Robina Universal Corporation

Business Proposal in Management
(UNIVERSAL ROBINA CORPORATION)
GENE JUSTINE ANSONG SACDALAN

Threat of New Entrants
-There Are Many Product to Evolve And To Innovate
-The Capital Requirements Are High Because Companies Area Already Established. Big
Companies That Have Been In The Industry For Several Years And The Brands Are Already
Known To Customers.
-Distribution of Real Leaf, Lipton, Nestea Products Are Available Nationwide
-There Are High Entrance Barriers Because There Are Big Companies That Have Economies of
Scale
Bargaining power of buyers
-Buyers strongly influenced the pricing strategy of the product because there are many
substitute and competitors that can lead the buyers to switch
Bargaining power of suppliers
-The companies have the power to change the suppliers depending on the deal
Threat of substitute product
-RTD industry is very huge some of the companies not only make fruit juice, but have products
like water, sodas, alcoholic beverages, vegestable juices, and other beverages. There’s a big
threat since the competition and the pricing is very intense.
Universal Robina Corporation (URC) is the leading branded convenience food and beverage company in
the Philippines. Touted as the country’s first “Philippine multinational” as it has the widest geographical
footprint among local food manufacturers, URC has blazed the trail for the branded foods industry. The
company has shaped the competitive landscape of local consumer brands through its innovative
products, wide distribution, and high-impact marketing. URC is best known for manufacturing and
distributing high-performing products, URC is a trendsetter in the beverage industry with its coffee and
ready-to-drink products. It grew the local non-carbonated beverage market with the successful launch
and continuing promotion of C2 Cool & Clean Green Tea. Building on the global trend towards health
and wellness, C2 spearheaded the expansion of a new and high-growth segment in the Philippine
beverage industry: the green tea segment. URC built on that success with forays into other areas of the
non-carbonated beverage market, such as juices, energy drinks, and ready-to-drink coffee, among
others. Thus, C2 Cool and Clean Green Tea was born. This was the very first locally-manufactured RTD
green tea in PET bottles, and it took the market by storm. C2 was positioned as a lifestyle brand, while
educating the consumer about the health benefits of green tea. Consumer events also continued to harp
on the advantages of tea, while promoting an active, healthy and well-balanced lifestyle. C2 also
competed directly with carbonated soft drinks manufacturers at their price points. C2 was a critical and
commercial success, Fuel the growth of a new category (RTD Tea) and increasing the share of non-
carbonated beverages in the total market. It was a major home run for URC, as C2 sales rapidly shot up,
making it our number one brand. C2 led the charge for our fledgling beverage business, and provided
another ‘leg’ for URC to stand on besides snack foods, where it remains number one. However, in the
years since C2’s launch, the market dynamics have changed dramatically. Other companies began to
take notice of the non-carbonated drinks space, with most players adopting PET packaging and similar
pricing. The success of C2 spawned a host of players wanting a piece of the pie, all seeking to cash in on
the interest in tea-based drinks. Other categories such as energy drinks and juices also saw cutthroat
competition and torrid growth, as multinationals and locals alike piled into the market. The carbonated
soft drink manufacturers weren’t sitting pretty, either. After watching the gains in the non-carbonated
beverage space (at the expense of their own bread and butter), the main competitors came out
swinging. They poured advertising and promotions money into the market, using placement and trade
lockouts to stifle the non-carbonated players. They made their products more competitive, with new
SKUs at lower price points. And they revamped their ad campaigns, pushing soft drinks as a lifestyle and
heritage brand. Against this backdrop of intense competition over the past few years, URC began girding
up for a new thrust into the hearts of our consumers. We are now employing a two pronged strategy –
attacking through new pack sizes for specific channels, and at the same time, launching new products to
further excite and grow the RTD beverage market. In 2009, C2 expanded its line, beginning with the
introduction of its Sugar-free variant in May. In the last quarter of 2009 URC launched the new C2 Solo,
a 230ml product priced and sized for the tertiary trade. This product goes head-to-head against the
newer and cheaper soft drink SKUs, with a suggested retail price of Php 9.00, making C2 more attractive
to store owners and more affordable to consumers. At the same time, URC also launched its C2 1.5 liter
bottle for the modern trade, bringing the all the goodness of C2 into a bottle for family and friends to
share. These two new products were responsible for bringing C2 sales volumes to new record highs!

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Business Proposal in Management

(UNIVERSAL ROBINA CORPORATION)

GENE JUSTINE ANSONG SACDALAN

-There Are Many Product to Evolve And To Innovate

-Distribution of Real Leaf, Lipton, Nestea Products Are Available Nationwide

Bargaining power of buyers

Bargaining power of suppliers

Threat of substitute product

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