Considering the congested bottled beverage industry today, the majority of the players have made it an uphill climb for most new and rookie companies to vie for a decent market share. Beverage giants such as Universal Robina Corporation, San Miguel Corporation, Coca Cola Corporation and Pepsi-Cola Corporation have relegated the other market players to mere secondary alternatives for people who want to try something new.
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The green tea craze is so far the most sought after industry that most people think will be acceptable to most consumers. True to its worth, most current and up and coming corporate beverage giants have been constantly trying to develop new and reasonably priced beverages to get their share of the current market demand. The congestion is hence only natural. Health conscious people are shying away from softdrinks and concentrated drinks, being more cautious and aware of their individual health perspectives as of late.
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Chin Chin has tried its best to offer green tea quality products but unfortunately, the price does not see well with the market it caters too, especially in the Philippine setting. Unlike in the United States and Canada markets, the local classes are limited to the areas where it is hard to place products, rightfully so since they are filled with various beverages already, leaving not much room for new entrants to be entertained.
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So how can a company boost sales? Simply by taking its cue and looking for another genre of drinks. Black Gulaman has started this trend since 2005 and has not yet received any competition, allowing it to dominate the market which cannot categorize its drink as either a beverage or a dessert. Price may not be consumer friendly, but compared to its nearest competitor wannabe, Joy Black Gulaman which only lasts for 7 days, its product life of 9 months is more than enough to boggle the local developer’s mind. Having established itself in this genre, further add-ons, the Aloe Vera Juice Drink (something that tastes like grape juice and is really for consumption and not for the hair), and the Powerbits Sports Drinks which contain fiber jelly to give the consumers something to think about when they taste the jelly bits.
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For sure, people will be moving on in this other categories soon. But once that time comes, Chin Chin will have already moved on towards another category. One step backward and two steps forward that is the better way to consider a good business approach today.
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Posted in Business by Frank on August 31, 2006 at 9:38 am | Leave a reply
For small companies like Merlion International Sales, Inc., duties and coverage of the area of responsibility as far as trying to cover up all the necessary business operating issues like sales, finance, administration and marketing need proper planning and references to be on track. Concentrating on one aspect alone will render all other departments useless, and through this, the company will still be underachieving. While sales may be recorded as attractive, the next step is how to collect the said payment for the goods rendered sold or consigned. Auditing these sales and coinciding them with the actual number of goods delivered and sent out from the actual inventory of the company are the harder means of completing the entire process, something that most sales people would really not care about as long as they close deals and make sales.
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Time management to address all these corporate needs truly need to be itemized and placed in some charts as Gantt charts to follow the status and identify the milestones and shortcomings that the department or person has done. Time management in such cases will be really difficult, and usually, the strict focus on the coinciding corporate direction will most often become erratic. Easily, the immediate solution is to get added manpower help, but considering the size of the company and the lack of financial resources to place additional personnel for budget constraints, pose as hindrances to pursuing this suggested solution to the problem. For the time-being, keeping their heads above water is the main focus and while potential profit making from sales of quality goods may not achieve the goals, the actual sales from distribution and marketing activities will help determine and justify the needed improvements and help to maximize the potential of the business in the industry and the market to where it is.
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Posted in Business by Frank on August 31, 2006 at 2:07 am | Leave a reply
All over the world, the cry is for quality made products that can be purchased at most supermarkets and retail outlets wherever they may be. Green Tea, a key product that has evidently gathered raves due to the rising demand for health conscious people today has been one category that is being congested but at the same time abused by people who want to earn a profit out of the current demand of the market.
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Some would call business tycoons as brilliant when it is being seen as a business venture, but for the health buffs, this is quite a pathetic practice that is slowly in the borderline of piracy and stealing from people. Most people are not familiar with the taste and nutrition that green tea provides and it would take the natural tea drinkers the gauging point to identify authentic green tea drinks from imitation drinks. Chin Chin Green Tea variants are a hit all over the world, including Canada and the United States, but for lesser fortunate countries like the Philippines, green tea is viewed more of as a flavored drink rather than an actual health drink possessing oxidants that can purify the body from unwanted toxins that are usually contracted through food and pollution of surrounding areas.
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Chin Chin offers different types of green tea variants to suit the requirements and fancy of most tea drinkers. These include:
- Green Tea with Lemon
- Green Tea with Apple
- Green Tea with Honey
- Green Tea with Jasmine/ Unsweetened
Among the mentioned variants, the unsweetened green tea is normally the one identified to be the product that has lesser demand. Most still look to satisfy their sweet tooth, but for the more calorie conscious individuals, such a green tea variant is in demand.
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Beverage giants such as Universal Robina Corporation and Zest-O have developed product that were manufactured in a way to be able to answer the need of the local people they have. However, they can do this because the product knowledge of their market is totally unaware of what green tea is. They would usually relate it to iced tea, which is a totally different genre and this is what perhaps current green tea drinks such as C2 and The One are targeting, the lack of knowledge of the product proper. They are able to market their product and offer low prices because the typical components do not really contain the green tea essentials. Take this outside of the Philippines and I doubt if they can have the same success conning people to buy their product.
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Posted in Business, Marketing by Frank on August 29, 2006 at 5:40 am | Leave a reply
Probably the most relative question that most people ask today, especially professionals who reach a certain age after performing various work and duties for large corporations today is on how to start a business of their own, bringing out the entrepreneurial capabilities of individuals today. Such abilities are not inherited overnight, nor can be considered fruits from taking on advanced studies in managing businesses or leading a group of skilled employees to accomplish various tasks. Rather, it largely depends on the accumulated work experiences and exposure that most people have gathered over the years from daily transactions that they have been performing through the years. The usual exposure, routine, management styles, leadership styles and corporate protocols in both the internal and external aspect are some of the more common practices to which people can quickly inherit new found ideas and techniques.
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Business development is not an easy task to consider today. With probably the same idea in mind by most people who would want to see their own business empire on their own, the possibilities are endless and at the same time congested. It all boils down to the type of business that people would want to undertake. Incorporating the key sections of an organization that include the finance, accounting, marketing, administration, and operations, creating the proper mix for the separate capabilities of each section will be the key towards corporate success. There should be no favoritism as far as any section is concerned. Such practice may bring back an imbalance as far as business etiquette and performance is concerned. It is entirely dependent on how people will be able provide the needed attention to all of these key departments of a company. In small businesses, one or two persons alone can do them simultaneously, but this will vary on the size of the business, and the nature of the business. Multitasking may be needed, especially for people who would want to save money on unnecessary costs and expenses, but the overall product from such efforts and implementations shall be for the total benefit of the company as well.
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Posted in Business by Frank on August 29, 2006 at 2:39 am | Leave a reply
Just like big companies or organizations, individual management of debt and payables is a hard thing to monitor if people are not careful. Ideally, the notion of expecting dues and receivables without even actually realizing them first is one culprit that adds up to insurmountable debts due to delays in payment schedules at one point or another. While such practices cannot be avoided, especially for individuals who go into personal and private business, the need to have revolving funds at which they can operate is usually the conflict that would arise.
To make a business a well-oiled machine, people need to take risks in providing credit to loyal and deserving clients. For bulk orders, immediate payment is rare, and would usually be made using post-dated checks for them to be able to finance the entire deal that is to be consummated. Holding out at times, due to undecided states, which may eventually be high-risk and potential bad debt accounts will be the ante for it all. Most business survive due to proper debt management and this is a reality. Rarely do we see successful companies exist for a longer period of time without the proper debt management personnel to regulate the cash flow of most companies. This is perhaps one of the most forgotten aspects of a business, the need for a good finance person or head to be able to analyze and revolve the funds and present it to top management so that they may be aware of their current situation and stance.
If people think that business planning is tough, they should check out how to go about financial planning. Financial planning entails playing with numbers, proper auditing of cash movement and forecasting with consideration to the internal and external factors. Financial planning plays a part in business planning as well. The proposals, recommendations and such cannot be accomplished without proper funding as well.
Going back to personal finances, this is not really farfetched from a corporate setting, understanding and knowing up to what extent their funds can suffice. There will be people who would be daring at times, looking ahead and not being aware of their current financial status while wanting to make high-risk business decisions. In most cases, the solicitation of varying opinions from other people who are professionals in their fields may be a good way to go, especially for delicate matters that require critical business decision making.
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Posted in Business by Frank on August 27, 2006 at 9:05 pm | Leave a reply
Most organizations would reach a point where economic crisis and recession will be one of the critical factors that would gravely affect sales and profits. While the issue at hand is not entirely due to the cost and pricing techniques for products that are being offered in the market, it is a matter of consumer preference for priorities in enumerating their more important needs rather than going on shopping sprees for any commodity or item that they deem necessary or have been accustomed to including in their daily purchases or shopping needs.
Economic recession will occur at any point and this cannot really be avoided in most cases. A drop in sales and decrease in profit margins is to be expected, and going through the motions of such times will be the only wise thing to do. Other factors can be partnered with such crisis, such as government intrusion, cultural issues and psychological gains. However, proper direction towards strategic management that is initially made should always be open to such events. The probability of such occurrence may eventually prove to be variable, but advanced preparations made through business plans and mapped out strategic management alternatives will always be the best advice to give towards promising corporations that are aiming to flourish business ventures for long-term goals to achieve respectable rates of returns and desirable profit margins.
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Posted in Business by Frank on August 26, 2006 at 11:11 pm | 10 opinions voiced
For the average employee, the ideal dream is to be able to supervise or manage a department or group of people that can operate and produce according to the corporate expectations for that department. Departments that include Accounting or Finance, Administration, Logistics, Sales and Marketing, Management Information Systems and Business and Research Development sections in a company each have a vital role in making an entire organization function like a well-oiled machine. The necessary background and proper working experience to ensure such ideal functions are only some points that enable a company to gain high expectations from such departmental groups.
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For small scale companies that are usually indulged in such ventures as trading or personnel recruitment, hiring one overall manager to oversee everything is what we would usually find. While this is understandable for the mere fact that cost is something that raises eyebrows of most people, the level of achievement is far from what is usually expected in large scale organizations. The best term to call it is multitasking, something that any employee is totally aware of today. While most people who take on the challenge would ideally try their best, the output is not what management expects, and the loser after the smoke has cleared will be the person to take on such goals all by himself. Management teams would not care about such excuses, and all they are after is value for their money, despite unfair compensations due to the people who devote their time just to meet such demands.
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The achievement rate is usually lower that the expected rate of success in such setups. No matter how well-educated most people are, strategic management in such scenarios does not include emphasizing the load on one person. Two heads are better than one, and in cases of corporations that are setting their goals towards the direction of such corporate giants that include Microsoft, Coca Cola, San Miguel, Ford, and Honda, they should realize that one man or woman cannot do it alone. While some people are aware of this, they are just too stubborn to admit that perhaps they are only after profit, and should the person make things happen, their level of satisfaction has already reached their dream, but lest they forget, reality is, time is also an investment and same with the people who are being entrusted to do so.
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Posted in Business by Frank on August 26, 2006 at 3:27 am | Leave a reply
For new and small companies such as Chin Chin, the need to bend the rules a bit in terms of leaning towards a promising market and grabbing a larger part of the market share as far as consumer buying behavior is concerned are just some of the key points that any entrepreneur or management team should consider. Profits and flying dollar signs will always be within the sights and dreams of most corporate leaders, but the manner on how to be able to reach them shall always be a tough road ahead.
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Any business is no stroll in the park. Occasional slowing down, or peak season selling will be there and these are usually the most common things that most people would evidently have to live with in the course of necessary strategic management schemes. Marketing paired with proper research and development need to include such facts prior to actual implementation and business planning layouts. It is not only supposed to be a bunch of numbers presented, such as balance sheets, income statements and cash flows. To understand them fully requires deep business analysis, something that not most corporate leaders will be immediately gifted with. The usual reply is as long as it is “not in the red�, then the business is doing fine.
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For management teams that are aiming higher than pure profit, the case will be different. Sales projections, demand forecasting and inventory keeping are critical assessment points for most people who want a brighter future ahead for their organization. Expansions and larger market shares will always be the main focus of most task-oriented individuals. Moreover, people seek a higher form of management education level such as that of Masteral Degrees of even Doctorate degrees, something that most people simply consider a requirement to be able to effectively compete with today’s leading industries and organizations.
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Posted in Business by Frank on August 25, 2006 at 8:19 am | Leave a reply
Universal Robina Corporation (URC), a known industry giant in the Philippines, needs not introduction with regards to the line of business that they are catering to. Now famous for such product like their acclaimed C2 Green Tea Drink variants, and some other packed food or processed snacks have been the key to making them hot commodities in the local industry today. Their efficient pricing methods, targeted at the lower classes of the Philippines have reaped dividends, although it has been more of a psychology based approach for them, as far as marketing and such is concerned.
Their tactics are very much highly touted, since it is evident that they have put into consideration the consumer buying behavior in their marketing strategies for their different brands. Ethical or not, the target market to which they have properly placed their products has evidently rubbed off on the other classes as well, arousing their curiosity in a way because the demand and stocks are usually always out of stock, particularly the C2 Apple and Lemon flavors in the 250 ml and 500 ml packaging. Pricing is the main point for consideration, since inflation and the economic crisis that has beset the country today is evidently telling on the cost of living, not to mention the rise in demand for cheaper items for purchase.
This has greatly affected such competitors as well, such as Zest-O Corporation, Pepsi, San Miguel and Chin Chin Black Gulaman. Sales for these corporate players have plunged significantly, and with the price wars getting out of hand, it has been left to two choices: (1) compete in the Price Wars, or (2) retain their stand with regards to their price. There aren’t much options available for these players really. Consumers would usually dictate the price, especially in such given situation, economic and inflation as the main culprits. For Chin Chin, an imported brand that is being offered locally, there is not much to work on, since the cost for production and shipping eat up most of the local earnings. Zest-O with its main product called “The One�, has ventured out to such strategies, but perhaps one striking feature is that packaging is not at all that pleasing nor attractive to the human eye, compared to the simplicity of C2 in the market. Black Gulaman on the other hand, offers a different kind of packaging and content, and among its features that most people are happy about is that its product life is good for nine (9) months, compared to the local ones which are only good for 7 days, a reason why they are not available in the market today.
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Posted in Business by Frank on August 24, 2006 at 4:36 am | Leave a reply
Much has been said about product or service branding but personal branding is important as well. The best way to address this is to look at actors who market themselves prior to becoming well known artists on and off the screen. It may be funny to note but the surrounding tags attached to them are the actual brands that they project. Taking this into account, it is not only image but how a person is foreseen to be. Nicknames such as “the worm�?, the “big difference�?, the “total package�? and so on are common tags that are easily connected to a person. Branding is how people see these attachments in relation to how they are known. A distinction is more of a closer attachment to determine how well a person can recall, or in marketing terms, “Brand Recall�?, a thing, person, place or service. This is built on how they were able to let people remember them by.
Incidentally, we all make our own branding prowess as well. A clear example is when we apply for a job. Definitely, our strong points are what we would usually market towards organizations. Effectively selling ourselves and convincing the recruitment department and the department that we are aiming for should be in line with their requirements for the person they are looking for. People wanting to be in that position can be easily spotted, and assuming to be something we are not can easily be spotted, self confidence and belief of which are the telling factors for such.
Posted in Business, Marketing, Partnerships by Frank on August 23, 2006 at 11:08 am | 1 lonesome comment
