BA 170: Jufran Marketing Proposal.docx

NutriAsia Inc. NutriAsia Inc. is the Philippines foremost producer, marketer, and distributor of quality sauces and condiments. [footnoteRef:1] Within the sauces and condiments industry, multinationals Unilever Philippines Inc and Ajinomoto Philippines Inc. hold the top spot, but local players UFC Philippines and Southeast Asia Foods Inc. (Datu Puti) both subsidiaries of NutriAsia continue to be among the more dynamic players in terms of increasing availability and marketing efforts. As of 2013, NutriAsia holds 9.5% of company shares within the industry.[footnoteRef:2] [1: NutriAsia Inc. - About. Retrieved from http://www.nutriasia.com/about, 13 September 2014] [2: Sauces, Dressings and Condiments in the Philippines. Retrieved from Euromonitor.com, March 2014]

Jufran Jufran is a separate product line of table sauces under NutriAsias subsidiary, UFC Philippines, Inc. The brand holds the top 13th spot with the highest brand share in the Philippines in terms of percentage retail value at 1.8% in 2011, 1.9% in 2012 and 1.8% in 2013.2Product: Jufran products include sweet chili sauce, banana ketchup and hot sauce. Jufran Sweet Chili Sauce offers a distinctive sweet-spicy blend for an Asian-style meal, while Jufran Banana Sauce, both in regular and hot and spicy variants, is thick and sweet and has a mild taste not much like banana. These sauces are available in glass and PVC plastic bottles but are not yet currently offered in more affordable and lightweight pouches.Price: Caters to mid to low income households; Jufran banana ketchup and hot chili sauce (retail price of P 27) are priced relatively the same as UFC banana catsup, while Jufran sweet chili is priced relatively higher (retail price of P 53) than ordinary tomato and banana catsups Place: Philippines, JakartaPromotions: Weak promotional campaigns; last TVC of Jufran was dated back in 2008 when it introduced the Sweet Chili sauce.

Industry / Consumer Behaviors and Trends Sauces and condiments as household staples. Sauces, dressings and condiments are expected to remain a staple in Filipino households which continues to post positive volume growth forecasts. Fastest growth segment in terms of volume and value. Table sauces experienced the fastest growth of 3% in volume and 6% in current value terms in 2013 to reach P25.0 billion. Packaging innovations. Towards 2013, theres an apparent increase in dynamism in terms of packaging innovations. This included increasing availability of different products in more affordable and lightweight pouches. This improved affordability not only caused consumers to increasingly able to afford these products, they also buy them more frequently.2 Neighbourhood sari-sari stores as significant distribution medium. The GINI index in the Philippines, last measured at 43.1 in 2009, shows a quite high inequality distribution of income[footnoteRef:3]. Most lower-income consumers do not have access to supermarkets instead they purchase small quantities of food from neighbourhood sari-sari stores.[footnoteRef:4] [3: GINI Index. Retrieved from Data.worldbank.org, 13 September 2014] [4: Newly emerging health and wellness markets: the Philippines. Retrieved from Euromonitor.com, 23 Feb 2010]

Key Issues and Opportunities During the first quarter of 2013, the Philippine economy reported higher than expected GDP growth of 8% and is projected to grow by 6% for the whole year supporting the moderate growth of packaged goods. With the overall improvement of the Filipino economy, sauces, dressings and condiments will likely continue to be mainstays on the grocery lists of average Filipino families. Sales of table sauces in terms of volume are forecasted to grow at a rate of 13.5% from 2013-2018. Table sauces and dips are seen to record the fastest value compound annual growth rate (CAGR). This is largely due to creative strategies employed for table sauces and the increasing purchasing power linked to the rising popularity of dips. With the rise in availability of smaller pouch packaging presentations, there has been a slight shift favouring packaged volumes instead of those sold loose in wet markets. More convenient and more affordable pack types, may also likely increase distribution through retail channels targeted to lower-income households including sari-sari stores, which provide the main supply for many neighbourhoods. Suitable strategies for targeting lower-income consumers may include offering products in tiny packages destined for distribution in small local shops, and/or producing large containers for the supermarket/hypermarket channel, targeting the owners of sari-sari stores.4

Group #6: Cerrada, Corales, Egam, Estonanto, Laco, Pilien, Rillera, TeasdaleBA 170 WFX, September 19, 2014