VALUE CHAIN ANALYSIS
RESEARCH AND DEVELOPMENT
SUPPLIES
The largest percentage of cost of good sold were wheat/ flour, palm oil,
shortening, coconut oil, and sugar.
The wheat/ flour is sourced from the United States.
The palm oil is sourced from multiple suppliers and refiners which buy from
Malaysia and Indonesia.
The sugar and coconut are sourced mainly from local supplier in the
Philippines and Thailand.
MANUFACTURING
The company as eight (8) production facilities with seven- co located distribution
centers. Monde Nission manufactured more than 80% of its products sold in the
Philippines.
DISTRIBUTION
The company has seven (7) co-located distribution centers in the Philippines.
Monde Nissin’s Logistics network is capable of handling both dry and chilled
products. Delivery to customers is enabled by more than 700 delivery truck,
engaged via third-party transport service providers.
Monde Nissin’s main distribution channels are traditional trade, modern trade, and
the community distribution network.
TRADITIONAL TRADE: Refers to the local supermarkets, groceries, wet markets,
and sari-sari stories.
MODERN TRADE: Referes to large retailers, national wholesalers, and convenience
store chains.
COMMUNITY DISTRIBUTION NETWORK: Refers to alternative distribution platforms
catering to end consumers such as online distribution and international
distributions.
SALES AND MARKETING
Monde Nissin promotes and enhances brand awareness through various
marketing which includes media mix including digital and social media flatforms
(ads), television (commercials), and radio, brand activation such as school tours,
sampling, and other ground promotional events.
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RIVALRY AMONG FIRMS
Background: The company was the first in the Philippines to lauch instant noodles
in no-cooks bowls in local flavors such as La Paz Batchoy and Bulala. Also, it
developes new flavors such as Asian Line. In baked goods category, the company
launched first package sponge cake in the Philippine market and the first
premium water product filled with chocolate and rich crispies.
Step 1: Identify the Industry Economic Characteristics
VALUE CHAIN ANALYSIS
1. Inbound Logistics: Monde Nissin Corporation ensures a consistent supply of
high-quality raw materials by partnering with reliable suppliers and maintaining
advanced storage facilities to preserve these materials until needed for
production.
2. Operations: Monde Nissin runs efficient production facilities both domestically
and internationally, equipped with modern technologies to ensure the consistent
quality of its wide-ranging products, including instant noodles,biscuits and baked
goods, and meat substitutes.
3. Outbound Logistics: The company has built an extensive distribution
network,traditional trade, modern trade, and the community distribution network;
enabling timely delivery of products to both domestic and international markets,
which supports its strong market presence.
4. Marketing and Sales: Monde Nissin Corporation promotes and enhances
brand awareness through various marketing which includes media mix including
digital and social media flatforms, television, and radio, brand activation such as
school tours, sampling, and other ground promotional events.
5. Service: The company prioritizes customer satisfaction through
comprehensive after-sales support, ensuring quick responses to consumer
concerns, which in turn, enhances brand trust and loyalty.
POSTER’s FIVE COMPETITIVE FORCES
Rivalry Among Existing Firms
Monde Nissin Corporation is a leading company in the Philippine food and
beverage market, especially in the instant noodle and biscuit segments. It
competes in a challenging market with several major rivals, including Nestle
Philippines, Unilever Philippines, and Universal Robina Corporation. Among these,
Nestle and Unilever are significant competitors due to their wide range of
products and strong market presence. Their global reach and diverse offerings
give them a slight advantage in market share and brand recognition.
To maintain its competitive position, Monde Nissin employs a range of
strategies. The company’s diverse product portfolio includes instant noodles,
biscuits, and meat products. It invests significantly in strengthening its brands
and innovating its product offerings. The “Lucky Me!” brand, for instance, is a key
part of its success in the instant noodle market. Monde Nissin continually
introduces new flavors and products to meet changing consumer preferences.
Additionally, the acquisition of Quorn has enabled the company to enter new
markets and expand its product range, further enhancing its presence in the
industry.
The Philippine market offers good growth opportunities for Monde Nissin,
given its young population, strong domestic consumption, and ongoing
urbanization. Despite facing significant competition from well-known brands such
as Nestle’s Maggi, Unilever’s Knorr, Indofood’s Indomie, and Capital Foods’
Ching’s Secret in the instant noodle sector, and from Mondelez International’s
Oreo, Chips Ahoy!, City Bake, Jacobs Douwe Egberts, and Universal Robina
Corporation in the biscuit sector, Monde Nissin’s strengths are clear.
The company’s advantages include a wide range of products, strong brand
recognition, significant investment in research and development, and a broad
distribution network. Monde Nissin’s focus on sustainability and innovation also
sets it apart from its competitors. These factors contribute to Monde Nissin’s
leading position in the industry, helping it maintain a competitive edge in a
challenging market.
