Serg’s Chocolates Marketing Plan

Prepared by
Sairyll Sabando

Priniciples of Marketing
Mini Marketing Plan
Sir: John Michael C. Vernizer
January 30, 2023

I. Executive Summary
Serg's Chocolates, a well-known and well-loved chocolate brand in the Philippines,
illustrates some of the risks entrepreneurs face, particularly from the macroenvironment. Serg's
was a market leader from the 1960s to the 1980s. It was successfully revived in the 1990s.
Today, however, it has all but vanished not only from store shelves, but also from public
memory.

In her article "Whatever Happened to Serg's Chocolates," Mia Marcy explains the rise
and fall and rise and fall again of the once-thriving chocolate company.

According to Marci, the convergence of disparate factors contributes to the demise of

companies that one might assume were too large or too entrenched in the market. One example is
Serg's Chocolates. Anton Goquilay founded Serg's Chocolates in 1954 as Serg's Products Inc, in
honor of his son, Sergio. "Almost as soon as they launched their brand in the 1950s, they became
the darlings of the era." Their candy bars were an instant hit, competing with international
variants sold in the country at the time. It was successful for the next two decades after its
inception. Things began to change for the worse in the 1980s, however."

The Goquiolay family immigrated to the United States during the height of sociopolitical
and economic unrest during the Marcos administration. The company was absorbed by the
government under the Asset Privatization program during the transition from the Marcos to the
Aquino administrations. Serg's has vanished from store shelves across the country.

The young boy named after the Goquiolay family grew up in the years that followed their
migration. After a stint as a marketing professor at a US university, he summoned the courage to
return to the Philippines in the early 1990s and begin again. His first step was to reclaim control
of his family's business. Sergio Goquiolay returned to Manila to reclaim his family's business,
successfully reintroducing Serg's Chocolates to the public eye.

Sergio Goquiolay relaunched Serg's Products Inc. after regaining control of the company.
In almost no time, the brand was back on store shelves and in Filipinos' hearts. Despite stiff
competition from multinational corporations, Serg's has clawed its way back into relevance. By
the mid-1990s, the company was ready to expand its operations and begin exporting to
neighboring Asian countries.

The Asian financial crisis happened in 1997. Despite consistently strong sales, it put
Serg's into debt. The company had taken out loans in dollars to finance its expansion, and as a
result of the peso devaluation at the time, it suffered massive losses. Sales were still strong, but
not enough to cover the company's debts. This, combined with labor disputes within the Serg
factory, pushed the company even deeper into debt. The company decided to cut its losses
because its financials were in the red. Serg's Products Inc. went bankrupt in 2001. Sergio
Goquiolay died the following year.

II. Company Profile

● Company Name: Serg’s Product Inc.

● Industry: Chocolate Industry

● Headquarters (location): 145 Cordillera, Santa Mesa Heights, Quezon City,

1114 Metro Manila

● Year founded: 1954

● The number of employees: 5,000 employees

● Annual revenue (estimated): no details available

● Major products and/or services: Serg’s Product includes Breakfast cocoa,

Choc- o-malt, Milk chocolate bars, Choc-lettes,
Chocolate bars with orange flavor,
Serg’s chocolate bars, Egg chocolate, Pralin,
Moonbits, and Lollipop.

● Target customers: Serg’s Product Inc. target customers are Filipinos in middle-
class adults and children who loves sweets. But kids
are one of their main consumers.

● Distribution channel(s): Serg’s Chocolates are sold to wholesalers and retailers,

such as; in convenience stores, sari-sari stores,
and in supermarkets

● Key competitors: Cadbury, Nestle and Amul, Lala, Kitkat, choco bot, Nips,
Flatops, Curly tops, gold coins, cloud 9 are one of the
 popular local chocolate brands competing alongside with the
Serg’s chocolate.

● Link to website: Facebook page https://www.facebook.com/sergsbrands/

III. Market Segmentation and Targeting

Chocolate goods are popular with preschool and grade school students. They have a
natural taste for sweet-tasting meals through their early life. They are drawn to candy and
chocolates because they help them cope with their agony and bring pleasure. Furthermore, when
it comes to eating, youngsters place a high value on sweet and fruity-smelling candy. The
requirement for calories rises during their growing period. They are biologically drawn to food
sources that provide energy. Children are an important market group for the Serg's Chocolates
brand since they enjoy eating chocolate snacks and drinks and appreciate the company's
creativity.

The issue that Serg’s Chocolates addresses is that it can be purchased in the market for a
low cost while still being of high quality, exactly like pricey chocolates. It is also one of the few
products that can compete with and outperform branded chocolates in sales. Due to its
accessibility and popularity among young people, many Pinoys love it and even spread the word
about it in many locations.
Its leading branded products included SERG’S Breakfast Cocoa, Choc-o-Malt, Milk
Chocolate Bars, Chocolettes, Chocolate Bars with Orange Flavor, and a host of other chocolate
lines. Serg's chocolates from the sari-sari store were an important component of a lot of
children's joyful childhoods during the 1980s and the early 1990s. When there weren't many
local chocolate brands and imported chocolates were only reserved for special occasions (or
when there was enough to go around from family members' pasalubong when they traveled
abroad), the chocolate bars, which had a recognizable pinstripe wrapper, were a favorite among
Pinoy kids. The target market for this product is Filipino children, teenagers, and adults who
enjoy sweets and value affordable meals. Additionally, individuals who are brand loyal help
spread the word, which attracts more potential customers.
 Psychographic and behavioral market segmentation techniques have been employed. The
market is further split by psychographic segmentation into segments based on lifestyle,
personality, and socioeconomic status. The last set of elements to consider for behavioral
segmentation is user attributes, buying occasion, loyalty, and numerous interactions with the
brands. To describe the major market segments for the Serg's Chocolates brand, psychographic
and behavioral segmentation techniques were used.

Teenagers are an important market for Serg's Chocolates since candy or chocolate treats
are an inexpensive, conveniently available, and delicious snack that they can consume quickly.
Chocolate snacks are frequently served in convenience stores and food stalls that are popular
with youngsters. Teenagers' need for chocolates generally grows on important occasions such as
anniversaries, birthdays, and so on.

Key market segments include young adults aged 19 to 29 who are regular chocolate users
and are familiar with Serg's. Reviews would help the company's repositioning in the Philippine
chocolate sector. Young adults, like teenagers, are an important sector for Serg's chocolate
because it appeals to their ideals, emotions, and wants. Young individuals would benefit from the
physical, mental, and emotional effects of chocolate, as well as satisfy their cravings for Serg's at
a reasonable price.

The main segment that Sergs focuses on is the psychographic in children, because for
them it gives pleasure, passion and it is also one of the things that gives strength to their body.
Among the benefits of chocolate, we know that it has powerful antioxidants. Passion for
chocolate can give high income to its owners, we Filipinos know that we love sweets, and we
support local businesses.

IV. Situation and Company Analysis

Environment Analysis
 According to World Chocolate Directory.org Serg Company was one of the affected of
financial crisis in the year 2001 when the dollar started to double up its value. the raw material of
the chocolate product gets higher its price until the company is in debt. it results to lays off
employees and result of unemployment. but based on the Interview gather of GMA News last
December 10,2020 Mr. Randy Ong the brand manager of Serg Chocolate "Serg will comeback"
and "Serg will bring back their memories" He did not say the exact day of the opening again of
the company but it will produce again their brand.

Today as the dollar become higher and higher its value and the company is starting over
again it will become more challenging to them because now people prefer to conserve their
money than to spend it

Technical Environment

Based in the Inquirer.net "Philippines is on the top 2 rank that uses social media. It's very
great when Serg company uses social media to attract again their loyal customer and give
insights of what the company offer in Modern Branding. And give a clueless mind to their
customer to think if the taste is the same or it improves that taste of the product. Technically.
Social media now is rampant in the Philippines it gives a great help to bring the company back.

Industry Analysis

Chocolates are now trending in many countries including the Philippines. many company
that sell chocolates and maybe export to other country because of the demand of it. the demand
of it is expected to get high in the market especially in European country like Belgium and
Switzerland (ayzanyc.com) and now many chocolates bar with many flavors is on trend like
chocolate with mixed nuts, marshmallow, fruits like strawberry and the very popular one is with
raisins.

Competitive environment

Before, Serg's was at the top of the market, which produced an accessible chocolate brand
in the Philippines. Still, as time goes by, the competition has been increased because of
globalization. In this era, competition is too intense. Many businesses (including local and
nonlocal brands) offered the same affordable chocolate (For example: Ricoa curly tops, Price:
around P17 for 15 pieces) in the Philippines, which lead to a higher number of Serg's
competitors. Enable for the Serg's to be in the game; the business must develop a difference to
attract customers.

Political Environment

All of Serg's grand plans was crashed and burned when the 1997 Asian Crisis hit the
Philippines. The company had taken the dollar loan to finance their expansion and suffered
massive losses from the Peso devaluation of the time (Serg's Chocolate Factory Facebook Page)
because of that the value of the dollar gets higher and the company did not pay it back back 1954
when Anton Goquilay the price only of the dollar is almost not too far to the Peso value. but time
goes by until 2001. 47 years later the price of the dollar can't compare to the Philippine Peso.

V. Customer Decision-Making Profile

When you're feeling down, a bite of chocolate will lift your spirits and so improve your
general mental health. Chocolates are also brain food, represent happiness, and work as stress
relievers (Nidhi, 2021). Our mental health was profoundly impacted by the pandemic's "new
normal." In-person classes were replaced by online ones, and employees began working from
home. Serg's is a convenient on-the-go snack, so teenagers may quickly access it. They
frequently seek strategies to increase their concentration while studying and employ a reward
system. Their allowance is sufficient to buy chocolate as a special treat for their beloved pet or as
a birthday present. On the other hand, we also strive to enhance adult workers' mental health.

Factors Influencing Customer Decisions

Geographic characteristics
 Davao City and the entirety of Region IX were designated as the Philippines' official
cacao capitals in May 2021, making the city the nation's capital of chocolate. Although Serg's
primarily targets middle-aged and adolescent consumers in Quezon City, they can expand there
by partnering with cacao businesses there. They can advertise their goods throughout the
Christmas season in South Luzon, the remainder of the NCR, and the City of Manila, which has
the highest population density at 73,920 people per square kilometer.

Personal and demographic characteristics

For each target market, Serg's can develop distinct flavors and product lines. Starting
with young children (ages 3 to 12) who naturally gravitate toward sweets and frequently want for
a snack to share with family members and friends. Male teenagers who use their allowance to
buy chocolate to court girls, and female teenagers who use it to buy things and put them on
social media. Then come the initial clients, middle-aged people with low to high incomes who
often visit the grocery store to buy food for their family.

Social and Psychological Characteristics

Filipinos are naturally happy people who place a high value on family as the source of
their happiness. Additionally, PhilStar demonstrates that eating brings comfort, contentment, and
enjoyment. Our target market is the lower middle class and low income group; they enjoy
dramas or teleseryes. They enjoy drama and nostalgia, and in these tough times, thinking back on
the happy times in the past helps them maintain good health. Most significantly, they are devoted
to a company whose products are reliable, tried, and reasonable all at once.

Reaching the Customer

Influencer marketing would be a great approach to bridge generations past and present.
Parents have a significant impact on what their children eat, and vice versa. Serg's method can
make advantage of a number of parent-child influencers.

Since social media has over 3.6 billion users and is undoubtedly the finest means to
promote promotional contents, social media marketing is a need. To efficiently interact with the
market, there are also built-in advertisements analyzers that are simple to utilize.
 Promotions are a crucial component of strategy. People adore discounts, coupons, and
other sales incentives, which are widely available. They seize limited-time offers right away and
hang onto huge promotional events.

VI. Positioning and Differentiation

Reaching the customer

The best distribution channels for this company are direct channel and/or retail channel.
The price will not mark up so much because in the case of direct channel, the product from the
producer will deliver to the consumers directly with no additional cost and for the retail channel,
you will have broader market and higher chance of consumers will buy it because of their
strategic locations.

Competitive Advantage

Serg’s Chocolate has its undeniable appeal from adult Filipino chocolate lovers, the tito’s
and the tita’s up to the millennials for its well-known world-class Filipino made quality. It has a
lot of varieties to choose from that will surely enjoyed by everyone.

Market Niche and Positioning Strategy

The target market niche that fits is the retail and convenience stores. Sweets and
confectionaries like Serg’s Chocolate is popular for its classic logo that will catch the attention of
the potential buyer. The positioning strategy that I want to suggest is to maximize the popularity
of the product and produce more to supply and meet the demands of the consumer. The brand
itself has kept its appeal to the market up to this date, the only problem is the limited production.

Positioning Statement

“To the chocolate lovers of all ages, Serg’s Chocolates is the only locally made chocolate
that brings pride to every Filipinos because of its world-class quality.”

VII. Branding

Brand Description
 The Philippines’s best-loved local chocolate, Serg’s is best known for its cocoa-flavored
bar that tops the standard for a go-to comfort treat. Founded in 1954, it was dubbed as the
"darling of its era" during its active years until the 2000s. Serg’s provides the splendid feeling of
an unmatched peculiar flavor, the iconic taste of which goes hand in hand with good memories
of childhood. In 2022, amidst their plans for restoration, the company decided to utilize
ecological, nonpolluting substances for the product’s packaging in an attempt to assuage waste
disposal and plastic pollution.

Brand Positioning and Strategy

Serg’s Chocolate is most notable for the exceptional local Pinoy experience it provides
for its patrons. A bite of Serg's chocolate brings a generation of Filipinos back to the memories
of their younger days in the streets. This chocolate is flavorful, indulging, and addictive in the
best way, and to its consumers an insignia of Filipino childhood.

Thus, the brand must embody its strong, differentiating characteristics that make it stick
out better than its international variants. A series of cartoonized characters closely named after
the brand Serg’s with physique and characteristics strongly resembling those of Filipino origins
will establish a familiar trademark among the masses, especially the target segment consisting of
toddlers and schoolagers. Serg’s will boost its reputation as a Filipino-representing brand that
promotes the country’s diverse culture and symbolism by incorporating national symbols of the
Philippines along with its brand.

Establishing a unique and defined position in the market will allow the brand to stand out
among its competitors. A brand that provides value by means of creativity, information, and
innovation is a strategic pursuit to go beyond generations and still resonate with different target
audiences.

VIII. Marketing Mix (Four Ps)

Product Strategy
 Serg’s Products Inc. is a manufacturing company owned by the Filipino-Chinese Antonio
Goquiolay which produces chocolate goods and is based in Cainta, Rizal Philippines. It was
founded the year 1954 and during that time it was the first modern manufacturer of chocolates,
candies and other sweets. The company was known by the market because it produces fine
chocolates which they export to United States and in some countries across Asia. In late 80’s,
Serg’s products are popularized because of its heavy promotion on radio, TV and other print ads.
Some of their products succeeded while others did not. One of the Serg’s Inc. products is the
Serg’s chocolate bars which are offered in different variants. These brands had made a mark in
the Philippine market as it became one of the pinoy’s favorites. This brand gradually lost its
position in the market due to some labor problems concerning PCI Leasing and Finance Inc. and
along with these is the emergence of their foreign competitors where in Filipinos are enticed by
these imported brands of chocolates. To revive the brand “Serg’s Chocolate” and to renew its
position in the market as one of the best Pinoy exported products.

Serg’s Chocolate targets all those chocolate lovers, including kids,teenager as well as
adults. We change the positioning statement to English language as we suggest to introduce it as
one of the best Pinoy’s exported goods. “Serg’s Ikaw pa rin” –

   Adopt the brand’s popular tagline during early 90’s to easily introduce to the Philippine
market that the product being introduced is in line with the long lost Serg’s Chocolate brand. The
company is recommended to invest on factory machineries as the first step in reproducing the
serg’s chocolates.

In accordance with the confection’s innovations, we suggest to Serg’s Products Inc. to

produce additional variants of serg’s chocolates. They may introduce it in additional flavors like
caramels, dark chocolates, with almonds and others. These chocolates can also be offered in
different forms (not just in bars) like enrobe the peanuts and biscuits, as candies or even
powdered drink.

We suggest changing the idea of making the chocolate wrappers from colorful to simple
combinations of black, white, cream and other close-colors to convey its image as exported
goods.

Pricing Strategy
 As a business who tries to revive a product, our team would integrate a
combination of demand based pricing along with cost pricing strategy. We will set a price which
we think would best suit the capability of our customers in acquiring our product. Through
selling at the customers price we are positive that it will allow us to gain reputation and attract a
large number of potential customers. We will offer high quality products for a lower price while
maintaining profitable transactions by incorporating cost pricing which will enable us to offer the
ideal price of product to provide for our customers after we calculate the expenses of our
company in term of production, equipment, other operations and added a markup for profit. We
are positive that our strategy would be efficient in allowing our team to meet the equilibrium of
price making and profit gain which will both benefit the company and its consumers in a way
that we can offer a price that would let us gain profit and our consumers the capability to buy
these products in an affordable price.

Place: Distribution Strategy

Headquarters (municipality, city, country)

Serg’s Products Inc., Cordillera, Santa Mesa Heights, Quezon City, Metro Manila,
Philippines
Distribution channel(s)
Serg’s Chocolates are sold to wholesalers and retailers, such as; in convenience stores,
sari-sari stores, and in supermarkets.
Geographic characteristics
In May 2021, Davao City officially became the country’s Chocolate capital and the
Entire Region IX as the Cacao Capital of the Philippines. While Serg’s primarily target
middle adults and teenagers in Quezon City, they can expand in Davao area by having
parnerships with Cacao companies there. During Christmas seasons, they can market
their product in the City of Manila as the densest city with 73,920 persons per square
kilometer, the rest of NCR, and South Luzon Regions.

IX. Measurement and KPIs

• Followers – social media (Facebook, Twitter, LinkedIn, YouTube)

This will allow us to generate and evaluate if the company succeed in getting the target
market and its expected numbers

• Engagement – comments, likes, shares, page views, video views:

Aids in determining if we have build relationships with our target customers through
getting interactions and positive impressions from them.

• Total sales/revenue

Shows the percentage of target customers that end up buying our products.

• CTR (click-through rate) and reviews

Indicate if the company is successful not just in convincing customers to purchase the
merchandise but also in providing them quality products that satisfy their needs and
standards

X. Budget (Marketing Campaign)

 Item Purpose Cost Estimate
Rent Charges The office/warehouse will be 10,000/per month
acquired on rental basis
Plant and Machinery Tools and equipment needed 3.2 million
 Weighing and mixing pot for the production of Sergs’
 Warm mix
 Press whip Chocolate
 Cooling drum conveyer
 Extruder
 Cooling tunnel
 Rope sizer
 Forming machine
 Liquid powder filler
 Wrapping Machines
 Chocolate bags and making
machine

Factory and Office Equipment Office equipment make it 250, 000

 Tables and chairs easier to manage office-related
 Air conditioner
 Interior Equipment jobs and get things done on a
 Electrical fittings daily basis.
 Office vehicle
 others

Utilities These are things needed in 45,000/per month

 Water and gas order to run different
 Telephones
 Electricity tools/machines and to make
the factory operate smoothly.
Wages for workers Form of monetary 6,000 each employee/per cut-off
(Estimated number of employees: =300, 000
compensation for employees
50)

Estimated campaign impact: The estimated campaign impact will be 3,805,000. The items on
the table will aid to assess the anticipated cost of rerunning Serge's Chocolate. The items on the
list will also enable the store reach a broader audience and increase the visibility of its business.

XI. Action Plan

 Within three to twelve months, Serg’s Chocolate aims to accomplish the action plan in order to
bring back the company into business.

Timing Activity Type Brief Description Audience Owner

October 2022 Creation of Social Start promoting Serg’s Social media Serg’s
Media Accounts chocolate online users (Netizens) Products
for Serg’s Inc.
Chocolate

November 2022 - Product Promotion Allocate six months Netizens Serg’s

June 2023 and Advertisement promoting and advertising Products
Serg’s Chocolate by keeping Inc
up with the trend online,
monthly

April 2023 - July Hiring and Allocate at least three months HRMO hiring Serg’s
2023 Training of New to hire new employees and employees Products
Serg’s Chocolate train these employees on how Inc
Workers to properly produce products

November 2022 - Designing, Allocate most of the months Managers and Serg’s
September 2023 Creation and in a year, preferably 10 Designing Products
Production of New months, to conceptualize, People Inc
Products design and create new
products that will provide the
customers new variants for
them to choose from.

September 2023 - Preparation and Open the business to the Marketing Serg’s
October 2023 Launching of New market with the help of the Management Products
(Launch Date) and Improved social media promotion and
 brand of Serg’s creation of new product Office Inc
Chocolate variations for customers to
choose from.

XII. Appendix

Marketing Collaterals

In today's society, where everything relies upon technology, there are numerous ways to
advertise a brand. It reaches the target customers regardless of whatever social media channels
are used. People view businesses more easily online because it is the modern way, and people are
very active on social media. As a means of promoting our company as well as our products, we
have created a Blog Spot which is more easily communicated to target customers.

The link below is our Blog Spot website.

https://dimatawaranangel.wixsite.com/serg-s-chocolates

XIII. Reference
1. Serg’s Chocolates. (n.d.). Nicelocal.ph. Retrieved October 14, 2022, from
https://nicelocal.ph/quezon-city/shops/sergs_chocolates/

2. (2022). Coursehero.com. https://www.coursehero.com/file/p5te98r/Sergs-Chocolates-must-

have-a-10-increase-in-sales-within-a-year-through-customer/

3. Home. (n.d.). Serg S Chocolates. https://dimatawaranangel.wixsite.com/serg-s-chocolates

4.