10 STEP

Marketing Plan for

(Fiesta Spaghetti – White King)

Maureen Lee
October 2011

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Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
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Step 1
Describing the Primary
Target Market (PTM)
 Demographic
 Mothers – housewives, working or professionals
who cook or cater parties for family occasions
 Dominantly Class C & D but also includes Class B
 Age 20 – 55
 Buying Behavior – Highly Seasonal
 2nd Quarter of the Year – Fiestas, Graduation
 December Holidays – Christmas & New Year
 Birthdays, Baptism, Anniversaries and other
special occasions
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Step 2
PTM’s Needs, Wants & Demands
with their Spaghetti
Mothers need to satisfy hunger, express love, be
recognized and prepare the best food for their family
and loved ones.

Mothers wants to buy affordable products to maximize

the value for money and at the same time is
concerned about product quality.

Mothers would go for Fiesta Spaghetti over other

brands because of the brand promise “sulit i-
share”, and its market availability.

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PTM Needs

Mothers need to provide the best tasting

food for celebrations
Mothers need to be recognized for their
cooking and parties they organized
Cooking for celebrations is a need
for expression of love

Need food to survive

Reference: Maslow’s Hierarchy of Needs Pyramid

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 PTM Wants – Top 2 Priority

Affordable

Worth it!

SULIT!

High Quality Product

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Step 3
Fiesta Spaghetti’s
Competitors
 Direct
 Other Pasta Brands – Knorr’s Royal Spaghetti; Del
Monte’s Spaghetti Italiana, Ram’s Premium
Spaghetti
 Indirect
 Pancit, Palabok
 Popular Take Out & Delivery Noodle Dishes
(Amber’s, Buddy’s)
 Restaurants and Fast Food chains serving
spaghetti and other noodle dishes (Jollibee, TOSH)

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 Step 3-A
Fiesta Spaghetti’s Position Map
Price vs Market Class (2009)

2009 Market Share

(Retail Value Sales)

White King
Fiesta
30%

Unilever - Knorr
Royal
28%

Reference:
http://www.euromonitor.c
om/pasta-in-the-
philippines/report

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Step 3-B
Fiesta Spaghetti’s claims
high-end quality @ low price
Benefit Positioning vs Brand Matrix

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Step 4
Closing the GAP
 Between Customers
 Attempting to conquer the Class B Market
 Offering high end quality at affordable price

 Between Competition
 Increased market share in 2009 after launching
Fiesta Commercial with Maricel Soriano as
endorser
 Continued attempt to increase market share in
2011 with Kris Aquino and Bimby as endorsers
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Step 4
Positioning Fiesta - Maker
Selling Propositions – Fiesta TV Commercial 2011

 Not malabsak – Firm and Delicious (Product Quality)

 Sulit i-share with the kid’s friends pati sa grown ups (Affordable)
 Spaghetti pa lang masarap na

youtube link: http://www.youtube.com/watch?v=yS8coj6tm38

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Step 4
TV Commercials work for
Fiesta Spaghetti - Positioning
 Investing on TV Commercials
 Fiesta has invested so much on TV commercials
and endorsers since 2009

 Market share greatly increased in 2009 to about

29-30% surpassed the leading brand Knorr’s Royal
Spaghetti

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Step 4
Positioning Fiesta using
Taglish term “i-share”

Maricel Soriano’s Endorsement

“i-share ang sarap ng FIESTA”

Kris Aquino’s Endorsement

“I choose FIESTA. Sulit i-share ang sarap”

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Step 5-A
FIESTA vs Royal – Market Share
2009 Market Share – Retail Value Sales
 Fiesta – 30%
 Royal – 28%

Reference:
http://www.euromonitor.com/pasta-in-the-philippines/report

Market Share – Quantity Sold (Derived Analysis)

If you have 200 Pesos, you can purchase:
 Fiesta = 200 / 69 = 2.90 K

 Royal = 200 / 99.50 = 2.01 K

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Step 5-B
FIESTA’s Market Share
– Company Data
Q1 2011 Market Share – Retail Value Sales
 Fiesta – 29%

Reference:
http://www.rfmfoods.com/investor-relations/newsroom

RFM stated that White King Fiesta Spaghetti sold over 10

million packs in 2010 alone

Reference:
http://showbizandstyle.inquirer.net/breakingnews/breakingnews/view/20110318-326206/Kris-
Bimby-new-endorsers-of-Fiesta-Spaghetti

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Step 5-B
FIESTA’s Market Share
– Company Data – Derived Analysis
RFM Claims 29 % Market Share – Retail Value Sales
& sold 10 million packs

(Assuming that average pack is 1 kg)

Probable sales data = 10 M packs x 69 pesos/kg =

690 Million Pesos

Company Data & Third Party Data:

Total Market = 690 M 29% = 2.38 Billion Pesos
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Step 5-C
FIESTA’s Market Share
– Customer Data projects a size of
Purchase of Spaghetti Packs:

Projected Households in the Philippines in 2010 is

20 Million, assuming only (60%) 12 Million of these
households cook spaghetti for special occasions on
the average of 3 times per year, 36 million 1-kg
packs are sold each year

Total Market = 36 M x 80 = 2.8 Billion Pesos

80 Pesos used as the average price per kilo of spaghetti

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Step 5-C
Projected Market Size for Spaghetti
1. Third Party Data = 2.38 Billion Pesos

2. Company Data = 2.38 Billion Pesos

3. Customer Usage Data = 2.8 Billion Pesos

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Step 6
Fiesta Spaghetti Packages
Pack Sizes:

• 5 kilogram

• 1 kilogram

• 400 grams

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Step 6
Fiesta Spaghetti vs Competition

Direct Competition

Indirect Competition

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Step 7
Price Profile of Spaghetti – Oct 2011
per kilogram

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Step 7
Fiesta Spaghetti Price vs Competion
• Royal Spaghetti is 30.50 Pesos more expensive
than Fiesta Spaghetti

• Royal Spaghetti’s market share is almost equal

to Fiesta Spaghetti in terms of Price

• Conclusion – Fiesta Spaghetti is the Market

Leader in terms of quantity sold

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 Step 8
Fiesta Spaghetti
TV Advertisements


 





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Step 8
Fiesta Spaghetti TV Ads
- Engages High Profile Celebrities

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Step 8
Fiesta Spaghetti Sales Promotion

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 Step 8
Fiesta Spaghetti Event
Bimby, who turns four this April
(2011), opted to celebrate his birthday
during the event where he spent gift-
giving time with children from Bahay ni
Maria, a Bel-Air Makati-based
orphanage. The orphans have long
been supported by the Concepcions
and are now regular beneficiaries of
the Fiesta family.
Complete article:
http://mb.com.ph/node/313157/bimby-yap-indemand-endor

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 Step 8
Kris Aquino shares her personal experience
and relate it to Fiesta Spaghetti

Aquino said that she chose to endorse brands and products that
she actually believed in, adding that these products can be seen in
her home because she uses them.

Aquino explained that the Fiesta spaghetti was not only firm and
delicious, it was affordable as well. She said that one-kilogram
packs are being sold at P69. Each pack of the spaghetti can serve
up to 20 plates, making it suitable for sharing, she added.

She revealed that spaghetti was Bimby's favorite and she cooks it
at least three times a week for him.
Complete article:
http://showbizandstyle.inquirer.net/breakingnews/breakingnews/view/20110318-326206/Kris-Bimby-new-endorsers-of-Fiesta-Spaghetti

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Step 8
Competitor Promo and Actions
Del Monte offers Merienda Packs for Everyday

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Step 8
Competitor Promo and Actions
Knorr’s Royal Spaghetti is a household brand. Based on
personal experience I have always remembered the
packaging of Royal in our pantry.
Includes a logo that says “100 Years of Pasta perfection”

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Step 9
Place – Fiesta is available to almost
all retail channels
Big Super Markets – SM, Rustan’s

Small Time Groceries – Local Groceries

Wet Market – Typical Palengke

Convenience Stores – 711

Friendly Neighborhood Sari-Sari Stores

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Step 10
Fiesta Spaghetti
– Generic Winning Strategy

Low Cost Producer

Supply and Distribution Leverage

Differentiation

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 Step 10
Fiesta Spaghetti
– Generic Winning Strategy

• Fiesta Spaghetti’s main strategy is to dominate

the market by being the low cost producer of
spaghetti
• Leverage on supply and distribution by being
available to all market classes (A to E)
• Projecting its product differentiation by
combining affordability and quality “firm
noodles”

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 SUMMARY

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Steps 1 to 3
Fiesta Spaghetti Penetrated
the Market in 2009
1. Fiesta Spaghetti’s PTM is the class C & D
Mothers.
2. Mothers who need to satisfy
hunger, express love, be recognized and
prepare the best food for their family and
loved ones.
3. Can buy Ram if would prefer to save 5
pesos or buy Royal which is a more
traditional choice.
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Steps 4 to 6
Fiesta Spaghetti
is sulit i-share
4. The gap is primarily evident in the Class B
market and competitor brands that have
been long out in the market
5. The market size is 2.38 Billion Pesos with
about 29-30% belongs to FIESTA.
6. It is ”Not malabsak” and sulit i-share with
the kid’s friends pati sa grown ups.

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Steps 7 to 10
FIESTA Spaghetti is low cost
and always available
7. Fiesta Spaghetti is 30 pesos less than Royal
and Del Monte Brands but 5 pesos more
than RAM.
8. Investing on aggressive marketing through
TV Ads, Promotions and publishes the
experiences of their endorser.
9. Distributed nationwide.
10. Winning strategy is being low cost and
available with high end quality of firmness.
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10 STEP
Marketing Plan for
(Fiesta Spaghetti – White King)

Maureen Lee
October 2011

http://maureentlee.blogspot.com/ 37