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EXECUTIVE SUMMARY
Monde Nissin Corporation (MNC) a Fast-moving consumer goods (FMCG) or consumer
packaged goods (CPG) company needs to utilize different marketing strategies to ensure sales.
Their marketer needs to use advertising and brand building strategies to address the discerning
buyers and distributor push to indifferent buyers. The manufacturer should understand consumer
behavior because distributors can’t help quality and price. It is only up to the manufacturers to
deliver what consumer wants. In the perspective of Monde Nissin Corporation, 88% of their
distributors said that it is the demand why they sell their products. This is the main reason as to
why there is a greater need to understand the distributor behavior. Considering them as a team,
working for the company may help them to be attached to the company. Also, due to the
competitive aspects of products among consumer goods, specifically biscuits, there is a need to
really understand consumer behavior since MNC needs to strive in ensuring that their goods
reached the market and consumed by their customers effectively.
This marketing plan shall consider Monde Nissin’s wafer segment only. The main product
for introduction is Nissin Wafer. This is the current biscuit segment being focused by the company
to regain market share among its competitors.
The marketing focus were made explicit in this plan. The details were primarily based in
the strategic focus on marketing, distribution, and sustenance of Nissin Wafer as a successful
business proposition in the local market. The primary data used in this marketing plan were done
from interviews and discussions from the General Manager up to the key directors and managers
in the Philippines and its head office in Manila as recommended by management. The sales
performance measures came from internal sales information systems in MNC while market data
from AC Nielsen subscription for the last five years.
Monde Nissin will change its focus to differentiating itself from other major competitors
in the market, namely, Universal Robina Corporation (URC), Republic Biscuit Corporation
(Rebisco), Liwayway Marketing Corp, Enerlife Philippines Inc. and other producers from
unorganized sectors. Our marketing challenge is to position Nissin Wafers as a high-quality, low-
price, any-time snack for the younger generation. Our objective also includes optimizing the
distribution strategy and maximizing profits.
Form the introduction of this new product to the market, MNC aims to optimize its
processes while ensuring that market share of Nissin Wafer would increase in the coming years.
CHAPTER 1 – INTRODUCTION
Monde Nissin Corporation (MNC) has been incorporated in 1979 and has continuously
provided Filipino consumers high quality products and has been a consistent top biscuit player in
the market. For more than two decades, MNC has steadily and aggressively risen to be the
Philippine’s leading food manufacturer and is carving its niche as one of the most competitive
players in the global industry. From its first biscuit, MNC has evolved into a premier food firm.
MNC is the country’s market leader in the dry bakery industry, having consistently making it since
2000 in the highest position for a dry bakery product manufacturer can reach in the “Top 1000
Corporation in the Philippines”.
Since its first fast-selling biscuits, Nissin Butter Coconut and Nissin Wafer, rolled out of
its Laguna Plant in 1980, MNC has embraced delivering excellence through its intensive market
research and continuous product innovation lead by its talented pools of people. Currently, MNC
has been producing biscuits and cookies and has a nationwide reach for its distribution channels
from supermarkets down to the sari-sari store.
To further expand its market share and complete its line of dry bakery products, Monde
Nissin Corporation bought MY San Corporation, the leading manufacturer of famous cracker
brands: SkyFlakes, Grahams, and Fita, and which have settled, too, in the “Top 1000 Corporation
in the Philippines”. Subsequently, it also ventured into instant noodles in 1989 and introduced wet,
dry and no-cook noodles in its Lucky Me! brands. In 2017, Lucky Me! once again topped Kantar
World Panel’s Brand Footprint Report as the most chosen consumer brand in the Philippines.
According to Kantar’s latest report, Lucky Me! outpaced 460 other fast moving consumer goods
(FMCG) brands in the Philippines as it reached almost all Filipino households (99%), and is
purchased 39 times in a year on average. Aside from the top brands, Kantar’s latest report also
gave recognition to ten of the fastest rising brands in terms of consumer reach points, owing to the
brands’ aggressive above-the-line and below-the-line efforts. Included in the top ten fastest rising
brands are Nissin Biscuits and Fita Crackers, also from the Monde Nissin portfolio.
MNC prides itself with an efficient sales force that ensures nationwide distribution. The
outlets being served are as follows: wholesale, distributors, sub-distributors, supermarkets,
convenience stores, and groceries. The distributors handle the orders of smaller retailers and sari-
sari stores. MNC Biscuits are being advertised through television and radio.
MNC rarely uses prints and billboards to communicate its products to consumers. To name
a few of its latest television ads, some 30-second commercials were done for Sky Flakes, Fita,
Bingo Peanut Butter, and Bingo.
Vision: (1) We are a food company most admired for its agility and innovation for being number
one.
(2) To be the dominant market leader in the wafers segment, driving segment growth and
increasing segment’s market shares to total biscuits category
Mission: We are organization of happy and creative people striving for excellence and committed
to uplift the lives of all whom we serve.
Goal: The 5-year goal of Monde Nissin is drafted in year 2015, which is to achieve Php. 60 billion
in business size. This will be anchored on:
1. Growing the existing business by 15% year on year
2. 20% increment will come from new businesses (new products and distribution business) and
market expansion.
The marketing plan shall take into account Monde Nissin wafer segment only, namely
Nissin Wafer lines. This is the current biscuit segment being focused by the company to regain
market share among its competitors.
For information, primary data usually done from interviews and discussions from the
General Manager up to key directors and managers in the Philippines and its head office in Manila
as recommended by management. The sales performance came from internal sales information
systems in MNC while market data from AC Nielsen subscription for the last five years.
Strengths:
Source: AC Nielsen
- Based on the latest report of AC Nielsen, MNC and Monde M.Y. San
Corporation are estimated to hold 32% of the entire biscuits and cookies
market while Rebisco Captures 26%, URC, 16% while other companies share
the remaining 26% of the market.
Strong Distribution Platform
- MNC prides itself with an efficient sales force that ensures nationwide distribution.
The outlets being served are as follows: wholesale, distributors, sub-distributors,
supermarkets, convenience stores, and groceries. The distributors handle the orders
of smaller retailers and sari-sari stores.
Weaknesses:
Source: AC Nielsen
Difficulty in Distributing New Products of Joint Venture Partnerships
- Since 2010, there are already 2 companies have withdrawn partnership with MNC
already, namely, Wrigley’s Philippines (Manufacturing Company of Doublemint)
and Kellog’s (Manufacturing Company of Pringles Snacking and Kellogs Cereal
Foods) due to differences in processes and directions.
Opportunities:
Threats:
The Biscuits industry players are divided into three groups: Large Manufacturers,
Neighborhood Bakers, and the cottage or backyard producers.
There are at least 16 large manufacturers of biscuits and cookies in the country. These
include companies that are also known to product other food products directly or through their
affiliates. The entire industry was estimated to be P4.4 billion as per the NSO’s data last 2003.
According to Nielsen, the biscuits and cookies market is concentrated among four major players,
namely: Monde Nissin Corporation together with subsidiary Monde M.Y. San Corporation,
Rebisco and URC. Overall, MNC and Monde M.Y. San Corporation are estimated to hold 32% of
the entire biscuits and cookies market while Rebisco Captures 26%, URC, 16% while other
companies share the remaining 26% of the market. Please refer to Table 1, which is the Market
Share Data of Biscuits in the Philippines.
By product type, Nielsen reported that crackers (SkyFlakes, Magic Flakes, Rebisco
Crackers, etc.) are the best-selling variety followed by sweet biscuits (e.g. Eggnog, Marie, etc.),
and wafers (e.g. Nissin Wafer, etc.).
In 2017, few of these companies registered double-digit sales growths, with the highest
posted by WL Foods Corp. at 15%. This is followed by Universal Robina Corp. and
Commonwealth at 11% and 9% increase in sales, respectively. Whereas, Rebisco and Monde M.Y.
San Corporation only improved by 6% in sales versus 2016. Here is a summary of revenues by
selected players (in Million pesos):
Among the top players, MNC’s top three competitors are: Republic Biscuit Corporation
(Rebisco), Universal Robina Corporation (URC) and Kraft/ Nabisco.
However, looking at the wafer segment only, we see that Richoco and Richeese generated
the highest growth at 1883% and 89%, respectively. This is followed by Oishi Wafu Cheese and
other Oishi wafers at 46% and 32%, respectively. Big players like URC only grew by 32%
followed MNC at 26% and Rebisco at 15%.
For the past 3 years, the market share of Nissin Wafer is on a down trend for the past three
years. From a market share of 30% in 2015, it is now down by 7% points or only at 23% points.
Several factors have contributed to the huge decline of Nissin Wafer’s market share. This includes
the product development of Rebisco’s Wafer time in 2016 and the entry of Richeese Wafer on the
same year. Hence, the key issue are the product innovations are the growth driver of competitors
in the wafer segment.
Table 3. Market Share for Wafers in the Philippines for the past 3 years
Potential Market Segments
Source: AC Nielsen
Potential Market Segments
Based on the report from AC Nielsen, growth of new wafer products is fueled by
other market segments –Teens and Young Working Adults. This can be seen in the wafer
products of Richeese and Wafrets Brix.
Source: AC Nielsen
However, based on the current product portfolio of Nissin Wafers, it seems that
Table 5. Category Growth of Nissin Wafers per demographics
thereSource:
areACno
Nielsen
enough efforts to cater the needs of the Young Working Adult (YWA)
segment. Hence, consumers perceive that Nissin Wafers can only be enjoyed by kids
thereby limiting trial and consumption among other segments. Based on the study
conducted by Nielsen, 31% of the Teens and YWA said that they do not consume Nissin
Wafer 25g anymore because this is perceived to be eaten by kids only. On top of this, 26%
of the Teens and YWA said that they have hard time looking the product in the store while
7% of them said that the product is too sweet. When asked what are the top biscuits brand
consumed by them, the lists include SkyFlakes Crackers, Fita Crackers, and Rebisco
Crackers. They also mentioned sandwiches brand such as Rebisco Sandwich, Cream-o and
Bingo.
With this, a new product of Nissin Wafer will be launched catering the Teens and
Young Working Adult demographics. The new Nissin Wafer product that will be launched
will be familiar with higher grammage to satisfy the appetite of the target market’s
demographics. The new product of Nissin Wafer will be enjoyed both by Moms/ Kids and
Young Working Adults (YWA).
Apart from launching a higher grammage/ large format of Nissin Wafer (22 grams),
part of the two-pronged strategy of Nissin Wafer for Dominant Market Leadership in 2018
is a direct and head on assault towards Richeese and Owning an Untapped Flavor. The first
strategy is to launch a 22g of Nissin Wafer with Cheese Flavor to directly compete with
Richeese and Cal Cheese as a 3rd player. The second strategy is to launch a 22g Nissin
Wafer with Peanut Butter Flavor to own a bigger and an untapped flavor in the wafers
segment.
Chosen Target Markets
Socio-economic class broad C looking for an alternative and affordable source for
wafer snacks. These are the people who are Young Working Adults (YWA) with age 21 –
35 years old who are budget conscious and would choose value for money versus high
quality.
To retain back at 30% market share in 2018, a total of 1,878 cases per day of Nissin
Wafer 22g and Nissin Wafer Cheese and Peanut Butter 22g should be sold or a total of
273,300 cases in March to December 2018. This is equivalent to additional half billion
sales value for Nissin Wafer in 2018. Below are the details of the three-year forecast of
Nissin Wafer’s new product lines.
2018 Daily
Nissin Wafer Sales Volume 2018 2019 2020
Sales Target