Executive Summary

Sugar is an inseparable element of our food habit. As population of the Philippines grows,

demand for the sugar is on the rise. The change in the income and purchasing capacity has

contributed further to the change in demand. According to Food and Agriculture Organization of

the United Nations Statistics Division, the Philippines holds the ninth rank in sugar production

with estimated production level of more than 2.4 million metric tons (MMT). According to the

Philippine Sugar Regulatory Administration (SRA), sugar demand from 2012- 2013 increased

slightly to 2.15 MMT from 2.13 MMT as industrial users reacted positively to stable prices.

Industry contacts expect consumption to continue rising in 2014 due to strong economic growth

and a rapidly developing food processing industry. The sugar industry is an agrarian based

industry and therefore has a crucial role in the Philippine economy which is still agrarian in nature.

The industry also contributes in rural development and strengthens the growth of industries in

rural parts of the nation. The sugar industry not only provides sugar but also has several

byproducts such as Molasses, power and chemicals. Hence it could be said that this industry could

be said as a driver of the national progress if thoroughly developed and supported by the

government.

From a marketing perspective, sugar industry offers a diverse set of areas to look into.

Apart from having conventional functions like global competitive landscape, marketing strategy

and marketing, it also offers an insight into forecasting, cyclicality management and a lot more.

For this purpose we have focused on CANESA Sugar Central. The facility which started its

operation in 2014 is located in Brgy. Parian, Sigma, Capiz under Region VI and is a fairly new

player in the sugar industry in the region. In addition to these primary data, we have also referred

to a number of secondary sources such as the annual report of the company, government sites,
reports produced by various agencies. The data were collected and analyzed by the group on

various functions such as market influencers, marketing strategy, strategic models, future demand,

life cycle and others. These functions would give us a holistic view of the company and its

positioning in the market.

The descriptive analysis is done on qualitative parameters and based on the information.

The future outlook is also provided to assist the further course of action. These recommendations

are given considering the overall strategic view of the plant and the details would also help in

reinforcing or altering the existing management decisions or may even give an entire

transformation. For this study purpose we have concentrated on sugar product only- specifically

the muscovado sugar.

Objectives of the Study

The study aims to:

 To analyze the attractiveness of the sugar industry

 To study the marketing strategy and various models of the CANESA Sugar Central and its

product Coco Muscovado

 To assist in company in decision making and strategy formulations

As a part of our study, we have visited the CANESA Sugar Central plant to gain a deeper

insight about their operations. In addition to these primary data, we have also referred to a number

of secondary sources such as the annual report of the company, government sites, reports produced

by various agencies. The data were collected and analyzed by the group on various functions such
as market influencers, marketing strategy, strategic models, future demand, life cycle and others.

These functions would give us a holistic view of the company and its positioning in the market.

The descriptive analysis is done on qualitative parameters and based on the information.

The future outlook is also provided to assist the further course of action. These recommendations

are given considering the overall strategic view of the plant and the details would also help in

reinforcing or altering the existing management decisions or may even give an entire

transformation. For this study purpose we have concentrated on sugar product only- specifically

the muscovado sugar.

CURRENT MARKETING SITUATION

A. Internal Analysis

The Canesa Sugar Central Plant‘s History

The Canesa Sugar Central started in 2007 through the efforts of the sugarcane

farmers of Brgy. Parian Sigma, Capiz. Prior to the birth of Canesa, the farmers were mostly

scattered and found it difficult to sell their produce due to the lack of facilities and

resources. Because of this, the mayor decided to assist the farmers in uniting themselves

to form a cooperative. To further empower the farmers in their livelihood, the mayor also

invited investors and thus, led to the construction of the Sugar Mill.
 The construction for the sugar mill began on 2008 through the efforts of different

investors namely Nestor Coralde, Maria Andaya, Lilia Grino and Melvin Caporal. With

the support of the local and provincial government, a sugar processing plant was

constructed along with an estimated 150 hectares of agricultural land devoted to sugar

plantation and organic fertilizer production. The plant became operational on 2014 and

production trials have started since then. As for the farmers, the Canesa Management

decided to be the buyer of all their produce under the condition that certain standards are

met in order to ensure that the sugar being produced is of high quality and chemical free.

In return, farmers are also given job opportunities for within the sugar mill itself.

Canesa Sugar Central firmly believes that in order to maintain the quality and

standards of its product, it is important to be sensitive to the needs of the people who made

it all possible, the farmers.

Vision

The company’s vision is to be the Region’s main producer of Muscovado using the

most advanced technology in the world.

Mission

The company’s mission is to improve the country’s agricultural industry through

continuous process innovation and influence higher productivity among farmers in the

nation.

Current Product Situation

 Muscovado is pure whole, unrefined, non-centrifugal cane sugar. Muscovado

retains all of the natural ingredients of sugar cane, making it wholesome and healthy. Only

pure bee's honey can compare to Muscovado for natural goodness. The nutritional qualities

alone are quite exceptional and can be compared with honey.

The Canesa Sugar Central is producing an organic, chemical free and nutritious
muscovado sugar as labelled. Muscovado is not centrifugal, retaining the molasses in the
final product and thus giving it its unique flavor and aroma. Since the molasses contains
vitamins and minerals, the "crude" process by which muscovado is produced ensures its
higher nutritive value compared to refined sugar. Aside from being a healthy alternative
to white sugar, muscovado is used in making local sweets and specialty breads and
delicacies, and is a favored sweetener in making chocolate, its natural color and flavor
allowing confectioners to do away with artificial colors and flavorings.
There are three types of muscovado produced including Class A (golden brown), B
(brown), and C (wood brown)
The current frequency of production is 8 days a month only, with approximately
160 sacks which is equivalent to 6,400 kilos per month and a total of 76,800 kilos per
year respectively as presented in Table 1.

Table1: Current Production Capacity

Frequency of Monthly Monthly Annual
Production per Production Production Production
Month (Per Sack @ 40 kg) (Per kg) (Per kg)
(No. of Days)

8 160 sacks 6,400 kg. 76, 800 kg

Currently, Coco Muscovado is sold in the size of 500g. Coco Muscovado sells three

varieties of sugar. Class ‘A’ is much more refined in texture and is sweeter compared to

the other sugars. Class ‘B’ is similar to Class ‘A’ texture-wise, the taste of Class ‘B’ is

earthier and is closer to the taste of molasses. Class ‘C’ has the tendency to undergo caking
 and contains a few miniscule muscovado rocks. Class ‘C’ has the earthiest flavor, the least

sweet, and the closest to the taste of actual molasses.

Strategic Directions

The company’s goal is to produce more Muscovado Sugar by increasing the

production from 76,800 kilos annually to 115,200 kilos in order to accommodate the

nation’s demand in the next five years. In addition, the company plans to invest in

promotions, and product innovation and to develop a strategic distribution channel to

further expand the availability of the product in the country and for the firm to compete

globally. However, the company still needs a thorough study prior decision-making and

one major hindrance for this is the fund availability.

Market Focus

Since the day that the company started to operationalize, its main target market

included the public markets in the entire province of Capiz. However, the actual market

focus turned out to be only limited to nearby towns in Ivisan and Sigma and the vast area

of Capiz is not even penetrated by the Muscovado Product.

B. External Analysis
 Macro Environmental Analysis

PESTE Opportunities Threats Marketing Implications of

PESTE
Political Legal
 RA 10659  Improved  Reduction in  More competitive
(Sugarcane conditions for tariff exposes the product offerings from
Industry the maximization industry to neighboring ASEAN
Development Act of the competition from states
of 2015) Philippines larger industry  Increased
 ASEAN Free sugarcane players from competitiveness of the
Trade Agreement resources neighboring sugarcane industry
 Reduction in ASEAN states  Improving efficiency of
tariff sugar mills
Economic
 On annual basis,  For crop year  Import duty has  Price adjustments in
production of 2013-2014, its fallen to 5% this order to combat
sugar contributes contribution to year competition from
about 69.7 billion the national ASEAN states
pesos to the economy, value-  Improving economies
national GDP with added tax (VAT) of scale with the
Value Added Tax on tolling and effectivity of RA 10659
(VAT) collection VAT from the
for the sale of sale of refined
refined sugar sugar amounted
reaching over 1.92 to P88 billion
billion pesos  The business
yearly will greatly
increase the
income
producing
capacity of the
municipality
Socio-Cultural
 The sugar industry  Sugarcane  Younger  Higher emphasis on the
provides Industry generation significance and
employment to no Development continually attractiveness of the
less than 700,000 Act provides for seeking white- sugar industry
Filipinos spread improving the collar jobs  The product encourages
across 23 sugar- incomes of a more health conscious
producing farmers and farm approach on using
provinces in the workers through sweeteners.
country product
diversification
 and job
generation
 The business
enriches the
main product of
the barangay.
Technological
 Department of  Improved  There are many  Monitoring the proper
Science and productivity of under-utilized utilization of 50% of
Technology sugar mills mills. the allocation of the P 2
conducting across the  Sugar farms in Billion, sugar industry
research on country. Thailand are development fund
advanced sugar more towards infrastructure
production, power mechanized, support and 15% of the
generation with a said fund for Research
technologies. coordinated and Development
supply chain,  Research and
and operates development allows for
with excellent a scientific approach on
roads, highways analyzing product
roads and ports. composition.

Environment
 Water shortage  The chemical  Unforeseen  Better contingency
due to supply free nature of the weather plans for sugar cane
disruption product conditions lead planting.
 Constant extremes minimizes to sugarcane  Safer and huge water
weather environmental supply tanks for storage
conditions, such as contamination disruptions.
droughts and caused by
floods producing other
types of sugar.

The table above shows the PESTE Analysis for CANESA Sugar Central and Coco

Muscovado Sugar. Political-legal, economic, socio-cultural, technology and environment are

keenly identified through examining the opportunities and threats come along with each factor. It

could be drawn that with the implementation of RA 10659 and ASEAN Free Trade Agreement,

there will be the conditions for the maximization of the Philippines sugarcane resources will be

improved and there will be reduction in tariff. With the effectivity of the ASEAN Free Trade, Coco

Muscovado Sugar should have competitive pricing and should have better nutritional benefits and
packaging. This will incur additional costs to the company in the short run, however long term

benefits will be generated to engage to the same group of consumers and to produce focused and

direct determinants for the progress of the company. Carefully redesigning the contingency plans

for extreme weather conditions for sugar cane farmers must be done for a more efficient supply

chain. Also, having a huge clean water tank as alternative whenever water supply is short should

be pushed through.

Market Analysis and Consumer Analysis

In the Philippines, consumption is typically measured by monitoring sugar withdrawals

from the mills by traders and industrial users (as mills are the main holders of the country’s stocks).

Sugar consumption in 2012-2013 increased to 2.15 MMT from 2.13 as the industry positively

responded to stable domestic prices. Consumption is expected to increase further to 2.2 MMT in

2014 and to 2.25 MMT in 2015 due to expanding food processing demand and a rising population.

Source: Philippine Sugar Regulatory Administration accessed on July 18, 2015

 About 80 percent of all sugar produced in the Philippines is consumed locally. Roughly

half of domestic consumption is accounted for by industrial users, 32 percent by households and

the remaining 18 percent by institutions (e.g., restaurants, bakeshops, hospital etc.).

The muscovado sugar industry which belongs to the organic or specialty sugar, grows by

22 percent each year. Data from Fair Trade International showed that the three muscovado or raw

sugar producing countries are Peru, Ecuador and Philippines. Top consumers of Fair Trade sugar

is United Kingdom but the organic sugar markets remain strongest in France and the US and most

notably in Australia.

Major export markets for Philippine muscovado sugar are USA, Japan, Italy, Germany,

Switzerland, Russia, South Korea, Guam, Northern Ireland, Saudi Arabia, Australia, Canada,

Taiwan, France, Saudi Peninsula, United Kingdom, Malaysia, and Dubai.

Competitor Analysis

SRA La Granja Agricultural Research and Extension Center OIC and convention chair Ma.

Florencia Logroño stated there are 166 existing muscovado mills in the Visayas and an additional

four are up for operation. Antique has the most muscovado mills numbering to 146, Negros

Occidental has eight, Negros Oriental has six, Iloilo has five, and Capiz has one.

According to Logroño, Visayas is producing 4,279.84 to 4,500 metric tons of muscovado

sugar from a total of 1,670 to 2,300 hectares of land. In 2013, total muscovado export reached

1,829.31 metric tons that brought in some $3.1 million to the local economy.
Direct Competition

The group identified the following companies as existing Direct Competitors of Canesa

Sugar Mill as seen below for they have distributed their products all throughout the Western

Visayas Region:

 Alter Trade Mascobado

Corporation: Alter Trade Corporation

Address: Bacolod City, Negros Occidental

 Muscovado Sugar(Generic)

Corporation: Seed Trade Muscovado

Address: Iloilo City, Iloilo

 Sagay Muscovado Sugar(Generic)

Corporation: Sagay Central, Inc.

Address: Bacolod City, Negros Occidental

 Hawaiian-Philippine Company Muscovado Sugar

Corporation: Hawaiian-Philippine Company

Address: Bacolod City, Negros Occidental

  Prime Choice Antique

Corporation: Prime Choice Antique

Address: Antique

Indirect Competition

In addition to direct competitors, Canesa Sugar Mill also faces competition from sugar

mills and providers of sugar substitutes. Products of these providers also compete with existing

and nearby muscovado sugar. These indirect competitors can impact the success of a company and

in fact, there is some evidence that indirect competitors can draw more business from a company

than direct competitors. This is especially true when the competitor offers multiple offerings in the

same location.

Canesa Sugar Mill has recognized numerous indirect competitors classified according to

their product offer as enumerated below:

 Refined Sugar

There are 27 sugar centrals all over the country that produce refined sugar.

RATED CAPACITY
SUGAR MILLS TOTAL
CAPACITY/ DAY
Luzon
1. Batangas Sugar Central, Inc. NO DATA
2.URC- Carsumco 4,000
3. Central Azucarera Don Pedro 12,000
4. Pensumil, Inc. 3,500
 5. Sweet Crystals Integrated Sugar Mill
Corporation (PORAC) 2,500
6. Central Azucarera de Tarlac 7,200
Visayas
7. Central Azucarera de Bais, Inc. 8,500
8. Biscom Inc. 14,000
9. First Farmers Holding Corp. 4,500
10. Hawaiian-Philippine Company 7,500
11. Central Azucarera de la Carlota, Inc. 16,000
12. Lopez Sugar Corp. 7,500
13. URC- Ursumco 8,000
14. Sagay Central Inc. 4,000
15. URC-Sonedco 10,000
16. Universal Robina Corp.- Tolong 4,000
17. Victoria Milling Company, Inc. 15,000
18. Organic Producer's in the Island of
Negros (OPTION-MPC) 500
19. Capiz Sugar Central Incorporated 4,500
20. Central Azucarera de San Antonio, Inc. 8,000
21. URC-Passi 4,500
22. Bogo- Medelin Milling Company, Inc. NO DATA
23. Hideco Sugar Milling Co., Inc. 5,000
Mindanao
24. Busco Sugar Milling Company, Inc. 18,000
25. Cotobato Sugar Central Co., Inc. 4,800
26. Crystal Sugar Company, Inc. 10,500
27. Davao Sugar Central Co., Inc. 5,000

Source: Philippine Sugar Regulatory Administration accessed on July 18, 2015

 Sugar Substitute

Food additive that provides a sweet taste like that of sugar while containing

significantly less food energy. Some sugar substitutes are natural and some are

synthetic.
 COMPANY
1. SUCHERO NATURAL SWEETENER, COMPANY
2. MVR IMPORT/EXPORT INT'L, INC., MANILA
3. PURATOS PHILIPPINES INC.
4. M.C.N. DISTRIBUTORS INC.
5. DON REYNO CORPORATION
6. PEOTRACO INDUSTRIES INC.
7. Q. CHEMFOOD CORP

 Honey

Honey is the substance made when the nectar and sweet deposits from plants are

gathered, modified and stored in the honeycomb by honey bees.

 Maple syrup

A syrup usually made from the xylem sap of sugar maple, red maple, or black

maple trees.

 High fructose corn syrup

A sweetener made from corn starch that has been processed by glucose

isomerase to convert some of its glucose into fructose

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS

SWOT Analysis showed the wide arrays of criteria Coco Muscovado Sugar currently has

that will serve as a benchmark for whatever courses of action the company may have in the future.

The company has a large building with complete facilities and equipment that could accommodate

a large number of workers. Despite this, it is revealed the work area is not fully utilized and keeps
 on incurring high overhead costs, like for example the consumption of electricity to light the

passageway to the mill. With the support from the government, the sugar mill will surely maintain

and sustain what the present facilities and equipment the sugar mill has. Moreover, despite the

annual budget deficit that the sugar mill has been experiencing since its operation which marked a

not so well financial status for the company, it has a group of wealthy board of trustees who are

willing to support the mill.

The idea of expansion by utilizing work areas, that can be used to hold additional

equipment and offices for administrative purposes and Research and Development, is highly

attractive because the demand for Muscovado sugar is high in foreign and domestic market. This

also shows that the company must also make investments in facilities for packaging that could

boost the marketability of the product in foreign and domestic markets. In addition, the company

must also find a way to improve the supply of raw materials such as sugar cane to continually

satiate the demand for muscovado sugar, wherein the surrounding land area could be used to plant

additional sugar cane.

The company must also keenly monitor changes in the market with the possible entrants

of foreign sugar traders and adapt to volatile sugar prices. As listed below, the group presented the

SWOT Analysis in a tabular form to better match the strengths and weaknesses with the current

opportunities and threats surrounding the market environment.

Strengths Weaknesses Opportunities Threats

 Newly constructed  High overhead cost  Large unutilized  Given the Free trade
and large sugar mill with work area that work area can be agreement, new
building with is not utilized used to hold entrants will arise
complete and brand properly additional equipment
new facilities and and offices for
equipment. administrative

 Geographically  Land area around
advantageous location mill is not utilized
for the mill properly
 Equipment used for  No equipment for
cooking the sugar packaging and non-
syrup is existent packaging
technologically and promotional
appropriated and activity
competitive
 The sugar mill has a  The sugar mill has
group of wealthy been experiencing
board of trustees who an annual budget
are willing to support deficit since the start
the mill of its operations
 High demand for  Low supply of raw
muscovado sugar in materials and
the foreign and finished goods that
domestic market are not enough to
suffice the demand
of consumers
 Minimal manpower  Manpower not fully 
requirement due to its utilized since the
modernized equipment plant only operates
occasionally (twice a
week)
 Being the sole Sugar  No accounting  Huge potential to
Mill in Capiz gives a system established
great advantage to the & no proper
company’s brand recording of
positioning. company
transactions
 The company is highly  Unavailability of a
dependent among systematic
farmers when it comes distribution system
to its raw materials.
purposes including
R&D
 Other investors with  Unforeseen weather
vast land area that conditions could lead
could be used to to sugarcane supply
plant additional disruptions.
sugar cane
 Assistance from  Technological
Department of Trade advancement of other
and Industry for countries in terms of
packaging purposes. sugar production will
result to lower selling
price of their product
 Seek additional  Volatility of sugar
government subsidy cane prices
and assistance for
the sugar mill in
accordance with RA
10659
 ASEAN Free Trade  Reduction in tariff
Agreement’s exposes the industry
reduced tariff will to competition from
prove to be larger industry
supportive of players from
products that are neighboring ASEAN
highly profitable for states
export
Manpower job  Discouraged farmers
rotation in order to to plant / supply sugar
fully utilize them cane due to very low
during off seasons purchase price
 Lower prices of
increase the substitute products in
productivity of cane the market
and sugar recovery
rate by improved
technological
advances
 K-12 Program may  Political changes may
increase the number post difficulty in the
of workforce who overall process of
will engage in selling Muscovado
Sugar
 agricultural
Programs

 Muscovado is organic,  Absence of full time  Growth in domestic  Price is higher

chemical-free, and is
considered as a
healthier alternative to
refined sugar
 
 
personnel who can consumption due to compared to refined
be responsible and the growing health- sugar
accountable to focus conscious consumer.
mainly on the
company as a whole.
This person shall
pose strategic efforts
in improving
production,
distribution, pricing
and promotions
Absence of brand  Possible restructure  Consumer’s
awareness among in the organization perception that the
consumers may improve the product of Canesa is
overall performance the same as the
of the company generic and unfiltered
Muscovado sugar
being made by local
farmers.
 The possibility of 
making Canesa
Sugar Mill as an
attraction in Capiz
(e.g. Eco Park)

FINANCIAL AND MARKETING GOALS/OBJECTIVES

The marketing and financial objectives of this marketing plan are closely knitted together.

Having a marketing objective of increasing 50% of the current productivity and sales, which refers

to the increase of 72,600 kg of muscovado sugar to 115,200 kg which translates to additional gross

revenue of 4.6 million pesos which would also represent 50 % increase of the current gross revenue

from about 4.6 million to 6.9 million pesos.

 Marketing  To produce and sell a total of 115, 200 kg of muscovado by January of
objectives 2016—representing 50% increase.

Financial  To generate annual gross revenue of 6.9 Million Pesos from the sale of
objectives muscovado by January 2016—representing 50 % increase.

MARKETING STRATEGY
A. Marketing Strategy

 Cost leadership

The price of the product will be marked lower than competitors In addition, discounts are

offered to those buying in bulk.

 Differentiation

The product aims to differentiate itself by using sustainable packaging by employing a

design that could be re-used again or by using biodegradable packaging using materials.

 Corporate Social Responsibility

Highlighting benevolent and philanthropic activities geared towards empowering sugar

cane farmers and mill workers who are actively involved in the company. The company

also will emphasize that the mill is mostly using its byproducts (bagasse) as a renewable

energy source.

 Promotion

The company will utilize advertisements to make the company and its brand known to

consumers.

B. Target Market

The target market of Coco Muscovado are supermarket shoppers, particularly

housewives, between the ages of 25-70. These are shoppers who are working as
 professionals or businessmen and belong to class C or higher in the society. They are

seeking for a healthier sweetener that is organically produced. They care deeply about

where their food comes from and the welfare of the workers who provide them with these

said products.

These active consumers represent a demographic group of well-educated and

successful individuals. Household income generally is more than Php 150,000 annually.

With their comfortable family income, our target audience is willing to spend more just to

provide the occupants of their household with a healthier alternative to sugar. Our target

audience also appreciates the utilization of re-usable containers. Currently most of the Coco

Muscovado consumers live within Sigma and Ivisan. However, one future goal is to target

consumers in other places within the province of Capiz and the island of Panay, as well.

C. Brand Positioning

Coco Muscovado aims to offer a healthier sweetener that is resourced through the

means of sustainable energy and is enclosed within a utilitarian and practical container to

stand out among its competitors. Hence, the Brand Positioning Statement:

“For housewives, aged 25-70, they want a healthier sugar is that quintessentially “farm-

to-table”. Coco Muscovado is the sweetener that can provide them with all the nutritional benefits

and natural goodness of sugar cane. This is achieved by maintaining the quality and standards of

its product, by being sensitive to the needs of the people who made it all possible. We care about

the welfare of our farmers, sugar mill workers, and our consumers. We also give utmost
significance to the condition of our environment. We ensure that our sources of energy are

renewable.”

D. Marketing Mix

Product marketing

The product of Coco Muscovado Sugar, in order to meet customer’s needs and wants,

should be marketed through addressing the following:

Product Levels

 Core Benefit-Coco Muscovado offers health, vitality, and nutrition.

 Basic Product-Muscovado Sugar

 Expected Product-The muscovado sugar must all natural, chemical-free, and

should contain no preservatives.

 Augmented Product- Coco Muscovado offers three types of sugar from the least

refined Class ‘C’ Muscovado to a much granulated Class ‘A.’ The bagasse from

the sugar cane is turned into fertilizer and animal feeds.

 Potential Product- The product and could be augmented or transformed into

Muscovado Rocks/candies, molasses syrup, beverages/liquor, and beauty

products. The byproducts maybe turned into paper/boards, paint, and ethanol fuel.
Product Strategy

Products should be differentiated in order to meet the market demands and at the same time

establish a competitive edge to the customer.

Coco Muscovado will be served in different sizes. The sugar sold for household consumption

will be sold in sizes of 250g and 500g. The company will also sell sugar packets that weight 177

g each and will be sold in in sets of 25 and 50. Coco Muscovado will also sell sugar intended for

industrial use in sizes of 1kg and 2kg.

Coco Muscovado will sell three varieties of sugar. Class ‘A’ is much more refined in texture

and is sweeter compared to the other sugars. Class ‘B’ is similar to Class ‘A’ texture-wise, the

taste of Class ‘B’ is earthier and is closer to the taste of molasses. Class ‘C’ has the tendency to

undergo caking and contains a few miniscule muscovado rocks. Class ‘C’ has the earthiest flavor,

the least sweet, and the closest to the taste of actual molasses.

Pricing Strategy

Place Strategy

Promotion Strategy

From the start of the company’s operation, the business is not engaged in any promotional

activities. To increase awareness about the product and capture the interest of target market, the

company will spend 3% from its annual revenue. The effective promotional activities comprising

of radio, TV and internet advertising along with participating in public relation activities are

selected.
Radio Advertisements

For the radio ad, the group had a quote from Bombo Radyo radio station with a package

rate of P17, 280.00. The offer is inclusive of featuring the product on Sunday morning program

entitled “Good Morning Philippines” through conducting a 30 minute interview with one of the

company’s stakeholders to introduce the business, the operations manager to the explain how the

muscovado sugar is being processed naturally, one of the farmers to be able to relay how the

company was able to help the local farming community, and most importantly a nutritionist to

feature its health benefits. In addition, a 40 seconds advertisement would be aired once a day every

morning for the period of 14 days. Every morning would be the usual period where people, young

and old, would listen to the radio for news or any announcements. This will cover the target market

from the whole province of Capiz. The implementation of radio advertisment will start on January

2016.

TV Advertisement

Broadcasting an advertisement through television would cover a number of consumers. A

39 seconds TV ad will be aired twice a week in a right time slot of ABS-CBN “TV Patrol Panay”

Program wherein viewers are usually from the entire Panay Island which will cost to P3,710 per

spot. A feature in a special episode of ABS-CBN TV program “Mag Agri Tayo” aired every

Sunday morning on national TV will be requested and this is for free. The company would also

place their advertisements on local cable networks limited only in Roxas City. TV advertisements

is quite costly but in return this would expand the outreach and product awareness radically.

Internet Advertisement
 The company will create a page for the Coco Muscovado Sugar under the category of

food/beverage using social networking sites like Facebook. The company can freely feature the

product benefits and its other use using Facebook. It is also a good venue to receive testimonies

from various users, like the benefits they experienced from the use of the product which will

encourage non-users to try the product. Similarly, YouTube is quite popular, running the video ad

there would save a lot of money and would have a wider coverage, there is a possibly that it might

turn into a viral video which would benefit the product awareness greatly. Advertising using the

internet can reach out our target market and save a lot of money compared to radio and TV.

Public Relations

To further increase awareness of target market, the business will participate in Trade Fairs

conducted by the Department of Trade and Industry during provincial fiestas and festivals as well

as the Department of Agriculture Farmer’s Day Celebration featuring the different agricultural

products of the entire province. These activities usually last for 3 days where every concessioner

rents a stall for product display and selling.

Schedule and Cost of Promotion

Particular Start Date End Date Budget

Radio Ad January 3, 2016 March 31, 2016 34,560.00

TV Ad January 3, 2016 June 30, 2016 178,080.00

Internet Ad January 3, 2016 December 31, 2016 -

Public Relations April 2016 December 2016 10,000.00

Total Advertising Budget 222,640.00

Process Strategy

The general strategy in the sugar mill includes the following phases:

Juice Extraction Juice Purification Juice Boiling 

TestingDryingPulverizingPackaging

This is the process to ensure that the operation is stream-lined and the end product will be

of optimal quality.

Supervisor and Operations managers will randomly and regularly check the mill processes

of the faculty members in the aspects of, cleanliness and sanitation, personal hygiene of the

personnel, and proper handling of the sugarcane, juice, syrup, and sugar –to ensure that it is being

done according to the set standards. Inspection by sampling a trial batch will be conducted

regularly.

The operation manager will set weekly scheduled consultation sessions for the workers to

determine and fulfill their additional needs in the workplace.

Physical Evidence

Canesa Sugar Mill currently has a fully ventilated mill with equipment used for crushing

the sugarcane and boiling the extracted sugarcane juice. There is a newly installed pulverizer which
is used to prevent caking and lumps in the product. There is a room specifically used for

packaging, which is where the sealer is located.

ACTION PROGRAMS AND IMPLEMENTATION SCHEDULE

METRICS

CONTROLS

REFERRENCES
PIA6 Negros Occidental.(2014, November 26). SRA holds 1st Visayas Muscovado Sugar

convention. Negros Daily Bulletin. Retrieved July 18, 2015 from http://www.ndb

-online.com/november2514/sra-holds-first-visayas-muscovado-sugar-convention

Directory of Sugar Mills. Philippine Sugar Regulatory Administration. (2015). Retrieved July

18, 2015 from http://www.sra.gov.ph/wp-content/uploads/downloads/2015/02/Directory

-of-Sugar-Mills-2014-20150001.pdf

Domestic Raw Sugar Withdrawals (Metric Tons). Philippine Sugar Regulatory Administration.

(2015). Retrieved July 18, 2015 from

http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Sugar%20Annual_Manila_

Philippines_4-16-2015.pdf

Sugarcane Industry Development Act of 2015.(RA 10659).(2014, July 28). Retrieved July 18,

2015, from http://www.gov.ph/downloads/2015/03mar/20150327-RA-10659-BSA.pdf