10 Step Marketing Plan For Tanduay Ice

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10 STEP Marketing Plan for TANDUAY ICE

Kerwin Wesley L. ChuJune 2013


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.

Disclaimer


1. Tanduay Ice PTM are the “Young adult alcohol drinkers”

2. Who wants to drink to socialize, unwind and still enjoy the taste of what they’re drinking.

3. Can choose San Miguel Flavored beer.4. There are limited affordable pre-mix flavored

alcohol drinks available in the local market.5. Flavored Alcohol market size is 700 Million

with Tanduay Ice having 91% market share.

Steps 1 to 5

Enjoying the taste of Alcohol


6. Tanduay Ice is a pre-made vodka drink mixed with natural citrus flavors.

7. Is priced 10% less than San Miguel Flavored Beer but 3% more than ANTONOV

8. Uses TV, events and experiences9. Is distributed nationwide10. Uses differentiation approach to win

Steps 6 to 10

Young adults pay to belong


1. Tanduay Ice’s primary target market are the young adult alcohol drinkers

21-35 years old, social class AB and C. Working young adults who likes to party

and hangout with their family, friends or co-workers.

Drinks alcohol during social engagements, parties, after work gatherings and get togethers.


PTM needs of belonging in a group and enjoying it

6Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

I feel happy and relax when I drink

We develop camaraderie when we drink as a group


2. Young adults have differing needs, wants & demands

Young working adults need to belong, to bond, share experiences to eventually achieve Self-realization.

Young working adult choose Tanduay Ice for its price, taste, flavor and in the absence of other flavored pre-mixed alcohol drink.

Young working adult Demands: Alcohol drink with better taste which are affordable and available.


3a. Tanduay Ice has many formidable competitors

Direct: San Miguel Flavored Beer, Vodka Cruiser, Antonov.

Indirect: Regular Beer, Wine, Tequila, Gin, Carbonated Soda, Juice, Water

Variable: Price, availability, occasion of use, taste from a brand promise of “Mabilis maglagay ng kulay”


Price/ Age Matrix

0-13 yrs

13-24 yrs

25-49 yrs

50yrs up

High price

Low Price

Price vs. Age Matrix as of 2010

VodkaCruiser

Gilbey’sPremium

Tanduay Ice

Tanduay Ice is the only affordable pre-made flavored alcohol


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

VodkaCruiser

Gilbey’sPremium

Tanduay Ice

SMB Flavored

Antonov

In 2011, San Miguel introduce flavored beer and Antonov


Tanduay Ice has differentiated itself to the young adults

Benefit Positioning vs. Brand Matrix

Harder to stand out amidst the competitive clutter.

Tanduay Ice

San Miguel FlavoredB

eer AntonovVodka Cruiser

Gilbey's Premium

Taste Good

Offers Variety

Can be mixed with other drinks

Affordability

Alcohol Content

Availability

Prestige in drinking


4. Tanduay Ice has created an opportunity to DIFFERENTIATE itself

Tanduay Ice is the only alcoholic drink that is:

Pre-mixed yet affordable Colorful and tasty Gives the same kick like a regular beer

San Miguel is now trying venture into this segment with its introduction of the San Miguel Flavored Beer and ANOTONOV


4. “Positioning”: Brand identity from the maker

Mabilis maglagay ng Kulay with Tanduay Ice

Mix Masarap ang Summer with Tanduay Ice

So Good You’ll Get Hook


5a. Based on competitor press release flavored alcoholic beverage market is at 700 Million

June 2012 – Market size of Alcoholic Beverages is at 108 Billion

San Miguel - 66% Tanduay – 34%

*Assuming only 5% of the total alcoholic beverage is for flavored alcohol

Total market size would be at 600M with Tanduay Ice holding 91% of the flavored alcohol market share

San Miguel Flavored Beer was only introduced in latter part of 2011


5b. Base on Tanduay Ice market share is 91.7%, total market size of 700Million

1. Tanduay Ice sales data may be at P615 Million**Assuming 5% of total 12.3B Sales in 2011

2. Tanduay Ice market share of flavored alcoholic drink is at 91.7%.

3. Total flavored drink market size is P615 Million/0.917 = 700M market size


5c. Estimate the market size using customer data

54.8% of 80M Filipinos are alcohol drinkers. 38.9% are occasional alcohol drinkers 11.1% are regular drinkers 8% are heavy drinkers Average consumption of 1 bottle per

week Average cost is at P20

43M x 52 x P20 x 2.5%* = P1 Billion market*assuming 2.5% of population would drin flavored alcohol


5. Concluded that the flavored alcohol industry is a 700M market

1. Competitor data= 600M

2. Company data = 700M

3. Customer Usage data = 1 Billion


5a,b,c. References

http://sanmiguelbrewery.com.ph/news-june2-2012.html

http://www.abs-cbnnews.com/business/05/29/12/san-miguel-beer-grows-domestic-foreign-markets

http://rp3.abs-cbnnews.com/business/02/01/12/tanduay-says-2011-profit-despite-slow-volume-growth

http://www.interaksyon.com/business/23420/price-increase-boosts-tanduays-2011-profit

http://www.ihra.net/files/2010/05/02/Presentation_23rd_M10_Labajo.pdf


6a. Tanduay Ice owns superior market shelf of flavored alcohol

Tanduay ICEANTONOV

San Miguel Flavored Beer


6b. Product Description

It’s an alcohol-mix that combines premium quality spirits and refreshingly different fruit flavors with the right amount of kick because of its 5% alcohol content.

Comes in 330 ml flint bottles and in 4 variants.a. Originalb. Bluec. Redd. Yellow From http://asiabrewery.com/


7. Price of Brands are aiming for affordable price points

One 330 ml bottle ranges from Php 24 to 27.

Fairly priced as it is 10% cheaper than San Miguel flavored beer but 3% more expensive than Antonov


8a. Tanduay Ice uses TV ads, party events and bar tours.

1

2

3

4


8a. TV Commercials are fun, wild and free-spirited


8a. Mabilis Maglagay ng Kulay TV Ad

Click to Play Commercial Video


8a. Website & Social Media


8a. Event - Life Dance – Colors of Life


8b. San Miguel Flavored Beer “Fruits of Love” series

Created a series called “Fruits of Love” posted in Youtube but did not gain much traction and viewership.


8b. San Miguel Flavored Beer Bar Tour & Oktoberfest

Most events are piggy backed with events of other San Miguel products.


9. Tanduay Ice is distributed nationwide using Asia Brewery’s distribution network

Supermarkets, sari-sari stores and convenience outlets.

Bars, Karaokes and restaurants Nationwide Special personal delivery if bought by

large amounts


10. Tanduay Ice is leading via differentiation

Tanduay Ice pioneered the affordable ready-mix alcoholic drink for individuals who wants to hangout and still enjoy the taste of what they’re drinking.

It also benefited from the distribution network of Asia Brewery.

Affordably priced product distributed nationwide.


1. Tanduay Ice PTM are the “Young adult alcohol drinkers”

2. Who wants to drink to socialize, unwind and still enjoy the taste of what they’re drinking.

3. Can choose San Miguel Flavored beer.4. There are limited flavored pre-mix alcohol

drinks available in the local market.5. Flavored Alcohol market size is 700 Million

with Tanduay Ice having 91% market share.

Summary 1 to 5

Enjoying the taste of Alcohol


6. Tanduay Ice is a pre-made vodka drink mixed with natural citrus flavors.

7. Is priced 10% less than San Miguel Flavored Beer but 3% more than ANTONOV

8. Uses TV, events and experiences9. Is distributed nationwide10. Uses differentiation approach to win

Steps 6 to 10

Young adults pay to belong


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10 STEP Marketing Plan for TANDUAY ICE

Kerwin Wesley L. ChuJune 2013

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10 Step Marketing Plan For Tanduay Ice