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MONTEREY FOODS CORP IN RETAILING (PHILIPPINES)

Euromonitor International February 2012

MONTEREY FOODS CORP IN RETAILING (PHILIP PINES)

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LIST OF CONTENTS AND TABLES


Strategic Direction ........................................................................................................................ 1 Key Facts ..................................................................................................................................... 1 Summary 1 Summary 2 Monterey Foods Corp: Key Facts ................................................................. 1 Monterey Foods Corp: Operational Indicators .............................................. 1

Internet Strategy ........................................................................................................................... 1 Company Background .................................................................................................................. 2 Competitive Positioning ................................................................................................................ 2 Summary 3 Monterey Foods Corp: Competitive Position 2011 ....................................... 3

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MONTEREY FOODS CORP IN RETAILING (PHILIP PINES)

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MONTEREY FOODS CORP


STRATEGIC DIRECTION
Monterey Foods Corp will strategically widen its network of outlets during the forecast period. In its bid to increase sales, its brand Monterey Meatshop will be tapping into more interested franchises to implement its expansion strategy in Metro Manila and key cities nationwide. In order to suit the faster lifestyles among urban dwellers, the company could also be strengthening its line of ready-to-cook products by integrating more Filipino and Asian flavours. Allocating discount coupons will be the most prominent promotional campaign that the company will pursue in the coming months.

KEY FACTS
Summary 1 Monterey Foods Corp: Key Facts Full name of company: Monterey Foods Corp Address: Tel: Fax: www: Channels of operation: Food/Drink/Tobacco Specialists Retailing brands: Monterey Meatshop
Source: Euromonitor International from company reports, company research

17th Floor JMT Corporate Condominium ADB Ave, Ortigas Center, Pasig City Philippines +63 2 633 6328

www.monterey.com.ph

Summary 2

Monterey Foods Corp: Operational Indicators 2010

2011

Year end December Net sales Ps million Outlets Selling space (000s sq m) Sales of grocery (%)
Source:

10,488.24 383 22.8 100

11,559.38 406 24.17 100

Euromonitor International from company reports, company research

INTERNET STRATEGY
Monterey Food Corps website www.monterey.com.ph is instrumental in providing important information about the company, the products, and the promotional campaign that it currently offers. In partnership with internet retailer myAyala.com, the business organisation enables

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MONTEREY FOODS CORP IN RETAILING (PHILIP PINES)

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customers to order online through the myAyala.com portal. Capitalising on the popularity of social networking in the Philippines, Monterey Meatshop launched its Facebook page where it directly interacts with its fans and customers. Promotions exclusively for fans are offered while important announcements and coupons can also be accessed through the page. With the increasing usage of the internet in the country, it is expected that Monterey Foods Corp will continue to utilise the internet technology in keeping its current customers and attracting new one. Social networking remains to be a potent strategy which the company is seen to taking advantage of during 2011 and 2012.

COMPANY BACKGROUND
Monterey Foods Corp is a wholly-owned subsidiary of listed holding firm San Miguel Corp. The business organisation boasts of being the Philippines largest pork and beef products, managing the parent companys fresh and semi-processed meats businesses. San Miguel Purefoods Inc is a subsidiary of the San Miguel Corp, the largest food, beverage, and packaging conglomerate in the country. Monterey Foods Corp operates a chain of neighbourhood meat shops under the brand Monterey MeatShop. These stores sell fresh pork and beef products and an assortment of semi-processed items like tapa (dried meat), tocino (pork marinated in sweet sauce), and longganisa (sausage). Aside from these, Monterey MeatShop also brings its products in supermarkets and hypermarkets through stalls in the meat section. Retailing of meat and processed meat in the Philippines is usually done by independent vendors on wet markets. Monterey Foods Corp, meanwhile, serves a more discriminating niche. Locating in higher income neighbourhoods, Monterey Meatshop outlets are found in subdivisions and retail centres in Metro Manila and key cities nationwide. The companys higher pricing strategy than typical meat vendors is compensated by its claim of having higher quality meat. Utilising the popularity of social media in the Philippines, Monterey Foods Corp launches promotional campaigns exclusively for its Facebook Fans. Cool Gadgets Giveaway gives an opportunity to Monterey Shops Facebook fans to win gadgets every week by answering the questions posted on the pages wall. Monterey Meatshop gives away Ps500 in gift vouchers as well as iPads, Blackberries, and other electronic items are given away to reward customers of directly interacting with the company through the social networking site.

COMPETITIVE POSITIONING
Monterey Foods Corp ranked eighth among the biggest players in the Philippines retailing in 2011, generating Ps11.6 billion in value sales. This accounted for 1% in value share overall retailing and marginally more in traditional grocery retailers. The company witnessed strong value growth of 10% in 2011. This strong sales performance is attributed to the vibrant opening of Monterey Meatshop outlets throughout the year. Aside from locating in retail centres, the brand has branch out into more affluent neighbourhoods where customers are looking for quality, hygienic, and accessible meat and meat products. With products that are price 10-20% higher than sellers in the wet public markets, Monterey Meatshop caters to middle-income consumers capitalising on its image of providing higher quality products. Aside from offering pork, chicken, and beef, stores also stock up on lambs meat for customers. Stores are often small yet well maintained in order to highlight its image of carrying hygienic meat.

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MONTEREY FOODS CORP IN RETAILING (PHILIP PINES)

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Food/drink/tobacco retailers is generally facing a mature and slow, yet positive, growing market due to deep market penetration and nearing saturation. However, being geared towards a smaller group of more affluent buyers, Monterey Meatshop is expected to experience better growth opportunities over the forecast period. The residential development in the urban areas poses greater potential for the player. Summary 3 Channel Monterey Foods Corp: Competitive Position 2011 Retail Value Share Rank 13.9% 1

Food/Drink/Tobacco Specialists
Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade interviews

Euromonitor International