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Marketing Plan

Submitted by: Ang, Susan Qua, Ivy Guiaco, Deborah Ang, Charles Adrian Sy, Ritz Alvin Tolentino, Kenrich

Submitted to: Ms. Chan Maribel

Table of Content
I. II.

Executive Summary………………………………………..
A. Industry Study…………………………………………..

1 1

Current Product/Brand Situation……………………….... 1
B. Current Product/ Brand Situation…………………….. 3 C. Competitive Situation…………………………………... 6

III. IV. V.

SWOT Analysis…………………………………………….. 7 Goals and Objectives………………………………………. 8 Marketing Mix Strategies and Program………………….. 8
A. Market Targeting……………………………………...... 8 B. Product Development/ Innovation Program………....... 8 C. Pricing Program…………………………………………. 12 D. Sales and Distribution Program………………………... 14 E. Marketing Communication Program………………….. 14

VI. VII. VIII.

Investment Plans……………………………………………. 16 Evaluation of Result………………………………………… 16 Appendix……………………………………………………... 17

They are the main and frequent consumer of the product while the secondary targets are the parents and who consume less than the primary target. 2000 .I. Executive Summary Zest-o. Current Marketing Situation Analysis A. Through this they would be able to gain more customers and attract new ones. canned. we make it easy for them to have this iced tea instant drink that can be bought anywhere. We recommended one new product for Zest-o Corporation. And it also adds new variety to consumer’s choice. Industry Study: Fruit Juices The juice industry (those using natural or artificial fruit flavors) posted dramatic growth in the past five years. “ZESTEA”. anytime at its low cost and may enjoy the refreshing taste that suits for all at the same time. II. Due to the in demand approach of consumer to iced tea flavor. The market has four product types: the ready-to-drink (RTD). With the consumers becoming more health and budget conscious as well as improved distribution to the rural areas. Zestea is proposed to target those who love to drink iced tea in a more affordable way. on its 26 years of existence penetrated the local juice drink manufactured in 1981 by contract of licensing. They are now the number one juice in the industry capturing 80% of the market share nationwide. Zesto Corporation will try to keep hold of their lead as the number one juice dink in the upcoming years. They will try to increase their sales by distributing their products more and come up with new strategies. Product Usage: Snacks (baon) Party Outing 1 STRUCTURE OF JUICE DEMAND. The primary targets of Zest-o are children aging five to twelve years old. Ready-to-drink types such as the doy and tetra packs are around 35% and the remaining 5% are canned and concentrates. powdered and concentrates. The powdered juice segment comprises about 60% of the total juice market. the demand increased.

000 100 KEY PLAYERS IN THE JUICE INDUSTRY Company Brand Sugarland Multifoods Inc. (a) Kraft General Foods Inc. La Tondeña Distillers Inc (a) Selecta Dairy Products Phil. Inc. Health Foods Mfg. Zip Sunkist Hi-C Knott’s Berry Farm Fruit Shakes Del Monte.500 87. Sunburst. Zesto Corporation La Tondeña Distillers Inc. Inc. Today’s Dole. Procter & Gamble Phils. Big 250. Cold Mix Tang. B. Cenmaco. Canned Juices Del Monte Philippines Dole Philippines Inc. Foodworld Manufacturing Corp. Sunglo. Kool Aid Fresh N’ Ripe Sunkist Cetrin Nutri Delight Sunny Orange Ritchie Sunquick Nutrilicious Zest-O. Ponkana. Coca Cola Bottlers Phils. (a) Selecta Dairy Products..(a) Taiyu Food Products Inc. Inc.000 304.Item Powdered Ready-to-drink Doy pack Tetra pack Canned Concentrates TOTAL Category Powdered Juice Quantity (‘000 liters) 522.500 217.100 17. (a) Hunts-Universal Robina Corp. Harman Foods. Current Product/Brand Situation . Jumbo Magnolia. Plus Fun Chum Fruit-C. Eight O’Clock.400 Share (%) 60 35 25 10 3 2 870.000 26. Season Gina Zest-O 2 Liquid Concentrate Ready-to-drink (doy pack) Ready-to-drink (tetra pack) La Tondeña Distillers Inc. MV Food Industry Marina Sales Nutrilicious Food Inds.

0 Mi. It has always kept with the ideals of providing quality products at a reasonable price to its clients.0 Mi. for use. the . the No. Its latest acquisition of Plus! Juice Drinks solidify the market leadership of Zest-O Corporation to 80% of the total market ready to drink juices. the company also markets Sunglo Juice Drink in the innovative “sexy pouch” and Big 250 fruit drinks. sales continued to post double digit grown reaching total annual gross sales of Php 2. dairy and related food products that best satisfy the growing needs of the consumers. 3 Guided by the company’s philosophy of producing quality products at an affordable price and making it available to the most number of consumers. 1 Juice Drink in the Philippines. Established as SEMEXCO MARKETING CORPORATION. when it started. in 1987 after 6 ½ years of operation. it continued to grow reaching annual gross sales of Php 280.9 B for the year 2000 with a total asset of 850M. It started operation with a clear vision to be the leading food and beverage Filipino company competing with the multination companies.Mission: Our mission is to be the leading manufacturer and distributor of juices. The company pioneered the first ready-to-drink juice drink in flexible foil pouch (Doy Pack System) with its flair for innovation. Zest-O Corporation has posted enormous growth over the years. As the company continued to venture into different products. This. is the means by which we can effectively participate in the social and economic development of the communities we serve. With total assets of only Php 10. the company adopted the name of its flagship brand in 1995 taking pride in the phenomenal success of Zest-O. Over the past 20 years. Aside from Zest-O Juice Drink. History: Zest-O Corporation was established as privately owned Family Corporation in May 1981 to engage in the manufacture and distribution of food products in the Philippines. Zest-O has earned itself a place in the Filipino culture. Zest-O juice drinks won the consumers’ patronage and wide acceptance. promote professional growth and well-being of our employees. maintain mutually profitable relationship with our trade partners and achieve growth level equal to or better than the norms of the food industry.

fruit juice powder concentrate. With its vision in mind. Squiz. 4 The distribution channel of Zest-O orange juice drink Harman Foods Corporation (Producer) .company has successfully diversified into other products. Twist and Calamansi Soda w/ honey. Zest-O Corporation has ventured in different product categories over the years. It introduced unique products such as instant rice noodles. It has successfully entered each product segment both in terms of sales volume and patronage. Capturing a significant share of the market. The next 20 years is a big challenge for Zest-O Corporation to keep up with the changing market environment and to compete in the global economy. Ex-truck and Wet Market salesmen. Other products being marketed by Zest-O Corporation includes. Its client base is in the thousands. Bringing its innovative fervor every time. it has captured the third spot in the ranking with its unique product lines. Quickie and Magic brands. and tropical purees. tea drinks. Producing standard classics comparable to the leading brands at the same time introducing new age drinks using indigenous raw materials. canned nectar drinks. Zest-O Corporation handles directly nationwide distribution of its products with its 13 branches nationwide. It has also ventured in the carbonated drinks market. It also maintains a strong Sales force divided into Booking. the company operates four manufacturing plants located in Bulacan. directly servicing 80-90% of the total number of outlets nationwide. strategically located all over the country. Rootbeer. the company has always breath new life into each segment it enters. At present. Metro Manila and Cagayan De Oro City. The company is preparing not only for the local market but also making itself competitive internationally. It has entered in the instant noodles segment with the Quick Chow. The company has also positioned itself in the highly competitive soft drinks market using aluminum cans and PET (nonreturnable plastic) under the brand name of Zest-O Cola.

Local Distributors (Bulk breaker) | Sari-sari stores. Convenience Stores.| Zest-O Corporation (Wholesaler) | Supermarkets. Grocery Stores. income and location are enough to determine the target market of the product. But it has been observed by the group that the main focus of the Zest-O orange juice drinks are for ages 5-12. 5 C. Children ages 5-12 years old Secondary 1. sex. School canteens (Retailer) | Consumer (Final Consumer) Composition/Size/Market Segment Funchum 6% Sunkist 12% Others 2% Zest-O 80% Target Market (Primary and Secondary) Primary 1. Competitive Situation Zest-O Funchum Sunkist . Most mothers buy these orange juice drinks for the “baon” of their kids. mothers with kids The group focused on four out of the six demographics segment because these four segments which include age. The group thinks that the Zest-O orange juice drinks are for ages 5 and above since the product is a food and belongs to the convenience goods.

apple. grocery Print ads. guyabano. trade shows. mango. canteen. apple. mango. pineapple. canteen.25 – grape P 10. grapes. strawberry. 6 III. SWOT Analysis Strengths Implications . mango Orange. premiums.Product Flavor: Orange. discounts. dalandan. dalandan. Lemonade. calamansi. mangocalamasi and mangolemon-lime. in-store displays Supermarket.75 per juice drink (in Supermarket) it ranges from P5 to P7 (In retail stores) Supermarket.00 – mango P 11. billboard. canteen. apple. lycheeapple Size: 200mL P5. instore displays. samples. instore displays. Tutti Frutti. Size: 200mL P5. print ads. grocery contests.80 – mango The rest flavor is P5. mango-orange.20 Size: 250mL P12. grapes. pineapple. convenience store. convenience store.V advertising.25 – orange Price Place Promotion Supermarket. magazine ad. convenience store.40 – mango The rest P4. grocery T. TV advertisements Orange.

High population growth rate 2. Presence of substitute products 2. 3. Less attractive 2. It will be easier for the company to make some changes in their products for further improvement. Availability Weaknesses 1. more people will choose to buy zest-o because they are more affordable 4. the price might get affected 4. Raw materials 4. Advertisement 3. Packaging 2.it will increased the patronage and loyalty of the customer 2. 3.1. internet selling 5. Low price 4. it might affect in building a strong relationship with the consumers Implications 1. the price might increase 4.people may not be reminded about the product 3. arrival of new product 5. Customer will have more alternatives to choose 5. Wage increase 4. the company will be able to improve their products and they can also produce their product faster. High barriers to entry 4. Because of more advanced technology. challenges the company to make a better product Implications 1. Goals and Objectives Goals .competitors Threats 1. Indirect selling Opportunities 1. The sale of Zest-O juice drink might get affected and decrease. people will tend to buy cheaper products 3. the price might get increase 3. More chances for the company to increase their sales and obtain more customers 5. Less competitors 4. They can expand their market shares 2.we can increase sales because of more convenience to customers Implications 1. Rapid technological change 1. Economic crisis 3. Financially stable 3. 2. Positive image and Strong brand name 2. increase taxes 7 IV.

they don’t need to mix up the powder juice when it comes to “baon” B.• • • • • • • • • • • • • to maintain strong brand name to always provide a best quality products to meets the specific needs of consumer to maintain customer loyalty Short-term objectives (for the next fiscal year) To expand the target market by 5% To increase the market share by 5% To increase consumer awareness on Zest-O product by 10% Medium-term objectives (For the next 2 to 3 years) to increase the market share by 10% in year 2009 to increase 10% customer loyalty by 2010 Long-term objectives (for the next 3 to 5 years) to increase target market by 15% in 2011 to increase 20% customer loyalty 2012 V. Zest-O is the most affordable ready to drink juice that offers high quality and gives you the vitamin A and C. For those who had kids and busy in their work. 8 Product Positioning . Marketing Mix Strategies and Programs A. Market Targeting We are now targeting those people who are health conscious and those who had kids aged 5-12. For those who are health conscious they can get vitamins from fruit juices. Product Development/ Innovation Program Unique Selling Proposition For all individuals.

There are a lot of brands in the fruit juice industry. It is also known to assist the mother’s body in absorbing iron and can help the unborn baby develop strong bones and teeth. Regular: Zest-o Juice Nutrition Facts Serving Size: 200ml Serving Per Container: 1 Amount per Serving Calories 100 % Daily Values Total Fats 0g 0% Sodium 0mg 0% Total Carbohydrates 25g 8% Sugar 25g Protein 0g 0% Vitamin A 10% Vitamin C 33% Packaging Old Product New Product: Zestea Nutrition Facts Serving Size: 200ml Amount per Serving Calories 100 % Daily Values Total Fats 0g 0% Saturated Fat 0% Sodium 10mg 0% Total Carbohydrate 25g 8% Dietary Fiber 0g Sugar 25g Protein 0g 0% Vitamin C 100% 9 . grocery stores. It is because of its high quality and its affordable price and also its availability. but Zest-O seems to be the most powerful among the other brands. supermarkets and shopping malls. It’s also been proven that a glass of orange juice each day results in a 25% reduced risk for ischemic stroke. Zest-O orange juice drinks are bought routinely because it is a consumer convenient good. While Vitamin A helps you maintain good eyesight. Product Features The Vitamin C and Vitamin A are found in this refreshing drink. It can be found almost anywhere and these include sari-sari stores. Vitamin C helps the body fight infection like colds and flu and is essential for tissue repair as well as wound and bone healing.

shipping and label packaging. Figure z shows the primary package of the Zest-O orange juice drinks. The enhancements added to the product by the packaging are 1) its recyclable feature (both the foil pack and the rectangular box). specifically parents for their children to benefit from it. is printed in the upper left side of the package where it informs the buyers. “Twenty five years Masarap Kasama”. When these orange juices are shipped. The chart of nutrition facts can be read at the back of the Zest-O orange juice foil pack that notifies consumers about the content of the juice. 3) its flexibility which allows the orange drink to be easily squeezed out from the package when drinking. they are placed in a rectangular box (10 pieces per 1 box). These labels include the brand name. The text. even the whole market about its success in surviving the competition in the market. 10 . Figure y shows the shipping package of the Zest-O orange juice drinks. With regards to the packaging of a single Zest-O orange juice drink. the logo. The package also serves as protection for the Zest-O orange juice drink. The boxes protects the Zest-O orange juice foil packs during shipment. The foil pack is very adaptable to every movement that it doesn’t break easily because it is flexible yet strong enough. The vitamins present and natural orange juice content (With Vitamin A&C. furthermore the boxes make it easier for storing the product in bundles.The packaging of the Zest-O orange juice drinks provides promotion of the products through the labels found on it. contains natural orange juice!) boldly printed in the pack of the juice gets the attention of buyers. This type of packaging also prevents the juice from leaking out from the package. The primary package of the Zest-O orange juice drink is the foil inside the doy pack since it is the package that immediately envelopes the orange juice drink. The foil also prevents the orange juice from losing its flavor and from spoiling. the Zest-O orange juice drinks are packaged into 4 types: primary. the manufacturer. secondary. Like other products. the foil pack or doy pack preserves the flavor of the juice thus prevents it from spoiling. the image of the oranges (tells what flavor the juice drink is). 2) its quality check. The foil inside is non-absorbent so the orange juice drink does not spill out. the expiration date and the bar code (speeds up the transaction process). 4)the non-toxicity of the foil and 5) its ready-to-drink feature.

The labels consist of the product design. nutritional information and etc). color. The brand name. It is shaped like two slanted parallelograms joined together with an oval-shaped base. The shipping package of the Zest-O orange juice drinks is the rectangular box in which 10 pieces of the Zest-O orange juice drinks are placed. The rectangular box also makes it easier to store the products and it also serves as additional protection of the foil packs. the bar code and the product features (natural orange juice and with vitamins A and C) are located at the front side of the package. The product design refers to the overall appearance and shape of the package. the expiration date and other details about the product (ingredients. contents. As seen in both figure y and z. the nutritional facts and other product features (recyclable. product usage. logo of the brand name. brand logo. weight. Without this rectangular box. the weight of the package which is 200 ml can be found at lower left corner of the package. brand name. the ingredients. New Product 11 .The secondary package of the Zest-O orange juice drinks is the doy pack or foil pack itself which is the outer covering into which the primary package and the orange drink is placed. The manufacturer. the name of the manufacturer. Also. the expiration date. The product design of the Zest-O orange juice drinks is innovative due to the use of doy packs or foil packs. An image of the fruit that represents the flavor of the juice drink also makes the appearance of the product more attractive. The foil pack contains two distinct colors: the front side is colored blue and the back side is colored silver. The secondary package (the foil packs) serves as physical protection of the product. it would be difficult to ship and store these orange juice drinks. brand logo. Figure xx shows the labeling of the Zest-O orange juice drinks. quality check) are located at the back side of the package. both packages contain similar labels.

669.50 1.98 648210.50 12 .130.67 2204748.82 2213968. because of its aluminum foil like in tetra pack which in the inserted part of the package.91 3468144.714.049.66 2300103. This is the sum of variable and fixed cost for any given level of production Fixed Cost Variable Cost Total Cost P 148. but it will be more comfortable to use by the customers.36 3096557.279.53 44929091. Fixed Cost: Salaries and Wages General and Administrative Expenses Selling expenses Gasoline and Oil Repair and Maintenance Transportation Representation and Entertainment Miscellaneous Expenses Office Supplies Communication SSS Contribution Pag-Ibig Fund Contribution Depreciation Expenses Power.74 26287832. Total Variable Cost P 1.23 3542461.76 1954710. and it also will be more eye-catching to the people due to its attractive color C.47 2592916.907.334.714 The third type of cost is the TOTAL COST.761.334.42 6575623.07 2702670. Light and Water Security Services Repack and Packaging Rent Expenses Advertising and Promotion P 17002959.24 29843472.62 496938.50 The second kind of cost is the VARIABLE COST.130.00 P 1. Pricing Program The first type of cost is the fixed cost.The new packaging of Zestea will still be in doy pack form. This is a type of cost that varies directly with the level of production.68 Total Fixed Cost: P 148.907. This is a kind of cost that does not vary in the production and sales level.761.74 2515067.

And the second way is by providing a large budget for their promotional strategy in order to introduce the old and new product swiftly and effectively.1090 or 10.44/ 1.366.8275 or 82. consumer will still prefer to buy these goods because they can be guaranteed that Zest-O product will attain its satisfaction.90% Variables Cost Fixed Cost Profit Selling Price ZESTEA Mark-up Price = 4.. First way is to continue keeping the excellent and delicious taste of the product or to develop it more by suggesting and introducing more flavors in their product line based on their customers preferences although their pricing might increase a little with a nutrition given by the product.372.75% Fixed Cost = Total Expense/ Sales = 148.366.31 P4.35% 13 .907.002 = 0. It can be through magazine.130.372.9 Objectives The Zest-o committed to manufacture and to deliver a well competitive product that can provide consumer satisfaction due to its favorable taste for all. P 3.75% 10.93 P 0.Computation of Selling Price Regular Zest-o Juice Variable Cost = Cost of good sold/Sales = 1.50/ 1.75 82.51 P 0. Mix Strategy Competition in food and beverage industry is rapidly growing over the years and Zest-O being the most dominating product in line make food and beverage should effectively position its product to be able to retain and defend then lead among other competitors.002 = 0.761.334.714/1.90% 6.10 = P 4.

Sales targets by target market or geographic areas The target market of the Zest-O Corporation is upper. convenience store. the reseller will have his 5% discount for his next purchase. 1 week to order. Target Audience .Zest-O Corporation makes use of poster as their means of communicating with their audience. middle and lower class of the socio-economic group and recommends it throughout the country. So people can easily find and buy the product. .D. Sales and Distribution Program Policies For a reseller that has achieved its given quota within 60 days. • 14 . Marketing Communication Program 1. can pay either check or cash (full payment) Quota: minimum of 800 boxes within 60 days. Advertising Program • Objective . we recommend our product to supermarket nationwide. sari-sari store. Extent/ Terms of Distribution Our major selling area.To remind the people of the existence of the product. 3 days before delivery.To inform the people about the new product. because it can view everywhere and it will inform the people about the new product and will remind the people of the existing product. .Enhance the selling power of the company’s product. E.

2007 Publication PMC Printing Press Size of Advertisement 18” x 25” • 2. Sales Promotion Program • • Objective . we’re trying to introduce a new product.In our poster.Metro Manila 15 . Media Planning Date October 15. A representation of an ice tea that make it refreshing and mouth-watering. We create a new catching name “Zestea” for it to be easily remembered and combine the name of the product Zest-o and ice tea.• Creative Approach . so we made its background more stylish and eye-catching colors to attract more customers.To capture many distributors and satisfy customers Coverage .

To associate the brand name with the publics . Public Relations Program • Objective .168.Donating 20.Donated 50.35 16 .000.00 P 80. PR materials to be used and costing . Investment Plans Promotion and Advertisement expense GMA Donation Cost of juice donated Total Cost: Net income after tax VII.000 php Schedule .To build more awareness of Zest-O product in the publics Strategies .168. .00 P 88.“Calamity” when needed • • • VI.Donating food supplies worth 30.For the month of December 3.• Promo Schedule .To build a better corporate image .000. P 3.000. Evaluation of Result Zestea marketer committee have decided to start the promotion of this newly introduce product primarily in NCR on October 15. They will also provide juices in some charity program.000 pieces of Zestea to Bantay bata 163 on their Christmas party. so that the new product will be known by the people before the Christmas season. we will evaluate the sales of the new product (Zestea).Along December 2007 .00 P 3. 2007.00 P 18. As a promotion of Zestea we will be using poster and displaying the new product on the entire supermarket in NCR. . after six months.000.969. The company plan to donate money in selected charities. If it clicks effectively to the market we will expand it nation wide.000.Zest-O comes up with an activity in order to build a strong relationship with the public.000 pesos to kapuso foundation.

com.expertrade. Appendices Sources: http://www.aspx http://www.aspx Figure x: The doypack or foil packs used for packaging Zest-O orange juice drink.professorhouse.psma. Figure y: This rectangular box is the shipping package of the product.%20Chapter%204.professorhouse.bharatbook.%20Analysis%20&%20Projections%20of %20Domestic%20Demand/08.ph/studies/studies/01. 17 .VIII.asp?bookid=11010&publisher= http://www.DOC Source: CFA-UA&P Estimates Source: CFA Databank http://www.com.com/food-beverage/beverages/orange-juice.ph/zesto/ http://www.com/bookdetail.com/food-beverage/beverages/orange-juice.

Figure xx: This image shows the labels that can be found in the package of the product. The back and the front view of the packaging for the new product “ZESTEA” 18 .Figure z: This foil is the primary package which immediately wraps the product.

Sample picture of the poster 19 .