Confidential

Thesis, Graduate (Master in Management)--University of the Philippines Mindanao, December 2010.

In 2004, as part of the company's direction to expand its international presence, Monde Nissin Corporation invested in Thailand. Seeing the potential of the consumer market in the food industry, investments were made in manufacturing facilities specifically for the biscuits category, which became the nucleus of Monde Nissin (Thailand) Company Limited, a duly registered manufacturing and distribution company in Thailand. It has been in business in Thailand for five years now and operates as an autonomous profit center separate from its parent company in the Philippines. Monde Nissin Thailand is highly challenged with established competition and different dynamics in trade and channel management. Selling only a total number of 12 products, its market share is still at 5% in the biscuits category and insignificant in the chocolates category. The company's annual revenues have been growing at the average of 45% for the last five years since its start of operations. However, it has yet to generate profits since then. Monde Nissin Thailand's primodial concern is how to survive in Thailand?s competitive market. Beset with organizational communication and cultural alignment barriers amongst leaders and staff, Monde Thailand is relatively weak with no deeply entrenched strategic perspectives to seize trends in an industry of huge potential and opportunities. Hence, it has to come up first with a comprehensive long range plan that can act as its roadmap towards survival. This strategic plan is anchored on an ambitious vision of becoming Number 1 in Thailand. Given such, the company will be focused on attaining the following long-term objectives: 1. Optimizing the investments made, 2. Driving corporate revenues, and, 3. Operating efficiently to achieve double digit net profits. The following are the three proposed strategies to accomplish these: Product Development through the launch of new products and repricing strategy. Another area that can be explored will be through Cost Focus Advantage by developing "Me Too" product types and formats. The main task is to introduce new products that can beef up market shares or products that can improve profit margins. Reseller Realignment Strategy. The main task is to design distribution models that are most relevant to Thai market and to set up a support structure that would respond to these changes. Market Penetration through Sales Stimulation Strategy (increase consumer usage and trial) and by distribution productivity through local Thai distributors. The main task it to intensify market penetration either in the form of promotions or appropriate distribution models and schemes. The attainment of the long-term objectives of the company through the proper implementation, monitoring and control of the three strategies are realized. Coupled with the right mindset, plan and systems, there are greater opportunities to be seized in the foreseeable future. This will not only address the present market challenges but will bring the company to its maximum potential of being Number 1 in Thailand.