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Industry Analysis of RFM Corporation

Industry Analysis of RFM Corporation

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Published by: Maybelyn Umali Catindig on Sep 19, 2012
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Catindig, Maybelyn U. BSEM 4-1 Prof.

Arcega “RFM Corporation” (Food and Beverages) The Microenvironment of the Business Competitors: Nestle, Magnolia, Alaska, Universal Robina, CDO, Pacific Meat Co. (Argentina brand) Factors affecting the competitive environment:        Market share Product/ brand quality Extent of product line Price competition Cost of raw materials Consumer preferences Effectiveness of advertising and promotion

The Macroenvironment 1. Socio-cultural factors  Filipino celebrations especially “kiddie parties” are not complete without spaghetti and ice-cream which are kids’ favorite meal.  The common and traditional breakfast meal of every Filipinos is hot pandesal made from the best and finest flours in the Philippines.  Philippines is a tropical country and frequently hit by calamities. In order to survive in times of strife and food shortage, stocking of canned goods are practiced by many Filipinos.  Nowadays, Filipinos are health conscious and practice daily exercise like jogging, sports, and gym so they need a more energizing type of drinks, and should drink plenty of juices for body maintenance. Technological factors  Online advertisement is the easiest way in reaching customers. Through social media, launching of new products is easily dispersed through the millions of people using social networking sites.  Online posting of company information and profile is the easiest way for the prospect clients to trace details about the company. Economic factors  Tariffs are being imposed on firms and corporations that import raw materials from other countries.  Electricity bill hike causes high cost in the business and will affect the prices of the products.  Poverty is being used as an opportunity to market products that the customer can afford. Political-legal factors  Subsidiaries are facing issues regarding brand names and patents. A lot of disclosures are being made but the general public are unaware and sometimes, leads to original brand confussion. 

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teenagers) Intermediary Convenience stores. grocery stores Competition: STRONG SUBSTITUTES and COMPLIMENTS -Powdered milks and juices (by liter) -Canned tuna and sardines -Local brands of icecreams: Creamline. -Maya -Knorr (Royal) -Del Monte Competition: STRONG CUSTOMERS Direct Household Students (children.Porter’s Five Forces of Competition NEW ENTRANTS -Milk Magic -Minute maid -Tropicana -Green leaf -Highlands corned beef -Dairy Queen Competition: MODERATE SUPPLIERS -Sunkist Growers (USA) -Agriculture. (Argentina brand) -Zest-O Corp. wheat farmlands -Poultry. meat products. supermarkets. ambulant ice-cream vendors Competition: STRONG . Dan Eric’s. Competition: MODERATE RIVAL FIRMS -Nestle -Magnolia -Alaska -Universal Robina -CDO -Pacific Meat Co.

Knorr(Royal). . NEW ENTRANTS Milk Magic – fresh milk Minute maid. Same product lines are offered such as corned beef. and also treats for the celebrations.RIVAL FIRMS Nestle The strongest among all the competitors. CUSTOMERS Direct: Household – food and beverages are the basic needs of a family. ice-creams. Purefoods and Pacific Meat Co. butter. and also to satisfy their wants out of their limited allowance/ budget. Children are the sources of ideas of the company on how to innovate their products.teenagers) – they are the target market of the company whom they dedicate their tagline “we love kids”. Del Monte Competitors in other products such as bottled green tea.Fish products are less in price than meat products because they have less cost. pasta and flour-based products or mixes. Students (children. Local brands of ice-cream such as Creamline. fast moving and quality that suits the needs of their guests/ shoppers. Alaska milk is the most trusted company in milk production. Tropicana – orange juice Highlands corned beef Green leaf – green tea Dairy Queen – ice-cream SUBSTITUTES AND COMPLIMENTS Powdered milks and litro-pack juices. Nestle has a wide range of product lines in foods and beverages industry. Magnolia and Alaska These two companies are the closest rivals in dairy products such as fresh milks and ice-creams. Zest-O Corp. Canned tuna and sardines. hotdogs.. supermarkets and grocery stores – they are in need of the products with high returns on investment. Mothers are usually the budget-makers and are also concern on the needs especially of the children for packed lunch for school. and the like. and has an established image in the industry. CDO. sausages. Dan Eric’s and ambulant ice-cream vendors. orange juice.These could be found in small communities and villages also available for franchise. and the like. Maya.These are far less cheaper in price and more practical. Intermediary: Convenience stores. Magnolia is also a well-known brand in milk production but offers other beverage products such as fruit juice. (Argentina) These are competitors in meat processing and canned goods. Universal Robina.

the shipping cost itself might not be too high. Agriculture. but the tariff and risk that there might be a tendency of delayed delivery is high. there were no reports of swine flu epidemic.RFM must have surely picked their trusted suppliers of poultry products because double-dead meats are quite rampant in the market.. Since it is imported raw materials. . meat and milk products. As of the present time.RFM has a brand franchising agreement in Sunkist USA and receives steady supply of oranges.SUPPLIERS Sunkist Growers (USA) Inc. Poultry. wheat farmlands – changes in the climate may affect the supply or the harvest of wheat especially during rainy seasons.

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