Republic of the Philippines
DEPARTMENT OF EDUCATION
Region IV-A CALABARZON
Division of Rizal
TANAY – SAMPALOC INTEGRATED NATIONAL HIGH SCHOOL
Tanay, Rizal
ALASKA FORTIFIED POWDERED MILK DRINK
MARKETING PLAN
By:
JOSEPH VICTOR C. ARENAS
KIM JUSTINE D. DELA CRUZ
CYRILLE ANNE M. PERADILLA
JOHN ALBERT E. DIMAYUGA
ANGELICA MAY PEREZ
G11 – JADE
SUBJECT TEACHER:
MRS. GRACE A. VELOSO
TABLE OF CONTENTS
Page
Title Page ........................................................................................................................... i
Table of Content ............................................................................................................... ii
List of Table ........................................................................................................................ v
I
Executive Summary
Industry Definition
The Food and Beverage Industry is all companies involved in processing raw
food materials, packaging, and distributing them. This includes fresh, prepared foods as
well as packaged foods, and alcoholic and non – alcoholic beverages. The food and
Beverage Industry is divided into two major segments and this two major segments are
production and distrution of edible goods. Production includes processing of meets and
cheeses and the creating of softdrinks, alcoholic beverages, packaged foods, and other
modified foods. The production segment of this industry excludes food that were directly
produced via farming and other forms of agriculture, as those are encompassed by our
definition of the agriculture industry. Distribution involves transporting the finished food
product into the hands of consumers.
The industry is much more focused on technology and mechanical
manipulation of raw foods to create more valueadded food products than the agricultural
industry. Under our definition of these industries, grocery stores are excluded as they
are considered a retail store. Distribution includes companies that ship food to retail
outlets, restaurants, or directly to consumers.
The food and beverage products industry comprise establishments engaged
in manufacturing beverages, food, pet food and tobacco products. The companies in the
food and beverages industry process raw materials into food products, package and
distribute them through various distribution channels to both individual customers and
commercial establishments.
Market size
Alaska Milk Corporation (AMC) is the leading milk company in the
Philippines. It has consistently maintained its leadership in the canned liquid milk
category (evaporated and sweetened condensed), thus, paving the way into growing
Alaska into a mega-brand by competing in the powdered, ready-to-drink, and creams
market, among others.
As Native regional corporations face increasing scrutiny for the lucrative benefits they
receive under a federal contracting program, compensation at some of those
corporations continue to rise -- but not as much as some critics may think.
Seven top executives, including five with a single regional corporation, earned more
than $1 million in salaries, bonuses and other benefits in 2010 -- an amount that's surely
jaw-dropping for many Alaskans, who pocketed $41,000 in per capita income last year.
But while the 12 active Native regional corporations have generally enjoyed blistering
growth -- thanks largely to the U.S. Small Business Administration's 8(a) program that
gives Native companies a bidding advantage -- top executive compensation at those
corporations haven't necessarily risen as quickly, according to an analysis of corporate
records filed with the state.
In some cases, overall compensation of the five highest-paid executives -- which
Native corporations must report to the state -- slid between 2007 and 2010.
In other cases, though, they rose spectacularly.
Compensation at Koniag, which primarily represents Native shareholders from Kodiak
Island, soared from $1 million in 2006 (2007 figures were not available at the state
Division of Banking and Securities)to $4.3 million.
Bill Gormley led the way. Head of Washington Management Group and Fed
Sources, former Koniag subsidiaries providing federal contracting services, Gormley
took in $2.4 million last year. Koniag announced the sale of those
subsidiaries earlier this year. Koniag's operating revenues moved from $128 million five
years to $147 million last year.
Most of Gormley's compensation was a one-time payment, not his executive salary. The
compensation was part of an contract that included an incentive for Gormley to stay with
Washington Management Group and grow the value of the company. When Koniag
eventually sold the company, its value had increased by $20 million.
Top compensation at the Arctic Slope Regional Corp. have also grown. At least five of
its highest paid executives earned more than $1 million in 2010, but a university
professor whose teaching includes business ethics said their compensation isn't
"exorbitant."
Roberta Quintavell, the company's chief executive until last year, led the way with $2.5
million. Mark Nelson, chief executive at ASRC Energy Services Inc. until last year,
earned $1.9 million. Kristin Mellinger, executive vice president and chief financial officer
at ASRC, earned $1.4 million.
Total payouts for the top ASRC execs totaled $8.2 million last year. That compares to
$5 million four years earlier. ASRC has been Alaska's highest earning corporation for 17
years.
Revenues have risen steadily, reaching $2.3 billion last year. That's up from $1.8 billion
in 2007.
Those executive compensation at ASRC don't sound huge relative to other similar-sized
corporations, said George Geistauts, a professor of business administration at the
University of Alaska Anchorage."Given the gross revenues of ASRC, I wouldn't consider
$1 million or $2 million to be that exorbitant," he said. "Think about it in percent terms."
Some members of Congress have hammered Alaska Native corporations that have won
multi-billion-dollar federal contracts through the 8(a) program. The late U.S. Sen. Ted
Stevens pushed the program through Congress, giving Alaska Native corporations
access to no-bid federal contracts of unlimited size. Other minority and disadvantaged
businesses in the program cannot win sole-source contracts worth more than $6.5
million. Critics call the Native benefits unfair and say it opens the door to fraud and
waste.
Geistauts sees the program as another example of Native corporations' success. "They
had a big learning curve, and they learned well," he said. "Looking for help here and
there is part of the process of running a corporation. "You take any other major
company, say IBM, and their lobbyists are out there in Washington, D.C., making sure
laws are passed to help them or at least negative regulations aren't passed."
Alaska's Native regional corporations were created four decades ago in the Alaska
Native Claims Settlement Act to provide Native shareholders with dividends, jobs and
other benefits. Seen as an alternative to the Indian reservations that dot the Lower 48,
they were seeded with nearly $1 billion and 44 million acres of land. Because of their
unique role, they've enjoyed unusual protections while becoming some of Alaska's most
powerful businesses.
Two of those regional corporations collectively paid their top executives less between
2007 and 2010.
Aleut Corp.'s total slipped $100,000 to $1.2 million. The company notes in its latest
annual report that the controversy surrounding the 8(a) program has made federal
contracts harder to come by, a factor that hurt the company's performance in 2010.
Revenues fell from $154 million to $143 million.
Compensation for Chugach Alaska Corp.'s top executives fell from $3.3 million to $2.9
million.President Barney Uhart earned $987,000 last year, less than in previous years,
though he also received deferred compensation of $250,000 payable in 2014.
Regional corporations that also saw rapid growth in their top executive compensation
include Bristol Bay Native Corp. and Calista Corp.
Top compensation at some corporations rose more moderately, including Ahtna Inc.,
Bering Straits Native Corp. and Doyon, Ltd. Top compensation at CIRI, NANA and
Sealaska didn't see much growth at all -- even though CIRI and NANA, in particular,
saw huge revenue growth.
link
(https://www.adn.com/alaska-news/article/7-alaska-native-corporate-executives-each-earn-more-1-
million/2011/10/21/)
https://www.jobstreet.com.ph/en/companies/491594-alaska-milk-corporation
https://globaledge.msu.edu/industries/food-and-beverage/memo
https://www.prnewswire.com/news-releases/food-and-beverages-global-market-report-2018-
300602932.html?fbclid=IwAR0wXVT0uKZtOoYnztZe1r2L3su9LQP2RHOWzVfzgLhnxpiInoUWYSZUkqY
Competitor Market Share
https://www.slideshare.net/PTSLIMITED/alaska-milk-corp-case-study-
61220821
MANILA, Philippines — Alaska Milk Corp. expects its sales to grow double digit this
year as demand for milk products continue to pick up, its top official said.
“We hope to have double-digit sales growth this year,” Alaska chairman Wilfred
Uytengsu Jr. told reporters yesterday.
He said the company expects demand and consumption of milk products to grow
following the increase in income or spending power of consumers.
“As disposable income rises, food is generally a beneficiary of that growth, so we would
expect to be part of that,” he said.
He said the first package of the government’s tax reform program has contributed to
improving consumption.
Under the Tax Reform for Acceleration and Inclusion law which took effect earlier this
year, the government reduced personal income tax rates and imposed higher taxes on
fuel, cars, tobacco and sugar beverages to offset foregone revenues.
With prices of consumer goods on the rise, Uytengsu said the company is keeping its
prices in check in order to grow sales.
While prices of Alaska’s milk products have remained steady, he said the company is
keeping a close watch on the cost of skim milk powder, as well as the exchange rate.
Alaska imports 100 percent of its skim milk powder, which accounts for almost 50
percent of its total cost.
The company has a production facility in San Pedro, Laguna which recently completed
its modernization program.
Uytengsu said the company spent almost P1 billion two years ago to increase the
plant’s capacity and improve safety.
While the company ships products based on orders from traders to countries with a
small Filipino population, he said bulk of the sales still comes from the domestic market.
https://www.philstar.com/business/2018/11/07/1866388/alaska-sees-robust-2018-sales-
growth
;
Marketing Objectives
Objective:
OUR VISION...
Is to be a leading consumer foods company with a diversified portfolio of
consumer food brands and products that are market leaders in their respective
categories.
OUR MISSION...
PRODUCT DEVELOPMENT
We will continue to build on the strengths and competitive attributes of the
ALASKA brand and develop its full marketing potential. We will develop new
products and identify market opportunities, mindful of our task to be responsive to
the ever changing and growing needs of our consumers.
CUSTOMER SERVICE
Customer relationship is an integral part of building the Alaska business. We aim
to provide our partners in trade the best and most efficient service, making use of
leading edge technology to ensure timely product availability and accessibility. We
strive to know and understand our customers fully to bridge the gap between what
they need and what we can give.
QUALITY
Ultimately, the consumer whom we serve and their level of satisfaction with our
products become our final judge and jury. We are committed to deliver high quality
milk and other consumer food products from production to consumption. We will
respond to the call to deliver higher quality nutrition to every Filipino home.
PEOPLE
We recognize that our people, the Alaska Team Members, are on of our most
important assets and we are committed to promote their safety and welfare. Their
wealth of experience, ideas, dedication and strong work ethic lay the foundation for
the Company's continued success. It is our goal as much as it is theirs, to pursue
and reach their full potentials through continuing education, training, and skills-
enhancement programs. We challenge each individualby providing the opportunity to
contribute to the Company's endeavors.
PROFITABLE GROWTH
Growth that creates value for our shareholders is paramount. We will deploy our
resources on investment opportunities that are within our core competence and yield
excellent returns relative to its risks and which are consistent with our growth
objectives.
SOCIAL RESPONSIBILITY
We recognize our role in nation building by promoting the protection of the
environment and taking part in various community-building projects that help
enhance and uplift the quality of life of the underprivileged and the
marginalizedsectors of our soul.
http://saraholaguera.blogspot.com/2010/03/company-profile-alaska-milk-
products_18.html?m=1
Target Market :
https://www.scribd.com/?lohp=1
Alaska Milk Corporation continues building the strengths and competitive
attributes of its brand and develop its full marketing potential in the dairy industry. Serve
every consumer to their level of its satisfaction and will respond to the call to deliver
higher quality nutrition to every Filipino home. To increase product awareness,
specifically on its powdered milk product and the rise of our market share by 2 percent
annually in three years. AMC has experienced and well – trained employees that helps
in driving AMC forward with continuous superiority on product quality and strong
relationships. The market for milk and dairy products in the Philippines comprises two
very different segments: market for milk and dairy product that are processed in the
Philippines from imported dairy ingredients that comprises 99% of the total market and
the other 1% which is the market for products that are produced raw milk by the
Philippines Dairy Farming Industry.
Positioning
Strategies
