Provincial

Pampanga's Best Tocino Yes Yes Yes Yes in High Quantity

Mekeni's Hotdogs yesYes, on selected supermarkets

Limited Availability

Yes in High Quantity

Purefoods ( Tender Juicy ) Hotdogs Yes, but Rarely Yes Yes Yes CDO Bibbo Hotdog Hotdogs Yes, but Rarely yes Yes Yes Swift Mighty Meaty Hotdogs Yes, but Rarely Yes Yes Yes

4. Mekeni positions strongly on low cost markets catering mostly to the provincial areas

Mekeni’s marketing opportunity is on increasing availability on a bigger market

Options available in more groceries and supermarket in the metro’s

Identify more distributing channels on provinces

More promotional ads both on print and commercial

5a. Based on DTI data, the Meat Preparation industry amounts to about P 32.4 B

The Philippine Processed Food Industry Meat preparations

In 2000, household spending on canned and uncanned meat preparations amounted to P32.4 billion (NSO-FIES). Uncanned meat (longanisa, tocino, chorizo, hotdog, tapa, etc.) accounted for about 70% of this amount, with the rest accounted for by canned meats (corned beef, luncheon meat, meat loaf, Vienna sausage, etc.).

The meat processing industry is expected to benefit from increased consumer spending and the expansion of the fast-food industry. San Miguel Purefoods Corp. is the top meat processor in the country accounting for more than half of the processed meat market. Swift Foods, Inc. is a far second with around 30%. Other players are Pacific Meat Company Inc., Virginia Foods, etc. These players cater mainly to the household sector and, to a lesser extent, the institutional markets.

http://itdibiz.com/ecatalog/index.php?option=com_content&task=view&id=85&Itemid=128&limit=1&limitstart=1

5b. Current Market Share on the Hotdog Industry

Pure Foods (SMC), which controls 66 % of the hot dog market and 20% of the canned goods sector, said its net income grew sixfold to P872 million from P143 million, and after revenues went up 2 percent to P18.2 billion from P17.8 billion

Swift Foods Inc holds 22 %the market share of processed meats.

More or less about 10-12 % is covered by other local players like, CDO (Bibbo Hotdog) Pampanga’s Best ( first in the market on Local production ) and Mekeni Food Corp both of which are breaking through at a national coverage

10http://www.manilastandardtoday.com/insideNews.htm?f=2010/may/15/news5.isx&d=2010/may/15

5c. Consumer data indicates a market size consumption of about P 98 Billion worth

Each Filipino consumes an average of seven kilos of hotdogs, corned beef and other processed meat products annually, according to a study by the Philippine Association of Meat Processors of the Philippines, Inc. (PAMPI). CDO is a member of PAMPI

85 M X 7 kg X P165 ( Tender Juicy retail Price /kg)

Total Sales Projection of : P 98,175,000,000

Legend:0-14 – 35 % of Population15- 64 – 60 % of population

http://www.philstar.com/Article.aspx?articleid=479791http://en.wikipedia.org/wiki/Demographics_of_the_Philippines

5. Concluded that the Total Potential Market of processed food business is approximately P 27 B revenue per annum

1. Competitor data= P 18 B (SMC)

2. Company data = P 800 Million

3. Usage data = P 98 B

http://sanmiguelpurefoods.com/www/SiteFiles/File/SMPF%20AR09.pdf

https://news.reportlinker.com/n01188424/Mekeni-aims-for-higher-sales.html

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The Marketing Mix Strategy

Part 2:Steps 6 to 10

6a. Meat Product Processing Industry remains to be one of the biggest industry in the country

6b. Mekeni Meat Products caters to the similar line of business with concentration on the provinces. Known to be a “AAA” and ISO accredited company.

Vacuum Sealed Packaging Variety of Processed Meat

Products Low priced Available in different sizes

and variants( regular, jumbo, cheese dog, chicken)

Different package size: 1 kg, 2.5kg bundle pack, retail disposal, 500kg

“AAA” marking ISO Accredited

7. Price War

165.00/kg

145.00/kg

137.00/kg

8a. Promotional Activities

http://aurengalang.blogspot.com/2010/06/my-mekeni-picnic-ads.html

• Mobile Announcements• Radio and TV Ads• Jingles• Free Food Taste in

Supermarkets• Direct Selling• Dealership• Event Sponsorship ( Concerts, Open Houses, Showrooms )

8b. Competitor’s promotions

http://aurengalang.blogspot.com/2010/06/puref00ds-tender-jucy-h0td0gs.html

Events!

Events!

Events

Catchy Product

Slogans!

Celebrity Endorsers!

CSR and SPONSORSHIPS!

Print Ads and Commercials!

Other Brands

http://aurengalang.blogspot.com/2010/06/funny-hotdog-commercial.html

9. Place of Distribution

Supermarkets, sari-sari stores Wet markets Widely distributed in REGION 3 and

nearby provinces Has Started to export products on

major cities in US, Canada and Parts of Middle East

Method of delivery: dealership, Direct Selling,Wet and Dry Markets

9. Mekeni is distributed Nationwide via dealership, distribution to local markets , and groceries

Supermarkets, sari-sari stores, convenience outlets, drugstores, market stalls

Nationwide Pick-up by customers Cash and Consignments Dealership

10. What is the generic winning strategy?

Low Cost Producer Supply and Distribution Leverage Differentiation Niche

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SUMMARY

Mekeni’s Marketing Strategy

5 Steps for Part 1 (PTM and Positioning)

1. Mekeni’s PTM are meat product lovers (especially hotdogs) from the B,C ,D, E Market

2. Who likes easy to prepare food during parties or even meals to be served especially to children and adults alike

3. With Choices that varies from highly competent companies like Purefoods (Hormel +SMC Food Corp), CDO, other local producers like Pampanga’s Best etc

4. Gap is focused on good pricing scheme for B,C, D to E consumers without sacrificing taste and quality

5. In a Philippine population that is roughly 90 million and a potential market of roughly 27 B Pesos.

http://www.thepigsite.com/articles/2164/philippine-pork-market-2008

5 Steps for Part 2(Marketing Mix & Strategy)

6. Hotdogs, tocino, Patties and other meat products

7. Is 10-20 % price difference lower than the premium brands

8. Uses local tv and print ads, radio commercial, mobile announcers

9. Is distributed nationwide with more penetration on the provincial areas

10. Uses a low price approach to win

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10 STEP Marketing Plan for Mekeni Food Product

Auren B. GalangJune 2010