The present geographical dispersion of these two products Ore are from Indonesia and the Tang product is from Thailand. The Tang and Ore are supplied by the best available resources that the Kraft could gather with its firm company that's been proven through the years of expertise and experience of the worlds best food people. L. The Target Market Potential Market The potential markets for our products during our study are the people living within the area of South Mindanao and its capabilities to consume the product that's been endorsed by the company that we have been studying.
The persons raging from age 2 to 80 years old, the people with the capacity to buy and consume the product. They are the ones using it and accepting the product. We focused our product in South Mindanao because it is the only nearest place to us; it serves us a distributor here. People using this product are the people who love sweet and want an instant food that they can enjoy. Available and Qualified Market Ages 5 and above who are able to handle money Wholesalers Retailers Some distributors Served Market a.
The Primary Market: Tang - People who are thirsty and wants some refreshing drink and that is much less expensive than the tetra pack drinks. Ore - People who loves chocolates cookies b. The Secondary Market. Tang and Ore are same products that are produced by Kraft Foods; secondary markets are supermarkets, sub distributor, wholesalers, retailers and department stores. The areas that we undertake to study are the areas within South Mindanao the people surrounding it, their income capacities and their cultures. Penetrated Market Places were product usually enters.
Like for example, department stores, sari-sari stores, supermarkets and other market that can handle wholesaling. The penetrated arrests are all the areas in South Mindanao and are being distributed in all areas that our study covers. The areas that we undertake to study are the areas within South Mindanao the people surrounding it, their income capacities and their cultures. II. Situation Analysis 1 . Industry Review The Tang and Ore this are the following, for the month of August we gathered the overall sales data for the two products.
For the Tang we gathered 4,403 boxes for the area of South Mindanao for the market sale for the month of August. For the Ore we acquired a data of 216 boxes for South Mindanao market sale for the month of gust. From five to three years ago the company had a constant sales and growth. They had balance sales, but during the 1999 to present there was a decline. There was decline due to the Asian crisis making the company change its plans and its factory been transferred to Thailand. Due to the high wage rate in the Philippines, The Company also removes some of its employees.
The company also changes its primary or sole distributorship in the Philippines. Transferring the distributorship from Quelling distributor to JDK PHIL. Making a great change in the whole marketing plans. If the Asian crisis will continue the company will remain stagnant in its growth. The company will also expand try to expand its product lines to guarantee the customer satisfaction for the company and their products and also have to go on cost cutting plans. But if it should improve; the Philippine economy the company will gain its post in the growth and income.
The company would be able to help the Philippine in making the lives of Filipinos better by giving them Jobs. 2. The Macro Environment Socio-cultural If there's an increase of population there's a big possibility of increase of potential consumers. A lot of people will buy the product and consume it if population will increase. The product, since it is affordable all Filipino will be able to buy. For the Tang and Ore it target individuals where age ranging from 2 to 80. Everyone that has the capacity to think will whether male or female can buy the product Tang & Ore or doesn't target specific gender.
Technology Development For Tang, the technology advancement are, they have developed to incorporate in the powder instant drink calcium & vitamin C that is not commonly found in an ordinary juice drink. The Tang was designed to be nutritious made possible to through the R of the company. It uses brochures, posters, TV, and RADIO to communicate as a form of letting the public know about the product. They also have develop plastic pack that is can be easily to opened, that is child-friendly, that is easy to open & easy to dispose.
The advantages were not only applied to Tang Juice drink but also to the Ore cookies. Natural Environment Concerns Tang uses non-bio degradable foil packs that is harmful for our environment Ore uses non-biodegradable foil packs that are harmful for our environment. But the boxes that are used in the packaging and recycled paper to be able to help he environment. Economic Environment For the economic aspect the external factor will be that the economy of the country will arise due to high tax return from Kraft Philippines and increase its economic capabilities.
For the internal, the company aspect it will help increase used to expand the company and to satisfy more customers. Also improving the lives of their employees. Competitive Environment Tang has a lot of competitors that also produces instant drink mix, these competitors encourages or help Tang in their current obstacle of marketing their product. Like eight o'clock, Pompano and some of their competitors. Other competitor like Mill, nestle and other refreshing drinks that also has the same target market.
Ore has also competitors, because we all known that cookies is the best snacks all over the world, the Ore also has different competitor cookies, Hi-or & Apple Dapple, they also have the same market target as the products that we are studying. 3. Market Practices Distribution A comfortable and moist free warehouse with proper ventilation provides safety for the product. The product must maintain a proper temperature to avoid early or armature expiration. The products must also avoid direct sunlight and keep in a room temperature.
The warehouse depends on how much the distributor tries to supply for the whole area. For Tang: Thailand Appearance city JDK zebu JDK Dave Sub-distributor w/in south Mindanao Supermarket, retailers For Ore: Indonesia Supermarket, Retailer Pricing For Tang; egg. Liter pack pH. 50 'pack Case price w/out vat phew. 14 Case price w/ vat phew. 45 egg. Refill pack unit SIR phew. 65 Case price w/out vat phew. 30 Case price w/ vat phew. 43 egg. Refill pack unit SIR phew. 55 Case price w/out vat phew. 9 case price w/ vat phew. 7 120X48 List price (w/out vat)/case 773. 55 pesos List price (w/vat)/ case 850. 91 pesos SIR/peter 19. 50 pesos Every product there is a 20 percent for sole distributor, 5 percent for sub-distributor. To get the product share of the company, we must deduct the percent for every product. The price projection within 5 years and past price trends for Tang there is 4 percent increase. There is no available data for Nabisco Ore since the Kraft foods only acquired the ownership of Nabisco two years ago. There is a 2. 5 percent increase for every year for the past two years.
Promotion In this company we really need to promote so that the buyers or consumers will surely buy and use this product. We must also advertise this product so that the consumer will be aware and put into their minds that this product is good. Other tools to promote our product are to give a special offer to the consumers, also by giving a discounted price to the product so that the buyers will endorse it. We can also use effective implementation of brand initiated promos and aggressive TV, and Radio commercials. The company must also give some visual aids such as posters and brochures.
From time to time the company conducts product sampling in malls, supermarkets, sari-sari stores and streets within the areas that they covered. This will help ensure to increase the market sales for the company. 4. SOOT Analysts Internal Analysis Strength a. Effective implementation of brand initiated promos b. High demand of Tang Liter c. Aggressive TV, and Radio commercial d. Entry of new product e. Direct shipment for Manila f. Improvement of product to the target sales Weaknesses a. Strong competitor activities b. High trade return, additional merchandisers c. Short of Tang liter d.
Slow movement of Tang . Limited capitalization of tertiary outlets f. Low population External Analysis Opportunities a. To achieve growth of plus 20 percent versus last year. B. To grow census of outlets of plus 30 percent versus last year. C. Deployment of sales supervisors of all distributors. D. To target the product in all outlets. E. To improve sales especially in target area Threats a. Highly Competitive industry b. Shortage of product maintenance c. Fast improvements of high technologies 5. Demand Analysis Tang: 1 month Purchase x 60 months Summer Discount 20% (17,140 + 11,721) (60 months) = x . 5 = 2164,575 2164,575 = 10822,875 Ore: 1 month Purchase x 24 months 1507 x 24 180840 x . 25 = 45,210 45,210 + 180840 = 226,050 Ill. Significance of the Study/ Learning/ Recommendation: The Kraft Foods is a big company that hits the business world. That's why we find this company better to research and have a study on it. Due to the experiences of the company through the years we say that it is a reliable company to study and learn from its capabilities and products. The Kraft has so many products that it involves so many household food items designed to satisfy its customers in every walk of life.
But e only selected two of their products for our study; the products were Tang instant drinks and the famous Ore cookies. We find the two products interesting that's why we choose the products for this study due to its many surprising details and why do consumers sought for them. The significance of our studies is to find the products potentials, their processing, where it came from and where the target market is. For us to have a deeper understanding of a certain company and in business. For us also to know their data years ago, if that certain product gets a big income or if it clicks to the consumers or errs.
We learned what are the weaknesses, strengths, advantages, market strategies, market segment, product lines sources, technological and economic advantages that can be contributed to our country. We learned that the company is proportioning the increase of production volume, distribution and production sales rather than the last years records of sales and production. The company also plans to hire and deploy more supervisors to one of their sub-distributors in Mindanao to help train more people and supervise them. We recommend that to the products that we have studied to improve their reduction rate.
To increase the activities within the company to promote the welfare of the products and increase the funds for both R and the marketing people. Help the tertiary outlets to be able to increase their capital; to be able to cover more areas for larger sales. Hire more merchandisers to be able to maintain constant supply and delivery of the products in every stores and outlets. Increase the promotions for Ore and increase its distribution by deploying more salesmen in the areas in South Mindanao. Product sampling can also increase the sales growth of the Ore cookies.