Monde Nissin - Lucky Me
Monde Nissin - Lucky Me
Monde Nissin - Lucky Me
A Marketing Plan
Presented to Prof. Maria Teresa Yumang
BSBA MM 3-1N
I. Executive Summary 3
.
II. Current Marketing Situation Analysis 4
A. Industry Study 4
B. Current Product/Brand Situation 5
C. Competitive Situation 7
A. Market Targeting 15
B. Product Development/Innovation Program 16
C. Pricing Program 18
D. Sales and Distribution Program 19
E. Marketing Communication Program 19
1. Advertising Program 19
2. Sales Promotion Program (Consumer and Trade) 21
3. Public Relations Program 23
References 33
I. Executive Summary
3
II. Current Marketing Situation Analysis
A. Industry Study
a) Industry Competitions
The competitive rivalry for Lucky Me; Pancit Canton is high since a lot
of instant noodles companies have emerged over the past few decades.
These are some of the competitors of Lucky Me; Pancit Canton:
Like Lucky Me; Pancit Canton, these competitors have wide varieties
of unique flavors to choose from. They also offer different sizes and
packaging aside from packet (e.g. cup noodles).
The threat of new entrants from Lucky Me; Pancit Canton to other
instant noodle companies is medium to low since Lucky Me; Pancit Canton is
still the number 1 instant noodle brand in the Philippines, based on the 2020
report of Consumer Reach Points (CRP).
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d) Bargaining Power of Buyers
The consumers of Lucky Me; Pancit Canton are the locals including
the wholesalers, retailers and end-users. These products are delivered in
different wholesale stores like Puregold, and Robinsons and retailers like
convenience stores (e.g. 7-eleven, alfamart, etc.) down to a smaller scale of
retailers (Sari-sari store) until they reach the final consumer. Recently, there’s
an issue regarding pancit canton that contains ethylene oxide, an
antimicrobial pesticide that is harmful to the health of the consumers. But the
FDA already clarified that all flavor variants of Lucky Me; Pancit Canton pass
the standard for ethylene oxide and are safe for consumption. Overall, the
bargaining power of buyers is medium to high.
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social status. Pancit Canton is more affordable than other instant noodles
for only 13 pesos per pack and 75 pesos per multipack.
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while eating Pancit Canton. Lucky Me garnered multiple awards because
of this advocacy. Pancit Canton's previous product positioning revisions
reintroduced its goods as "Minsan Pancit Canton, Madalas Higit pa Roon."
It focuses on being more than a product, but on humanizing the product as
a platform for creating beautiful experiences for Filipinos over the years,
since Pancit Canton has been a legacy brand for many years.
C. Competitive Situation
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while others might compare it to Quickchow for its price. In terms of
servings, Lucky Me is perfectly placed in the middle of its other four
competitors. Overall, these two characteristics define Lucky Me; Pancit
Canton is affordable and perfect for their target market, as well on its
serving, it's not as taste-tiring (nakakaumay) or abrupt (nakakabitin).
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Strengths
Wide variety of products that caters to the taste of Filipinos: There
are numerous recipes which can be followed to create nutritious meals out
of instant noodles. The product can be used as just noodles following the
instruction which is provided in the pack or can also be used to create full
meals by adding ingredients of one’s choice such as fish, chicken, or
vegetables.
Affordable to Filipino consumers: The Lucky Me! Pancit Canton is a
product line of Monde Nissin which is simple to manufacture and use
uncomplicated and cheap ingredients. The differentiation in each variant
comes in the form of the tastemaker which is given along with the noodle
packet for additional seasonings. The focus on this product makes the
manufacturing cost-effective and procurement of raw materials simple.
Top consumer brand in the Philippines: Monde Nissin’s flagship brand
Lucky Me! has been at the forefront of the instant noodles market for
almost two decades, becoming the market leader in the category only six
years after its launch in 1989. The brand is a staple in most Filipino
homes, and is a top choice as a flavourful, convenient, and filling meal for
every member of the family. Indeed, Lucky Me! has long held a special
place in the Filipino’s home, and heart.
Distribution channel is well crafted and is available even to sari-sari
stores: According to Brand Footprint, Kantar Worldpanel’s annual report
and its ranking of most chosen brands across the world, Lucky Me
managed to be chosen by shoppers on the shelves 812 million times.
Being the number 1 brand, it has the greatest number of buying
households, reaching 98 percent of Filipino homes. At the same, it is
being purchased 36 times in a year.
Greater efficiency achieved through the installation of high-speed
instant noodle production lines: Globally, instant noodles became a
huge success because of the ease with which meals could be prepared.
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This made it age independent and Monde Nissin could even target
the mass market in most regions that it operated in.
Innovations are always present: Monde Nissin has tried to understand
the local cuisines of each market it operates in and continuously tries to
develop tastemakers that will suit the local customer choices.
Weaknesses
Negative image of the product: There have been a lot of criticism and
allegations against instant noodles brands including harmful ingredients in
the tastemaker packets which come along with the noodle. Pancit Canton
has been found with low levels of ethylene oxide, a sterilizing agent that is
also used as a pesticide, which has resulted in many brands being
recalled from the market.
Cheap: Pancit Canton is cheap, making it affordable to most income
segments. However, its low price is often attributed to the use of poor-
quality materials as its ingredients which in turn has brought down the
acceptance of the same in premium and middle segments.
Market segment is not well defined between kids and adults: Lucky
Me! Pancit Canton already has the NAPA or the “No Artificial
Preservatives” mark, however, the target market seems to be more
focused on adults rather than children.
Tough competition from other brands and restaurants means limited
market share: Monde Nissin's top competitors include Rebisco Group of
Companies, Gardenia Bakeries Philippines, and TNA. Compared to
Monde Nissin, Rebisco Group of Companies generates $15M more
revenue. Moreover, Gardenia Bakeries Philippines generates $86M more
revenue while TNA generates gradually from Monde Nissin's revenue.
Marketing in other countries is not as efficient: Because customers
and competitive conditions differ across countries or because powerful
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local managers will not stand for centralized decision making, global
marketing won’t apparently be efficient and effective.
Opportunities
Align sale with marketing partners globally: One of the country’s food
manufacturing companies, Monde becomes the third most valuable listed
food company in the Philippines. Increasing disposable income and food
expenditure, growing urbanization, busy lifestyles and greater access to
product categories resulted in an increased preference for affordable,
quick, and tasty meals and consumption per capita of instant noodles.
Changing variety of taste of Filipinos that can inspire product
innovation: Monde Nissin Corp. is putting a great effort to fully
understand the local cuisines of each market it operates in for the brand to
successfully develop new tastemakers that will definitely suit the taste
preferences of the Filipino consumers.
Cost reduction by restructuring production system: Despite of instant
noodles having relatively low prices as compared to other consumer
goods, the total sales value of this industry continues to increase, similar
with its volume.
Buying purchase of college students and young professionals: The
increase in the number of college students and professionals and duration
of working and study hours, more need for snacking in between meals,
less amount of time to be spent in the kitchen, number of singles
preferring to cook their own meals, and many more, have all increased
the demand for instant and pre-processed food.
Threats
Intense and increasing competition in ready to cook segment: With
the globalization of the world, international cultures have already been
introduced to different people around the globe. With that, more
customers, especially younger ones, are becoming interested in new
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flavors, whether indigenous to their respective country or from other parts
of the world.
Increasing local competitors: Local and cheaper brands are becoming
more competitive in the market, especially for basic household goods.
Despite this, quality remains to be one of the top priorities for Filipino
consumers. Most households remain loyal to brands which they
themselves have tried and tested.
Increasing number of foreign companies that eats a chunk of Pancit
Canton’s market share such as Samyang and other Korean noodles:
In the current market setting of the Philippines, people are driven by new
taste inspired by foreign companies entering the country. Filipinos are
becoming more interested to Korean noodles and leveraging the product
with them might be a good strategy in getting a new variant for Lucky Me
Pancit Canton.
Quality Control Issues: Filipino households are more meticulous when it
comes to the quality of the food they are purchasing, most especially since
their families will be the ones consuming these products. Moreover, just
like any other food industry, the instant noodle industry is vulnerable to
issues regarding the quality of its products.
Other competitors releasing other variants that the brand doesn’t
have: With the heightening competition in this industry, Monde Nissin
must be able to distinguish itself from the rest through continuing to create
unique variations of its products. Since consumers are more likely to
patronize what is familiar to them, noodle brands must come up with
flavors that will deeply touch the current fads of the Philippine culture.
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IV. Goals and Objectives
GOAL:
OBJECTIVES:
Monde Nissin aims to lock-in or secure supply of key commodities for the
remainder of the year up to 2023 to minimize supply risks (like wheat and
palm oil).
Monde Nissin aims to integrate its marketing and image-building efforts,
to achieve product differentiation and brand loyalty towards Lucky Me! on
the coming years to come.
Monde Nissin expected an estimated Php 5,300,000 increase on their
net sales by 2023.
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Monde Nissin expected an estimated Php 2,100,000 increase on their
operating profit or 1.75% increase on their operating margin by 2023.
Monde Nissin expected an estimated Php 1,700,000 increase on their
net income or 1.45% increase on their net margin by 2023.
B. Medium-term Objectives (2 - 3 years)
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to ehance operational efficiency, reduce carbon production, and produce
zero waste across their value chain.
A. Market Targeting
This part appears if there is a need for the firm to change, expand its
current target market. This includes:
A. Demographic characteristics
Age: 18-45
Gender: Male, Female
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Income: 17,000-30,000
Occupation: Call Center Agent
Nationality: Filipino
B. Psychographic characteristics
Social Class: Working-class
Lifestyle: Achievers
Personality: Always on the go
C. Behavioral characteristics
Usage rate: Heavy user
Benefits sought: Convenient
Purchase occasion: Regular
Attitude toward product: Positive
This part discusses the product and if there are changes to be made.
These includes:
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Benefits: Rich in vitamins and minerals (11.6%/cal) - a good source
of Vitamin K, Vitamin A, Vitamin C, Iron and Zinc. Good source of
proteins (22% of DV/100g).
Performance: Easy to prepare and cook noodles
Quality: Flavorful
Usage: 2-3 times a week
Product features
Each pack includes dried noodles, a packet of seasonings, and a
packet of soy sauce and oil flavorings.
Packaging
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C. Pricing Program
This discusses the pricing strategies for the product/brand that includes:
Product costing
Price per pouch: PHP 13.50
Price per multipack (6 pcs): PHP 90.00
Price per case (72 pcs): PHP 972.00
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Stability in price
Meeting the competition
Survival in the market
D. Sales and Distribution Program
1. Advertising Program
● Objectives:
Monde Nissin is passionate about using their expertise and
technology to create a future of food where taste, health, and the
planet are all satisfied. Simply put, they strive to continuously improve
their products to make them more delicious, nutritious, and better for the
planet.
● Target Audiences:
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The target market of Monde Nissin is about 4-50 years old, with
social classes of A, B, C, D, & E. The variety starts from kids, teens,
working professionals, up to the elders which definitely means the
general public.
.
● Creative Approach:
Monde Nissin approaches their consumers by appealing to Filipino
families. The corporation, through its flagship brand Lucky Me!, launched
the Kainang Pamilya Mahalaga (Family Mealtime Matters) advocacy
which aims to encourage families to gather during dinner and share
meaningful conversations over meals. Beyond their homes, children also
form relationships and seek belongingness within their immediate circles
such as schools. Recognizing the role that the school plays in the values
and habit formation among children, Monde Nissin partners with the
Department of Education in equipping teachers with lesson tools about
healthy family relationship and communication among elementary and
high school students.
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● Other Advertising Aids:
Monde Nissin utilizes Televisions, Social Media, Radios, Posters,
and Billboards throughout their years of operation.
● Media Planning:
● Objectives
Monde Nissin, specifically, their Lucky Me! products known as
Pancit Canton aims to offer sales promotions to announce the launch of
the product to their consumers and to inevitably increase their sales. They
offer many promos to raise awareness and purchase intent of the
consumers for Pancit Canton.
● Types/Frequencies
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Monde Nissin offers Promo bundles, buy one get one (BOGO)
offers, and a number of events offering free taste for their newly made
products. Most notable offers made by Monde Nissin are the packages
they offer with different flavors of Pancit Canton bundled with a merch.
This maintains consumer loyalty because of their very appealing offers
that makes their brand a staple in the Filipino food industry.
● Coverage
Bundle Packs
Buy-One, Take-One Packs
Promotional free tasting and samples
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Mix and Match Packs (with free shipping and discounts from
online stores)
Kasalo Packs
Multi Packs
Community Contests/Events
● Promo Schedule
Monde Nissin is transparent on their scheduling which they share
on their official online website. They regularly hold events and advertise
fun new offers regularly. They announce said events and promos in their
social media accounts and as advertisements in television and radios.
● Promo Casting
Throughout the years, Monde Nissin’s Lucky Me Pancit Canton
has had a number of celebrity partners and endorsers which significantly
improved and boosted their promotional materials in the Philippines. Most
notable celebrities that contributed to Luck Me! Pancit Canton’s growth
are John Lloyd Cruz, Bea Alonzo, Luis and Edu Manzano, Jeremy
Sancebuche (also known as Mimiyuuuh), Sharon Cuneta, and other
multiple commercial models.
Objective
Monde Nissin strives to establish their brand as “for the people”.
They aim to become, as they already are, the number 1 food brand in the
Philippines. They also plan to sustain their innovation and consumer
research to address environmental issues that they are facing while
maintaining their brand image.
Strategies
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Giving relief to populations at risk from natural disasters and other
calamities that affect Filipino communities in the Philippines is one of
their initiatives. Another PR strategy they have is promoting their brand as
a brand that practices “Sustainable solutions for food security”. They also
create an inclusive and fair work environment where their employees can
feel empowered and will have sustainable lives.
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PR materials to be used:
PR materials that Monde Nissin commonly uses are:
Social Media
Community Outreaches
Business Events
Mainstream Media Exposure
Sponsorships, Partnerships, and Investing programs
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Schedule
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VI. Investment Plans
Facebook 20 53.86
Instagram 20 40.11
Google+ 20 114.55
Youtube 20 17.19
Traditional Advertising
Posters 6 6,750.00
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Consumer Research 5 2,000.00
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To understand the profitability of this marketing plan, let’s first look at the
Consolidated Profit & Loss (P&L) report of Monde Nissin Philippines.
Consolidating Profit & Loss (P&L) reports are considered essential year-
end reports and are used by CFOs and Group Controllers to analyze
consolidated financial results. A key functionality in this type of report displays
subsidiaries or divisions along with intercompany eliminations in the columns.
The data above shows that the revenue in the quarter 1 of 2022 increased
by 7% compared to 2021. It shows that the gross profit have decreased by 4%
while net income have decreased by 17% due to the increase of cost of goods
sold and operating expenses. The losses incurred in the 1 st quarter is also
because of continuing inflationary environment and increase advertising and
promotion investments.
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Moving on, let’s go to their sales/revenue projection. So, from 2018 to
2021, it’s a positive growth for us in the revenue. Although, Monde Nissin is a
new IPO company, it has been around for 40 years already. It is also expected to
have a of 3% growth throughout the following years.
Sales/Revenue Forecast
Going into the net income. This one tells us a different story, it really
grown so high especially in 2019 although the revenue growth only has 3%
growth in each year but the net income in 2019 went up so high. This is because
the net income margin growth went up quite a bit even in pandemic. However,
the reported net income in 2021 declined to Php3.2B primarily due to one-off
items related Qourn convertible notes and the IPO related expenses.
6,000
4,000
VIII. Evaluation of Results
2,000
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
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Last but not least, with regard to the evolution of the income statement, we
anticipate that margins will be able to withstand rising commodity prices and
ongoing investments in our strategic priorities in the upcoming years. As long as
we pursue innovation, improve products and procedures, and invest in our brand
which is Lucky Me Pancit Canton, we will have high sales despite the short-term
difficulties.
In terms of outlook for the full year 2022, we have stability in top and
bottom line performance to meet a single digit growth. Due to seasonality and our
efforts to implement this marketing plan in time for Christmas, we anticipate
positive growth in Q4. And despite the commodity pressures, we will continue to
make an effort to sustain increasing demands for noodles. To maintain long-term
growth, we will also keep up our brand recovery efforts both nationally and
internationally. The SGNA investments and risk reductions will also continue.
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In comparison to other Asian nations, the Philippines' per capita
consumption of noodles still has room to grow in terms of longer-term goals. We
aim to capture growth of Pancit Canton through our strong brand equity and
innovations. To expand the consumption of noodles in the Philippines and create
a window for entering other markets, we believe a healthier category needs to be
developed. By 2023, we will have more technologies in the Philippines to
produce healthier noodles with significantly reduced oil content.
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VIII. Evaluation of Results
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References:
Lucky Me! Emerges as the Filipinos’ Most Chosen Brand. Monde Nissin.
Retrived on September 5, 2022, from
https://ph.mondenissin.com/news/title/lucky-me-emerges-as-the-filipinos-
most-chosen-brand
Second Pass (as of June 10). Scribd. Retrived on September 5, 2022 from
https://www.scribd.com/doc/57827694/Second-Pass-as-of-June-10
BPO sector surpasses revenue, employment targets set for 2022. Business
World. Retrived on September 5, 2022, from
https://www.bworldonline.com/economy/2022/06/08/453713/bpo-sector-
surpasses-revenue-employment-targets-set-for-2022/
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