A Marketing plan for UFC sarap asim vinegar Universal Food Corporation

• Main Authors: Chua, Karen L., Mangabat, Irma, Rellera, Richard A., Son, Howard D.
• Format: text
• Language: English
• Published: Animo Repository 1995
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16849
• Institution: De La Salle University

Let us name some of our favorite dishes be it an oriental or a western one. Barbeque, sisig, sweet and sour pork etc... It may not be apparent to all especially for those who don't know how to cook but there is one discriminating ingredient found in these dishes and that is vinegar. It provides the sour taste that we look for in sampaloc, calamansi, etc.,... but still there is no alternative to it. Vinegar because of its utility has become a common household term for many of us. People from all walks of life use suka . From the maids or cooks to businessmen who have it served to their table. Its market is so vast that it has become hard to really segregate it. At present, the total number of cases of vinegar sold in the Philippines is estimated to be 700,000 cases of 320 ml per month, that is 8,40,000 a year. The market leader, Datu Puti holds 20% followed by Amihan and UFC with a 5% share and the others comprising 70% of the total market. Datu Puti although the no. 1 brand, hasn't lead the market that much. There is a lot to look forward to considering the size of the market dissipated among the other brands and its possibilities. Also, the yearly trend indicates that it is good product to push since sales for vinegar does not drop significantly during the lean months unlike its ketchup counterpart. Rain or shine people still have to buy vinegar because it isn't simply an add-on they can do without. This also explains why the market is price sensitive. SAFI makers of Datu Puti has recently acquired the no. 2 brand, Amihan and a long existing brand in the market, Nelicom. Their strategy is to use the other two brands to compete directly with UFC and other brands who bank on their low price to gain shares. This way Datu Puti could maintain its high price in the market and the said company could further maximize its share of each segment and of the total market as a whole. To counteract the competitors' moves UFC has to act fast. Buyers of Sarap Asim Vinegar are those who want value-for-money but prefers safe or established brands. Amihan's position poses as a big threat to SAV since it is similar to it. The objective therefore would be to increase volume movement or sales. Profit is not the priority where market share is still small and the current positioning is at stake. The lack of support of the company to the product makes advertising in TV not feasible. Radio and print ads, however, are within the budget. Furthermore, the group has proposed for the implementation of various promotions and merchandising efforts aimed at the end consumers and the different channels of distribution, which, if properly implemented would yield a calculated 40% increase in sales. This would then serve as the target for next year. Quotas will have to be raised to help achieve the targeted sales.