San Beda College Alabang

College of Arts and Sciences

Organizational Strategies of Liwayway Marketing Corporation A research Project

Maria Teresa L. Revilala BSA 3A

History In 1946, Liwayway Marketing Corporation started as a small family business by Mr. Chan Lib and his wife, Mrs. See Ying. It is engaged in the repacking of flour and coffee products with Liwayway gawgaw as its flagship product which soon became number one in laundry starch. In 1966, the business was converted into a corporation, as it expanded into the distribution of pomade, candles, candies and sauces. By 1974, company shifted into the salty snack enterprise under Manuel Chan, LMC diversified into the manufacturing of snack foods such as Oishi Prawn Crackers and Kirei Yummy Flakes. In 1993, under the management of Carlos Chan, LMC embarked on its first venture in China, beginning with two companies in Shanghai: Shanghai Liwayway Food Industries Limited and Shanghai Prawn Cracker Foodstuff Company Limited. Since then, the China operations have grown to more than 12 companies located all over the mainland under the head company, Liwayway China Company Limited. Its products in China are marketed under the brand Oishi Shanghaojia and became a major brand in 2001. Today, LHCL factories are also established in strategic areas outside Shanghai such as Harbin, Hubei, Zhengzhou, Suzhou, Xuzhou, Kunming, Jiangxi, and Xinjiang. It also erected manufacturing facilities were also set up in Ho Chi Minh City, Vietnam (1997) and in Yangon, Myanmar (1999), where Oishi is now the leading snack food brand. The introduction of new products and expansion of sales distribution in urban and inner cities continue to pave for accelerated growth for Oishi business. Management Summary of Key Directors/Officers Key Directors/Officers Chairman Emeritus Treasurer and Vice-Chairman Chairman of the Board President and General Manager/Director Corporate Secretary Director Rinby Chan-Lao Sheraleen Chan-Tiu Chan Kiong Ki See Priscilla A. Chan Archie A. Chan Oszen A. Chan

At present, LMC has a total of six (6) officers. Carlos Chan (whose Chinese name is Chan Kiong Ki See) is the Chief Executive Officer (CEO) of LMC and had been its CEO since its existence. He also holds top management positions in other companies like the Chia Tai Group of Thailand and Philippine Soong Ching Ling Foundation in which he is the Chairman and President respectively. Recently, he has been appointed as President Aquinos Special Envoy to China. Chan is being tasked to promote trade between Philippines and China and encourage Chinese businessmen to invest in the Philippines. Culture Its more than just snacks. The people behind Oishi believe in more than just offering tasty treats, they enjoy creating products that become a part of the daily lives of Pinoys. We think Oishi is an everyday thing that gives you a wow moment. We want to surprise people on regular days. Priscilla Chan, Treasurer and Vice Chairman Oishi had recently launched the O Wow! concept which emphasizes that Oishi product has to be special and should have that wow factor. The campaign highlighted the importance and the role of snacks in the everyday lives of the Filipinos. Lifes full of surprises and unexpected moments. Oishi aims to be part of those special moments and encourages the consumers to share their Oishi experience. This idea from the consumers becomes the inspiration for the people behind Oishi to be more creative and innovative. Also, the phrase O Wow! delivers a positive message to the consumers that encourage them to appreciate the everyday surprises that they will encounter in life.

Organizational Structure Organizational Structure

The current CEO of Liwayway Marketing Corporation is Carlos Chan. Under him are the following corporate positions: Vice President for Advertising, Vice President for Corporate Planning, Vice President for Sales, Chief Operating Officer, Vice President for Human Resources, Vice President for Companys Operations and lastly, Vice President for Communications. LMC is using a hierarchical organizational structure. The advantages of this are that the authority and responsibility are clearly defined. It also maximizes the use of specialist managers. On the other hand, this type of model may slow down the responses of the management over their customer needs. Human Resources LMC provides equal employment and advancement opportunities to everyone. Employment decisions are based on merit, qualifications and abilities. Currently, LMC has a total of 2,544 employees, 1,269 of which are the rank and file employees and the remaining

1,279 are the manpower complement. (Liwayway Marketing Corporations General Information Sheet) Company Vision: We aim to be the leading food company in the markets we serve by cultivating the following ideals:

Provide our consumers with the widest range of quality food products at best value; Live by and uphold the creed of business integrity in all our dealings; Develop and nurture long-term relationships with our suppliers, distributors, and consumers; and

Maintain an excellent work force by being involved in the development of our employees' skills, knowledge, and attitude.

Company Mission: At Oishi, we abide by the principles of a Good Chef:

Clean equipment and good personal hygiene Choice ingredients and appealing presentation Good qualitya Good Chef is not wasteful Cleanliness and safety in the working environment Our goal is to make everyone a Good Chef staff, machine operators, quality assurance

staff, supervisors, and managers. A Good Chef prepares food that Smells Good, Looks Good, and Tastes Good! Organizational Goal Liwayway is determined to build on its success and continue its steady growth to become a more mature and professional organization, while retaining its daring and sense of adventure.

Marketing Strategies Creative Advertisement and Great Endorsers Liwayway Marketing Corporations products are introduced in the market with the help of very creative and entertaining commercials together with lots of astonishing artists. Their way of advertisement is an effective way to attract and to introduce new products to their consumers and to the market. Advertisement is the most common tool used by all manufacturers in the world to compete with each others products. Liwayway Marketing Corporation has lots of well-known celebrity in endorsing their products like; Elmo and Saab Magalona, the children of the late Francis Magalona; Ramon Bautista a great T.V. comedian and Tim Yap, a well-known T.V. host. Marketing Mix Product

Oishi Products

Liwayway Marketing Corporation (LMC) is the manufacturer of Oishi snack products. It currently offers fifty (50) variants of salty snacks, cereals, popcorn, cookies, powdered juices and beverages. Its line of savory snacks includes Martys Craklin, Gourmet Picks, Crispy Patata, Strip Fries, Jabba, Cheese Clubs, Corn Ole, Rinbee, Prawn Crackers, Ridges, Potato Fries, Potato Crisps, Shoestring Potatoes, Bread Pan and Martys Baconette. LMC is also well known in manufacturing sweet snacks such as Choco Plunge, Wafu, Sponge and Pillows. Recently, it also added beverages named Smart C and the Fiber & Fruit. The fast growing and competitive snacking industry in the Philippines made the consumers more concrete in choosing what product to purchase. Consumers became more health conscious. Also, Oishi should strengthen its product differentiation by adding more

identity to the product and enhance its characteristics such as lowering its cost or providing incentives to consumers. Price At present, Oishi products are considered to be at competitive price. This means that the customer will highly consider purchasing Oishi products because it offers a price that is reasonable. However, LMC could still add more value to the product to make it a more attractive choice compared to its competitors. This can be done by giving freebies or additional benefits to loyal customers. Such action can also help the company secure that the loyal customers will not shift to other brands. Place Oishi products are currently made available in sari-sari stores, vending machines, groceries, convenience stores and supermarkets nationwide. At present, the main manufacturing and distribution facility of LMC is located in Imus, Cavite with satellite factories in Cagayan de Oro and Cebu City. It has been expanding internationally evidenced by the 12 companies that they have established in mainland China under its head company, Liwayway (China) Company Limited. Manufacturing facilities were also set up in Ho Chi Minh City, Vietnam (1997) and in Yangon, Myanmar (1999), where Oishi is now the leading snack food brand. Also, Oishi products are being exported to Japan, Korea and Hong Kong. However, LMC can still improve its current distribution network by including direct selling as another option for distribution. Also, the company can organize and put up its own distributing center to those places where there are no available distributors. And lastly, LMC should develop a new distribution system wherein orders can be placed online and the customers can track the progress of their orders. Promotion LMC is using the traditional faculties of promotion and advertising such as the print ads and the broadcast media. They have hired celebrities such as Slater Young, who is known for being the Big Winner of Pinoy Big Brother: Unlimited and Elmo Magalona, a Filipino actor and singer to endorse its products. Furthermore, LMC also accepted different sponsorship programs which made them quite known. LMC is supporting worthy causes and helps in saving the environment. They have been in partnership with Adarna House to make Filipino childrens books and also is involved in promoting tourism in the Philippines in coordination with the Department of Tourism. Another commendable effort of advertising made by LMC is the design and structure of Oishis website. It is highly informative and user-friendly. The site is updated

and it is designed in accordance with the current season celebrated in the Philippines (such as Christmas season). There are also available accounts to like and follow on Facebook and Twitter respectively. But then, it would be best for LMC to put significant investment in advertising so that revenue-generation can increase. All forms of media must be utilized from the traditional to the high-tech ones. This strategy will help increase the sales by attracting different kinds of customers.

Oishis Advertising Customer Oishi products, being high quality and affordable, are being patronized by low, middle and high level income consumers. Through the years, LMC has established an excellent company brand and image. This results in producing loyal customers that continuously support Oishi products despite the entrance of competitors in the market. Competition The researchers have identified two major competitors namely Universal Robina Corporation (URC) and Regent Foods Corporation (RFC). URC is among the Philippines' pioneers in the food manufacturing business having been operating in the country for over 40 years. URC is engaged in manufacturing, marketing and the distribution of a wide range of consumer food products such as snacks, candies, biscuits and crackers, instant coffee, instant noodles, tomato sauces, pasta, and ice cream, among others. URC is the manufacturer of Jack n Jill, one of the leading brand of snacks in the country. Such product line includes Piatos, Nova, VCut, Chicharon ni Mang Juan and other snacks popular in the market today.

Regent Foods Corporation is among the countrys top snack food manufacturers and is consistently working towards excellence in its industry. Today, Regent sits on a 10,000-squaremeter lot with full modern machineries and equipments. The company only uses quality ingredients and houses the finest and best employees. Authorized distributorship is nationwide and in the west coast (Los Angeles, California) and Middle east. Oishi and Friends

Oishis Books Liwayway Marketing Corporation or more commonly known as Oishi partnered with Adarna House, the first and largest publisher of Filipino childrens books, to publish the reference books for Filipino kids, 100 Questions Kids Ask. The book mixes fun with fact, giving kids the answers to 100 questions in the fields of science, history, and culture, art, and sports, gathered through a survey of over 400 Filipino kids. It also won the National Bookstore Award 2006. Volume 2 was published in 2011 and won again the award of National Bookstore award. Oishi Smart Kids Series

Oishis Books Oishi presents the Peso-Smart Kids Seriesa series of books on financial education for kids. It takes inspiration from the lessons taught by the diligent and wise ant. It teaches children at their very young age to understand the importance of money and to encourage them to save

now. Children must be trained now how to handle their own money and not to waste it for useless or material things and to make them realize that there are more things important having money and material goods. Oishi Habi Bags

Figure 4.4 Oishis Habi Bags Liwayway Marketing Corporation also support Habi Bagscontainers, bags and accessories made from scrap packaging material. The multiple folds of the woven strips make Habi Bags strong and durable. Habi Bags provide livelihood to the people of Baseco, and is a joint project of Kabalikat sa Kaunlaran ng Baseco Inc., Urban Poor Associates, and Maraming Bayani Foundation. Habi Bags are also considered as eco friendly bags because they are made out of scrap resources or recyclable things that minimize waste and maximize its uses. Oishi Bulletin Board

Oishis Board

Liwayway Marketing Corporation has its own bulletin board or freedom wall on its website whereby all the posts, comments and tags by different people who were loyal customers of LMC were posed. It is actually one of the best features of their website where every user will be happy reading other peoples comments. There are well known personality, T.V. actors and others who were posting their thanks and joyful experience with Oishi. Oishi Arcade

Oishis Arcade Source: Oishis Website Is a game in the Oishis site which is inspired from the game Auto Jam, where the notes are replaced by the cracklings and the sound is really good and enjoyable to play, it is also difficult to play and enter the next round, it entails concentration, speed and accuracy. This strategy attracts people to visit their site often, especially the kids.

Operations Strategies Process

Blending Concept Map

Generalized Deep Fat Frying Process Capacity LMC, currently, has 27 factories in 8 countries and four of their manufacturing plants are located in the Philippines. LMCs main manufacturing plant in the Philippines is their manufacturing plant in Imus, Cavite with its 40 square hectares area its been the main producer of Oishi products. LMC had their recent expansions on Cagayan de Oro and Cebu in 2002 and 2003.In 2011, Liwayway established their fourth plant in Gerona, Tarlac. Quality LMC ensures the safety and hygiene of its products by complying with the standards of ISO (International Organization for Standardization) and HACCP (Hazards Analysis and Critical Control Point). The majority of their factories are ISO certified, or are undergoing the process of certification. Continuous improvement is always their goal. LMC uses the model of a process-

based quality management system to assure quality of their products. The principle of a Good Chef is expressed in each process. A Good Chef ensures clean equipment and good personal hygiene, choice ingredients and appealing presentation, good quality, cleanliness and safety in the working environment and prepares food that smells good, looks good, and tastes good which they incorporate with their employees and factory workers.