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  • Universal Robina Corp

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    Denielle Clemente
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    Universal Robina Corporation uses price bundling and purchase location fences to offer products at lower consolidated prices than individual items. For example, a spaghetti package that includes sauce, pasta, and extra cheese costs less than buying each item separately. While URC's confectionary sales declined due to store closures during the pandemic, its agro-industrial and commodities businesses saw 9% year-over-year sales growth. Through better cost management and favorable input prices, URC's operating income increased 8% despite additional COVID-19 related expenses. Bundling complementary goods saves consumers money while still providing an adequate price for URC.

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    UNIVERSAL ROBINA CORP

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    Universal Robina Corporation uses price bundling and purchase location fences to offer products at lower consolidated prices than individual items. For example, a spaghetti package that includes sauce, pasta, and extra cheese costs less than buying each item separately. While URC's confectionary sales declined due to store closures during the pandemic, its agro-industrial and commodities businesses saw 9% year-over-year sales growth. Through better cost management and favorable input prices, URC's operating income increased 8% despite additional COVID-19 related expenses. Bundling complementary goods saves consumers money while still providing an adequate price for URC.

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    © All Rights Reserved
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    5 views2 pages

    Universal Robina Corp

    Uploaded by

    Denielle Clemente
    Universal Robina Corporation uses price bundling and purchase location fences to offer products at lower consolidated prices than individual items. For example, a spaghetti package that includes sauce, pasta, and extra cheese costs less than buying each item separately. While URC's confectionary sales declined due to store closures during the pandemic, its agro-industrial and commodities businesses saw 9% year-over-year sales growth. Through better cost management and favorable input prices, URC's operating income increased 8% despite additional COVID-19 related expenses. Bundling complementary goods saves consumers money while still providing an adequate price for URC.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    One advantage of price bundling and purchase location fences in URC is that they can

    consolidate a product with a lower price than its original. For example, if a spaghetti
    pasta costs 288 php as a solo pack, they will include complementary goods that will add
    value and make it cheaper for consumers. Assume there will be a Noche Buena
    Package for Spaghetti, their 699 includes sauce, pasta, and extra cheese.

    As per PhilStar Global interview, Universal Robina Corporation, Sought for comment,
    April Lee Tan, research head at COL Financial said, the confectionary suffered from
    closures of convenience stores where its products are able to reach consumers better
    by getting sold in a piecemeal basis. “URC suffered from double-digit decline in sales of
    candies and RTD (ready-to-drink) tea (C2) so those were the main drags,” she said. On
    the bright side, nine-month sales of Universal Robina’s agro-industrial & commodities
    businesses reached P22.3 billion, up 9% year-on-year, financial results showed.
    Overall, the company’s operating income from January to September jumped 8%
    annually to P11.9 billion on the back of “better cost management and favorable input
    prices” that offset spending on brand building and roughly P300 million coronavirus-
    related expenses to ensure business was running. It appears that by doing so,
    consumers will pay less and enjoy their product more.

    These complementary goods save consumers more money. The corporation appears to
    be doing something where they can get less while still providing the right price. Here,
    both

    the producer and the consumer profit more, and if the price is low, they benefit more.
    Their pricing strategy for their product is adequate for consumers. Often, the difference
    between other bundled products is shown here, and if not, this is where the bundle
    promo comes in, where consumers save more, especially those with grocery stores.

    Source: Cigaral, I. N. (n.d.). Universal Robina improves profits even as snack sales
    tempered. Philstar.com.
    https://www.philstar.com/business/2020/10/23/2051780/universal-robina-improves-
    profits-even-snack-sales-tempered

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