Compilation of Case Studies

in Marketing Management
Saturdays, 11:00am – 2:30pm

PUMA
Submitted By:
Group 1
Cataluna, Jesse Alfred A.
Atillo, Alona C.
Aguinaldo, Pia Marie P.
Bravo, Myrove N.

Submitted To:
Dr. Paterno Gonzalo

1
Problem: Puma's endorsement efforts are inadequate

Profitability:

Endorsement and sponsored athletes are one of the biggest factors in the profitability in
the Shoes and Sports Apparels Industry. In professional sports, the relationships
between athletes and brands are becoming seamlessly integrated and more
measurable, in many cases moving far beyond the traditional and straightforward
product endorsements. Brands see the power of reach that celebrities have, and the
celebrities oftentimes earn more through sponsorships than they do playing their sport
of choice.
The Problem is, Puma is seeing more success with celebrity endorsers than big name
athletes. Celebrity endorsers includes Jay-Z, Rhiana, Selena Gomez, Kylie Jenner and
Korean K-pop group BTS.
It is important to have celebrity endorsers, however, the best practices in the industry
are the utilization of athletes as their endorser.

2
Choosing the athletes who will be representing the company is very crucial in the
profitability of the company. In 2012, Adidas signed NBA player Derrick Rose to a 13-
year contract worth 185 million dollars. He is the youngest player in the NBA history to
win the season MVP award at the end of 2010-2011 season. However, suffering
multiple injuries after that season, Derrick Rose's appeal in the public has decreased,
thus, reducing the revenues for Adidas that year.
In 2014, football superstar Lionel Messi and NBA point star Damian Lillard signed with
Adidas, thus reviving the company image that was somehow tarnished after signing
Derrick Rose.
2015, Adidas signed the rising star at that time, James Harden to a 200 million dollars,
thus, increasing the revenues of Adidas consistently since 2014 up to present.
It is already established that it is imperative to have strong-athlete endorsers in order to
increase the profitability of the company in the shoes and apparels industries. Puma has
a contract with Usain Bolt, the world's fastest man, but other than Bolt, they have a
relatively weak athlete endorsers as compared to their main competitors.

Source of Competitive Advantage

In the Shoe Industry, having a very influential endorser translates with greater
competitive advantage. Products can be sold at higher price if it also worn by a famous
athlete.
In this industry, most consumers don’t mind paying more if the shoes are represented
by famous athletes. This is one of the reasons why barriers are strong in this industry
for potential new entrants. Oftentimes, manufacturing cost are not important factors in
pricing these products. The more important basis in pricing is determined by who
endorses the shoes
To illustrate the pricing, the following are the prices of the shoes of different brands that
was worn by them endorses

Puma Clyde Court (Worn by Kyle Kuzma)

Price: Php 4,349.00 (fruugo.ph)

3
Adidas Harden Vol 4 (Worn by James Harden)
Price: Php 7,000.00 (adidas.com.ph)

Air Jordan 10 (Michael Jordan)

Price: Php 9,445.00 (nike.com.ph)

Strategic Direction of the Company

PUMA’s inadequate efforts towards endorsement resulted in low sales compared to

previous years. Consumer’s lack of knowledge towards the brand and its products
became an advantage to PUMA’s competitors and a big disadvantage to PUMA. In
order to solve the problem, we came up with three strategic priorities:

 Brand Heat
 Leading Offer for Women
 Re-entry into Basketball

4
Brand Heat

In order to create Brand Heat, PUMA needs to partner with the greatest athletes around
the globe. As of today, Usain Bolt, Lewis Hamilton, Pelé, Maradona, Tommie Smith,
Boris Becker, Linford Christie, Serena Williams, Heike Drechsler and Martina
Navratilova are just a few of their current brand ambassadors.
PUMA needs to strengthen its position as a sports brand through partnerships with
famous athletes that are respected globally.
They can also partner with well-known athletes per country that they market. Elite
Ambassadors like athletes from National Football Teams and Olympic Medalists will
spark the attention of their supporters and the public.
Teaming with more sports federations like Jamaican and Cuban Olympic Federations
will boost their brand credibility.
To connect with young, trend-setting consumers, PUMA should also drive brand heat by
working with icons of culture and fashion like famous artists and models.

Leading Offer for Women

More and more women take up sports worldwide and athletic wear has long made its
way into everyday outfits. “Where the gym meets the runway” continues to be the theme
for PUMA’s initiatives in the women´s segment and should not end with it. Creating a
leading product offer for women should be a priority for PUMA, to capitalize on this
growing segment in the global sportswear market. The market segment of female
consumers has been an above-average performer for sports products, appealing to
women consumers with Influential Women of different ages will raise brand awareness.

Re-entry into Basketball

Returning to basketball, with an approach that resonated well beyond the court, was an
important step towards increasing PUMA’s credibility as a sports brand. Even though
revenues from the beginning of re-entry in basketball performance products are small, it
is expected to increase the sales of Sport style products. Adding young and talented
NBA Players in the team will be one of the best ways in endorsing PUMA’s court-style
sneakers and high-quality basketball and training shoes.

5
Why Implement these Strategies?

Before Possible Effect of Implementation

Lack of brand credibility Boost brand credibility

Ineffective set of brand ambassadors Raise brand awareness
Low Revenue Newly set of Influential brand
Inept endorsement efforts ambassadors
Increased Sales

Problem: Puma’s endorsement is inadequate

Customer Satisfaction

Puma’s new implemented strategies raising awareness of brand and setting new
influential Ambassadors like celebrity endorsers includes Jay-Z, Rhiana, Selena
Gomez, Kylie Jenner and Korean K-pop group BTS will boost the credibility of Puma.
The customer buying behavior of some customer that can make them satisfied is that
they will wear the same shoes that their fan or favorite celebrities wore. Most of the
customers are the young ones or what we so called “Millennials”. This group of target
customers is also patronizing Korean Group that is booming now in the Philippines like
BTS.
The customer satisfaction of Puma will accelerate to almost higher percentage and also
the brand awareness of customers will be reach. The customer satisfaction will become
customer loyalty. If the customer is satisfied it will make a repeat purchase to meet their
wants that can lead to their satisfaction. This customer loyalty and satisfaction will make
some “word of mouth” to their friends, family and colleagues.
Puma’s company objective is to gain competitive advantage, increase customer loyalty
and employees, retaining market share and optimizing investments in modification in
order reduce the cost of for the new set of endorsers.

6
Morale of the Company’s Employee

Puma’s Corporate Culture

Learning and Growth - Puma’s corporate culture prioritizes workers’ learning and
growth. A strategic objective linked to this cultural trait is to continuously improve the
company’s human resources, to support and enhance competitive advantages against
firms like Nike and Adidas. For example, leadership and skills development programs
are integrated in human resource development for innovation required in Puma’s
generic strategy for competitive advantage and intensive strategies for growth. The
sporting goods company has lifelong learning, leadership development, and coaching
programs as implementations of its organizational culture. Puma’s organizational
structure supports this characteristic of the corporate culture. For example, the
company’s organizational design includes a Supervisory Board for employee
representation for legal matters and for human resource development goals linked to
the organizational culture’s aims for enhancing strategic positioning in the sporting
goods industry.

Diversity and Inclusion - Puma SE maintains diversity and inclusion in its

organizational culture. This cultural trait optimizes employee morale based on inclusion
principles and enhances business competitive advantages by matching workforce
diversity with customers’ diversity in the sporting goods market. In this corporate culture
characteristic, Puma believes that high diversity and inclusion motivates human
resources to consider diverse ideas for improving work performance. Also, this
organizational cultural trait adds to brand image in terms of customers’ perception about
the corporation’s efforts to satisfy stakeholders, relative to other sporting goods firms’
activities. Thus, Puma’s corporate culture benefits the business in terms of branding,
stakeholder management, and human resource development.

Wellbeing - Employees’ wellbeing is integrated in Puma’s corporate culture. For

example, the company has formal and informal policies and programs that address the
multiple facets of workers’ lives, including financial and social needs inside and outside
the sporting goods business. The organizational culture’s social aspect supports
Puma’s corporate social responsibility strategies and stakeholder management efforts.
With regard to employees’ wellbeing, the company’s corporate culture promotes
desirable behaviors in the workplace via high morale, high motivation, and a positive
outlook about business performance in the athletic shoes, apparel, and accessories
market. The following are the four thrusts under the Wellbeing characteristic of Puma’s
organizational culture:
 Flex - flexible work options for a satisfactory work-life balance
 Social - Puma employees’ community engagement involving programs to
support environmental protection and health and wellness

7
  Finance - competitive compensation packages and other financial benefits for
employees
Athlete - facilities, equipment, and programs for employees’ physical exercise and
sports activities
Puma’s organizational culture is about developing human resources to reach maximum
performance. The learning and growth cultural characteristic focus on developing
employees’ knowledge, skills, and abilities to satisfy the sporting goods company’s
needs. The diversity and inclusion, and wellbeing characteristics of the corporate culture
reflect Puma’s strategic objectives of reducing employee turnover, while optimizing
performance through morale and job satisfaction. An advantage of this organizational
culture is that it ensures the adequacy of human resource capabilities, which is a critical
success factor when considering the human resource strategies of competitors like Nike
and Adidas.

Recommendation:

A possible improvement to Puma’s corporate culture is to increase emphasis on

innovation. This recommendation relates to the industry trend of increasing integration
of advanced technologies in athletic footwear and equipment. And promote inclusion in
the workplace by:

 Appropriately Connect with Employees

 Interact with Different People
 Create Employee Resource Groups.
 Place Importance on Inclusion
 Hold Better Meetings
 Invest in Diversity Training

8
Compilation of Case Studies
in Marketing Management
Saturdays, 11:00am – 2:30pm

OVALTINE’S BRAND
POSITIONING IN THE
PHILIPPINES

Submitted By:
Group 2
Cortez, Antonette C.
Cunanan, Clarisse Andrea Anne L.
Luna, Melody B.
Orpiasa, Julius
De Mesa, McBeth
De Ocampo, Lainy R.

9
 Submitted To:
Dr. Paterno Gonzalo
OVALTINE'S BRAND POSITIONING IN THE PHILIPPINES: A CASE STUDY

I. INTRODUCTION

Ovaltine is a brand of milk flavoring product made with sugar, malt extract, cocoa
and whey. Ovaltine was developed in Berne, Switzerland by Dr. Albert Wander in 1904,
and its original name is OVOMALTINE (from ovum, Latin for" egg" and malt, originally
its main ingredients).

Its popular took off after the First World War based on a dual appeal as
nourishing food soothing bedtime drink. OVOMALTINE was exported to Britain in 1909,
a misspelling of the name on the trademark registration application led to the name
being shortened to OVALTINE IN English-speaking markets.

The company has founded as the sole marketer of manufacture and marketing of
the product. Ovaltine modified its position to accommodate under target audience and
maintained for energy, but ingredients show filing packed to convince consumer of
value with the use of television, radio, dressed and other outdoor media.

Ovaltine has affected and lost its market leadership to Bournvita. It was focused
on the family, in 1981 the campaign has firmly established, and the use of human
element become more visible to reinforce practical slogans hence the payoff "get into
action the Ovaltine way.”

Ten years later, the brand positioning was widened in scope to dress various
consumer segments. In 1994 brand relaunch and strategy to highlight nutritive value
more impact fully vitality "re-positioning to children between 2-12 years old. The new
millennium experienced repositioning of brand upon relaunch its primary target on
children between 2- 14 years old and secondary target on mother, teachers, as
tomorrow leaders.

Ovaltine present positioning is children as the future leaders and main passing
the memories and friendliness of Ovaltine to many generations.

Ovaltine also position the mother and teacher as the secondary target because
of their direct influence on children and a better time of the day are spent with them and
contributed award to teachers during teacher’s day in Oct. 5, 2002. Cash and other
brand items were given to teachers present at the occasion.

Ovaltine have 5 varieties:

10
 The popular original chocolate malt powder is mixed with hot or cold milk as a
beverage. Ovaltine is also available in the form of chocolate bars, chocolate light,
original light and Ovaltine max.
Mission

To provide quality, distinctive and successful food and beverage brands that
enhance the quality of life and delight our consumers.

II. STATEMENT OF THE PROBLEM

 Lack understanding of human consumer behavior

 Weak distribution channel
 Poor promotion
 Brand Neglect
 Lack of brand awareness

III. OBJECTIVES THE STUDY.

1. Determine what advantage the present positioning has over the other.
2. Determine how the present positioning has enhanced market leadership among other
food drinks.

IV. AREAS OF CONSIDERATION

a) Profitability

Ovaltine product under Associated British Food plc has still a promising earning
ability, and it was been sold all over to 100 countries along with Twinings (Tea),
having the biggest portion of Grocery’s sales as one of ABF’s segment of their
company (not to mention Sugar, Agriculture, Ingredients and Retail business
segments). These are the Total Revenue and Operating Profit of ABF’s
Grocery’s segment from 2015 to 2019:

2019 2018 2017 2016 2015

Grocery's £3,521,000,00 £3,420,000,00 £3,381,000,00 £3,097,000,00 £3,177,000,000
0 0 0 0
Total
Revenue
Grocery's £380,000,000 £335,000,000 £303,000,000 £294,000,000 £285,000,000
Operatin
g Profit

11
b) Strategic direction of the company

Associated British Food (ABF), as the one who produces Ovaltine has this
statement as the company’s purpose, “To provide safe, nutritious, affordable food
and clothing that is great value for money” and having that statement as a guide
in conducting the business, ABF structured the company to be organized so that
they are close to the markets and customers they serve.

Taking by heart the company’s purpose and structuring the company in a

way it will reach all the possible customers, ABF is gearing towards to achieve
Organic Growth through investment in marketing, in the development of existing
products and technologies, and in targeted capital expenditure to improve
efficiency and expand capacity.

The center provides selected services where the scale of its operations
enables a more cost-effective or efficient delivery, where expertise that might not
be available at a business level can be retained by the group, or where the
provision of such services would otherwise distract business executives. Such
services include investor relations, pensions, insurance, legal support, tax and
treasury management, where specialist expertise is brought together in one
place for the benefit of the group as a whole.

c) Source of comparative advantages

It’s time to get nostalgic. I got inspired by Starbucks! Yes, you

heard it right. The coffee company itself. In conjunction with Singapore’s
National (Independence) Day, Starbucks has launched a series of items to
commemorate the occasion. I’m sure there is some murmur of milking the
opportunity for a promotion, but two items stirred a bit of thought, the
Horlicks White Chocolate Cake and the Ovaltine Chocolate Cake.

Milo and Horlicks resonated with me. But what

do Ovaltine, Horlicks, and Milo have in common? They were born in the
West (Switzerland, US, and Australia respectively, if Wikipedia hasn’t
failed me, although today Ovaltine and Horlicks are owned by British
companies), are very popular in the East (in addition to their birth
countries…and…elsewhere), and less so in the US. They’re all powder-
based malted milk drinks, although Ovaltine and Milo are chocolate
flavored, and Horlicks isn’t.

12
 But Starbucks chose to go with Ovaltine and Horlicks instead of
Milo here in Singapore for their cakes. Why? My suspicion is the brand.
Milo has a very strong brand cache among the three. So, with it, probably
came a little bit more money to co-promote and co-market. The other two
brands were probably a little bit more willing, flexible and if licensing fees
were involved, then a lot cheaper

d) Morale of company employees

To over 100 countries that Ovaltine was distributed, the 16,000

responsible employees (out of 138,000 employees of ABF) cannot afford
to lose their morale. The company post a statement to their working areas,
and it seems it helps the employees to be motivated, “Living our Values:
Respecting everyone’s Dignity; Acting with Integrity; Progressing through
Collaboration; Pursuing with Rigor”

The company has the initiative focuses on three pillars: improving

life opportunities by empowering women and young people through health
and education; improving living standards with better living conditions; and
boosting livelihoods by protecting workers’ rights and improving incomes –
no wonder the employees are dedicated to their daily task

e) Customer satisfaction

The financial break-through of the ABF at their Grocery segment

led by Ovaltine, along with Twinings, Acetum, Jordans Dorcet Ryvita and
AB World Foods signifies the satisfaction of their customers. Each of our
Grocery businesses pursues an independent strategy appropriate to its
market position and stage of development.

All of these businesses are committed to the consistent

development of their brands, and consumer research is conducted locally
and internationally to establish consumer needs and ensure appropriately
targeted investment. Our production facilities are well maintained, and we
take a long-term approach to capital investment, recognizing the merits of
building for the future.

13
V. SWOT ANALYSIS

 STRENGTH AND WEAKNESSES

STRENGTH WEAKNESSES
1. The first malt drink that gains 1. Global presence of the brand not as
consumer’s trust. much as some prominent global
competitors.
2. Rich in necessary nutrients and 2. Lack of brand awareness.
vitamins.
3. Variety of product lines. 3. Poor promotion
4. Use of the product in range of feature 4. Weak supply chain.
films and TV shows.

5.Competitively prices and Good taste 5. Intense competition means limited

market share.

 OPPORTUNITIES AND THREATS

OPPORTUNITIES THREATS
1. Come up with the new variant and new 1. The leading brand which is Milo and
products in the market (such as nesquick, other competitors.
candy and etc.)
2. They are well known in the market. 2. Strong Marketing Strategy of Milo and
other competitors.
3. Competitively priced. 3. Well known ambassador of other
brands
4.They have been used a decade long 4. banned in Denmark under legislation
since 1930 (Released earlier than Milo because food authorities claim that it
which is the leading brand) contains illegal additives.

5.Ovaltine doesn’t contain fat which is 5. It is no longer advertised in Us

good to heart health and for people who because Nestle acquired the rights to it.
are health conscious

VI. ACTION PLAN

According to Cocoa Specialists Incorporated, the total market share of the

powdered chocolate drink industry in the Philippines:

14
Milo-10 %
OVALTINE- 20%
Local and Foreign brand- 10%

The following are the action taken of Ovaltine:

 Sponsoring the national team to an Asian sporting event as the Official Drink.

For example, creates both synergy with advertising and offers promotional
possibilities.

 Advertising Program
1. Television
2. Newspapers
3. Magazine
4. Internet
5. Public Relation Activity
6. Public Relation at Selling point

 Target Market Strategy

1. Health-conscious people who interested in living a healthy lifestyle

15
 Ovaltine is a nutrition Swiss chocolate malted drinks that contains 4 Vitamins and
6 minerals to help support kids and family living in a healthy lifestyle. Ovaltine
has less than half the sugar serving of the leading chocolate brand.

2. People who is on diet

Ovaltine also comes in lighter add-to-water varieties which is low in fat, and high
in satisfaction. Put 4 heaped teaspoonfuls of hot water and stir, so they're quick
and easy to make and contain fewer calories and fat than the add-to-milk
varieties- handy if you're trying to lose any post pregnancy weight.

3. Busy person who lives in a busy life and need to manage wisely

Busy person can use just 10 minutes a day to take a breather with Ovaltine and
get yourself back on track. Ovaltine also available in handy sachet packs making
it ideal for busy person on the go.

4. Kids, Male and Teenagers, Adult, Baby boomers

Ovaltine Max for milk contains 11 vitamins and 4 minerals, is low in fat, salt and
sugar, and has no artificial colors, sweetener or preservatives.

VII. RECOMMENDATION

Brand positioning strategy for a competitive advantage is very important in

the Philippine to determine whether the impact of Ovaltine is to focus among the
children alone considering that they have friends everywhere.

16
Compilation of Case Studies
in Marketing Management
Saturdays, 11:00am – 2:30pm

NOKIA
CORPORATION
Submitted By:
Group 3:
Estrada, Elaine Inez
Buenaobra, Anjoly
Estreller, Blip Casey
Oracion, Marjorie
Garan, Mailyn
Geanan, Ronnella
Leonar, Florie Anne

17
 Submitted To:
Dr. Paterno Gonzalo
PROBLEM: Why Nokia Corporation fall behind in the market?

INTRODUCTION

Nokia Corporation (natively Nokia Oyj, referred to as Nokia; Finnish: [ˈnokiɑ], UK:

/ˈnɒkiə/, US: /ˈnoʊkiə/) is a Finnish multinational telecommunications, information
technology, and consumer electronics company, founded in 1865. Nokia's headquarters
are in Espoo, in the greater Helsinki metropolitan area. The company has operated in
various industries over the past 150 years. It was founded as a pulp mill and had long
been associated with rubber and cables, but since the 1990s has focused on large-
scale telecommunications infrastructures, technology development, and licensing. Nokia
is a major contributor to the mobile telephony industry, having assisted in the
development of the GSM, 3G and LTE standards (and currently in 5G), and was once
the largest worldwide vendor of mobile phones and smartphones.
In the year 2013, the same Nokia Company that was enjoying a 50% share in the
market dropped to less than 5% share of the total market. This was the time when the
management, shareholders, and the customers of the company feared Nokia’s
bankruptcy. The bankruptcy was nearly certain, but the intervention of Microsoft in the
market helped the company in getting back to a better position. This was done by
Microsoft in order to save the Windows platform on the smartphone, but in reality, it
gave a new life to the company.

Timeline

 In October 1998, Nokia became the best-selling mobile phone brand in the world;

 Nokia’s operating profit went from $1 billion in 1995 to almost $4 billion by 1999;

 The best-selling mobile phone of all time, the Nokia 1100, was created in 2003;

 In 2007, Apple introduced the iPhone;

 By the end of 2007, half of all smartphones sold in the world were Nokia’s, while
Apple’s iPhone had a mere 5 per cent share of the global market;

 In 2010 Nokia launched the “iPhone killer” but failed to match the competition;

 The quality of Nokia’s high-end phones continues to decline;

 In just six years, the market value of Nokia declined by about 90%;

18
 Nokia’s decline accelerates by 2011 and is acquired by Microsoft in 2013.

SWOT ANALYSIS

STRENGTHS WEAKNESSES
 The biggest strength of the  The company, though, is often
company is their brand name. criticized for poor after sales
Many consumers often opt for services.
Nokia more than any other brand  Took a long time to enter the
because of the reliability, highly productive and booming
durability, and creativity their smartphone market. As a result,
phones provide. the company lost a lot of its once
 Highly qualified personnel huge market share.
 The phones provided by Nokia  Arrogance among top level
have a much higher re-sale value managers.
compared to other mobile phone  Nokia’s culture of status has led to
brands. an atmosphere of shared fear which
 Many of Nokia’s products are influenced how employees were
easy to use and are usually interacting with each other. The
coupled with a variety of handy human factor was added to
accessories. economic and structural factors and
 Products offered by the company together they have generated a
are available in all price ranges.
state of “temporal myopia” that
hindered Nokia’s ability to innovate.
 Some of Nokia’s products are not
affordable for middle- and lower-
class consumers, which often
affects their searches negatively.

OPPORTUNITIES THREATS
 The Microsoft-Nokia deal is a  Strong competition from other
win-win situation for both smartphone companies will make
companies. The deal possesses it hard for Nokia to maintain and
great opportunity if both utilize expand their market share.
resources in a proper way.  Low-cost threats by China mobile
 Opportunities to expand the companies and others can cause
range of products and their prices. big problems.
Also bring in new features and
applications on to Windows OS.

19
RECOMMENDATIONS:

1. Get the support of application developer.

2. They also need to develop their OS more. They should find ways to improve it
and make some innovations that are going to wow people. Apple has done this
with simple things; surely, Nokia can do the same.
3. Nokia should adopt more collaborative leadership style wherein the leaders will
listen to their employees, partners and customers that will lead to a more
productive working environment.

ACTION PLANS:

1. Creating a new Enterprise Business Group that consolidates a range of existing,

fast growing activities into one focused organization reporting directly to the
President and CEO.
2. Accelerating Nokia's strong momentum in 5G by sharpening the focus of the
mobile Networks Business Group to be on mobile radio products.
3. Strengthening Nokia's capability to deliver industry-leading, fully integrated and
tested Cloud Core Solutions by aligning both resources and accountability to the
Nokia Software Business Group.

CONCLUSION:

 Nokia has been an industry leader for many years; however the market has
changed quickly, and Nokia must adopt these changes.
 Nokia should deliver a world class OS or otherwise the customers will turn to
Apple and android.

REFERENCES:

https://medium.com/multiplier-magazine/why-did-nokia-fail-81110d981787

https://knowledge.insead.edu/strategy/the-strategic-decisions-that-caused-nokias-
failure-7766

https://en.wikipedia.org/wiki/The_Decline_and_Fall_of_Nokia

20
 Compilation of Case Studies
in Marketing Management
Saturdays, 11:00am – 2:30pm

PEPSI COLA PRODUCTS

PHILIPPINE
INCORPORATED (PCPPI)
Submitted By:
Group 4:
Barbecho, Geramie R.
Verga, Patrick Adrian M.
Quimson, Myrna V.
Yu, Rosa A.
Dilao, Grace R.
Bravo, Katrina Joy R.
Espano, Darlin Mitch G.

Submitted To:
21
 Dr. Paterno Gonzalo
Pepsi Cola Products Philippines Incorporated (PCPPI)

I. VIEWPOINT

Pepsi Cola Products Philippines Incorporated Top Management

II. TIME CONTEXT

1992

III. COMPANY BACKGROUND

Pepsi-Cola Products Philippines, Inc. engages in manufacture, sale, and distribution of

carbonated soft-drinks and noncarbonated beverages in the Philippines. The company
offers carbonated soft drinks under Pepsi-Cola, 7Up, Mountain Dew, and Mirinda brand
names; noncarbonated beverages under Gatorade, Tropicana/Twister, and Lipton
brands; Sting energy drink; and Propel fitness water. Pepsi-Cola Products Philippines
offers its products through retail outlets, including direct sales, distributors, and
wholesalers; small retailers comprising sari-sari stores and carinderias; and
supermarkets, restaurants, and convenience store chains. The company is based in
Muntinlupa City, the Philippines. Pepsi-Cola Products Philippines, Inc. is a subsidiary of
PCD Nominee Corporation.

IV. CORE VALUES, VISION AND MISSION STATEMENT

VISION: Be the premier Food and Beverage Company in the Philippines

MISSION: Continue to market portfolio of international and home-grown branded quality

product at prices that provide good value to the consumers in key Food and Beverage
categories. Committed to expand the business and provide healthy financial returns to
the stakeholders, opportunities for growth and enrichment to their employees, business
partners and the communities where they operate.

VALUES: Passion, Excellence, Professionalism, Service and Integrity

V. STATEMENT OF THE PROBLEM

Determine the Marketing and Management Strategy that will help PCPPI enhance their
sales in the market.

22
OBJECTIVES

 To Strengthen and Gain Market Growth

 To Improve Customer Buying Frequency
 To Enhance the Current Marketing Strategy
 More Innovation of PCPPI Products and Services being offered in the market

VII. SWOT ANALYSIS

Strengths Weaknesses
 Strong Brand Image  Low Penetration in Asia
 Broad Product Mix  Limited Business Portfolio
 Extensive Global Production  Weak Marketing to Health-
Network Conscious Consumers
 Extensive Global Distribution
Network
Opportunities Threats
 Business Diversification  Aggressive Competition
 Market Penetration in Developing  Healthy Lifestyle Trends
Countries  Environmentalism
 Global Alliances with
Complementary Businesses
 Growing Population in the
Philippines
 Unvisited Retail Outlets (Locally /
Globally

PCPPI SWOT Analysis Recommendation:

Pepsi-Cola can use its strengths to effectively respond to the issues identified in this
SWOT analysis, especially those considered as threats. The realistic actions that
PCPPI could take to improve its competitiveness and international growth are as
follows:

1. Expansion of its production and distribution capabilities.

2. Diversify businesses to minimize market risk exposure.
3. Further penetrate developing markets to grow revenues.
4. Improve product healthfulness to attract more consumers.

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5. Enhance recycling efforts to address environmentalism.

VIII. ACTION PLANS

PCPPI should continue to expand their growth and take advantage of potential
opportunities by continuing to improve on areas at the corporate top level, in the
markets that they currently are in, and in new markets and market segments that they
wish to expand into.

 PCPPI should expand into markets and market segments in order to expand their
market share at the global level and to increase their overall revenue.

 PCPPI should improve their employee relations in order to create employees all
over the world that will promote the product both during their workday and in their
personal life in order to create “word of mouth marketing”.

 PCPPI needs to continue to expand their market share in the markets where they
currently have a strong presence in order to maintain their market share and their
footprint in the marketplace.

 PCPPI should become more proactive in the health food/product marketplace

rather than being reactive to the market trends. They need to improve their
responsiveness and future projections to market trends and changes that can
therefore allude to different product segments and target markets

IX. ALTERNATIVE COURSES OF ACTION (ACA)

ACA Advantages Disadvantages

1.PCPPI is a market leader -Can reduce out marketing - Brand building is
must maintain its position cost without compromising expensive.
and at the same time they or even increasing on
want to reduce costs. sales and market share.
Marketing plan must focus
on the push strategy, -Marketing cost will
building relationships with decrease, and sales will
retailers, giving them increase noticeably.
incentives for push and
winning exclusivity on the
retail outlets.
2. Create a team within the -Minimal cost since the - Additional responsibility

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 organization with a leader people involved are within to management/ employee
that will revisit the the organization and they will create too much
performance of PCPPI in are already familiar with pressure on how they will
terms of their sales. the line of business. be able to come up with
-Time saving the best results.

-Enhanced the company’s

overall performance.
3. Hire an effective - Generates more and new -Additional expense
Marketing Officer who will ideas for marketing.
focus on improving and -Time consuming to the
developing current -Most qualified personnel newly hired marketing
advertisements of PCPPI who will be in charge in officer to study the
to make the products more handling marketing plans / marketing situation of
saleable. strategies. PCPPI

4. Establish good -Enhance Sales

connection with small and
mega retailers who sells
PCPPI Products to final
consumers

5. Making advertisements -Can attract more -Additional Expense

trendier costumer

-Enhance sales
6. Regular -Fast-Food Industry will -Additional Expense
Promos/Freebies to the encouraged to engaged
Fast-Food engaged with business with PCPPI
PCPPI
-Beneficial to both PCPPI
and Fast-Food Chain

X. PROPOSED OPERATIONAL PLANS

PCPPI is currently one of the strong worldwide leaders in the food and beverage
industry. Throughout its growth, it has stayed true to its mission and objectives, known
throughout the world for quality products and customer care, PCPPI should make no
major strategic changes to its plan. However, like in any business situation there are
areas that can improve upon. Some of the recommendations are as follows:

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  Continue to expand with their “Human Sustainability”. The healthy eating market
is a demographic that will continue to grow in the future and will provide
generous profits if PCPPI is able to obtain a large market share.

 Expand more into social benefits, especially for those in developing nations.
Pepsi’s main competitor Coca Cola has implemented a water purification
program for African Villages, which provides a valuable need and at the same
time introducing their brand name where it was before unknown. If Pepsi followed
this same ideology with food products and water purification it too would
significantly increase brand recognition.

 Capture more of the aging population’s market share. Pepsi is a company

focused on a younger market hoping to repeat the worldwide success of Coca
Cola in regard to brand loyalty with the generations born after 1980; however,
there is still a large market with the Baby boomer demographic that they could
break into.

XI. OTHER PROBLEMS AND RECOMMENDATIONS

Continue addressing the opportunities and risks of the global marketplace and
concentrate the resources on growing the business, both through internal growth and
carefully selected acquisitions.

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