MARKETING PLAN

THE CASE OF MAGNOLIA HEALTH TEA

EXECUTIVE SUMMARY

This marketing plan was developed to accomplish the San Miguel Brewery goals and
visions. It aims to develop the companys strength and opportunities with that help of
acquired fund resources , strong manpower and workforce, basic units and areas of
implementation, and of course, highly innovative strategies for its effective
management and utilization. The marketing plan also provides a thorough analysis of
the companys present situation, different strengths and opportunities that underlie
within its system, as well as the negative factors such as weaknesses and threats. This
leads to assessment of the much needed requirements across the four major thrusts
of the company system namely instruction, research, extension and administration.
Last 2007, San Miguel Brewery launch their very first non-carbonated drinks in the
industry. The new products will be available nationwide under the names of
Magnolia Fruit Drink and Magnolia Health Tea.
San Miguel Brewery aims to give the customers a recreational drink which is non-
alcoholic and healthy. They also want to show the customers that their company does
not only specialize in the alcoholic category but also to the non-alcoholic category.
This also shows the variety of the companys brands
Their competitors, such as Asia Brewery, has already entered the non-alcoholic
brewery long before the San Miguel Brewery has entered.
The marketing proposal were as follows: expansion of promotion (including
extension projects) and development (expansion of various flavors from the
initial flavors of Magnolia Health Tea) of the existing products leading to
initiatives towards community service and environmental sustainability.
The marketing objectives cover having the same level of popularity of non-
alcoholic brand with alcoholic brand and expand the target market from families
living in urban places to families living in rural places. The top priority of the
company is to show their effectiveness, in terms of popularity in our target
markets, in every brand not just the alcoholic but also the non-alcoholic drinks.
I. Current Marketing Situation
A. Company
SAN MIGUEL BREWERY
A subsidiary of San Miguel Corporation
San Miguel Brewery, Inc. (SMB) was incorporated on July 26, 2007 as a
subsidiary of SMC and the domestic beer business was spun off from SMC to
SMB on October 1, 2007. The company is the Philippines largest brewery with a
market share of over 95% as of 2008. The original San Miguel Brewery, Inc. was
founded as La Fbrica de Cerveza San Miguel in 1890 by Enrique Mara
Barreto under a Spanish Royal Charter that officially permitted the brewing of
beer in the Philippines and incorporated as the first San Miguel Brewery, Inc. in
1913.
San Miguel Brewery Mission and Vision is SMB is a dynamic company, the
undisputed leader in the alcohol beverage industry, and a significant and
profitable challenger in the NAB market. They will lead the beverage market,
anchored on their tradition of San Miguel Beer business excellence. They will
make accessible in existing and new markets, their world class portfolio of
products and services, to continuously serve the ever-changing tastes and
preferences of their consumers. They will deliver superior long term value to
their stockholders inspired by their drive to be the best for the world. Through
their products and services, every occasion will be a drink to life. They are SMB:
Vibrant, Inspired, Bold, and Entrepreneurial.
B. Product

The products below are some of the San Miguel Brewerys key brands around
Asia. Product availability varies by country. Since they have operations around
Asia, here are their international product lines.
Alcoholic Beverages
Non-alcoholic Beverage
C. TARGET MARKET

San Miguel Brewery manufactures Magnolia

Health Tea for everyone. The specific target strata of
Magnolia Health Tea are those of families living in urban
places.
D. DEMOGRAPHICS

Their net income grew nearly a third to P17.7 billion, as sales volume reached an
all-time high which is 31% higher than the previous year. This might be the result
of the law modified by our President (Comprehensive Dangerous Drugs Act of
2002) which makes the consumer divert to alcohol drinking.
E. GEOGRAPHIC INFORMATION

San Miguel Brewery manufactures alcohol and non-alcohol beverages. They are
the Philippines leading brewery, they conduct business in countries in Asia
namely: Philippines, Thailand, Indonesia, China, and Vietnam.
F. BENEFIT USAGE
CHARACTERISTICS
Magnolia Health Tea has a little amount of fat and carbohydrates meaning
consumers who wants to drink a tasty beverage and observes regular diet can
enjoy this product.
G. DESCRIPTION OF
COMPETITION
Universal Robina Corp maintained leadership in terms of ready-to-drink tea
which left Pepsi-Cola Products Inc and the Coca-Cola Export Corp in second
and third respectively. While in the tea division, Unilever Philippines maintained
its top spot which means San Miguel Brewery is not at the top yet in terms of
ready-to-drink tea and tea.
 H. SWOT

STRENGTH
1. San Miguel Brewery is the countrys leading brewery company.
2. San Miguel Brewery is exceptionally well-known internationally.
WEAKNESSES
1. There are known for their alcoholic beverages but not with their non-
alcoholic brands
2. Lack of advertisement for the Magnolia Health Tea.
 OPPORTUNITIES
1. A potential to lead the non-alcoholic brand with further research and
development
2. A predictable increase in sales.
THREATS
1. A lot of competitive brands which are pioneers in the industry.
2. A possible discontinuation of the product if not promoted properly.
II. MARKETING OBJECTIVES

The marketing objectives of this marketing plan were as follows:

To have the same level of popularity of non-alcoholic brand and alcoholic
brand.
Introduce two (2) new additonal flavors of Magnolia Health Tea which are
Milk tea and Matcha.
Expand target market from families living in urban places to everyone.
To show the effectiveness of the company, in terms of popularity to our target
market, in every brand not just the alcoholic but also on the non-alcoholic
brand.
III. MARKETING STRATEGIES

The following marketing strategies aims to reach the marketing objective. To

discuss particularly the scope of marketing strategies are the following:
expansion of promotions, selling operations, development and innovation of
existing product.
A. PERSONAL SELLING

The marketing plan includes proposal for additional sales agent to promote and
sell the products personally in malls, schools, supermarkets, and sari-sari stores.
The personal selling enables physical interaction between the agents and the
target market which are families living in urban and rural places.
B. SALES PROMOTION

The commercial was a very good line up because of the star studded cast which
can also attract the target markets. Though the commercial being discontinued,
we would like to revive the commercial with the same cast to bring the nostalgic
vibe to the audience. We also propose the expansion of promotion in television,
radio, newspaper/magazine, billboards and etc.
C. PUBLICITY/PUBLIC
RELATIONS
There would be an extension project such as free taste and seminars. Free taste
will be held at supermarkets and seminars that talks about the benefits of
drinking Magnolia Health Tea. This extension projects aim is to persuade the
target market and also a way of promoting the product.
D. DIRECT COMMUNICATION

SAN MIGUEL BREWERY INC.

San Miguel Corporation
Head Office Complex
#40 San Miguel Avenue, Mandaluyong City, Metro Manila
Tel. No: 02-6323000
Fax No: 02-6323000
E. PRODUCT
DEVELOPMENT/INNOVATION
This marketing plan has three (2) different levels of propose development and
innovation.
FIRST LEVEL

The first level is the combination of different flavors that can be found in
supermarket and convenience store refrigerators and shelves. Together with the
original flavors and the newly added flavors.
SECOND LEVEL

The second level will be an introduction of the new flavors which are: Milk Tea
and Matcha,
F. SOCIAL RESPONSIBILITY

Ever since San Miguel Brewery was established, they have been providing us
recreational beverages. With the addition of these non-alcoholic beverages, it
continues to provide us beverages in a healthier way. Simply because they have
a responsibility to not only give their customer what they want but also what they
need.
They also have the responsibility to help their countrymen live a better life. They
help their countrymen in ways no one expects. The marketing plan also includes
rendering support in case of calamities which is a great outreach program that
will be called Share A Bottle, for every 5 bottles or 10 packs you purchase
there will be an amount ,which is equal to 1 bottle, that will be donated to the
families that will be affected by the calamity
IV. ASSUMED COST OF BUDGET
COST OF BUDGET FOR 6 MONTHS

Website, Implementation and Maintenance Php. 50, 000.00

Advertisement (including Extension Project) Php. 3,000,000.00

Research and Development Php. 2,000,000.00

Additional Agents Php. 1,000,000.00

Total Php. 6,050,000.00