Marketing Plan

Strategic Marketing Plan 2013 for
Asiawide Refreshments Corporation

(RC Cola)
Presented to the faculty of

College of Management and Entrepreneurship
PAMANTASAN NG LUNGSOD NG MAYNILA
In Partial Fulfillment of the Requirements in

Strategic Marketing Management
Submitted by:
ADRES, Rickjay L.
CARIÑO, Crizza May O.
DEGRACIA, Jenny A.
IGCASENZA, Nestine N.
LOPEZ, Sharmina Joy D.
RAMO, Rebeka R.
REAL, Honeylette Jade
TOMAS, Jerome P.
BSBA Marketing Management III-1
MARCH 2013
PamantasanngLungsodngMaynila
(University of the City of Manila)
College of Management and Entrepreneurship
Intramuros, Manila
APPROVAL SHEET
This Strategic Marketing Plan of Asiawide Refreshments Corporation (RC Cola) has
been prepared and submitted in partial of the requirements for the degree of Bachelor of
Science in Business Administration Major in Marketing Management by the undersigned, who
hereby recommend for approval of ORAL EXAMINATION.
ADRES, Rickjay L. LOPEZ, Sharmina Joy D.
CARIÑO, CrizzaMay O. RAMO,Rebeka R.
DEGRACIA,Jenny A. REAL, Honeylette Jade
TOMAS, Jerome P.
IGCASENZA, Nestine N.
______________________________ _______________________________
DATE Prof. Niño Reiñer F. Badiola

Approved by the Committee at the Oral Examination with a grade of __________.
___________________________ _______________________ _______________________
Prof. Jonathan Antonio C. VilloteProf. Anna Maria M. Miranda Prof. Gaudencio G. Raganit
Accepted and approved in partial fulfillment of the requirements for the degree of Bachelor of
Science in Business Administration Major in Marketing Management.
__________________________________
Prof. Delia Olivar
DEAN
ACKNOWLEDGEMENT
This Strategic Marketing Plan would not have been possible without the guidance
and the help of several individuals who in one way or another contributed and extended
their valuable assistance in the preparation and completion of this study.
We wish to thank, first and foremost, Prof Niño Reiñer F. Badiola, for his great
efforts of providing us valuable advices, supervising and leading us to accomplish this
Strategic Marketing Plan.
To our panelists: Professor Anna Miranda, Professor Jonathan Antonio Villote
and Professor Gaudencio Raganit III for giving us their time and effort in completing
this.
To our friends, families, and relatives who are great source of support and
encouragement, we thank them for providing us with the resources that we need.
To every person who gave us something to light our pathway, we thank them for
believing in us.
Last but not the least, to the light, our God, who guided us through the way and
provided us with strength, persistence, and knowledge
This Strategic Marketing Plan will not be possible without them.

2013
TABLE OF CONTENTS
I. Executive Summary………………………………………………………………………..6
II. Current Situation- Macroenvironmental Forces

A. Economical ……………………………………………………………..……………..7
B. Political-Legal………………………………………………….……………………..10
C. Socio- Cultural………………………………………………………………………..12
D. Technological…………………………………………………………………………13
E. Ecological……………………………………………………………………………..14
F. Supply Chain………………………………………………………………………….15
III. Market Analysis

A. Market Definition……………………………………………………………………..16
B. Market Size…………………………………………………………………………….16
C. Market Segmentation………………………………………………………………..18
D. Industry Structure……………………………………………………………………19
E. Michael Porter’s Five Forces Analysis…………………………………………..20
F. Competition and Market Share…………………………………………………….24
G. Competitor’s Strengths and Weaknesses………………………………………28
H. Market Trends…………………………………………………………………………29
IV. Situational Analysis- Consumer Analysis

A. Nature of the Buying Decision……………………………………………………..31
B. Demographics……………………………………………………………..………….32
C. Psychographics……………………………………………………………….……...33
D. Buyer’s Motivation……………………………………………………………...……33
E. Buyer ‘s Expectations……………………………………………….…………...….34
Strategic Marketing Plan- Marketing Management- 3rd Year Block 1 Page 4

College of Management and Entrepreneurship - Pamantasan ng Lungsod ng Maynila
2013
V. Company Analysis
A. Company Resources
1. Financial Condition…………………………………………………35
2. People…………………………………………………………………38
3. Production and Distribution………………………………………39
B. Objectives
1. Mission and Vision Statement……………………………………42
2. Financial Objectives……………………………………………….42
3. Marketing Objectives………………………………...……………42
4. Product Offerings…………………………………………………..43
VI. Situational Analysis
A. External Threats………………………………………………………………………44
B. External Opportunities………………………………………………………………44
C. Internal Strengths…………………………………….………………………………44
D. Internal Weaknesses…………..…………………………………..….……………44
E. Critical Success Factors……………………………………………………………45
F. Sustainable Competitive Advantage……………………………………………..46
VII. Marketing Research……………………………………………….….…………………48
VIII. Marketing Strategy
A. Product…………………………………………………………………………………51
B. Promotion ……………..………………………………………………………………52
C. Placement……………………………………………………………………………..60
IX. Implementation
A. Product Strategy………………………………………………………………………64
B. Promotional Strategy…………………………………………………………………66
C. Placement Strategy…………………………………………………………………...73
X. Financial Projections…………………………………………………………………….79
XI. Contingencies…………………..…………………………………………………………83
Appendices………………………...………………………………………………………85

2013
I. EXECUTIVE SUMMARY
Philippines have emerged as one of the rapidly growing food and drinks
industries in the Asian region over the past years. The country is characterized
by various factors, such as its growing young population, rising disposable
income and rising consumer awareness regarding health and safety concerns.
In early 2002, a sparkling group of marketing and manufacturing experts
pooled their strengths to establish a new soft drink company. Antonio Panajon,
Gerry Garcia and Butch Aves teamed up with businessman Ricky Sandoval and
food and beverage entrepreneur Fred Yao. Sharing the same passion and ideals
as Royal Crown Cola International, they were awarded with the exclusive license
to manufacture and distribute RC cola in the Philippines. Their vision was to offer
a truly satisfying cola drink at an affordable price.
The major players in the Philippines beverage industryare Asiawide
Refreshment Corporation, Cosmos, Coca cola Corporation and Pepsi-Cola
Products Philippines Inc.
The purpose of this marketing plan is to introduce different strategies in
terms of product, price, promotion and distribution of RC Cola that will help
increase the sales as well as the product awareness of the consumers. This
marketing plan will highlight also the new innovative product by RC Cola base on
the changing taste preference of the Filipino. This will tackle also the industry
analysis, finding out that ARC has a market share of 34% and second leading
non alcoholic beverage company in the Philippines.

2013
II. MACROENVIRONMENT
A. ECONOMICAL
Economic environment refers to the aggregate of the nature of
economic system of the country and its structural framework. Economic
status of a country affects the production and the consumers’ buying
behavior.
FACTORS EFFECTS
RECESSION Recession is a period where the economic status
declines; it is more on the turn down of the GDP for
consecutive quarters. Recession results to
unemployment where people have the tendency to
lessen their consumption on products like food and drinks
including soft drinks.
RATE OF INFLATION Rate of inflation is the change of price of the products.
The rate of inflation affects the consumers’ purchasing
power where they will lessen the consumption of the
products they acquire for the purpose of purchasing the
more reputable products they need. The rate of inflation
in the Philippines in the year of 2011 is 2.80.

2013
EXCHANGE RATE Exchange rate is the rate at which one currency can be
exchanged for another. Exchange rate depreciation may
lead to increase demand of employment and export
which means that people will have the tendency to
purchase more on products thus, it will increase their
purchasing power.
GDP The boost on Philippine growth was due to the higher
public and private consumption and rebound on exports.
As a result, the Philippine peso has appreciated more
than 7 percent so far this year and making it emerging
Asia's best performing currency and complicating policy
decisions for its central bank.

2013
SOURCE: NATIONAL STATISTICAL COORDINATION BOARD
The chart shows the Philippines’ Growth Domestic Product these past six
years which started from year 2007 quarterly. The GDP of the Philippines on the
first quarter of 2007 was 2.3 and increased by .1 by the following quarter. The
Philippines’ GDP achieve a 0% growth on the second quarter of 2008 and got a
negative growth of 2.1 on the second quarter of 2009 but gradually increase on
second quarter of 2010 to which it achieved a 4.1 % growth, the highest GDP
growth rate on the graph. As of the fourth quarter of 2012, the GDP growth rate
of the Philippines is 1.3 %.

2013
B. POLITICAL AND LEGAL
Various manufacturing and industrial plants on targeted provinces
have difficulty in acquiring licenses due to high standard of certain
municipalities and cities especially the plants where food and drinks are being
manufactured because of the sanitation being implemented and also the
overwhelming requirements and permits insisted from the government.
Soft drink is under the supervision of Bureau of Food and Drugs. BFAD
monitors, evaluates and ensures compliance of manufacturers, distributors,
advertisers and retailers of processed foods, drugs and other related products
to health rules and regulations and standards of quality.
FACTORS DEFINITIONS EFFECTS
It is an act that ensures the In this act, the manufacturers
RA 3720: safety and purity of foods, and distributors of foods, drugs
"Food, Drug, and drugs and cosmetics being and cosmetics are protected by
Cosmetic Act." made available to the the misbranding and
public. adulteration of their products. It
is implemented to ensure that
the companies are following the
safety standards for the sake of
the public health.

2013
RA 7394: It is the policy of the State a. protection against hazards to
“Consumer Act of to protect the interest of the health and safety;
the Philippines” consumer, promote his b. protection against deceptive,
general welfare and to unfair and unconscionable sales
establish standards of acts and practices;
conduct for business and c. provision of information and
industry education to facilitate sound
choice and the proper exercise
of rights by the consumer;
d. provision of adequate rights
and means of redress.
e. involvement of consumer
representatives in the
formulation of social and
economic policies.

2013
C. SOCIO-CULTURAL
Socio-cultural changes in the environment presents industry
players with predicaments that should be considered. Consumer tastes
and preferences vary differently in every nation, one may prefer sweet and
others may not
FACTORS EFFECTS
Associating soft drinks in their Every after meal and in-between meals, families
meals set a liter of soft drinks on their table to
complement the food they eat. Even in fast food
restaurants, almost all the drinks they are
offering are soft drinks so you do not have an
excuse of not drinking it.
Drinking soft drinks during In different occasions, aside from alcoholic
special occasions. beverages, you will always see soft drinks
because of non-alcohol drinkers and for the
children also who do not let by their elders to
drink alcoholic drinks

2013
D. TECHNOLOGICAL
Technology provides convenience for the lives of every individual
and also for the companies. Technological advancement helps in
providing the companies on its enhancements in operations and
productions.
FACTORS EFFECTS
TECHNOLOGICAL Machineries help the industries such soft
ADVANCEMENTS THAT PROVIDE drinks in utilizing its products and operations
ENHANCEMENTS IN THE that brings progress on the maximization of
OPERATIONS OF THE COMPANY. the resources. Through this, manufacturers
can produce more of their outputs in a
shorter period of time supplying the demand
of the consumers unlike before which they
used machineries which were hard to
operate and took a lot of labor force to
manufacture a product.

2013
E. ECOLOGICAL
Ecological environment include the environmental and natural
issues that cover the entire industry of soft drinks. The use of plastic
bottles and caffeine content of soft drinks are one of the main issues on
soft drinks industry.
FACTORS EFFECTS
USE OF PLASTIC BOTTLES The use of plastic affects the environment due
to the long period it takes for it to degrade.
Plastic bottles usually clog the drainages that
causes flood during rainy days.
CAFFEINE CONTENT OF SOFT Caffeine is usually found on coffee and soft
DRINKS drinks. It is a stimulant on the central nervous
system, cardiac muscle and respiratory
system. It permits proper breathing and
causes the muscle to tense up and sinuses
clearing.

2013
F. SUPPLY CHAIN
Wholesaler
Retailer
a. SUPPLIER: This where the raw materials came from. They supply
materials to be manufactured in the industrial plants.
b. INDUSTRIAL PLANTS: This is the channel where the soft drinks are
manufactured meaning converting raw materials into finished goods.
c. WHOLESALERS: From the designated distributor the finished goods
are transferred to wholesalers where you can buy the soft drinks in
bulk.
d. RETAILER: The retailers get the soft drinks either from wholesaler or
directly from designated distributors.
e. FINAL CONSUMER: the one who consumes or drink the soft drinks.

2013
III. CURRENT SITUATION- MARKET ANALYSIS
A. MARKET DEFINITION
The soft drinks industry is the production and distribution of non-alcoholic
and generally carbonated, flavored, and sweetened, water-based beverages. A
carbonated soft drink is a beverage that typically contains water, usually
a sweetener, and a flavoring agent. The sweetener may be sugar, high-fructose
corn syrup, fruit juice, sugar substitutes (in the case of diet drinks) or a
combination of these.
The major players in the soft drink industry in the Philippines are Coca-
Cola, Pepsi, RC Cola and Cosmos. Soft drink industry is about giving people an
alternative when it comes to beverages and satisfying their needs and wants in
terms of thirst reliever.
B. MARKET SIZE
5% 0% MARKET SIZE
38%
57%
AGES 0-14
AGES 15-64
AGES 65 AND ABOVE
Source: http://www.census.gov.ph/content/age-and-sex-structure-philippine-population-
facts-2010-census

2013
According to the 2010 census, Philippines total population has reached
92,337,852 with a growth rate of 2.04 % from the previous year.
On the entire population, 35,284,319 came from ages 0-14 years,
52,705,084 of the population are people ages 15-64 and 4,348,449 are ages 65
and above. The 57 percent of the Philippine population are from the age range of
our target market which is 15-64 years old.
Out of the 52,705,084 of the population who are potential buyers, only
99.8 % of them or 52,599,674 came from socioeconomic class C and below who
are middle income earners to low income earner since they are the ones who
prefer to buy products that are cheap in price but can satisfy their needs. Out of
the 52, 599,674 target market; only 14,679,296 is the penetrated market who
purchases soft drinks.

Total Population
92, 227, 000
100%
Available
Market
52, 705, 084
57%
Target Market
52, 599, 674
56%
Penetrated
Market
14, 679, 296
16%

2013
C. MARKET SEGMENTATION
Consumer Market
Soft drink industry’s target market are teenagers ages 15 to 19 and adults
ranges from 20 to 64 years old who are budget wise and looking for a high
quality product yet cheap in price that are from urban and sub-urban areas.
Geographic
Region Nationwide
Density Urban, Suburban
Demographic
Age 15 years old to 64 years old
Gender Male and Female
Social Class Class C and lower
Family, Peer groups and Students
Psychographic
Lifestyle Tight family bonding, loves to socialize
Personality Budget conscious and economical
Behavioral
Benefits Sought Looking for low-priced beverage, easily
available and could quench thirst.
Daily, occasionally, casually
Usage Rate

2013
D. INDUSTRY STRUCTURE
The beverage industry has 2 divisions: The alcoholic industry and the non-
alcoholic industry. Under the alcoholic beverages are; wines, beers and spirits.
The subgroups of the non-alcoholic beverages are fruit drinks, energy drinks, tea
and soft drinks. The main focus will be the Soft drinks Industry.
Wines
Alcoholic Beer
Spirits
Beverage
Industry Fruit Drinks
Non-
Alcoholic Energy
Drinks
Tea

2013
E. MICHAEL PORTER’S FIVE FORCES ANALYSIS
Potential
Entrants
(Threat of Mobility)
Low
Suppliers Industry Buyers

Competitors
(Suppliers Power) (Buyer Power)
(Segment Rivalry)
Low High
High
Substitutes
(Threat of Substitute)
Moderate

2013
a. Threat of New Entrants/Potential Competitors: Low Pressure
 It is very difficult to enter into a market place where already well-established
players are present. These players will not allow new entrants to enter easily
in the market. They will give tough time to new entrants which could result
into price wars, new product line, etc. in order to influence the new comers.
 There are more and more new brands appearing in the market with usually
lower price than Coke products
 Amount of capital investment required. Economies of scale help producers to
lower their cost by producing the next unit of output at lower costs. When new
competitors enter the market, they will have a higher cost of production,
because they have smaller economies of scale. High capital requirements
mean a company must spend a lot of money in order to compete in the
market.
 High sunk costs make it difficult for a competitor to enter a new market,
because they have to commit money up front with no guarantee of returns in
the end.
 Strong distribution network required. Weak distribution networks mean goods
are more expensive to move around and some goods don’t get to the end
customer. The expense of building a strong distribution network positively
affects soft drink industry.
 Advanced technologies make it difficult for new competitors to enter the
market because they have to develop those technologies before effectively
competing.

2013
 When the learning curve is high, new competitors must spend time and
money studying the market before they can effectively compete.
b. Threat of Substitute Products: Moderate Pressure
 This industry is enriched with enormous statistics of substitutes such as
water, tea, beer, juices, coffee, etc. presented to the end consumers. But all
of these substitutes need massive advertising, brand equity, brand loyalty and
making sure that their brands are effortlessly accessible to the consumers.
 Switching cost of the substitute product is very low so consumers can easily
shift towards the substitute products.
 Perceived price/value in this industry is very low because all products are
comparatively the same and are only differentiated by promotional activities.
c. The Bargaining Power of Buyers: High pressure
 Consumer can choose to buy those new and less popular beverages with
lower price but the flavor is different and the quality is not guaranteed.
 Large retailers have bargaining power because of the large order quantity,
but the bargaining power is lessened because of the end consumer brand
loyalty.
 People are getting concerns of negative effects of carbonated beverages.
Increasing number of consumers begin to drink fruit juice, lemonade and tea
instead of soda products.

2013
d. The Bargaining Power of Suppliers: Low pressure
 Most of the raw materials to manufacture soft drinks are basic merchandise
such as flavor, color, caffeine, sugar, and packaging etc. The suppliers of
these commodities have no bargaining power over the pricing due to which
the suppliers in soft drink industry are relatively weak.
 All the raw material ingredients are basic merchandise and easily accessible
to manufacturers. Switching cost to the suppliers is very low and
manufacturers can easily shift towards other suppliers.
 The main ingredients for soft drink include carbonated water, phosphoric acid,
sweetener, and caffeine. The suppliers are not concentrated or differentiated.
 When suppliers are reliant on high volumes, they have less bargaining power,
because a producer can threaten to cut volumes and hurt the supplier’s
profits.
e. Rivalry Among Existing Firms: High Pressure
 There are predominant carbonated beverages and commit heavily in
advertising and promoting the brand, differentiation, and price as there are an
increasing number of price sensitive customers.
 There are other soda brands in the market that become popular because of
their unique flavors.
 There are few players dominating the market with a very high brand loyalty.
 The industry is characterized by slow growth rate. Hence there is intense
competition amongst the players to gain a higher market share.

2013
 Growing buying preferences for differentiated products amongst the
consumers and hence companies resorting to growth through innovation and
consolidation.
F. COMPETITION AND MARKET SHARE
a. COMPETITION
COMPETITION PRODUCT PRICE PLACE PROMOTION
COLA
 sakto Php 6 Available in 1. Advertising
 8 oz Php 8 leading
 12 oz Php 10 supermarkets,  billboards
 330 ML Php 23 groceries and  commercial
 500 ML Php 25 sari-sari  posters
 1L Php 33 stores  radio
 1.5 L Php44 nationwide.
Php 52 2. “under-the-
 1.75 L
Php 61 cap promo”
 2L

2013
PEPSI COLA Available in 1. Advertising
 8oz Php 7 leading
 12oz Php 10 supermarkets,  billboards
 330 mL Php 23 groceries and  commercial
 500 mL Php 25 sari-sari  posters
 1Liter Php 30 stores  radio
 1.5 L Php 44 nationwide.
Available only
POP COLA in selected
 240 mL Php 6 supermarkets,
 800 mL Php 17 groceries and
 1.5 L Php 25 sari-sari
stores.

2013
b. MARKET SHARE
Soft drink industry in the Philippines is being played by four big
companies which are Coca cola, Asiawide Refreshments Corporation,
Pepsi Cola and Cosmos. In getting the market share of a particular
industry, the revenues of the major players are needed. The market share
of a company or player of the industry is equal to their revenue over the
total revenue of all the players of the industry.
The graph below shows the partition of the shares of the major
players in the soft drink industry.
Market Share in terms of 2011 Revenue
19,960,600, 2,834,823, 0%
0% 7,693,381, 0%
COCA-COLA
ARC
PEPSI COLA
3,523,031,185,
34% COSMOS
6,965,718,521,
66%
SOURCE: 2011 Financial Statements from Securities and Exchange Commission

2013
Coca cola Corporation being the number in the soft drink industry got the market
share of 66% while the second leading which is Asiawide Refreshment Corporation got
the 33% of the market share and followed by Pepsi with .2% of the soft drink industry’s
market share. Cosmos got .08% of the total market share while other company like
Interbev Corp got .05% and Zest-o got .03% of the market share.
The data below came from the Securities and Exchange Commission (SEC )that
shows the revenue of the companies which belong to soft drink industry.
COMPANY REVENUE
Coca Cola 6,965,718,521
Asiawide Refreshments Co. 3,523,031,185
Pepsi Co. 19,960,600
Cosmos 7,693,381
Zest-O 2,834,823
SOURCE: 2011 Financial Statements from Securities and Exchange Commission

2013
G. COMPETITOR’S STRENGTHS AND WEAKNESSES
COMPETITOR STRENGHS WEAKNESSES
• World’s largest beverage • No performance in snack
company division/product offering is
• Effective advertising restricted to beverages
campaign • Not all products are
• World’s most valuable brand available in all divisions
and has strong brand loyalty. • Cost instability
• Worldwide brand recognition • Business concentration
• Huge distribution network • Smaller market share than
• Strong market position Coca Cola
• Inability to substantially
product differentiate
• Established Brand In The • They are not available on
Local Market fast food chains where large
• Affordability Of Their crowd eat.
Products • Some products are limited
•Wide Variety Of Products only to lower class markets; it
cannot cater high end
customers
• Lack of promotional
activities

2013
H. MARKET TRENDS
Soft drinks industry has been around for a long time that people started
looking for a change. Based on the Beverage Industry Association of the
Philippines, the trends and issues in soft drinks industry are:
●Green Packaging
Many companies talk about shifting toward green packaging, the
carbonated soft drinks expect the industry to be the fastest to move toward green
packaging. Multiple respondents stated that they expect carbonated soft drinks to
move away from glass and aluminum to bio degradable/green plastic packaging
as soon as it becomes widely available.
●Consumers turns to healthy drinks
In much developed world, a significant portion of the population is
overweight and obese. This includes two-thirds of Filipinos. Consequently, many
people have started toactively manage their weight and change their lifestyles, a
shift that is reflected in their choices in the beverage aisle.Demand has increased
for beverages that are perceived to be healthy. Few of the brands today have
their very own “healthier” variants of soft drinks. Just like Coca-Cola’s Coke Zero,
which have 0.75 % calorie per liter and Coke Diet, which is a sugar-free soft
drink.

2013
● Product Innovation
For years the soft drinks are just dark-colored, sugared, carbonated
beverages but now soft drinks comes in different flavors and a variety of colors.
Just like ARC’s Fruit Soda, this comes in two flavors the orange and the lemon
flavor. And another one is ARC’s root beer-flavored cola.
●Product Availability
Availability is also important on the soft drink industry. Based on our
survey, more people buy soft drinks that is available on the first store or food-
chain they visit than go and visit other stores for their preferred brands.

2013
IV. SITUATIONAL ANALYSIS- CONSUMER ANALYSIS
A. NATURE OF BUYING DECISION
The buying decision of consumers differs from person to person. It
depends on the need of the person and the decision also changes
eventually, no matter how big or small the product is. The following are the
different factors which affects the nature of buying decisions of the
consumers of soft drinks:
FACTORS EFFECTS
PRICE Consumers usually purchase soft drinks
which are cheaper in price. They respond
to products that are favourable on their
budget.
BRAND Consumers purchase the products that are
known and tested already. They purchase
it because of the satisfaction it gives them.
They believe that the particular brand will
go beyond their expectations.

2013
TASTE/PREFERENCE The buying behaviour of consumers
usually depends on their taste and
preference. They purchase products that
suit the characteristics and features they
prefer. Soft drinks consumers differs on the
taste they prefer, some wanted not so
sweet others are not.
PROMOTION The promotion of products has a big impact
on consumers’ buying behavior.
Consumers are attracted to products that
are being advertised, they wanted to try
something new and after that, they will
decide if the products satisfied them.
B. DEMOGRAPHIC
The consumers are ages 15 to 64 years old who are male and female
who came from socioeconomic class C and below. People under
socioeconomic class C and below are considered middle income earners
who have a total income of P10,000-50,000 and they are the exact group
of people that can avail RC Cola in terms of price.

2013
C. PSYCHOGRAPHICS
Satisfying the thirst is one of the major concern of the Filipinos due
to the climate we have which is tropical; where we are experiencing a
totally hot weather condition. Filipinos are into finding beverages that can
satisfy their taste moreover they are also concern of finding it in the lowest
price as possible. Filipinos are budget conscious that’s why they prefer
products that are low in price but in a high quality.
D. BUYING MOTIVATION
People would prefer to buy things that they need. And according to
Maslow’s Hierarchy of Needs, we should satisfy first Physiological needs
which consist of food, water and shelter. RC Cola satisfies one of our
Physiological need by quenching the thirst of a consumer.
Maslow’s Hierarchy of Needs

Self-
Actualization
Self-Esteem
Sense of Belonging
Safety Needs
RC COLA Physiological Needs

2013
Sense of Belonging: One of the Filipino core values is eating with the
whole family where the quality bonding time takes place. In that way it can
suffice the love and belongingness needs.
Another motivator is the experience. This is where the commercials
of the brands will enter. In the commercials, the celebrities that advertise
the product show that they’re experiencing a refreshing moment. This will
make the viewers of the commercial curious about the brand.
E. BUYER EXPECTATION
Buyers have expectations about the product they are using. They
are looking forward on what benefits they will have after they avail a
product.
When it comes to RC Cola consumers were expecting to be satisfied
with the taste of the cola. They expect for their thirst to be relieved in
exchange for the money they spent on the product. RC Cola also
energizes the customer.

2013
V. COMPANY ANALYSIS
A. COMPANY RESOURCES
a. FINANCIAL CONDITION
Results of Operations
2011 compared to 2010
Asiawide Refreshments Corporation’s consolidated gross profit for the
year ended December 31, 2011 dipped by 0.004% at Php 821,986.2 million from
last year’s Php 827,780.7 million.
Consolidated costs and operating expenses decreased to 729,267.5
million from 738,728.4 million in 2010 due to low selling, marketing and
distribution and general and administrative expenses.
After considering income from operations, charges and income before
income tax, amounted to Php 100,386.4 million in 2011, a 7% improvement from
2010’s Php 93,234.4 million.
Net income for the year 2011 significantly improved to Php 70,270.6
million from 2010’s Php 66,518.8 million.

2013
2010 compared to 2009
Asiawide Refreshments Corporation registered a 23.3 % increase in
consolidated gross profit for the year ended December 31, 2010 at Php827,780.7
million from 2009’s Php 632,123.4 million due to high net sales and high cost of
goods sold.
Consolidated costs and operating expenses rose by 23% or Php
738,728.4 million from Php 564,088.8 million in 2009 due to relatively high -
selling, marketing and distribution.
After considering income from operations, charges and income before
income tax, a 23% increased amounted to Php 93,234.4 million in 2010 versus
Php 70, 328.2 million in 2009.
Net income for the year 2010 is at Php 66,518.8 million compared to year
2009’s Php 49,926.6 million primarily due to relatively high income before income
tax. Asiawide Refreshment Corporation continues to offer a truly satisfying cola
drink at an affordable price.
COMPARATIVE REVENUE FROM 2009 TO 2011
4,000,000,000
3,000,000,000 3,638,152,035 3,523,031,185

2,742,961,566 2011
2,000,000,000
2010
1,000,000,000 2009
0
2009 2010 2011
SOURCE: FINANCIAL STATEMENT 2009 to 2011; www.sec.gov.ph

2013
The data below is the summed income statement of Asiawide Refreshments
Corporation from year 2009 to 2011.
Financial Resources
2009 2010 2011
Revenue 2,742,961,566 3,638,152,035 3,523,031,185
Cost of Goods Sold 2,110,838,161 2,810,371,327 2,701,044,946
Contribution Margin 632,123,405 827,780,708 821,986,239
Operating Expenses:
Selling, marketing 446,038,121 574,640,921 550,190,568
and distribution
General and administrative 118,048,774 164,087,509 179,076,996
Total 564,086,895 738,728,430 729,267,564
Income from Operations 92,718,675 89,052,277 92,718,675
Other Income (Charges) 2,291,782 4,182,206 7,667,802
Income before Income Tax 70,328,293 93,234,483 100,386,476

Provision for Income Tax 20,401,651 26,715,683 30,115,943
Net Income 49,926,642 66,518,800 70,270,533
SOURCE: FINANCIAL STATEMENT 2009; www.sec.gov.ph

2013
b. PEOPLE
Asiawide people are some of the most passionate, resourceful and
hardworking people in the business. Lead by high-caliber professionals in
the bottling industry and armed with young and dynamic individuals,
together they produce superior value.
Asiawide Refreshments Corp. (ARC) continues to strengthen its
organization with a running in-house seminar on attitude change and
spiritual values for its employees. In the past year, Human Resource
Department initiated the different seminars for their employees. The
company’s HRD began a holistic approach to developing the organization
and workforce, including leaders. It continues to conduct basic supervisory
course for supervisors, basic managerial course for managers and
advanced managerial course for higher managers.And in 2004 and 2005,
ARC started its sales management training program. Under the program,
ARC hires college graduates with a couple of years of selling experience
of any consumer product and improves his or her skills over the years.
The ongoing program has produced district sales managers who are
college graduates.

2013
c. PRODUCTION AND DISTRIBUTION
Making sure that the beverage that customers love is easy to find
and that it continues to taste as good as it has always tasted is what
makes the customers of RC Cola loyal to the product. And if the company
puts in added value that is relevant to the consumer, buyers will feel
greater allegiance to that product.
Enormous are the processes involved in delivering the experience
of an international brand like RC Cola to a neighborhood corner store in a
country like the Philippines, especially when the market is dominated by
other giant brands.
From the perspective of manufacture and supply, the task of
making the product available to as many people as possible in an
archipelago like the Philippines is complex given that distribution systems
have to be set up so a bottle of RC Cola can get to the other side —
literally.
Stepping up its drive to improve productivity, Asiawide
Refreshments Corporation (ARC), acquired route trucks. The new route
trucks will not only keep inventory levels up but also improve service
efficiency with RC Cola partners and dealers in different areas. It creates
efficient product supply links between the company, their dealers and
customers. Disruption of truck deliveries not only paralyzes the services
and selling activities of the soft drinks firm and their dealers but also the

2013
communities in the areas they serve. Without access to product deliveries,
dealers will not be able to replenish their goods and soft drink consumers
will not be able to get their cola fix.
Countries such as the Philippines with land interrupted by seas,
allowing the easy and quick movement of goods and working in several
smaller islands poses a test of interruption and continuity. ARC has kept
up with the pace of demand by establishing smaller production facilities
that are close to the market to reduce the amount of travel, and is very
agile to be able to respond to needs in a short period of time.
A commitment to quality is maintained in all ARC. Their technical
team visits, audits the plant, makes sure that all these plants are compliant
with quality, sanitation, and manufacturing standards. The production of
soft drink, after all, impacts the environment, affecting water, carbon
emission and energy consumption. As such, ARC takes its role as a
steward of the environment seriously and prides itself on its company-wide
green initiatives, woven into the fabric of its business roadmap since it
started. The rigorous waste water treatment system that they use in their
plant is meant not just to help reduce water footprint, it is also one way for
ARC to help raise the people’s awareness on environmental sustainability.

2013
The cola concentrates are produced and shipped from a single
facility in Columbus, Georgia, in the United States where the company
was founded, so the flavor is the same around the world. There could be
minor variations but they are due to the quality or type of water or sugar
that is used. Here in the Philippines, cane sugar is used, which is
considered a “premium sugar” in the industry worldwide. Framing the cola
experience in terms of returnable bottles also provides a rich source of
insight into contextual realities and brand relevance. The Philippines is
one among many countries that still use returnable packaging for
economic reasons.
The fact that RC Cola has been warmly embraced by locals who
like its taste, value, and spirit so much that they have made it “Ang Cola
ng Bayan,” is due to the professionalism and persistence of the Philippine
team. ARC has kept the company’s finger on the pulse of its buying public
while fostering intimate and expanding ties with partners in the field, and
close communication with headquarters.

2013
B. OBJECTIVES
a. MISSION STATEMENT
To be the leading manufacturer and distributor of ready to drink, non-
alcoholic beverages that best satisfy the growing needs of the customers.
b. VISION STATEMENT
To be the lowest cost producer of ready to drink, non-alcoholic,
beverages and to be able to market products with the best quality and
value.
c. FINANCIAL OBJECTIVES
 To increase sales revenue by 13% for the next 3 years.
 To maintain the increase of operating expense by 13% for the
subsequent years.
 To increase the overall income by 19% for the succeeding
years.
d. MARKETING OBJECTIVES
 To increase the market share by 3%.for the succeeding
years.
 To increase product awareness
 To increase product consumption

2013
e. PRODUCT OFFERINGS
Size Bottled Drink
240 mL
800 mL
Canned Drink
330 mL
Plastic Bottled Drink
1.5 Liter

2013
VI. SITUATIONAL ANALYSIS
A. EXTERNAL THREATS
• Strong market leaders in the industry.
• Possible entrants in the industry.
• Effect of economic crisis.
B. EXTERNAL OPPORTUNITIES
• Location of advertisements on places where not only mass people can
see it.
• Product availability on fast food chains.
• Foreign market and plant expansion.
C. INTERNAL STRENGTHS
• Concentrated brand identity. They focused on mass market only and
most advertising are placed in mass areas.
• Affordable prices
• Availability, because of increasing number of plants.
D. INTERNAL WEAKNESSES
• Do not cater high-end customers due to their limitation on lower class
markets.
• Limited number of product sizes available.

2013
E. CRITICAL SUCCESS FACTORS
a. TRENDS
The key factors for success within the soft drink industry branch
from the trends of the macro environment. Primarily, constant product
innovation is imperative. A company must be able to recognize
consumer wants and needs, while maintaining the ability to adjust with
the changing market. They must keep up with the changing trends.
b. SIZE OF ORGANIZATION
Large distributors have the ability to negotiate with stadiums,
universities and school systems, making them the exclusive supplier
for a specified period of time. Additionally, they have the ability to
commit to mass purchases that significantly lower their costs. They
must implement effective distribution channels to remain competitive.
Taste of the product is also a key factor for success.
c. BRAND LOYALTY
Established brand loyalty is a large aspect of the soft drink
industry. Many consumers of the carbonated beverages are extremely
dedicated to a particular product, and rarely purchase other varieties.
This stresses the importance of developing and maintaining a superior
brand image.

2013
d. PRICE
Consumers without a strong brand preference will select the
product with the most competitive price. Finally, global expansion is a
vital factor in the success of the company within the soft drink industry
F. SUSTAINABLE COMPETITIVE ADVANTAGE
 Build on leading position in the soft drinks business. They aim to be the
no.1 selling great tasting cola that’s available everywhere. As of now,
their products are commonly distributed on small stores, canteens and
wholesalers. In-cans and 1.5 PET bottles are distributed in selected
groceries.
 Quality product in competitive price. They understand that quality and
value are at the core of a decision to purchase for both consumers and
retailers. That's why they frequently consult with their bottlers to
develop promotions and premiums that will work to motivate purchases
while maximizing sales volume and profit. To deliver the premium
product that the customers expect, they choose only the highest quality
raw ingredients.
 Brand identification. Dramatic, properly placed advertising can
increase visibility substantially when it comes to catching the attention
of the impulse beverage buyer. Eye-catching, dynamic Royal Crown
Cola is designed to influence impulse buyers while establishing lasting

2013
brand identification. They provide a set of complete marketing
materials to their bottlers to help create a strong, graphically consistent
presence in the marketplace.
 Packaging design. In a highly competitive marketplace filled with "cola
wars," strong brand identification is critical to building bigger brand
share. Making sure consumers quickly and clearly recognize a brand
product ultimately comes down to one thing – packaging. The Royal
Crown Cola logo is one of the most distinctive in the industry – with a
design that fits well into contemporary package design. It almost jumps
off the shelf with its bold, colorful look.
 Sales support. Well-trained, motivated personnel are necessary
ingredients for success. That's why RC Cola has developed intensive
sales training programs providing in-depth training materials for both
novice and experienced sales people.
 Product development. RC Cola employs highly skilled scientists and
technicians that are constantly researching different ingredients in
order to create exciting, fresh formulations for both new and existing
products. Based on market research and local preferences, these
professionals create new flavors designed specifically to meet the
changing tastes of soft drink fans.

2013
VII. MARKETING RESEARCH
Originally, soda or soft drinks were sold in pharmacies as a cure to
sickness. Soda fountains found in drug stores served as their dispensers.
As soft drinks gained popularity, however, these soda fountains
became the meeting place for people. Here in our country, BoticainEscolta,
Luisa and Son’s in Sta. Cruz, Alex Soda Fountain in Quiapo, and Hollywood
Soda Fountain in Recto were among the popular hang-out places. It’s a fact
that more and more Filipinos are hooked on carbonated drinks, or what we
call “soft drinks”. Research and reports on soft drinks shows that it is the
‘strongest-selling’ in groceries in the Philippines.
Whether Filipinos step inside a supermarket or knock on the
neighborhood sari-sari store, they are likely to go home with a bottle of soft
drinks, maybe even two. This, as results of a recent survey showed that
carbonated soft drinks is the top category in terms of market value locally,
with about Php 79.6 billion worth of products moving out of shelves during a
12-month period ending in June.
The Nielsen survey, which identifies the 50 “strongest-selling
categories in retail outlets”, further, showed that demand for the category
“remains stable” even as advertising spending posted an increase of 41
percent.

2013
The buying patterns of Filipinos are greatly affected by the country’s
growing population. The Philippines’ population has been growing by
approximately 2 percent annually, currently reaching nearly 100 million. This
has had a compounding effect on the demand for food and beverage
products.
The graph shows the increase of Philippine population from
January 2004 to January 2011.
SOURCE: PHILIPPINE POPULATION 2010; WWW.TRADINGECONOMICS.COM
Other factors influencing and shaping the country’s demand for
food and beverage products include:
 The Filipino’s “food-oriented culture” that emphasizes frequent
snacking.

2013
 The youth oriented food market (i.e. trendy products, attractive
packaging and sweetened foods and beverages). Approximately 35
percent of the population is under 15 years old.
 High workforce participation by women, increasing the demand for
convenience food and foodservice sales. The number of dual
income households has been increasing, which has driven greater
demand for food that is easier to prepare and offers shortcuts to
meal preparations.
 Large volume of young workers in the 24-hour business process
outsourcing (BPO) and call center industry, spurring 24 / 7 demand
for quick-service restaurants (fast-food), packaged convenience
food and alcoholic beverage products.
 The western influence on the food and beverage market. Filipinos
have a high regard for western food products such as hamburgers,
1sausages, pizza, cheese, dairy, ice cream and breakfast cereals.
 Improved distribution channels resulted in higher household
penetration.
In relation to this research reports, soft drinks companies are
continuously developing strategies on making their products always
available on every consumers and meeting their customers’ preferences
without the risk on their health.

2013
VIII. MARKETING STRATEGY
A. PRODUCT
a. UPSIZING THE PRODUCT
 In order to serve the group market which includes families and peer
groups, RC Cola will produce 2 liter bottle soft drinks. From 2000 to
2010, the household population in the Philippine has recorded an
increase of 15.8 million persons, or 20.7 percent, according to the
results of the 2010 Census of Population and Housing conducted by
the National Statistics Office (NSO). However, household size has
somewhat contracted with an average 4.6 members from 5.0 persons
per household. The existing 1.5 liters of RC Cola usually is equal to 6
glasses of water, the consumption of soft drinks per glass is 2 every
person which means that 1.5 liters of RC Cola is not enough to a group
with 5 or more members. The 2 liters of RC Cola can serve more
glasses of refreshing, good tasting soft drinks to a group of people with
5 or more members. RC Cola will now have another size for their
product to compete the large sizes of other soft drink brands.

2013
B. PROMOTION STRATEGY
a. SALES PROMOTION
RC Cola will use the “Under the Cap Promo” where there will be
codes placed under the cap of 1000, 2 Liters RC Cola to be distributed
nationwide. The “Under the Cap Promo” will run for 2 months, from
February to March. In coordination with the new public relation
organize also by RC Cola which is a summer beach volleyball event,
the codes will act as their tool in order to win and be part of the said
event. The people who got the cap of RC Cola 2 liters with the code
under it will have to text the code together with their name and contact
details. In choosing the participants of the event, automated raffle draw
will be held a week after the end of the promo. There will be 20 lucky
winners of the “Under the Cap Promo” and will have to bring 4 more
people to be part of his group on the day of the event; they can be a
group of family members or peer groups. They will be notified through
the contact details they texted during the promo.
b. PUBLIC RELATIONS
On the 21st of April year 2013, RC Cola will have a fun-filled
summer beach volleyball one-day event for families and peer groups
happening at the shores of Subic hosted by the youthful and beautiful
MS. Maja Salvador to spice up the crowd. Aside from the volleyball
tournament, the people can enjoy a lot of activities and games from

2013
different booths that will be placed on the surrounding area where they
can have RC Cola freebies and the refreshing RC Cola drink to perk
them up from the hot weather. Aside from the all-out war in the beach
courts, RC Cola will also gave away exciting activities in the activity
center. We will provide booths for the Games, free massage, photo op,
and a pledge wall, plus lots of freebies. There’s also the pledge wall
where people can pledge anything to help keep Subic as it is plus free
photo-op.
RC Cola will provide excitement, the volley action and fill the
place with the sight of blue posters, blue tents, blue singlet, blue bags,
blue uniforms etc. to represent the color of RC Cola. RC on the Beach
will be a really fun, an absolutely great experience for everyone else
who was there. It’s really more than a volleyball tournament but it is a
celebration of summer, sportsmanship, friendship, and active lifestyle
through sports and community development.

2013
c. INTENSIVE CAMPAIGN
To promote RC Cola quickly through the use of mass media,
such as, TV commercial, billboards, and print ads so that our target
market will have an increased awareness of the product. The product will
be more visible because of the media exposure which can attract more
customers and shift the customers to buy the product.
1. Billboards
Since our target market are Class C and below our
billboard will be placed in some parts of Manila and Quezon
Citythat will enable passers-by, drivers, commuter and the like to
notice it.We will place our billboard also in main roads in Metro
Manila.
It will be placed along Nagtahan Bridge San
Miguel,Manila where it has a traffic count of 97,113 vehicles based
on the Metro Manila Traffic Engineer Center. It has a size of 40ft
(Height) X 50ft. (Width). It faces a vehicular traffic coming from
Quirino Ave., Otis Pandacan and Makati going to Quezon City and
Divisoria. It has a monthly fee of 300,000php.

2013
Another billboard will be placed in Baclaran, Pasay
City where most of our target market coming from SEC C and
below are mostly situated or passing by. The size of the billboard
will be 40 ft. (Height) X 60 ft. (Width). The traffic volume in this area
is extremely heavy and it is visible to all traffic northbound to EDSA
and Manila coming from Cavite and the panel is also visible to
pedestrians and commuters waiting for rides. It has a monthly fee
of 135,000php.

2013
Additional billboard will be placed along EDSA COR.
B. Serrano Ave. Monumento, Caloocan City. The traffic flow is
facing vehicular traffic coming from Balintawak going to
CAMANAVA Area. The traffic count in this are is 90,528 according
to the Metro Manila Traffic Engineer Center. The size of the
billboard is 60ft (Height) X 40ft(Width). The monthly rental in this
area is 250,000php.

2013
2. Posters
Promotion of RC Cola 2 Liters will be posted at different sari-
sari stores and eateries situated at different urban and sub urban
cities and provinces in the Philippines. This will increase RC Cola’s
product awareness and will entice the people to buy RC Cola
whenever they buy snacks or meals.
3. TV Commercial
The commercial will be played in summer season which is
from April to May during noon time when most of the people crave for a
refreshing drink to quench their thirst caused by the summer heat. Our
endorser will be Ms. Maja Salvador who is an in demand and talented
young actress, dancer, and model that have a natural Filipina beauty with
many people looking up to her as an inspiration.Her fee would be
3,000,000 pesos and the 30 sec. tv commercial slot would be 300,000.
The commercial will be aired once a day during noon time on ABS CBN
where Ms. Maja Salvador has an exclusive contract.

2013
C. PLACEMENT STRATEGY
a. IMPROVING THE SERVICE EFFICIENCY OF THE COMPANY
The old trucks of ARC will be replaced by the new trucks acquired
from Mitsubishi Motors Philippines which is one of the country’s leading
automotive assemblers and distributors with its commitment to provide
vehicles that are of the highest quality and to be able to meet the market’s
rapid growth and demand. The ratio of the replacement of the old trucks to
a new one is 10:2. This new trucks is faster, energy efficient and can carry
more load therefore will lessen the fixation cost and delivery time
encountered from the old trucks. The trucks will not only keep inventory
levels up but also improve service efficiency with RC Cola partners and
dealers in different areas.
The delivery truck will contain 24 bottles of 8oz of RC Cola per tray
and there are 384 trays per truck which in total will have 9,216 bottles per
truck. The 800ml RC Cola will contain 12 bottles per tray and there are
384 trays per truck which in total will have 4,608 bottles. If the 2 Liters RC
Cola will be delivered it will contain 6 bottles per tray and each truck will
have 300 trays which in total will have 1800 bottles per truck. It will
increase its fleet and improve on service efficiency and expand its
coverage. Route trucks create efficient product supply links between the
company, their dealers and customers. Disruption of truck deliveries not
only paralyzes the services and selling activities of the soft drinks firm and

2013
their dealers but also the communities in the areas they serve. Without
access to product deliveries, dealers will not be able to replenish their
goods and soft drink consumers will not be able to get their cola fix.

2013
b. INCREASED PRODUCT VISIBILITY THROUGH DISPLAY
STANDS.
RC Cola Display Stands where developed to
increased visibility in the supermarkets and to
easilyinfluence consumers’ mood and persuade buyers to
take a closer look at the featured product – RC Cola. Aside
from placing it in the same rack together with other soft drink
brands, we would like to have our own display stand in order
to increase product awareness.

2013
A. STORAGE FOR RC COLA 2 LITERS
RC Cola will provide coolers to selected sari-sari
stores to the densely populated locations in the Philippines
where RC Cola 2 Liters to be kept. It has an insulated body
and lid for cold retention that could last up to 5 days and has
a size of 25.5"L x 15.5"W x 15.5"H and a capacity of 54 Qt.
(51L) that can hold 25 pieces of RC Cola 2 Liters if placed
upright. Each cooler has a price of 1500php. According to
the 2010 census of the National Statistics Office the number
of densely populated cities in the Philippines is 163 and from
there we will select 10 sari-sari stores that has great amount
of demand for products. The cooler will have the logo of RC
Cola at its sides and at its lid. This cooler will be used
exclusively for RC Cola products. This strategy has a total
cost of 2,445,000php and can generate 61,125,000php
amount of sales. If this strategy will be successful, this will
generate 58,680,000php amount of profit.

2013
D. IMPLEMENTATION
A. PRODUCT STRATEGY
UPSIZING THE PRODUCT
Action Department Time Frame Budget

Involve
Planning and creating the Marketing January to May P300,000

new product strategy Department (5 months)
Finalizing the new product Marketing Week 1 of June ----------

strategy Department (1 week)
Creation of the new Production Week 2-4 of P200,000

sample product Department June
(3 weeks)
Product Screening and Marketing Week 1 of July P100,000

evaluation Department (1 week)
Product Sampling Production Week 2 of July P400,000

Department (1 week)

2013
Test Marketing Marketing Week 3 of July P400,000

Department to Week 2 of
August
(4 weeks)
Pilot Testing Marketing Week 3 of P1,000,000

Department August to Week
2 of September
(4 weeks)
Analysis and result of the Research and Week 3 of P50,000

pilot testing Development September
Department (1 week)
Introduction and Marketing Week 4 of P2,000,000

distribution of the Department September
products nationwide
Total Expense P4,450,000

2013
B. PROMOTION STRATEGY
 SALES PROMO

Involve
Planning on the new sales Marketing Week 1 of P20,000

promotion strategy Department January
Meeting with the Executives and Week 2 of ----------

executives for the Marketing January
approval of the new sales Representatives (1 day)
promotion strategy
Finalizing the new sales Marketing Week 3 of June ----------

promotion strategy Department (1 week)
Implementation of the Marketing Month of P50,000

new sales promotion Department February to
strategy March
Evaluation of the new Marketing Month of April P5,000

sales promotion strategy Department
Total Expense P75,000

2013
 PUBLIC RELATIONS

Involve
Meeting with the Marketing and Week 1 of January ----------

executives Executive
Department
Planning of the Marketing Week 2 of January P10,000

activities on the Department
event
Organizing the Marketing Week 4 of January P10,000

final plan of the Department
event
Meeting with the Marketing Week 1 of February ----------

executives and Representatives
co-partners of the and Executives
event
Organizing the Marketing Week 1 to 3 of April P50,000,000

event Department
Event proper Marketing 21st of April P1,000,000

Department

2013
 TELEVISION ADVERTISEMENT

Involve
Conceptualizing Advertising 2nd to 4th week of P20,000

and selection of Department February
story board (3 weeks)
Planning on who Marketing March 1-3 , 2013 P3,000

will be the Department (3 days )
endorser
Meeting with the Marketing 2nd week of March P5,000

manager and the Department
endorser Representatives
regarding the
payment and
rules of the
contract
Contract Signing ARC executives 3rd week of March P500,000
and partial and Marketing
payment to the Representatives
endorser
Finalizing the plan Marketing 4th week of March P10,000

for television ad Department (1 week)

2013
Full payment of Finance 1st week of April P38,500,000

the endorser and Department
the television
company
Television April-May 2013 ----------

advertisement
coverage

2013
 BILLBOARD ADVERTISEMENT

Involve
Planning and Marketing 1st week of P5,000

selection location Department February
of billboards (1 week)
Lay-out creation Advertising 2nd to 3rd week of P50,000

for billboard Department February
(2 weeks)
Finalizing the Advertising 4th week of P5,000

billboard Department February
advertisement (1 week)

2013
Meeting the Company 1st week of March P1,000,000

representatives Executives and (1 week)
of the billboard Marketing
companies and Representatives
partial payment
Start of Marketing April-August P1,500,000

advertisement Department (3 months)
and full payment
for the ad

2013
 PRINT ADVERTISEMENTS
 POSTERS AND SIGNBOARDS

Involve
Planning and Marketing 1st week of P5,000
selection of Department February
distributor (1 week)
Lay-out creation Advertising 2nd to 3rd week of P50,000

for posters and Department February
signboards (2 weeks)
Finalizing the Advertising 4th week of P5,000

advertisement Department February
(1 week)
Meeting the Company 1st week of March P1,000,000

representatives Executives and (1 week)
of the companies Marketing
and partial Representatives
payment
Start of Marketing April - May P2,000,000
advertisement Department (2 months)
and full payment
for the ad

2013
C.PLACEMENT/DISTRIBUTION STRATEGY
 PARTNERSHIP WITH DELIVERY COMPANY
Involve
Meeting with the Executive 1st week of January P5,000
executives for the Department
potential delivery
company
Compiling the list Marketing 2nd week to 3rd week --
of possible delivery Department of January
company (2 weeks)
Screening of the Marketing 4th week of P20,000
possible delivery Department February to 3rdweek
company of March
(4 weeks)
Meeting with the Executive and 4th week of March P5,000
chosen delivery marketing
company Department
Agreement on rules Executive and 1st week of April --
and regulation of marketing
the contract Department
Contract signing Executive and 2nd week of April P5,000,000

2013
marketing
Department
Start of the delivery Distribution and 1st week of June --
Logistics
Department
Evaluation of the Distribution Last week of P5,000
performance Department November
st
Review on possible Finance, marketing 1 week of P20,000
renewal/termination and Executive December
of the contract Department
Total expense P5,055,000

2013
 DISPLAY STANDS

Involve
Planning on where Marketing Week 2 of January P10,000

the display stands Department
will be placed
Lay-out of display Marketing Week 3 of January P20,000

stands Department
Creation of display Marketing Week 4 of January P820,000

stands Department
Meeting with the Marketing Week 1 of February P100,000

supermarket Representatives
administrators and
partial payment for
the space
allocation

2013
Full payment for Marketing Week 2 of February P400,000

space location on Department
chosen
supermarkets
Placement of Marketing March to May ------------

display stands department

2013
 STORAGE FOR RC COLA 2 LITERS

Involve
Planning on where Marketing Week 2 of January P10,000

the coolers/ Department
storage will be
placed
Lay-out of coolers/ Marketing Week 3 of January P20,000

storage Department
Creation of Marketing Week 4 of January P2,445,000

coolers/ storage Department

2013
Meeting with the Marketing Week 1 of February P10,000

chosen retailers Representatives
on which the
coolers/ storage
will be placed
Placement of Marketing March to May ------------

display stands department

2013
XII. FINANCIAL PROJECTIONS
A. FINANCIAL FORECAST
Financial from previous years
2009 2010 2011 Growth Rate
Revenue 2,742,961,566 3,638,152,035 3,523,031,185 13.33%
Cost of Goods Sold 2,110,838,161 2,810,371,327 2,701,044,946 13.12%
Contribution Margin 632,123,405 827,780,708 821,986,239 14.03%
Operating Expenses:
Selling, marketing 446,038,121 574,640,921 550,190,568 11.06%
and distribution
General and administrative 118,048,774 164,087,509 179,076,996 23.17%
Total 564,086,895 738,728,430 729,267,564 13.70%
Income from Operations 92,718,675 89,052,277 92,718,675 16.74%
Other Income (Charges) 2,291,782 4,182,206 7,667,802 82.91%
Income before Income Tax 70,328,293 93,234,483 100,386,476 19.47%

Provision for Income Tax 20,401,651 26,715,683 30,115,943 21.50%
Net Income 49,926,642 66,518,800 70,270,533 18.64%

2013
Financial Projection
2012 2013 2014 2015
Revenue 3,992,651,242 4,524,871,653 5,128,037,044 5,811,604,382
Cost of Goods 3,055,422,043 3,456,293,415 3,909,759,111 4,422,719,506

Sold
Contribution 937,229,199 1,068,578,238 1,218,277,933 1,388,884,875

Margin
Operating
Expenses:
Selling, 611,041,644 692,493,496 769,083,277 854,143,887

marketing
and distribution
General and 220,569,136 271,675,004 334,622,103 412,154,045
administrative
Total 831,610,780 964,168,501 1,103,705,380 1,266,297,932

Income from 108,239,781 104,409,737 114,572,553 122,586,943
Operations
Other Income 10,811,600 19,775,497 36,171,362 66,161,039
Income before 119,051,381 124,185,234 150,743,915 188,747,983

income tax
Provision for 35,715,414 37,255,570 45,223,174 56,624,394

Income Tax
Net Income 83,335,966 86,929,664 105,520,741 132,123,588

(Loss)

2013
Revenue
6,000,000,000
5,811,604,382
5,000,000,000
2015
4,000,000,000
5,128,037,044 2014
3,000,000,000 2013
2,000,000,000 2012
4,524,871,653
1,000,000,000
3,992,651,242
0
2012 2013 2014 2015
The projected revenue for 2012 is Php 3,992,651,242 and continually

increases by 13% over the next consecutive years
Operating Expense
1,500,000,000
2015
1,266,297,932
1,000,000,000 2014
1,103,705,380 2013
500,000,000
964,168,501
2012
0 831,610,780
2012 2013 2014 2015
The operating expense projected for 2012 is Php 831,610,780 and for the preceding
year it maintains its increase by 13%, the overall operating expense of Asiawide
Refreshments Corp. reach 1,266,297,932 for 2014.

2013
Net Income
150,000,000
2015
132,123,588
100,000,000 2014
105,520,741 2013
50,000,000
86,929,664
2012
0 83,335,966
2012 2013 2014 2015
The projected net income of Asiawide Refreshments Corp. for 2012 is Php 83,835,956
and gradually increases by 19 % for the upcoming years. The 19% increase is base on
the growth of the net income of the company for the past years using the formula of
compound annual growth rate which is computed by dividing the present year by the
base year and raise it to one over number of transition years and the answer of this
would be minus one and result would be the growth rate.

2013
XIII. CONTINGENCIES
A. FUTURE SCENARIOS
 Increasing price of raw materials and energy sources - The business
requires a significant supply of raw materials and energy. The cost and
supply of these materials could be adversely affected by changes in
the market prices of sugar, crude oil, aluminium, tin, PET resins,
among others. Although direct purchases of small are relatively small
as a proportion of total costs, the company is exposed to fluctuations in
the price of oil through the dependence on freight and delivery
services. Changes in material prices generally affect the competitors
as well.
 Changes in consumer demand - The margins the company earns on
the products can be substantially different, and the margins can
change in both absolute and relative terms from period to period. While
the company attempts to adjust its product price and mix to maximize
profitability, changes in consumer demand and the competitive
landscape can have a significant impact on mix and therefore
profitability.
 In case the promotional plan is not effective, we will perform an
intensive promotional campaign and improve the strategies to perform.
 Weather patterns and Sales seasons- Sales volume are also affected
by the weather, generally being higher in the hot, dry months from

2013
March through June and lower during the weather monsoon months of
July through October. In addition, the Philippines is exposed to risk of
typhoons during the monsoon period. Typhoons usually result in
substantially reduced sales in the affected area, and have, in the past,
interrupted production at the plans in the affected areas. While these
factors lead to a natural seasonality in sales, unseasonable weather
could also significantly affect sales and profitability compared to
previous comparable periods. Sales during the Christmas/New Year
holiday period tend to be higher as well.

2013
APPENDICES
Delivery Truck
Billboards

2013
Posters
RC Cola 2 Liters

2013
Banner

2013
Sun visor Volleyball (ball)
Swim wear Inflatable Archway

2013
Display Stands
Cooler

2013

2013

2013

2013

2013

2013

2013

2013
SOURCES:
 http://www.arc.com.ph/home.html
 http://www.census.gov.ph/content/age-and-sex-structure-philippine-
population-facts-2010-census
 http://www.euromonitor.com/soft-drinks-in-the-philippines/report
 http://www.marketingteacher.com/#&slider1=1
 http://www.sulit.com.ph/index.php/view+classifieds/id/8166045/edsa+monu
mento+billboard#imagegallery
 http://oohresource.multiply.com/photos/photo/10/7?&show_interstitial=1&u
=%2fphotos%2fphoto
 http://www.sulit.com.ph/index.php/view+classifieds/id/8166745/nagtahan+s
an+miguel+billboard?event=sulit.com.ph+homepage,browsing+history,bro
wsing+history#imagegallery


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What is the strategic marketing plan about?

What is the strategic marketing plan about?

What are the current macroenvironmental forces affecting the company?

What are the current macroenvironmental forces affecting the company?

Strategic Marketing Plan 2013 for

Asiawide Refreshments Corporation

Presented to the faculty of

In Partial Fulfillment of the Requirements in

CARIÑO, Crizza May O.

LOPEZ, Sharmina Joy D.

REAL, Honeylette Jade

BSBA Marketing Management III-1

(University of the City of Manila)

College of Management and Entrepreneurship

ADRES, Rickjay L. LOPEZ, Sharmina Joy D.

CARIÑO, CrizzaMay O. RAMO,Rebeka R.

DEGRACIA,Jenny A. REAL, Honeylette Jade

DATE Prof. Niño Reiñer F. Badiola

___________________________ _______________________ _______________________

Prof. Delia Olivar

their valuable assistance in the preparation and completion of this study.

efforts of providing us valuable advices, supervising and leading us to accomplish this

Strategic Marketing Plan.

To our panelists: Professor Anna Miranda, Professor Jonathan Antonio Villote

provided us with strength, persistence, and knowledge

This Strategic Marketing Plan will not be possible without them.

II. Current Situation- Macroenvironmental Forces

III. Market Analysis

IV. Situational Analysis- Consumer Analysis

Strategic Marketing Plan- Marketing Management- 3rd Year Block 1 Page 4

Strategic Marketing Plan- Marketing Management- 3rd Year Block 1 Page 5

by various factors, such as its growing young population, rising disposable

In early 2002, a sparkling group of marketing and manufacturing experts

a truly satisfying cola drink at an affordable price.

The major players in the Philippines beverage industryare Asiawide

Refreshment Corporation, Cosmos, Coca cola Corporation and Pepsi-Cola

Products Philippines Inc.

The purpose of this marketing plan is to introduce different strategies in

non alcoholic beverage company in the Philippines.

Strategic Marketing Plan- Marketing Management- 3rd Year Block 1 Page 6

Economic environment refers to the aggregate of the nature of

economic system of the country and its structural framework. Economic

status of a country affects the production and the consumers’ buying

RECESSION Recession is a period where the economic status

declines; it is more on the turn down of the GDP for

consecutive quarters. Recession results to

unemployment where people have the tendency to

lessen their consumption on products like food and drinks

including soft drinks.

RATE OF INFLATION Rate of inflation is the change of price of the products.

The rate of inflation affects the consumers’ purchasing

power where they will lessen the consumption of the

products they acquire for the purpose of purchasing the

more reputable products they need. The rate of inflation

in the Philippines in the year of 2011 is 2.80.

Strategic Marketing Plan- Marketing Management- 3rd Year Block 1 Page 7

exchanged for another. Exchange rate depreciation may

lead to increase demand of employment and export

which means that people will have the tendency to

_______________ _ _____________