Professional Documents
Culture Documents
Lemon Square Company has variety of healthy snack products that is delicious
yet inexpensive baked-shop quality bread, cakes and pastries. According to Nielsen
Retail Sales 2014, a survey was conducted in the Philippines which has a result saying
that 74% of the Filipinos love bread and pastries as their snack.
Over the last eight years, double-digit growth has always been the target of
Lemon Square Company. And in the next five years, that will still be the target by
focusing more on Visayas and Mindanao part of the country to achieve the goal which is
to be the best and top 1 baked cake maker, in addition to that is the Filipino community
outside the country is also large. Healthy and affordable snack for school, home, picnic
and even parties.
Back in 1985, Lemon Square had its modest beginnings by offering local
communities a small selection of homemade-style baked goods. Over the years, its
growing popularity & consumer base turned Lemon Square into one of the largest
producers of quality baked products in the Philippines, offering the largest & most
diverse product line to a mass market of millions. As a 100% Filipino-owned company,
Lemon Square attained its position by understanding the tastes of its consumers. From
the very start, Lemon Square’s vision of providing people with delicious yet inexpensive
bakeshop-quality bread, cakes and pastries in the convenience of their favorite
supermarkets and stores has been the foundation of its success. As the company
grows, the company is already on its maturity stage. As per owner, though company is
already known all over the country, they also wanted to be the top maker of baked
cakes in the country. They are now focusing more on Visayas and Mindanao part of the
country. They are also targeting Filipinos outside the country and will introduce the
product as “pasalubong” for our Filipino community all over the world.
1.4 Seasonality
The product had been introduced as school snack as it is healthy and tasty and
also the reason why product is available always. But the demand of the product that
was recorded when it usually at peak is every start of the school year. They are now
introducing the product as a “pasalubong” so that even every vacation of the students,
Lemon Square Cheesecake can also be an option that will come to the customer’s
mind.
1.5 Profits
2. Category factors
2.1 Threat of new entrants/exists
Lemon Square Cheese Cake has high bargaining power of buyers meaning this
is unattractive to the product. It is because the product has a lot of competitor. Company
should be very sensitive in pricing since features of product can also be found to other
substitutes and other alternative cupcakes are available in the market. Products are
also distributed to groceries, supermarkets, convenience stores, and sari-sari stores,
where priced are already printed and declared during purchases giving customers no
other way to bargain.
Raw ingredients of the product can be found easily and is available on different
place inside the country. Bargaining power of suppliers is attractive to the product for
they cannot just predict price since other alternative suppliers is available anytime,
ingredients can either import or buy locally. And because manufacturers buy in volume,
their bargaining power increases as their order, too, increases, getting a much lower
price.
Lemon Square Cheese Cake was introduced as snack for kids to their schools.
Though cheese cake is the usual snack that moms prefer as it is tasty at the same time
healthy, a lot of alternative snack is available in the market and competition is very tight
due to new technologies. For this product under this category, analyzation was found
out to be unattractive. Company should be very competitive and aware of those new
features that might make them undifferentiated.
Since this product and ingredients were perishable, company was able to control
all product that were produced and stocked. Product is also available on all stores like
grocery, supermarket and sari-sari stores.
Leading competitors were Rebisco Company with its Cupp Keyk Cheesy Melt
and Monde Mamon of Nissin since these the biggest company that has the same
category as Lemon Square that is known for kids snack at school and at home, also for
picnic and kids’ parties.
3. Environmental
3.1 Technological
Due to the increase of competitors, technological change was seen through the
cutting-edge research and development departments created by these companies to
create innovative products to serve the Filipino consumers better. More variations are
now present to distinctly stand out from competition.
3.2 Government
Due to the rising cost of raw materials such as flour and sugar, packaging
materials, fuel, and electricity costs, Big “E” finds it challenging to reach its targets since
Lemon square highly depend on volume to be able to generate good profit. And there
are no current legislations that help brings down the prices of these basic commodities
3.3 Economic
There is an issue that the growing consumer spending for transportation and
communications attributed mainly to spending on cell phone cards which are eating into
the consumer’s limited disposable income. However, Big E sees the country’s economic
difficulties could be an opportunity for growth as more consumers turn to packaged
bread, cupcakes and cookies as alternative “merienda” meals.
3.4 Social
B. Competitor Analysis
1. Company Background
Lemon Square's owner Dulce had always dreamed of producing the best-tasting
and the highest-quality cupcakes in the Philippines, and to make these available to
millions of Filipinos at a very reasonable price. She had worked on the vision for Lemon
Square in her college thesis in 1980. Lemon Square had its humble beginnings in 1985
when it started to offer local communities a small selection of homemade-style baked
goods. Then newly-married Dulce began baking cakes to sell to her friends. Word-of-
mouth soon became the primary driving force for her cakes as demand went through
the roof. She and her husband Errol soon had to buy more cake-making machines, hire
more people, increase production and enhance its variety to keep up with demand and
to cater to the preferences of the market. In 1991, Lemon Square had to build a larger
building to accommodate its booming operation. In 1995, Lemon Square had to
thoroughly modernize its operations to keep up with the times. It did so by acquiring a
state-of-the-art baking system that enhanced its production and efficiency. Lemon
Square also adopted the latest packaging techniques used by bakers the world over.
Dulce's passion for sharing freshly-baked, high-quality goodies to her countrymen led
her to embark on another project, Frostings Cupcakes. These retail stores offer the
best-tasting cupcakes made and prepared using the same high-quality standards
employed by Lemon Square. Headed by Dulce's son Ernest, Frostings Cupcakes are
found in major malls and department stores. From its modest beginnings, Lemon
Square has steadily grown in popularity and has expanded its customer base. This is
due largely to its understanding of the tastes and preferences of its consumers. Lemon
Square is now one of the largest producers of quality baked goods in the Philippines,
offering the largest and most diverse.
2. Founder
3. Management Team
Name Title
Ej Vergel de Dios Marketing Manager
Ging Gozar Marketing Director
Rina Lozada Brand Managers
Hyacinth Leang Assistant Brand Manager
Tony Sarmiento Chief Creative Officer
Marion Esquillo Creative Director
Janlo Cui Business Director
Account Director Paulo Parel
Jan Parma Producer
Name Title
Chester Cajucom - Uy Marketing Director
Elry Ney Suzara Brand Manager
Rufino Tiam – Lee Vice President
Henry Soesanto President
4. Mission/Vision
Mission
To provide delicious and nutritious food for the Filipino
Vision
To create tasty, convenient, healthy and thoroughly enjoyable food
products from the bounty of nature’s goodness.
Mission
Explore and enter new markets to build and intensify our business.
Innovate our products and services to meet the dynamic needs of
consumers. Ensure availability of our products in all channels of
distribution. Develop our capability in people, systems and productive
work environment. Constantly seek improvement and upgrade facilities to
achieve international standards of quality and cost-effectiveness. Provide
support in the communities where we operate to contribute and be part of
Nation Building.
Vision
To be a well-loved food company, built on family values, that provides
delightful meals for everyone, while leaving a positive impact on our
community.
Mission
Vision
We are a food company most admired for its agility and innovation.
7. Target Market
– 50 years’ old
Social classes AB, C, D & E, from kids to teens to elders (regardless of
marital status)
Varies from working professionals to full time mothers
Health-conscious people.
To kids who wants to enjoy eating conveniently together with their friends
and loved ones.
Lemon Square aims to produce the best-tasting and the highest-quality cupcakes
in the Philippines, and to make these available to millions of Filipinos at a very
reasonable price.
The biscuit that the business will produce provides the health benefits of fruits.
As it provides nearly all of the vitamins and minerals required for good health, most of
them contain complex carbohydrates which provide energy. They also contain no
cholesterol, have little or no fat, and are low in calories. The fruit biscuit product of
Rebisco ensures that their consumers will get proper nutrition from its ingredients.
Delicious and very affordable, you get more than your money’s worth with Rebisco
Cupp Keyk. As a quick fix for meals, these are satisfying but still light on your waist line.
Its calorie content is just enough to keep their energy up but is not too much to be
fattening.
It is the very first premium-quality baked sponge cake in the Philippines that is
made from real eggs and imported wheat flour and milk, the Mamon is fluffy, moist and
light, with just the right amount of sweetness to make it the ideal everyday snack or treat
and have different flavors of fillings to choose from. “Filipinos have naturally
compassionate hearts, or pusong-mamon” is what it is symbolizes.
9. Marketing Mix
Product
Price
Placement
Convenient Store
Grocery Store
Supermarket
Sari-sari stores
Intensive Distribution
Promotion
Product
Cupcakes with toppings or mixed-in ingredients made with the finest baking
expertise that offers a wide selection of delectable and mouthwatering cupcakes
and was in metallized foil packaging to ensure sealed-in freshness for pantry
stocking and "pasalubong".
Price
Placement
Convenient Store
Grocery Store
Supermarket
Sari-sari stores
Intensive Distribution
Promotion
Product
Price
Placement
Convenient Store
Grocery Store
Supermarket
Sari-sari stores
Promotion
Commercials on radio and TV that focuses on giving Monde Special Mamon
Classis as a treat for Filipinos that is tough that resulted in many years of hard-
working and sacrifice for the people we love. This could also be a filipino
traditions like the “pagsalubong” more valuable and an ideal for everyday snack.
Freebies and discount at supermarkets and grocery stores for bulk orders.
Tarpaulin and billboards for new variety of Monde Special Mamon classic.
Lemon Square is the only shop who offer premium high quality cheesecake
products in the Philippines added some flavours that match the taste and
Lemon Square offer sweets and foods that cater the diabetics and dieters
Lemon Square offers dessert made with sweetened soft Cheese mixed with
cream and eggs on a cracker-crumb or pastry base with added ingredients for
First cupcake brand to offer a Filipino-based flavor and was the first to come out
in metallized foil pack to ensure sealed-in freshness.
Monde baked goods are expertly prepared and packaged to seal in its delicious-
Rebisco is now targeting our Filipino community all over the world so
International Business Group (IBG) is in partnership with its distributors to reach
customers around the world while securing all products in safe and well
organized packages.
Through the IBG, overseas trade partners can avail of Rebisco’s one-stop-shop
service.
Their team ensures that quality product will be delivered to the consumers to the
right location on time through the utilization of top-the-line system and
procedures in warehousing, transporting and monitoring of flow of goods.
Ability to market
Big “E” food corp. rarely uses prints and billboards to communicate others
products to consumers
They localize their portfolio and promotions based on the unique consumer
needs per country.
They are constantly seeking improvement and upgrading abilities to achieve
international market through their manufacturing facility, complete with a sales
and marketing force on each country all over the world.
Their team is committed to creating and bringing brand/ building initiatives to life.
Brand champion team up with internal and external partners to ensure creative
implementation and successful execution of a brand or idea.
They find ways to strengthen and make each product within the portfolio relatable
to the consumers through incentives market research, strategic brand
management and effective communication.
Ability to finance
Offering the largest and most diverse product line to the Filipino mass market.
They are ensuring that complete team for manufacturing, slaes and marketing
force is enough for operations, as a proof, total operations in Vietnam have
steadily doubled its sales in the past five years.
The finance team creates value by being involve in every aspect of the business
as they monitor progress and project development to ensure exceptional
business performances.
Ability to manage
Ability to charge higher prices for their products because consumers place
additional value in the brand
Rebisco Cupp Keyk
Rebisco brand is the pioneering manufacturer of ready-made cake and first did to
sealed products on metallized foil pack which made their name so popular as of
today not just to customer but to other distributors that wants to make partnership
with them.
As customers grow big, so is the company and the team. They are ensuring that
every step will be effective and efficient.
Current Strategy
To develop marketing-leading brand across all our chosen food categories for
new market around the world
To create programs that would address poverty by first targeting the basic social
unit. Providing delectable, delicious and healthy snack that can also be a
“pasalubong” to our families because of its affordable price yet classy packages
and value customers have from its brand name.
Lemon Square will take the advantage and registered it and became certified
HALAL products that can be easily distributed to ASEAN countries and around
the world.
To Form a new specific market segment that is everywhere in the country and
that can people relate to such as: students / employees/taxi or jeepney drivers/
entrepreneurs.
To Export the products to countries with still zero exposure about the brand.
C. Customer Analysis
The data gathered through an online survey that was conducted on different
types of customer. The survey has a 30 respondents per products that seeks their
willingness to answer the seven questions based on their knowledge and judgement on
the product.
The customers are 51% of Male and 49% of Female ages 15 years old and
above with the classes of ABCD&E that has a status of the following; single, married,
students and employed and living in both rural and urban areas. Those people are the
health – conscious who tested their chosen product based on its features such as the
price, size, taste, freshness and the vitamins content.
Most of the customers are students who like the product for school snacks but
the buyers who really chooses the product before purchasing it are mothers. From
classes of A, B, C, D and E, mothers wanted to choose the best for their family. They
wanted the product which they believe and trust, proven with its taste health benefits
and inexpensive prices with a lot of variety of flavors.
The customers are Male and Female ages 13 years old and above who live in
both rural and urban areas with the classes of ABCD&E. They are student, employed,
single and married. Those people are health - conscious people who preferred a right
amount of sweetness. It has a 12 grams’ sugar that the customers remained their sugar
level on their body.
2. What do they buy?
Lemon Square Cheesecake made by fresh ingredients that make the customers
satisfied as well. It has a 3g total fat and low carbs which has a 17g that the customers
can maintain a healthy weight. Among the three competitive Lemon Square
Cheesecake have a highest iron that the baby's needs on their body because of its milk.
Rebisco cupp keyk has only 130g of calories which is not that much for a single
meal and also not fatty. Sugar content is either little or no at all. Cupp Keyk has also
different flavors that is very tasty and yet affordable. Aside from its price, though it’s not
that far from competitor’s prices, Rebisco brand that is really known among them when
it comes to snack.
Rebisco is well known brand for snack and is always available on all big and
even small retail stores. Most of the customers buy in packs at grocery stores and
supermarkets while sari-sari stores are preferred when it comes to pieces. Most of the
students who chose Rebisco Cupp Keyk are the ones who buys at small retail stores
while mothers are the ones who buys in pack at big retail stores.
Based on the data gathered, the consumers mostly purchase lemon square cheesecake
on the supermarket and purchasing it by pack, employees are those purchase the
product once a month which got of 48% and 17% of the employees preferred to
purchase on the same date of their payout which is twice a month. Mothers got 31%
which purchase it once a week. Student got 1% and purchase it daily on sari-sari store.
Purchases by packs were in demand every start of school year but for daily
purchases, mostly, they prefer to buy at afternoon since this is in the category under
snack. Another reason is that this can also be a "pasalubong", wherein elder mostly
females and mothers used to buy after their work. Many also choses to buy packs once
a month that is good for their monthly snack same time when their doing groceries for
their necessity at home
Mamon Monde Nissin
They buy during snack time, weekly or monthly grocery time and recess/break
time in school. Mother’s usually bring their kids during grocery time and since children
often see the product in TV commercial they become familiar to the product and
demand to buy it.
Consumers always look the cheaper price but makes them satisfied. Among 57%
choose the product base on the price, 25% of them are the health-conscious people
that choose no sugar content, 10% of them preferred low calories. The 5% of them
choose the Packaging/Physical attributes and the lowest percentage which is 3%
choose the product base on its size.
They always prefer inexpensive snack but delicious and at the same time healthy
with choices of flavors. Rebisco Cupp Keyk comes with a lot of different flavors and
available on every retail store. They make choice on where they know their money will
be worthy to spend and will not make them feel the same way every time their
purchasing it since it has different flavors they can try.
Monde Special Mamon is the newest bread from the Monde Nissin Corporation.
It is sold in a 2pcs. pack or in a 6 pcs. pack. And, it is really the same size with that of
the common mamon being sold in bakeries.
Consumers preferred lemon square cheesecake because of its pride, and known as
most popular cupcake in the Philippines. Most of them choose the product because as
per them it makes them satisfied on the taste which got of 79%. The 11% choose the
product because of its high quality and 10% of them are the health conscious people.
Aside from their trust on the brand since this is the very first company who sells
bread and cake snack and its variety of flavors. We could also consider the influence of
the child star or artist who endorse the product like Baby Baste from “Eat Bulaga” and
some children who appears in some “teleserye” of different channels on TV.
Monde Special Mamon is not like the usual mamon though. It's expiration date is
very long that you can store as much as you want. Plus, it has this yummy goodness
that suits everyone's taste buds. Well, it must be because it is made with real fresh
eggs, and other imported ingredients. It might look so ordinary but, you can say that it is
still exceptional. It has a golden color and a fluffy feel. And when you taste it, you can
say that it is a satisfying bread and not just some airy one.
Based on the data we gathered the consumers responds on their marketing program
through recommending on online, giving them a positive or negative feedbacks that
helps the product improvement. The 65% of them responds through online interaction
for immediate feedback and response and the 35% of them are defends on their beliefs
on the brand.
TV viewers respond positively especially kids from age 10-16 years old. In
groceries, children point the product whenever cart pass through or took some part and
ask her help.
D. Objectives
Marketing Objectives
The company want to strive the increase of its probability by develop more
products, more satisfactions and loyal customers by nourishing them with good quality.
The company want their workforce to be recognized the commitment and quality
because they believe that these are the essential to success.
Time frame
Lemon Square Cheese cake maker is aiming on doubling the digit of its growth
for the next five years and it will be by means of ensuring that Lemon Square is still on
top and improving distribution on provinces. By the next year, we are looking forward on
bringing up the ROI by 20% and increase earnings per share by at least 10%. Since
Lemon Square is also starting to now cater other Asian countries, brand awareness
locally must be met in the next years by 80%.
Brand Equity
Lemon Square Corporation is one of the top Filipino brands that was given the
prestigious Super brands award by the Super brands Asia organization. In order to
remain there on top, they are continuously pursued their passion of baking real
goodness and making these available to millions of Filipinos. They meet the criteria that
included market dominance, customer loyalty, longevity, goodwill and overall market
acceptance. Lemon Square was already established a factory in Malaysia and aiming to
extend the market to other countries that under the ASEAN trade agreement.
Customer
Lemon Square is now one of the largest producers of quality baked goods in the
Philippines offering the largest and most diverse product line to the Filipino mass
market. Since the company just started to expand their market on other Asian countries,
the company is planning to expand their target market on the closest continent such as
the Europeans and Africans countries. LSC will introduce Lemon Square cheesecake
that has a made by fresh ingredients with high quality premium taste that the consumers
look for.
New Product
Lemon Square launched their new product this summer season. The Power
Pops which contains serial goodness in a delicious and chewy taste. It was packed with
vitamins A, C, B2 and folic acid(B9).
Product
Recommended Strategies
Product Development
Size Variation
New Packaging
Price
Core Strategy
1. Value Proposition
Lemon Square cheesecake was produced honest to goodness flavor. From the
warmth and taste of home-style baking, premium baked products were ready to serve
all the Filipinos all over the world. Fresh ingredients with baker’s personal touch will
satisfy customers and will feel proud of this Filipino made best products. A product that
will fit for health conscious people and those who’s in diet. People who’s always in a
hurry and like to always have snack that is cheap but fill their hungry is perfect for this
product. Calorie it has is half of the calorie of one cup of white rice has, this is also
good for the heart since it only contains a little for fat content. Budget friendly for family
and students who have fix allowance for it can be purchase in pieces and can have a
discount in bulk orders.
2. Product Positioning
For all individuals whose searching for delicious and healthy yet in expensive
snack, Lemon Square Cheesecake is a snack that is Filipino made and high quality with
premium taste. Unlike other bread and cake brands our product is a delightful cupcake
overflowing with real cheesy goodness and will leave satisfaction on Filipinos all over
the world.
1. Advertising
TV commercials and Radio are where we could usually see the products of Lemon
Square, but since our generation now is somehow changing, we can recognize those
millennials and even the younger ones that they are spending most of their time on
social media sites compare to TV and even Radio. Advertising in Social Media is way to
cheaper that on TV as well, we could possibly reach more customers on this than the
usual way of promoting it. Facebook, Youtube and even the messaging app Messenger
are where we could flash some ads about the product but we still have some
commercials on TV and it will be lesser. Print ads can still be effective if it will be on the
right place, posters to be given on Sari-sari stores and some grocery stores. Special
stall on Supermarkets to be more attractive and easy to notice.
2. Direct Marketing
3. Internet Marketing
Most relevant way through the customers’ attention. In addition, with rising
numbers of netizens, effectivity of quick ads could possibly make customers crave on
our product while watching their favorite Social Media artist. Aside from this is we could
also feature the product by the so called vloggers to make an honest review since
deliciousness and uniqueness is guaranteed on all Lemon Square products.
4. Sales Promotion
Aside from getting a discount from purchasing bulk orders, Lemon Square should
also mix their products in one pack, since this a snack for kids. Not just variety on
flavors could have the mothers’ attention in choosing snack at grocery store and
supermarkets but also variety in products of Lemon Square. Two kinds of their bread or
cake snack in one pack. It could be the combination of Lemon Square cheese cake and
their Lava cake, 5 pieces each in one pack that will be available on all retail stores.
Pricing Strategy
One of the effective pricing strategies that may be applied on Lemon Square
Cheesecake is to lower the price of the product, but not that far from primary
competitors’ price. We will still be monitoring and taking care of the profit by lowering
the expenses on other marketing strategies. Like what was recommended on
Advertising strategies, it would be cheaper if TV commercials will be lessening and will
focus more on Internet ads. Since we are on Millennials age wherein everyone has a
social media account, possibility that customers will see are ads has more chance than
watching TV commercials. As per Rappler, Filipinos spent time online daily soared from
9 hours and 29 minutes last year to 10 hours and 2 minutes this year, the highest in the
world. The Philippines also tops the world in terms of internet usage in front of a
desktop or laptop computer, clocking in at 5 hours and 4 minutes daily.
Distribution Strategy
Lemon square (Big E food corporation) prides itself with an efficient sales force
that ensures nationwide distribution. The outlets being served are as follows: wholesale,
distributors, sub-distributors, supermarkets, convenience stores, groceries and even the
Internet. The distributors handle the orders of smaller retailers and sari-sari stores.
Indirect distribution is what the company is currently doing in making sure products will
end on customers’ hands. This could still be improved by ensuring that the distribution
process is cost effective and profit will not be affected by the discounts they will be
giving in some wholesalers. We could possibly eliminate the long process somehow by
involving our online shops. Aside from this indirect process they are currently in, it could
just be between the manufacturer to the wholesaler from online shops and finally to
customers.
Financial Documents
Marketing Budgets
Marketing Metrics
1. Customer Engagement
2. Brand Awareness
Since Lemon Square is being honest that for Snack bread manufacturer, they are
still number two. We could increase Brand Awareness develop relationship with
influencers in the industry. Featuring products by the top influencers on YouTube and
also on the TV commercials. As per Richard Pentin, Senior Planner of TMW, we could
also measure it by comparing social media activity to our competitors if ever similar
objectives where shared.