ICCT Colleges Foundation Inc. V.V Soliven Ave. II, Cainta, Rizal College of Business and Accountancy Submitted to: Mrs. Sherryl Guanlao Instructor Submitted by: Lyka Joy E. Gereña MGMT205/Add70 COMPANY NAME: Creative Food Technology Corporation POINT OF VIEW: Alex, a BS Food Technology graduate and MBA degree holder TIME CONTEXT: Creative Food Technology Corporation, established in 2007 SHORT HISTORICAL BACKGROUND: Creative Food Technology Corporation (CFTC), is the brainchild of Alex, a BS Food Technology graduate and MBA degree holder who has substantial experience working in the area of research and product development. In 2007, Alex quit his job and founded CFTC. He launched Wake Up! Extreme, a line of hard candy marketed as “the first energy candy in the Philippines.” This would be the start of what could only be described as an entrepreneurial streak. In 2008, Alex also established a water-refilling business, PureDrops, which catered to households. In 2009, Alex took over the management of their family business of reconditioning and trading secondhand offset printing equipment. In the same year, he also established Offset Offsite, an offset printing business that provided all-around printing services. STATEMENT OF THE PROBLEM: Having embarked on different businesses in the span of only a few years, Alex faced several problems: non-remittance of revenues, non-payment of consigned products, and pilferage. Another major issue was that although Wake Up! Extreme was different from other candies as it was probably the only energy candy available, consumers could not differentiate it from other candies and already had a set price in mind. Thus, they could easily switch to other brands when the price of the energy candy was increased. This perception became a constraint on the margins of the product line. Demand for the energy candy has yet to pick up as it was still virtually unknown to their target market. AREAS OF CONSIDERATION (SWOT ANALYSIS): STRENGTHS 1. 2. 3. 4. Uniqueness of product Reputation for innovation Low cost of products Product differentiation WEAKNESS 1. Lack of demand 2. Weak internal control 3. Unpopularity of the product among consumers OPPURTUNITIES 1. New market trends THREAT 1. Possibility of “taste fatigue” 2. Market competition ALTERNATIVE COURSES OF ACTION: 1. Offer free taste of product on large quantity of new market. PROS - Will introduce product on new market with an immediate feedback. CONS - May take time since new product is not known for the new market yet. 2. Innovate a different flavors of candy. PROS – Will introduce variety of flavored energy candies to the consumers CONS – Old market may not brace the innovated product. 3. Advertisements of product among Filipino community. PROS – Filipinos may do a word-of-mouth advertising CONS – May not embrace with the new market yet since it is a new taste with them CONCLUSION: I recommend ACA 2 followed by ACA 1 and ACA 3. The company must create different flavors of energy candies for customers have different taste preferences. They must use advertisements through TV and social media and offer free taste of their products in malls, schools and any public areas. Identify the appropriate target market and introduce the product to them.
