Intense market research and target market evaluation suggest that KIM is ideally situated near its suppliers.
Moreover, years of operational and marketing experience will be organized and documented to create a comprehensive blueprint for success. Proven marketing techniques and operational systems will allow management to be proactive rather than reactive to the conditions and obstacles associated with opening a manufacturer of papaya marinade. Having a complete operational plan allows management to focus on building sales rather than profit.The managing partners have an extremely high agree of confidence that the systems and controls incorporated in the business plan will yield a calculated return for a given sales volume. According to studies, marinade industry is evidently growing. The industry’s performance will be driven by three key factors: product innovation, price and convenience. Product innovation – the exploitation of new ideas, which in the case of meal sauces and mixes, mean new flavors and variants – is important to remain competitive and profitable in the business.This is very evident in the meal and sauces industry where the products have gone beyond the rotational blends and flavors to address changing consumer needs.
For instance, Mama Sits has come up with “vegetarian” and “less salt” variants of oyster sauce to take advantage of the growing trend towards healthy eating. Some manufacturers also aggressively advertise their products to heighten consumer awareness and boost demand. Price IS also a major consideration – value for money and affordability is the buzz words among consumers.
No wonder companies are going into more affordable pack sizes and single-serve sachets, which entail lower cash outlay for consumers. Convenience also taters a lot, including making the products accessible and available in strategic areas. The increasing number of working women and fast-paced lifestyles of consumers have increased demand for products which are easy- to-use/prepare. And meal sauces and mixes address just that. They offer short-cuts to enhancing the flavor of everyday dishes. In line with this, sales projections for KIM assume a production of 500,000 units annually resulting to annual sales of around PH 11. 8 million. Sales is expected to double at the end of year 2014.
Total capitalization will amount to PH 2. 5 million of which will be borrowed from the banks. In closing, we feel the business plan for KIM represents a realistic expectation of success for all parties involved.
Moreover, we will be providing a benefit to the community by providing a great product and secure jobs to community residents Of Vulcan. Ill. EXTERNAL ANALYSIS A. Macro-market Analysis 1. Political/l_gal Environment Philippine laws, government agencies, and other pressure groups influence the marketing decisions of a certain product or service.Administrative orders such as Administrative Order No.
208 s. 1974 Human Food; Current Good Manufacturing Practice (Sanitation) in Manufacture, Processing, Packaging or Holding emphasizes on product quality and safety especially in food manufacturing sectors to be able to compete well and profit under a globalizes economy. 2. Economic Papaya is a luscious fruit that has been taken for granted.
The total crop area in the Philippines planted to papaya amounts to only 8,720 hectares or 0. 1 percent of our agricultural land.Papaya can be easily grown in home yard gardens. It can also be a profitable enterprise. Under ordinary farm condition, production cost amounts to only UP,700 per hectare on the first year and 1 ,500 per hectare on the second year. The net profit on the first year may be less than IPPP per hectare; but in the second year the returns can reach as high as UP,OHO per hectare. The productive life of a papaya plant is about 3-1/2 years.
This means that after establishing the plantation, income will flow with little effort provided you have a ready markets .Not many people may know it, but producing green papaya for use as vegetable is also profitable. In fact, many planters in Vulcan prefer to produce green papaya instead of ripe fruits for a number of good reasons.
For one, the fruits are harvested within a such shorter time than ripe fruits. When green fruits are harvested, the tree tends to produce many more fruits. There are less risks in producing green papaya than ripe ones. And there is also a ready market at a reasonable price, according to Desire. The price ex-farm as of December 15 is p 7 per kilo. In San Miguel, Vulcan, Anger.Jaime Tucson reveals that green papaya is very sellable at a high price during the months of July and August.
The usual price is P 15 per kilo. That’s because estate is in short supply in the market and green papaya is a highly suitable substituted. Since green papaya can be ought for reasonable prices, utilizing its pains as meat tenderfeet will yield lower costs. Moreover, if this product will be developed, this can alleviate the papaya industry of the Philippines. The existence of many industry players in the sauces and mixes industry just proves that the use of these products is increasing.And since almost all of them are chemical and preservative intensive, which are being avoided by the consumers, it will be an advantage for us to use papaya as marinade. 3. Socio-cultural Meal mixes and sauces make food taste better.
And to borrow the line of one f the industry leaders, “good food matters. ” This is especially true for Filipinos who are known to have a penchant for eating. It is, thus, no wonder that meal mixes and sauces have steadily grown in popularity over the years. Nowadays, healthy diet is becoming a worldwide trend; people are choosing ways to lessen the intake of foods containing chemicals and preservatives.In line with this, Filipinos are becoming more health conscious, thus find ways to prepare delectable dishes cooked in natural ways.
Aside from the usual uses of papaya such as desserts, viands component, soaps, facial wash, lotions, decline, and others, papaya’s richness in enzyme called pains, proved itself to have another use in tendering meat. And to satisfy both the appetizing yet healthful concerns of Filipinos when it comes to food – our product, the papaya marinade, will serve as a seasoning with tendering effect to meat. 4.Technological In order to achieve higher productive¶y’ and better quality products, new machineries should be used by the company. As products become more complex, the public needs to be assured of its safety.
Consequently, government agencies’ powers to investigate and ban potentially unsafe products have been expanded. Here in the Philippines, Bureau of Food and Drugs (BAD) must approve all drugs and food before they can be sold. Moreover, foods tests must be conducted to assure that the products pass the quality standards of BAD.These tests include chemical testing physics chemical testing, micro-biological testing, and shelf-life testing. 5. Environmental The deterioration of the natural environment is a major global concern. We need to be aware of the following four trends in the natural environment: the shortage of raw materials, the increased cost of energy, increased pollution levels, and the changing role of the government.
Since there are still a lot of future potentials in papaya plantation, we may not experience shortage of raw materials if only the agriculture industry will be able to utilize well on reaching the land’s capacity.One objective of this product is to reduce the use of energy consumption by meat cookers. Instead of boiling the meat for several minutes using an electric stove, charcoal, or LIP, they can minimize energy consumption, as well as air pollution and thermal pollution. This product will be all-natural marinade, which is in compliance with the governments goal of safe and nutritious products. B. Micro-market Environment 1 . Customer Analysis Our product targets three types of segments and they are: the cooking household people, the food businesses, and the students.Gender the household people, we particularly targeting the housewives, the cooking fathers, and the cooking house helpers.
For the food businesses, we are particularly targeting chefs and cooks of school canteens, hospital canteens, fast-food chains, restaurants, hotels, and even coriander’s. Lastly, we are also targeting students who are currently taking Hotel and Restaurant Management courses and Culinary Arts students. Our group conducted a AAU Usage, Attitude, and Image) Survey Of our prospect consumers each having 30 respondents for each market segment.Based on the results, we have found out the following: Our three market segments food budget per week are the following: Households -? 2000 to 3000 pesos Food Businesses – 8000 to 1 5000 pesos Students -? 1000 to 1500 pesos These figures can still be broken down to know how much of their budget are being spent for meat consumption: Thirty percent (30%) of the households’ budget goes to meat Forty percent (40%) of the businesses’ budget goes to meat Forty percent (40%) of the students’ budget goes to meatFrom these figures, we can therefore conclude that businesses are the highest meat consumers, thus, a possibility that they will have a greater demand for meat sauces and mixes.
(The following pieces of information are based on the survey results. ) a. Usage We have found out that on average, students cook meat twice a week, household people cook meat thrice a week, and businesses cook meat everyday. The highest user of marinades is the households and followed by the students.
Amazingly, even though there is a high demand of meat products by the businesses, some of them are reluctant to use marinades cause of the following reasons: Marinades, seasonings, sauces, and other mixes contain chemicals and preservatives. They still prefer the traditional way of cooking such as boiling, using charcoals in cooking, and using pressure cookers. Households use marinades almost everyday; while students and businesses buy marinades twice and thrice a week respectively.When asked in what amount do they usually buy marinades, the following are the results: Liquid marinade: Households usually buy 1 00 to 200 ml.
Students usually buy 200 to 300 ml. Businesses usually buy 300 to 400 ml. Powder marinade: Households usually buy 25 to 50 grams. Students usually buy 50 to 75 grams. Businesses usually buy 25 to 50 grams. When asked how much do they usually budget when buying marinades, the following are the results: Liquid marinade: Households usually budget 75 to 125 pesos.Students usually budget 75 to 125 pesos.
Businesses usually budget 25 to 75 pesos. Powder marinade: Households usually budget 40 to 50 pesos. Students usually budget 30 pesos. Businesses usually budget 20 to 30 pesos. B. Attitude When asked whether if they also prepare their own home-made marinades, all of the target segments answered yes. When asked ingredients they use, hey answered the following (descending order).
Garlic Pepper and other spices Salt Calamines Onion The respondents answered that they usually use the marinade when cooking (in descending order) beef, pork, chicken, and fish. All the respondents answered that they usually buy marinades in grocery stores. The flavors that the respondents want in their marinades are the following (in descending order): Barbecue Soy sauce Spicy Calamines/lemon/lime All the respondents answered that they all prefer liquid marinade over powder marinades because of the following reasons: Easier to use and mix (not messy) TastierEasily absorbed by the meat The following aspects about marinades were asked to know how much those factors are important to the respondents. The following factors are very important for the respondents: Taste or flavor of the meat Tenderness of the meat After-taste of the meat Color of the meat Nutritional content of the marinade Shelf-life of the marinade Speed to tendering the meat The following factors are important: Aroma of the meat Price of the marinade The following factors are not important: Brand of the marinade Product packaging c.Image From those who answered that they are buying marinades, the following rand’s are most preferred (descending order): Del Monte Mama Sits Connotation Nor McCormick Majority Of household and business respondents haven’t tried using papaya marinades while majority of the students have tried using it. Majority of the three segments responded that they are willing to try such marinade if it will be offered in the market.
Assuming a 100 ml of liquid papaya marinade, according to the respondents, they are willing to pay 25 to 35 pesos. 2.Location Analysis We have chosen to build our plant in San Oldness, Vulcan because there is a 100-hectare of papaya plantation in this place. We want to be near to our supplier, and at the same time, San Oldness, Vulcan is just located between Pangaea and Manila where we intended to offer our product. Thus, we are placing our facility near the supplier and at the same time near our market. 3. Competitor Analysis a.
Direct com petition An industry player defined meal mixes as “a prepared blend of ingredients that is added to the main dish to obtain the desired taste. They come in powder and liquid forms, including sauces used as marinades. They usually cannot be consumed as is and have to be cooked together with the other food ingredients. Examples are mixes for such Filipino dishes as assigning, karee-karee, caldera, afraid, among others. Meal mixes are convenient and easy to use.
They help reduce the preparation time of food in the kitchen. They also lessen the guesswork involved in achieving the desired taste of a certain dish. There are a variety of products available in the market, both local and imported.
For mixes, the choices range from soup mixes to breading mixes to recipe mixes and various marinades. For sauces, the selection ranges from chili to oyster to lichen sauces. There are several players in the sauces and mixes industry in the country. Many of them are multinational companies – Connotation, Milliner, Nestle, Del Monte, McCormick – who are also engaged in the manufacture of other products. Meanwhile, the local firms include Marigold Commodities, SAFE-AFC, HAD Foods Corp.
. , anemone others.The popular brands in the market include Nor, Magi, Mama Sits, McCormick and Connotation for mixes, and Del Monte, JIFF, Mother’s best and Lee Gum Eke for sauces. Players in the Meal Mixes and Sauces Industry Company / Brand Products Meal mixes Connotation Philippines Corp.. Gains flavor mix; Super seasoning Ajax-shih Seasoning mixes (garlic, pepper) Crispy Fry Breading mix Saba Soup seasoning mixes (e. G.
assigning as sample, beef manila, fish assigning as miss and chicken tonal) Del Monte Philippines Inc.Del Monte Fried chicken mixes Recipe mixes (mended-steadfast-afraid and mooched-caldera) Instant marinade (beef steak and tap, Pinion BBC) Fitter Incorporated Filched Razor ala Cuban seasoning mix Mother’s Choice Spicy chicken marinade General Mills Foods Pillsbury “Crisper” Fried chicken mix (original, hot and spicy) Get Brothers Philippines Inc. Skim’s Seasoning mixes (Junk Pap chicken, sweet and spicy ribs, beef with broccoli) HAD Foods Corp.. Mother’s BestBarbecue marinade mix; Assigning as sample mix IMP Enterprises Chickened Regular breading with marinade Garlic breading with marinade Nestle Philippines Magi Broth cubes (pork, chicken, beef, shrimp, tamarind) Magic scrap; Assigning mix Marigold Commodities NATO powder; Barbecue marinade mix; Breading mix Fried spring roll seasoning mix; Marinating mix Meat stew mix; Oriental gravy mix Peanut sauce mix; Savory sauce mix Spicy stew mix; Stew base mix; Stir fry mix Sweet and sour sauce mix; Tamarind seasoning mix Tamarind seasoning paste Marinades (barbecue, fiesta barbecue, tap, adobe) Soup mixes (guava, instant manageable)Sys International (local distributor) Seasoning mixes (spicy spareribs, Oriental beef stew, chicken gravy, beef herb gravy, longhairs – Hammond, tocsin, adobe, karee-karee peanut sauce Mended meat stew) Season n fry coating mixes (cheese, barbecue, crispy, garlic chicken, lemon and pepper, spicy chicken, crispy chicken, pizza flavor) Chicken marinades (hickory smoked, hot and spicy, rosemary, lemon and pepper, panda) McCormick Gristmills Seasoning mixes (pepper steak, steak ala probe) Clara Ole Barbecue marinade spicy Milliner Foods Phi’s. Broth cubes (pork, chicken, beef, shrimp, fish, tamarind)Liquid seasoning Meaty seasoning mix; Assigning as sample recipe mix Assigning mixes (sample, sample with gab, slamming, zamias); Wow Passim mix Recipe mixes (afraid-mended, karee-karee, caldera-mooched) Breading mix (not scrap) Meal sauces Del Monte Philippines Inc.
Recipe sauces; Tomato sauce; Tomato paste Spaghetti sauce; Pizza sauce HAD Foods corp.. Oyster sauce; Sweet chili sauce; Sarasota Garlic oyster sauce; Less sodium oyster sauce Mushroom oyster sauce; Oyster sauce Vegetarian oyster sauce; Sara Eng lichen Sweet and sour sauce; Sweet chili sauce Java sauce; Liquid seasoning McCormick Philippines, Inc.