An evaluative report on La Tondena Distillers, Inc.

• Main Authors: Macatangay, Michael P., Mangin, Rikki Don, Roa, Norman P.
• Format: text
• Language: English
• Published: Animo Repository 1991
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16931
• Institution: De La Salle University

In 1884, a humble Chinese immigrant came to the Philippines to seek his fortune. His name is Don Carlos Palanca Sr., founder of La Tondeña Incorporated which a century later became a giant in Philippine industry and now came to be known as La Tondeña Distillers Incorporated producers of Ginebra San Miguel, Añejo Rum 65, Añejo Rum 5 years and Vino Kulafu, etc. The company has three major competitors namely: Tanduay Distillers Incorporated owned by business tycoon Lucio Tan Distilleria Limtuaco, an old established company Consolidated Distillers, a new company that only entered the hard liquor industry during the early eighties. Among the three, Tanduay Distillers remains to be the strongest competitor of La Tondeña Distillers Incorporated due to its large market share in the rum market. Our training was done as a group, we were not assigned specific jobs individually. We all had the same training. Training was done at the Central Office in Quiapo, Manila and at Timog and Velasquez sales offices. At the sales offices, we went to the field with the salesmen and observed what they were doing: and reported them to the Area Sales Director, Rey Castañeda. The company's strengths can be seen in the joint venture of La Tondeña Distillers, Inc. (LTDI) with San Miguel Corporation. There is a strong financial back-up coming from San Miguel Corporation, in addition to that San Miguel Corporation has one of the most advanced and organized corporation in the Philippines. The company's weaknesses include the lack of personnel in-charge of monitoring promo activities of the company. Stock-outs usually occur and accounts receivable turnover is low. The perceived marketing problem is the low brand awareness of the company's push brands namely: Añejo Rum 65, Añejo Rum 5 years, and Vino Kulafu. This resulted to low market shares and low sales volumes. These brands only account for not more than 10% of the total hard liquor market. The company should advertise more on these push brands and have more promotional activities so that these brands will be known to the consumers. With this, it would help increase the market shares and sales volume of the brands.