CDO FOODSPHERE INC. San Marino Corned Tuna
I.
Introduction
COMPANY PROFILE
Company Name:
CDO Foodsphere Inc.
Office Address:
560 West Service Road, Paso de Blas, Valenzuela City
Warehouse Address:
560 West Service Road, Paso de Blas, Valenzuela City
Telephone Numbers:
(+632) 588 59 00
COMPANY HISTORY
In the early 1970s, Corazon Ong found herself employed as a dietician d ietician in a hospital, preparing diets for patients. This she did with passion and u tmost care, knowing the importance of proper diet to the well-being of patients and non-patients alike. She only gave up this job to offer herself to motherhood, after marrying her husband Jose, a professor at the Ateneo de Manila University. Un iversity. As a full-time mother, Mrs. Ong had to take care of the household, which now included two kids. Her experience as a dietitian proved useful u seful in preparing native snacks for the kids and baon for husband Jose. At one point, po int, she decided to experiment with a new filling for siopao, in addition to the usual bola bola and asado. She developed a skinless longaniza as palaman for homemade siopao. Little did she know that her skinless longaniza would be such a hit, that everyone who tasted it would wou ld ask for more. News of her little concoction spread across the neighborhood, and this was when she decided to convert their dining table into a working wo rking area, because of piling orders from her neighbors and friends. It was inevitable that Mrs. Ong's hobby turned into a business. "We had to convert the back of our Valenzuela residence into a small processing area then," she said. The demand for her products was so strong that she decided to establish on June 26, 1975 a small meat processing company which she registered as CDO Food Products, carrying her initials. With a seed capital of P60,000 borrowed from a local bank, CDO Food Products began operation with longaniza and tocino as start-up products. The rest, as they say, is history.
In 1981, Foodsphere Inc. was registered with the Securities and Exchange C ommission, while the CDO was retained as the flagship brand of the company's food products. The next decade marked the steady progression of the company, which invested in product innovation and professionalization of its staff. By 1990, her eldest son, Jerome, went aboard the now thriving family business, fresh from college and armed with an Economics degree from the University of the Philippines. Jerome and father Jose helped modernize the operation - from manufacturing processes, systems and technology, human resources, sales and distribution and marketing. Foodsphere Inc. was preparing for massive production to serve the whole nation. It was in 1995 that the company's first television commercial went on air. This quickly gained public attention, generated more sales, and put on the map the CDO brand of processed foods. It was strengthened by the high quality of CDO products, at affordable price that has been well loved by the masses. In 2001, the company introduced reasonably priced 100-gram carne norte, which is another innovation in the industry. CDO-Foodsphere has emerged as the top producer of carne norte in the land. CDO Foodsphere has built its success on five co rnerstones, the first of which is strong management team with open e yes and ears to every opportunity that is customer oriented. It also has a passion for unending product innovation through research and product development. The company thrives on very cost-competitive pricing that makes its products affordable to mass market. Moreover, the company has built marketing and distribution channels to bring its products to all Filipino households. Finally, CDO Foodsphere knows h ow to communicate its message well, such as the quality and benefits of its products, to the public at large b y tapping efficient communication tools. Truly, CDO Foodsphere puts emphasis on continuous product innovation and diversification to achieve Mrs. Ong's core vision – that is to provide affordable food products to the most number of Filipino households. Today, the company has more than 300 product lines in about 14 categories. Its latest product is San Marino Corned Tuna, the latest innovation in the canned tuna industry. The company hopes to offer the people with more variants and product lines of marine-based food items. As a proof of its commitment to ensure food safety and food security in the Philippines, CDO Foodsphere
has invested in a modern food processing complex in Malvar, Batangas. With all the success it has met over the years, CDO Foodsphere gave back to the community by establishing CDO-Odyssey Foundation in 2004 as the corporate social responsibility arm of the family company. Already, some 6,000 previously undernourished children have been restored back to health, through the foundation's supplemental feeding program in several underprivileged communities in Metro Manila and parts of Luzo n. CDO-Foodsphere is now considered an important industry and government partner in ensuring the availability of affordable food products in the market. For three consecutive years (19992001), the National Meat Inspection Commission, an attached agency of the Department of Agriculture, has acknowledged CDO-Foodsphere as having the cleanest and best plant in the Philippines. For five consecutive years (1999-2003), the Consumers Union of the Philippines also voted CDO-Foodsphere as the most outstanding meat processing compan y in the country. All these awards would not have been possible, if not for the vision of Mrs. Ong. who herself has been acknowledged by various organizations. In 1996, Corazon has been acknowledged as the Most Outstanding Nutritionist of the Year and Outstanding Medium-Scale Entrepreneur (Philippine Marketing Association Agora Awards). In 2006, she was cited as among the most outstanding women of Valenzuela City. The following year, Corazon was voted the 2007 Entrepreneur Mom-Working Mom (Balance Award). Most recently, Corazon was named the Woman Entrepreneur of 2009 for excelling in entrepreneurship, leadership and community development — making her a trailblazer in the industry. She received the award during an awards banquet for the Entrepreneur of the Year organized by Ernst & Young at the Makati Shangri-La Hotel on the night of October 15, 2009. The award is acknowledged as the most prestigious business award for entrepreneurs. Under her leadership, CDO-Foodsphere Inc. has become a modern and leading food company known for its product innovation that provides the best quality and affordable food p roducts, earning the trust of the Filipino people. Mrs. Ong is indeed a great inspiration to all Filipino women and to all Filipino entrepreneurs. Corazon Dayro Ong lives up to her dream – to serve the Filipino consumers with affordable and quality food products that can be enjoyed within the comforts of their homes. Sh e promises to continue to pursue this dream, the CDO way.
II.
Operations Strategy and Competitiveness
CDO Foodsphere’s Mission, Vision and Values
Our Vision
We exist to provide TOTAL SATISFACTION to the FILIPINO CONSUMERS through the development, manufacturing, and marketing of HIGH QUALITY NUTRITIOUS FOOD PRODUCTS at REASONABLE PRICES. We are committed to do these at all times through CONTINUOUS PRODUCT DEVELOPMENT, TECHNOLOGICAL ADVANCEMENT, ORGANIZATIONAL EFFICIENCY, and EXCELLENT CUSTOMER SERVICE Our Mission We shall continue to be a LEADING and GROWING company whose products shall be present in every household. Competitive Priority Cost and Quality o o
Promote the health benefits of the new product extension Price strategy – value for higher but reasonable prices
Target Market
Male and female 18-45 years old Students, working professionals, housewives, health fitness conscious, physically active, sports-oriented individual and purchase decision makers (mothers)
Macro-environmental factors 2 year tuna ban in the pacific is extended Inflation rate is expected to remain at 4% LEVEL (2013-2016) Increase in the demand for healthy food choices E-commerce has shattered 56.45% of the total population is composed of ages 18-45
Swot Analysis
Opportunity: 1. Foreign Marketing Campaigns Threats: 1. Price Fluctuation 2. Competitors Competitors: a) Century – Direct Competitor. b) Sea Quest c) 555 Tuna d) Blue Bay Tuna e) Fresca Tuna
MARKET SHARE
III.
Product Design Idea Generation
All product designs begin with an idea. The idea might come from a product manager who spends time with customers and has a sense of what customers want, from an engineer with a flare for inventions, or from anyone else in the company. To remain competitive, companies must be innovative and bring out new products regularly. In some industries, the cycle of new product development is predictable.
The first step consists in gathering what archaeologists call “artifacts” of the case. Artifacts are basically materials that you can analyze so that you can piece together what could have or even what should have happened. In this case, those artifacts included San Marino’s product literature, advertisements, Web Page, the speech of the CDO president when she accepted the award for entrepreneur of the year, corporate blogs, FB postings, talk-show interviews and the like. At this point, it’s useful t o distinguish this technique fr om the more popular “reverse engineering” method, which is after duplicating the original product after tearing it apart and analyzing the functions of the parts. Our technique is not after duplicating a product. It’s after uncovering a process, the product-innovating process. The next step is to analyze those artifacts to answer these four questions. First is: “Who are the two or three behavioral market segments that the process was trying to understand?” Note that it’s plural, namely, segments and not one target segment. The end in view of the segmentation analysis is that single target market segment. Also, note that it’s behavioral segments and not demographic or socio-economic segments. In this case, by behavioral segments is meant the fisheating segment, the meat-eating segment and the veggie-eating segment. Secondly, for the consumers of each of the two or three behavioral segments, ask: “What did you use to eat before or what were you fond of eating before?” The most likely answers are predictable. For example, the fish eater may say “meat,” and the meat eater may say “beef but now pork alternat ing with fish.” The vegetarian may say “grilled veggie but now fresh raw veggie.” The next question is asked to socio-demographically profile each of the two or three behavioral segments. For example, the fish eater who said he used to eat meat before when asked about his demographics may say that he’s in his 50s, a hypertensive, and almost exclusively on a meat diet before. Finally, the crucial question from whose answers can be harvested the product-innovation leads and ideas with the right analysis. In the case of San Marino, that analysis yielded the product concept of corned tuna. The foregoing analysis technique has solid scientific grounding. It combines archaeology for its data (or artifact) gathering with “deconstruction” and consumer insighting for its analysis. “Deconstruction” is a semiotic analysis variant pioneered by the French philosopher Jacques Derrida and explained in his 1967 work, “Of Grammatology.” Consumer insighting, is defined as an analytical technique for uncovering product innovations from “seeing what everyone has seen but thinking what nobody has thought.”
Product Life Cycle
Intermittent and repetitive operations typically focus on producing products in different stages of the product life cycle. Intermittent is best for early in product life; repetitive is better for later when demand is more predictable. In CDO’s case, it uses repetitive operations since it is already in its maturity stage and the demand for the product is more predictable.
Decision
What the company use
Product variety
Small
Degree of standardization
High
Organization of resources
Line flow
Path of product through facility
Line flow
Factor driving production
Forecast of future Demand
Critical resource
Capital-intensive
Throughput time
Shorter
Type of equipment
Specialized
Degree of automation
High
Work-in-process inventory
Less
Line processesare designed to produce a large volume of a standardized product for mass production. They are also known as flow shops, flow lines, or assembly lines. With line processes the
product that is produced is made in high volume with little or no customization. Think of a typical assembly line that produces everything from cars, computers, television sets, shoes, candy bars, even food items. PROCESS DESIGN The company uses Make-to-stock strategy that means the company produces standard products and services for immediate sale or delivery.
