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San Miguel Corporation (SMC) is a leading Philippine conglomerate with a diverse portfolio in food, beverage, energy, and infrastructure, operating across multiple countries. The company focuses on market expansion and customer engagement through innovative marketing strategies and a strong distribution network, while also adapting its products to meet consumer needs. Recommendations for SMC include expanding its target market to include children, enhancing product innovation, and improving marketing strategies to maintain its competitive edge globally.

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Merianne Caabay
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0% found this document useful (0 votes)
1K views4 pages

Summary

San Miguel Corporation (SMC) is a leading Philippine conglomerate with a diverse portfolio in food, beverage, energy, and infrastructure, operating across multiple countries. The company focuses on market expansion and customer engagement through innovative marketing strategies and a strong distribution network, while also adapting its products to meet consumer needs. Recommendations for SMC include expanding its target market to include children, enhancing product innovation, and improving marketing strategies to maintain its competitive edge globally.

Uploaded by

Merianne Caabay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Summary

San Miguel Corporation has over 100 sites in the Philippines, Southeast Asia, China, Australia,
and New Zealand. Along with the Philippines, it has manufacturing operations in most Southeast
Asian countries. SMC’s global presence allows for efficient distribution, increased product
availability, and better access to global markets. As a result, the organization is better equipped
to attract more target customers from diverse places, as well as suppliers and business partners.
In the marketing mix, Esther Jim (2022) states that “place is important in finding the most
efficient methods of conveying items to customers.” A new site creates a new revenue stream,
increasing profitability and expanding business options. As a result, the company's commercial
sites allow it to better serve customers from many countries. To ensure the quality of its products
and services, SMC has a variety of production facilities located throughout the Philippines, as
well as a well-developed distribution infrastructure serving a huge number of outlets. San Miguel
Corporation constantly monitors and seeks for new avenues for market expansion and corporate
expansion. They seek the optimum market placement for their products and industries, as well as
the optimal location for economic and corporate development. Due to client demand and
company expansion,
SMC has grown into manufacturing and service operations such as energy, mining, electricity,
construction, and tollways around the country. Moreover, the organization explores new ideas
and activities to expand product volume across the marketing industry, as well as improve
product distribution performance and efficiency. Food and beverage, gasoline and oil,
infrastructure, energy, and real estate are among San Miguel Corporation's (SMC) well-known
sectors. SMC has built strong brands and processes over time, allowing them to grow their
business and fully meet their clients' needs. Promoting is any method or approach that informs
target buyers about the things to be sold at the correct price and location. Marketing includes
sales promotion, advertising, and personal selling." This strategy captivated clients and
encouraged potential buyers to buy SMC items in multiple ways. The corporation has created a
new brand image by claiming that their products make our lives better and help us become better
versions of ourselves.
San Miguel Corporation, with the help of its marketing personnel, promotes a wide range of
high-quality goods and services. They design commercials, TV commercials, social media ads,
media networks, billboards, and posters. For example, the yearly "San Miguel Oktoberfest" is a
statewide celebration full of excitement and anticipation. Aside from regular promotions, SMC
also hosts OPM concerts and offers limited edition products. The Petron Corporation, a San
Miguel Group company, also organizes raffles and giveaways from time to time, such as the
“Panalo Bakunado” and the Petron Value Card (PVC) as a client gift. These campaigns attempt
to not only attract new clients but also to entertain existing ones, demonstrating that their
products and services are the best. San Miguel Corporation also strengthens and increases the
value of their brands by increasing product visibility. SMC has grown into one of the country's
largest corporations by successfully implementing their business strategy and concepts. It shows
that a good promotion can benefit both the firm and the economy.
Company, Supplier, Marketing Intermediaries, Competitors & Target Market
San Miguel Corporation (SMC) is a Philippine conglomerate with operations in food and
beverage, packaging, energy, and infrastructure. It is a multinational business that provides
services and products to both Filipinos and foreigners. It is one of the Philippines' largest
corporations by revenue and assets, accounting for roughly 4% of the country's GDP. SMC was
formed in 1890 and has grown from a packaging, food and beverage, and beer company to a
diversified conglomerate. There is also ice cream and hot dogs. Items include pet bottles and
molds, jars, plastic pallets, glass and weaving products, as well as boxes for the culinary,
pharmaceutical, chemical and personal care industries. SMC provides services such as real estate
development, sales, and leasing, insurance brokerage, shipping, logistics, and stock transfers.
This includes manufacturing and trading facilities in the Philippines, Hong Kong, China and
Australia.
A supplier is a person or business that offers goods or services to another. It helps manufacturers
provide high-quality items to wholesalers and retailers. A supplier acts as a link between a
manufacturer and a store, facilitating communication. A major Philippine corporation, San
Miguel Corporation carefully selects its suppliers. They supply raw materials to the corporation,
which they then manufacture, allowing them to increase output. SMC's suppliers include Kirin
Brewery, Nihon Yamamura Glass, Hormel Foods, and Korea Water Resources. SMC's
operations have always included sustainability even before it became a catalyst for positive
change. It refers to the SMC's returnable glass bottle system for its beer and liquor products.
They've been doing this for about 130 years. They even encouraged Western economies to adopt
reusable and recyclable packaging.
Marketing intermediates assist producers distribute their products and help consumers identify
products they need or want to buy. It is a corporation that helps a company market, promote, and
distribute its products to wholesalers or retailers and customers. SMS has various distribution
subsidiaries. San Miguel Integrated Sales of San Miguel Foods Incorporation provides logistical
and selling services to the value-added businesses of SMPFC, including Magnolia, PF-Hormel,
and SMSCCI. San Miguel Mills, Inc. (SMMI) produces and distributes flour, flour mixes, and
bakery ingredients. Aside from ready-to-eat meat products, Purefoods Hormel Company, Inc.
distributes refrigerated processed meats including hot dogs and cold cuts as well as canned meat
products like corned beef, luncheon meats, sausages, meat spreads and canned appetizers. It is
responsible for selling butter, margarine, cheese and milk. It also sells jelly snacks and
specialized oils. It also manufactured a range of items such as sugar-free coffee mixes, 100%
Premium Instant Black Coffee, 3-in-1 flavored coffee mixes, and coffee mix with cereals, which
it is now distributing in Singapore. PT San Miguel Pure Foods Indonesia also manufactures and
distributes processed meats in Indonesia. It also includes San Miguel Pure Foods Investment and
San Miguel Hormel in Britain and Vietnam, which raise live hogs and produce feed and
processed meats. This will increase the San Miguel Corporation's revenue, sales, and assets.
San Miguel Corporation is one of the Philippines' top corporations, leading the market and
investing in several businesses. Although SMC is based in the Philippines, it has global
competition due to its global distribution. Despite foreign competition, it remains the Philippines'
top-selling beer. SMC's first competitor is the Hangzhou-based Wahaha Corporation, which
employs 30,000 people and generates $17 billion in annual revenue. In Spain, the Mahou Group
has as many loyal consumers as SMC. Third, Asahi Breweries of Japan employs 5,949 people
and offers beer, soft drinks, and other products globally. So in 1982, the SMC met its first
competitor in the Philippines, Asia Brewery, with a top-selling product simply called “Beer”.
Asia Brewery's competition strategy is stated to be aggressive. According to a report, Asia
Breweries even hired San Miguel's brew master.
A target market is a group of people who share similar traits and are identified as possible clients
for a company's goods or services. Identifying a target market allows a company to focus its
efforts and increase revenues. Market Segmentation considers four factors: demographic,
geographic, behavioral, and psychographic. Market segmentation is a marketing approach that
divides a large target market into smaller groups to better understand them. With Marketing
Segmentation, businesses may better use and develop their product cycles by targeting certain
client categories. San Miguel Corporation's target market is determined by the company's
products and services, which include beverages, food, poultry, animal feeds, oil refining, and
packaging. San Miguel Corporation's non-alcoholic product clients are all ages. Their target
demographic is adults aged 18 and above who are heavy, moderate, and light drinkers. Their
food products are aimed at children aged 3 to 12 and adults aged 22 to 45. Their target market for
oil refining is adults aged 16 and up who can drive. San Miguel Corporation's target market
includes people of various genders, races, and religions. San Miguel Corporation's products and
services are available to all customers, regardless of their demographics. In general, men prefer
alcoholic beverages and petroleum products. Person's Status and Type - A person's status and
type are also demographic characteristics. San Miguel Corporation's main target markets are
parents who buy food, adults who drink beer, employees who drive, and farmers who care for
animals. San Miguel Corporation targets upper class to elite to working class social classes.
Their goods are class-adaptable. There are products for the medium and higher classes. Their
target market includes all clients who qualify to acquire their items. San Miguel Beer, the
company's flagship product, is one of the world's top 10 beer brands. Outsourcing is a key
component of the company's growth strategy. Its goods are sold in key marketplaces worldwide.
San Miguel Corporation's target market is not just the Philippines but also Asia-Pacific. San
Miguel Brewery Inc. targets customers who enjoy a wide range of foods, whereas San Miguel
Foods targets consumers who enjoy poultry. The company's major focus is on people who
always travel and use vehicles.
Recommendation
Proponents of this study want to extend the business's target market. This extension includes
children's items. Because most San Miguel Corporation items are for adults, we believe. This can
boost revenue and audience engagement. San Miguel Corporation should produce new products,
innovate, and collaborate with other companies to compete. They should conceive of a product
that would appeal to the masses and reflect customer preferences. They should also improve the
things they already have and adapt them to suit the needs of the customers. Being able to form
agreements with other current companies would also help them preserve their competitive
advantage, especially if new companies emerge with the same product. This allows them to
maintain their global leadership and top-selling enterprises. San Miguel Corporation should
invest in user behavior research to better understand and connect with global markets.
Identifying the target market and region helps the organization better understand what customers
want and how to improve it. To effectively accept cultural variations, the organization should
devise efforts that maximize distribution efficiency and flexibility. To prevent foreign asset loss,
SMC should improve its marketing approach both in our country and in other countries where it
has facilities. They should consider enhancing product packaging and innovative advertising to
keep up with or establish a trend. Promoting SMC's products and brands to potential customers is
another option.

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