1. The primary target market is Class A and B families who want to make special occasions memorable by having a good tasting cake as the centerpiece. 2. The main competitors are Goldilocks, specialty cake stores, and small bakeries. There is an opportunity to target higher-end cakes and distribute native pastries not offered by competitors. 3. The estimated size of the cake market is 6 billion pesos based on competitor data, with Red Ribbon claiming a 30% market share.

1. 10 STEP Marketing Plan for Red Ribbon Cakes Joanne Wolcott February 2011 1

2. Disclaimer This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

3. Steps 1 to 5Summary headline of your PTM and market Primary Target Market (What do they need, want, demand) What are they choices Where is the opportunity How big is the market (3Cs)

4. Celebrates Life Beautiful Moments Class A and B Families who want to celebrate togetherness and make every moment special They need a good tasting cake that suites the specialty of the occasion For the longest time goldilocks has sole market share for commercial cakes The gap competition is always about great tasting food The market size is with in the class A and B

5. Steps 6 to 10Summary headline of the marketing mix & strategy Product Price Promo Place Generic Winning Strategy of Mix

6. Marketing Mix and Strategy Products there are cakes, pastries, breads, pasta miryenda meals, set meals, custom cakes,rolls Price cakes are from Php350-959 Cake rolls 210-300 Pastries Php120-350 in (packs of 3’s or 6’s) Miryenda meals average Php 150 (available in free standing stores and mall stores)

7. Marketing Mix and Strategy Promo print, tv, radio and internet. More emphasis on print Place Inside major malls, inside Jolibee stores in the provinces and free standing stores with in “food district” of cities. They also have internet and delivery hotlines Over all generic winning strategy: Appeals to the emotion of the customers

8. 1. Describe the primary target market (PTM)* Demographics (Age range: must have a start and end age*, sex, social class, marital status) Lifestyle (what they do) Behavior (when consumed, how much, how frequent, special concerns)

9. Class A and B families who want to make their togetherness special They are targeting families that are in the class A and B. Has emphasis on the women who chooses food for the family They are well to do in the society. All of the commercials are in English They target people who views food as a sign for to gather people and have “bonding time”

10. Market Size for Commercial Cakes 6.1 percent upper class, 4.2 percent upper-middle class, 57.1 percent middle class (http://opinion.inquirer.net/inquireropinion/columns/view/20100710-280190/NSCB-tries-to-count-the-rich) Total pop of the Phil 92 million approximately 62,008,000 target market (adding all the upper class, upper middle, and middle class)

11. 2. My PTM’s NWD Needs from Maslow’s hierarchy Wants determine choice Demands for them to buy the product

12. 3a. Direct and indirect products that address my PTM’s NWD List of Competitors products/ brands Determine the variables that affect choice of product, brand

13. Describe your PTM needs I am happy with my family I want to belong to a loving family Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 13

14. 2. PTM’s needs, wants & demands Needs: To have a great tasting dessert/ snack Wants: To have a centerpiece for the special occasion or togetherness. Demands: They want something that is considered of high caliberand something to be proud of when buying a caked for sharing. Most of the target market are from the class A and B so they are also looking for the quality of ingredients and the presentation

15. 3b. Positioning Maps for the Cake and Pastries industry 1st Map: 2 x 2 Matrix showing the 2 Most Critical Variables for Consumer choice This 1st Map should allow differentiation/ non-clustering of the direct competitors Example: Price vs age Size of bubbles= represent relative market shares of the brands 2nd Map: Functional Benefit vs. Brands/ Variants

16. Position Map For Cakes as of 2011 Price vs. Age Matrix Contis Red ribbon Red ribbon Goldilocks Goldilocks Goldilocks

17. as of 2011 Example of a benefit positioning vs. brand map for cake Benefit Positioning vs. Brand Matrix

18. 4. Identify the gap between customers and competition Where is the marketing opportunity? There is opportunity in looking more into the customized cakes for birthdays. Goldilocks is dominating that market through the designs of the kiddie cakes. In the 50 above age bracket, it is dominated by Goldilocks because of the brand recall and it has been there for a long time or by specialty cakes producers Can also compete with the local pastries since Goldilocks is the only one selling that in their stores.

19. What NWDs are not being addressed? The need to satisfy the budget of the lower class(class C and D), that would like to have a piece of the better off counterparts. What can be the unique selling proposition for the new product (totally new or repositioned.) A good selling proposition is still go head to head with Goldilocks since the only stores that are competing for the commercialized cake industry. Stay in the Class (mid to lower) A and class B bracket.

20. 5a. Estimate the market size using competitor data 1. Industry size comparisons and observation in the environment For every 2 goldilocks free standing stores, there is also 2 red ribbon stores within the vicinity. In an SM mall there is always a red ribbon and goldilocks in the premises. If there is Jolibee, there is most of the time there are red ribbon cakes and pastries for sale Goldilocks pastries are sold in the super market.

21. 5b. Estimate the market size using company data Claimed market share 3 billion pesos (Red Ribbon, 2009 sales ) 5.947 Billion( Goldilocks, 2007 sales) Guesstimate on market share = estimated 30% market share of red ribbon http://www.goldilocks.com.ph/business-opportunities http://www.jollibee.com.ph/downloads/reports/2009/annual_2009.pdf

22. 5c. Estimate the market size using customer data Average size of a household is 5 people in the Philippines. Usually Cakes are being bought for special occasion so an estimate of buying a whole cake is an average of 3-5 times a year. This is applicable to the target market of class A and B. http://www.nscb.gov.ph/headlines/StatsSpeak/2008/011408_rav_poor.asp

23. 5. Decide on market size in pesos, not in number of people Competitor data= 6Billion Pesos (2007) Company data = 3 Billion Pesos (2009) Customer Usage data = n.a

24. 6a. Cakes

25. Cake Rolls and pastries

26. Snacks/mireyenda

27. 6a. Show how product looks vs. competition

28. 6b. Product Description The box of the cake is always red. Their boxes are always packed with a red ribbon lace The information about the cake is always specified in the receipt. There is no box window to see the product unlike Goldilocks. They always put a premium in the packaging, the box lining is smooth and glossy so that the icing cannot sag the box if it touches.

29. Packaging

30. 7. Price * All prices In Phil peso

31. 8a. Which of these modes does your product use?** Pls. rank most used, 1-highest use Mass Marketing Advertising Sales Promo Public Relations Personal Marketing Interactive Marketing Personal Marketing Word Of Mouth

32. 8a. Your products Promotions Advertisement

33. Website

34. Advertisments Radio: http://www.youtube.com/watch?v=mAQE3K9qGEw Video http://www.youtube.com/watch?v=r6q-aN9Ny1o

35. 8b. Competitor promo

37. Communication The advantage of Red ribbon is that it has a active website that you can order directly It has exposure to many avenues since red ribbon is also present in Jollibee stores They concentrate on the “expirience” of having a red ribbon cakes

38. 9. Place Where is your product available? It is available in every major malls, many jolibee outlets and free standing stores It is also available in the internet and has a delivery hotline

39. 10. What is the generic winning strategy? Which of the 4 strategies are being used? (bold and underline to most dominant strategy) Supply and Distribution Leverage- because it can easily be accessible to the consumers. It is also present in Jollibee stores. Delivery by internet or hotline Differentiation It caters to the class A and B who have an eye for quality

40. SUMMARY 40

41. Steps 1 to 5Summary headline of your PTM and market Identify your target Class A and B What do they need, want, demand (NWD) They need a cake that can be the centerpiece of the gathering to make it special What are they choices (competitors) Goldilocks Specialty cake stores Contis Small Bakeries Where is the opportunity (gap) In the higher end cakes and distributing native pastries How big is the market (3Cs)

42. Competitor data= 6Billion Pesos (2007) Company data = 3 Billion Pesos (2009) Customer Usage data = n.a Claimed market share 3 billion pesos (Red Ribbon, 2009sales ) 5.947 Billion( Goldilocks, 2007 sales) Guesstimate on market share = estimated 30% market share of red ribbon

43. Marketing Mix and Strategy Promo print, tv, radio and internet. More emphasis on print Place Inside major malls, inside Jolibee stores in the provinces and free standing stores with in “food district” of cities. They also have internet and delivery hotlines Over all generic winning strategy: Appeals to the emotion of the customers