Cost Position of The Company. The Unit Cost Stated For The Products of Emperador's

Scope and Limitations:
Cost position of the company. The unit cost stated for the products of Emperador’s
Brandy may not be accurate but will serve as an estimate due to the lack of information
and heavy reliance on the computation of the researchers provided that they have only
used insufficient data to arrive at such estimation of the unit cost. There is also a lack of
availability of information upon the company’s competitors on the data of their financial
statements which is why there would be an absence on the comparison of cost position
of the company. Thus, the researchers decided to use the selling price of the product
offerings to be the point of reference in the basis of determining the cost position of the
company.
Abstract:
Emperador Brandy Corporation is the first brandy label in the Philippines and World's
largest brandy by volume of sales. It provides alcoholic beverages with varying levels of
alcohol content and flavor added that targets both younger male consumers at the age
of 18 and above. With its target market that are located on suburban, urban and rural
areas, the affordable price that they offer, place of distribution on leading supermarkets,
sari-sari stores, convenient stores, hotel and motels and diverse use of platforms for
promotions about successful people that drink their products are oriented and designed
to grab the attention of the stated target market. The company has its product offering
sold in the Philippines and also in 40 countries on Asia,Middle east and Latin America.
Due to its expansion and marketing strategy, it became a leading market in the brandy
industry and subsequently, it made its market size to be very broad. As its development
expanded globally, its market share increased and there is also a maintanenance on the
reputation, operations and quality of the market
Organization’s Asset and Skills
Emperador Brandy Corporation’s unique selling proposition entails its reputation

of being an established brand that caters to its consumer’s preferences and demands
which is why its products, place of distribution, price and promotion are in accordance to
its target consumers which is why they are both deemed to be a winner and market
innovator in the industry which also may make potential consumers or leads to switch
from their old brands to consuming the products of this company. Since this company is
known to be Philippines premier brand, first brandy label in the country and World's
largest brandy by volume of sales (Emperador Brandy Incorporation, n.d.).
Their product offerings is adjusted on its alcohol content to be able to be more

palatable for its target market which is why they have lower alcohol content and blended
with other ingredients.
In terms of price, they are made to be affordable compared to other brands such
as Fundador and Alfonso which focuses on younger consumers since their
demographics are assumed to have no independent source of income and this is also
the attribute that differentiates their products compared to the luxurious and expensive
brandy that are found in the market. In relation to that, their product unit cost is
approximately about 110.39 pesos derived from their cost of sales in 2019 amounting to
33229.78 million pesos divided 301.2 million bottles sold (Conway, 2020). Comparing it
with its selling price, it can be considered to be rather high because their lowest product
offering has a suggested retail price of 107 pesos.
They also have high accessibility to the stated target market due to its
abundance on leading supermarkets, convenient store, sari-sari stores.and other
accessible shops in suburban, urban and rural areas.
Its promotion are shown on different mediums that can grab the attention of its
target consumers such as trimedia, social media, and traditional media. With the
contents of its promotions, the image that they portray on their brand opposes the
traditional impression when we think of a person who drinks alcoholic beverages which
is assumed to be an unemployed and abusive drunkard. The people featured in the
advertisements were always dressed well, wearing coats and suits. The brand depicts
the idea of a luxury drink rather than a conventional one for its products. They often
show in their advertisements that there is an association between their products and
value of success in life, ambition, hard work, and family-orientedness. It showcase that
brandy is not only for older drinkers but also for the young, vibrant and aspirational
ones.
Swot analysis:
Strengths:
- Philippines premier brand and first Weaknesses:
brandy label in the country -Health risks from excessive
Philippines consumption of product offering.
-High quality products due to delicate -Moderate demand due to market
processing saturation.
- World's -Can still improve on innovation
largest brandy by volume of sales. -Unavailability of the products to some
-Provides variety of selection of product countries such as Myanmar.
offerings
-High accessibility of the brand from the
-Effective advertising and promotional
campaign
-Price affordability
Opportunities: Threats:
-Heightening product shifters from beer to -Increasing entry of competitors
hard liquors ( alfonso, fundador etc.)
-Global amelioration on Asian market and -More newer innovated beers are
growing global distribution such as entering in the industry
Europe and Middle East and latin such as flavored beer and tanduay ice
american -Restrictions by the government such as
market limitations
-More liquor wholesaler opportunities due of supply and increasing tax
to its popularity requirements
-Health risks advocacy imposed by the
References:
Conway, P. B., & 3, J. (2020, July 03). Emperador brandy's global sales volume, 2019.
Retrieved September 8, 2020, from
https://www.statista.com/statistics/308856/emperador-brandy-global-sales-volume/
Emperador Brandy Incorporation. (n.d.). Retrieved September 8, 2020, from

https://www.emperadorbrandy.com/about-us.html
Investing.com. (2019). Emperador Inc (EMP) Income Statement. Retrieved September

8, 2020, from https://ph.investing.com/equities/emperador-inc-income-statement

Cost Position of The Company. The Unit Cost Stated For The Products of Emperador's

Uploaded by

Copyright:

Available Formats

Cost Position of The Company. The Unit Cost Stated For The Products of Emperador's

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cost Position of The Company. The Unit Cost Stated For The Products of Emperador's

Uploaded by

Copyright:

Available Formats

Scope and Limitations:

Organization’s Asset and Skills

Emperador Brandy Corporation’s unique selling proposition entails its reputation

Their product offerings is adjusted on its alcohol content to be able to be more

-Heightening product shifters from beer to -Increasing entry of competitors

hard liquors ( alfonso, fundador etc.)

growing global distribution such as entering in the industry

Emperador Brandy Incorporation. (n.d.). Retrieved September 8, 2020, from

Investing.com. (2019). Emperador Inc (EMP) Income Statement. Retrieved September

You might also like