A corporate strategy of New Asia Blends, Inc.

• Main Author: Matutina, Ericson Y.
• Format: text
• Language: English
• Published: Animo Repository 2001
• Subjects: Food industry and trade > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2881
• Institution: De La Salle University

Standard ISO 676: 1995 of the International Organization for Standardization (ISO) defines spices and condiments as vegetable products or mixtures free from exttaneous matter, used for flavoring, seasoning and imparting aroma in foods. The term applies equally to the product in the whole form or in the ground form. The consumption of spices is influenced mainly by size of population and its income in the Philippines, the state of its economy and the culinary, social and eating habits of Filipinos. In the Philippine spice market, the buyers are segmented into two main categories: (1) Industrial buyers and (2) household buyers. Industrial buyers are from the food industry, which is large and very competitive. The intense competition has made them technically sophisticated. Household buyers can be further segmented into urban and rural buyers because of their living lifestyles. Since the demand for spice is derives from food, their purchases are regular. The factor affecting demand are changing lifestyles and consumption patterns, changing consumer preferences and tastes and new product development. Fo the supply side are the sources of raw materials and competition among industry players. The New Asia Blends, Incorporated is a Filipno owned SEC-registered corporation engaged in the blending, manufacturing and marketing of spices, seasonings, restaurant and household mixes, snack flavor blends, fruit juice/shakes flavors, meat cures, phospic binders and other custom blended food ingredients. The firm's strengths are: (1) the ability to react quickly with current food trends in the market (2) low operating costs (3) wide variety of blended spices and food ingredients as compared to rival firms in the chosen target market (4) goodwill of Jansen ad Benson Int'l. passed on the firm for delivering quality products and (5) access to wide customer base via Divisoria market. Weakness include limited working capital, limited distribution and storage facilities, and dependence on local suppliers for raw materials. Opportunities are product differentiation using spices, market niche of blended spices in the provinces and other uses for nutrition and health. Lastly, threats would be dependence on food industry and multinational competitors to go after the niche market. The company's current/previous strategies include: (1) concentrating marketing and sales efforts on small to medium size food processing companies (2) expanding product line to other food ingredients (3) the management plans to increase the R & D tean to include specialists in other product lines or to hire a R & D consultant on a retainer basis (4) to increase working capital (and 5) to strive for excellence through its people. The proposed strategies after the evaluation of the current/previous strategies against a framework (Porter's 5 forces) and current and future trends/market/industry conditions are: (1) pursue growth by increasing sales and marketing efforts of custom-blended spices, seasonings and other food mixes to the market niche in the industrial sector and retail sector (2) establish a brand name for its products (3) establish a formal distribution channel (4) Invest in trainings and seminars (5) continue plans on importation (6) trade spices and food ingredients in the provinces (7) increase sales with existing customers and (8) establish human resource unit.