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Fit N’ Right
The Live Fit, Live Right Marketing Campaign
Group 3 – Digital Marketing
Rhomina Amorosa | Inky Gallego | Freddie Suliva
+
Presentation Outline
 Executive Summary
 Macro-Environment
 Micro-Environment
 SWOT
 Objectives and Goals
 Decision on the 4 Ps (Product, Place, Price, Promotion)
 Integrated Marketing Communications Plan
 Gantt Chart of the Execution Plan
 Current and Proposed Profit & Loss
+
Del Monte Philippines, Inc. (DMPI) is a leading producer of pineapple and
other food products. The company markets over 100 processed food and
beverage variants, including pineapple solids (slices, tidbits, chunks), tropical
mixes, pineapple juice and mixed drinks, tomato-based products (tomato
sauce, catsup, spaghetti sauce), condiments, meal mixes, and pasta
(spaghetti, macaroni).
Del Monte is attempting to strengthen its position in health and wellness
beverages in the Philippines by investing in consumption-building initiatives
aimed at increasing household penetration of its key brands. This will include
investment in expanding its distribution network and in securing a more
impactful point-of-sale presence for its products. The company will also seek to
improve its position in health and wellness 100% juice via a strategic co-
branding and distribution partnership with Tipco 100%.
Executive Summary
+ COMPANY
BRAND
+
The fast rise of the brand was its due to its successful brand communications campaign as a weight
loss product. The L-Carnitine Technology that was claimed to help the consumer lose weight became
the ‘buzzword’ for some time. It even earned a brand perception of being a ‘miracle drink.’
It was positioned as a Natural Health Drink and its distribution strategy was basically lining itself up with
another fast rising brand of URC --- the C2 (Clean and Cool) Drink. But when C2 introduced its flanker
product C2 Envidia. The company claims that C2 Envidia has twice the slimming power compared to
other fat-burning drinks that only contain L-Carnitine because it additionally has Epigallocatechin gallate
or EGCG. According to them, L-Carnitine helps burn fats while EGCG acts as an antioxidant that
speeds up metabolism.
Another attack on the Fit N Right Brand was its sugar content that ran opposite its claims of being a
weight loss product. (2-1-0 Campaign).
Feeling the pressure, Del Monte was forced to ‘reinvent’ itself. First, it added another component in its
weight loss technology --- the Green Coffee Extract that is clinically proven to block fat on top of its L-
Carnitine. Second, it lessened the sugar component that drastically changed the taste of the product.
Reacting too late to C2’s campaign and consumers losing its interest due to change in taste, it has lost
its positioning in the market. It is now merely positioned as a juice drink with health benefits.
Story of Fit N Right
+
Based on occasion consumption
– Tropicana (Pepsi Cola)
– Minute Maid (Coca Cola)
Base on Euromonitor – Formulated/Fortified study
– Cobra
– Royal Tru Orange
– Gatorade
Direct Competitors
+
Base on Euromonitor - FF / NH / B4U study Naturally Healthy
Beverages
–C2
–Real Leaf
–Milo
• Better for You Beverages
–Coke Light
–Coke Zero
Indirect Competitors
+
The product is described as a health and wellness beverage
fortified with vitamin C, and offers Naturally Healthy (NH)
variants. It has other ingredients such as Reducol (plant
sterols), calcium, fibre, GCE, L-carnitine and vitamins A, C and
E to strengthen its health drink credibility
Product Description
+
 You drink 1 bottle (330ml) per day and it helps reduce fat by
increasing metabolism, effectively blocking calories to prevent
accumulation of fats. L-Carnitine and GCE, which helps burn
and block fat respectively assists you to reach a fitter lifestyle.
 The effectiveness of Fit N Right is triggered by an active and
right lifestyle. Aside from its weight loss benefits, it also
contains other vitamins and minerals that people normally get
from fruits in a wonderful flavorsome drink.
Product Use
+
 It is available in a 330ml bottle with Pineapple (43cal),
Pineapple and Orange (27cal), Four Seasons (25cal), Orange
(29 cal), Apple (37 cal), Watermelon (29 cal) flavors and is also
available in 1 Liter.
 There’s also a new variant, Fit n Right Active in a 500ml bottle.
It is a 2-in-1 Isotonic Drink with Electrolytes to rehydrate and L-
Carnitine. Available in Mixed Berries and Blue Berry Grape
flavors but we won’t tackle this for this discussion.
Product Portfolio, variants
+
 The product is in the mature life cycle stage and has plateaued
with market share stagnant at 12.8% for the past 3 years
between 2013 up to 2015. From a top 3 brand in 2011, it is in
danger to decline. At this point, it is a brand that contributes up
to 50% of the revenue in the beverage divison of Del Monte
however it is now a cash cow i.e. high market share, low
growth industry with the intent to use profits to develop more
products for the division.
Product (Brand) Life Cycle
+
 To bring back the relevance into the Del
Monte Fit N Right Brand and regain its top of
mind positioning as the juice drink that helps
the consumer lose body fat, increase energy,
and improve overall health.
Marketing Challenge
+
Macro Environment
+
Environmental Analysis
– GDP grew significantly in the latest quarter, making the Philippines
the fastest growing economy in the region
– FMCG In-Home also performed well in both annual and quarterly
reads. Real GDP Growth Rate ended at 6.6% last Q4 of 2016.
Inflation rate is projected to be at 3% in Q3 of 2017
– Unemployment rate ended at 4.7% last Q4 of 2016 and on its steady
decline in at least the last five years. Unemployment rates for the past
2 to 5 years have a direct impact on sales and the overall customer
base of any industry. Generally, threats due to environmental
conditions (like unemployment, layoffs, recession, high interest rates)
reduce consumer activity.
+
Competitive forces
– The competition in the Fast Moving Consumer Goods
(FMCG) industry is very strong or fierce on both local and
regional basis.
– Currently Minute Maid holds a dominant market share of
approximately 36 percent; however, the FF segment is
growing rapidly.
– The 12 percent market share held by Fit N Right is divided
among many different firms.
– As trend for health drinks become more popular, additional
competition is expected to enter the market.
+
Economic forces
– Nationwide, many companies have reduced their overall
promotion budgets as they face the need to cut expenses. However,
most of these reductions have occurred in the budgets for mass media
advertising (television, magazines, and newspapers). While overall
promotion budgets are shrinking, many companies are diverting a
larger percentage of their budgets to sales promotion and specialty
advertising. This trend is expected to continue as a weak, slow growth
economy forces most companies to focus more on the “value” they
receive from their promotion pesos. Fit N Right, provides this value.
+
Technological Forces
- Internet, social media era
- Technological development can impact the production and
distribution
The current technological innovations are not important enough to
impact the beverage/juice category. However, this sector requires
that the brands have a real presence in social media because of
the youngness of the consumers: this is a “must have” in this
market
+
Sociocultural forces
– In today’s society, consumers have less time for work or leisure.
The hallmarks of today’s successful products are convenience and
ease of use. In short, if the product does not save time and is not
easy to use, consumers will simply ignore it. Health and fitness is a
growing trend that fit this consumer need quite well.
– The rising health consciousness of Philippine consumer has
expanded the demand for juice in the country. The health and
wellness trend in the Philippines has encouraged the consumers to
increase juice intake.
+
Demographics
 Population : as of 2015 Pop Cen is 100.98 Million with annual population
growth of 1.72%
 Of the country’s 18 administrative regions NCR is second with 12.88 Mil
population
 Out of 33 HUCs Quezon City has 2.94 Mil, Manila has 1.78 Mil and
Caloocan has 1.58 Mil.
 For the BPO industry (most dynamic and fastest sectors in the
Philippines) as target market the total population is roughly 1 Mil employees
as of 2016 with an annual growth rate of 20%
 Most of the target consumer group lives in the CBD’s and nearby cities
in the NCR region.
 The product is geared towards late 20’s and older age group, or working
class working in the CBD’s
+
Growth Rates
– FMCG growth cuts across all mega-categories (1. Food, 2. Beverage, 3.
Personal Care and 4. Household Care) with Non-Food growing faster than
national average; with Shampoo, Laundry Powder and Laundry bar being
among the top 10 categories.
– Under Beverage, the category in which Fit N Right belongs to are sub-
categories or sections such as Beer, Water, Liquid Juice, Softdrinks, Instant
Coffee Powder, Powder Choco, Powder Juice, etc.
– Beverage contributes to approximately 21% of the total FMCG revenue of
679 Billion in 2016, with Liquid Juice posting 10% change or growth from last
year.
+
– FMCG managed to sustain growth, posting +9% on account of bigger cash
outlay; fastest growth coming from the Non-Food sector.
– Spending momentum is sustained coming from a double digit growth of 16%
in December 2016 while average price is now on a decline.
– FMCG Growth is mainly driven by increased consumption as Filipino homes
buy more per shopping trip on average.
– Growth is also sustained across regions; fastest coming from NCR at 13%.
Industry Performance
+
– The same is true across eco-classes with upper-class homes
(Class ABC at 11%) outpacing growth of lower Sections.
– Increased spending seen across all regions as average price
decreases.
– All channels (Sari-Sari Stores, Market Stalls, Convenience
Stores, Hyper/Super Market, Drug Stores, Groceries, Direct Sales,
Others) are on an uptrend, with fastest growth coming from Direct
Sales and Convenience Stores.
– Traditional Trade (Sari-Sari) remains to be the biggest channel
for FMCG in-home at 44% of the total FMCG revenue.
Industry Performance
+
New
Entrants
BuyersSuppliers
Substitutes
Industry
Competit
ors
Strong
Intensity
of Rivalry
Bargaining
Power of
Buyers
Bargaining Power
of Suppliers
Threat of New Entrants
Threat of Substitutes
Strong
StrongWeak
Extreme
ly
Strong
Porter’s 5 Forces
+
Micro Environment
+
– Del Monte began operating in the Philippines in 1926, initially as a
pineapple cannery under the name Philippine Packing Corporation.
– In December 2005, NutriAsia Pacific Ltd bought a 50% stake in DMPL, and
as of 2015 remained the major shareholder in the holding company with a stake
of 67%. DMPL started trading publicly in the Philippines in June 2013.
Company Overview
+
– The majority of health and wellness beverages products offered
by Del Monte Philippines Inc are fortified, particularly with vitamin C, but it also
offers Naturally Healthy (NH) variants. Other ingredients added to its products to
improve their health credentials include Reducol (plant sterols), calcium, fibre,
GCE, L-carnitine and vitamins A, C and E.
Company Overview
+
Company Structure
+
Top Management seems flat
– COO does most of the decision making
– CEO approves business critical / strategic decisions
Company has won numerous awards
– Governance
– People
– Commercial
– Sustainability
Organizational Structure
+
Vision
– NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY.
Mission
– TO BRING TO LIFE HEALTH AND WELLNESS
Vision and Mission
+
Locations
– Plantation
– Cannery
– Manila Office
– PET Plant
Quality & Excellence
– People are motivated to work hard when everyone strives for
excellence.
– The company has a achieved a lot of industry certifications that only
prove the high-quality production the Del Monte brand offers
Location and Environment
+
– Culinary
– Fruits
– Food Services
– Beverages
• 100% Juice
– Life gets better when you're strong from within! Drink to better
health with Del Monte 100% Juices - fortified with essential
nutrients to help you live life to the fullest.
• Juice Drinks
– Drink to better health and quench your thirst with the
delicious blends of fresh fruits from Del Monte Juices!
Products
+
– Beverage makes 28% (ave) gross revenue and also gross profit
– Increasing Beverage sales since 2014
– 2016 biggest sales revenue (Php 132M)
– Formulated/Fortified drinks makes about 7% of the sales
Sales Performance
+
– Beverage growth rate is at 6% (ave) since 2014
– Maintain top 5 market share since 2013
Growth Rates
+
Business Strategy
+
Business Model
Industry and
Market
Marketing
Drives
Consumer
Insights
● FMCG
● Retail
● Wholesale
● Brand
Driven
● Product
Driven
● 1st Moment
of Truth
● 2nd Moment
Truth
Consumption Occasion
+
SWOT Analysis
+
SWOT Analysis
SWOT STRATEGY + DIRECTION 4 P’S
WO EXPAND THE MARKET SEGMENT PRODUCT
WT MAINTAIN PREMIUM PRICING AS
PROTECTION
PRICING
SO EXPAND DISTRIBUTION CHANNELS PLACEMENT
SW/ST/W
O
EXPAND MARKETING CHANNELS TO DELIVER
BRAND PROMISE MORE INTERACTIVELY
PROMOTIONS
+
Goals and Objectives
+
Goals
•To reinforce the public that Fit N Right is
the best drink to complement your meals
•To be the no. 1 brand of choice in the
Formulated/Fortified Drinks category
•To be the no. 1 brand of choice in the
Alternative Beverage Category
(Formulated/Fortified, Naturally Healthy,
and Better for You)
+
Objectives
Short Term (1 – 2 years)
– Branding
– Refocus Fit N’ Right as a healthy drink that
blocks fat that’s best taken with your meals
– Launch “LIVE FIT, LIVE RIGHT Campaign”
(LFLR) to Young Professionals (who want to get
into shape)
– Market Share: Hit 30M (additional) in Sales by
2017
– Profitability - +20% gross profit margin (maintain)
+
Objectives
Medium Term (3 – 5 years)
–Branding: Expand (LFLR Campaign) to Teens
and Families (Active Lifestyle)
–Market Share: Make Fit N Right the brand of
choice for health conscious individuals (for
people who want to get in shape or keep fit) in
2020 in terms of Sales (FF Category).
–Profitability: +30% gross profit margin (increase)
+
Objectives
Long Term (5 years and up)
–Branding: Maintain (LFLR Campaign) to
Teens and Families (Active Lifestyle)
–Market Share: Make Fit N Right the no. 1
alternative beverage for individuals in 2025 in
terms of Market Share (FF, NH, and B4U
Categories).
–Profitability: +30% gross profit margin
(maintain)
+
Decisions on the 4 Ps of
Marketing
+ PRODUCT DECISIONS
PRODUCT DECISION CURRENT PROPOSED
SEGMENTATION Target Class A-
B
Female (30’s to
50’s)
Expand Target Class from A-B to
include C & D
Expand Gender to Male and Age
Group from 20’s to 50’s
TARGETING People who
want to lose
weight.
People who want to lose weight and
keep it.
People who want to have more energy
and vitality.
People who want to start and live an
active lifestyle.
POSITIONING Weight Loss
Product
Weight Loss Product
Active Lifestyle Drink
+ PRODUCT DECISIONS
PRODUCT DECISION CURRENT PROPOSED
NEW PRODUCT
DEVELOPMENT
PROCESS
New Flavors New Flavors with Added Features and
Benefits (on top of being Weight Loss
Product)
PLC / BCG Mature
(Decline) and
Cash Cow
Reintroduction (Extension) and Star
ANSOFF Product
Development
Market Penetration
Product Development
Market Development
+ PRICE DECISIONS
PRICING DECISION CURRENT PROPOSED
PRICING OBJECTIVE Maximize Sales
Product Quality
Leadership
Maintain
PRICING STRATEGY Premium
Pricing
Maintain
Increase Margins to Distribution
Channels based on Volume
Discounting
+ DISTRIBUTION DECISIONS
DISTRIBUTION
DECISION
CURRENT PROPOSED
DISTRIBUTION
OBJECTIVE
Intensive (Mass) Improve Intensive
+ DISTRIBUTION DECISIONS
DISTRIBUTION
DECISION
CURRENT PROPOSED
DISTRIBUTION
STRATEGY
Mass Distribution
through all
traditional retail
and wholesale
channels
Mass Distribution through traditional channels
must include cold storage in order to make sure
that product experience is always optimal.
Placement in ‘Healthy Sections’
Partnership with vending machine companies
in sites to make product more accessible and
increase sales. Current Strategies do not
include vending machines.
Partnership with “pro-Health/pro-Fitness”
establishments (i.e. Gyms, Boxing Studios,
Yoga, GNC, Healthy Options, etc.)
Partnership with Food establishments (i.e.
expand Pineapple Juice partnership with
Jollibee, Food Concessionaires, Mini-stop, 7-
11, Restaurants, etc.)
Partnership with Healthy Planned Meal
providers (i.e. UberEats, etc.)
Partnership with Transportation companies (i.e.
Airlines, Shipping, etc.)
+ PROMOTIONS DECISIONS
PROMOTION
DECISION
CURRENT PROPOSED
PROMOTION
OBJECTIVE
Advertising
(Traditional.
Above The Line)
Advertising (Traditional. Above The Line.
Add-ons)
Events and Experiences
Public Relations
Digital Marketing
+ PROMOTIONS DECISIONS
PROMOTION
DECISION
CURRENT PROPOSED
PROMOTION
STRATEGY
TVC. Radio. And
Print.
TVC. Radio. And Print will be used to
reinforce the integrated campaign.
Advertising will include but not limited to
guerilla marketing.
Events and Experiences will be done in
the context of onsite activations in order to
enhance brand and product experience
focused on the integrated campaign.
Public Relations will be done in the
context of success stories featured during
the integrated campaign.
Digital marketing will be done in the
context of online, social media, and
mobile marketing to reinforce the
integrated campaign.
+
Promise – Drinking
FnR is healthy
weight-loss drink
Differentiation –
FnR helps block fat
Pillars – CGE and L-Carnitine technlogy,
clinically proven
The Filipino
People who
want lose or
maintain their
weight
Pricing – Premium pricing for the Del
Monte quality
Effort – Make FnR
more accessible
during
consumption
occurrence (meal
time)
Risks – Del
Monte product
quality
Value Proposition
+
Primary Target Market
Digital Profile of the Target Market
Regular daily user of the following: Facebook, text,
email, YouTube
Age (limit to 10-year range for
focus)
20 year old and up - working in NCR CBD's - Working
Class
Generation Gen X, Y, Z
Life Stage working class
Socio Economic Class SEC Class ABCD, who wants to get fit
Gender Not gender specific
Race and Culture Asian
Personality Trait
In today’s society, consumers have less time for work
or leisure. The hallmarks of today’s successful
products are convenience and ease of use.
The health and wellness trend in the Philippines has
encouraged the consumers to increase juice intake.
The product aims to target those with "health
conscious" personality trait.
Belief
Healthier living by drinking juice drink with vitamins
and natural juice that offers antioxidants, and with a
low-calorie intake that helps them
maintain their weight.
+
Primary Target Market
Values Gives Importance to Health and Fitness
Attitude
Drink to better health and quench your thirst
with the delicious blends of fresh fruits from
Del Monte Juices!
Lifestyle
Living a sedentary lifestyle - Wants an active
lifestyle but doesn't have time to exercise.
Opinion
Interest Fitness and Health, Quality of Life, Success
Benefits Sought from Product
Fit N’ Right as a healthy drink that blocks fat
that’s best taken with your meals.
Decision Role Initiator, Decider, Buyer, User
Buyer-Readiness Stage
Aware of the product benefits although those
who have tried have either (1) not tried
repeating or (2) tried repeating but still
doubtful of product claims in terms of its being
a weight-loss drink
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Live Fit, Live Right Campaign
• Communications Objectives
Establishing the need to (add) category
• ‘It is not just a your ordinary type of juice.’
Build Brand Awareness
• ‘It is formulated and fortified with Green Coffee Extract (GCE) that is
clinically proven to block fat, and with L-Carnitine that is proven to help
you lose fat.’
Build Brand Attitude
• ‘It refreshes you while helping you lose body fat, gain energy, and
improve overall health.’
Influence Brand Purchase Intention
• Drink it while you eat. It helps you block the fat from your food.’
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Live Fit, Live Right Campaign
• Communications Target Audience
The campaign targets consumers, male and female,
ages 20 to 50 years of age, who work and live in the
CBD area.
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Survey
 124 respondents
 49 Male
 75 Female
 74 drink juice 1x a week
 Preference
 Brand (Del Monte, Tropicana, Minute Maid)
 Price
 Nutrition
 Volume
 Flavor
 90% live/work in the Central Business District
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Live Fit, Live Right CAMPAIGN
• Communication Messages
Combatting Obesity (Emotional)
Weight Loss with the help of GCE and L-Carnitine
(Functional)
Emphasis on Consumption Occasion: Drink Del Monte
Fit N Right with your meals. (Functional)
Start living your life for the better now by LIVING FIT +
LIVING RIGHT by drinking Del Monte Fit N Right today!
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Communications Channels
Company Communications Channels
The campaign is designed and deployed through all
traditional (ATL: TVC, Radio, Print) and non-traditional
channels. Non Traditional Channels include but not
limited to:
Events and Experiences
Promotional Materials in all Partnership Channels
Digital (Mobile and Social Media)
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Communications Channels
Partnership Channels
• Traditional Channels (Supermarkets, Groceries, and
Convenience Stores)
• Placing Product in the ‘Healthy Section’ of Traditional
Channels
• Food Service Partners (Restaurants, Food Courts,
Etc.)
• The campaign is deployed in partnership with fitness
partners that is within the target area.
• Food Delivery Services
• Vending Machine Sites
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Communications Channels
Events and Experiences
• Onsite activation wherein interactive programs are implemented
(e.g. Digital Weighing Machines that measure Total Body Fat
and Visceral Fat)
• Onsite Activation entail a product experience through sampling
and pushing the product purchases
• TAKE THE Del Monte Fit N Right 20/20 Challenge!
• Start living your life for the better now by joining the LIVE FIT.
LIVE RIGHT. Program today!
• Take the Del Monte Fit N Right 20/20 Challenge! And with just
20 minutes in the next 20 days, you will be a fitter and better
you, with Del Monte Fit N Right!
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Communications Channels
Digital Marketing (Mobile and Social Media)
• One main feature of the program is the Del Monte Fit N Right
App that can be freely downloaded. It contains training videos
covering nutrition, exercises, tips and tricks, and positive
psychology.
• Feeds about the campaign and program will be boosted in
Facebook and Instagram.
• Participants will be invited to post their workout sessions via FB
Live and talk about the Del Monte Live Fit Live Right Program.
Prizes await for chosen videos.
• The App will also identify retail stores within the targeted area
that carry the Del Monte Fit N Right.
+ INTEGRATED MARKETING
COMMUNICATIONS PLAN
• Communications Results
Targeted Sales Measurements
• Sales from the stores within the targeted CBD area will also be
monitored.
+
Execution Plan
+
Current and Proposed P & L
+
Current and Proposed P/L
Success Measurement
+
References
http://www.bsp.gov.ph/statistics/spei_pub/Table%2048.pdf
http://www.kantarworldpanel.com/ph/ FMCG_Monitor_-_MAT_March_2016
https://markets.ft.com/data/equities/tearsheet/profile?s=DMPL:PHS
http://www.portal.euromonitor.com
http://edge.pse.com.ph/
http://www.delmontepacific.com/
+
End
Thank You!

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Group 3 digital marketing final group presentation - fit n right

  • 1. + Fit N’ Right The Live Fit, Live Right Marketing Campaign Group 3 – Digital Marketing Rhomina Amorosa | Inky Gallego | Freddie Suliva
  • 2. + Presentation Outline  Executive Summary  Macro-Environment  Micro-Environment  SWOT  Objectives and Goals  Decision on the 4 Ps (Product, Place, Price, Promotion)  Integrated Marketing Communications Plan  Gantt Chart of the Execution Plan  Current and Proposed Profit & Loss
  • 3. + Del Monte Philippines, Inc. (DMPI) is a leading producer of pineapple and other food products. The company markets over 100 processed food and beverage variants, including pineapple solids (slices, tidbits, chunks), tropical mixes, pineapple juice and mixed drinks, tomato-based products (tomato sauce, catsup, spaghetti sauce), condiments, meal mixes, and pasta (spaghetti, macaroni). Del Monte is attempting to strengthen its position in health and wellness beverages in the Philippines by investing in consumption-building initiatives aimed at increasing household penetration of its key brands. This will include investment in expanding its distribution network and in securing a more impactful point-of-sale presence for its products. The company will also seek to improve its position in health and wellness 100% juice via a strategic co- branding and distribution partnership with Tipco 100%. Executive Summary
  • 5. + The fast rise of the brand was its due to its successful brand communications campaign as a weight loss product. The L-Carnitine Technology that was claimed to help the consumer lose weight became the ‘buzzword’ for some time. It even earned a brand perception of being a ‘miracle drink.’ It was positioned as a Natural Health Drink and its distribution strategy was basically lining itself up with another fast rising brand of URC --- the C2 (Clean and Cool) Drink. But when C2 introduced its flanker product C2 Envidia. The company claims that C2 Envidia has twice the slimming power compared to other fat-burning drinks that only contain L-Carnitine because it additionally has Epigallocatechin gallate or EGCG. According to them, L-Carnitine helps burn fats while EGCG acts as an antioxidant that speeds up metabolism. Another attack on the Fit N Right Brand was its sugar content that ran opposite its claims of being a weight loss product. (2-1-0 Campaign). Feeling the pressure, Del Monte was forced to ‘reinvent’ itself. First, it added another component in its weight loss technology --- the Green Coffee Extract that is clinically proven to block fat on top of its L- Carnitine. Second, it lessened the sugar component that drastically changed the taste of the product. Reacting too late to C2’s campaign and consumers losing its interest due to change in taste, it has lost its positioning in the market. It is now merely positioned as a juice drink with health benefits. Story of Fit N Right
  • 6. + Based on occasion consumption – Tropicana (Pepsi Cola) – Minute Maid (Coca Cola) Base on Euromonitor – Formulated/Fortified study – Cobra – Royal Tru Orange – Gatorade Direct Competitors
  • 7. + Base on Euromonitor - FF / NH / B4U study Naturally Healthy Beverages –C2 –Real Leaf –Milo • Better for You Beverages –Coke Light –Coke Zero Indirect Competitors
  • 8. + The product is described as a health and wellness beverage fortified with vitamin C, and offers Naturally Healthy (NH) variants. It has other ingredients such as Reducol (plant sterols), calcium, fibre, GCE, L-carnitine and vitamins A, C and E to strengthen its health drink credibility Product Description
  • 9. +  You drink 1 bottle (330ml) per day and it helps reduce fat by increasing metabolism, effectively blocking calories to prevent accumulation of fats. L-Carnitine and GCE, which helps burn and block fat respectively assists you to reach a fitter lifestyle.  The effectiveness of Fit N Right is triggered by an active and right lifestyle. Aside from its weight loss benefits, it also contains other vitamins and minerals that people normally get from fruits in a wonderful flavorsome drink. Product Use
  • 10. +  It is available in a 330ml bottle with Pineapple (43cal), Pineapple and Orange (27cal), Four Seasons (25cal), Orange (29 cal), Apple (37 cal), Watermelon (29 cal) flavors and is also available in 1 Liter.  There’s also a new variant, Fit n Right Active in a 500ml bottle. It is a 2-in-1 Isotonic Drink with Electrolytes to rehydrate and L- Carnitine. Available in Mixed Berries and Blue Berry Grape flavors but we won’t tackle this for this discussion. Product Portfolio, variants
  • 11. +  The product is in the mature life cycle stage and has plateaued with market share stagnant at 12.8% for the past 3 years between 2013 up to 2015. From a top 3 brand in 2011, it is in danger to decline. At this point, it is a brand that contributes up to 50% of the revenue in the beverage divison of Del Monte however it is now a cash cow i.e. high market share, low growth industry with the intent to use profits to develop more products for the division. Product (Brand) Life Cycle
  • 12. +  To bring back the relevance into the Del Monte Fit N Right Brand and regain its top of mind positioning as the juice drink that helps the consumer lose body fat, increase energy, and improve overall health. Marketing Challenge
  • 14. + Environmental Analysis – GDP grew significantly in the latest quarter, making the Philippines the fastest growing economy in the region – FMCG In-Home also performed well in both annual and quarterly reads. Real GDP Growth Rate ended at 6.6% last Q4 of 2016. Inflation rate is projected to be at 3% in Q3 of 2017 – Unemployment rate ended at 4.7% last Q4 of 2016 and on its steady decline in at least the last five years. Unemployment rates for the past 2 to 5 years have a direct impact on sales and the overall customer base of any industry. Generally, threats due to environmental conditions (like unemployment, layoffs, recession, high interest rates) reduce consumer activity.
  • 15. + Competitive forces – The competition in the Fast Moving Consumer Goods (FMCG) industry is very strong or fierce on both local and regional basis. – Currently Minute Maid holds a dominant market share of approximately 36 percent; however, the FF segment is growing rapidly. – The 12 percent market share held by Fit N Right is divided among many different firms. – As trend for health drinks become more popular, additional competition is expected to enter the market.
  • 16. + Economic forces – Nationwide, many companies have reduced their overall promotion budgets as they face the need to cut expenses. However, most of these reductions have occurred in the budgets for mass media advertising (television, magazines, and newspapers). While overall promotion budgets are shrinking, many companies are diverting a larger percentage of their budgets to sales promotion and specialty advertising. This trend is expected to continue as a weak, slow growth economy forces most companies to focus more on the “value” they receive from their promotion pesos. Fit N Right, provides this value.
  • 17. + Technological Forces - Internet, social media era - Technological development can impact the production and distribution The current technological innovations are not important enough to impact the beverage/juice category. However, this sector requires that the brands have a real presence in social media because of the youngness of the consumers: this is a “must have” in this market
  • 18. + Sociocultural forces – In today’s society, consumers have less time for work or leisure. The hallmarks of today’s successful products are convenience and ease of use. In short, if the product does not save time and is not easy to use, consumers will simply ignore it. Health and fitness is a growing trend that fit this consumer need quite well. – The rising health consciousness of Philippine consumer has expanded the demand for juice in the country. The health and wellness trend in the Philippines has encouraged the consumers to increase juice intake.
  • 19. + Demographics  Population : as of 2015 Pop Cen is 100.98 Million with annual population growth of 1.72%  Of the country’s 18 administrative regions NCR is second with 12.88 Mil population  Out of 33 HUCs Quezon City has 2.94 Mil, Manila has 1.78 Mil and Caloocan has 1.58 Mil.  For the BPO industry (most dynamic and fastest sectors in the Philippines) as target market the total population is roughly 1 Mil employees as of 2016 with an annual growth rate of 20%  Most of the target consumer group lives in the CBD’s and nearby cities in the NCR region.  The product is geared towards late 20’s and older age group, or working class working in the CBD’s
  • 20. + Growth Rates – FMCG growth cuts across all mega-categories (1. Food, 2. Beverage, 3. Personal Care and 4. Household Care) with Non-Food growing faster than national average; with Shampoo, Laundry Powder and Laundry bar being among the top 10 categories. – Under Beverage, the category in which Fit N Right belongs to are sub- categories or sections such as Beer, Water, Liquid Juice, Softdrinks, Instant Coffee Powder, Powder Choco, Powder Juice, etc. – Beverage contributes to approximately 21% of the total FMCG revenue of 679 Billion in 2016, with Liquid Juice posting 10% change or growth from last year.
  • 21. + – FMCG managed to sustain growth, posting +9% on account of bigger cash outlay; fastest growth coming from the Non-Food sector. – Spending momentum is sustained coming from a double digit growth of 16% in December 2016 while average price is now on a decline. – FMCG Growth is mainly driven by increased consumption as Filipino homes buy more per shopping trip on average. – Growth is also sustained across regions; fastest coming from NCR at 13%. Industry Performance
  • 22. + – The same is true across eco-classes with upper-class homes (Class ABC at 11%) outpacing growth of lower Sections. – Increased spending seen across all regions as average price decreases. – All channels (Sari-Sari Stores, Market Stalls, Convenience Stores, Hyper/Super Market, Drug Stores, Groceries, Direct Sales, Others) are on an uptrend, with fastest growth coming from Direct Sales and Convenience Stores. – Traditional Trade (Sari-Sari) remains to be the biggest channel for FMCG in-home at 44% of the total FMCG revenue. Industry Performance
  • 23. + New Entrants BuyersSuppliers Substitutes Industry Competit ors Strong Intensity of Rivalry Bargaining Power of Buyers Bargaining Power of Suppliers Threat of New Entrants Threat of Substitutes Strong StrongWeak Extreme ly Strong Porter’s 5 Forces
  • 25. + – Del Monte began operating in the Philippines in 1926, initially as a pineapple cannery under the name Philippine Packing Corporation. – In December 2005, NutriAsia Pacific Ltd bought a 50% stake in DMPL, and as of 2015 remained the major shareholder in the holding company with a stake of 67%. DMPL started trading publicly in the Philippines in June 2013. Company Overview
  • 26. + – The majority of health and wellness beverages products offered by Del Monte Philippines Inc are fortified, particularly with vitamin C, but it also offers Naturally Healthy (NH) variants. Other ingredients added to its products to improve their health credentials include Reducol (plant sterols), calcium, fibre, GCE, L-carnitine and vitamins A, C and E. Company Overview
  • 28. + Top Management seems flat – COO does most of the decision making – CEO approves business critical / strategic decisions Company has won numerous awards – Governance – People – Commercial – Sustainability Organizational Structure
  • 29. + Vision – NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Mission – TO BRING TO LIFE HEALTH AND WELLNESS Vision and Mission
  • 30. + Locations – Plantation – Cannery – Manila Office – PET Plant Quality & Excellence – People are motivated to work hard when everyone strives for excellence. – The company has a achieved a lot of industry certifications that only prove the high-quality production the Del Monte brand offers Location and Environment
  • 31. + – Culinary – Fruits – Food Services – Beverages • 100% Juice – Life gets better when you're strong from within! Drink to better health with Del Monte 100% Juices - fortified with essential nutrients to help you live life to the fullest. • Juice Drinks – Drink to better health and quench your thirst with the delicious blends of fresh fruits from Del Monte Juices! Products
  • 32. + – Beverage makes 28% (ave) gross revenue and also gross profit – Increasing Beverage sales since 2014 – 2016 biggest sales revenue (Php 132M) – Formulated/Fortified drinks makes about 7% of the sales Sales Performance
  • 33. + – Beverage growth rate is at 6% (ave) since 2014 – Maintain top 5 market share since 2013 Growth Rates
  • 35. + Business Model Industry and Market Marketing Drives Consumer Insights ● FMCG ● Retail ● Wholesale ● Brand Driven ● Product Driven ● 1st Moment of Truth ● 2nd Moment Truth Consumption Occasion
  • 37. + SWOT Analysis SWOT STRATEGY + DIRECTION 4 P’S WO EXPAND THE MARKET SEGMENT PRODUCT WT MAINTAIN PREMIUM PRICING AS PROTECTION PRICING SO EXPAND DISTRIBUTION CHANNELS PLACEMENT SW/ST/W O EXPAND MARKETING CHANNELS TO DELIVER BRAND PROMISE MORE INTERACTIVELY PROMOTIONS
  • 39. + Goals •To reinforce the public that Fit N Right is the best drink to complement your meals •To be the no. 1 brand of choice in the Formulated/Fortified Drinks category •To be the no. 1 brand of choice in the Alternative Beverage Category (Formulated/Fortified, Naturally Healthy, and Better for You)
  • 40. + Objectives Short Term (1 – 2 years) – Branding – Refocus Fit N’ Right as a healthy drink that blocks fat that’s best taken with your meals – Launch “LIVE FIT, LIVE RIGHT Campaign” (LFLR) to Young Professionals (who want to get into shape) – Market Share: Hit 30M (additional) in Sales by 2017 – Profitability - +20% gross profit margin (maintain)
  • 41. + Objectives Medium Term (3 – 5 years) –Branding: Expand (LFLR Campaign) to Teens and Families (Active Lifestyle) –Market Share: Make Fit N Right the brand of choice for health conscious individuals (for people who want to get in shape or keep fit) in 2020 in terms of Sales (FF Category). –Profitability: +30% gross profit margin (increase)
  • 42. + Objectives Long Term (5 years and up) –Branding: Maintain (LFLR Campaign) to Teens and Families (Active Lifestyle) –Market Share: Make Fit N Right the no. 1 alternative beverage for individuals in 2025 in terms of Market Share (FF, NH, and B4U Categories). –Profitability: +30% gross profit margin (maintain)
  • 43. + Decisions on the 4 Ps of Marketing
  • 44. + PRODUCT DECISIONS PRODUCT DECISION CURRENT PROPOSED SEGMENTATION Target Class A- B Female (30’s to 50’s) Expand Target Class from A-B to include C & D Expand Gender to Male and Age Group from 20’s to 50’s TARGETING People who want to lose weight. People who want to lose weight and keep it. People who want to have more energy and vitality. People who want to start and live an active lifestyle. POSITIONING Weight Loss Product Weight Loss Product Active Lifestyle Drink
  • 45. + PRODUCT DECISIONS PRODUCT DECISION CURRENT PROPOSED NEW PRODUCT DEVELOPMENT PROCESS New Flavors New Flavors with Added Features and Benefits (on top of being Weight Loss Product) PLC / BCG Mature (Decline) and Cash Cow Reintroduction (Extension) and Star ANSOFF Product Development Market Penetration Product Development Market Development
  • 46. + PRICE DECISIONS PRICING DECISION CURRENT PROPOSED PRICING OBJECTIVE Maximize Sales Product Quality Leadership Maintain PRICING STRATEGY Premium Pricing Maintain Increase Margins to Distribution Channels based on Volume Discounting
  • 47. + DISTRIBUTION DECISIONS DISTRIBUTION DECISION CURRENT PROPOSED DISTRIBUTION OBJECTIVE Intensive (Mass) Improve Intensive
  • 48. + DISTRIBUTION DECISIONS DISTRIBUTION DECISION CURRENT PROPOSED DISTRIBUTION STRATEGY Mass Distribution through all traditional retail and wholesale channels Mass Distribution through traditional channels must include cold storage in order to make sure that product experience is always optimal. Placement in ‘Healthy Sections’ Partnership with vending machine companies in sites to make product more accessible and increase sales. Current Strategies do not include vending machines. Partnership with “pro-Health/pro-Fitness” establishments (i.e. Gyms, Boxing Studios, Yoga, GNC, Healthy Options, etc.) Partnership with Food establishments (i.e. expand Pineapple Juice partnership with Jollibee, Food Concessionaires, Mini-stop, 7- 11, Restaurants, etc.) Partnership with Healthy Planned Meal providers (i.e. UberEats, etc.) Partnership with Transportation companies (i.e. Airlines, Shipping, etc.)
  • 49. + PROMOTIONS DECISIONS PROMOTION DECISION CURRENT PROPOSED PROMOTION OBJECTIVE Advertising (Traditional. Above The Line) Advertising (Traditional. Above The Line. Add-ons) Events and Experiences Public Relations Digital Marketing
  • 50. + PROMOTIONS DECISIONS PROMOTION DECISION CURRENT PROPOSED PROMOTION STRATEGY TVC. Radio. And Print. TVC. Radio. And Print will be used to reinforce the integrated campaign. Advertising will include but not limited to guerilla marketing. Events and Experiences will be done in the context of onsite activations in order to enhance brand and product experience focused on the integrated campaign. Public Relations will be done in the context of success stories featured during the integrated campaign. Digital marketing will be done in the context of online, social media, and mobile marketing to reinforce the integrated campaign.
  • 51. + Promise – Drinking FnR is healthy weight-loss drink Differentiation – FnR helps block fat Pillars – CGE and L-Carnitine technlogy, clinically proven The Filipino People who want lose or maintain their weight Pricing – Premium pricing for the Del Monte quality Effort – Make FnR more accessible during consumption occurrence (meal time) Risks – Del Monte product quality Value Proposition
  • 52. + Primary Target Market Digital Profile of the Target Market Regular daily user of the following: Facebook, text, email, YouTube Age (limit to 10-year range for focus) 20 year old and up - working in NCR CBD's - Working Class Generation Gen X, Y, Z Life Stage working class Socio Economic Class SEC Class ABCD, who wants to get fit Gender Not gender specific Race and Culture Asian Personality Trait In today’s society, consumers have less time for work or leisure. The hallmarks of today’s successful products are convenience and ease of use. The health and wellness trend in the Philippines has encouraged the consumers to increase juice intake. The product aims to target those with "health conscious" personality trait. Belief Healthier living by drinking juice drink with vitamins and natural juice that offers antioxidants, and with a low-calorie intake that helps them maintain their weight.
  • 53. + Primary Target Market Values Gives Importance to Health and Fitness Attitude Drink to better health and quench your thirst with the delicious blends of fresh fruits from Del Monte Juices! Lifestyle Living a sedentary lifestyle - Wants an active lifestyle but doesn't have time to exercise. Opinion Interest Fitness and Health, Quality of Life, Success Benefits Sought from Product Fit N’ Right as a healthy drink that blocks fat that’s best taken with your meals. Decision Role Initiator, Decider, Buyer, User Buyer-Readiness Stage Aware of the product benefits although those who have tried have either (1) not tried repeating or (2) tried repeating but still doubtful of product claims in terms of its being a weight-loss drink
  • 54. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Live Fit, Live Right Campaign • Communications Objectives Establishing the need to (add) category • ‘It is not just a your ordinary type of juice.’ Build Brand Awareness • ‘It is formulated and fortified with Green Coffee Extract (GCE) that is clinically proven to block fat, and with L-Carnitine that is proven to help you lose fat.’ Build Brand Attitude • ‘It refreshes you while helping you lose body fat, gain energy, and improve overall health.’ Influence Brand Purchase Intention • Drink it while you eat. It helps you block the fat from your food.’
  • 55. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Live Fit, Live Right Campaign • Communications Target Audience The campaign targets consumers, male and female, ages 20 to 50 years of age, who work and live in the CBD area.
  • 56. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Survey  124 respondents  49 Male  75 Female  74 drink juice 1x a week  Preference  Brand (Del Monte, Tropicana, Minute Maid)  Price  Nutrition  Volume  Flavor  90% live/work in the Central Business District
  • 57. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Live Fit, Live Right CAMPAIGN • Communication Messages Combatting Obesity (Emotional) Weight Loss with the help of GCE and L-Carnitine (Functional) Emphasis on Consumption Occasion: Drink Del Monte Fit N Right with your meals. (Functional) Start living your life for the better now by LIVING FIT + LIVING RIGHT by drinking Del Monte Fit N Right today!
  • 58. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Communications Channels Company Communications Channels The campaign is designed and deployed through all traditional (ATL: TVC, Radio, Print) and non-traditional channels. Non Traditional Channels include but not limited to: Events and Experiences Promotional Materials in all Partnership Channels Digital (Mobile and Social Media)
  • 59. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Communications Channels Partnership Channels • Traditional Channels (Supermarkets, Groceries, and Convenience Stores) • Placing Product in the ‘Healthy Section’ of Traditional Channels • Food Service Partners (Restaurants, Food Courts, Etc.) • The campaign is deployed in partnership with fitness partners that is within the target area. • Food Delivery Services • Vending Machine Sites
  • 60. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Communications Channels Events and Experiences • Onsite activation wherein interactive programs are implemented (e.g. Digital Weighing Machines that measure Total Body Fat and Visceral Fat) • Onsite Activation entail a product experience through sampling and pushing the product purchases • TAKE THE Del Monte Fit N Right 20/20 Challenge! • Start living your life for the better now by joining the LIVE FIT. LIVE RIGHT. Program today! • Take the Del Monte Fit N Right 20/20 Challenge! And with just 20 minutes in the next 20 days, you will be a fitter and better you, with Del Monte Fit N Right!
  • 61. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Communications Channels Digital Marketing (Mobile and Social Media) • One main feature of the program is the Del Monte Fit N Right App that can be freely downloaded. It contains training videos covering nutrition, exercises, tips and tricks, and positive psychology. • Feeds about the campaign and program will be boosted in Facebook and Instagram. • Participants will be invited to post their workout sessions via FB Live and talk about the Del Monte Live Fit Live Right Program. Prizes await for chosen videos. • The App will also identify retail stores within the targeted area that carry the Del Monte Fit N Right.
  • 62. + INTEGRATED MARKETING COMMUNICATIONS PLAN • Communications Results Targeted Sales Measurements • Sales from the stores within the targeted CBD area will also be monitored.
  • 65. + Current and Proposed P/L Success Measurement