Competitive Analysis of Monde Nissin Corporation

Vs. Gardenia Corporation

There are lots of business competing with each other, in terms of products and even services. As
globalization makes the competition harder and tighten for each business. Those businesses are still
fighting and improving the quality and quantity of their products to survive, to make their business
locally and even globally competitive.

Business competition can be classified into 3 kinds of competition and they are:

Direct Competition - is a way that both business operates in the same industry for example Mcdonalds
and Jollibee, giving the same products and satisfying similar needs of their consumers.

Indirect Competition - are business can give satisfaction for both consumers, but not offering the same
product. For example Mang Inasal and Mcdonals, not similar products and services but they can both
satisfy the same needs of their consumers in that specific area

Replacement/ Potential Competition - lastly Potential or Replacement Competition in this type of

connection both businesses can come up with a different products and solutions in time the company is
facing a huge problem of being flexible enough to satisfy all the needs of their consumers. For Example
San Megual Corporation that sells variety of goods from beer to foods and beverages.

Competition is healthy as long as the business organization makes it a healthy one, because a healthy
competition can lead to...

1. Strengthen both competitors to maximize their products and services.

2. For checking the quality of the products they offering to the market.

3. Knowing what exactly to produce for the satisfaction of their target market.

4. Give the consumer the right to choose a better product.

5. Give a focused or highlighted product.

6. Provide a high-quality product every time.

7. Lastly to make the business stick to improve more and more products.

Forces on How to Choose Your Target Market

Economic Force

1. The General Price Level - also known as the SRP (Suggested Retail Price).

2. Rate of Interest – How much interest rate will get from the target market.
3. Government Regulations – in what kind of rules and regulations required to establish the business.

II. Social Cultural and Demographic Forces

1. Taste of consumers from different culture – because different culture have a different preferences .

2. Age and way of life – what the target age of the consumer is it kids, adult, young adult and many
more, and the way of life they have.

Competitive Advantages
Monde Nissin Corporation

I. Competitive Factors

1. Large Manufactures - the one who produce all the goods of Monde Nissin Corporation down the
market and sari-sari store.
2. Neighborhood Bakers – offering a fresh baked products per piece basis often in their neighbor’s
who lives near the manufacturing site most of the time.

which often self newly-baked dry bakery products on per piece basis, are within the neighbors’ reach
and are available to the localities most of the time.

3. Cottage or Background Producers – traditional base biscuits and cookies recipes that sold
seasonally or personal request but in a much higher price.

II. POLITICAL GOVERNMENT AND LEGAL LAWS Philippine Law Affecting Organization

( Monde Nissin)

1. Department of Health

2. Food and Drug Administration

3. Bureau of Food and Drugs

4. Good Manufacturing Practice

III. TECHNOLOGICAL FORCES

In technological basis from plants and equipment they can assure that all of their modems are safe
and environmental friendly, the Ando family trade’s secret are secure with legal law and have a
propriety registrations and protection. All manufacturing equipment was rest assured to remain at its
higher level of function every time.

Internal Forces

MANAGEMENT INFORMATION SYSTEM (MIS)

The MIS Team manages computer systems to provide up-to-date information needed for smooth and
efficient operations to help them in their decision making. They are used to enhance systems and
processes that will make the business at its best condition every season.

A. MARKETING AND BRAND DEVELOPMENT

The Marketing & Development Team are the one who’s responsible to think and made decisions to
create a new ideas to offer in the market that will surely satisfy their consumers’ needs and wants. They
are the one who makes an intensive market research, strategic brand management, and effective
communication with consumers to make everything happens’.

B. FINANCE / ACCOUNTING

Monde Nissin Accounting and Finance team creates value by being involved in every aspect of the
business as they monitor progress and project developments to ensure exceptional business
performance.

C. PRODUCTION / OPERATION

Quality control technology has been specially developed every year as globalization is conquering the
whole world together with unstoppable technology development. The company conducting a yearly
regular testing and re-testing of their products before they put them in to markets and delivered
overseas, in every packaging, storage and transport mechanisms are strictly monitored and frequently
adjusted to ensure quality standards of safety (Nissin Food Corp. Ltd,2010).

D. RESEARCH AND DEVELOPMENT

Monde Nissin is also a major innovator in product development. It's facilities house a brain-trust, to
generate and develop new ideas for new markets. Here, quality biscuits and many varieties of noodles
are processed, packed, and sealed. System are constantly studied and improved.

COMPETITIVE ANALYSIS: PORTER'S FIVE MODEL

A. INDUSTRY COMPETITORS

Monde Nissin as a long-time top company in the world that produce the popular biscuits and cookie and
now have been competing in to new entrant. By thinking in a unique way of letting their consumers
reach their products at its best by having a strong commercial, business advertisements in newspaper,
and wide market promotions. But because Monde Nissin is very competitive, they are not scared if
people will not buy their products because afterwards they will come back to longest, because since
2000 they consistently making the trade mark of their product that make them stay in the highest
position a dry bakery product manufacturer, and a trusted brand.

B. COMPETITIVE RIVALRY WITHIN THE INDUSTRY

There is a high potential that new competitors can join in the compete with them because of low capital
requirements. Since manufacturing dry bakery products, most specially biscuits, cookies, pretzels, and
crackers, require low cost and by-volume-sold ingredients: flour, shortening, baking powder, sugar, milk,
cheese, and other dairy products; and are baked in large quantities, entering the industry is easy. It can
even be done at home. Entrants can freely across Monde Nissin's way by making me out of the world
products because for today, customers want a unique food to be shared using social networking sites.
They are always making and developing a new product dominating the market. Monde Nissin thinks way
much smarter than them releasing new strategies to come up with this new force.

C. THREAT OF SUBSTITUTES

A lot of disease is coming to the human generation now so many people wants to eat healthy foods to
eliminate having disease. Besides the substitutes, alternatives such as chips, chocolates, fruits and
noodles are also roaming in the market. There is a high treat of substitutes because of high competition
between the minor and major industry players. Consumers are increasingly health conscious, they
demand fresher and higher nutritional food. As such, there is an increasing consumer preference for
fruits, vegetables, poultry and low fat, low sugar and zero to low preservatives content products. No
matter how much hard works Monde Nissin has contributed to the improvement of biscuits quality, the
dry bakery products are not considered as a real meal to the consumers in time of disaster or desease.

STATEGIC FORMULATION ( Promotion)

1. Buy one get one

This strategy is not new to the market to have more profit and to let the buyer buy more of their
products. This way it will increase both products' market share and the strong alliance of the companies.
Selling 2 products with a discount encourage people to buy a lot of stocks.

2. Using of Advertisement

When you think you're products is not that well known by the people. Think of a strong commercial that
will affect people's life. This is one of the marketing strategy of Monde Nissin, just like what they did on
Voice biscuit. They made a commercial that has a lot of sounds to let people catch their attention.

SWOT ANALYSIS

Strengths
1. Greater efficiency achieve through the installation of high-speed instant noodle production lines.

2. Lower distribution costs and exclusive sale contracts with retailers.

3. Worldwide presence of brand.

4. Continuously proposing new product based on technical breakthrough,

Weaknesses

1. Tough competition from other brands and restaurants means limited market share.

2. Marketing in other countries is not as efficient.

Opportunities

1. Align sale with marketing partners globally.

2. Cost reduction by restructuring production system.

Threats

1. Intense and increasing competition in ready to cook segment.

2. Increasing local competitors.

Monde Nissin Product

Gardenia Corporation
Promotions

They are also giving promos and programs in which they will buy your products more often. Combining a
consumer promotion with a trade promotion will potentially increase the push and pull power of the
monde brand. Consumers will be offered very appealing promo while the trade is encouraged to sell
more since the higher volume, the larger the profit is for this type of goods which is volume driven.

Company Strategy

   New users can be in the form of new customers. Gardenia Bakeries, with its sound financial
position and affiliation, would allow it to either set up a new plant in Mindanao area to capture
the undeserved area. Not only would it create jobs, this strategy would also allow Gardenia to
minimize intermediaries, enabling better inventory and logistics control. Meanwhile, to capture
non-users such as those who rely on rice, crackers, cereal, corn or any readily-available food,
Gardenia should craft and organize   marketing efforts to create a desire for the products.
Dedicated salesmen should be assigned on this particular project to facilitate feedback
mechanism. One example of creating a desire is by engaging the services of celebrities which the
target market can highly associate themselves with. For increased/more frequent usage, Gardenia
can find creative ways on how to stretch use of its products, stepping out from its usual bread as
sandwich or merienda image. To defend its market share from “cottage” bakeshops as well as the
emerging franchise like Julie’s Bakeshop, Gardenia should further strengthen its Gardenia
Pushcarts to enable improved penetration on grassroots level. This, or Gardenia, if it would like
to maintain its current branding and market image, can establish a new company that would
specifically cater the under served market, reminiscent of Jollibee’s Mang Pepe. On the other
hand, behemoth conglomerates like San Miguel Group, Gokongwei Group, or similar group that
has the financial capability to develop and distribute products to compete head-to-head with
Gardenia should also be considered. Gardenia should be mindful of any business dealings that
might prelude this to make pre-emptive counter-measure strategies. To protect its position in the
market, Gardenia should reinforce market’s association with the product. Citing years of
relationship since 1997 would send a message to the consumers of the continuing commitment of
the company in ensuring quality food in every table, freshness in every bite. Years of
uninterrupted dominance in market would give Gardenia the advantage over the new entrants.
Finally, diversification of products could also be an alternative. Entering the beverage or bread
spread industries, while risky, would serve as flankersto the core product line of Gardenia
Bakeries.

Strengths
1. Perceived superior quality products (freshness and taste, awards)
2. Wide coverage and distribution, and top the line production (extensiveterritorial distributors;
6,000 loaves per day)
3. Ability to make rapid expansion
4. Supported by a conglomerate with proven market success (QAF Group)
5. Growing flank product lines
6.Multi-awarded company
Weaknesses
1. Limited availability/penetration to lower-end market (sachet economy)
2. No stand-alone stores
Opportunities
1. Growing economy and rising middle class
2. Improvement on market coverage and distribution

Threats
1. Convergence of competitors
2.Bargaining power of retailers
3.Inflation and tariff
4.Global economic crisis

Gardenia Products

Monde Nissin Corporation Gardenia Bakeries Philippines

Product List
Noodles Breads

Go Cup (formerly Supreme) (cup noodles) Classic White Bread- Regular slice
Instant Mami (noodles with soup in pouch) Classic White Bread- Thick slice
Pancit Canton (dry noodles in pouch) High fiber whole wheat bread
Special (special noodles in pouch) High fiber wheat raisin loaf
NamNam All-3-in-1 Seasoning Wheat cranberry loaf
California raisin loaf
Chocolate chip loaf
Double delights ube and cheese loaf
Double delights strawberry and blueberry loaf
Amazing black forest loaf
Amazing butterscotch loaf

Monde Nissin Biscuits, Wafers, and Cookies Pandesal and Buns

Nissin
Butter Coconut Premium pandesal
Wafer Soft delight pandesal
Whole wheat pandesal
Stick Wafer Cheese buns
Cubee Wafer Dinner rolls
Choco chip brioche bun
Bread Stix Cinnamon raisin wheaten bun
Eggnog Butter sugar cream roll
Coco Bites Chocolate cream roll
Cookies n’ cream
Marie Choco strawberry cream roll
Waffle Deluxe Rocky road cream roll
Chocolate fun bun
Voice
Ube fun bun
Bingo Mini fun bun custard cream
Sumo
One One Rice Snack

Malkist Sandwich

Monde M.Y San Biscuits Pocket Sandwich

Sky Flakes (stylised as SKyFlaKes) Cheese Filled White Bread

Fita Chocolate Filled White Bread Pocket
M.Y. San Grahams Sandwich Raspberry & Peanut Butter
Pocket Sandwich White Chocolate & Blueberry
Butter Cookies
Danish-style Butter Cookies
Happy Time

Mixed up
Bakery Toast Bread

Monde: Butter Toast

Special Mamon Butter Toasties
Cheese toasties
Special Cream Puff
Belgian Waffle
Crispy Waffle
Muffin
Caramel Bars
Brownies

Baked Puto

Walter Bread:

Sugar Free Wheat Bread

Sugar Free Wheat Pan de Sal
Double Fiber Wheat Bread
High Fiber Weight Control Bread
Whole Wheat Raisin Bread

Thick Slice Super Loaf

Snacks Neubake

Pringles - under license NeuBake white bread

Pringles Potato Chips In Can NeuBake super slice white bread
NeuBake spanish bread
Pringles Bites NeuBake ube bread roll
NeuBake wheaten bread
Peckish:
NeuBake super slice wheaten bread
Rice Crisps NeuBake pandecoco bread roll

NeuBake ube bread roll

Beverages

Dutch Mill
Kratos Iced Coffee
Nudie Juice

Jelly Vit Jelly Drink

Company Focus
The company focuses on what they called “Kainang More than 30,000 years ago since it was first made,
Pamilya Mahalaga (Family Mealtime Matters”. It bread has become a global food staple enjoyed by
focuses on the promotion of frequent family meals millions of people regardless of nationality, religion,
together as a way to strengthen the foundations of political belief, or socio-economic status. For several
the Filipino family and by producing goods that is generations, bread was, is, and will always be, a vital
ready to eat or instant noodles in other way and part of humans’ physical (nutritional) and emotional
lastly biscuits and cookies for the snacks of the sustenance, and this fact encouraged bread lovers all
filipino people. over the world to celebrate this via the “World Bread
Day,” a global and significant event every October
that espouses the philosophy of “sharing” and
“breaking” of bread as a meaningful and symbolic
humanitarian act.

Conclution