Roseller O. QuinJune, 2013

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10 STEP Marketing Plan for D’ Bessfood Organic Rice and Mascobado Sugar

rossellerquin.blogspot.com

DisclaimerThis 10 Step Marketing Plan is part of the mandatory

requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

The D’ Bessfood Organic Products is a partnership of small-scale farmers, cooperatives, and development practitioners who all believe in the natural and organic practices of producing food for life, health, and the environment.

The D’ Bessfood Organic Products are strictly chemical-free. No chemical fertilizers, preservatives, nor pesticides were used in growing and processing the products. Only locally available composted fertilizers and natural microorganisms were used to produce such rice and sugarcane. (No pigs and chicken manure, composted or not, is allowed)

The microorganisms are found in the natural environment and supplemented with local effective microorganisms from the forest. For pest control, we use the botanical growth enhancer/plant protector for healthy plants and for limiting crop damages.

Steps 1 to 5

Summary headline of your PTM and market1. D’ Bessfood Organic Products target Consumers who

are looking for healthy and safe food, young professionals, and with development-related sickness.

2. Safe, healthy and Organic Food.3. Available brands: Pecuaria, F &C, Plan, Full of Grace.4. All brands offer organic rice and mascobado coming

from the improved HYV varieties. 5. Increase in number of retail outlets (AC Neilsen –

2001)– Supermarkets by 27%– Groceries by 35%

6. Organic Rice (2 and 5 kgs), Heirloom Traditional Filipino Rice (1, and 2 kgs), and Whole Mascobado Sugar (1/2 and 1 kg)

7. Price varies from different packages, kilogram, and market outlets.

8. Events, exhibits, and small shops.9. In Supermarkets located in Makati, and nearby

home-base provinces such as Pangasinan, Tarlac, and Nueva Ecija.

10. “A Credible Organic Agriculture Producer in the Philippines”

Steps 6 to 10

Summary headline of your PTM and market

1. Describe the primary target market (PTM)

• Ages 35 to 80: Male and Female, ABC class, Parents.

• Professionals/Club Members/ Middle Aged Parents, Health Conscious/ Advocate of for a Better Environment

• Whole Family Rice needs, All meals, Sweets like beverages, pastries, snacks food, and People on Special diet.

2. My PTM’s NWDNeeds from Maslow’s hierarchy (need for

wholesome, safe and healthy food)Wants determine choice (wants something

different – natural, soft, short, aromatic, eating quality, chunky, high fiber, highly pigmented, color, and safe food)

Demands for them to buy the product (Good quality, Something different, and credible producers)

Describe your PTM needs

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Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

Something different, Advocacy for the

Environment

Food, safe food

Wholesome and healthy food

2. PTM’s needs, wants & demands Needs: Physiological Needs - Food (Rice and Sugar),

Safety Needs – Wholesome, Safe and Healthy Food, Self-development and self-realization – Something different, Advocacy for the Environment)

Wants: Highly pigmented Rice, natural, soft, short grains, eating quality, chunky, high fiber.

Demands: Heirloom Traditional variety rice (short grains and aromatic), Highly pigmented, soft and chunky, and supervised by Ross O. Quin (1 of the top 10 Organic Agriculture Advocate in the Philippines – Organic Matters Magazine, 2005)

3a. Competitors

• Direct Competitors: Pecuaria, F &C, Plan, Full of Grace – are already in the market since the year 2000.

• Indirect Competitors: Harvester, Mrs. Lam, Vita, Imported Brand rice, and Jordan Farm – using conventionally grown crops, processed similar to Organic Products.

• Variables: Packaging, quality, brand, variety, visualization, and benefits.

Low Price

0-20 yrs 21-35 yrs 36-49 yrs 50yrs up

High price

Health Benefits

Indirect Competitors: Specialized Imported Varieties

Indirect Competitors: local varieties

PecuariaFull of Grace

Price vs. Age Matrix

Pecuaria

F&C

F&C

D’ Bessfood

3b. Create 2 Positioning Maps

Example of a benefit positioning vs. brand map for Organic Products

Benefit Positioning vs. Brand Matrix

as of 2011

Functional Benefit Mrs. Lam Harvester VitaImported

RiceJordan Farm F&C

D' Bessfood Pecuaria

Full of Grace

Good Eating QualityVisulaizationAromaHigh PigmentationChunkyGolden Brown ColorHigh fiberHealthy and SafeHeirloom RiceFriendly to Environment

4. Identify the gap between customers and competition

Where is the marketing opportunity? High fiber, high-pigmentation organic rice that gives high health benefits for people that needs high fiber food and rich in antioxidant.

What NWDs are not being addressed? Producing high fiber, chunky, high-pigmentation, and heirloom organic rice.

What can be the unique selling proposition for the new product (totally new or repositioned.) Super Rice for clean stomach and strong immune system (High fiber cleans the colon, High natural pigmentation builds strong immune system.

5a. Estimate the market size using competitor data

1. International Food Policy Research Institute - Trend over past 20 years : Supermarket had major impact on Agri Food Supply Chain – Shift in the distribution power in agri-supply chains

2. Manufacturers vs Global Supermarket Chains – Global Supply Chains/Private standards and systems are affecting the rural developments

3. Farmers and processors are losing access to markets 4. South East Asia 30% growth in supermarkets inlast 5

years 5. Retail Market Indicators = Sales Growth• 2004-05 = 11% 2005-06 = 22% (planet retail)

5b. Estimate the market size using company data

a. Everything leads back to supermarket as the major channels of trade, as processors would also pass on to farmers-suppliers the supermarket requirement on them;

b. Trend all over the worldc. Factors that led to this

1. Rapid urbanization, growth in disposable income, 2. Increasing working women, Increase Credit Card usage3. Increased investments from chain retailers4. Modernization of procurement

d. Supermarket Products are going beyond the processed as the volume of retail trade in flowers – fruits - fresh vegetables increase

– Projected Retail Shares = 59% fruits, 55% vegetable

5c. Estimate the market size using customer data

1. Usage per day or per year

Items Per PersonPer Household Per Month Per Year

Organic Rice ½ kg per day

2 kg per day

60 kgs 720 kgs

Heirloom Traditional Rice

½ kg per day

2 kg per day

60 kgs 720 kgs

Mascobado Sugar

1/8 kg per day

¼ kg per day

3 kgs 90 kgs

5. Decide on market size in pesos, not in number of people

1. Competitor data= PhP 132 Million of CBE products traded per year

2. Company data = PhP 12 Million potential market per year

3. Customer Usage data = – Organic Rice 720kgsXP50X5,000= P180Million– Heirloom Rice – 720kgsXP65X1,500= P70.2Million– Mascobado – 90kgsXP94X5,000= P42.3Milliom

6a. D’ Bessfood Products

Competitors’ Products

6a. Show how product looks vs. competition

Direct Competitors’

Indirect Competitors’

Direct Competitors’

6b. Product Description

6b. Product Description

Golden Brown

6b. Product Description

Product Presentation

7. PriceProducts F&C Pecuaria Full of

GraceD’

BessfoodPrice Difference

Price Strat.

Organic Rice, 2 kgs P102.00 P98.00 P110.00 P106.00 P10-P12 Middle

Organic Rice, 5 kgs P255.00 P245.00 P275.00 P265.00 P10-P20 Middle

Heirloom Rice, 1kg P118.00 - P88.00 P74.00 P14-P40 Middle

Heirloom Rice 2kgs - - P176.00 P145.00 P31 Middle

Mascobado Sugar, ½ kg

P46.00 P46.00 P56.00 P51.00 P5-P15 Middle

Mascobado Sugar, 1 kg

P86.00 P86.00 P110.00 P98.00 P12 Middle

8a. Which of these modes does your product use?

** Pls. rank most used, 1-highest use

1

1

1

0

0

0

0

2

8a. Your products PromotionsDescribe what you propose to do/ product

is currently doing vs. the 8 modes of communications.–Events and Experience–Direct Marketing–Personal Selling–Word of Mouth

8a. Samples of Promo

This can be in multiple slides

8b. Competitor promoShow also how your key competitors communicateTheir commercials– Events and Experiences–Direct Marketing– Personal Selling–Word of Mouth

Their websites - none

And why your communication stands out: “We are not just merely working for a company. We are

the Company itself”.

9. Place

• Where is your product available?– Supermarkets - CSI – Pangasinan (4

Supermarkets), Red Camia Supermarket (3 Supermarkets), Landmark in Makati and Trinoma, OPTA Organic Store.

– key areas only – Pangasinan, Tarlac, Makati, Quezon City, Baguio, Nueva Ecija.

– Method of delivery – Direct to Supermarkets.

10. What is the generic winning strategy?

Which of the 4 strategies are being used? (bold and underline to most dominant strategy)– Low Cost Producer– Supply and Distribution Leverage– Differentiation– Niche

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SUMMARY

Steps 1 to 5

Summary headline of your PTM and market1. D’ Bessfood Organic Products target Consumers who

are looking for healthy and safe food, young professionals, and with development-related sickness.

2. Safe, healthy and Organic Food.3. Available brands: Pecuaria, F &C, Plan, Full of Grace.4. All brands offer organic rice and mascobado coming

from the improved HYV varieties. 5. Increase in number of retail outlets (AC Neilsen –

2001)– Supermarkets by 27%– Groceries by 35% How big is the market (3Cs)

6. Organic Rice (2 and 5 kgs), Heirloom Traditional Filipino Rice (1, 2, and 5 kgs), and Whole Mascobado Sugar (1/2 and 1 kg)

7. Price varies from different packages, kilogram, and market outlets.

8. Events, exhibits, and small shops.9. In Supermarkets located in Makati, and nearby

home-base provinces such as Pangasinan, Tarlac, and Nueva Ecija.

10. “A Credible Organic Agriculture Producer in the Philippines”

Steps 6 to 10

Summary headline of your PTM and market