2014 Sarap Sample Strama

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Submitted by Your Name

July 1, 2014

Ateneo Graduate School of Business

A Strategic Management

Paper

for SARAP

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Executive Summary

This strategic management paper aims to develop a viable strategy for the Sarap packaged soups business retail business in the Philippines. The global brand ‘Sarap’ first came into the Philippine market in 1972, with packaged soup cubes as its pioneering and flagship entrant in this high-potential Asian market. Sarap is a relatively familiar brand known not just for packaged soups but for Sinigang mixes, liquid seasonings, recipe mixes, powdered flavorings, packed soups and pasta as well. To date, packaged soups is the biggest contributor in volume and value amongst the products in the Sarap portfolio. With 90% market share in a Php 2 billion market, Sarap cubes revenue in 2004 is estimated at Php1.6 billion and still managed to grow by 7% with an estimated Php1.7 billion sales in 2005.

However, the packaged soups category is experiencing flat growth and has reached its maturity at the dawn of powdered flavorings. The brand’s strategic objective is to defend the relevance of packaged soups by positioning it as ‘best for soupy dishes’ whilst establishing its presence and leadership in the powdered flavorings segment. With the use of several strategic management tools, it was identified that it is best to employ market penetration.

It was established through Project Pinoy that the market for packaged soups still has a lot of room to grow, especially in soupy dishes where only 12% of all soupy dishes is penetrated by packaged soups. By utilizing brilliant marketing, campaigns on soup can help arrest a possible decline in the packaged soups category.

Other opportunities identified through the study apart from aggressive marketing campaigns behind packaged soups are deemed to be necessary to realize and expedite the achievement of the brand’s objective:

 On product distribution, improving the Sarap portfolio to be able to cater to downline channels via direct servicing.

 On geographies, valuing the Visayas and Mindanao regions as a separate entity from that of Luzon and GMA for reasons that the cultures and taste preferences are so distinct in itself creating a world of possibilities for the business.

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 On consumer purchasing habits, developing lower cash outlay products as an answer to a growing economic reality.

Simultaneously, other efforts on master brand activations and company-wide initiatives are deemed to be necessary as it can assist Sarap address growing direct and indirect consumer concerns such as:

 The health factor in the use of cooking aids or any convenient, ready-to-eat, easy-to-prepare commodity is addressed by Sarap’s thrust on Vitality.

 Certification of all cooking aids as ‘good for you’ products.

 Differentiating the Sarap brand from competition or other food brand with a relevant and aspiring proposition that consumers will be able to connect to.

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1 Introduction

A viable strategy for the Sarap packaged soups business in the Philippines is what this strategic management paper aims to develop. The global brand ‘Sarap’ first came into the Philippine market in 1982, with packaged soups as its pioneering and flagship entrant in this high-potential Asian market. Sarap is a big player in the packed soups category. Through Sarap’s diverse portfolio, it has established itself to be market leader in several categories and has always been referred to as a respectable brand in the categories it plays in.

Sarap packaged soups remains the undisputed market leader in the packaged soups category with an estimated market size of Php2 billion. With over 90% market share, Sarap packaged soups revenue in 2004 is Php1.6 billion and still managed to grow by 7% with Php1.7 billion sales in 2005. The packaged soups category is considered to be one of the core categories since not only does Sarap packaged soups stand for the category in itself but it is also very profitable and is able to support other adjacent categories in the Sarap portfolio.

Sarap packaged soups are available in various retail channels nationwide - supermarkets, groceries, market stalls and sari-sari stores. It is sold at a very affordable price of Php 9.50 per shell box (box of 2 packaged soups) and Php28.00 per pantry box (box of 6 packaged soups).

Sarap has an estimated 500 direct hire employees working in different functions in head office whilst there are a thousand or so working in the different factories of Sarap’s 3rd_{party manufacturers and outsourced agencies.}

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2 Research Design & Methodology

The construction of this paper needed several facts and information which were obtained primarily through public and private sources alike.

The websites of the following government agencies were accessed to get the necessary and pertinent information needed as references for this study:

 National Statistics Office – www.nso.gov.ph  Bangko Sentral ng Pilipinas – www.bsp.gov.ph  Department of Trade and Industry – www.dti.gov.ph

 National Economic Development Authority – www.neda.gov.ph  Securities and Exchange Commission – www.sec.gov.ph

Methodology

Summary of Frameworks, Tools, Activities and Outputs

for this Strategic Management Paper

Framework

Tools

Activities

Output

Ten Essential Components of a Mission statement

Mission Statement

Evaluation/Formulation Mission and Vision Statements External Factor

Evaluation (EFE) Matrix

General Environment

Analysis Opportunities and Threats Porter’s Five Forces

Model Competitive Profile Matrix (CPM) Industry Analysis David’s Functional

Analysis

Internal Factor Evaluation (IFE)

Matrix Company Analysis

Strengths and Weaknesses David’s Matching Tools Internal-External Matrix (IE) TOWS Matrix SPACE Matrix Grand Strategy Matrix

Strategy Formulation Objectives and _Strategies

David’s Matching Tools Quantitative Strategic Planning Matrix (QSPM) Prioritization of

Strategies Recommended Strategies Implementing Strategies Market Segmentation and Product Positioning Action Plans Proforma Financial Statements Norton and Kaplan’s

Balanced Scorecard

Strategy Evaluation and Control

Performance Measures

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Other research tools made available through Sarap were also used such as:  Global Market Research Advisor

 Global Market Research Retail Audit  Global Market Research Homepanel  ATP (Advance Tracking Program)

 The Sarap Story (to quote brand values and corporate spirit)  Project Sarap – In-House Monitoring Study

Limitations

This strategic management paper is limited to the packaged soups business of Sarap Foods.

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3 Vision & Mission

Amidst stiff competition in the fast moving consumer goods industry of cooking aids, Sarap’s commitment is most evident in its continued desire to perfect its business where it is currently playing a major role as a market leader in the packaged soups category.

3.1 Current Vision and Mission Statement

3.1.1 Vision

To be a Homemaker’s Best Friend.

3.1.2 Mission

With the help of our cooking aids, she is able to integrate her two desires: to nourish her family and nurture her relationships. She is able to create joyful, nutritious meal experiences. Through the meal she creates, she can make an impact on relationships with people around her to suit her personal agenda. She becomes an inspired cook and also an accomplished woman. This 2-fold “Daily Victory” renews her feeling of personal accomplishment and self-worth.

3.1.3 Review of the Current Vision and Mission

Statements

Sarap’s vision is currently designed as a brand capsule where it is succinctly described as such for a very targeted subject – the woman. It may be clear and compelling enough to refer to a ‘unifying focal point of effort’ since ‘cooking’ is considered to be a mundane household chore that is most often than not associated with the woman, especially in the Philippines.

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Vision

Criteria Evaluation

1. Vivid image _no 2. Realistic _no

3. Aspirational _{yes To be a Homemaker’s Best Friend}

However, as far as the vision is concerned, it seems to lack the aspirational yet realistic angle that is to inspire and move the team as one since it is stated in a manner of activity portraying not only commitment but conviction to do its part in realizing a dream. This is good in so far as marketing is concerned but as a business, it should be further enhanced to embody more meaning for all stakeholders.

Similarly, the mission is reflective of the brand’s commitment as to what it can and will do. However, it doesn’t quite capture what the business is about in totality. If evaluated using the criteria of designing a mission statement, it would only be able to satisfy several components:

Criteria Evaluation

1. Customers yes

With the help of our cooking aids, she is able to integrate her two desires: to nourish her family and nurture her relationships. She is able to create joyful, nutritious meal experiences. Through the meal experiences she creates, she can make an impact on relationships with people around her to suit her personal agenda. She becomes an inspired cook and also an accomplished woman.

2. Products &

Services yes

With the help of our cooking aids, she is able to integrate her two desires: to nourish her family and nurture her relationships. She is able to create joyful, nutritious meal experiences.

3. Markets no

4. Concern for Survival, Growth & Profitability

no 5. Technology no 6. Philosophy no 7. Self-Concept no 8. Concern for Public

Image/ Nation

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9.Concern for

Employees no

10. Nation Building no

Revised Vision and Mission Statements

3.1.4 Vision

To be the most relevant and preferred cooking aid brand in the Philippines.

3.1.5 Mission

It is our reason for being to provide our customers nourishment and nurturing through joyful meal experiences created with 'The Sarap Effect', which makes a difference in the lives of Filipino people.

Through Sarap's heritage and credibility, our cooking aids has earned its place as an established and delicious brand preferred in both retail and wholesale markets nationwide.

By providing adequate training and a great professional working atmosphere ensuring commitment amongst our employees, we can further improve total business for all our stakeholders and sustain our presence.

We are committed to continue studying and understanding evolving demands through research in order to continuously develop solutions to our customers needs for the changing times.

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3.1.6 Review of Sarap’s Revised Vision and Mission

Statements

Vision

Criteria Evaluation

1. Vivid image _yes To be the most relevant and preferred cooking aid brand in the Philippines.

2. Realistic _{yes preferred cooking aid brand in the Philippines.} 3. Aspirational _{yes To be the most relevant and preferred cooking aid}

Criteria Evaluation

1. Customers yes

2. Products &

Services yes

3. Markets yes retail and wholesale markets nationwide 4. Concern for

Survival, Growth &

Profitability yes

5. Technology yes

We are committed to continue studying and understanding evolving demands through research in order to continuously develop solutions to our customers needs for the changing times.

6. Philosophy yes

7. Self-Concept yes

8. Concern for Public Image/ Nation

Building yes

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9.Concern for

Employees yes

10. Nation Building yes

The vision and mission should be cascaded to the employees of

Sarap by hanging posters of it in strategic locations in the office,

making it part of the orientation and posting it on the website.

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PENETRATION%

94 70 49 48 47 11 93 ₇₈ 51 63 50 11

MSG ROOTS CUBES FLAVORINGS SINIGANG PACK SOUPS

YTD05 YTD06 FREQUENCY 24 12 7 11 6 3 25 14 7 12 7 3

MSG ROOTS CUBES FLAVORINGS SINIGANG PACK SOUPS

YTD05 YTD06

VOLUME PER TRIP

20 22 32 15 25 2 16 19 28 14 24 2 MSG (gm) ROOTS (gm) CUBES (gm) FLAVORINGS (gm) SINIGANG (gm) PACK SOUPS (pc)

YTD05 YTD06

4 External Assessment

There are several external forces that affect the packaged soups industry. This strategic paper will establish these realities and make it more relevant by translating it in terms of opportunities and threats for the brand.

4.1 Economic Forces

4.1.1 OPPORTUNITY : Less but Frequent Purchases of Goods by

Consumers

Figure 1: Frequency and Volume per Trip of Cooking Aids

Source: Global Market Research Homepanel

Indicative of how difficult life is becoming, more and more, it can be observed that people are really trying to live on a day to day basis. Filipinos spend less whenever they shop or buy commodities. As much as possible only what they need for the day or for a short span of time is what they purchase. However, the frequency of which is increasing. They won’t mind going through the hassle of having to buy again especially once the need for it arises.

Relative to the uptrend in the frequency, the quantity of what they purchase is lessening. In the case of Sarap, a ‘shell box’ has 2 packaged soups and it can be

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VOLUME % SHARE 8 8 8 7 8 13 10 13 11 11 11 15 11 15 16 16 15 19 18 19 19 19 92 92 92 93 92 87 90 87 89 89 89 85 89 85 84 84 85 81 82 81 81 81 4we Jan 30 2 005 4we Feb 27 2 005 4we Mar 27 2005 4we Apr 2 4 20 05 4we May 22 2005 4we Jun 19 2 005 4we Jul 1 7 20 05 4we Aug 14 2 005 4we Sep 11 2 005 4we Oct 09 2005 4we Nov 06 2005 4we Dec 04 2005 4we Jan 01 2 006 4we Jan 29 2 006 4we Feb 26 2 006 4we Mar 26 2006 4we Apr 2 3 20 06 4we May 21 2006 4we Jun 18 2 006 4we Jul 1 6 20 06 4we Aug 13 2 006 4we Sep 10 2 006 others 11GM bought at Php 9.50. However, since 2005, the trend of purchasing just 1 packaged soup (11 gms) has more than doubled and this phenomenon would most likely continue on as traders are adjusting towards shoppers buying habits, selling by the packaged soup and more shoppers are moving towards this direction as well.

Figure 2: Volume Share of 11 gms purchase

Source: Global Market Research

Currently, there is no SKU that addresses a single packaged soup purchase. Only traders’ own the initiative of opening a shell box (2 packaged soups) or a pantry box (6 packaged soups) and sell by the packaged soup. The current strategy can demand a bit more effort from the trader but they do not mind selling in ‘tingi’ so as long as they are able to sell more. As a risk due to this phenomenon, Sarap’s sales may experience a slight dip since shoppers who are accustomed to buying a shell box may resort to buying just a packaged soup and this immediately cuts Sarap’s sales into half. However, this threat may also be seen as a golden opportunity because packaged soups in a smaller format is something that is prevalent in other countries and this just might be the solution to this rising phenomenon.

4.1.2 THREAT: Decrease in Food Expenditure at the Expense of

Other Commodities

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From 1991 to 2003, family expenditures have been growing at a double digit rate per annum. If we look closely into this expenditure type, it can be drawn that food and housing is what families spend on the most – nourishment and shelter. However, unlike housing which is more stable in the 14% levels, +/-1%, food, specifically, food consumed in-home has decreased significantly at the expense of several expenditure types and shifting consumption from in-home to out-of-home. This is an indication of shifting behaviour or value wherein food is sacrificed for something deemed more important such as convenience, transportation and communication, personal care effects, and the like.

Table 1: Distribution of Total Family Expenditure by Major Expenditure Group

Source: National Statistics Office

In other countries, eating out and the shift of home-cooked meals to easy-to-prepare, ready-to-eat format defines in-home consumption. In the Philippines, though meals are important and is a big thing in so far as family members look

Expenditure Group 1991 1994 1997 2000 2003

Total Family Expenditures (in million pesos) 623 863 1413 1802 2005

Percent 100 100 100 100 100

Food 48.5 47.8 44.2 43.6 42.6

Food consumed at home 44.7 43.5 39.5 38.7 37.3 Food regularly consumed outside the home 3.8 4.2 4.7 5.0 5.3

Housing 13.5 14.1 15.3 15.1 14.3

Transportation & Communication 5.4 4.7 5.6 6.8 7.4

Fuel, Light & Water 5.7 5.5 5.3 6.3 6.5

Education 3.0 3.7 3.7 4.2 4.0

Personal Care & effects 3.3 3.2 3.3 3.6 3.9

Other expenditures 1.9 1.7 3.0 2.9 2.9

Clothing, footwear & other wear 3.7 3.5 3.3 2.7 2.9

Household operations 2.7 2.6 2.3 2.3 2.2

Miscellaneous Expenditure 3.4 3.6 3.4 3.3 3.7

Special Occasions 2.4 2.6 2.4 2.4 2.5 Gifts & contributions to others 1.0 1.0 1.0 0.9 1.2

Households furnishings & equipment 2.4 3.1 3.3 2.7 2.8

Taxes paid 1.4 1.4 2.5 2.1 2.2

Medical care 1.8 2.3 2.2 1.9 2.2

Tobacco 1.7 1.4 1.3 1.1 1.1

Alcoholic beverages 1.0 0.9 0.9 0.7 0.7

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forward to this occasion of eating together, it is an inevitable event that more and more people will be living a very fast paced lifestyle and time would just be so little to even have time to prepare and dine over a ‘home-cooked’ meal.

4.2 Socio-Cultural, Demographic, and Environmental

Forces

4.2.1 OPPORTUNITY: Significant Distribution of Households in

Visayas and Mindanao areas

Given the statistics (Year 2000) below at 2.5% year-on-year growth rate, the Philippine population is currently estimated to be 85 Million with 16 Million households nationwide.

Table 2: Total Philippine Population (Year 2000)

Source: National Statistics Office

The Philippines is known for its’ 7,107 islands scattered all over the different regions of the country - Luzon, Visayas and Mindanao. It is quite evident that each region has its’ own distinct culture. However, it is also the very distinct differences in culture that make up what the Philippines is in itself.

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There are millions of Filipinos residing in each region and what clicks in one region most likely differs in another. There is an obvious culture that dominates over each and this makes each one ‘unique’ in its own right.

With over 40% of the Philippine population in Visayas and Mindanao, there is a huge potential to make it big in these areas, just the way Luzon is being valued as the standard. However, if treatment for all regions is done in a national scale, it will not be appreciated as much in other parts of the country where it is very different (i.e. Visayas and Mindanao). Though there is the potential to be a big hit in the southern part of the country, one will only succeed if they are addressed in their own ‘tongue’, relating to them in their own ways.

Figure 3: Distribution of Household Population by Region

Source: National Statistics Office, Global Market Research

The different regions of the Philippines are evidently distinct from each other. Though one country, its culture is translated and brought to life ‘locally’. This is very much apparent in the different festivals, dialects, delicacies and the like of the local areas. Given this, there really is an opportunity for Sarap to look into each region as a distinct market in itself.

4.2.2 OPPORTUNITY: Fast-paced Lifestyle Calls For ‘Quick And Easy’

Dependable Solutions

% Distribution of Household Population by Region

14 13 21 21 21 22 21 20 24 24 1995 2000 Mindanao Visayas South Luzon North Luzon NCR

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It is inevitable that as time becomes more scarce, people would tend to look for ‘solutions’ that would help them continue what they used to or even do more amidst time constraints. This need would then be answered best by products that are seen to hinge on convenience as a selling proposition whilst quality and affordability are also important considerations especially to the Filipino market. In the latest retail audit done by Global Market Research, on analyzing shopper’s behaviour and category trends, it was gleaned from the study that several categories are out performing others primarily because of the aforementioned ‘must haves’.

Figure 4: Food Category Trends

According to the study, the reasons for the good performance of certain categories are due to the following:

 Introduction of new brands that come in convenient format and an affordable price allowed new users to get into the category or consumer needs are met.

 Introduction of new flavors allowed current users to increase their range.

 Downsizing as earlier mentioned in the growing trend of less but frequent purchases of shoppers/ consumers.

 Promotional activities that drive purchase

The study was also able to determine that the 5 consumer benefits that drive product launches are as follows:

FOOD TRENDS 2006

0 10 20 30 40 50 60 y og urt tea dri nk s pet foods flav orin gs ba by fo od s pi ri ts c off ee mi x es lol lipo ps s pa gh ett i s au c e pa c k ag ed s ou ps bi s c ui ts pa c k ag ed wate r ins tan t no od les ic e c rea m c ho c ol ate tomato pas te c ats up s oft dri nk s GROWING SLIGHTTLY INCREASING STABLE

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Source: National Statistics Office

LABOR FORCE % SPLIT BY GENDER

62 62 62 62 62 61 61 61 62 38 38 38 38 38 39 39 39 38 61 39 2 0 0 4 Q 1 2 0 0 4 Q 2 2 0 0 4 Q 3 2 0 0 4 Q 4 2 0 0 5 Q 1 2 0 0 5 Q 2 2 0 0 5 Q 3 2 0 0 5 Q 4 2 0 0 6 Q 1 2 0 0 6 Q 2 FEMALE MALE

The proportion of women in the labor force has increased

15-24

19 25-34

25 35-44

23 45-54

18 55-64

10 65 & Above

4 % FEMALE EMPLOYMENT

by Age- as of 2006 Q2

Employment rate among women is higher than men and half them are

between 25-44 yrs old

 Value for money

 Vanity

 Variety

 Availability

 Convenience.

Convenience is indeed a proposition that consumers will be vying for more and more since time is becoming scarce and the pressure of having to do what they used to or even more or better is definitely something people are worried about. This is also the case in cooking. There is less time to cook or room for error is no longer a luxury since every minute is valuable. But food is something that is said to be the glue that keeps the family together so it is very important that good food is served even if life has become extremely fast in a sense.

4.2.3 OPPORTUNITY: More Women are Joining the Work Force and

Becoming More Independent

Based from the National Statistics Office, the proportion of women in the labor force has increased and primarily because nowadays, dual-income households are becoming a common practice since sustaining a certain lifestyle has become quite a challenge. It has become normal for women to join the work force to help their husbands support the family, to earn and be independent altogether. Even the employment rate among women is said to be higher than the men and the age group of which is higher between 25-44 years of age. Probably because there is more to being a female - the available job would probably require the female gender or working attributes of that one.

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However, joining the work force does not excuse women from their roles at home which make it doubly hard for them to balance. To be a good wife and mother, she has to be able to keep up with the chores. Even if there is enough help around, it is still her who is responsible for managing everything. The typical household chores of a woman are to keep the house clean, do the laundry, to cook and a whole lot more. Cooking can be seen as a mundane household chore but this is where Sarap tries to come in and help. Whilst Sarap’s competitors say that the secret is in what you use therefore attributing it to their product, Sarap merely empowers the woman thereby branding itself as ‘A Woman’s Best Friend’. For Sarap, it is all about the woman.

4.2.4 OPPORTUNITY: Still ‘Low’ Dish Penetration of Packaged Soups

in Regularly Cooked Soupy Dishes

In the realm of cooking aids and dishes, packaged soups are said to be best for soupy dishes since a packaged soup format locks in the flavour of the broth that is crucial in every soupy dish base. Whilst it is also used in sautéed and saucy dishes, there are other cooking aids best positioned to work with these dishes.

Project Sarap is a month long usage, attitude & image study with diary method conducted by Global Research for Sarap Philippines that looked into cooking aids in dish preparation in the Philippines. It was nationwide in scope with about 1,100 female respondents from class ABCDE, aged 25-45 years old, purchase decision makers and in-charge of cooking at home.

Figure 6: Cooking Aids Penetration in Different Dish Types

Source: Project Sarap

FRIED 31% SAUCY 20% SOUPY 25% SINIGANG 6% SAUTEED 11% OTHERS 7%

The PENETRATION of packaged

soups

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The study reveals that out of all dishes prepared in a month, 25% are soupy and of which, only 12% has a packaged soup in it. If further quantified this would mean that out of a hundred soupy dishes, only 12 were prepared with a packaged soup. Hence, there is still a huge potential by increasing the penetration of packaged soups in soupy dishes. Probably, the most practical thing to do is to look into what kind of soupy dishes are actually being prepared and Sarap should increase the relevance of using packaged soups in these dishes so as to be made a part in the must haves in preparation of it.

4.2.5 THREAT: People are Becoming More Health Conscious

With the increasing importance of living a healthy lifestyle, individuals and manufacturers alike are becoming more conscious about what constitutes a certain product. This growing concern about what is good for you does not necessarily mean one would have to do away with all unhealthy food since it would be extremely difficult and quite impossible too. Sometimes, there is a compromise between health and pleasure as properly described in Datamonitor’s debit and credit lifestyle article.

DATAMONITOR’S VIEW:1

 In balancing health and pleasure consumers are moving towards a debits and credits lifestyle

Increasingly informed consumers have become more aware of the link between diet, health, well-being and performance. However, in an increasingly individualized, high-paced and pressurized society, health intentions often collide with the need for moments of escape, reward and comfort. As consumers become more informed about health issues, they are accommodating the conflicting needs in an increasingly calculating ‘debits and credits’ approach to their lifestyle.2

 In a debits and credits world ‘occasions’ becomes key

Consumer behavior continues to polarize between a focus on functionality, convenience and health at more routine moments and pure uncompromising indulgence at special, escapist or reward occasions. As a result, it becomes

1_{DATAMONITOR Market Analysis Experts Future Briefings Debit and Credit, Balancing health and}

pleasure

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increasingly important to look beyond the traditional one-dimensional focus on ‘consumer groups’ and towards ‘consumer occasions’.3

For cooking aids, wherein MSG or sodium content are being watched out for, consumers would be pleased to know that manufacturers are conscious of the allowable dosage in every unit. There are several wellness campaigns from different manufacturers that would promote what is ‘good for you’. In the case of MSG, according to expert opinions on monosodium glutamate by Steve L. Taylor, Ph.D. and Susan L. Hefle, Ph.D. of the Food Research Allergy and Resource Program, Institute of Agriculture and Natural Resources of the University of Nebraska, Lincoln:

“MSG is a flavor enhancer that is added to many foods but which also occurs naturally. MSG is the sodium salt of one of the most common amino acids in

the human body… MSG occurs naturally in virtually all foods.”4

4.3 Technological Forces

4.3.1 OPPORTUNITY: Increasing use of the Internet

Internet usage in the Philippines has been growing rapidly although penetration rate still remains low. Statistics on the country’s Internet usage are important decision-making variables for the government and companies doing business in the Philippines. Companies in the cooking aids industry are able to create websites that give customers nutritional information as well as a variety of recipes that use their cooking aids to create nutritious and delicious meals.

4.4 Political, Legal and Government Forces

4.4.1 THREAT: Political Instability

Because of its history of people power and various EDSA uprisings, the Philippines is considered politically unstable. Charges of graft and corruption are constantly

3_ibid

4_{DATAMONITOR Market Analysis Experts Future Briefings Debit and Credit, Balancing health and}

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being hurled at the current government and while the president controls the congress the possibility of impeachment though distant still looms over her. The extent of graft and corruption throughout the government poses a threat to multinational companies like Sarap who import many of the ingredients.

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5 Industry and Competitive Analysis

5.1 Industry Analysis

5.1.1 THREAT:

Growth of the Flavorings Category whilst the

Packaged soups Category is Flat

The packaged soups industry is Php 2 Billion in size. According to Global Market Research’s Advisor, the packaged soups market has been experiencing a slight setback as far as category growth is concerned, primarily because of the shift of the growth to the flavorings category which is currently Php1 Billion in size and is growing aggressively.

Figure 7: Basic Seasonings Category Growth

Source: Global Market Research Advisor

The aggressive and rapid growth of flavorings is really a huge threat to the packaged soups industry, especially to Sarap who happens to be the market leader in packaged soups and happens to be a third player in the powdered flavorings category. Category Sales -50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 Jan 2005 Feb 2005 Mar 2005 Apr 2005 May 2005 Jun 2005 Jul 2005 Aug 2005 Sep 2005 Oct 2005 Nov 2005 Dec 2005 Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Cubes Flavorings +68% MAT Growth +68% MAT Growth 0% MAT Growth 0% MAT Growth Soup

Soupand Flavorings Category Growthand Flavorings Category Growth

Jan 2005

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Source: ACNielsen Philippines Retail Index

Figure 8: Flavorings Business Size in the Philippines

With a flavorings market rapidly growing and a packaged soups category that is flat, flavorings might sooner or later overtake the packaged soups market and this is not far from happening since it has already happened in other countries, where powdered flavorings were able to overtake the packaged soups business as far as market dominance is concerned. This event might also happen in the Philippines. In fact, the very phenomenal birth and aggressive growth of flavorings into the market mimics exactly what transpired in other countries. However, unlike the Philippines who sees this coming, other countries did not have any hunch of what was happening to their basic seasonings business.

This is a similar threat being faced by the Sarap packaged soups business in the Philippines but with the familiarity of this occurrence, it is able to ready itself to defend its market leadership in the packaged soups category.

5.1.2 OPPORTUNITY: Lack of Differentiation Amongst Cooking Aids

Brands

In the minds of consumers, there is the need to reinforce branding and communication since differentiation amongst existing cooking aids brands is weak. Though there has been a lot of work done to help consumers distinguish which is which, there still lies the opportunity to really dominate and furthermore, own the category in the minds of our consumers by a single-minded strong brand proposition.

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5.1.3 THREAT: Versatility Proposition of Competitors

Appropriate for any kind of dish and suitable for everyday cooking needs are versatility characteristics that competitors, both Misan and Yummy want to own in the minds of consumers. Whereas Sarap’s strategy is focused – packaged soups for soupy dishes and flavorings for meatiness, criteria is very distinguished from the rest and this is evidently shown when consumers are able to associate Sarap with these characteristics.

Figure 9: Brand Image Profile

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Threat of New Entrants LOW Rivalry among Existing Competitors HIGH Threat of Substitute Products HIGH Bargaining Power of Buyers LOW Bargaining Power of Suppliers LOW

5.2 Five Forces of Competition Model

In evaluating the Sarap Philippines packaged soups retail business using the five forces of competition, it can be said that there is no middle ground in this category. Primarily because of the complexity, there is low threat from new entrants, whilst both buyers and suppliers have low bargaining power. The real and bigger threats are those that come from substitute products and somehow, from existing competitors as these are one in the same companies that manufacture both commodities. This is also probably the same five forces evaluation of any fast moving consumer goods product such as the packaged soups.

5.2.1 Threat of New Entrants: Low

Entering into the packaged soups business would require huge capitalization because not only does it entail some sort of technology that can actually transform all the ingredients into a ‘packaged soup’ but the whole production line that would eventually yield the finished goods. Also, other corresponding support that it would require to ensure success in bringing it to market would also mean more investment and resources.

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A new entrant would be competing with the big players, well-entrenched into the market and are actually brands of stable multinational companies such as Sarap, Yummy and Misan.

Given this, it only means that the players in the market are well aware of their position vis-à-vis existing players in the industry. They are able to manage competition and the market may be considered as ‘sizeable’, measurable or for the market leader, Sarap is able to confidently say that they are the market. However, it may also run the risk of underestimating new players to come in and give them a run for their money.

5.2.2 Bargaining Power of Buyers: Low

Most consumer goods products have the liberty to ‘design’ their brand mix without limitations or subject to the mercy of buyers as long as it is sound enough. By ‘sound’ it simply means that the mix is designed for the right target consumer and this is most evident in the 4 P’s of marketing – product, price, place and promotion.

However, for a consumer goods product such as Sarap, the inputs of buyers are still held important. This is most evident in the way it values feedback for a product that is just about to be brought to market, a product that is already out and doing very well and most especially for a product that is on the rocks. The danger with this is that if buyer’s inputs, customers and consumers alike are taken for granted, the brand mix put together just might be ‘off’ as far as filling in the gap or answering a consumer need is concerned.

5.2.3 Bargaining Power of Suppliers: Low

Regional sourcing is enjoyed by brands that are managed by multinational companies because these companies have the muscle to put together volumes from several countries all over the world and use it as a leveraging factor to get the best deals from the supplier or country from anywhere in the world. Given this worldwide phenomenon brought about by free trade, it makes it easier and cheaper for the manufacturer to acquire the raw materials and other supplies it needs to produce the finished goods where it is cheapest then produce it in the

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market that would also be wisest in terms of cost and regulations which then yield the finished goods that will be shipped and sold to the different markets all over the world.

In the traditional buying practice by manufacturing companies, they are able to have and sustain partnerships with their suppliers. Partnership may be in terms of the bargain price given to them and other non-monetary terms as well such as customer service, the sharing of the same vision, and the like. This is quite difficult or it becomes more challenging given that the suppliers in the new world are separated by bodies of water. Hence, the relationship becomes purely supplier-principal in nature.

5.2.4 Threat of Substitute Products: High

Every consumer product should always innovate and want to be better not only because it is a promise it has made to its consumers the moment they brought their product to market but there is the reality that substitute products will always try to make customers switch to a cheaper or better alternative.

It can be said that the packaged soups business is ‘under-attack’ by the powdered flavorings category. This new player is a big threat since it is aggressively growing and eating up into the shares of the packaged soups market. When this happens, value lost is a risk that the packaged soups market is faced with because it means there is not much differentiation in terms of ‘usage’.

5.2.5 Rivalry Among Existing Competitors: High

With the whole competitive activity of stealing shares from competitors, the very existence of competition motivates all players to be the best there can be in the category. Continuous improvement is definitely an advantage that consumers can expect from their leading brands since battling with other big players in the category is an everyday reality that every brand wakes up to. Sarap’s dominance in the category is something that is very much valued and watched out for by the brand management team.

In a high-heat category such as packaged soups, brand switching is not a far-fetched possibility since this is a very vulnerable category. Vulnerability in the

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sense that once one stops making noise or buzz in media or on-ground, further aggravated by competition, shares are sure to be at risk.

The fact that Sarap is always present above-the-line or running some activity in-store, shows it wants to always stay top of mind amongst consumers. Women refer to it as their ‘best friend’ in cooking. Oftentimes, it is part of their ingredient list and this is because Sarap has always reminded women about the value of Sarap packaged soups. This place however can and will be easily foregone if competition such as Yummy and Misan, both two big and very able players decide to give Sarap a run for their money. At the end of the day, all these are brands that claim to be the best and say that they have the ability to deliver the results. It only takes a consumer to try and experience it once for them to decide what brand to continue purchasing. Also, losses cannot only be quantified for current markets but for possible new category entrants as well.

5.3 Competitive Profile Matrix (CPM)

CRITICAL SUCCESS FACTORS Wt

Sarap Misan Yummy

Rating Score Rating Score Rating Score 1 Product Quality & _Performance 0.30 4 1.20 2 0.60 3 0.90 2 Effective Sales _Distribution 0.20 3 0.60 2 0.40 1 0.20 3 Market Acceptability 0.15 4 0.60 1 0.15 2 0.30 4 Brand Management 0.10 4 0.40 2 0.20 2 0.20 5 Customer Loyalty 0.15 3 0.45 2 0.30 2 0.30

6 Pricing 0.10 2 0.20 4 0.40 3 0.30

TOTAL 1 3.45 2.05 2.20

Note: weight score: 0.0 (not important) to 1.0 (very important)

Rating score: 4= major strength, 3= minor strength, 2= minor weakness, and 1= major weakness

In determining competitive superiority of the players in the category, the following critical success factors have been identified:

1. Product Quality & Performance: The true measure of a brand’s commitment to deliver what the consumer expects because products are bought or in marketing they say brands are ‘hired’ to answer a need. Hence, the utmost consideration for

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a product’s success is its ability to play the part which is mirrored in its quality and performance.

 Sarap packaged soups was able to garner market leadership primarily because of product quality and performance. In several consumer tests, it does not fail to deliver the best ‘broth savouriness’ results vis-à-vis competitors and so it got a score of 4.

 Yummy packaged soups is a far second player in the packaged soups category.

It got a score of 3 only because in the absence of Sarap, it will be the go-to brand to fulfill the need for packaged soups especially in broth preparation.

 Misan got a score of 2 because though it is categorized to compete in the packaged soups market its format is in powder form and the distinct qualities of a packaged soup versus powder are quite obvious which is why the whole ‘Sarap’ campaign of Sarap worked.

2. Effective Sales Distribution: The key to success for a consumer goods product such as the packaged soups is availability in all channels. In the Philippines, downline channels such as sari-sari stores are very crucial. Whereas other channels such as supermarkets, groceries and market stalls also play a significant role for it caters to a different set of shoppers.

In Global Market Research, effective sales distribution is actually measured by what they call Numeric In-Stock or NIS. With a given universe, it will give you data on how widely distributed your product is. Another tier of analysis on effective distribution is the Weighted In-Stock or WIS reading which will generate quantities in each distribution point. An indication of whether or not there is enough stock cover on-shelf or in the stock room.

An account’s acceptability however greatly depends on offtake. This is sometimes referred to as secondary sales, our customer’s sales to their customers (our end-consumers). Indirectly, offtake is also indicative of shelf turnover, how often do retailers replenish their stocks on-shelves. No retailer would be willing to purchase products that are slow moving or worse, not moving at all because their shelves would be useless in terms of income generation. This may be the case for products that are not relevant, hence, do not fill in a need or in most cases the demand for

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that product is being monopolized by a bigger player as the case with Sarap packaged soups.

Figure 10: Numeric In-Stock Trended Comparison by Channel

 Sarap got the highest score because it dominates the market and is more often than not present in all channels. In fact, if there was only one brand being carried by the trader, it would surely be Sarap. However, it only got a score of 3 because there are still opportunities for improvement as far as distribution is concerned, most especially in downline channels. This is because of practical reasons - Sarap’s distribution strategy does not rely on direct distribution only to get its products in the stores of all of the accounts especially far-flung downline channels. Its distributor’s profitability is compromised beyond a certain proximity limit. Thus, Sarap had to explore other ways and means to get its products in the most crucial channels (i.e. sari-sari stores).

Team Sari Sari is an in-direct distribution (IDD) strategy that caters to sari-sari store owners who prefer to buy their stocks from nearby groceries rather than being serviced directly by cash van sales. This solution does not only provide answers to Sarap’s distributors profitability dilemma but rather it was also able to give the sari-sari store owners the liberty to come and go or rather, purchase what they need and when they need it. Furthermore, since Sarap’s Team Sari Sari is targeted to a captured and relevant market (sari-sari store owners), they were able to design the whole program in such a way that it talks to them in a manner that would be clearly understood and appreciated. It was designed to be a free membership and earn points whenever you buy type of scheme. Thus, even the prizes for redemption are exactly what the sari-sari store owners want and need. This is a brilliant way to temporarily hold off the

Junichero Vane Blair

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need to cover stores directly. However, there is still no substitute for direct coverage because it not only allows one to sell per se but rather, it also gives Sarap the edge to merchandise and to create partnerships with traders through our regular visits. Eventually, this is still the direction where Sarap distributors want to lead to as a key distribution strategy. It is just a matter of time or rather a strengthening of portfolio that needs to be done so that with every trip, it is well worth the distance because Sarap’s distributors would have sold a significant amount because most if not all the products they carry are relevant in the eyes of its traders or more importantly, to its trader’s customers, its end-consumers.

 Yummy packaged soups and Misan both got a score of 2 because though these

brands are carried by companies that also have the muscle or the capability to distribute, they lost against Sarap for the reality that oftentimes, trader’s have a limited budget and since Sarap is pretty much the category in itself or has the greatest demand, the trader would tend to just purchase Sarap. It still got a score of 2 because there are also some traders who would want to have at least 2 or 3 other brands apart from the market leader in their shelves to be able to also cater to customers of Yummy and Misan or for new customers, to give them a choice amongst the 3 category players.

3. Market Acceptability: An indication of a brand’s success is market acceptability. It signals dominance and stronghold into the category. More importantly, market acceptability is also an indication of consumer trust in the brand.

 Sarap packaged soups is market leader in the packaged soups category with over 90% market share it got a score of 4.

 Yummy packaged soups got a score of 2 because it is next to Sarap with an

estimated 8% market share.

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Figure 11: Market Shares (Packaged soups Market)

4. Brand Management: A brand’s performance is highly dependent on the marketing plan that companies design for it. Plans are dependent on company strategies. Not all plans are actually geared to succeed, some are designed to fail. As absurd as it may sound but brands, especially those that are part of a portfolio are managed to play a part in the bigger scheme of things or rather, to deliver not just brand targets but more importantly, business targets. Brands are a means to achieve and resources are allocated to do brand management. Whilst brand management may pertain to only managing a brand or a portfolio of brands, there are also ways on how to go about it especially given dynamic times, companies should be flexible enough to adapt to changing times versus traditional ways of doing things.

 Sarap is the biggest food brand and the packaged soups category is considered to be the core category being managed under the Sarap brand. This is a highly valued brand and category so the company gives more than what it requires to ensure superb brand management. Given the new structure, Sarap got a score of 4. This is needed in order to compete. On people resources, the local Sarap brand management team or brand building team comprise of a group brand manager with several brand managers that manage the different categories of Sarap and a particular region as well. On packaged soups alone, it has a brand manager looking after the whole range and a dedicated resource looking after a specific variant for a specific region. In conjunction to this local structure, Sarap, being multinational in nature has brand development counterparts in the region who ensure that all details pertaining to the brand are tied-up to the global brand strategy.

Junichero Vane Blair

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 Yummy packaged soups got a score of 2 because the brand Yummy is just managed as one of the many brands bulked together in the food and culinary milks business unit wherein there is a head leading the team, under him is the food group product manager who has respective managers for the different categories – meal solutions, flavor world, noodles, etc. Depending on the size of the category, assistant brand managers and executives are assigned.

There is no marketing director, since each business unit operates on its own and reports directly to the CEO. This structure is unique but tends to be missing out on the opportunistic advantages that one category can benefit from another since the business units are separate entities altogether and the only point of reconciliation is already at the CEO’s level whose concern is too many.

 Misan got a score of 2 because the way the brand management team is structured is still a bit on the traditional side though wisely integrated between sales (category) and marketing (section). These functions are supported by brand managers, assistant brand managers and brand assistants. The brand manager may directly report to the marketing manager in the absence of a section manager whose function directly relates with the end consumer whilst the category manager in the sales function coordinates directly with trade marketing for trader concerns.

5. Customer Loyalty: With the proliferation of all sorts of media and on-the ground activities, loyalty is so easy to win and lose. Even though market shares are high and would seem to be stable enough, it still faces a lot of risk. It has been said that it is easier to make a customer stay because all you have to do is to keep them happy whereas, if you lose a customer, it would be more difficult to win them back or to look for new ones.

 Sarap packaged soups got a score of 3 for it is able to satisfy and retain its customers.

 Yummy packaged soups has a following and so it got a score of 2 being second

player next to Sarap.

 Misan also got a score of 2 because interestingly enough, this player has a niche market following and probably because of its product design, an Misan variant for a particular soupy dish. With this strategy, it was able to create and

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sustain its own market somehow different from that of what Sarap and Yummy currently caters to.

6. Pricing The only criteria where Sarap got a 2 rating is in pricing. Below is a summary of competitive pricing for comparison:

Table 3: Comparative Price List

BRAND / DESCRIPTION Price Per Case Incl. Tax (LPAT/cs) Price Per Piece Incl. Tax (LPAT/pc) SRP (per pc) % Trade Margin Absolute Trade Margin

SARAP (as of October 2006)

SARAP PACKAGED SOUPS

PACKAGED SOUP 12X24X22 G 2,523.25 8.76 9.50 8% 0.74 PACKAGED SOUP PANTRY 72X66 G 1,886.98 26.21 28.00 7% 1.79

YUMMY (as of Feb 2006)

YUMMY PACKAGED SOUPS

PACKAGED SOUP 12X24X22 G 2,345.88 8.15 9.20 11% 1.05 PACKAGED SOUP PANTRY 72X66 G 1,686.10 23.42 25.50 8% 2.08

MISAN (as of Feb 2006)

MISAN

PACKAGED SOUP 12X24X22 G 2,328.40 8.08 9.20 12% 1.12 PACKAGED SOUP PANTRY 72X66 G 1,678.20 23.31 25.20 9% 2.19 Source: Sarap Foods Trade Marketing Group

Sarap’s pricing is affordable but in comparison to its competitors, it is the most expensive, both for the trader and the consumer. For the same commodity, the trader would have earned more since the margins are bigger with Yummy and/ or Misan, whilst the consumer would have spent less. However, since Sarap has established its category superiority well enough, consumers are willing to pay a bit more for a trusted brand such as Sarap packaged soups and traders are willing to lose a few centavos compensated by volume sales.

5.4 Competitors

There are 2 major competitors considered in the packaged soups industry and these are Yummy packaged soups manufactured by Yummy Philippines Inc. and Misan. However, posing as a huge threat to Sarap’s packaged soups business and market leadership more than its existing competitors in the category are

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flavorings, of which Misan is the market leader with 67% market share and Yummy is a far-second while Sarap ranks 3rd_{in this category.}5

Whilst market shares indicate positions in the category, this is further defined by the growth registered by each player. Hence, not only is the category in itself expanding but the players, due to its own efforts as well also pose huge growth themselves.

In terms of communication, it had become so difficult for consumers to tell the difference already since airwaves are bombarded by the same thing and hence creating enough jolt to really make the market react in a way that made the flavorings grow at a very rapid pace.

In 2006 alone, there had been so many activities done by the 3 players both above-the-line and below-the-line, making competition stiffer than ever before and as a result, Sarap’s shares suffered in light of not just packaged soups but combined packaged soups plus flavorings.

Figure 14: Combined Packaged soups+ Flavorings Shares of Each Player

5_{Global Market Research Advisor}

65 24 11

Combined Basic Seasonings Shares of Each Player

Jan 2005

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5.4.1 Misan Corporation

In Misan’s company profile, it is said that their passion is to produce the best food seasoning in the world and make it available in every Filipino home. In 1962, Misan was locally produced. Misan Flavor Mix was launched in 1991.

Today, Misan Philippines Corporation ranks as one of the top 200 corporations in the Philippines. Misan’s network has grown to 8 regions overseeing the operations of 31 sales stations and 9 depots. Misan’s slogan is associated with good food and good life.

5.4.2 Yummy Philippines, Inc.

In Yummy Philippines, Inc 2005 corporate profile, it is said that Yummy is proud to bring the best food throughout the stages of Filipino consumer’s lives. When it started in the 1960’s, Yummy used to distribute several categories that are not necessary in line with food just to keep the company afloat due to strict government regulations on importation. In 1988, Yummy became a wholly owned subsidiary brand by Yummy SA. “Today, Yummy produces and markets products under some of the country’s well known brands. Its product range has expanded to include coffee, milk, infant nutrition, infant food, beverages, non-dairy creamer, food, ice cream and chilled dairy, breakfast cereals, confectionery, and pet care. Over time, Yummy’s quality and affordable products have become strong brands, number 1 or number 2 in their various categories, and a part of the Filipino way of life.”

Competitive rivalry amongst the three multinational companies is very professional. In fact, the dynamic activities and creative of which may be greatly attributed to the healthy competition that these players pose against each other. The very brands and the categories that are being considered in this study experiences the typical yet expected surprises in any competitive game.

Sarap despite being market leader experiences a lot of challenges mostly due to the Yummy and Misan’s expertise in the category. This puts more pressure to the leading brand because it cannot afford to slip in any way or else competition may do some drastic moves that may take away its reign and leadership.

Yummy being a far second player’s strategy is to not allow Sarap to monopolize the market. For years now, it has kept its packaged soups in the market despite

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the difficulty to grab share from Sarap. It has not had any massive campaign over packaged soups but through brilliant basics – availability in retail channels, it has established its presence. It also tries to be a strong player in other categories as a way to attack Sarap’s core business. They have been fairly successful with it with Sarap which has tremendously grown even faster than the whole category.

Misan on the other hand is an Misan brand that is more of a niche market player. This may be just 2% of the market now but it should be taken for granted as this is also how Misan started too. Knowing especially that Misan’s expertise is in savoury and cooking aids, it is a given that Misan very well knows this game.

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6 External Factor Evaluation Matrix (EFE)

Key External Factors

Weight Rating Weighted _Score

OPPORTUNITIES

1-E Less but frequent purchases of goods by _consumers 0.05 2 0.10 2-SC Fast-paced lifestyle call for 'quick and _{easy' dependable solutions} 0.15 4 0.60 3-SC More women are joining the work force _{and are becoming more independent} 0.10 3 0.30 4-SC Significant distribution of households in _{Visayas and Mindanao areas} 0.10 2 0.20 5-SC Still low 'dish penetration' of packaged _{soups in regularly cooked soupy dishes} 0.05 3 0.15 6-C Lack of 'Differentiation' amongst cooking _{aids brands} 0.10 2 0.20 7-T Increasing use of the internet 0.05 3 0.15

THREATS

1-E Decrease in food expenditure at the _{expense of other commodities} 0.05 2 0.10 2-SC People are becoming more and more _{health conscious} 0.05 2 0.10 3-C Growth of the flavorings category 0.15 2 0.30 4-C ‘Versatility' proposition of competitors 0.10 2 0.20

5-P Political instability 0.05 1 0.05

TOTAL EFE SCORE 1.00 2.45

E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive

OPPORTUNITIES

1-E Less but frequent purchases of goods by consumers

Sarap’s rating of 2 is due primarily to the ‘dilly-dallying’ position it has consciously taken since it is one reality that they are not riding on just yet especially with the ‘tingi’ phenomenon growing and it clearly is a manifestation of downsizing in purchasing habits of basic commodities. It remains to be an opportunity because in

2014 Sarap Sample Strama

Submitted by Your Name

July 1, 2014

Ateneo Graduate School of Business

A Strategic Management

Paper

for SARAP

Table of Contents

Executive Summary

1 Introduction

2 Research Design & Methodology

Methodology

Summary of Frameworks, Tools, Activities and Outputs

for this Strategic Management Paper

Framework

Tools

Activities

Output

3 Vision & Mission

3.1 Current Vision and Mission Statement

3.1.1

Vision

3.1.2

Mission

3.1.3

Review of the Current Vision and Mission

Statements

Vision

Revised Vision and Mission Statements

3.1.4

Vision

3.1.5

Mission

3.1.6

Review of Sarap’s Revised Vision and Mission

Statements

Vision

The vision and mission should be cascaded to the employees of

Sarap by hanging posters of it in strategic locations in the office,

making it part of the orientation and posting it on the website.

PENETRATION%

4 External Assessment

4.1 Economic Forces

4.1.1 OPPORTUNITY : Less but Frequent Purchases of Goods by

Consumers

4.1.2 THREAT: Decrease in Food Expenditure at the Expense of

Other Commodities

4.2 Socio-Cultural, Demographic, and Environmental

Forces

4.2.1 OPPORTUNITY: Significant Distribution of Households in

Visayas and Mindanao areas

4.2.2 OPPORTUNITY: Fast-paced Lifestyle Calls For ‘Quick And Easy’

Dependable Solutions

FOOD TRENDS 2006

15-24

19

25-34

25

35-44

23

45-54

18

55-64

10

65 & Above

4

% FEMALE EMPLOYMENT

by Age- as of 2006 Q2

4.2.3 OPPORTUNITY: More Women are Joining the Work Force and

Becoming More Independent

4.2.4 OPPORTUNITY: Still ‘Low’ Dish Penetration of Packaged Soups

in Regularly Cooked Soupy Dishes

4.2.5 THREAT: People are Becoming More Health Conscious

4.3 Technological Forces

4.3.1 OPPORTUNITY: Increasing use of the Internet

4.4 Political, Legal and Government Forces

4.4.1 THREAT: Political Instability

5 Industry and Competitive Analysis

5.1 Industry Analysis

5.1.1