Global Marketing

兄弟の卵
ITLOG NI KUYA
Daleon, Ivan Kenneth C.
Magpantay, Mary Joy
Valdevieso, Eric
Loreno, Angel
Enriquez, Joellyn
Bascon, Vanessa
Audine, Herica
Tenana, Mary Rose
Queipo, Juan Miguel
I. Situation Analysis
A. Company Analysis
Itlog ni Kuya is a company that offers and sells balut and salted eggs
which started on 1983. The eggs that the company are selling came from
ducks that are organically raised in Victoria, Laguna. The method of
processing the eggs are hygienically better that the way of how other local
salted egg manufacturers are doing. The ducks are being fed with a much
more nutritional food that enhances the nutrition of the eggs they are
producing. Currently, the company is distributing on Calamba, Tagaytay,
Victoria and Quezon City. It has been featured on several business and
talk shows and radio stations.

B. Business Environment Analysis

a. Political
Japan is a parliamentary government with a constitutional monarchy.
Emperor Akihito is the current chief of state but he only acts as a
political figurehead or a symbol. The country has five political parties.
The Democratic Party of Japan (DBJ), The People's New Party (PNP),
Liberal Democratic Party (LDP), The Social Democratic Party (SDP),
and The New Clean Government Party (Komeito). After voting for a
party, a Prime Minister was then elected. Prime Minister Shinzo Abe
and Deputy Prime Minister Taro Aso as the current heads of the
government. The Prime Minister has influence all over the country, in
regards to politics and economic laws.
b. Economic
After World War II, government-industry cooperation, a strong work
ethic, mastery of high technology, and a comparatively small defense
allocation helped Japan develop a technologically advance economy.
The two notable characteristics of the post-war economy were the
close interlocking structures of manufacturers, suppliers, and
 distributors, known as “keiretsu”, and the guarantee of lifetime
employment for a substantial portion of the urban labor force. Japan is
one of the top five largest economies in the world. In Japanese culture,
young people already starts solving problems, and developing skills for
their future needs.

c. Social
The country has an estimated population of 127,103,388 consisting of
ethnic groups with 98.5 % of Japanese, 0.5% of Koreans, 0.4% of
Chinese, and 0.6% of others. The spoken language is Japanese or
“Nihonggo”. Japan is open to different religions. There's an estimated
83.9% of Shinto, 71.4% of Buddhists, 2% of Christians, and 7.8% of
other religions. Japanese women who reached their 30's are expected
to settle down and get married. They practice patriarchal system in
which a couple was expected to have atleast one boy who can inherit
the family's worth or possessions.
d. Technology
Japan is one the leading nation when it comes to scientific research
and other techonological advancement such as their
telecommuncation system, like mobile devices. Japan made it possible
to connect WIFI virtually anywhere. Japan exchange contact
information wirelessly and sends Emails instead of texting. They have
strong robotic development compared to other countries. Many
facilities in Japan use automation system.

C. Market Analysis
The market in Japanese egg product is large. A lot of Japanese eat eggs
for breakfast and even a compliment food for their snacks and noodles.
The Japanese people consume a lot of eggs in a year round period.
 D. Competitor Analysis
There are no direct competitors in the Japanese market since balut is not
known in the country. Also, salted eggs are not a usual product for them.
Because of these, there are no products that are release in the market from
which Itlog ni Kuya is strong at. Competitors in the country are only farms that
produces and deliver eggs in several places in Japan.

II. Marketing Objectives

A. Sales Objectives
1. Around 40% of Filipino people in Japan which mainly lives in Tokyo,
Aichi, Kanagawa and other nearby city will be targeted based on Japan
Times statistic record.
2. At least 30% the company’s income will be the company’s profit.
3. Improve sales by 5% in the succeeding months of exportation.

B. Marketing Communications Objectives

1. Gain customer awareness through below-the-line marketing. Word of
mouth will be the most significant way of communicating the product to
other potential customers.
2. To introduce the balut and salted egg as one of the most known egg
product in the Philippine market.

III. Strategic Marketing

A. Target Country and Target Market Profile
Japan will be the target country of Itlog ni Kuya. This is a good target
country because there are a lot of Filipinos. The Filipinos are going to be
the primary target of the business which will eventually do a word of mouth
marketing among Japanese people.
B. Market Entry Strategy
The company will enter the Japanese market through tied-up partnership
with local known distributors that caters supermarkets in the country with a
large number of buyers.
 C. Positioning
Itlog ni Kuya will position itself in the market as a traditional Filipino food
that is appealingly different to other countries. This aims to promote
unique egg product that Filipino can offer to the global market.

IV. Marketing Mix Strategies

A. Brand and Product Strategy
Itlog ni Kuya will remain as the company’s brand for balut and salted egg
products. The branding will have a Japanese character which translates to

Itlog ni Kuya in tagalog. The Japanese character will be 兄弟の卵 which

reads Kyodai no tamago (Brother’s Egg).

The products that will be offered in the market are in 4’s. A more
appealing package will be designed in order to gain recognition to
Japanese people.

B. Pricing Strategy
Expenses per 5000 kilos
Expenses Cost
Egg P1,071,480
Overhead P 357,160
Exportation fee P2,496,000
Tariff P 392,464
Value Added Tax P 5,714
Total: P4,322,818

The pricing approach that the company will be using will be cost-based.

The 5,000 Kilos of eggs are equivalent to 71,432 eggs. The total cost of
the 5,000 kilos of eggs are divided to the total number of egg to be
 exported which amounts to P61 each egg. The eggs will be offered in 4’s
which will be priced at P242 or 532 yens.
C. Place/Distribution Strategy

The company will have a tie up with distributors that are focusing on
distributing on local supermarkets. The supermarkets will be the one who
will be retailing the products for the customers to buy.

D. Promotion Strategy

1. We will encourage the supermarkets to launch free tastes of salted egg

and balut for the people of Japan. This is for them to experience how
to eat and taste the flavour of the products being offered.
2. There will be posters that will be posted on supermarkets to gain
product awareness among the consumers.

V. Financial Projections
2018 2019 2020
Gross Sales from Product Offering P 5,000,000.00 P 5,500,000.00 P 6,050,000.00

Less: Cost of Goods Sold 2,000,000.00 2,100,000.00 2,205,000.00

Net Sales from Product Offering 3,000,000.00 3,400,000.00 3,845,000.00
Less: Operating Expenses
Marketing Expenses 60,000.00 63,000.00 66,150.00
Labor costs 30,000.00 30,000.00 30,000.00
Salaries & Wages Expense 840,000.00 840,000.00 840,000.00
Rent Expense 144,000.00 144,000.00 144,000.00
Utilities 96,000.00 96,000.00 96,000.00
Total Operating Expenses 1,170,000.00 1,173,000.00 1,176,150.00
Net Income Before Tax P 1,830,000.00 P 2,227,000.00 P 2,668,850.00

VI. Contingency Plans

 The product will be exported by means of shipping, knowing that the
Philippines and Japan is prone to typhoons and other natural disasters which
may cause the delay of exportation or failure to deliver the goods on time the
company will have to execute these plans to save its ties with japan:

A.) The company will be using shipping lines that can export there goods
even if there is a storm or typhoon with the minimal risk of damage it can go
to different routes to avoid the said calamity

B.) By having an updated source of the weather and its patterns the company
can determine and pinpoint the day to deliver its goods so earlier than that the
client is already aware of the circumstances leading to it.

C.) They can setup a small manufacturing firm in japan but first it should be a
dry run to see if it is effective and it caters the needs in the country alone.

VII. Appendices