De La Salle-College of Saint Benilde

School of Management and Information Technology

Export Management Program

In Partial Fulfillment of the

Course Requirements for

Management Strategy (MANSTRA)

1​st​ Term, SY 2018-2019

Submitted by:

De Paz, Maria Cristina Rosco

Submitted to:

Dr. Edward Moises

Submitted on

December 6, 2019
 TABLE OF CONTENTS

I. Company & Product Profile ​………………………………………………. Page 3

II. Mission & Vision​ …………………………………………………………. 5
III. Value Proposition​ …………………………………………………………. 6
IV. Target Country ​……………………………………………………………. 6
V. ARC’s - Actions, Resources/Revenue, Capabilities​ …………………….... 7
A. Actions ……………………………………………………………….. 7
B. Resources / Revenue Streams …………………………………………8
C. Capabilities …………………………………………………………… 8
​VI​. Scope ……………………………………………………………………… 9
VII​. External & Internal Analysis​ …………………………………………….... 9
A. Environmental Analysis - SWOT …………………………………….. 9
B. Macroeconomic Analysis - PESTEL …………………………………. 10
C. Porter’s 5 Five Forces of Competition ………………………………… 11
VIII​. Components of Internal Analysis​ ………………………………………….. 12
A. Intangible / Tangible Resources ……………………………………….. 12
B. Capabilities …………………………………………………………….. 13
C. Core Competencies …………………………………………………….. 13
D. Four Criteria of Sustainable Advantages ………………………………. 13
E. Value Chain Analysis (VCA) …………………………………………… 14
F. Outsourcing ……………………………………………………………… 15
IX. Competitive Advantage​ …………………………………………………….. 16
X. Business Strategy​ …………………………………………………………….. 17
XI. Global Market Mode of Entry​ ………………………………………………... 17
I. Company and Product Profile

ELVA Organics is a Filipino company that aims to compete in the global organic market
industry through its flagship product ​MANTIKA: Moringa Vegetable Oil​. ELVA
Organics specializes in the research and creation of organic goods produced through
ethical and sustainable methods.

Mantika is a vegetable cooking oil made from moringa seeds and fortified with curcumin
extract (the main component of Turmeric) combined for human consumption as an
alternative cooking medium packed with added health benefits (i.e anti-inflammatory,
high in antioxidants, helps prevent cancer, good for the heart, helps control obesity). It is
sedative free, halal-certified, and 100% organic and vegan.
II. Mission and Vision

MISSION

Our mission is to provide quality all organic products for the consuming mass, made
through organic farming principles with emphasis on sustainability, biodiversity, health,
and safety, whilst being sensitive to social responsibility obligations to ensure sustainable
growth demands for all stakeholders.

VISION

To be the Philippines premier producer and exporter of distinct organic products that
offer a true intrinsic value that meets the highest aspirations of its consumers without
compromising their overall well-being and needs, as we continue to deliver quality goods
through ethical business practices.
III. Value​ ​Proposition

FRYING, BAKING, OR SIMPLY JUST AS A DRESSING.

Fortified with added benefits, minus all the risks MANTIKA: Moringa Vegetable Oil is YOUR
go-to cooking oil that will keep you and your family living happy and healthy.

IV. Target Country: Germany

Germany is a country with low birth rates and high life expectancy, 77yo for men and 83
for women. Thus, fuelling increasing demand for products inclined to improve and aide
with overall wellbeing. Germany ranks 2nd on the World’s Organic product consumer
and 1st in the European Union. Obesity and related illnesses are becoming a problem in
Germany and diabetes prevalence have jumped, Germans are known beer lovers and
carnivores with extra love for fried food, meat, and sausages which shows a growing
concern.
V. ARC’s - Action, Revenue, Capabilities

A. Action Plan

ACTION OBJECTIVE ACCOUNTABLE RESPONSIBLE

Conduct market Study target market Marketing ELVA Organics /

research with target and develop Main Company
consumer segment appropriate products Operations
and country

Test market including Identify the Marketing ELVA Organics /

product competition competition pros and Main Company
VS Mantika cons Operations

Survey customers Gather data measured Marketing ELVA Organics /

who have tried tested through satisfactory Main Company
samples ratings Operations

Select target partner Deploy product and Marketing and ELVA Organics /
distributors and penetrate the target Management Team Main Company
establish new market Operations
contracts
B. Revenue Stream

Transaction-Based Revenue Stream​ - Proceeds from the sales of goods via the
following distribution channels:

● Trade Expos
● Wholesalers and Retailers
● Specialty Stores (Organic Products stores)
● Supermarket Chains
● E-Commerce Sites (Alibaba, GlobalRustTrade, etc)

C. Capabilities
Startup Costs - ​Php 148,592
Fixed Costs - ​Php 186,300/for a month
Variable Costs - ​Php 330.89/per unit ~ ​€ 5.82

Competition Price: € 6-9 (Olive Oil) € 4-5 (Sunflower Seed Oil)

 ● Price Testing - ELVA Organics’ marketing operations team can test different
price configurations to further optimize revenue and margins for MANTIKA.
● Research and Development
● Sourcing Raw Materials
● Product Development
● Delivering quality product through a sustainable process

VI. Scope

Market Scope

Target market scope are ​HOUSEHOLDS,

SINGLETONS, ORGANIC PRODUCT
CONNOISSEURS and SENIORS​.

Cost Per Unit: Php 330.89

Mark Up @ 50% : 330.89 x .50 = 165.44

165.44 + 330.89 = 496.33
Supplier Price: Php 496.33 ~ € 8.73
Reseller Markup @ 15% : 496.33 X .15 = 74.44
74.44 + 496.33
Suggested Retail Price: Php 570.77 ~ € 10.04

Target market scope is 10% of the German Organic product consumer, estimated around
59,400 25-69-year-olds comprised of households, german singles, seniors and other german
organic product connoisseurs.

VII. External & Internal Analysis

A. Environmental Analysis - SWOT

The following is a summary analysis to test the macroeconomic environment of

MANTIKA.

Global demand for Organic labeled products especially in Europe, particularly in

Germany has been a highly forecasted opportunity for players of the global market
industry. Products with raw materials and key ingredients belonging to the “superfood”
category hold special priority in the European market for its scientifically-backed health
benefits. Superfoods based product is the highest demand for the European market and is
foreseen to be a growing demand. Europe’s open-door policy, particularly for Muslim
refugees, have also created various demands for consumer products such as Halal
Certified products.
Market Entry in the European especially in the Organic product industry is a
costly endeavor but players will reap rewards once the market has been penetrated.
Competition, in particular, the cooking oil industry is high and the edible/vegetable oil is
a major area of concentration due to the increasing demand for healthier alternatives.
There is strict importance imposed on the quality of raw materials and there is a
fluctuating price for moringa seed-based products, having the right and quality supplier
for raw materials plays an important role.

Mantika is protected by a patent application, which will protect the product from the
competition. It is backed with rigorous research conducted through the supervision of
The University of the Philippines Los Banos Laguna, Oils and Fats Laboratory
BIOTECH. Raw materials are sourced with specific requirements and quality is graded,
only the finest quality raw materials are used as inputs to ensure the quality of the
outputs. Production is carefully monitored and the equipment used is sterilized and
maintained. Given that the product is only at its introduction phase, one of ELVA
Organics’ internal weaknesses is the lack of machinery for the production of MANTIKA
that could, therefore, lead to slowdowns in the manufacturing phase. The lack of in house
experts and professionals such as Medtech and Labtechs to help in the production
facilitation also adds on cost and internal constraints due to the fact that such expertise
will have to be outsourced from service providing companies and close monitoring
during the production phase is limited which can potentially lead to increased chances of
errors in production. Other foreseeable internal constraints are the lack of manpower,
which means that everyone involved as of the moment will have to take on multiple roles
from sourcing raw materials all throughout the production and distribution.
B. Macroeconomic Analysis - PESTEL

Germany and the Philippines have good import and export trade agreements which the
company can utilize and benefit from. Europeans prioritize policies on the importation of
organic products such as Moringa.
The Philippines being an Agricultural country, Mantika can help provide an
additional livelihood to PH farmers with a potential high yielding income, through
Moringa Seeds and Turmeric (Curcumin). The aging population in Germany and other
European countries can be of benefit for the Product and vice versa, due to the increasing
demand for Organic products. Investment in the further advancement of the research on
superfoods products will help the company and the product benchmark its key benefits.
In addition, the development of new extraction machines and equipment to get the most
out of the raw materials used will also help the company in utilizing and increasing the
volume of production and make use of the raw materials.
Mantika is a 100% organic product and byproducts can be used as natural water
filters and can be developed as alternative organic products for cosmetics as well as
protein powders and spice, this could be used as an advantage to create additional
revenue source for the company is utilizing the product, it also promotes the company
and products sustainable goal.

C. Porter’s Five Forces of Competition

Europe is one of the world’s high buying power regions, has paved the way for the
generation of a variety of consumer products. Cooking oil is a necessity for the majority
of the German market. Europeans particularly Germans has a growing demand for
organic products and are willing to spend on an average, 72 euros for organic labeled
goods. Rivalry among competing firms is moderate due to the availability of other
cooking mediums such as Olive Oil, Canola Oil, and other edible/vegetable oils.
Although this does not restrict MANTIKA from competing in the global organic product
industry particularly in the European market as threats for new entrants are moderate, due
to special Governmental policies imposed on the export and import of Moringa based
 products and other superfoods consumer goods. Mantika boasts patent protection (patent
pending) that could be of a high barrier for entry on fortified organic products. Product
substitution is also moderate as Mantika offers competitive pricing versus currently
available products in the market which will make switching costs from Brand-X to
Mantika easier. Switching will also reward Mantika consumers with health benefits
competitively higher than those of the competition.
Moringa is a growing industry in the Philippines, there are a number of suppliers
available and willing to supply, especially Filipino farmers looking for ways to earn
additional income. For the most part, acquiring raw materials is easy because moringa
seeds are considered by a number of farmers as byproducts. The final output is also
cost-beneficial because sourcing inputs are comparatively cheaper but high value.

VIII. Components of Internal Analysis

A. Resources

Tangible Resources

● Oil Press Machine

● Production Facility
● Raw Materials for production
● Inventory
● Other equipment

Intangible Resources

● Patent
● Main ingredients reputation
● Increased demand for organic products
● DOH Approval
● UPLB backed research
 ● FDA Approval
● Scientifically backed reputations of Moringa and Curcumin
● Good PR/Marketing Team

B. Capabilities

● Creating a better and healthier alternative to current edible oils in the market.
● The natural and organic process of creating the product, no added solvents.
● Combination of two of the world’s healthiest superfoods.
● Meeting the high consumer demand for organic and natural products.

C. Core Competencies

● VALUE ​- Mantika is a product of a combination of 2 of the world’s scientifically

backed and known superfoods, Moringa and Curcumin (turmeric). It is a
vegetable oil that contains 10x the nutritional value VS the ones available in the
current market.

● INNOVATION - Mantika is the future of vegetable edible oil, through the

combination of 2 of the best superfoods in the world. It has a higher burning point
compared to the average vegetable oil and DOES NOT release harmful toxins to
the body after exposure to high heat.

● SUSTAINABILITY - Mantika is a sustainable product from production to death,

its byproducts can actually be reused and repurposed into water filters, animal
agri supplements, organic-based makeups, and more! The raw materials are
actually sourced from Filipino farmers who have found an alternative livelihood
through Moringa and Turmeric farming.

D. Four Criteria of Sustainable Advantages

 ● VALUABLE - Mantika is a patent-pending product, it is a combination of 2
superfoods fortified to create added nutritional value to common vegetable oils.
● RARE ​- Mantika is a product of a combination of 2 superfoods that were
researched and analyzed by the University of the Philippines Los Banos Laguna
to be able to create a product with specific measurements that is suitable for
human consumption and boasts nutritional value.

● COSTLY TO IMITATE - Through a series of trial and error, the researchers and
I were able to formulate the exact and appropriate measurements of each
ingredient used, to be able to make the product, Mantika, fit for export and human
consumption. Nutritional analysis and burning point tests, as well as toxicity
analysis, were done to ensure the quality and safety of the product.

● NON-SUBSTITUTABLE - Mantika offers a competitive price, it is more

affordable and budget-friendly for households looking to have a healthier
alternative from their normal cooking oil and expensive vegetable oil. Substitute
product quality (BrandX Vegetable Oil) is inferior to Mantika quality and does
not produce harmful toxins when exposed to high temperatures.

E. Value Chain Analysis (VCA)

 Above VCA table illustrates activities that the Company puts emphasis on, to be able to
effectively put the product (Mantika) competing in the Global Market.
Key activities will be primarily on the Marketing and Sales, Outbound & Inbound
Logistics, Service in order to advertise the product and put the brand on the global map
while effectively and efficiently managing channels of distribution (Supply Chain
Management). The company will also be utilizing key secondary activities such as
Procurement, Tech. Development and Firm Infrastructure.

F. Outsourcing

● Mantika will be outsourcing its Human

Resource Management from HR
consulting offices.
● Research and Development (R&D) work
will be outsourced from The University
of the Philippines Los Banos Laguna.
● Nutritional Analysis and Testing will be
outsourced from analysis centers such as
FNRI (Food and Nutrition Research
Institute) and DOST (Department of
Science and Technology).
● Other services such as legal services will
also be outsourced from service
providers/offices.
IX. Competitive Advantage

MANTIKA Moringa Vegetable Oil fortified with Curcumin extract is for people who
love fried food and cooking but want to keep it healthy. Unlike most vegetables and
edible oils in the market, it guarantees to be beneficial to the human body:

● It helps lower bad cholesterol, helps with arthritis, reduces cancer growth, and
improves immunity.
● High on monounsaturated fats, omega 3, anti-inflammatory, antioxidants, amino
acids, Vitamins A, B, and C, protein, and many more! (92 nutrients, 46
antioxidants)
● Guarantees to be good for the heart, bones, mind, eyes and the aging human body.
● 100% Organic from raw materials to process and even packaging.
● Suitable for all ages, no after tastes and can be Halal Certified.
● High boiling point (205C) compared to Olive Oil (185C) and the likes.
● Does not release harmful toxins to the body when exposed to high temperature.
X. Business Strategy

As a startup company, one of ​ELVA Organics’ main goals is to increase brand awareness in
order to capture and grow its market share and secure distribution channels for ​MANTIKA in
order to grow not only the brand but the company as well. To do this, the company will be using
Focused Differentiation ​for its business strategy and will be utilizing key features that set
MANTIKA and ELVA Organics apart from the competition.
ELVA Organics and MANTIKA will be highlighting its raw materials used, sustainable
production process, being preservative-free and non-GMO, as well as its nutritional benefits to
the body and promoting research-backed 100% organic, vegan-friendly ecological product to
target the growing health-conscious and environmentally aware market. Targeting a niche market
by highlighting and focusing the brands’ uniqueness not only captures the market but also
encourages a strong brand loyalty from its consumers while maintaining competitive pricing for
MANTIKA’s significant value. It’s important for ELVA Organics to ensure that our product
remains unique in order to stay ahead of its competition and invite potential investors.

XI. Global Market Mode of Entry

Exporting ​- ELVA Organics will be entering the global market by exporting MANTIKA to
target countries such as Germany and other potential geographical markets. Although this mode
of entry has its downside in terms of high costs (costs associated with exporting), transportation
costs, and having low control, this mode of entry will be beneficial for the company since we are
only about to test the market and introduce the product before fully investing or establishing a
physical retail presence. The company will be supplying organic and specialty product importers
in the target country particularly Germany. Furthermore, this entry strategy will also help ELVA
Organics in protecting intangible assets such as MANTIKA’s patents and company trademarks.