Ma Mon Luk noodles: A strategic management paper

• Main Author: Vega, Hope Marie Angelii M.
• Format: text
• Language: English
• Published: Animo Repository 2004
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4448
• Institution: De La Salle University

Ma Mon Luk Noodles Manufacturing Company has been in the noodles business for 40 years. The company has produced and marketed the Ma Mon Luk Egg Noodle product in retail outlets, kiosks and canteens throughout Metro Manila and nearby provinces. The business continues to be profitable in spite the small-scale production of around 120, 000 units per year (each units contains 250 grams). This paper seeks to expand the current business of Ma Mon Luk Noodles Manufacturing Company. Economic and market conditions are conducive for proposed business expansion especially since no player dominates the traditional dry noodles industry segment. The strategy is to generate an increase in product demand by increasing product awareness in consumer and increasing the products market reach. The strategy involves extensive advertising and promotional activities starting in 2005. The product will sport a new look repackaged (to be more attractive to consumers) and resized (increase its net weight per pack to 325 grams). Proposed retail price of the product is set at PhP 30.00 (from PhP 21.00 current retail price). At the same time, the product will be distributed in more outlets throughout Metro Manila, targeting huge outlets as channels of distribution. The plan is to increase the products distribution outlets from 9 to 30 outlets all in all. The plan seeks to generate an increase in sales volume by 41% of current volume with estimated sales of PhP 4.2 million in 2005. Sales revenue is expected to increase by 100% from PhP 2.1M in 2004. Profits will increase by around 80% from 2004, tempered slightly by the additional operating expenses incurred by advertising and promotional activities. Said activities are expected to comprise around 15% of sales in 2005. The huge budget allocation for advertising activities is needed to effectively carry out the strategy of increasing product awareness in the market. This paper further highlights the different strength and opportunities of the company, areas where it can focus to attain sustainable growth and profitability in the long run. Conversely, areas of improvements and threats are highlighted to discuss the possible risks to the business. Lastly, financial projections spanning from year 2004 to 2008 are also discussed in this paper to give financial credence to the feasibility of the proposed strategy.