Part I Company: Our Vision
Part I Company: Our Vision
Part I Company: Our Vision
San Miguel Brewery Inc (SMB), a subsidiary of San Miguel Corp, provides alcoholic and
non-alcoholic beverages. Its product portfolio includes beer, ready to drink juices, fruit
drinks, water and flavored tea among others. The company markets its products under San
Miguel Pale Pilsen, San Mig Light, Red Horse, Cerveza Negra, Gold Eagle, San Miguel
Strong Ice, San Miguel Super Dry, San Miguel Premium All-Malt, San Miguel Flavored and
San Mig Zero brand names. SMB operates production facilities in Philippines, China, Hong
Kong, Thailand, Vietnam, and Indonesia. It also operates distribution facilities serving retail
outlets across China, Philippines, Thailand, Hong Kong, Taiwan, Malaysia, Indonesia,
Vietnam and British Virgin Islands. SMB is headquartered in Mandaluyong City, the
Philippines.
OUR VISION
businesses will lead efforts to deliver on national goals, setting the pace of progress in
the Philippines.
OUR MISSION:
To provide goods and vital services well within the reach of every Filipino, making every
Company Background
OUR HISTORY
Proud Beginnings
brewery produced and bottled what would eventually become one of the bestselling
beers in the region. Within the span of a generation, San Miguel Beer would become an
By 1914, San Miguel Beer was being exported from its headquarters in Manila to
Shanghai, Hong Kong and Guam. A pioneer in Asia, San Miguel established a brewery
in Hong Kong in 1948, the first local brewer in the crown colony.
Today, San Miguel Beer–the Company’s flagship product–is one of the largest selling
beers and among the top 10 beer brands in the world. While brewing beer is the
company’s heritage, San Miguel subsequently branched out into the food and
packaging businesses.
From the original cerveza that first rolled off the bottling line, San Miguel Corporation
has since expanded its portfolio to produce a wide range of popular beverage, food and
consumers’ ever changing tastes. It has also diversified into heavy industries including
The Company’s manufacturing operations extend beyond the Philippines to Hong Kong,
China, Indonesia, Vietnam, Thailand and Malaysia. Its products are exported to major
markets around the world. Continuing a tradition of product quality, San Miguel is
capitalizing on its unique strengths in brands and distribution to weave its products more
deeply into the fabric of everyday life. Not just in the Philippines but in the Asia-Pacific
region.
OUR COMPANY
an Miguel Corporation (SMC) is one of the Philippines’ largest and most diversified
conglomerates, with revenues that accounted for about 5.9% of the country’s GDP in
2018, through its highly integrated operations in food and beverages, packaging, fuel
We are one of the nation’s largest employers, with a direct workforce of 28,586
employees as of December 2018. For each job created within the San Miguel system,
many additional jobs are created through suppliers, distributors, retailers and other
business partners. At present, we have more than 100 major facilities in the Philippines,
de San Miguel, Southeast Asia's first brewery produced and bottled what would
eventually become one of the best-selling beers in the region, and among the top beer
We own San Miguel Food and Beverage, Inc., the Philippines’ leading food and
beverage company, with popular brands in the food, beer and spirits categories that are
categories.
We are a majority owner of Petron Corporation, the market leader in the fuels and oils
industry in the Philippines, and a strong player in the Malaysian downstream oil market.
Our power subsidiary, SMC Global Power Holdings Corp has a full spectrum of three
IPPA contracts and greenfield power plants. The company’s portfolio has a combined
capacity of 4,197 MW as of the end of 2018, accounting for 25% of the Luzon grid, 9%
SMC Infrastructure, our infrastructure arm handles the construction, management, and
operation of the country’s largest infrastructure network. Its current portfolio includes:
Road (STAR), South Luzon Expressway (SLEX), the Skyway System, and the NAIA
Expressway (NAIAX), Boracay Airport, the MRT-7 rail and road project, and the Bulacan
partners are world leaders in their respective businesses, including Kirin Brewery Co.,
Ltd., Nihon Yamamura Glass, US-based Hormel Foods Corporation, and Korea Water
Resources Corporation.
Organizational Chart:
Part II Product & Services
affirms its responsibility to its customers. Advancements in information technology makes it possible for the
Corporation to establish a more personal communication link with its customers. The integrated SMC Customer
Care Center provides alternative channels for easy access and fast response to varying types of customer
The Center supports SMC’s businesses in strengthening customer relations, and indirectly market share as
well. It is manned by a professional staff using superior technology and employing innovative solutions to
ensure customer satisfaction and capture product loyalty. Walk-in customers who may prefer face-to-face
The Center’s call handling services take care of both inbound and outbound calls, providing information on the
quality, pricing, distribution and availability of a product or service, while operating as a call center. It also
handles order taking, telemarketing, sales campaign, promotion of new products, and customer satisfaction
surveys. Electronic customer linkages come through e-mail, faxes and SMS (short message services).
The Center’s integrated setup makes it easy for SMC’s operating divisions to link up with it for their customer
Target Market
Market Positioning
San Miguel intends Corporation enhance market position in the Philippines by leveraging the company’s
financial resources and experience to allow it to continue to introduce new products and services. Potential
investments to develop existing businesses include building additional service and micro-filling stations,
constructing new power plants, expanding our power generation portfolio and expanding food distribution
networks. We believe our strong domestic market position provides an effective platform to develop markets for
an expanding product portfolio. And we will continue to invest in and develop businesses that have the potential
to gain leading positions in their respective markets and industries.
Market Penetration
San Miguel Brewery, Inc. also contributes 14% of sales, the largest producer of beer in
the Philippines with a market share of 93%, meanwhile Ginebra San Miguel, Inc. (GSMI
PM) its liquor business, is engaged in the manufacturing of alcoholic and non-alcoholic
beverages.
SMC Global Power Holdings Corp. sells and distributes power. The packaging business
produces glass containers, PET bottles, etc. SMC infrastructure engages in construction
and development of various infrastructure projects such as airports, roads and
highways.
Marketing Mix
The marketing mix is an important set of marketing tools and characteristics that a firm uses to
increase penetration in the target market groups
Using the marketing mix strategically includes focusing on seven important aspects of marketing and
branding for an organization, namely: product, place, price, promotion, people, process, and physical
evidence
The marketing mix helps a company choose and decide on a suitable marketing strategy
The marketing mix also helps a company in resource and budget allocation to different aspects of the
marketing strategy and product development
The marketing mix also allows a company to choose the right and effective marketing tactics for its
promotional needs
2.1. Product
Product is one of the most important components of the REINVENTING THE SAN MIGUEL CORPORATION A
Marketing mix. The distinctive characteristics of the product by REINVENTING THE SAN MIGUEL
CORPORATION A are:
2.1.1. Quality
REINVENTING THE SAN MIGUEL CORPORATION A maintains the high quality of products
High product quality is maintained by adding value during different stages of the value chain
REINVENTING THE SAN MIGUEL CORPORATION A procures raw materials from reliable and
trusted suppliers only
These raw materials are processed under carefully maintained environments to maintain high and
consistent quality of the products
High quality promise and delivery also provides REINVENTING THE SAN MIGUEL CORPORATION A
with a distinctive competitive advantage
2.1.2. Ease of use
The products manufactured and sold by REINVENTING THE SAN MIGUEL CORPORATION A are
relatively easy to use
All products come with a user manual, which is easy to understand and which provides simple
instructions for product use
The consumers can also call the 24/7 helpline to understand details about product usage
Also, retail representatives provide detailed instructions and explanations regarding the use of the
product at the time of the sale
REINVENTING THE SAN MIGUEL CORPORATION A offers functional benefits to consumers of the
product use
These functional benefits are promised and delivered – however, they are also delivered by other
similar products
The distinguishing aspect of REINVENTING THE SAN MIGUEL CORPORATION A is its delivery of
emotional benefits to the consumer
Products manufactured and sold by REINVENTING THE SAN MIGUEL CORPORATION A promise
consumers an ego boost, confidence, and security
REINVENTING THE SAN MIGUEL CORPORATION A also promises fulfilment of psychological needs
on product consumption
These psychological needs include, for example, the need for empathy, the need for belonging, and
the need of feeling loved.
The products by REINVENTING THE SAN MIGUEL CORPORATION A are available in different sizes
REINVENTING THE SAN MIGUEL CORPORATION A has made use of different SKUs to increase
market penetration
Different SKUs can be brought and used as per the consumption needs of the consumers, and the
target markets
Through the production of different SKUs, REINVENTING THE SAN MIGUEL CORPORATION A has
also increased the trial rate
Different SKUs have also helped REINVENTING THE SAN MIGUEL CORPORATION A improve its
product accessibility
2.2. Price
REINVENTING THE SAN MIGUEL CORPORATION A marketing mix focuses on a hybrid strategy for pricing
to obtain maximum value for its products. The marketing mix REINVENTING THE SAN MIGUEL
CORPORATION A uses a combination of a number of techniques for pricing its products, which are detailed
below:
2.2.1. Premium pricing
By using premium pricing for some of its product ranges, REINVENTING THE SAN MIGUEL
CORPORATION A encourages favorable brand and product perceptions in target consumer groups
Premium pricing for products also encourages a favorable quality perception of REINVENTING THE
SAN MIGUEL CORPORATION A products amongst consumers
With premium prices, REINVENTING THE SAN MIGUEL CORPORATION A has successfully also
made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a
perception g luxury in consumption products
Premium prices add a touch of privilege and high value in REINVENTING THE SAN MIGUEL
CORPORATION A products
Using elements of premium prices in other product ranges has also allowed REINVENTING THE SAN
MIGUEL CORPORATION A to maintain significantly high profits and a consistent business growth
Since REINVENTING THE SAN MIGUEL CORPORATION A has a number of different product ranges
and product groups, the use of psychological pricing has been beneficial
With the use of psychological pricing, REINVENTING THE SAN MIGUEL CORPORATION A also
successfully adds more value to its products from the point of view of customers
REINVENTING THE SAN MIGUEL CORPORATION A also gains higher sales with psychological
pricing
Consumer purchase a higher amount of REINVENTING THE SAN MIGUEL CORPORATION A
products because of its use of psychological pricing
REINVENTING THE SAN MIGUEL CORPORATION A is able to increase its target audience and
broaden its target purchaser groups
REINVENTING THE SAN MIGUEL CORPORATION A is able to penetrate different regional markets
optimally with the use of geographical pricing
For offshore locations, geographical pricing also allows REINVENTING THE SAN MIGUEL
CORPORATION A to cover shipping and customs expenses
Geographical pricing also allows REINVENTING THE SAN MIGUEL CORPORATION A to maintain
consistent revenue growth by altering pricing in different markets based on local currency value
For some product ranges, REINVENTING THE SAN MIGUEL CORPORATION A is also known to use
bundle pricing strategy popularly
REINVENTING THE SAN MIGUEL CORPORATION A also uses bundle pricing during sales
Bundle pricing increases the trial rate for consumers
REINVENTING THE SAN MIGUEL CORPORATION A experiences higher return on the cost of
gaining a new customer
With bundle pricing, REINVENTING THE SAN MIGUEL CORPORATION A is also able to control
costs and prices by lowering marketing and distribution expenses
The use of bundle pricing also adds value to the umbrella brand name of REINVENTING THE SAN
MIGUEL CORPORATION A.
2.3. Placement
REINVENTING THE SAN MIGUEL CORPORATION A places high importance on the placement of its products
because it directly relates to accessibility for consumers.
2.3.1. Company-operated stored
The company maintains stores operated by the management of REINVENTING THE SAN MIGUEL
CORPORATION A in all markets
Company-operated stores give REINVENTING THE SAN MIGUEL CORPORATION A higher control
over operations as well as store layout and design
REINVENTING THE SAN MIGUEL CORPORATION A also interacts directly with the consumers and
gathers important details regarding consumer behavior and consumer feedback through company-operated
stores
The company operated stores also give leverage to REINVENTING THE SAN MIGUEL
CORPORATION A in terms of decisions regarding the stocking of different product items
REINVENTING THE SAN MIGUEL CORPORATION A licensed stores also allow consumers to enjoy
the various product offerings by the company
Licensed stores also decrease the risk of financial and physical investment for REINVENTING THE
SAN MIGUEL CORPORATION A in unstable markets
Licensed stores have also given REINVENTING THE SAN MIGUEL CORPORATION A high business
growth, and a boost for rapid market expansion and penetration
Through licensed stores, REINVENTING THE SAN MIGUEL CORPORATION A has also learned
about local consumers and cultures
Licensed stores and shops encourage sales of products by REINVENTING THE SAN MIGUEL
CORPORATION A by aligning it with local cultural values
Licensed stores also help REINVENTING THE SAN MIGUEL CORPORATION A in localizing its
product offerings to enhance brand equity and band image
2.3.3. E-commerce
REINVENTING THE SAN MIGUEL CORPORATION A also places its products in supermarkets and
hypermarkets across the country
A large number of REINVENTING THE SAN MIGUEL CORPORATION A target groups shop from
supermarkets and hypermarkets
Placement in supermarkets and hypermarkets also improve cost efficiency for REINVENTING THE
SAN MIGUEL CORPORATION A
In offshore locations, REINVENTING THE SAN MIGUEL CORPORATION A also makes use of
partner agents for its products’ placement
These partner agents are assessed and evaluated on strategic compatibility and reliance
REINVENTING THE SAN MIGUEL CORPORATION A contracts with partner agents in other countries
and markets for its product placement to ensure quality control and terms of negotiation
2.4. Promotion
The marketing strategy for REINVENTING THE SAN MIGUEL CORPORATION A also places high importance
on the promotional tactics and strategies used. The promotional strategies allow the REINVENTING THE SAN
MIGUEL CORPORATION A to interact with the consumers and influence them directly. REINVENTING THE
SAN MIGUEL CORPORATION A uses a 360-degree approach in its promotional activities, and makes use of
the following means of promotion:
REINVENTING THE SAN MIGUEL CORPORATION A has corporate profiles on all social media
websites and portals
REINVENTING THE SAN MIGUEL CORPORATION A uses its social media presence to directly,
engage with consumers
This direct engagement and interaction allows REINVENTING THE SAN MIGUEL CORPORATION A
to understand the customers, their needs and demands
REINVENTING THE SAN MIGUEL CORPORATION A uses this feedback and incorporates it in its
broader marketing and organizational strategy
REINVENTING THE SAN MIGUEL CORPORATION A also maintains a corporate website – which
highlights company information, product information as well as information regarding any ongoing
campaigns and sales
REINVENTING THE SAN MIGUEL CORPORATION A has a loyalty card program for its customers
The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as
directed by the company
Each purchase is entered into the loyalty card by REINVENTING THE SAN MIGUEL CORPORATION
A and is valued for points against the products’ monetary value
The loyalty card can be purchased or is given complementary by REINVENTING THE SAN MIGUEL
CORPORATION A on high valued purchases
Frequent usage and purchase of products by REINVENTING THE SAN MIGUEL CORPORATION A
also has rewards against the loyalty card
REINVENTING THE SAN MIGUEL CORPORATION A makes use of community influencers as its on-
ground promotional efforts
REINVENTING THE SAN MIGUEL CORPORATION A identifies strong and confident individuals to be
brand ambassadors in their communities
REINVENTING THE SAN MIGUEL CORPORATION A provides these brand ambassadors and
community influencers with its product range and invites them to use it themselves to see benefits
The company places advertisements in consumer-related magazines. This largely includes home
decor, and home management magazines
Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
In high-density locations, REINVENTING THE SAN MIGUEL CORPORATION A also makes use of
out of house hoardings
Hoardings increase visibility for REINVENTING THE SAN MIGUEL CORPORATION A and also work
towards building stronger brand recall
REINVENTING THE SAN MIGUEL CORPORATION A also produces TV advertisements
All TV advertisements have an emotional appeal to them
TV advertisements by REINVENTING THE SAN MIGUEL CORPORATION A have progressed to
include a slice of life elements and characteristics
TV advertisements by REINVENTING THE SAN MIGUEL CORPORATION A also highlight the
functional benefits of the product
2.5. People
The marketing mix of REINVENTING THE SAN MIGUEL CORPORATION A also places an essential focus on
people development and people building. This is because REINVENTING THE SAN MIGUEL CORPORATION
A realizes the importance of employees in building strong customer relationships. REINVENTING THE SAN
MIGUEL CORPORATION A develops its employee and people by focusing on the following aspects:
2.5.1. Training
REINVENTING THE SAN MIGUEL CORPORATION A makes sure that all employees undergo regular
training sessions for skill development and enhancement
Trainings at REINVENTING THE SAN MIGUEL CORPORATION A are not the only field related, but
also focus on essential management and organizational skills
Training sessions and activities at REINVENTING THE SAN MIGUEL CORPORATION A also identify
with the employee's own needs of progression, development and growth
All training sessions and activities designed and carried out by REINVENTING THE SAN MIGUEL
CORPORATION A take into consideration business goals and objectives, as well as employee's personal
goals and aspirations
REINVENTING THE SAN MIGUEL CORPORATION A, therefore, tries to develop the employee as an
organizational member, as well as an individual
All training is engaging, and hands-on so that employees do not only learn but also experience
REINVENTING THE SAN MIGUEL CORPORATION A employees are the face of the organization
REINVENTING THE SAN MIGUEL CORPORATION A are motivated through the exciting and creative
organizational culture
Employees are also motivated through different reward programs and bonuses that REINVENTING
THE SAN MIGUEL CORPORATION A distributes
Another source of motivation is appreciation programs where management appreciates and
acknowledges the work and performance of different employees
2.5.4. Succession planning
REINVENTING THE SAN MIGUEL CORPORATION A remains one of the leading players in the
industry also because of its focus on succession planning
REINVENTING THE SAN MIGUEL CORPORATION A conducts succession planning for all
managerial levels
Succession planning is done through internal promotions as well as external recruitments to meet the
needs and demands of the vacant job position at REINVENTING THE SAN MIGUEL CORPORATION A
Strategic succession planning has allowed REINVENTING THE SAN MIGUEL CORPORATION A to
be prepared for different challenges, and also be resourceful enough to deflect them
2.6. Process
REINVENTING THE SAN MIGUEL CORPORATION A has organized and systematic processes in place to
make sure that the business experiences consistent growth.
2.6.1. Operations
All operations at REINVENTING THE SAN MIGUEL CORPORATION A are clearly defined and
communicated to the employees
REINVENTING THE SAN MIGUEL CORPORATION A makes sure that employees are well trained,
and knowledgeable of all processes relates to operations
All stages of operational processes focus on maintaining a high quality level and standard of the
products
Systematic process re in place for all operation – from procurement to the final sale of the products
All operational processes are maintained, checked, and uploaded through the internal portal of the
organization for supervisory purposes
The use of online portals for operational processes also builds a strong backup for managerial
purposes at REINVENTING THE SAN MIGUEL CORPORATION A
REINVENTING THE SAN MIGUEL CORPORATION A has also defined clear processes for people
management through streamlining its human resource management department
REINVENTING THE SAN MIGUEL CORPORATION A has defined guidelines regarding recruitment,
training, compensation management, and performance appraisal of employees
All people related processes are not only communicated to the management and supervisors, but also
to employees to create a sense of transparency, and an environment of trust
Progressive people management systems and processes have allowed REINVENTING THE SAN
MIGUEL CORPORATION A to keep its workforce motivated and happy – which reflects in satisfied
customers
REINVENTING THE SAN MIGUEL CORPORATION A also has defined policies and processes for
managing and maintaining quality
All products undergo triple quality checks to ensure that customers receive the best product
In addition to quality checks at the production and distribution level, the management has also placed
separate quality maintenance and quality check department
The quality maintenance department has experts who make sure that not only the final product but
also the processes involved in producing the product were infused with quality
2.6.4. Store management
REINVENTING THE SAN MIGUEL CORPORATION A manages store management through stringent
and closely monitored policies and processes
These processes relate to not only the floor and space design but also to the performance of the
employees at the store
The processes for store management also regularly monitor footfall and work on strategies to increase
footfall through different tactics, and changes in the store design and store management
The company also has a systematic process for customers who interact with the products and feel
them before making the purchase
The final sale at the store is also clearly defined – for the employees and the customers both
Processes and policies are important for REINVENTING THE SAN MIGUEL CORPORATION A for
maintaining quality of the products, and for ensuring that the company does not experience any
unnecessary expenses and costs
The store design and management for REINVENTING THE SAN MIGUEL CORPORATION A is
exciting and creative
The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact
with, and enjoy product offerings by REINVENTING THE SAN MIGUEL CORPORATION A at ease
The store design is also important for REINVENTING THE SAN MIGUEL CORPORATION A because
it controls the level and nature of experience and interaction that the customers have with the product and
the brand
With company-operated stores, it is easier for REINVENTING THE SAN MIGUEL CORPORATION A
to control and manage the store atmosphere to be able to positively influence customers and to be able to
appeal to them emotionally
2.7.2. Packaging
REINVENTING THE SAN MIGUEL CORPORATION A has unique packaging, which is different from
other players in the industry
REINVENTING THE SAN MIGUEL CORPORATION A also has a vibrant touché to its packaging,
which is regularly changed in terms of colors and patterns
The logo for the company is simple, and recognizable by the consumers easily
The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who
use products by REINVENTING THE SAN MIGUEL CORPORATION A
The packaging of the products is sophisticatedly done and matches the brand image developed and
maintained by REINVENTING THE SAN MIGUEL CORPORATION A
Product lines
Beer is generally the favorite among Filipinos due its affordability compared to hard
drinks. In 1998 alone, it has been reported that Filipinos have consumed about 1.25
billion liters of beer (equivalent to 3.9 billion of beer bottles). It is also the most available
being widely available at groceries and convenience stores.
San Miguel Beer (SMB) is the Filipinos favourite alcoholic drink. Being a locally
produced beer, its name has been steadily and deeply embedded in the Filipino psyche
and it has become almost a generic name for beer in the Philippines. Its target market
covers not only those from the C-D income bracket but also those in the corporate field.
In 1997, SMC had spent $15.2 million on advertising, becoming the seventh largest
advertiser in the country.
San Miguel Corporation is the country’s biggest beer company ranking number nine in
the Philippine’s Top Corporations of 1999. Their sales have totaled up to US$766
million with a total of 327.6 million bottles of beer in 1998.
Product Shapes
Product Imagery
Product Colors
Price
Product Range