Market Study Marketing Essay Example

4,403 boxes sold in South Mindanao during that month. As for Ore, there were 216 boxes sold in the South Mindanao market in August. Our company has experienced consistent sales and growth over the past five to three years. However, there has been a decline in sales since 1999 due to the Asian crisis. This prompted us to change plans and relocate our factory to Thailand while also reducing our workforce to address high wage rates in the Philippines.

Currently, the company is making a significant change by transferring its distributorship from Quelling distributor to JDK PHIL in the Philippines as part of its marketing plans. However, if the Asian crisis continues, growth will be stagnant. The company aims to expand its product lines to ensure customer satisfaction and implement cost-cutting measures. If the Philippine economy improves, both growth and income will increase for the company. Additionally, providing jobs is seen as a way for the company to contribute towards improving Filipinos' lives.

The increase in population could potentially lead to an increase in potential consumers.

The product's affordability ensures accessibility to all Filipinos. Tang and Ore target individuals aged 2 to 80, without any specific gender preference.

Tang has incorporated calcium and vitamin C in their instant powder drink, a feature not commonly found in ordinary juice drinks. This nutritious Tang juice drink was made possible through the company's efforts. Various communication channels such as brochures, posters, TV, and radio are used to inform the public about the product. Additionally, a child-friendly plastic pack that is easy to open and dispose of has been developed.

Both Tang Juice and Ore cookies share advantages such as using non-biodegradable foil

packs that harm the environment, but they also contribute to environmental sustainability by utilizing packaging boxes made of recycled paper.

From an economic standpoint, Kraft Philippines will benefit from high tax returns while also increasing its economic capabilities. This can lead to expansion and serving more customers, ultimately improving the lives of employees. In terms of competition within the instant drink mix market, Tang faces many rivals; however, competitors like eight o'clock and Pompano are supporting Tang in overcoming current marketing challenges.Mill and Nestle are also competitors in the same market, targeting consumers with their refreshing drinks. Similarly, Ore faces competition from other cookie brands like Hi-or and Apple Dapple that also cater to the same target market. When it comes to distribution practices in the market, it is crucial to store products in a well-ventilated warehouse that is comfortable and free of moisture to ensure product safety. Proper temperature control is essential to prevent early expiration, along with protection from direct sunlight by maintaining room temperature conditions.

The size of the warehouse depends on the distributor's supply requirements for the entire area. In Thailand, Tang is distributed in cities such as Appearance, JDK zebu, and JDK Dave. Sub-distributors can be found within south Mindanao as well. In Indonesia, Ore is available for sale in supermarkets and retailers.

As for pricing details, Tang offers egg-liter packs priced at 50 phew without VAT or 65 phew with VAT for refills. The case price without VAT amounts to 30 phew, while with VAT it reaches 43 phew for refills. On the other hand, Ore has a case price of 9 phew without VAT or 7 phew with VAT for refills.

To

determine the company's product share accurately, percentages must be deducted for each product sold in order to make an accurate assessment.There is a 20 percent deduction for the sole distributor and a 5 percent deduction for sub-distributors. Over the past five years, there has been a projected 4 percent increase in price trends for Tang. Nabisco Ore does not have any available data because Kraft foods only acquired ownership of Nabisco two years ago. There has been a 2.5 percent increase each year for the past two years.
In this company, promotion is crucial to ensure that buyers or consumers will purchase and use the product. It is important to advertise the product to create consumer awareness and convince them of its quality. Other promotional tools include offering special discounts and endorsements from buyers. Effective implementation of brand initiated promos, along with aggressive TV and radio commercials, are also essential. Visual aids such as posters and brochures should be provided by the company.
The company conducts product sampling in various locations like malls, supermarkets, sari-sari stores, and streets within their coverage areas.This helps increase market sales for the company.
The Internal Analysis Strengths of the SOOT Analysts are as follows: effective implementation of brand initiated promos; high demand for Tang Liter; aggressive TV and radio commercials; entry of new products; direct shipment for Manila; improvement of products to reach target sales.The weaknesses of the company include strong competition, high trade return with additional merchandisers, shortage of Tang Liter, slow movement of Tang, and limited capitalization of tertiary outlets. On the other hand, there are opportunities for growth such as aiming for a 20% increase compared to the previous

year, increasing the number of outlets by 30%, deploying sales supervisors across all distributors, targeting the product in all outlets, and improving sales in the target area. However, there are also threats in the industry including intense competition and adapting to fast advancements in high technologies. In terms of demand analysis, purchasing 1 month's supply for 60 months with a summer discount of 20% would result in a total calculation of [(17,140 + 11,721) * 60) * 0.5 = 2,164,575 for Tang. For Ore cookies, purchasing 1 month's supply for 24 months would result in a total calculation of (1507 * 24) + (180840 *0.25) =226050.
The significance lies in studying and researching Kraft Foods as it holds a noteworthy position in the business world. With its years of experience and reliability as a company to learn from and analyze its capabilities and products. The focus of this study is on two specific products offered by Kraft Foods: Tang instant drinks and Ore cookies.The selection of these products was based on their unique characteristics and consumer demand. Our objective is to assess the potential of various products, including their processing, origin, and target market. This analysis provides us with deeper insights into individual companies and their business operations. Additionally, we review historical data to determine the success or failure of specific products in generating significant income and consumer appeal.

Throughout our research, we identify weaknesses, strengths, advantages, market strategies, market segmentation, product line sources, as well as technological and economic benefits that can positively contribute to our country. We observe that the company's focus is on increasing production volume, distribution, and sales compared to previous years' records.

To

facilitate this expansion plan, the company intends to hire additional supervisors for training and supervision purposes at their sub-distributor in Mindanao. It is recommended that the analyzed products improve their reduction rate by enhancing internal activities that promote product welfare and allocating more funds for research and marketing efforts.

Furthermore, supporting tertiary outlets in expanding their capital will enable them to cover additional areas resulting in increased sales. To ensure a consistent supply and delivery of products at all stores and outlets it is essential to recruit more merchandisers.Increasing the number of salesmen in South Mindanao can boost the promotion and distribution of Ore. Additionally, product sampling can drive sales growth for Ore cookies.