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AMIGO SEGURADO Spaghetti Marketing Plan

I. Executive Summary

La Filipina Uy Gongco Corporation launched its Amigo Segurado Spaghetti and

Macaroni in the last quarter of 2012. Amigo Segurado premium pasta is health friendly pasta

made from the choicest durum wheat, guaranteeing the consistent pasta firmness and nutritious

goodness that only an all-natural product can give. It is the pasta for today’s discerning consumer

who wants high quality and healthy food products.

This report forms the marketing plan for Amigo Segurado Spaghetti in the Philippine

consumer market. The plan contains the group’s views on the overall product concept and

proposition, the product’s target market, positioning, marketing strategies for product, price,

place and promotion and short and long-term projections for Amigo Segurado Spaghetti.

La Filipina Uy Gongco Corporation is investing P1 Billion in modern plant and

equipment facilities for mass production of their new pasta product line and it is planning for

expanding its distribution network. This marketing plan propeses to expand its operations in

Panay area which includes the provinces of Iloilo, Antique, Aklan and Capiz.

The place strategy will focus on retail stores around Panay because retail stores are the

primary sources of Filipino households’ in-home consumer packaged goods. Intensive dealer-

distributor network is desired focusing on retailers as key channels for end consumers. As for the

promotion strategy, the company will invest in print, broadcast, and outdoor advertising. The

promotions will be started in the third quarter of 2013 until the second quarter of 2014.

In implementing this proposal the company expects to generate the following net income

for the year; P15,097.18 for 2014 and 2015; P662,556.23 for 2016; P759,007.21 for 2017 and

P1,463,499.71 for 2018.

II. The Challenge

About Amigo Segurado

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For the longest time, the market in the Philippines was created to by brands that bespoke

of good quality but leaves more for wanting. Amigo Segurado, on the other hand, was coming in

as a player promising to give more for typical pasta consumption and become the ultimate pasta

perfection locally.

Amigo believes in the power of the cooking woman and mother. Cooking is more than

just transforming raw ingredients into a dish. It is the creation of flavor into food, which sparks

delight into everyday meals. With the power of cooking in their hands, women create

relationships and strengthen bonds.

Brand Values

The challenge is to make our products the healthy choice for consumers without

compromising taste, convenience and affordability.

Amigo Segurado believes that good food matters. It adds untold pleasure to our lives.

And everyday meals can be just as magical as special occasions by adapting it to Filipino

cuisines.

Amigo Segurado further believes that it can be:

“A food solution that elevates you out of everyday life and provides you the exciting

ability to create an incredibly tasty meal without any hassles and thus ensure your family’s

good health while remaining within your budget.”

III. Situation Analysis

Company Analysis

In 1901, Mr. Uy Yan Gong (Julian Uy Gongco) opened a bakery and grocery store. The

business thrived thru his hardwork, diligence, and integrity. La Filipina Uy Gongco grew to

become a reputable importer and distributor of general merchandises from the U.S.A., China,

Thailand, Hawaii and Europe. It was one of the biggest trading houses in Panay and Negros

Islands.

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The Second World War destroyed almost all material wealth he accumulated. Only his

good reputation remained intact. He was incarcerated by the Japanese imperial army and died

shortly after his release from detention.

His eldest son, Mr. Uy Chiong (Jose Uy Gongco) reopened the store after the liberation

in 1946 under the name La Filipina Uy Gongco de Uy Chiong. Strong supports were provided by

the old suppliers of La Filipina Uy Gongco. In 1949, La Filipina Uy Gongco de Uy Chiong

became a partnership adopting the name La Filipina Uy Gongco. Mr. Tan Chin Eng, a cousin

and a new partner, took the helm of the business.

The company became a corporation in 1971 under the name La Filipina Uy Gongco

Corporation. Mr. Alfonso A. Uy (Alfonso Uy Gongco), who joined the company in 1954 at the

age of 15, took over the leadership of the company in the late 1960s up to the present.

From a small bake shop and grocery store, La Filipina has grown into a company

involved in trading of feeds ingredients, fertilizers, sugar, vegetable oils, grains, wheat flour, and

owner-operators of sugar mill, flour mills, animal feeds mills, livestock farms, cargo ships,

hotels, housing projects, shopping mall, and bank.

The company’s success is attributed to its policy of high integrity, reliability as a provider

of quality products and services to customers, equal opportunity employer, responsible corporate

citizenship, and trust worthy relationship with stockholders. The company takes pride in its

people. The strong team composed of a group of able executives and staff who assist the

president in the planning and operation of the group of companies.

The goals of La Filipina Uy Gongco Corporation are the following:

To expand production facility while maintaining the quality of its products

To establish strong sales in the country’s major supermarket chains

La Filipina Uy Gongco Corporation focuses on the following:

Value. We offer greater value to the consumer with nutritous products that have exquisite

flavor.

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Integrity. Our commitment to the highest standard is the foundation of our customers

trust.

About Pasta

A serving of cooked spaghetti (1/2 cup) contains mere 99 calories, less than half a gram

of fat, and less than 5 milligrams of sodium. Pasta is high in complex carbohydrates, which helps

give us energy.

Pasta comes in many different shapes and sizes. There are simple string-shaped pasta like

spaghetti and vermicelli, ribbon-shaped ones like fettuccine and linguine, short tubes like elbow

macaroni and penne, decorative fancy shapes like farfalle and rotelle, large sheets like lasagna,

and hollow pasta stuffed with filling, like ravioli, manicotti, and tortellini.

It has been part of the Filipino culture to associate pasta with occasions like birthdays,

fiestas, Christmas, etc. Today’s consumers have redefined this tradition. Everyday could be a

very special day without any occasion, thus everyone can eat pasta anytime they want. No matter

what your background or cooking skills may be, everyone should be able to create an incredible

meal without having to spend hour in the kitchen.

Its association with quality, taste, convenience and innovation and the increasing health

consciousness in consumers are the major strengths of the company while its major weaknesses

are its limited distribution, customers’ lack of brand awareness and the highly competitive

established brand competitors.

Customer Analysis

The Philippines’ population has been growing by approximately 2 percent annually,

currently reaching nearly 100 million. This has had a compounding effect on the demand for

food and beverage products.

Consumers in the Philippines have become increasingly price-sensitive due to the

economic recession. Consumers are expected to continue searching for economy brands,

allowing for private label brands to increase their market presence.

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The Amigo Segurado Spaghetti’s primary target market is the mothers comprising the

housewives, working or professionals who cook regularly or cater food preparations for family

occasions. Potential market also includes the urban professional segment, which has little time to

prepare dinner and will be attracted to quality and freshness of The Amigo Segurado products.

The pasta products are ready to eat in half the time of dry pasta (one to three minutes) and are

fresher than the competition. This gives the Amigo Segurado products a decidedly better taste

and consistency.

Spaghetti is a popular and favorite dish in Philippines. In most of the occasions like

parties and gatherings, spaghetti will be the one of the main stays; even McDonald’s and other

popular fast food chains have spaghetti on their menu. Since, Filipinos are also very fond of

pasta and pizza- the reason why these are always available whether in fast foods or in casual

dining restaurants. What’s not to love about Filipino Sweet Style Spaghetti, a must for a Pinoy

children’s birthday party along with fried chicken and hotdogs on bamboo skewers with a

marshmallow on each end.

Mothers – housewives, working or professionals who cook or cater parties for family

occasions are the primary target market for dried pasta in most of the studies conducted,

dominantly Class C and D but also includes Class B aging 20 to 55 years old.

Purchasing dried pasta is highly seasonal. Higher sales revenue can be achieved during

the 1st quarter of the year for fiesta and graduation celebration purposes. December holidays like

Christmas and New Year is also a good time to generate income. Celebrations like birthdays,

baptism, anniversaries and other special occasions may include spaghetti on their menu.

The followings are the needs, wants and demands of spaghetti to the mothers:

• Mothers need to satisfy hunger, express love, be recognized and prepare the best food for

their family and loved ones.

• Mothers want to buy affordable products to maximize the value for money and at the

same time are concerned about product quality.

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Competitor Analysis

Direct competitors are other pasta brands like Knorr’s Royal Spaghetti, Ideal Gourmet,

Del Monte’s Spaghetti Italiana, Ram’s Premium Spaghetti and Fiesta Spaghetti. Indirect

competitors include pancit, palabok, take out & delivery noodle dishes, restaurants and fast food

chains like Jollibee, serving spaghetti and other noodle dishes.

Pasta in the Philippines is usually flavored with just spaghetti sauce and meatballs but

unlike other brands of pasta, Amigo Segurado can go perfectly well with the Filipino’s everyday

viand like sardines, adobo, afritada, menudo and other Filipino “ulam”.

When it comes to affordability, White King Fiesta and Ram premium compete with

Amigo Segurado. For a 1kg package, the prices of Knorr’s Royal Spaghetti, Ideal Gourmet, Del

Monte’s Spaghetti Italiana, Ram’s Premium Spaghetti and Fiesta Spaghetti are P105.55, P89.00,

P111.75, P65.10 and P69.00 respectively. Amigo Segurado’s price for a 1 kg package is only

P56.80 which is way cheaper compared to other brands.

Amigo Segurado is just available recently unlike other brands like Knorr’s Royal pasta

that has been established decades ago. Since it is newly launched, it is still not distributed

nationwide. It is only available in some selected supermarkets in Metro Manila and Cebu. Ram

Premium is the only one available in all retail outlets.

In spaghetti pasta, Fiesta is the year 2012’s market leader with 29.4% followed by Knorr

Royal with 21.4% and Ideal Gourmet with 19.6%. Amigo Segurado is trying to steal leadership

of the category from these well-known pasta brands through a combination of aggressive

advertising, very competitive pricing strategy and product differentiation. Endorsements by local

celebrities like actors Richard Yap and Daniel Padilla helped to strengthen consumer awareness

of Amigo Segurado.

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29.40%

21.40%

19.60%

29.90%

Market Share

Fiesta Spaghetti

Knorr Royal

Ideal Gourmet

Other brands (Del Monte, Ram Premium, Sunshine, etc.)

Figure 1. Market Share of Spaghetti Pasta in the Philippines, 2010

Collaborators

Amigo Segurado is being distributed first in different supermarkets in big cities like

Metro Cebu and Metro Manila. Its main distributors are Gaisano Mall and Ayala Mall.

Philippine Foremost Milling Corporation, sister company of Uy Gongco La Filipina

Corp., provides flour for the production of Amigo Segurado. It has been the first milling industry

in the country to be awarded with the Food Safety Management System (ISO22000:2005)

Certification which is the latest and highest internationally recognized standard specifically

designed for food manufacturing industry. PFMC uses the best wheat, selected from the best

wheat fields in the world and it offers only the best and the purest flour that comes from

Climate (PEST Analysis)

Political and Legal Environment

La Filipina Uy Gongco Corp. is a sister corporation of Philippine Foremost Milling

Corporation, as one of the leading flour and feeds manufacturer in the country and now on the

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pasta manufacturing, is governed and is abiding all laws applicable to all its operations, may it in

production, administration and others, enforced by the state and through international

agreements.

Producing its nutritional and high quality Amigo Segurado Spaghetti and Macaroni

entails various processing standards which the corporation is adopting. In fact, it has been the

first milling industry in the country to be awarded with the Food Safety Management System

(ISO22000:2005) Certification which is the latest and highest internationally recognized standard

specifically designed for food manufacturing industry.

As well, one of the rigid regulations that the entity is complying with is the Food, Safety,

and Standards Act which requires all firms to mark and label any packaged foods they are

manufacturing, distributing and selling. Labels cannot contain statements that are false or

misleading in any way concerning the food that is in the package. This might apply to misleading

the customer about the quantity of food that is in the package, the nutritional value of the food

that is in the package, or the therapeutic claims to the place of origin for the food products. The

manufacturers of the product also must ensure that the label itself does not mislead consumers in

its shape or appearance. It further prohibits that no food can contain any containment of naturally

occurring toxic substances, toxins, hormones, or heavy metals that are in excess of the act’s

stipulations.

Concerning about quality control, the establishment allows federal inspectors to schedule

regular visits to ensure that the company is adhering to government laws. Moreover, the Amigo

Segurado Spaghetti is enriched with thiamine, niacin, riboflavin, iron and Vitamin A that are

required by the Food and Drug Administration to be present in pasta products and is governed by

the Ministry of Commerce in food trade, foreign investments, food distribution and domestic and

international market activities.

On the other hand, La Filipina Uy Gongco Corp. commits with the environment by

abiding numerous laws through its recycling culture, biodegradable Master packaging and the

boiler technology that position the corporation at the same level of the environmental impact

standards of most industrialized countries in the world. Locally, it complies with the Clean Act

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Act and Clean Water Act that regulates the proper disposal hazardous substances such as

chemicals, industrial smokes and other trashes. It has been issued also with a Sanitary Business

Permit which certifies that it has passed with the standards set by the Iloilo City Government in

proper housekeeping of the business place.

Economic Environment

Due to certain economic conditions, price becomes the most influential factor in pasta

purchasing decisions for Filipinos. As consumers traded down to cheaper products and price

competition between manufacturers intensified, growth in pasta current value sales in 2011 is

slightly slower than that recorded in 2010 and also below the average for the entire review

period. Growth in retail volume sales meanwhile is up on the previous year and slightly faster

than the 5-year CAGR. This is partly due to greater price competition which attracted more

middle and low income consumers into the category. At the same time, the growing availability

of affordable pasta sauces also encouraged Filipinos to increase their consumption of pasta.

On the competitive landscape, La Filipina Uy Gongco Corp. could able to have

leadership in their pasta brand by a combination of aggressive advertising and a very competitive

pricing strategy. The latter proves particularly influential towards the end of the review period as

economic gloom led Filipinos to trade down to cheaper pasta brands. At the same time,

endorsement by local celebrities like Richard Yap has helped to strengthen consumer awareness

of the Amigo Segurado Spaghetti.

Social and Cultural Environment

The socio-cultural environment is one of the marketing environments where a business

needs a great focus and gather enough and appropriate information for it to excel in the target

market. La Filipina Uy Gongco Corporation Corp. extends its business to the target market by

responding and be sensitive to the demands and needs of the society.

Pastas are portions of a wide and diverse Filipino culture especially during occasions.

Pasta is part of every Filipino family’s birthdays and Christmas. These are the reason why La

Filipina Uy Gongco Corp. is dedicated on their production on pastas and baking products. The

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firm believes that the best taste comes only from the purest flour and it is by offering the market

with only the purest of raw materials selected from the best wheat fields in the world. The

company values its baking products as Filipinos value bread and pasta. At present, it is proper for

parents to know what their children consume and that is the reason why the business responded

by producing flour products enriched with Thiamine, Niacin, Riboflavin, Iron, fortified with

Vitamin A and Bromate free.

More importantly, with the growing demand on instant yet healthy food options, Amigo

Segurado Spaghetti and Macaroni is the pasta for today’s discerning consumer who wants high

quality and healthy food products. Amigo Segurado is health friendly because it is 98% fat free,

is low in sodium, and is cholesterol-free. It is also a “good carb”, providing complex

carbohydrates needed for the body’s energy needs. Amigo Segurado is therefore a healthy energy

source for today’s active consumer.

Technological Environment

La Filipina Uy Gongco Corp. incorporates the best technology in its Amigo Segurado

Spaghetti and Macaroni production. This dedication to quality has resulted to only the most

nutritionally balanced and most cost-effective products money can buy.

The entity is using production lines that are shipped from foreign nations, installed by

company engineers and are capable of producing around 8,000 pounds of pasta every hour. It has

also formulated a custom bulk handling system to feed the production lines with semolina.

Storage silos are constructed to store the milled semolina and feed a 700 feet long, six-inch

diameter pneumatic tube which can deliver nearly 62,000 pounds of semolina ever hour to

production lines.

As well, robotic technologies are supplied to the business to carry out packaging,

warehousing and storage functions and palletisers are installed. These have the advantage of

being faster than the standard robot gantries for warehousing and they also occupy less floor

space. The palletisers feed the pallets to a Lantech stretch wrapper. The wrapped pallets are then

conveyed to the warehousing area. The new technology allows 83 pallets an hour to be

processed.

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Moreover, the company facilities are designed to achieve super grading for plant

sanitation. Part of the sanitary design for the facilities includes rounded roof joists and

pharmaceutical-grade Teflon-coated ceiling tiles to prevent dust accumulation. Pharmaceutical-

grade tiling is also used in all production areas.

Furthermore, the pasteurization process is employed in moving the rolls of dough through

a steamer, which heats the dough to 220°F (104°C) in order to kill any existing bacteria.

SWOT Analysis

By analyzing the internal attributes of the product, we have identified the following

strengths which are its edge from other competing brands on its line as well as the product’s

weak points. On its environment, we have identified the following opportunities that could help

the product succeed the competing market as well as threats that if not properly addressed can

be a hindrance in its success.

STRENGTHS WEAKNESSES

Product Related:

Amigo Segurado as a new brand

option for spaghetti buyers and

consumers in the Philippines

Wider variety of taste offered to the

consumers with new innovations for

pasta recipes

Health- friendly pasta brand (98%

fat free, is low in sodium, and is

cholesterol-free)

Filipino-made product (Amigo

Segurado is made for Filipinos)

Launch at a price almost 50% less

than prevailing brands in the market

Low Brand Salience Levels

(Consumers are not really aware of

the brand’s benefits due to newness

to the market)

Limited Distribution/ Availabilty of

Amigo Segurado (still not available

for Panay market)

Need improvements for additional

product size variants (Available only

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Company Related:

Investment of La Filipina Uy

Gongco Corporation of P 1 billion

on modern plant and equipment

facilities for mass production of their

new pasta product line

Improving and offering new product

lines

Plan for expanding distribution

network; Corporation has its own

shipment facility for flour

distribution that can be incorporated

with pasta distribution

Company’s policy of high integrity

and reliability as a provider of

quality products and services to

customers

on 1kg and 500g size variants)

OPPORTUNITIES THREATS

Improved economy growth for the

period is mostly associated with

consumption and . (Net) disposable

income has increased over the past

few years, thus increasing the

consumers’ purchasing power

(greater amount of Filipino

household purchases is attributed to

food).

Sales in dried processed food sector

Established brands in the market

may produce brand loyalty on the

consumers

Influx of foreign brands in the same

category can give rise to sterner

competition

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rise in value from US $742.1 million

to US $790.6 million, retail volume

from 399.8 million tonnes to 410.8

million tonnes

A drive of high awareness for

healthy, hygienic and conveniently

packaged food is on the rise

Health consciousness on the rise in

consumers.

Openness of consumers for new,

innovative food preparations

Consumer perception and

willingness for local high-quality

food brands.

Consumers’ call for easily-prepared

food solutions

Goverment support for Filipino-

made products

Consumer exposure to foreign

products has also increased and a

high-quality notion of Filipino

consumers for foreign products

Rise of fast food chains and

restaurants that offer pasta dishes in

their menu

IV. Market Segmentation

Segmenting the market and identifying the target market for Amigo Segurado would help

the group in drafting the appropriate marketing mix strategies needed for Amigo Segurado’s

interaction in its competitive market.

Amigo Segurado for the past few months since its launch have test market Metro Manila

and Cebu. Our paper focuses and limits its target market geographically to the Panay Island

including the provinces of Iloilo, Antique, Aklan and Capiz.

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Since certain factors and variables bear high correlation with the taste preference and

eating habits of consumers, these factors will be use on further segmenting the Panay market.

Preparing pasta and spaghetti has been a part of every Filipino family’s tradition

especially as part of celebrating special occations.

Identifying and Describing the Target Market

After the group’s analysis on the market, target markets were identified that best

represents the ideal consumers for the product.

Figure 2. Household population, Number of households and Average household size for

Western Visayas

The primary target market is composed of the mothers comprising the housewives,

working or professionals who cook regularly or cater food preparations for family

occasions.

BUYER CONSUMER

Mothers Children

Age 25 - above 5 – 16

Gender Female Male/Female

Family/Household Size 4+ ---

Lifecycle Stage Married with children Kids/Early Teens

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Average Household IncomeP135, 000 (Dominantly Class C

& D but also includes Class B)N/A

Education --- Primary/Secondary School

Occupation Housewife/Working Woman Students

Table 1. Summary of description for the primary target market

Based on the monthly update for February 2013 of the National Statistics Office for

Region VI, the average household size is 4.6 and a there was a total of 1,526,587 households in

the whole Region.

Other potential target market

Base on the group’s analysis of the market, other than the primary target market there can

be potential target markets than could deliver huge amounts of sale for Amigo Segurado

especially regarding the seasons that could greatly affect the targets market’s buying behavior.

Increase on sales may be expected on the following seasons:

1st Quarter of the Year – Fiesta Season in Panay, Graduation

December Holidays – Christmas & New Year

(Retail stores in Panay may also be a potential B2B target market)

Estimating the Target Market Demand Potential

The target market demand potential would be equal to the number of buyers multiplied

by the uantity of average purchase multiplied by the average price of the product.

TMDP=N ×Q × P

Calculating for variables:

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N is equal to (number of mothers included in a household classified as Class C, D

including B). Class C, D including B households are those slightly above the poverty line.

Assumed that 1,526,587 households in the whole Region would mean 1,526,587 mothers in the

whole region.

Poverty headcount ratio at national poverty line (% of population) for the Philippines as

identified by the World Bank Organization is 26.5% which would mean 73.5% (100% - 26.5%)

is above the poverty line and is included in the target market.

N=1,526,587 × 73.5 %≈ 1 ,122,041

Q is assumed to be 1 for the average purchase for a household comprising of 4 family

members is 1 pack of a 1 kilogram variant.

P is equal for P 56.00 for it is the average price of 1 pack of the 1kg variant.

So,

TMDP=1,122,041 ×1× P 56=P 62 , 834 , 296

Positioning Statement

Amigo Segurado will be positioned in the target market as follows:

“Ang Amigo Segurado ay Masarap Bagayan.”

Amigo Segurado is a food solution for mothers that elevates them out of everyday

life and provides them the exciting ability to create an incredibly tasty meal without any

hassles and thus ensure your family’s good health while remaining within your budget.

V. Selected Marketing Strategy

Product Strategy

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http://data.worldbank.org/indicator/SI.POV.NAHC/countries/PH?display=graph


About Amigo Segurado Pasta

Amigo Segurado is a health friendly pasta made from the choicest durum wheat,

guaranteeing the consistent pasta firmness and nutritious goodness that only an all-natural

product can give. It is ideal for today’s discriminating consumer who wants high quality and

healthy food products.

Amigo Segurado is health-friendly because it is 98% fat free, low in sodium, and is

cholesterol free. It is a healthy energy source for today’s active consumers.

Packaging

As reflected on its packaging, 100g serving of cooked AmigoSegurado pasta contains 360

calories, 1g of fat, 135mg of potassium, 75g of carbohydrates and 13g of protein. Cooking

instructions showing 4 easy steps to prepare it in just 10 minutes can also be seen on its

packaging.

The Buy Pinoy, Save Jobs logo is also printed on its packaging as Amigo Segurado

participates in Buy Pinoy Exporters Fair that was started as a project by the Philippine Exporters

Confederation, Inc. (PHILEXPORT). Its purpose are to raise the level of consumer

consciousness on the global competitiveness of Filipino made products in terms of design,

quality and price, to awaken the latent patriotism and national pride among Filipino consumers

and product developers and suppliers and to

create, protect and secure jobs of locals through

promotion of the products of their efforts .

Amigo Segurado (plastic pack) is

approved by the Philippine Food and Drug

Administration which primary goal is to ensure

the safety, efficacy, purity and quality of products being made available to the public. Through

effective implementation of the national regulatory framework consistent with international best

practices, it will ensure the health of Filipinos as their vanguard.

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Amigo Segurado pasta is available in different packages, 1kg, 500g and 250g. To further

enhance the packaging and for the benefit of the consumers, different recipes as part of Amigo

Segurado’s Masarap Bagayan concept should be on its packaging.

The “Masarap bagayan” Concept

The Philippine palate is adventurous in terms of trying out new flavors. To address the

Filipinos’ adventurous side, Amigo Segurado introduces the concept of “Masarap bagayan”.

Amigo Segurado also wants to redefine traditional mentality of Filipinos about pasta.

We intend to communicate what Amigo Segurado should mean to our profiled ideal buyers (e.g.

housewives/ mothers) and consumers. It is much more than merely typical pasta. It is a passport

to the rich Filipino cuisine, adding new ideas and new twists to old favorites. Amigo Segurado

lives to its commitment that spaghetti and macaroni can go perfectly well with the Filipino’s

everyday “ulam”.

Amigo Segurado’s value statement:

“Masarap Bagayan - great food is exhilarating. It elevates us out of the everyday. No

matter what your background or cooking skills, we believe that everyone should be able to

create an incredible meal without having to spend hours in the kitchen.”

The company understands the need of every Filipino family for a high quality and

affordable food so consumers are assured that every product of Amigo Segurado is clean,

accurate in weight and right quality. The company believes that Basta Amigo, Segurado!

Pricing Strategy

Customers usually have a reference price in their mind for a particular product and

therefore they might compare the price of Amigo Segurado pasta with the price of other brands

like Fiesta Spaghetti and Knorr Royal.

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We aim to have a 15% profit per unit so the total relative costs for producing the Amigo

Segurado Pasta plus other relative costs (e.g. administrative and selling costs) must not be more

than the suggested retail price divided by 115%. So for a 1kg package of Amigo Segurado which

suggested retail price of the company is P56.80, the total cost that should be maximized must not

exceed P49.39 (P56.80 /115%).

Pricing strategy for the launch of Amigo Segurado is based on the objective of satisfying

consumers’ budget. Amigo Segurado is priced cheaper compared with the other brands. Thus,

the effect of lower price can be offset by the increase in sales volume. Furthermore, the

introductory price of Amigo Segurado will be regularly revised according to the changing forces

in the market environment and its performance.

Place Strategy

Amigo Segurado is a product new to the Filipino market competing with existing pasta

(spaghetti and macaroni) brands on the market that have established its distribution channels

allowing its availability to end consumers.

Amigo Segurado’s launch last November 2012 had drive attention to the buying market

for its use of popular stars such as Richard Yap and Daniel Padilla but the problem still resides

on its availability especially to the Panay market. The group thus proposes an extensive and

systematic distribution process and strategy for Amigo Segurado for its availability on the Panay

market.

A Focus on Retail Stores Around Panay

The Consumer Index for Asia for 2012 identified provision stores and retail stores as

primary sources of Filipino households’ in-home FMCG (Fast-moving consumer goods) or

consumer packaged goods where noodles and pasta products pushed packaged groceries’ sales

build up. Supermarkets also grew faster by 8.7% through more trips as well as identifying

Puregold and Robinsons as key retailers the exhibited the fastest growth rates as they expanded

their reach throughout the market.

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Distribution

An intensive dealer-distributor network is desired focusing on retailers as key channels

for end consumers. Since the target market for Amigo Segurado are mothers included in the

Panay area, the focus would be the identified primary retail stores on key provinces of Panay

such as Iloilo, Aklan, Antique and Capiz included separately the Iloilo City.

The distribution process is carried as follows (downstream):

1. La Filipina Uy Gongco Corporation (with a Panay Main Office in Iloilo City)

distributes or with exclusive distributors in Panay for Amigo Segurado sells it to

various wholesalers in target market areas identified. Since these are high volume

sales, per unit margins are relatively low allowing motivation for distributors.

2. The wholesalers then sell to retailers at a reasonable margin but is relatively

higher compared to the margin for distributors and wholesalers in lower volumes

as well.

3. Retailers would then be the key channel for the product be available to end

consumers. Retailers would be identified as listed below.

Along with the above distribution process a Sales Force for Amigo Segurado is structured

to facilitate the entire process. The structure is as follows:

POSITION ROLE

Territory Sales Officers

(as determined by the number of territories per

target area)

Revenue Target Driven

Responsible for a location/territory

within the targeted area (Iloilo

Province, Iloilo City, Aklan, Antique

and Capiz)

Liaison with retailers

Ensuring product placement,

availability and merchandizing at

20


POP/POS (point of purchase/point of

sale)

Liaison between the retailer and

wholesaler/distributor

Area Sales Managers

(probably 5, one for each area identified as

Iloilo Province, Iloilo City, Aklan, Antique and

Capiz )

Responsible for a cluster of territories

Managing various territories

Personnel Management

Conflict Management & Problem

Resolution

Panay-Wide Sales Manager

Responsible for a collection of areas

with its key office on Iloilo City.

Responsible for reporting and

communicating the status of

management and sales to the National

office.

21


Figure 3. Location of the La Filipina Uy Gongco Corporation, Panay Main Office, 21 P. Arroyo

Street, Iloilo City

Identifying Key Locations for Distribution

The focus of the target market is located on key areas of Panay including Iloilo Provine,

Aklan, Antique and Capiz including separately the Iloilo City Area where the Panay Main Office

is located. Key territories for each province areas would include the main municipalities in the

province area and some municipalities based on population distribution and economic growth.

22


Figure 4. Map of Panay showing the interconnections between key province areas

Key territories would include:

AREA TERRITORY

Iloilo City Iloilo City Territory

Iloilo Province Miag-ao (1st Congressional District)

Santa Barbara (2nd Congressional

District)

Janiuay (3rd Congressional District)

Passi City (4th Congressional District)

Barotac Viejo (5th Congressional

District)

Aklan Kalibo

Malay (9.94% of the total population of

Aklan excluding Kalibo)

New Washington (9.13% of the total

23


population of Aklan excluding Kalibo)

Antique San Jose de Buenavista

Sibalom (11.48% of the total

population of Antique excluding San

Jose)

Culasi (8% of the total population of

Antique excluding San Jose)

Capiz Roxas City

Tapaz (8.53% of the total population of

Capiz excluding Roxas City)

Pontivedra (7.72% of the total

population of Capiz excluding Roxas

City)

Recommendations for Logistics

It is recommended that La Filipina Uy Gongco Corporation would maximize the use of

its transportation facilities for assisting distribution and delivery of Amigo Segurado from the

production factory and warehouses in Greater Manila Area to key areas in Panay. The shipment

facility of the corporation for their flour products would be a great edge on the distribution to

Panay if it could be incorporated with Amigo Segurado.

La Filipina Uy Gongco Corporation’s investment of P1 billion on a modern plant and

equipment for Amigo Segurado product line across the milling facilities of Philippine Foremost

Milling Corporation is an initiative of the corporation for the improvement and mass production

of their new product line.

Promotion Strategy

24


Communication Campaign

The objectives of the communication campaign will be as follows:

Create a strong brand association by means of an emotional theme in communication

highlighting the important role the brand plays in terms of care and health of the family.

Own a unique position in consumers’ mind through elaborating the functionality of the

product and try establishing the position as in the positioning statement.

Use best practices and techniques for developing greater brand awareness, interest, and

trial generation.

Maintain consistency in visual presentation to establish strong brand recognition.

Advertising Strategy

Print Advertising

In introducing Amigo Segurado Spaghetti in Panay, the company will employ print

advertising to inform and persuade potential consumers. It will invest in printed ads in

newspapers, flyers, posters and the like.

Broadcast Advertising

The existing TV commercials featuring Richard Yap, also known as Papa Chen and

Daniel Padilla that thematically portray the positioning statement of the company in a creative

and engaging manner will be used in broadcast advertising that will be employed in Panay.

Subsequently, shorter adaptations of the TV commercial will also be developed. The TV

commercial will also be adapted into a radio commercial. The Amigo Segurado tagline will be

retained as is.

Outdoor Advertising

The company recognizes the effectivity and relevance of outdoor advertising. It also has

the potential to reach massive group of customers through a single advertisement.

25


The company will team up with a bus company to employ bus advertising to firmly

establish awareness and generate quick recall to the potential customers.

Traditional outdoor advertising like posters and billboards which are highly visible to

vehicular traffic would help achieve advertising objectives and increase brand awareness by

placing multiple units in strategic locations.

Activation Strategy

Outdoor Activation

School Activation

Major educational institutions throughout Panay will be activated. The activation intends

to infuse product awareness among the students and the faculty and staff of the colleges and

universities as generating trials. Product awareness will be achieved thru branded kiosks and

stalls placed inside the school cafeteria or canteen. Kiosk attendants will be responsible to

educate potential customers as well as generating interest and desire while inducing trial.

A comprehensive list of educational institutions where the activation will be conducted is

as follows:

PROVINCE COLLEGE/ UNIVERSITY

Aklan Aklan State University, Kalibo

Panay Technological College, Kalibo

Antique University of Antique, Sibalom

St. Anthony's Colleg, San Jose

Capiz Colegio dela Purisima Concepcion, Roxas City

Capiz State University, Roxas City

Iloilo Central Philippine University, Iloilo City

John B. Lacson Foundation Maritime University, Molo, Iloilo City

University of San Augustin, Iloilo City

University of the Philippines-Visayas, Molo, Iloilo City

26

http://www.finduniversity.ph/universities/colegio-dela-purisima-concepcion/

http://www.finduniversity.ph/universities/st-anthony-s-college-san-jose-antique/

http://www.finduniversity.ph/universities/panay-technological-college/


West Visayas State Universities, La Paz, Iloilo City

Mall Activation

The activation of educational institutions will be replicated at various shopping malls

across the city. Along with awareness and trial objectives, interest in the product’s offering will

be enhanced through various games, prizes and freebies. In Gaisano Malls throughout Panay.

Point of Purchase Activation

Point of Purchases of retail stores and supermarkets will also be activated using. A

particular segment of the chosen public market or supermarket will be dedicated as “Amigo ng

Bayan” which would have the following:

A branded kiosk to give it a creatively distinctive look from its surroundings

A promotion agent who is an educated and pleasing male or female promoter that will

persuade potential consumers to that particular area. The promotion agent will provide

information about the product, induce tasting and persuade trial purchase through special

price offering.

Direction Stickers at public markets or supermarkets directing to “Amigo ng Bayan”

area for attractive offerings.

Attractive Point of Purchase (POP) to be placed at strategic locations in the chosen

public market or supermarket

Canteen and Cafeteria Branding

Cafeterias or canteens of selected universities, colleges and pre-schools in Panay will be

activated via branding using the communication campaign’s visual adaptations.

Furthermore, since Amigo Segurado Spaghetti will be served at these venues at

subsidized prices, it is likely to generate greater trial and repeat purchase.

Branded Mobile Vans

27


During the test market stage, branded Vans will be deployed in targeted areas near

offices, parks and other public places during peak hours to serve Amigo Segurado Spaghetti at

introductory prices.

Sales Promotions

Consumer Promotion

Post launch, a press and radio driven consumer promotion will be designed to invite

consumers to share their own innovations and customizations to Amigo Segurado Spaghetti

Recipes.

Consumers will be asked to share their recipe for a variation of Amigo Segurado

Spaghetti. The recipe will be sent along with 2 empty packages of Amigo Segurado Spaghetti

and customer’s contact information.

The lucky winners would be given cash prizes along with recognition in the form of the

recipe being printed on the packaging along with the customer’s photo (if they so desire).

Public Relations

To help the Department of Health (DOH) and Department of Education (DepEd) in

informing and educating the people about the importance of having good food as part of healthy

living, La Filipina Uy Gongco Corporation will sponsor a food assistance program in selected

areas in Panay. The company will identify schools where to conduct the program.

The food assistance program will be implemented for one month in the selected schools

within Panay. There will be five beneficiaries for the program that would be selected with the aid

of the Department of Education in Region VI.

The launch year marketing budget is as follows:

AMIGO SEGURADO Spaghetti

Launch Budget - Marketing Communications

28


Budget Ceiling Php 15,000,000

Advertising

Print Advertising

Newspapers (see Note 1 ) Php 49,392

Flyers Php 10,000

Subtotal Php 59,392

Broadcast Advertising

Television (see Note 2) Php 10,380,000

Radio (see Note 3) Php 60,000

Subtotal Php 10,440,000

Outdoor Advertising

Billboard (see Note 4) Php 1,440,000

Bus Advertising Php 50,000


Out-of-Home Activation

University/College Activation

Direct Materials (see Note 5) Php 220,000

Direct Labor (see Note 6) Php 22,000

Installation Php 33,000

Subtotal Php 275,000

Mall Activation

Direct Materials (see Note 7) Php 80,000

Direct labor (see Note 8) Php 8,000

Cost of putting up a stall Php 20,000

Subtotal Php 108,000

Point of Purchase Activation

Branded Kiosk Php 10,000

Agent's Salary (see Note 9) Php 10,000

Direction Stickers Php 5,000

Subtotal Php 25,000

Sales Promotion

Consumer Promotion

29


Promotion Expenses (see Note 10) Php 100,000

Public Relations

Feeding Program (see Note

11) Php 75,000

Over-all Total Php 12,572,392

Notes are provided for in the Appendix.

VI. Short and Long-Term Projection

In this analysis, we will look for the different costs involved in the production of Amigo

Segurado Spaghetti and then comparing it with the total sales to find out the minimum efficiency

at which the plant should operate in order to have a neither loss nor profit relationship. This is

done by finding the break-even point of operation. If the plant operates at the efficiency higher

than that indicated by the break-even point, the plant is operating at a profit and vice versa.

A. Break-even Analysis

The cost involved in the production can be divided into two categories, fixed cost and

variable cost.

30


Fixed Costs

The total fixed cost per year amounts to Php 2,555,646.17 calculated as follows:

FIXED COSTS FIXED COSTS (IN PHP)

Fixed Costs (Except Utilities) 2,500,000.00

Utilities 55,646.17

Total Fixed Costs 2,555,646.17

Fixed Costs (Except Utilities)

According to FeedLink Philippines and quoted by Manila Bulletin Publishing this 2013,

La Filipina Uy Gongco Corporation is investing Php 1 billion for pasta production, of which Php

250 million (US$ 6.12 million) to set up a pasta production facility. The annual fixed costs

(except utilities) is Php 2.5 million by depreciating the total depreciable investments for 100

years without residual value. The fixed costs will include the following costs except for utilities:

a) Land and Building

This includes the cost of land and 200 square meter building which will be comprised of

the main production area, packing room and storage area. The main production area will

occupy around 50 square meters whereas the packing room and storage area will take up

balance area.

b) Plant and Machinery

Marketing is the key success determinant and the production capacity has to be finalized

accordingly. Keeping in mind the financial viability, the rated production capacity is

assumed to be 140 tonnes per day with 300 working days and 2 shifts per day.

This will necessitate the installation of the following machines:

one extrusion machine

one pre-conditioner

31


one mixer (50 kilogram capacity)

one pouch packing and sealing machine

one weighing scale

c) Miscellaneous Assets

Other assets like furniture and fixtures, storage facilities, working tables and utensils will

be incurred also.

Utilities

Based on an Indian Research on pasta industries, power requirement on working days

shall be 20 horsepower (14.9139974 kilowatts) per day whereas per working day water

requirement would be 500-550 liters (0.50-0.55 cubic meters). Power requirement per non-

working day will be 30% of that of the power requirement per working day or 4.4741992

kilowatts. Annual expenditure at full capacity utilization will be Php 55,646.17 as computed

below based on March rates of Panay Electric Company (PECO) and Metro Iloilo Water District

(MIWD).

UtilitiesRequirement Per

DayDays

Rate Per Unit in

Php (2013)

Total Cost (in

Php)

Water

(Working Days)

0.55 cubic meters 300 16.5 2,722.50

Electricity

(Working Days)

14.9139974

kilowatts300 11.1067 49,693.59

Electricity (Non-

Working Days)

4.4741992

kilowatts65 11.1067 3,230.08

Total 55,646.17

Variable Costs

32


The variable cost per ton to be incurred by the corporation is as follows:

Variable Costs Variable Costs Per Ton (in Php)

Manpower Requirements 5,935.71

Raw and Packing Materials 48,750.00

Selling Expenses 19,260.00

Total Variable Costs Per Ton 73,945.71

Manpower Requirements

Based on an Indian Research on pasta industries, the following workers (direct and

indirect) are necessary for the production pasta.

two machine operators

two skilled workers for packing

two semi-skilled workers

two helpers

two salesmen

Using the Daily Minimum Wage Rates for Western Visayas for

non-agricultural/industrial/commercial sectors employing more than ten workers (effective May

31, 2012), each worker will earn Php 277.00 per day. The total salaries payable to the workers

yearly at full regular hours will be Php 831,000.00 while the per ton salaries based on the 140-

tonnes production capacity of the business is Php 5,935.71.

Workers Number

Rate Per Day

(in Php)

Working Days

Total Salaries

(in Php)

Machine

Operator2 277.00 300 166,200.00

Skilled Worker

for Packing2 277.00 300 166,200.00

Two Semi- 2 277.00 300 166,200.00

33


skilled Worker

Helper 2 277.00 300 166,200.00

Salesman 2 277.00 300 166,200.00

Total 831,000.00

Raw and Packing Materials

Amigo Segurado Spaghetti is made with the help of many ingredients with durum wheat

as the major input. Other materials required are corn and rice flour, protein isolates, salt, spices,

edible oil, and preservatives. All of them are easily available and packing materials are equally

important. Pouches shall have to be printed and outer packing will be corrugated boxes.

The average price of raw materials per ton is 50,000 Rupees (Php 37,500) while it is

15,000 Rupees (Php 11,250) per ton for packing materials according to the Hindu Business Line

of 2010. The total raw and packing costs per ton is 65,000 Rupees (Php 48,750).

Selling Expenses

Marketing will be a key element. Expenses shall have to be incurred on transportation,

publicity in local media like newspapers, hoardings and TV scroll, selling commission and free

sampling. A provision of 20% of sales value is made every year to take care of these expenses

since the product is new thus more emphasis is given on this section. This expense can be

reduced once the product is well established in market.

Establishing the selling price per kilogram of Amigo Segurado Spaghetti at the average

market price of Php 96.30, the selling expenses will be Php 19,260 per ton computed as the 20%

of Php 96.30 per kilogram multiplied by 1,000 kilograms per ton.

Final Total Cost Analysis

Costs Total (in Php)

Fixed 2,555,646.17

Variable 73,945.71 per ton

34


Analytical Break-Even Analysis

Let the total production per year be x tonnes to arrive at the break-even point (in tonnes).

96,300x – 2,555,646.17 – 73,945.71x = 0

22,354.29x = 2,555,646.17

x = 114.32 tonnes

Conclusion: The plant must operate at the minimum of 114.32 tonnes yearly in order to reach

break-even analysis point.

B. Sales Forecast

For 2014 and 2015, the firm will be operating at 115 tonnes production which is a bit

higher than the break-even analysis point since the product is new in the market.

Sales (115 x Php 96,300) Php 11,074,500.00

Variable costs (115 x Php 73,945.71) (8,503,756.65)

Fixed costs (2,555,646.17)

Net income Php 15,097.18

For 2016, the firm will be operating at 3% higher than the production in the last two years

or at 118.45 tonnes since it has established its name in the market and the variable selling

expenses will be reduced to 15% of the sales price from 20%.

Variable Costs Cost Per Ton (in Php)



35


Selling Expenses (Php 96,300 x 15%) 14,445.00

Total Variable Cost Per Ton 69,130.71

Sales (118.45 x Php 96,300) Php 11,406,735.00

Variable costs (118.45 x Php 69,130.71) (8,188,532.60)

Fixed costs (2,555,646.17)


For 2017, the firm will further be operating at 3% higher than the production in 2016 or

at 122 tonnes and the variable selling expenses will remain at 15% of the sales price.






Sales (122 x Php 96,300) Php 11,748,600.00


Fixed costs (2,555,646.17)



at 125.66 tonnes and the variable selling expenses will be reduced to 10% of the sales price from

15% the preceding year.



36



Selling Expenses (Php 96,300 x

10%)

9,630.00


Sales (125.66 x Php 96,300) Php 12,101,058.00


Fixed costs (2,555,646.17)

Net income Php 1,463,499.71

VII. Conclusion

This report outlines the marketing plan for Amigo Segurado. With existing demand for

Amigo Segurado products presently met by minor competition in the form of independent Pasta,

this report puts forward the viability of launching the Amigo Segurado range of products in

various flavors. Taking into account the absence of any existing brands in the market this report

presents growth potential and profitably in serving this untapped market.

Our paper focuses and limits its target market geographically to the Panay Island

including the provinces of Iloilo, Antique, Aklan and Capiz. The primary target market is the

mothers comprising the housewives, working or professionals who cook regularly or cater food

preparations for family occasions. Base on the group’s analysis of the market, other than the

primary target market there can be potential target markets than could deliver huge amounts of

sale for Amigo Segurado especially regarding the seasons that could greatly affect the targets

market’s buying behaviour. To address the Filipinos’ adventurous side, Amigo Segurado

introduces the concept of “Masarap bagayan”.

37


Under our pricing strategy, for a 1kg package of Amigo Segurado suggested retail price

of the company is P56.80 thus the total cost that should be maximized must not exceed P49.39.

This proposal needs an intensive dealer-distributor network that is desired on focusing on

retailers as key channels for end consumers. Promotional strategy includes advertising strategy,

activation strategy, sales promotion and public relations.

For the advertising strategy, we have the print, broadcast and outdoor advertising. 11

universities and 5 malls are desired to accomplish our school activation and mall activation

strategy. We will introduce also the concept of “Amigo ng Bayan” which includes a branded

kiosk, promotion agents, direction stickers and attractive point of purchase (POP). Also, La

Filipina Uygongco Corporation will sponsor a food assistance program in selected areas in

Panay. An over-all launch budget of Php 12,572,392 is considered necessary to achieve this

promotion strategy.

To reach break-even analysis point, the plant must operate at the minimum of 114.32

tonnes yearly. In implementing this proposal the company expects to generate Php 15,097 in its

first year of operation.

38


Appendix 1

Notes to the Launch Budget

Note 1:

Philippine Daily Inquirer

1/16 Page for 6 weeks (3rd week of Nov – Last week of Dec)

Php 8,232 * 6 = Php 49,392

Note 2:

Twice a day TV advertisement for 60days, one in the morning and one in the afternoon.

Duration: 3rd – last week of March, 3rd –last week of November and whole month of December

30 sec commercial, afternoon spot for 60 days

Php 150,000 * 60 = Php 9,000,000

30 sec commercial, morning spot for 60 days

Php 23,000 * 60 = Php 1,380,000


Note 3:

Love Radio Ad Package (Php 5000/ month)

Banner Ad 160X160

30 second Ad spots – 5 times a day

Php 5,000 * 12 monts Php 60,000

Note 4:

Billboard Rent (Php 30,000/ month) for 12 months for 4 particular areas in Panay

Php 30,000 * 12 months * 4 = Php 1,440,000

39


Note 5: Direct Materials include cost of Spaghetti, cups and spoons, and other raw materials needed to carry out the “Free taste” in 11 selected universities and colleges around Panay (5 in Iloilo City and 2 universities each from Aklan, Antique and Capiz)

Php 20,000 * 11 universities = Php 220,000

Note 6:

Php 1000 * 2 promotion agents * 11 universities = Php 22,000

Note 7:

Php 20,000 * 4 malls = Php 80,000

Note 8:

Php 1000 * 2 promotion agents * 4 malls = Php 8,000

Note 9:

Php 1000 * 10 days = Php 10,000

Note 10:

Php 10,000 * 10 winners = Php 100,000

Note 11:

Php 15000 * 5 preschools = Php 75,000

40


Appendix 2

Short and Long-Term Projections

Break-even Analysis

The cost involved in the production can be divided into two categories, fixed cost and

variable cost.

Fixed Costs

FIXED COSTS FIXED COSTS (IN PHP)

Fixed Costs (Except Utilities) 2,500,000.00

Utilities 55,646.17

Total Fixed Costs 2,555,646.17

Utilities

UtilitiesRequirement

Per DayDays

Rate Per Unit in

Php (2013)

Total Cost (in

Php)

Water

(Working Days)

0.55 cubic

meters300 16.5 2,722.50

Electricity

(Working Days)

14.9139974

kilowatts300 11.1067 49,693.59

Electricity

(Non-Working

Days)

4.4741992

kilowatts65 11.1067 3,230.08

Total 55,646.17

41


Variable Costs

The variable cost per ton to be incurred by the corporation is as follows:

Variable Costs Variable Costs Per Ton (in Php)



Selling Expenses 19,260.00

Total Variable Costs Per Ton 73,945.71

Manpower Requirements

Workers Number

Rate Per Day

(in Php)

Working Days

Total Salaries

(in Php)

Machine

Operator2 277.00 300 166,200.00

Skilled Worker

for Packing2 277.00 300 166,200.00

Two Semi-

skilled Worker2 277.00 300 166,200.00

Helper 2 277.00 300 166,200.00

Salesman 2 277.00 300 166,200.00

Total 831,000.00

Final Total Cost Analysis

Costs Total (in Php)

Fixed 2,555,646.17

Variable 73,945.71 per ton

Analytical Break-Even Analysis

42


Let the total production per year be x tonnes to arrive at the break-even point (in tonnes).

96,300x – 2,555,646.17 – 73,945.71x = 0

22,354.29x = 2,555,646.17

x = 114.32 tonnes

Conclusion: The plant must operate at the minimum of 114.32 tonnes yearly in order to reach

break-even analysis point.

B. Sales Forecast

For 2014 and 2015, the firm will be operating at 115 tonnes production which is a bit

higher than the break-even analysis point since the product is new in the market.

Sales (115 x Php 96,300) Php 11,074,500.00


Fixed costs (2,555,646.17)


For 2016, the firm will be operating at 3% higher than the production in the last two years

or at 118.45 tonnes since it has established its name in the market and the variable selling

expenses will be reduced to 15% of the sales price from 20%.






Sales (118.45 x Php 96,300) Php 11,406,735.00

43



Fixed costs (2,555,646.17)



at 122 tonnes and the variable selling expenses will remain at 15% of the sales price.






Sales (122 x Php 96,300) Php 11,748,600.00


Fixed costs (2,555,646.17)



at 125.66 tonnes and the variable selling expenses will be reduced to 10% of the sales price from

15% the preceding year.




Selling Expenses (Php 96,300 x

10%)

9,630.00


44


Sales (125.66 x Php 96,300) Php 12,101,058.00


Fixed costs (2,555,646.17)

Net income Php 1,463,499.71

45


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IPO Annual Survey on World Pasta Industry, 2012

47

http://www.finduniversity.ph/universities/western-visayas/

http://www.alacrastore.com/storecontent/Datamonitor_Premium_Research_Reports-Pasta_and_Noodles_in_the_Philippines_to_2013-2122-1636

http://www.alacrastore.com/storecontent/Datamonitor_Premium_Research_Reports-Pasta_and_Noodles_in_the_Philippines_to_2013-2122-1636

http://www.researchandmarkets.com/reports/1195223/pasta_and_noodles_in_the_philippines_to_2013

http://www.researchandmarkets.com/reports/1195223/pasta_and_noodles_in_the_philippines_to_2013

http://www.marketresearch.com/Euromonitor-International-v746/Pasta-Philippines-6741428/

http://www.marketresearch.com/Euromonitor-International-v746/Pasta-Philippines-6741428/

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Documents

amigo segurado premium

health friendly pasta

marketing plan propeses

new pasta product line

marketing strategies

consistent pasta firmness

ultimate pasta perfection

typical pasta consumption