Pricing Plan

University of San Agustin
College of Commerce
Gen. Luna Street, Iloilo City, Philippines, 5000
CANNED SARDINES
PRICE MONITORING PLAN
In Partial Fulfillment of the Requirements for the Subject
MM 213 - Pricing Strategy
Of Bachelor of Science in Business Administration
Major in Marketing Management
Submitted by:
Labro, Kelly Shane P.
Sable, Antonio III D.
BSBA MM 2-C
Submitted to:
Mrs. Armi Rose Titular, MBA
January, 2021
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College of Commerce
TABLE OF CONTENTS
Part I Background of the Report 3
Part II Price Monitoring Objectives 8
Part III Comparative Price Data 9
Part IV Analysis 16
Part V Recommendations 21
Part VI Conclusion 22
Part VII Insights 23
Part VII References 24
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College of Commerce
Background of the Report
Pricing is the method of determining the value a producer will get in the
exchange of goods and services. It is used to set the price of producer’s offerings
relevant to both the producer and the customer. Every firm operates with the
ultimate objective of earning profits and, therefore, the price of a product must be
set keeping in mind the cost incurred in its production along with the benefits it
offers for which people are ready to pay extra. (businessjargons.com)
Due to price monitoring it is possible that we create a strategy with the product
rotation and brand value. So, the price monitoring helps us that we make the best
pricing strategy and rules, also maximize the profit. The price monitoring provides
us a useful system which we can check the products, brands, categories, costs,
promotion, and relevant information which we need.
Commodities are most often used as inputs in the production of other goods or
services. Food is a basic necessity for human health and survival that is currently
produced in sufficient quantity to feed everyone in the world, therefore it is
considered as one of the most important commodity in totality. In the Philippines,
a kilo of fresh sardine costs P80 to P180. Smoked sardines cost around P5 to
P10 a piece, depending on the size. In cans, which are widely distributed and
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College of Commerce
accessible in retail stores and probably the most popular food, they cost around
P17 to P22, making it one of the most affordable foods. Sardines are harvested
on a massive scale by commercial fishers. They are also consumed by larger
predators in the open sea, yet, their population keeps bouncing back.
We chose canned goods sardines as the basic commodity of our chosen product
to be monitored with a 5.5 oz size and have a typical weight of 155 grams with
different brand names and company. This includes; (1) 555 sardines, (2) King
Cup Sardines, (3) Ligo Sardines (Green) (4) Mega Sardines, and (5) Asahi
Sardines. We conducted this price monitoring in an online store such as lazada
and shopee as to where would either of the commodity be available. We also
conducted price monitoring in a grocery here in Leon, Iloilo.
555 sardines
Century Pacific Food, Inc.’s tuna enterprise is composed of Century Tuna, 555
Tuna, Blue Bay Tuna, and Fresca Tuna which offer delicious, healthy and
superior quality tuna meals every day. Century Pacific Food Inc.’s sardines
business packs value with good taste and quality in the canned sea foods
category. Canned sardines, bangus (milkfish), mackerel, and squid are branded
555, Blue Bay, Lucky 7, and Century. 555 Sardines is the “Super Ulam Pinoy”
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College of Commerce
because it is rich in calcium for stronger bones, protein for muscle building,
lycopene for cancer prevention, iodine and vitamin D. Available in 155g and 425
King cup Sardines
King Cup Sardines is produced in the Philippines by Permex Producer and
Exporter Corporation, a canned food manufacturing and toll packing company
exporting canned sardines and tuna products worldwide since 1985. This family
corporation is headed by its President Jimmy Yap and the second generation
which includes Vice President of Sales and Marketing Engineer Jaydrick Yap and
Chief Finance Officer Eugene Yap. King Cup Sardines are made from fresh
tamban fish cooked in tomato sauce with just the right amount of spices. A single
can of sardines is packed with high proteins and is low in carbohydrates. It is also
a good source of calcium, iron and omega 3 fatty acids. King Cup Sardines has a
firm, meatier texture compared to other sardine brands in the market. Since
Filipinos love to have their sardines sautéed, this brand is definitely suited for
moms and lolas in the kitchen. . King Cup Sardines has two variants, one in
tomato sauce and the other one having tomato sauce with chili. King Cup
Sardines is produced with the highest quality standards in food processing
technologies. Our vast knowledge in food manufacturing and fish preservation
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College of Commerce
techniques acquired thru years of exporting canned fish products worldwide,
Guarantees you get good, fresh and affordable food products.
Ligo sardines
Began the journey in 1954 when Mr. Gregory Tung Sr., founder of A. Tung
Chingco Trading, Inc. partnered with Liberty Gold Fruit Co., Inc. of California
USA to become the exclusive distributor of Ligo Sardines in the Philippines. In
the 1980s, Ligo continued to dominate the local canned fish industry. To satisfy
the increased market demand, second-generation Gregory Tung Jr.
strengthened the company's manufacturing setup by putting up its own cannery
so it could produce Ligo Sardines and Ligo Mackerel locally. Through the years,
it has provided not just sustenance but brought families and friends together.
From the mother who carefully prepares her child’s baon, to the wife who
prepares a warm meal for her husband after a long day, Ligo has been an
expression of love. It’s comfort food at its best. It brings smiles to faces and fills
the heart and tummy with joy.
Mega Sardines
Mega Global Corporation is a leading manufacturer and distributor of canned
goods. It is the company behind MEGA SARDINES - the Number 1 Sardines
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Brand in the Philippines, and other innovative, high-quality and value-for-money
products namely, MEGA CREATIONS Premium Sardines, MEGA TUNA, and
MEGA PRIME Canned Vegetables. Mega Global is one of the 11 sardine
canning factories in Zamboanga City, which is considered as the sardine capital
of the Philippines. About one million metric-tons of fish are being caught in the
Sulu Celebes Sea, which surrounds the Zamboanga peninsula. The company,
founded by William Tiu-Lim, started its operations in 1995 and then opened its
first canning plant in 1998. Now, it has one canning factory that produces about
300,000 cans per day in Talisayan and another office in Cawit that handles
logistics, dry-docking, ship-building, engineering, and allied businesses. It also
operates the Tawi-Tawi-based Bongao Hatchery, which is a joint enterprise of
the national and provincial government. The company prides itself to provide
local employment, as Mega Global employs 2,000 Zamboangeños in its plants. It
exports to 41 countries, including Europe, United Arab Emirates, US, Canada,
Saudi Arabia, and Taiwan, among other countries. Available in 155g EASY-
OPEN-CANS suited for your in-home convenience.
Asahi sardines
The only one sardine plant in Cebu, located in Mandaue City that holds a market
share of less than one percent in the country. It is only available in Visayas and
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College of Commerce
Mindanao regions. Asahi sardines have also two variants, plain tomato sauce
and in chili sauce plain
Price Monitoring Objectives
Generally, we are tasked to choose a commodity with the same weight and
height on different brands with at least 5 brands. Visit a specific market/ store
and monitor price changes and monitor price changes once a week from
December 1, 2020- January 12, 2021.
Specifically, we need to identify the following data:
(1) Name of the product
(2) Brand of the commodity
(3) Market price and track changes
(4) Percent changes
(5) Price differentiation.
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Comparative Price Data
555 KING CUP LIGO MEGA ASAHI

SARDINES SARDINES SARDINES SARDINES SARDINES
(GREEN)
Month Week Price Level Price Level Price Level Price Level Price Level
December 1 ₱18.50 ₱17.00 ₱20.00 ₱19.00 ₱19.00

2 ₱18.50 ₱17.00 ₱20.00 ₱19.00 ₱19.00
3 ₱19.00 ₱17.00 ₱21.00 ₱20.00 ₱19.00
4 ₱19.00 ₱17.00 ₱21.00 ₱20.00 ₱19.00
January 1 ₱19.00 ₱17.00 ₱21.00 ₱20.00 ₱19.00
2 ₱19.00 ₱19.00 ₱19.00 ₱20.00 ₱18.50
Figure 1: 6-week Price Monitoring in an online store (Dec. 1 2020-Jan. 12, 2021)
During the price monitoring of our chosen commodity which is canned sardines,
we have chosen to monitor their prices on an online stores such as lazada and
shoppee. We monitored and observed the prices our chosen commodity from
Dec. 1 2020-Jan. 12, 2021. The data that have been gathered may either project
a price consistency or price changes over the 6-week period.
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College of Commerce
GROCERY STORE (CALFAM) PRICE
555 SARDINES ₱22.00
KING CUP SARDINES ₱22.00
LIGO SARDINES (GREEN) ₱22.00
MEGA SARDINES ₱22.00
ASAHI SARDINES ₱22.00
Figure 2: shows the Price of the commodity in a grocery store on the period
covering Dec. 1 2020-Jan. 12, 2021
We have also monitored their prices on a physical grocery store which is Calfam
Grocery and observed the prices of sardines from Dec. 1 2020-Jan. 12, 2021.
The data shows that the prices of sardines over the 6-week period didn’t have a
movement on a physical store
Canned Sardines are generally marketed through wholesaler. Based on the
prices on the different sardines displayed mostly in Supermarket and groceries,
the government and the department of trade and industry should strictly
monitored the prices of Sardines based on the suggested retail price impost by
the government.
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555 SARDINES
PHP 19.10
PHP 19.00 19 19 19 19
PHP 18.90
PHP 18.80
PHP 18.70
PRICE
PHP 18.60
PHP 18.50 18.5 18.5
PHP 18.40
PHP 18.30
PHP 18.20
1 2 3 4 5 6
WEEK
Figure 2: shows the Price changes of 555 Sardines for the period covering Dec.
1 2020-Jan. 12, 2021
The first commodity which is the 555 Sardines during the 1 st and 2nd week shows
that the price maintain its cost at ₱18.50 in an online store. But on the 3 rd to 6th
week, it increased an amount of ₱0.50 that causes to elevate its price to ₱19.00.
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KING CUP SARDINES

PHP 19.50
PHP 19.00 19
PHP 18.50
PHP 18.00
PRICE
PHP 17.50
PHP 17.00 17 17 17 17 17
PHP 16.50
PHP 16.00
1 2 3 4 5 6
WEEK
Figure 3: shows the Price changes of King Cup Sardines for the period covering
Dec. 1 2020-Jan. 12, 2021
The 2nd commodity which is the King Cup Sardines from the 1 st week to its 5th
week shows that it remained consistent on its price of ₱17.00. But on the 6th
week, the commodity increased an amount of ₱2.00 resulting its price of ₱19.00.
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LIGO SARDINES (GREEN)

PHP 21.50
PHP 21.00 21 21 21
PHP 20.50
PHP 20.00 20 20
PRICE
PHP 19.50
PHP 19.00 19
PHP 18.50
PHP 18.00
1 2 3 4 5 6
WEEK
Figure 4: shows the Price changes of Ligo Sardines (Green) Sardines for the
period covering Dec. 1 2020-Jan. 12, 2021
The 3rd commodity which is the Ligo Sardines (Green) during the 1 st and 2nd
week shows that the price maintain its cost at ₱20.00 in an online store. On its 3 rd
to 5th week, it increased an amount of ₱1.00, elevating its price to ₱21.00. But
on its 6th week, the commodity deflated to ₱19.00.
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MEGA SARDINES
PHP 20.20
PHP 20.00 20 20
PHP 19.80
PHP 19.60
PHP 19.40
PRICE
PHP 19.20
PHP 19.00 19 19 19 19
PHP 18.80
PHP 18.60
PHP 18.40
1 2 3 4 5 6
WEEK
Figure 5: shows the Price changes of Mega Sardines the period covering Dec. 1
2020-Jan. 12, 2021
The 4rd commodity which is the Mega Sardines shows that the price during the
1st to its 4th week maintained its cost at ₱19.00 in an online store. On its 5 th and
6th week, it increased an amount of ₱1.00, elevating its price to ₱20.00.
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College of Commerce
ASAHI SARDINES
PHP 19.10
PHP 19.00 19 19 19 19 19
PHP 18.90
PHP 18.80
PHP 18.70
PRICE
PHP 18.60
PHP 18.50 18.5
PHP 18.40
PHP 18.30
PHP 18.20
1 2 3 4 5 6
WEEK
Figure 6: shows the Price changes of Asahi Sardines the period covering Dec. 1
2020-Jan. 12, 2021
The 5th commodity which is the Asahi Sardines shows that the price during the
1st week to its 5th week maintained its cost at ₱19.00 in an online store. On its 6 th
week, the price suddenly deflated to ₱18.50.
ANALYSIS
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VARIETY OF SARDINES
PHP 25.00
PHP 20.00
555 SARDINES
PHP 15.00 KING CUP SARDINES
PRICE

PHP 10.00 MEGA SARDINES
ASAHI SARDINES
PHP 5.00
PHP 0.00
1 2 3 4 5 6
WEEK
Figure 7: shows the summary of the data collected from covering Dec. 1 2020-
Jan. 12, 2021
As we are conducting the price monitoring and survey on the different prices of
sardines in the Lazada and Shopee. There are possible reasons affecting the
increase and decrease in price of sardines in the market, it is due to the banned
period of fishing implemented by the government.
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Percentage change represents a degree of change over time; it is used for many
purposes in finance, most notably to indicate the price change of a security. It
can be applied to any quantity that can be measured over time. Positive values
indicate a percentage increase whereas negative values indicate percentage
decrease. If the price increased, use the formula:
(New Price-Old Price)/Old Price] and then multiply that number by 100. If
the price decreased, use the formula [(Old Price - New Price)/Old Price] and
multiply that number by 100 (investopedia.com)
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555 Sardines
3
2.7
2.5
2
PERCENT
1.5
0.5
0 0 0 0 0 0
1 2 3 4 5 6
WEEK
Figure 8: shows the Percent changes of 555 Sardines for the period covering 6-week
period
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KING CUP SARDINES

14
12 11.76
10
8
PERCENT
6
4
2
0 0 0 0 0 0
1 2 3 4 5 6
WEEK
Figure 9: shows the Percent changes of King Cup Sardines for the period
covering 6-period
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6
5
4
2
0 0 0 0 0
PERCENT
-2
-4
-6
-8
-10 -9.52
-12
2 1 3 4 5
6 WEEK
Figure 10: shows the Percent changes of Ligo Sardines (green) for the period covering
6-week period
MEGA SARDINES
6
5.26
5
4
PRECENT
0 0 0 0 0 0
1 2 3 4 5 6
WEEK
Figure 11: shows the Percent changes of Mega Sardines for the period covering 6-week
period
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ASAHI SARDINES
0 0 0 0 0 0
-0.5
-1
PERCENT
-1.5
-2
-2.5
-2.63
-3
1 2 3 4 5
6 WEEK
Figure 12: shows the Percent changes of Asahi Sardines for the period covering 6-
week period
The data shows that for the month of December 1, 2020 to January 12, 2021. For
the 1st week and 2nd week of December 2020 the price of 555 Sardines, Kings
Cup Sardines, LIGO Sardines , Mega Sardines and Asahi Sardines no prices
increases in the market but, on the 3rd and 4th week of December there are a
little increase of 2.70% of 555 Sardines and 5% increase in LIGO Sardines. In
January 2021, no increases of prices in 555 Sardines and Mega Sardines while
the Mega Sardines increases by 2 pesos. The LIGO Sardines and Asahi
Sardines decrease its prices.
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RECOMMENDATION
We recommend that the Department of trade and industry and the Bureau of
Trade Regulation and consumer protection should strictly monitor the prices in
the different brand of sardines in Supermarket and groceries to avoid price
increases if there is last of supply. Through this, the consumers become aware of
possible reasons when the price increases and decreases to look for the welfare
of the consumers. DTI regulates the prices of basic commodities in the
Philippines posted the following suggested retail price for sardines and other
basic commodities. A seller selling way beyond the suggested retail price will get
into trouble. License to sell can be revoked by the government. To avoid a
decrease in your profits, you must formulate a pricing strategy that considers
any regulation. It will affect the pricing strategy of your business’s products in
different ways. Understand the legislation and regulation can ensure you can
display your prices correctly. Your prices need to be clear, accurate and not
misleading to consumers.
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CONCLUSION
After doing a price monitoring, we have concluded that right pricing approach is
essential to remain competitive. It brings you the value you deserve for your
products and services offered and secure the profits you need to invest in
change and growth. Through price monitoring it is possible to notice patterns and
trends in the prices of your market. Doing so can help you understand your
pricing strategies to place your product at an advantage in relation to the market.
Observing the prices, understanding the market around your product,
implementing strategies that increase the conversion rate while respecting
margins are essential steps towards the success. Understanding the macro and
micro trends in global prices is extremely valuable for both public and private
organizations. Changes in prices can serve as early signs of economic change in
a region and can also be used to inform pricing strategies. Pricing data needs to
be up to date in order to use it, but often there is a lag between the time the data
is collected and then released.
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INSIGHTS
Consumers are sensitive to any changes in prices, especially when these
changes are presented as limited time period offer. Price is one of the most
important ways in which customers choose between different products and
services, and knowing the optimum price that you should charge to maximize
sales and profits is a key to beating the competition and one of the most
important aspects we need to look out for is ‘pricing’. Customers today have easy
access not only to products but also to competitor’s products and are known to
be comparative shoppers. As retailers, brands, or business owners, they have to
keep an eye on their competition. We also learned along with highlighting
problems within the business, monitoring and reporting the product price over
time can identify any opportunities to expand. Reports work as a good way of
recording past activity and times when expansion has proven a success. These
can be used to help define future growth opportunities, identify what worked well
and what more could be done in the future.
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References
https://kingcup.ph/
https://thehungrykat.com/post/175491611375/kingcupsardines
https://www.ligo.com.ph/
https://megaglobal.com.ph/who-we-are/
http://www.pcaarrd.dost.gov.ph/home/portal/index.php/quick-information-
dispatch/2302-mega-fishing-corporation-success-story-sardines-innovation-for-
the-benefit-of-all#:~:text=Mega%20Global's%20canning%20plant%20in,to
%2055%20fishing%20vessels%20today.
https://megaglobal.com.ph/product/mega-sardines-in-tomato-sauce-155g/
https://www.sunstar.com.ph/article/1846169/Cebu/Business/Can-supply-hit-
sardine-makers-eye-plastic-pouch
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APPENDICES
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APPENDIX A
Price Monitoring Report for CANNED GOODS (SARDINES)

Covering the Months December 2020 and January 2021
555 KING CUP LIGO MEGA ASAHI
SARDINES SARDINES SARDINES SARDINES SARDINES
(GREEN)
Month Week Price Level % Change Price Level % Price Level % Price Level % Price Level % Change
Change Change Change
December 1 ₱18.50 0 ₱17.00 0 ₱20.00 0 ₱19.00 0 ₱19.00 0

2 ₱18.50 0 ₱17.00 0 ₱20.00 0 ₱19.00 0 ₱19.00 0
3 ₱19.00 2.70% ₱17.00 0 ₱21.00 5% ₱20.00 5.26 ₱19.00 0
%
4 ₱19.00 0 ₱17.00 0 ₱21.00 0 ₱20.00 0 ₱19.00 0
January 1 ₱19.00 0 ₱17.00 0 ₱21.00 0 ₱20.00 0 ₱19.00 0
2 ₱19.00 0 ₱19.00 11.76 ₱19.00 -9.52% ₱20.00 0 ₱18.50 -2.63%
%
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APPENDIX B
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APPENDIX C
Calfam Grocery
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University of San Agustin

PRICE MONITORING PLAN

In Partial Fulfillment of the Requirements for the Subject

MM 213 - Pricing Strategy

Of Bachelor of Science in Business Administration

Major in Marketing Management

Labro, Kelly Shane P.

Sable, Antonio III D.

Mrs. Armi Rose Titular, MBA

Part I Background of the Report 3

Part II Price Monitoring Objectives 8

Part III Comparative Price Data 9

Part VII Insights 23

Part VII References 24

Background of the Report

offers for which people are ready to pay extra. (businessjargons.com)

promotion, and relevant information which we need.

produced in sufficient quantity to feed everyone in the world, therefore it is

considered as one of the most important commodity in totality. In the Philippines,

on a massive scale by commercial fishers. They are also consumed by larger

Sardines. We conducted this price monitoring in an online store such as lazada

and shopee as to where would either of the commodity be available. We also

conducted price monitoring in a grocery here in Leon, Iloilo.

King cup Sardines

King Cup Sardines is produced in the Philippines by Permex Producer and

Exporter Corporation, a canned food manufacturing and toll packing company

Sardines is produced with the highest quality standards in food processing

technologies. Our vast knowledge in food manufacturing and fish preservation

techniques acquired thru years of exporting canned fish products worldwide,

Guarantees you get good, fresh and affordable food products.

USA to become the exclusive distributor of Ligo Sardines in the Philippines. In

the increased market demand, second-generation Gregory Tung Jr.

strengthened the company's manufacturing setup by putting up its own cannery

the heart and tummy with joy.

Mega Global Corporation is a leading manufacturer and distributor of canned

goods. It is the company behind MEGA SARDINES - the Number 1 Sardines

Brand in the Philippines, and other innovative, high-quality and value-for-money

products namely, MEGA CREATIONS Premium Sardines, MEGA TUNA, and

MEGA PRIME Canned Vegetables. Mega Global is one of the 11 sardine

canning factories in Zamboanga City, which is considered as the sardine capital

logistics, dry-docking, ship-building, engineering, and allied businesses. It also

operates the Tawi-Tawi-based Bongao Hatchery, which is a joint enterprise of

local employment, as Mega Global employs 2,000 Zamboangeños in its plants. It

exports to 41 countries, including Europe, United Arab Emirates, US, Canada,

OPEN-CANS suited for your in-home convenience.

and in chili sauce plain

Price Monitoring Objectives

December 1, 2020- January 12, 2021.

Specifically, we need to identify the following data:

(1) Name of the product

(2) Brand of the commodity

(3) Market price and track changes

(4) Percent changes

(5) Price differentiation.

Comparative Price Data

555 KING CUP LIGO MEGA ASAHI

December 1 ₱18.50 ₱17.00 ₱20.00 ₱19.00 ₱19.00

a price consistency or price changes over the 6-week period.

GROCERY STORE (CALFAM) PRICE

555 SARDINES ₱22.00