An integrated marketing campaign for Nipa Foods by Selula-Hayagham Corporation

• Main Author: Abes, Maria Rosalie C.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4895
• Institution: De La Salle University

The Philippines is one of Asias fastest growing economies, and also considered as one of the ASEAN regions largest markets for retail processed and packaged foods. The country generates a wide range of food products such as fruits, vegetables, marine and poultry products, beverages, condiments, seasonings, and bakery and snack items. According to the Center for International Trade Expositions and Missions (CITEM), the Philippines is positioned to be Asias most exciting sourcing destination for food exports, with all products made of quality, healthy, and natural ingredients sourced from the Philippines tropical islands. According to Retails and Food Processing Sector of the Philippines, the countrys increasing urbanization and continuous strong economic growth have changed the local retail food market and are seen to drive the lifestyle change among Filipino consumers. Filipinos are now more adventurous in trying new food, particularly those touted to be tasty yet healthy. This new consumer behavior has given rise to many local businesses now reinventing Filipino tastes by producing local specialty food products. Selula Hayagham Corporation (SHC) is a Filipino-owned company that aims to become the largest diversified life science company with focus on agriculture and industrial biotechnology. SHC is involved in the manufacturing of food, beverages, nutraceuticals* and natural products** the packaging and re-packaging of such products and the buying and selling of such products to consumers or other businesses, locally and abroad. Nipa Foods (NF), a division of Selula Hayagham, is a specialty food and beverage business that sources local and unique Philippine foodstuffs from small, independent local businesses. The unique selling point of the business is that its products are all natural, locally and sustainably-sourced, selected for their high quality, and are packaged and presented under the brand name Nipa. As a new player in the market, Nipa Foods is faced with two major challenges. First, the company needs to improve its marketing communication strategies to be able to reach potential customers and fulfill consumers food interests. The researcher identified from this study, that only 26% of the respondents knew about Nipa Foods. Second, the business remains to have more expenses than it does earnings it has not yet broken even. Nipa Foods is still in the very challenging startup phase. According to Nipa Foods, the business is investing more of its budget in advertising, marketing, equipment and research. It is not yet on track in terms of sales, but expecting to double its sales by 2015. In order to address the problems of Nipa Foods, the objectives of this IMC campaign focus on achieving three main points: (1) To determine the target market. Currently, NF is trying to tap as many end consumers as they can, but it has not yet identified the behavior of its potential customers. It is important for NF to first identify who are its primary and secondary consumers, and classify their purchasing power, lifestyle, demographics and psychographics. By doing so, it would be easier to craft messages that appeal specifically to the target market and make decisions on media allocations. Further, this will help NF to focus to those most likely to purchase the product, resulting to higher profit potential. (2) To create brand identity and awareness. According to the Philippine Food Processors and Exporters Organization Inc., there are thousands of local food businesses in the country. Nipa Foods needs to stand out and communicate to its market to get noticed. The researcher concluded that 74% of its total survey respondents are not aware of NF. It has also been identified that potential customers purchase local specialty food products based on influence of families and friends, promotional packages, online (blogs, advertisements, social media) and events (food bazaars, weekend market). Based on the research, NF needs to improve its marketing strategies to generate more brand awareness and create a buzz in the market. With its marketing budget of Php200,000.00, Nipa Foods must achieve better brand exposure by executing effective and measurable relevant marketing strategies using the media mix digital, print, events and sales promotion. (3) To help increase the sales for 2015. The business is young and continuously experiencing challenges. Last 2014, Nipa Foods was able to generate P2Million in product sales. But by targeting the right consumers, use of proper marketing channels, and having a more recognizable brand, Nipa Foods will be able to reach a bigger targeted audience. By doing so, Nipa Foods can improve its sales, and increase customer base.