Marketing Plan : URC’s C2 Cool & Clean

Prepared by:

Muhammad, Al-Rushdee
Dela Cruz, Patricia Eunice
Pascua, Gian Richard
Cortes, Patricia
 Table of Contents

1.0 Historical Background……………………..…………………….… 1

2.0 Marketing Goals and Objectives……………...………………….… 2
2.1 Sales Objectives……………………….………………. 3
2.2 Profit Objectives………………………………………. 4
2.3 Pricing Objectives………………………………....….. 5.
2.4 Product Objectives……………………………………. 6
3.0 Market Analysis……………………………….……………………7
4.0 Environmental Analysis………...........................................……. 9
5.0 Customer Analysis….…………………….………………………. 10
6.0 Competition Analysis …………………………………………...... 11
7.0 S.W.O.T. Analysis……………...………………………………… 13
8.0 Marketing Focus………………..………………………….…...... 15
 Historical Background
.

The main force of URC founder, John Gokongwei, Jr., has always been to establish a

strong industrial base in the Philippines. The age of manufacturing began in the late 1950s and

they first created value through their agro-industrial business, selling commodity goods like

cornstarch. Eventually, they started building strong brands like Jack ‘n Jill, which created a

concrete reputation name in the Philippines and has pleased Filipinos of different generations.

Their products are all produced with high quality ingredients. URC’s coffe brand Great Taste,

introduced the 3-in-1 coffee mix segment that offered a convenient way of coffee preparation.

URC also introduced the Great Taste white coffee product that brought the “coffee shop feel” to

consumers. In 2004, Aside from Great Taste coffee, C2 Green Tea is the first beverage to be

produced by URC. URC interrupted the beverage department when they launched their brand

C2. The first ready to drink tea in the Philippines which was widely accepted by the consumers

because of healthy benefits, taste and affordability and provided consumers a “spa in the bottle”

feel and a healthier alternative to carbonated drinks just as the trend for a healthy living lifestyle

started.

URC is now a growing multinational snack and beverage company adapting to the

changing consumer trends. They are providing to the growing middle class with increasing

disposable income. As more and more consumers become sophisticated with their brand

preferences and consumption they will create value by delivering a premium snacks and drinks

portfolio that is both accessible and convenient.

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 Marketing Goals and Objectives

Universal Robina Corporation (URC) is one of the largest branded food product

companies in the Philippines and has a growing presence in other ASEAN markets. URC’s

legacy has been one of continuing building both a stable company with strong fundamental and,

at the same time a revolutionary business that repeatedly exceeds boundaries of the limitations.

The URC main priority is to accelerate growth momentum and maintain the

competitiveness of brands, we will gradually build up to more ambitious yet achievable goals.

URC values of dynamism, passion to win, integrity, and courage will hold us in good stead. URC

will further strengthen the partnerships with our own people our supplier and customers, the

regulatory bodies and the communities we work in, to renew our buisness practices. Our aim is

to be great at what we do more efficient and sustainable.

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 Sales Objectives

C2 is the brand for URC’s ready-to-drink (RTD) tea products, which leads the market,

commanding an 82% market share in the Philippines and significant presence in Vietnam. C2

remains to be a major brand in the Vietnamese market, whereas energy drink Rong Do enjoys

robust sales. As we become more well known, it is critical for URC's raw and input materials to

be traceable and responsibly sourced that’s why we’re ensuring that we uphold the highest food

safety standards. We intend to expand our presence and further look for opportunities in the

markets where we operate. On a global scale nothing is more powerful than social media to reach

a wide audience. For campaigns with micro influencers in social media sites would be the

appropriate place for sharing industry global marketing news, especially involving C2 products.

Twitter marketing can be effective. Paid campaigns can create good reach, even YouTube videos

can be shared effectively to reach a large audience. All major consumer products marketed

globally have good social media presence. Events and promotions like sports and entertainment

events are the best venues for promoting C2 products

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 Profit Objectives

With the tax reform program implemented in the Philippines, especially excise taxation

impose on sweetened drinks, we need to be more observant and take charge in navigating the

situation by checking inflation as much as possible so we preserve margins.

URC will continue to fast track transformation programs in the business that will have

improvements in distribution and supply chain capabilities. These programs will enable the

organization to execute better starting in 2019 with the objective of bringing back the

business to growth and to have better clarity on where the opportunities are and simplify our

financial portfolio to provide more focus on hero SKUs which provide the highest return to

the business. On the international business, we will continue to look for opportunities to

further add scale in the markets where we operate.

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 Product Objectives

As the emerging trends in health and wellness in beverages are becoming more evident,

our innovation team will be developing more beverage products that are geared toward

functionality such as better hydration, vitamin fortification, and reduced sugar content. we also

take care to provide just the right portioning to satisfy our customer’s cravings and energy intake,

particularly as a many of our loyal customers are children and teenagers. The World Health

Organization has directly linked increasing rates of overweight and obese children to the larger

portion sizes in food and beverage products in supermarkets, restaurants, and homes. We do our

part by expanding the C2 Cool and Clean brand via a line of ready to drink tea that brings

together the benefits of Moringa and Licorice which aim to boost the immune system of its

consumers, limiting our portion sizes based on the recommended caloric and nutritional intake.

This allows us to offer our C2 Cool and Clean products in not only in guilt-free size, but also at

better price points.

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 Pricing Objectives

The strong value proposition of our brands enables us to price higher than our

competitors in the branded consumer foods, as we are the price leaders in the categories where

we are market leaders. Our customers are very loyal, particularly in the categories where we are

the number one player such as in snacks, candies, chocolates, and ready to drink tea in the

Philippines and in Vietnam. C2 Cool and Clean products are offered in (6) different flavors:

Kiwi-Strawberry, Passion Fruit, Tropical, Pineapple-Orange, Apple and Lemon which will come

in three (3) pack sizes: 230 ml, 355 ml and 1L. The following pack sizes will be sold at

suggested retail prices of P12.95, P19.95 and P55.95, respectively. Face up to the competition:

today’s markets are characterized by intense competition and companies set and modify their

pricing policies so as to respond to their competitors. Many companies use price as a powerful

tool to react to the level and strength of competition.

Signal quality: With some of our premium ingredients equivalalent to increase in pricing

which create a positive image in customers' minds that your product is superior to that offered by

close competitors

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 Market Analysis

The tea industry in the Philippines has increased its market volume in the recent years as

the trend for healthy lifestyle gain popularity and support from majority of the Philippine

population. According to Euromonitor, companies of the food and beverage category responsible

for the innovations of mature and dynamic tea types continue to lead the market with a computed

25% value share of the overall tea industry for the year 2017. The success can be a factor to the

increasing awareness of society regarding the following types of tea: black, fruit, herbal and

instant, as well as the extensive distribution of the different tea brands in both off-trade and on-

trade channels. The Ready-to-Drink (RTD) industry in the Philippines was relatively

underdeveloped back in 2004. Consumers mostly purchased carbonated soft drinks, which

dominated store shelves. Also, at that time, the still or non-carbonated beverages comprise only a

small portion of the beverage market. However, the only brands dominating the RTD tea market

were Nestea and Lipton but these brands were quite pricy for regular consumption. In that same

year, the URC launched a new product, C2 Cool & Clean.

Noticing the profitability of noncarbonated drinks brought forth many competitions

adopting the same PET and similar pricing as the URC’s C2. In 2010, the total RTD Tea industry

was valued at 551.9 million pesos, with the various competitors producing a total of 487,323,943

bottles of tea annually. However, C2 is still considered as the market leader. Since the

introduction of the C2 in the market in 2004, the RTD tea market enjoyed a steady volume

growth.

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 Another particular trend that highly influenced consumer behavior is climate change. In

reality, Filipinos are so used to the tropical climate yet, the unusually high temperatures in 2010

made consumers look for cold and thirst quenching beverages in efforts to relieve themselves

from the extreme discomfort from the scorching heat. The RTD tea beverages benefited from the

situation as these products were perceived as refreshing drinks. In addition, the health and

wellness trend again took into effect as it further improved demand due to the bias that ready to

drink tea is a healthier alternative compared to carbonated drinks, which were formerly the

common thirts quenchers on a warm day among locals.

For the past three to five years, tea manufacturers have majorly capitalized on the health

benefits of tea in order to generate demand from the public. Such a value trend is expected to

alter the beverage preferences of Filipinos, particularly middle and high-income consumers by

the mere fact that the essential nutrients found in it have been strongly highlighted such that they

are known to be great agents in strengthening the immune system, thus, their ability to fight

common illnesses. Consequently, demand for healthier alternatives is therefore expected to

increase over the forecast period, from which ready to drink tea products will strongly benefit.

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 Environmental Analysis

With the tax reform program implemented in the Philippines, especially excise taxation

impose on sweetened drinks, we need to be more observant and take charge in navigating the

situation by checking inflation as much as possible so we preserve margins. Also the effects

of climate change to our crops and our food systems, all have financial implications. We

recognize that these risks are linked and may have an impact on some aspects of URC’s

business. The Philippines has experienced a number of major natural catastrophes over the

years, including typhoons, droughts, volcanic eruptions, and earthquakes. Severe weather

conditions may affect our sugar cane and green tea farming operations due to reduce

availability of sugar canes and green tea and in general affect our company’s ability to obtain

raw materials to produce our products and might give disruptions in the material expenses.

As natural catastrophr spikes, the immune system becomes weaker becomes freagile to fit

an active lifestyle. Philippines, with its rapidly increasing heat weather is not such a

comfortable place to be. It’s natural to look for a drink to satisfy your thirst at the same time

can help immune systems

Result in this, demand for refreshing beverages significantly boosts during the months of

March, April and May, summer months while the rest of the year, the demand decreases

partially yet remains persistent.

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 Younger customers shop at convenience stores as they prefer to buy these beverages

chilled and ready for consumption. Presenting this we identify who really needs the benefits

of C2 products.

Customer Analysis

 Demographic: The product would be for people fifteen (15) to thirty-four (34)

years which are either undergraduates or employed individuals.

 Geographical: these people are known to live in the dynamic urban and

metropolitan areas as Manila, Makati, Muntinlupa and Cavite.

 Psychographic: these people are leading busy and active lifestyles. For the

students who are burden with the responsibilities of school works. For the

employed, who are focus is maintaining their work efficiency in spite of the busy

environment and the responsibilities associated with having a family.

 Behavioral: People who have enjoyed drinking the product as part of their

lifestyle, may it be while having a meal, or simply when thirst takes its toll.

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 Competition Analysis

Coca-Cola’s Real Leaf

Strengths

 The best brand in the world in terms of market value

 World’s largest market share in beverage
 Strong marketing and advertising
 Customer Loyalty
 Corporate Social Responsibility

Weaknesses

 Significant focus in carbonated drinks

 Undiversified product portfolio
 Known as a poor provider of the healthy lifestyle that the consumers wants as opposed to
URC products which is known for offering ready to drink tea such as C2

Pepsi Co.’s Lipton Tea

Strengths

 They have worldwide recognition

 Nationwide presence and dominance has given them enough fiscal power to secure long
term growths for potential segments and the ability to support those trapped in
troublesome markets
 They cover carbonated drinks and non-carbonated drinks that’s why they have
advanatage of having more various products than other companies.

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Weaknesses

 Pepsi has always been known for their cola and other carbonated drinks such as Mountain
Dew and Mirinda.
 Also known as a poor provider of the healthy lifestyle that the consumers wants as
opposed to URC products which is known for offering ready to drink tea such as C2

Nestle’s Nestea Green Tea

Strengths

 Offers one of the widest portfolio of food and brewery products in the industry
 New and redesigned products every year, strengthening firm’s competitive advantage
 Distribution channels and geographic presence
 Successful parnerships and acquiring other companies in order to grow and maintain its
leadership in the industry.

Weaknesses

 Returns of many products from trade due to poor quality and food contamination.

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 S.W.O.T. Analysis

Strength:

 Consistent Quality. We consistently produce high quality products with high quality
ingredients
 Concrete Reputation. URC is one of the well known company in snacks and beverages
industry
 The management team such as the top executives, branch managers, and others are
responsible for the day-to-day operations and success of the company

Weakness

 Sudden and unexpected increase in demand, which will cause extreme supply shortages
for commodities that will result in major price increases.
 Most our ingredients came from local farmers. Unfortunately, farmers face many
challenges because of poverty. They do not have adequate infrastructure, lack of the
educational opportunities and have only little investment in farming.
 People's tastes are changing constantly as they become more aware of the health hazards
of eating

Opportunities

 URC buy produce, meat and other ingredients locally, providing a boost to agricultural
economies.

 Health and Wellness Trend. Health consciousness is growing such people prefer to
consume products with additional health benefits.
 URC pays higher hourly wages than smaller snack and beverages company. This
provides an opportunity to attract more experienced and qualified job applicants,
subsequently boosting product and service quality.

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  Growth of the RTD Tea Industry. The industry is said to be growing further in the
coming years

Threats

• Using a wide range of fresh, organic ingredients can also expose fast to a higher risk of
ingredient spoilage and waste, pushing costs up even higher.

• Trend towards fresh healthy foods that might affect other URC such as chips and cakes.

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 Marketing Focus

To begin, the overall product strategy is to explicitly enforce the product’s

objective, mainly to educate consumers about the importance of having a strong body

despite the busy lifestyle so as to avoid certain illnesses that arise from having a weak

immune system.

There are people out there who lead such demanding lifestyles and consequently,

are highly prone to stress inducing fatigue, thereby opening them to the risk of being

infected by the common illnesses associated with having a weak immune system. In

connection, they are in need of something that would aid them in coping with all the

pressures and demands and in effect, would grant them the privilege of a consistently

strong immune system at all times.

C2 Cool and Clean products are proposed at a price that the targeted consumers are

willing and able to pay, thereby focusing on the ultimate goal of grabbing the market

shares of other identified competitors and dominating the RTD tea industry. As a product

that offers more than the detoxifying effects competitor, its price is needed to be of higher

level, all for the more-for-more positioning it has – that more value can be expected from

a good with high value. 1L of C2 vs Nestea’s real leaf is cheaper by 7% or PHP 1.75. C2

would have retail prices of P12.95 per 230 ml, P19.95 per 355 ml and P 55.95 per liter.

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C2, being part of most Filipino’s, make it more affordable with its 1 Liter and 1.5 liter

where you can get a value for your money.

To maximize the distribution of C2 products, it would be the expansion of the

product to metropolitan districts. The insertions would be prioritized for the leading

groceries and supermarkets to increase sales volume, convenience stores to push for the

purchase of on-the-go consumers and drug stores to promote the health awareness value

contained within the product’s name.

Partnering with social media influencers to reach and establish trusted relationship

with the consumers and to allocate further development efforts. Nearby provincial

districts that have their own industrial line of groceries, supermarkets, convenience

stores. Prioritizing in urban areas to receive innovative developments even for the minor

sales points to expand even larger the distribution channels.

All retailers assumed a permanent shelf space for C2 Cool and Clean. By this

time, the presumption that the product has already penetrated the market deeply, then

what’s left for the company to do is to project the strength even more through the years to

come.

What’s important is to address the actual purchase and buying incentive of the

market through promotional efforts all for the fact that they have the capacity to increase

brand awareness, brand consciousness, brand purchase, and ultimately, brand preference.

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 The print advertisements are for the purpose of sparking the market attention and

curiosity. Billboards to be placed in main highways such as C5 and EDSA, it has the

advantage of being noticed easily by commuters, motorist and drivers.

The most influential would be use of TV commercials, as well as radio. To

expand what C2 Cool and Clean is all about and how it can do the job perfectly and

conveniently. Partnering with celebrities who are well known for their active lifestyle and

high standards. Deliverance of the message through TV advertising will not only trigger

awareness, but also bring the education of the people regarding the information about

themselves as beings who are prone to sickness, the world around them, and how to

protect themselves from threats.

Overall, C2 Cool and Clean products could be perceived as a product for striking

a balance for all demanding aspects surrounding the typical Filipino life. Because of the

reality that some people actually fall to the common illnesses threatening the active

lifestyle, then there is an inherent need for protection. All in one package, C2 Cool and

Clean is the easiest, most convenient and best tasting way to keep a healthy. It is the

drink to be looked for in groceries, supermarkets, convenience stores, cafeterias, vending

machines, and household refrigerators nationwide.

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