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MARKETING MANAGEMENT

FINAL PAPER
Submitted by: GROUP#1:

Al Feidrick Supapo Norkielle Tamayo Normalyn Bachar Lorenica Nabayra Arianna Maouna Bernado

Submitted to:
Ms. Jonna Baquillas

SITUATION ANALYSIS

A. Industry Trends

B. SWOT Analysis

C. Competitors

I. Situation Analysis
A. Industry Trends of Nissin Instant Mami It is a common knowledge that Nissin noodles belong to the preserved food that can be stored for a long time but its not that healthy to eat every day. What we see the most in the groceries are these foods but people keeps on buying these products. What now are the trends that issue to these preserved foods? These are the different environments that affect the total market of the preserved foods. We have the cultural environment, which has a big impact since the modern people nowadays are hooked on easy to cook but delicious meal. The pros of it sustain peoples convenience to have ready-to-eat meal. Also the media help also to sell these products by providing a good commercial and helping customer decide easily because they are showing the benefits and not the harms of it. So the cons of it are that people dont see what the side effect of eating it is. But why is it allowed? It is because of some political issues that gives them the authority to sell this products. What are the things that lower the market of the instant foods? Here is the health environment takes place, it lighten up the people what to eat and not. Love for instant noodles: As for the Instant noodles, which comes into different flavors becomes one of the first ready-to-eat foods launched widely in the global food industry and now it has successfully become an important part of modern lifestyle. Instant noodle has become a daily product in majority of the nations around the globe. Going into the trends of instant noodles, many are still devoted on these products. The different markets of it are first, the people who enjoy eating of it. One article from the inquirer about patronizing these products says that her craze for instant noodles are always there, always available in her shelves. Sometimes mixing up with an egg and there's the delicious meal. Second, the other target market is to lower class of the society, which made these instant noodles as substitute for their main dish. It was said on kamalayan.blogspot.com that galunggong is not the basis anymore as the food of the lower class, it is the instant noodles. These products are also convenient to carry. It was also used as donation if there are calamity victim and also for the outreach.

Health Concerns: Related to consumption of instant noodles on a regular basis does pose challenge to its demand. The manufacturers have answered to this by coming up with nutritional variants of this ready to eat food like what I said earlier. For its disadvantages, in some part of the world, instant noodles were even considered as junk foods. One serving of precooked noodles is high in carbohydrates but low in fiber, vitamins and minerals. According to the Codex Standards (FAO standards) for instant noodles, acid regulators, flavor enhancers, thickeners, humectants, colors, stabilizers, anti-oxidants, emulsifiers, flour treatment agents, preservatives and anti-caking agents are allowed to use in the making of instant noodles thus having a lot of preserve in it, was unhealthy to eat. Another issue rising for this is that Instant noodles contain a wax coating which is also used in the styro foam containers. That is why instant noodles don't stick together when cooking. Our body needs up to two days to clean the wax. Some people know the product disadvantages pertaining to health concerns and some are not knowledgeable but still it was patronize because it was driven by convenience, low cost and product variety.

Income effect: This economic condition influences the way consumers choose the product that they are going to purchase. It is highly applicable to people who earn minimum wages and are on a tight budget. These people feel that they are buying less than what they are earning. Every one peso only has 50 centavos as its equivalent value, or even less. A slight increase in prices greatly changes consumer purchase, even if it is only a slight change like centavos.

B. SWOT ANALYSIS
Nissin URC instant noodles Weaknesses Instant noodles offers poor nutritional value, it is high in fat and carbohydrates but low in vitamins and minerals Instant noodles contains high amounts of sodium which when consumed excessively can lead to heart disease, hypertension, and kidney damage Additives, coloring, and preservatives in instant noodles can affect the bodys metabolism Threats Intense competition in the market More people are becoming aware of the possible harm/s that regular consumption of instant noodles lead to Growing number of health conscious consumers Natural calamities that can affect raw materials used in instant noodles Rising cost of raw materials causes rise to production cost Imports of instant noodles which has a cheaper price

Strengths Instant noodles are very affordable Instant noodles are quick and easy to prepare making it convenient for busy people Instant noodles make an excellent side dish or even a meal Nissin offers different variety of flavors that attracts more consumers because consumers may have different tastes and/or preferences

Opportunities Increasing demand for convenience due to consumers fast paced and changing lifestyles During tough economic times, consumers seeking for lower priced meals can go for instant noodles Develop more flavors of instant noodles that can tickle tastes of consumers More promotions and advertising

C. Competitors
In the Philippines noodles category is one of the fastest growing segment of food industry. This is only means that this growth is set to continue or innovated by rising the volume sales of instant noodles which compromise 92% of noodles value sales,. Definitely this means that in the Philippines instant noodles remain very popular. Means that people will continue to patronize and really fell in love with the product. Because in a way or main reason is that the instant noodles are very quick and easy to cook. Instant noodles are in demand especially among middle income and low income consumers. Now lets take a look of the list of the companies in the Philippines that is selling noodles or instant noodles. Our group situational analysis are focused or study only for 2 prominent companies that competitors of the NISSIN INSTANT MAMI that manufactured in the Philippines by NISSIN-UNIVERSAL ROBINA CORPORATION.

KAINANG PAMILYA MAHALAGA Lucky Me! Is a main competitor of Nissin Instant Mami. Lucky Me is now serving excellent to the Filipinos for the past 29 years this is manufactured by Monde Nissin Corporation which is providing the best products and services to its customers. Lucky me is the major or top choice of the Filipinos in short its the no. 1 brand obviously lucky me target market is the Filipino family based on their tag line kainang pamilya mahalaga and most of their advertising is is about the family, in fact the recently advertisement or promotion of lucky me the endorser is Sharon Cuneta which invite the Filipinos family to join the National Family Day. This coming September 23 2013. This company always keep on moving because they really make sure that their product and services are improve especially their marketing and strategies . Lucky me have different variants or flavored there is lucky me instant chicken, instant beef, instant bulalo, pancit canton original, sweet and spicy, extra hot, calamansi that have chow main citrus, and lucky me Lomi. Their main ingredients for noodles are: -Wheat flour, -palm oil - salt - guar gum - sodium carbonate

-potassium carbonate - polyphosphates - antioxidant Ingredients for sauces are: -Coconut oil - soy sauce - sugar -artificial chicken flavor - MSG - salt - maltodextrin - spices - citric acid - hydrolized vegetable protein - caramel color - dehydrated chives - disodium 5'-guanylate - disodium 5'-inosinate = guar gum - antioxidant - preservative include natural ingredients which fortified with nutrients to make their consumer more enjoyable in their product. Net Weight: 2.29 oz Lucky Me given in affordable price. The lucky me beef, chicken and bulalo instant noodles SRP P10.00

FAST TO COOK! GOOD TO EAT! Maggi is the second largest competitor in instant noodles. Maggi was said to be the no. 1 instant noodle here in Philippines because they are providing a high quality of product and services for the past 29 years. A Maggi noodle is manufactured by Nestle under by instant noodles The creator of maggi instant noodles is in India. The target market of Maggi is the parents and children. They have a unique marketing strategies in microenvironment they not only target the children but also the parents that willing to give their children wants, and what makes their children happy. And most of all what is good for their children. Maggi was positioned as 2 minute cook. These is the most in demand product variant of Maggi instant noodles, The Maggi multigrain noodles its made with ragi, corn, jowar, and wheat. It also offers consumer multi gun benefits to its source of protein, calcium, fibre and has added vegetables. And the Net Weight 77g and Price : 10 Pesos

Product Strategy

A. Brand Name & Description B. Product Positioning C. Target Market


A.

BRAND NAME AND DESCRIPTION


Product Name: Nissin Instant Mami

Company Name: Nissin-Universal Robina Corporation

Nissin-Universal Robina Corporation begins at way back 1954, John Gokongwei is the trader and the importer of that URC. In year 1961 Consolidated Food Corporation was born, they manufactured Coffee blend, at this time this is the largest selling coffee brand in the market. In 1963, Robina farms was started to operate and manufactured a poultry products. And in year 1966, Universal Robina Corporation started to establish salty snacks industry like Chippy, Potato chips and Chiz curls under Jack and Jill brand. Universal Robina Corporation composed of Branded Consumer Food Groups (including their packaging), Argo-industrial Group (includes corn products, Robina Farm and Robichem), and the Commodities Group which includes Sugar and Flour division. Nissin is a Japanese company that makes instant ramen noodles. It was established on September 4, 1948 by Momofuku Ando in Japan. Chicken Ramen was the first instant noodle introduced by Nissin Food Product. He foresaw the rise of the fast-paced modern lifestyle in their post war society their daily habits were being

streamlined for speed and efficiency, and that included our eating habits. Momofuku Ando invented an instant noodle as a quality, convenient food product where you can put or add hot water and put some ingredients. Ando have a reason to create this kind of product because of the food shortage during the period of World War II. As years goes by, instant noodles become part of our daily live throughout the world. Ando also develop Cup Noodles, it is the First cup noodle type product. Through innovation and the continuous search for excellence, the delicious taste of Nissin Foods was quickly accepted by consumers all over the world. Nissin was the number 1 manufactured of instant food in Japan and become more popular because it brings great tastes to the world. According to Ando, Be detailed oriented, yet bold. Be very oriented in looking carefully at a situation and investigating it thoroughly, but if action is indicated, be bold and act fast. Ando also create a three Nissin Corporate Philosophy 1. Shoku soku se hei Peace will come to the world when people have enough to eat. 2. Bi Ken Ken Shoku - Intelligent eating for beauty and health 3. Shoku So I Sei - Creation of foods to serve society. This philosophys was created by Ando because he care a lot for the local people who suffered more after World War II, he realize the importance of food in our life as the basic needs f the human. The main ingredients in Instant Noodles consist of flour, starch, water, salt (or a salt substitute known as kan sui which is a mixture of sodium carbonate, sodium phosphate and potassium carbonate). Specific types of noodles can be made from a mix of wheat flour and other flour such as buckwheat. There are variations to the ingredients used depending on the country of origin in terms of the salt content and the flour content. Nissin Instant Mami came from different procedures and mixtures, though it Nissin Instant Mami have their different flavors, starting with the procedure of drying the noodles, putting its liquid seasonings, and as the texture will change/improve. Before doing the packaging with the seasonings workers need to double check the noodles if it is cooled after drying, the quality of moisture, color and the shape. There are a variety of flavors to the noodles depending on which ones are added to the seasoning, such as flavors including beef, chicken, pork, shrimp, oriental, etc. In instant noodle cups, soy protein and dehydrated vegetables and meats are often added for further flavor.

B.

PRODUCT POSITIONING It is important that customers always perceive ones product to be best. The plan

is to position the product that the customers and potential consumers see Nissin Instant Mami as an affordable product and at the same time, offers good quality. Consumers who wants a taste of seafood but don't have the luxury of time to cook and prepare those foods can opt for Nissin Instant Mami. The aim is to have a distinct advantage against the competitors that when they hear Nissin instant Mami, they will immediately think of their love ones and Nissin Instant Mami is something that can immediately satisfies hunger without the hassle of long preparations. In relating it to a commercial prepared wherein a married couple could be seen enjoying each others company while eating instant mami after a long tiring day. Which is true and many people can relate to a situation where everyone wants to unwind after a tiring day at work or during a stressful day. But this is not only applicable for couples; the proposed target market will be conditioned to think about Nissin Instant Mami when they do groceries because they can easily include instant noodles as part of their groceries. That during low budget times they can always go for instant noodles that can be considered as a meal.

C.

TARGET MARKET

Instant noodles are now popular globally it is really needed whenever you are feeling hungry and you are running out of time. Instant noodles are not only popular with high school and college students but also for those people could not afford more expensive foods and because instant noodles, which are usually cheap and the cultural environment which has a big impact since the modern people nowadays are hooked on easy to cook but delicious meal.

Many people eat instant noodles may they be old or young, in fact Nissin instant mami have a newly introduced flavor or variant they have already the easy to cook spaghetti and carbonara. But the bad thing about it is not everyone eats it on a daily basis, because theres a lot of studies and facts that it has an ingredients contains like the flavoring that can harm people on low sodium and not good for the health. Some people said that "The noodles themselves are pretty harmless," because of "flavor enhancer" that used to improve the taste of sweet, salty, bitter, or sour foods. Imagine that you are really satisfied with the product because of its deliciousness but behind of it there is a possibility of bad effect on people differently, depending on their health and if

they have an underlying conditions, or who are allergic to it. And people should be careful not to overdo it when it comes to the noodles,

When talking about the target market, it is very important to know your consumers who are really fit on it. But to be more specific on who to target in the market segments, instant noodles target market is the class DE or the bakya crowd. The Philippines is a 3rd world country and there are many informal settlers in the Philippines due to the tough economy. They have very low to no income, in this class they are lucky to eat at least thrice a day and because instant noodles are cheap people in this class make it a part or even their entire meal. They may know the disadvantages of eating instant noodles everyday but sometimes they have no choice or dont even care what they eat as long as they eat because of budget constraints. In fact most of their advertising and promotion target market is those who are really need a right budget that fit on their family needs and satisfied of. As a conclusion, Nissin Instant Mami is good but not all the time. It means that if you eat this regularly, bordering on excessive consumption, it will probably be bad for your health. Its like some most other products like alcohol beverages, this product should not be excessively eaten by people.

CONSUMER'S PROFILE

Arnel, a salesman Arnel is a busy person and he cant afford to waste time. He works day in and day out to meet with clients and customers of the company he works for to be able to get his commission. He is always on the go and has little time for relaxation.

Caloy, a construction worker Caloys wife works as a maid and they have 4 children. He and his wife earns at minimum wage thats why they are having a hard time providing for the needs of their family. They value money and try to save it as much as possible.

Jun-jun, a high school student Jun-jun studies in a government owned school. He spends almost half of his baon for transportation expenses so he does not have much money for food.

These personas are busy people and are constrained with low budget so they try to maximize every peso they spend.

Distribution, Pricing & Marketing Strategies

III. Distribution Strategy


Where will the product be sold?

The company will use intensive distribution strategy for Nissin Instant Mami, which means that the product will be placed in as many outlets as possible. It is very applicable mostly to products that consumers will buy frequently (fast moving consumer goods or FMCG) or in a variety of locations, and Nissin Instant Mami is under that category. Currently, it is marketed to the key cities and provinces all over Philippines. It will be distributed to the leading grocery retailers such as Puregold, SM supermarket, SM hypermarket, Super 8, Walter Mart Supermarket, and Ever Supermarket. Nissin Instant Mami will also be sold in convenience stores like, 7-Eleven, Select, and Mini Stop. This way, the people will not have a hard time to look and find for it, especially the informal settlers, who are the top consumers of pouch noodle soup because of their limited purchasing power, as well as the busy people who prefer easy to prepare food because of their fast-paced lifestyle. The products will also be distributed to independent small grocers (or more commonly known as sari-sari stores) in different key provinces such as Cebu, Bohol, Samar, Leyte, General Santos, and different parts of the Philippines so that the people who didnt know about Nissin Instant Mami will become more familiar when it comes to its tastes and image especially the people who really likes to eat noodles and are also on a tight budget. In the long run, the company seeks to expand sales through exporting Nissin Instant Mami to other Asian countries like Malaysia, Indonesia, Thailand and Singapore among others. While these countries may have their own local pouch noodle soup products, the company wishes to offer them a variety, something new and different, which will not only suit their taste but also suit their budget.

IV. Pricing Strategy


At what price will the product be selling? NET WT. NISSIN INSTANT MAMI 1.94 oz. (155g) COMPETITORS 1. LUCKY ME 2. PAYLESS 3. QUICK CHOW MAMI 1.94 oz. (155g) 1.94 oz. (155g) 1.94 oz. (155g) P 7.90 P 6.30 P 6.75 PRICE P 7.50.

Its affordable yet valuable because of the low price it offers that will in return give full satisfaction to its consumers. In comparison with our competitors, the price we offer is somewhere in the middle. We want our customers to have a perception that our product offers good quality at a fair price.

Nissin Instant Mami Pricing Strategies PSYCHOLOGICAL PRICING - Nissin gives psychological prices to its consumers, in a price of P7.50, it gives its consumer an idea that its just only P7.00 which is lower than it actually is but basically if you add 50 scents its already P 8.00. A lot of company use this kind of pricing strategy and proves that its really effective, and one of its company is the NISSIN UNIVERSAL ROBINA CORPORATION. Nissin Instant Mami does not have the lowest price in the market because the of its quality. And in comparison to the main competitor Lucky Me, which offers instant noodles at P7.90, Nissin is at a slightly lower price to have an advantage because consumers will perceive a product offered at P7.50 lower and more affordable than a product offered at P7.90. Because of the aforementioned income effect (see Industry Trend), a slight price difference of P0.40 centavos can make a difference in the companys sales and profits. COST-BASED PRICING - Nissin consider the price based on the cost for producing, distributing and selling the product plus a fair rate of return for its effort and risk.

V. Marketing Strategy
THREE ACTIONS FOR THE MARKETING STRATEGY: 1. Advertisement 2. Online Activities 3. Public Relation

I. Advertisement TV Commercials TV Commercials had been very effective to the Class C and Class DE consumers since TV is one of their primary sources of entertainment. They appreciate what they see and they also view everything in the TV as reality because they are much more gullible compared to other class. The group decided to make a TV commercial that can portray the reality of the target market in which indeed, they will be emotionally attached to the ad and at the same time to the product. The cost of this ad is expected to be lower than ordinary since the company would hire a non-celebrity to perform the act. The place was also shoot in a regular house. The cost will consist of payments to the crew of the shoot, the singer and composer of the background song, and most importantly to the TV station rate for the airing of the commercial.

The video that the group had made was about a regular office worker who was humiliated by his boss leaving him gloomy on his way home. On the contrary, his wife made a bright idea to serve him with Nissin Instant Mami knowing that it can make him feel a whole lot better. It only shows in this ad that no matter how bad and hard the life is, Nissin Instant Mami will always be there to make these people relax. As you can hear the background song, which is an original composed by the group, it says there, "Sandali lang, relax ka muna at humigop ng sabaw," which emphasizes unwinding. "Sa hirap ng buhay, nariyan kami, magpapakita ng pagkakaisa," this depicts the character of Nissin as something that they can rely on when they are depressed. The groups main

goal here is to make the people believe that Nissin Instant Mami is a great way to relieve their stress from the problems that they are encountering in their everyday life, in which the group believe that will suffice that need in this commercial ad.

Billboards Since every day from our home, we usually go to our schools, work and

wherever we want to go. Of course, there will always be a means of transportation whether private or public vehicle. As going on through the road, there will be always tendency to look around and what you usually see is the billboard along the way. The pictures will inflict to the minds of the consumer. The Nissin will place the billboards along the highways in main roads such as SLEX, NLEX, and EDSA.

Promotion and Endorsement In the settings of the Philippines, idolatry is really transparent to the culture of the Filipino people. Taking this advantage, the company will hire famous celebrities and public figure to endorse Nissin Instant Mami. The company will have a contract on them that whenever they are exposed to the public and have the chance to segue the product, they will talk about and brag about its goodness.

II. Online Activities Nowadays, many and many people are becoming a netizen due to the fact that internet are easy to access, there's a free wifi, an internet on the phone, broadband and many more. According to the news article that people nowadays are spending much of their time in the Internet. And one of the biggest percentage here is using their social networking accounts like Facebook, Twitter and Instagram. They are also fond of opening You Tube since it is easy to upload videos there. Taking these advantages, the Nissin company can use the potential market of these certain websites. The company will be focusing on two websites, Faceook and Youtube

In Facebook, The Nissin will make a fanpage of their own company. To gain more likers to continually broadcast their ads showing in the newsfeed of the netizens, the company will make an online competition in which anyone can join the said competition. People will be submitting their own photos eating Nissin Instant Noodles. The photo that has the most number of likes will be given an one month supply of Nissin Instant Noodles plus 30 thousand pesos. Before people can like the photo they should be liking first the page. In this way, many will be curious to the product and start to buy Nissin Instant noodles In Youtube, it is feasible to advertise the videos of Nissin Instant Mami which was played in TV ad of Nissin. The commercial will be played before the start of the video. In this case, any video in Youtube can be inserted by a commercial. The user can only skip the ad after 3 seconds in which they will be forced to watch the advertisement thus making them aware and feel the presence of the product

III. Public Relations Reputation is a fundamental quality of every organization. It can make or break a company, thats why our company would like to build good public relations. Wed like to win the hearts and opinions of the public, most especially our target market by strategically communicating and letting them know that our company not only provides products for them but we also care for their health and for the welfare of their lives. We want our company to build positive perception to our customers and our plan of action would be the following: 1. Feeding program by feeding impoverished people especially the youth, it will help us develop our public image and we will be able to feed our beloved customers. It will help our customers be reminded that when they feel hungry and they want an affordable food, they can go for Nissin instant noodles. In addition, by doing feeding programs it can help our company win customer loyalty. 2. Sponsorships- by sponsoring events our product would have more exposure and it can be an opportunity for other potential prospects to see our products.

3. Relief operations during natural calamities our company will help victims that need urgent help, we would like to take advantage of the fact that families opt for our products during times like floods where 4. Media relations collaborating with the media to inform the public in the mass media (newspapers, radio stations, news, etc.). We can also use mass media to inform the public about our activities. The goal is to maximize positive coverage about our product which keeps investors and stockholders happy.

APPENDIX Chapter I. http://www.fnri.dost.gov.ph/index.php?option=content&task=view&id=1061 http://www.kamalayan.blogspot.com/ http://lifestyle.inquirer.net/74722/why-i-love-canned-goods-instantnoodles-processed-products http://www.consumer.org.my/index.php/food/nutrition/132-stay-away-frominstant-noodles-to-keep-healthy http://www.pr-inside.com/global-instant-noodles-market-trendsr3704374.htm http://www.eeo.com.cn/ens/Industry/2010/12/15/189042.shtml http://www.myfilipinogrocery.com/filipino-noodles/19-lucky-me-pancitcanton-chilimansi.html http://www.alibaba.com/showroom/maggi-instant-noodles.html Chapter II. http://www2.urc.com.ph/company_history.html http://www.topramen.in/about_us.php http://en.wikipedia.org/wiki/Instant_noodles http://www.pr-inside.com/global-instant-noodles-market-trendsr3704374.htm http://www.eeo.com.cn/ens/Industry/2010/12/15/189042.shtml

Chapter III. http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htm http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htm

Chapter V. http://www.ipr.org.uk/pr-tools-and-techniques.html http://www.clarkcommunication.com/PRTips/Creating_PR_Plan.php http://www.nku.edu/~turney/prclass/readings/mkting.html