A strategic management paper for Tanduay Distillers, Inc. / Jeffrey P. Famatiga

Thesis (M.A)--Pamantasan ng Lungsod ng Maynila, 2023.

A strategic management paper presented to the Faculty of the PLM Business School - Graduate Program in partial fulfillment of the requirements for the degree of Master in Business Administration.

Tanduay Distillers, Inc. manufactures alcoholic beverages. The company distills rum, whisky, gin, and vodka, as well as flavored drinks. TDI distributes their products internationally and locally (Bloomberg, 2023). LT Group, Inc. (LTG) owns 100% of Tanduay Distillers, Inc. (TDI), making it a fully owned subsidiary of LTG. TDI owns a majority stake in the following companies: Tanduay Brands International, Inc. (TBI) handles the marketing of TDI's products. Asian Alcohol Corporation (AAC) engages in the production of refined and/or denatured alcohol and fodder yeast. Absolut Distillers, Inc. (ADI) manufactures, distills, imports, exports, buys, and sells chemicals, including bioethanol, alcohol, biogas, molasses, and biomass for renewable energy.
TDI ranked second on the list with a market share of 28.7% of the Philippine alcoholic market. GSMI has the highest percentage at 38.7%, while EDI ranks third with a 27% market share (Nielsen Philippines, 2022, Yahoo Finance, 2022).
TDI was named the "World's 1 Rum" for (5) consecutive years and the "Brand of the Year" for (7) consecutive years. It has received more than a hundred international awards. TDI is the first Philippine company to concurrently sponsor five National Basketball Association (NBA) teams. The Phoenix Suns, the Golden State Warriors, the Brooklyn Nets (ABS-CBN News, 2021), the Milwaukee Bucks (ESPN, 2021), and the Minnesota Timberwolves (NBA Media Ventures, 2021).
Tanduay Distillers, Inc. is one of the three biggest players in the Philippines' liquor industry. Ginebra San Miguel, Inc., and Emperador Distillers, Inc. are competitors in the same market (Nielsen Philippines, 2022; San Miguel Corporation, 2021) with respect to their strategic position, which highlights the organization's strengths and weaknesses (David, 2011). TDI identified crucial success factors for the organization. These include product portfolio, price competitiveness, brand quality recognition, marketing and advertising, financial position, geographical reach, corporate sustainability, and technology innovation. TDI determined the intensive strategies based on the several matrices that were used, which included market penetration, product development, and market development.
TDI determined that market penetration would be the most effective strategy This is supported by the primary objective of increasing TDI's Luzon market share by an additional 30% in revenue by 2025. Its financial objective is to attain 32.71 billion pesos in total revenue by 2025, or 10% annually, an increase from 22.34 billion pesos in 2021.