10 STEP MARKETING PLAN FOR RED RIBBON CAKESJoanne Wolcott

February 2011

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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.

STEPS 1 TO 5

SUMMARY HEADLINE OF YOUR PTM AND MARKET

1. Primary Target Market (What do they need, want, demand)

2. What are they choices3. Where is the opportunity4. How big is the market (3Cs)

CELEBRATES LIFE BEAUTIFUL MOMENTS

1) Class A and B Families who want to celebrate togetherness and make every moment special

2) They need a good tasting cake that suites the specialty of the occasion

3) For the longest time goldilocks has sole market share for commercial cakes

4) The gap competition is always about great tasting food

5) The market size is with in the class A and B

STEPS 6 TO 10

SUMMARY HEADLINE OF THE MARKETING MIX & STRATEGY

6. Product7. Price 8. Promo 9. Place 10. Generic Winning Strategy of Mix

MARKETING MIX AND STRATEGY

Products there are cakes, pastries, breads, pasta miryenda

meals, set meals, custom cakes,rolls Price

cakes are from Php 350-959 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)

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

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)

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”

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)

2. MY PTM’S NWD

Needs from Maslow’s hierarchyWants determine choiceDemands for them to buy the product

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

DESCRIBE YOUR PTM NEEDS

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Self-Actualization Needs(Self-

Development & Realization)

Esteem Needs (Recognition,

Status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

I want to belong to a loving family

I am happy with my family

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 caliber and 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

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 ageSize of bubbles= represent relative market shares of

the brands

2nd Map: Functional Benefit vs. Brands/ Variants

POSITION MAP FOR CAKES

Price/ Age Matrix

0-13 yrs 13-24 yrs 25-49 yrs 50yrs up

High price

Low Price

Price vs. Age Matrix as of 2011

Red ribbon

Goldilocks

Goldilocks

Red ribbo

n

Goldilocks

Contis

EXAMPLE OF A BENEFIT POSITIONING VS. BRAND MAP FOR CAKE

Benefit Positioning vs. Brand Matrix

as of 2011

Contis

Functional Benefit pastrieslocal cakes cake rolls

birthday cakes

premium cakes

miryendapackages pastries cake rolls cakes

miryenda packages pastries cakes snacks

Dessert/snackbrings people togetherGood tastesaves moneygood designbrings joy to peoplequality of ingredients

Goldilocks Red ribbon

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.

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.

5A. ESTIMATE THE MARKET SIZE USING COMPETITOR DATA1. Industry size comparisons and

observation in the environmentFor 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.

5B. ESTIMATE THE MARKET SIZE USING COMPANY DATA1. Claimed market share3 billion pesos (Red Ribbon, 2009 sales )5.947 Billion( Goldilocks, 2007 sales)2. 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

5C. ESTIMATE THE MARKET SIZE USING CUSTOMER DATAAverage 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

5. DECIDE ON MARKET SIZE IN PESOS, NOT IN NUMBER OF PEOPLE

1. Competitor data= 6Billion Pesos (2007)

2. Company data = 3 Billion Pesos (2009)

3. Customer Usage data = n.a

6A. CAKES

CAKE ROLLS AND PASTRIES

SNACKS/MIREYENDA

6A. SHOW HOW PRODUCT LOOKS VS. COMPETITION

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.

PACKAGING

7. PRICE

* All prices In Phil peso

Products Prices of Goldilocks

Prices of Red Ribbon

Average Price Difference

Cake Rolls 154-286 210-300 -35Cakes 165-605 350-959 -269Pastries 24-60 40-60 -14Miryenda 100 150 -50

8A. WHICH OF THESE MODES DOES YOUR PRODUCT USE?** PLS. RANK MOST USED, 1-HIGHEST USE

Mass Marketing1. Advertising2. Sales Promo3. Public Relations

Personal Marketing1. Interactive

Marketing2. Personal Marketing3. Word Of Mouth

8A. YOUR PRODUCTS PROMOTIONS

Advertisement

WEBSITE

ADVERTISMENTS

Video http://www.youtube.com/watch?v=r6q-aN9Ny1o

Radio:http://www.youtube.com/watch?v=mAQE3K9qGEw

8B. COMPETITOR PROMO

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

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

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

SUMMARY

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STEPS 1 TO 5

SUMMARY HEADLINE OF YOUR PTM AND MARKET

1. Identify your target Class A and B

2. What do they need, want, demand (NWD) They need a cake that can be the centerpiece of

the gathering to make it special

3. What are they choices (competitors) Goldilocks Specialty cake stores Contis Small Bakeries

4. Where is the opportunity (gap) In the higher end cakes and distributing native

pastries

5. How big is the market (3Cs)

1. Competitor data= 6Billion Pesos (2007)

2. Company data = 3 Billion Pesos (2009)

3. Customer Usage data = n.a

Claimed market share3 billion pesos (Red Ribbon, 2009sales )5.947 Billion( Goldilocks, 2007 sales)

Guesstimate on market share= estimated 30% market share of red ribbon

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