INTERNATIONAL BUSINESS AND TRADE

HOLY ANGEL UNIVERSITY

School of Business and Accountancy

PRODUCT PROPOSAL FOR INTERNATIONAL MARKETING PLAN

In Partial Fulfillment
of the Requirement of the Course:
International Business and Trade

Presented to:
Ms. Joy Anne S. Evaristo, MBM

Presented by:
Group 2

Members:
Bartolo, Lynniel Faye V.
De Claro, Michaela
Fabon, Eula Marie
Galang, Jelenah
Miranda, Louis Mark Angelo

August 2022
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I. About the Country - Italy

The Italian Republic, also known as Italy or Italia, is a Mediterranean country in the

southern-central region of Europe, bordered by countries France, Austria, Switzerland, and

Slovenia and its independent states San Marino and Vatican City, having a total land area of

301,345 sq. km. (116,350 sq. miles) and where Rome, one of the world’s oldest and most favorite

cities, is its capital city (Italy Government, 2022). Interestingly, it is known to be home to one of

the most varied cultures and scenic landscapes on Earth and is described as “the boot” which has

gotten its resemblance to its mainland’s long peninsula (Britannica, 2022). The Heritage

Foundation’s 2022 Index of Economic Freedom ranks Italy at 57th with an overall score of 65.4

which is below the EU's regional average but above the world average. Overall, Italy’s monetary

freedom, trade freedom, and investment freedom are strong, but the economy remains heavily

burdened by government spending and integrity (The Heritage Foundation, 2022).

Government

The government of Italy is in the form of a democratic parliamentary republic whereas

sovereignty is vested in the people and constitutionally, it is composed of the Prime Minister, who

is also the President of the Council which the President of Italy appoints, and the Ministers, who

are the Cabinet members. Italy’s current leaders are the incumbent President of Italy, Sergio

Mattarella and the incumbent Prime Minister, Mario Draghi (Britannica, n. d.) who assumed the

office on February 13, 2021.

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Open Markets

Since Italy was unified in 1861, it has been considered a major Western power having vast

and extensive economic and diplomatic relations. As a founding member of the European Union

and NATO (North Atlantic Treaty Organization), the country was able to constitute the two

organizations as their main foreign relations. Aside from Italy’s participation in the EU and NATO,

it has also been a member of the World Trade Organization (WTO) since 1995 and the General

Agreement on Tariffs and Trade (GATT) since 1950. Italy currently has 46 preferential trade

agreements in effect (The Heritage Foundation, 2022).

In terms of global perspective, the Italian government has a significant influence on the

economy, military activities, cultural trends and diplomacy in most European countries (World

Population Review, 2022) but with its affiliation with the EU, it is able to penetrate diplomatic

relations with other Asian countries such as the Philippines on December 22, 2015 and ASEAN in

2007 but it was temporarily halted by mutual agreement in 2009 to give way to a bilateral format

of negotiations. On top of that, the European Free Trade Association and Philippines signed the

free trade agreement (FTA) in 2016 which covers increased market access, reduction of non-tariff

barriers for goods, services and investments, protection of intellectual property rights, horizontal

issues and dispute settlement, and trade and sustainable development (EFTA, 2016).

Bureaucracy

Bertelsmann Stiftung’s report on Sustainable Governance Indicators (2020) revealed that

Italy’s weaknesses are rooted in political risks such as corruption and inefficient bureaucracies.

The central and local Italian government still have yet to find their balance in completing their

array of functions and procedures. The sluggish process of the country’s system can severely
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stagnate its economy. SGI suggested the following acts of: 1) reforming the relationship of the

central and local government, 2) overhauling the governance and administrative apparatus, 3)

implementing a stable and focused economic and social policies, and 4) a steadfast effort in

improving the quality of education and research (Bertelsmann Stiftung, 2020).

The recent fall of their current government is shifting the country back to its history of

political uncertainty and may cause further damage to the internal structure of their government

and affect its regulatory frameworks in terms of organization.

Regulations

With respect to financial services, the banking and financial system of Italy is supervised

by three main regulators (Global Financial Services Regulatory Guide, n. d.):

1. Bank of Italy. The banking and financial intermediaries are supervised by the Bank of Italy

that serves as their sole bank of issue which complies with EU policy and is responsible

for general regulations, risk control and capital adequacy requirements. Moreover, it also

oversees the anti-money laundering regulations having Unità di Informazione Finanziaria

(the Italian financial intelligence unit, UIF) as the dedicated division supervising within the

Bank of Italy.

2. Commissione Nazionale per le Società e la Borsa (“Consob”). The Consob oversees the

activity of the securities markets and the investment firms; it is in charge of ensuring the

transparency of the markets and the fairness and transparent conduct of intermediaries and

issuers.
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3. Istituto per la Vigilanza sulle Assicurazioni (IVASS). The IVASS is the official body that

controls and supervises the insurance and reinsurance business and insurance and

reinsurance mediation.

The main requirement of these financial services is the duly authorization of any person or

entity that offers investment services in the country through the Bank of Italy or the Consob in

accordance with the Consolidated Law on Finance (Scarpa et al., 2021).

With respect to importation, the authoritative body responsible for enforcing customs law

and regulations is the Customs Agency (Agenzia delle Dogane), which is part of the Ministry for

Economic and Financial Affairs in compliance with EU legislation. Importantly, Italy imposes

restrictions on market access for the following service sectors: public gaming and production,

distribution and sale of manufactured tobacco (Scarpa et al., 2021). Furthermore, member states

within the EU can circulate freely between nations; however, tariff and customs duties apply and

vary depending from which country they come from. All EU customs tariff measures applied on

the basis of the common nomenclature are set out in the integrated tariff of the European Union

(TARIC) established under Regulation (EEC) 2658/87 (Scarpa et al., 2021). Accordingly, all

sanctions, export controls, and other remedies are regulated by the governing bodies in which Italy

complies with such as the EU, WTO, OECD, OSCE, and NATO.

In addition, the Italian Ministry of Economy and Finance (Ministero dell’Economia e delle

Finanze) carries out the tasks and responsibilities of the state in the fields of economic policy,

financial policy, budgeting, and tax policies, as well as tasks related to public spending and its

oversight (Devex.com, n. d.). For tax purposes, the Italian Ministry of Economy and Finance

coordinates with regional and provincial tax commissions to facilitate imposition and collection of
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taxes therewith. Nonetheless, Italy’s financial system has been progressive in recent years but it

has some weaknesses that need to be addressed such as bank capitalization and asset quality.

Economy

Population and its composition

It has a population size of 59.1 million as of current statistics provided by The World Bank

(2022) wherein its top three largest cities are Rome, the “Eternal City”, Milan, the fashion capital,

and Naples, the architecturally rich city; 51.3% of the total population is female and 48.7% is male.

According to Statista Research Department (2021), Italy had the third largest percentage of elderly

population in the world and the largest in Europe gathering 23.4% of its total population is 65

years and older, 63.8%15 to 64 years and 12.8% is 0 to 14 years, with its median age in years is

45.9 in 2021.

Income distribution

Italy is a highly developed economy and is the 8th largest by gross domestic product (GDP)

and the 3rd largest in the Eurozone of $1.88 trillion nominal GDP, based on the 2022 statistics of

The World Bank extracted by Global PEO Services (2022). It is classified as a high-income: OECD

(Organization for Economic Cooperation and Development) country that has an income

distribution or inequality of 5.85 ratio in 2021 and a Gini coefficient of 35.2% in 2018 which

measures the income distribution level of the population in a certain country. More so, the wealth

of the twenty-one top Italian billionaires listed by Forbes amounted to the wealth held by 20% of

the poorest of the population in 2018 (Pastorelli & Stocchiero, 2018). In addition, seniors have the

highest median standard of living while young people have the lowest median standard of living
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(Reaching the Consumers in Italy, 2022). Income earners are ranked from highest to lowest

average income such as: freelance workers (EUR 41,740); entrepreneurs in individual enterprises

(EUR 21,080); employees (EUR 20,680); and pensioners (EUR 17,170) (data by Ministry of

Finance). In 2022, Eurostat data show that on average in Italy women earn 4.2% less than men

which is better than the EU average, where the gender pay gap is 13.8% (Eurostat, 2022).

Moreover, they also reported that inequality in Italy has intensified, further widening the

gap between the rich and poor due to inefficient political decisions and the fragmentation of the

labor force. This unfortunate event can be a driving force of the government to attract foreign

investors in order to balance the amount of labor, capital, and other factors of production that can

reduce unemployment and stabilize the income distribution.

Industrial structure

Favorable consumer goods, services and manufacturing industries spearheaded the

country’s economic structure. However Italy has a diversified industrial economy being divided

into a highly-industrialized and developed northern part where the majority (75%) of their wealth

is produced; and an agriculture-dependent southern part (FocusEconomics, 2022). The northern

part is a vast plain wherein lies the advantage in network of commerce, inland road and transport,

and social and political organization that constitute the country’s middle- to high-income earners

and concentrates in private manufacturing. In contrast, the southern part of Italy, formerly

Kingdom of Two Sicilies, is agricultural and rural with less favorable conditions where

unemployment and poverty persist. The major discrepancies include living standards, salaries,

political parties, commercial and work opportunities, and even weather and language due to its

topography (North Italy vs South Italy: A complete comparison, 2022).

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Italy’s major industry drivers are tourism, precision machinery, motor vehicles, chemicals,

pharmaceuticals, electric goods, textiles, food and wine, fashion, clothing and footwear. Italy has

a robust manufacturing base, the second largest in Europe next to Germany, and is consistent with

attracting FDI focused on innovation and advanced technologies such as the biotechnology

industry (Wolters Kluwer, 2020). Notably, their concentration in beauty and fashion elements

made their products raise the “Made in Italy” tag to fame (GlobalSecurity.org, n. d.) such as Gucci,

Ferrari, Prada, and Fendi. Another notable main drivers of their economy is tourism which is one

of the country’s pillars of strength and why it became a tourist’s favorite due to its prominent

artistry and architecture that counts 55 world heritage sites such as the Mount Etna, Colosseum,

and Sistine Chapel (25 fun facts about Italy you didn't know, 2021).

On the flip side of the coin, according to a study conducted by BNP Paribas on Italy’s

economic weakness in 2019, Italy remains to have weaknesses in investment and financing, human

and labor resources, and raw materials.

Culture

Consumer background and behavior

Italy is home to a myriad of cultures and people, with a total population of 59.1 million

whereas men are dominated by women in terms of gender by birth and the leading age structure is

between 15 and 65. Italy’s population has been identified to have a high and diversified level of

mass consumption wherein they consume at large other than the basic necessities, but due to the

major financial crisis experienced and shifts in technology, the majority have adjusted their buying

behaviors (Export Enterprises SA, 2022).

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The following are data obtained by Export Enterprises SA from the Italian National

Institute of Statistics (ISTAT) regarding Italian consumer behavior:

1. Appearances matter; bella figura or good image is the Italian standard.

2. Italian consumers demand quality products, especially for clothing.

3. The aging population drives the increasing demand in specialist products and services.

4. Italians are increasingly attracted by online sales and e-commerce.

5. In the past, Italians were brand loyal but are now starting to be more interested in buying

new products.

6. Italian consumers often rely on the information provided on the internet and on social

networks, especially those coming from other consumers.

7. Use of collaborative platforms such as Airbnb, Uber, Blablacar, car sharing services is

increasing, especially among young people.

Source: Export Enterprises SA, 2022.

Religion and other beliefs

Religion and other beliefs vary from country to country, but as the world shrinks and

nations commence opening their borders, interaction becomes more prominent; this interaction

creates an impact on one’s consumption. It is no surprise that the dominant religion among Italians

is Roman Catholicism with roughly about 80% of their population, seeing as the very heart of

Christianity is situated in Italy itself, the Vatican City (Italian culture, 2017). In a very secular

state like Italy, their social landscape is mainly influenced by the Roman Catholic tradition

(Agarwala et al., 2019) where they have accepted the core principles of Roman Catholicism to

serve as the backbone of society. A marketing research review asserted that religious beliefs
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affected consumer outcomes such as intolerance, materialism, risk aversion, and ethics and it also

influenced their economic purchasing behavior (Agarwala et al., 2019). As such, consumer

behavior can be kept in moderation with the influence of sacred teachings and beliefs that Italians

follow. With the continuous emergence of new technologies, the world is no doubt becoming

smaller and easier to reach, however beliefs may create or burn the bridge for international markets

to prosper.

Business practices

Courtesy and presentability and hierarchy are elements that are highly regarded in Italy’s

business etiquette (Business etiquette, 2013). For them, eyes do eat and therefore, appearance must

always be aesthetically pleasing (Doing Business in Italy, n. d.). Italians take pride in their beauty,

elegance, and fashion and they are not afraid to present it to the world. More so, they keep a notion

that first impressions do last, so they value remarkable attitudes and good impressions to the extent.

In addition, Italian culture is strict when it comes to hierarchies as most businesses follow a tall

system of organization–having an exceptional respect to power and age. Interestingly, because

Italians are particular to personal relationships, meetings in the Italian business practice are

regarded as an occasion to develop a sense of mutual trust and respect (Understanding the Work

Culture in Italy as an Expat, 2021).

Mainly, Italians are known for their family-centric culture, and there are a number of small

and mid-sized businesses such that even large companies like Fiat, Gucci and Benetton are still

primarily controlled by single families (Zimmermann, 2022) hence, famiglia or family, as

translated in English language, is at the heart of an Italian’s life (Horn, 2022). The business culture

in Italy is also focused on creating network links such as personal relationships which are crucial
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to success. However, as much as corruption is prevalent in their government, business sectors

could not run free from unethical practices that even government efforts to combat corruption and

bribery are impotent to a great degree (Business etiquette, n. d.).

Local competition

Italy is esteemed as a global center for arts, literature, music, philosophy, technology, and

fashion (Yahoo!, 2022). It is a mature and sophisticated manufacturing market where even the U.

S. entrants face strong competition from local and other EU companies in all market segments

(International Trade Administration n. d.). The local competition in Italy is centered in the

industries of tourism, which accounts for 11.8% of Italy’s GDP and 12.8% of the total jobs;

manufacturing, which comprises of many small and medium-sized businesses that are grouped in

clusters; agricultural, in which has made the country a leading producer of fruits, wine and fishery

and livestocks (Sawe, 2019). The service sector and trade remain in a colliding force; clothing,

electronics and beverage are top selling products (Eworldtrade, 2022) while wholesale, retail and

trade ranked the highest in their service sector (Italy share of services, n. d.).

Language

Italy has a strong sense of patriotism with a number of regional dialects still prevailing in

nooks and cranny of the country, but still, it recognizes Italian as the official language having 93%

native speakers in the population (Educations.com, n. d.). Furthermore, Italy has minority

languages that constitute to around 50% of the population, such languages are German, French

and Slovenian due to having the same country of origin of the said languages in the Italian borders.

However, Italy is considered one of the worst countries where English is not a national language
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according to the latest English Proficiency Index (EPI) 2021 as obtained by The Local Italy in

2021 with which is due to lack of exposure and confidence in speaking so (Are Italians really the

'worst in Europe' at speaking English, 2021). Hence, restaurants are also not able to accommodate

travelers as much as they are supposed to, posing a huge challenge to communication.
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II. Product Proposal

1. RAZON’S BY GLENN (RBG)

In the little Pampanga town of Guagua, Razon's Halo-Halo & Palabok (Lug-lug) first

opened its doors in 1972. It originated with the thoughts of the three single sisters, Severina, Elena,

and Virginia. The big Razon family originally reserved the consumption of the Halo-Halo and

Lug-lug. However, the flavor of Razon's Halo-Halo traveled to the town of Guagua and made it a

popular spot for snacks in the region. Only three ingredients; Macapuno, Saging, and Leche Flan,

make up the Halo-Halo. A critic claims that Razon's Halo-Halo's key to its flavor and success is a

straightforward mix. And right now, it holds the title of best Halo-Halo in the nation. Mark

Anthony "Glenn" Razon-Carreon, the company's president, oversees it. In 2003, Glenn, a third

generation Razon who was born and raised in Guagua, Pampanga, founded his first shop in Tarlac

City, Tarlac, operating under the name The Original Razon's Halo-Halo & Palabok. With the

slogan "Tradition of Delight" for his company, he has standardized, developed, and strived to bring

the brand into line with the food sector. In 2015, Glenn began franchising and changed the name

of his business to Razon's By Glenn (RBG). By developing the distinctive "Razon's By Glenn"

menu and experience and providing inexpensive, high-quality, and delectable cuisine, Glenn hopes

to expand the brand's market.

Source: Razon by Glenn official website

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Razon’s By Glenn: Target Market

Who are the potential customers?

Razon’s Halo-Halo is relatively a well-rounded dessert that offers a variety of mouth-

watering flavors. The potential customers are of course the Filipino community in Italy and native

Italians in the country. Food or beverage is fun and exciting for everybody. Thus, the potential

customers in the market range from the age of Millennials and inclusive to all gender. Since these

said potential customers share the same drive of trying something new and fun when it comes to

food, especially an exotic or foreign one.

Where are they located?

The potential customers are presumably in the urban areas of the country, either working

or living in a city or even a tourist trying for a cold beverage. Moreover, if possible, food delivery

would be a great extension of service to potential customers living in rural locations, and also to

potential customers who love the convenience of food delivery being a homebody.

How large is your target market?

The target market specifics are the Filipinos in Italy and Italians or tourists, such as

individuals, professionals, families, and communities ranging in the age of 20-40 years old and

gender inclusive. The income level of the target market is expected to be in the average wage of

1176 EUR based on the price of the product’s origin country.

What are the needs and wants of your target market?

The target market's needs and wants are both to satisfy their appetite, and cravings, and to

offer them a pleasure as they consume food products or services with great satisfaction like

Razon’s Halo-Halo. Furthermore, the key importance of their needs and wants is to consume a
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valuable product that is promising to their demand and entices them for more, which develops a

sense of good relation to the product or brand.

What criteria do they use in marketing their buying decision?

The target market's distinct criteria used in their buying decision influenced by marketing

is what appears to be the value of the product. Italians are amused by appearances as their culture

and cuisine are rich in vibrant colors, and the perception of being physically appealing is important

to them. Significantly, marketing through social media with enticing photos of Razon's Halo-halo

would favor the product promotion. To further influence Italians with the said criteria and

maximize the product promotion, having such good reviews of the product online will be a great

advantage.

Razon’s By Glenn: SWOT Analysis

Strengths:

• The product's (Halo-Halo) main components are not more than five ingredients.

• The brand Razon’s by Glenn has more than 60 franchise branches in the country of origin.

• The brand also offers exotic Filipino cuisine like the famous “pancit lug lug” and more.

Weaknesses:

• It has an unlocalized taste or flavor.

• There is a high sugar content in the product.

• It does not promote eco-friendly take-out packaging.

Opportunities

• An international expansion in Europe.

• A potential partnership or collaboration with local Italian brands.

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• A product innovation or inclusion of Italian taste preferences.

Threats

• The Jollibee’s Halo-Halo (Branch in Italy).

• Competitors offer local desserts.

• There are operational costs.

Razon’s By Glenn: Unique Selling Point

What you pay is what you get with a satisfying treat to cleanse the palate after a meal!

Served in a clear cup as the flavors scream for a mix. Halo-halo (mix-mix) from Razon's that has

mixed flavors of fruity and sweet layers of caramelized banana sauce, thick coconut strings of

macapuno jam, refreshing shaved ice, sweetened evaporated milk, and creamy leche flan slices. It

also happens to be low in calories compared to traditional halo-halo with ube or even to processed

ice cream, which Razon's halo-halo simplicity in its recipe makes it recognizably the best iced

layered dessert in the Philippines. According to Glenn Razon-Carreon (president of the brand), the

brand will continuously be a tradition that comes from a family that preserves and offers the best

and unique Halo-Halo, Palabok and Kapampangan food experience nationwide and manifests to

reach the global market.

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2. RUSTY LOPEZ

The Lopezes established Rusty Lopez as the brand name that competed with the best of

what the regional shoe industry has to offer, building on the success of Centropelle. The Rusty

Lopez brand ultimately outperformed the controlling firms' projections for popularity and now

commands one of the largest market shares in the local shoe sector. In the Cubao Shoe Expo, Lolito

Lopez launched Centropelle, a shoe store, in 1977. Nearly three decades later, Lolito and his wife

Lily have flourished and are now in charge of a shoe business empire that is renowned for its

dedication to the creation, production, and marketing of high-quality, genuine, and reasonably

priced footwear under the brands Centropelle, Russ, and Rusty Lopez.

The company's official manufacturing division was created on December 17, 1996, by

Maritalia Manufacturing Incorporated. Maritalia was created as a result of the collaboration of

Filipino and Italian shoemakers. The words "MARI" (Marikina) and "ITALIA" (Italy), which

together make up the word "Maritalia," were combined to celebrate and show pride in this

relationship. Currently, MARITALIA is situated on an acre of land on E. Sto. Tomas' Rodriguez

Avenue Marikina City, Nio. Modern imported Italian machinery created especially for bulk shoe

manufacture is housed there. Maritalia has 300 employees and can make up to 24,000 pairs of

shoes each month when operating at full capacity.

Source: Rusty Lopez official website (2020)

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Rusty Lopez: Target Market

Who are the potential customers?

Italian leather is frequently very expensive. Customers prioritize style and quality above

all other attributes, so the business turned these preferences into reality to make room for Rusty

Lopez. Rusty Lopez is a common brand for their leathers. You will undoubtedly find what you

need, whether it be casual or formal, outdoor or business. The potential customers are the people

in Italy who seek fashionable footwear that is affordable and trendy. Thus, the potential customers

in the market range from any age and all genders. At Rusty Lopez, you can always get a fantastic

deal on men's, women's, and children's footwear, apparel, and accessories. Rusty Lopez has a

reduced price point so that it may appeal to its target audience, which is young people.

Where are they located?

The prospective buyers are probably in city areas, whether working or tourists, Filipinos

or locals, searching for high-quality and reasonably priced footwear, clothing, and accessories.

Moreover, it can be located near the malls or stores where tourists or locals usually go.

How large is your target market?

The target market consists of specific people, whether locals, tourists, or Filipinos, such as

individuals, professionals, families, and communities. People who are at least 20 years old and

above (gender inclusive) have the means and want to buy the product. People who are interested

in leather and desire fashionable, modern designs are those who are eager to purchase products

with designs that suit their preferences.

What are the needs and wants of your target market?

The target market's demands and desires to be met in order to improve customer relations

management. must additionally provide them with excellent quality and reasonably priced goods
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in order to satisfy their consumers' needs and wants for cost-effective footwear, apparel, and

accessories.

What criteria do they use in marketing their buying decision?

The target market's distinct criteria used in their buying decisions influenced by marketing

is what appears to be the value of the product. Italians deal on items like high-quality leather Italian

shoes, luggage, or elegant clothing for an expensive fee. But clothes and shoes from famous brands

are way more expensive in Italy. By that, Rusty Lopez will be able to enter the market in Italy.

Social media marketing will be a great help in promoting their brand. So, they can let the people

know how good and affordable Rusty Lopez is.

Rusty Lopez: SWOT Analysis

Strengths:

• Manufacturing and marketing of quality, authentic, and affordable footwear

• Strong innovation enables them to modify their products to suit changing consumer tastes.

• A trusted brand for the footwear section which is known locally and internationally.

Weaknesses:

• In need of more promotional social media platforms

• Low sales on other products such as apparel, accessories, and bags.

• Does not have an environmentally friendly packaging

Opportunities:

• Can strengthen product diversification

• Potential Market

• Retaining current consumers and gaining new ones through high-quality items
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Threats:

• Strong competition within known brands internationally

• The emergence of new brands being competitive in price.

• Fast-changing fashion trends

Rusty Lopez: Unique Selling Point

The fast emergence of different brands of footwear made the market more competitive and

completely brought challenges to local brands to be known globally. But what makes Rusty Lopez

stand out locally and internationally is its capability of producing high demand but not sacrificing

the quality and the competitive reasonable price. Rusty Lopez's craftsmanship and affordability

have allowed the business to thrive in the marketplace. It has also created new and inventive styles

and designs that suit the current trends and interests of the public. According to Lito Lopez,

president/CEO of the Lopez Group of Companies they have created innovative technologies that

provide their clients with the ideal fit in terms of cost, design, quality, and style. As the customers

say, “what you see, is what you get” this proves that Rusty Lopez meets the expectation and

satisfaction of its consumers with the products and services that Rusty Lopez provides.
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3. TAPEUY

The Philippines produces tapuy, sometimes known as tapuey or tapey, which is a rice wine.

It is a customary drink from Banaue and the Mountain Province, where it is served at festive events

like fiestas and cultural fairs as well as important occasions like weddings and rituals marking the

harvest of rice. It is made with onuad roots, ginger extract, and a powdered starting culture known

locally as bubod, as well as either pure glutinous rice or a mixture of glutinous and non-glutinous

rice. An Ilocano name is Tapuy. In Igorot languages, the wine is more frequently referred to as

baya or bayah. (Tui, C., 2017)

Like many other rice wines, the qualities of tapuy are influenced by the production method

and components chosen by each producer. However, tapuy is typically a clear, full-bodied wine

that is mildly sweet, strongly alcoholic, and frequently leaves a lingering taste. The alcohol

concentration is 28 proofs, or roughly 14%. It doesn't contain sulphites, a preservative found in

other wines that can occasionally result in negative side effects like allergies and hangovers.

Additionally, there is no water added to the tapuy, and no sugar is added.

The original owner of Tapuey is Ken Alonso. In Ilocos Norte, where Ken Alonso spent his

formative years, served as the impetus for the establishment of his beverage firm, Proudly Promdi.

His conviction and objective are to demonstrate Filipinos and eventually the rest of the world the
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potential of tapuey, a Philippine rice wine. After receiving some initial favorable feedback from

customers in Manila, tapuey took off, giving rise to the nickname Proudly Promdi, which is short

for proudly from the province. In Ken's attempt to generate interest in and a market for this obscure

good, many Filipinos were introduced to the product and had never heard of it.

Glutinous rice known as malagkit, which is frequently used for suman, is utilized to make

tapuey (rice cakes). Because malagkit rice naturally contains more sugar, the finished product is

sweeter, but it also necessitates more careful monitoring to stop the sugars from over-fermenting

and producing too much alcohol. The rice is first cooked, then combined with yeast (bubod), and

finally sealed with air to ferment for several weeks. More carbohydrates will develop into alcohol

as the fermentation process continues. Neither outside alcohol nor water are added. That's also true

with sugar; if it weren't, the fermentation process would be accelerated, and the flavors wouldn't

develop organically. After that, the alcohol and rice are separated to produce a clear, bottle-ready

product, which is subsequently pasteurized. The method is much more primitive when compared

to making sake, thus there is a ton of room for improvement. The process is still in its infancy, so

there is a ton of room for development and refinement that may help tapuey become FDA-

approved, produce more of it, and allow producers to experiment and play around with its various

production components. (Chad, 2020)

Tapuey: Target Market

Who are the potential customers?

Tapuey has a 14% alcohol content. However, tapuey is typically a clear, full-bodied wine

that is mildly sweet, strongly alcoholic, and frequently leaves a lingering taste. The potential

customers are the Italians who love to drink wine. Thus, the potential customers in the market
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range from the age of 20’s and above. According to Thomas (2022) from the Italian National

Institute of Statistics, while the number of wine drinkers has grown since 2011 (by 2.3% for males

and by 9% for women), the frequency of consumption has decreased. The Institute of Statistics

Overall, 66% of Italian men and 44% of women drink wine. The proportion of people who drink

wine, broken down by age category, is between 20 and 34.

Where are they located?

The prospective buyers are probably in urban and rural areas, whether they are locals,

tourists, or even Filipinos, as long as they love to drink wine. Moreover, they can first start selling

it to malls or places where tourists and locals are mostly located. Then, they can decide to sell it to

a rural area where there are a lot of people residing.

How large is your target market?

The target market consists of specific people, whether locals, tourists, or Filipinos, such as

individuals, professionals, families, and communities. People who are at least 20 years old and

above, gender inclusive, have the means and want to buy the product. People who love drinking

wine are perfect for purchasing tapuey rice wine.

What are the needs and wants of your target market?

The target market wants people who are wine lovers to taste the delicious wine that

originated from the Philippines. The people who make the tapuey have an impact on how it is

produced or used. The founder was able to demonstrate the worth of the product through his sincere

efforts. That tapuey is regarded as delectable and is popular with the "haughty" and "highbrow"

types of people.

What criteria do they use in marketing their buying decision?

INTERNATIONAL BUSINESS AND TRADE

The target market's distinct criteria used in their buying decisions influenced by marketing

is what appears to be the value of the product. We might need to modify the traditional tapuey

marketing methods as Generations solidifies its wine preference in order to connect with its key

target audience. This generation, unlike the baby boomers, has grown up with technology and

frequently uses it to make decisions about purchases. Therefore, advertising them in newspapers,

on television, and on radio is the ideal strategy for the product to sell to its expected potential

customers.

Tapuey: SWOT Analysis

Strengths:

• One of the best locally made wines in the Philippines

• The healthiest alcoholic drink in the market

• An ideal wine perfect for a variety of dishes

Weaknesses:

• It is not a popular wine product in the commercial market.

• It does not currently have a permanent store.

• It has a weak online presence.

Opportunities:

• It has potential for development and improvement that can keep pace with cocktail drinks

of the frontrunner brands.

• It can be promoted internationally with a potential to suit the Italian style and taste.

• Can gain new customers and wider reach.

Threats:
INTERNATIONAL BUSINESS AND TRADE

• There are strong existing competitors.

• It lacks online advertising.

• Climate change

Tapuey’s Unique Selling Point

A pure wine that captures the unique taste of naturally fermented glutinous rice. Tapuey is

a clear, full-bodied wine with rich alcoholic flavor, moderately sweet and gives a lingering taste

at the end. The entire production process is what makes tapuey different where there is no sugar,

water or outside alcohol is added. It doesn’t also include sulphites or chemical preservatives that

can cause hangovers and allergies. A drink that can be enjoyed warm or chilled together with your

favorite dishes. It works well in cocktails as well and makes an impressive flavor enhancer in

cooking. Tapuey also offers a lot of health benefits and some of these are the following: promotes

blood circulation, reduces inflammation, improves immunity and metabolism, serves as an

antibacterial substance, helps improve the skin's protective function or slows down the signs of

aging by protecting the skin against the harmful effects of UV rays, helps with the destruction of

free radicals that cause cancer, and boosts stomach health because of the presence of lactic acid

bacteria which are considered probiotic. Thus, tapuey is derived from the ancient ceremonial drink

of the Philippines, therefore it gives an authentic taste of the Philippines.

INTERNATIONAL BUSINESS AND TRADE

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