ALICORP S.A.A.

1. INTRODUCTION

This article briefly describes the organization and its current competitive
situation of the company Alicorp S.A.A. This company was chosen for its
leadership in the mass consumption food sector in Peru. Then, an approach to
strategy formulation will be presented, such as: creation of a storyboard,
prototyping, design thinking and the Business Model Canvas will be carried out.
In addition, the strategy will be analyzed by testing a hypothesis to identify
vulnerabilities, identifying the central assumptions; In addition, to collect data to
test the assumptions and based on the results the hypothesis will be tested. On
the other hand, model 4 A will be applied based on its alignment, skill,
architecture and agility. Finally, a synthesis of the conclusions of the research will
be presented.

1.1. COMPANY DESCRIPTION

Alicorp S.A.A. is a Peruvian company founded in 1997 and is part of the

Romero Group. It is dedicated to the industry of processing, packaging,
manufacturing, buying, selling, importing, exporting and marketing all types of
food products and derivatives structured as follows. Mass consumption, Food,
home care and personal care, Alicorp Solutions, Ingredients and inputs for the
sectors of Bakery, Gastronomy and Large Industries, Aquaculture Balanced feed
for shrimp, salmon and fish, Milling Refined flours and oils made from sunflower
seeds and soybeans. It may also engage in the provision of strategic advisory
services and establish authorized public or private customs warehouses. On the
other hand, its growth and strategic strengthening is based on the leadership of
its brands in the markets where they operate.
 The variety and quality of its products that it manufactures and markets is
associated with the efficient distribution and transport capacity to reach all the
markets and warehouses it supplies; which allows it to generate synergies that
guarantee a diversified business structure, capable of performing successfully in
a highly competitive environment.
It's like that; that with quality, innovation and competitiveness helps raise
the standards of the region and contributes with great effort to support the
development of Peru's economy.
Finally, Alicorp topped the category with a market share of 81%. Leading the
national market. Also, it is important to note that the company Alicorp has been
listed on the stock exchange since 2004.

1.2. COMPETITIVE SITUATION

The company has a consolidated profile in the country, with a share of

81% in the national market and with an important presence in several Latin
American countries, the company's objective is oriented to the development of
mass consumption products, seeking the optimization of each production
process. It has vertical integration of the production chain (from the process of
capturing the raw material to the delivery of the finished product in its
distribution channels). Finally, Alicorp invests in research, development and
innovation with the aim of improving products using the technology offered by
the industry, in addition, it must be taken into account that the competitive
advantage of the company is that of cost leadership.

1.3.COMPETITIVE ADVANTAGES

The competitive advantages of Alicorp that have been identified are the
following:
➢ The ability to collect raw materials: Production capacity is determined
not only by the production plants installed, but also by access to raw
materials. In Peru, food production is developing favorably, but growing
less than the demand for products from the basic basket, so it is
 important to have access to production units. Alicorp has the largest
collection network in the country, which is complemented by the import
of inputs for the development of mass products. For example, soybeans,
with the aim of meeting demand.
➢ Innovation and cutting-edge technology: Alicorp has a series of plants to
produce its different lines of business, but also has high levels of
productivity, since it has technical processes. This is due to a constant
review of the processes and new technologies available in the world.
➢ Distribution through all channels: Alicorp has a network of companies
that belong to the Romero Group. for example, Ranza that is dedicated
exclusively to distribution, through which both modern and traditional
channels are accessed. This is how Alicorp products are found in all stores
and markets in Peru, being preferred by consumers. In other countries,
such as Colombia, Ecuador, Bolivia and Uruguay, where it has also proven
to be efficient in distribution.
➢ Market knowledge: Alicorp has proven to know its customers, creating
products according to customer expectations, even exceeding them. This
is the engine of innovations and that is why the company has developed
a variety of products with the aim of reaching various segments, with
different presentations.

2. FORMULATION OF THE STRATEGY

The following table presents the main strategies implemented and to be

implemented; The same ones that were found through the use of different
strategic tools:

Strategic tool Strategies Strategies under Strategies to be

implemented implementation applied
Cost leadership Improve the Improve the Improve the
(Porter). equipment of the equipment of the equipment of
production production the production
process. process of the process.
Investments of S/ aseptic line for an
 125 million in investment of US$
aseptic cup 87 million in
packaging line, (2022).
process line and
filling (2022).
Market Leader Concentration of Invest in
(SWOT). 47% of the marketing
domestic oil strategies to
market. maintain your
Concentration of position in the
95% of the market.
market of sauces
and mayonnaise.
Low bargaining Main buyer of Maintain the
power of inputs such as company as the
suppliers soybeans flours main buyer of
(Porter). nationwide. inputs for
human
consumption
nationwide.
Vertical Nationwide Maintain
integration of distribution with traditional
the distribution RANZA. distribution
chain (Selling channels with
and distribution the help of
expenses). RANZA, and
implement
online
distribution
channels.

2.2. STRATEGY DEVELOPMENT

According to the Puro Marketing Magazine in its study points out that social
networks have established themselves as the engine of many businesses to publicize
their products, get to reach the target audience and increase their income. Therefore,
the commercial strategy in RRSS becomes a very powerful tool to support commercial
activity.
 IMAGES FOR SOCIAL NETWORKS

SOCIAL NETWORKS ARE USED TO:

- Launch contests and sweepstakes

- Buy products and services
- Find product and service recommendations
- Advertise a brand

2.3. CANVAS BUSINESS MODEL

Key partners Key activities Value Customer Customer

propositions Relations segments
National System for We feed a Personalized Young
suppliers of the collection better relationship adolescents
inputs of soybean tomorrow. with direct Older Adults
Olpesa, inputs, oils, Because customers
lamsa, among feeding is through
Indepal, others. inspiring, customer
leaginosas Transport improving, service by
Pucallpa, and storage growing; is to
 Rossel, Palm of raw change the phone and
Oleo, Olpasa, materials and world. This is email.
Indupalsa and supplies. not a
Indomalsa, all Quality statement, it
located in the control of is a
regions of San products. movement.
Martín and Production. They offer
International Distribution well-being
suppliers of network. for families,
soy and flour. Marketing through the
Ranza Key production Distribution
Banks Resources of rich, channels
Shareholder healthy and
bondholders Collection nutritious RANZA, with
centers for food with a national
inputs and positive coverage and
impact on
raw materials export
society and
processing the services.
plants. environment.
They
Trucks,
diversify
warehouses. their
Qualified products
covering
personnel.
various
segments
and food
needs.
Product
Innovation
Cost structure Sources of income
Fixed: plant, warehouses, transport units, Sale of products of mass
personnel. human consumption,
Variables: soybeans, flours, oils among other personal hygiene and
inputs and raw materials, packaging. personal care.

New capacity and goals. Company executives explained that they will
begin a very relevant capacity expansion in 2022 with an increase of 240
 thousand metric tons in production capacity, becoming the leading company in
food production and marketing in Peru. In addition, they aim to achieve
leadership in mass consumption products in Latin America, based on the position
it currently occupies, especially in Bolivia, Colombia, Ecuador and Uruguay. That
is why it will increase its presence in other markets such as Panama and other
Central American countries. To achieve this leadership, as well as market
penetration. This is combined with investment in technology and automated
processes to achieve homogenized products, which are preferred by consumers.

3. CONCLUSIONS AND RECOMMENDATIONS

This strategic plan has been created for the company Alicorp S.A.A. with
the supreme purpose of achieving leadership in the production and marketing of
food, not only in Peru, but throughout Latin America. This, in addition to being
socially responsible, as well as profitable, is reflected in your goals, both in the
long and short term. But for this growth to materialize, it is necessary to monitor
the implementation of the strategies. This will be done by measuring the
proposed indicators each year and comparing the result with that of the CPOs.
In case there are gaps, it will be up to the Directorate-General to propose the
change.

To achieve success in strategic implementation, it is recommended:

• Implement this strategic plan, under the leadership of general management.

• Commitment of senior management to adopt the new vision and mission,

along with the values and code of ethics. This same commitment must be
manifested in the momentum for the implementation of the strategies.

• Allocate the necessary resources to achieve the short-term objectives that

were developed.

• Change the organizational structure, emphasizing the area of corporate social

responsibility.

4. BIBLIOGRAPHY
Investing.
https://es.investing.com/equities/alicorp-historical-data

Lima Stock Exchange.

https://www.bvl.com.pe/emisores/detalle?companyCode=21400

Alicorp.
https://www.alicorp.com.pe/pe/es/nosotros/memoria-anual/?page=2

Magazine. America Economy.

https://www.americaeconomia.com/negocios-industrias/multilatinas/peruana-
alicorp-invertira-us-125-millones-en-2022-con-el-foco-
en#:~:text=El%20grupo%20Alicorp%2C%20una%20de,en%20fortalecer%20su%
20negocio%20acu%C3%ADcola.

PuroMarketing Magazine.
https://www.puromarketing.com/42/211825/claves-para-marca-aumente-
ventas-redes-sociales