Marketing Department – RAM Plan

DESTILERIA LIMTUACO & CO., INC

MARKETING DEPARTMENT

RISK ANALYSIS AND MANAGEMENT

(RAM) PLAN

TABLE OF CONTENTS

Page 2 RAM Plan Team

Objective

Page 3 The Marketing Process

Page 4-8 Risk Analysis and Management Plan

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Marketing Department – RAM Plan

DESTILERIA LIMTUACO & CO., INC.

MARKETING DEPARTMENT
RISK ANALYSIS AND MANAGEMENT (RAM) PLAN

RAM Team:

Mary Ann Roque, Marketing Manager

Brandon Jon Limpe-Aw, Business Development Manager
Ryan Cendaña, Marketing Analyst

Objective:

“To identify the risks that may occur in:

1. Business review
2. Preparing sales forecast
3. Approval of sales forecast
4. Preparation of marketing plan
5. Promotional materials
6. ADB processing
7. Monitoring of Monthly Sales performance

While determining the internal and external parties involved and their accompanying internal and
external issue/s; to establish effective mitigation/corrective actions to prevent occurrence of the
identified risks.”

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 Marketing Department – RAM Plan

The Marketing Process

I. Business Review

RISK/S:
Wrong classification of
account (e.g. trade
VII. Monitoring of Monthly II. PREPARING SALES
SALES PERFORMANCE channels, municipalities,
etc.) FORECAST

RISK/S: RISK/S:
1. Poor sales performance Incorrect and inaccurate
analysis of data

VI. ADB PROCESSING III. APPROVAL OF SALES

FORECAST

RISK/S: RISK/S:
Marketing Department Too high/ too low
Expenditure/commitments occur sales forecast
without adequate approval

V. PROMOTIONAL IV. PREPARATION OF

MATERIALS MARKETING PLAN

RISK/S RISK/S: Over-expenditure

1. Poor planning of Under-expense
marketing programs
2. Products not
properly distributed
or monitored

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Marketing Department – RAM Plan

I. Business Review

RISK Wrong classification of accounts (e.g., trade channels,

municipalities, etc.)
OPPORTUNITY FOR Develop a Quarterly Business Review for
IMPROVEMENT product/account monitoring
Monitoring of sales and account per region
Take advantage of the new trend
INTERESTED PARTY/IES INTERNAL
Top Management
MIS
Marketing
EXTERNAL
Sales
Distributor
ISSUE/S INTERNAL
Wrong info presented to top management
cause of inefficiency of decision making
Poor Job satisfaction from Marketing
EXTERNAL
Sales wrong strategies/action plans
Inefficiency of decision making
Poor job satisfaction from other departments like sales
towards Marketing
CRITICAL CONTROL POINTS INTERNAL
Marketing and MIS Account classification based on the
standard procedures
EXTERNAL
Review by Sales of the data evaluated by marketing
LIKELIHOOD OF OCCURRENCE Moderate
CRITICAL LIMITS/STANDARDS Accounts database is updated and correct
MITIGATION/ CORRECTIVE Notify concerned departments (MIS and Sales
ACTION department) for outright correction of classification of
accounts
VERIFICATION AND Approved standard trade channel classification (e.g.,
MONITORING supermarket, retail chain, supermarket A, B, etc.) based
on the classification given by the management
RESPONSIBILITY MIS
Sales
Marketing

II. Preparing Sales Forecast

RISK Incorrect and inaccurate analysis of data

OPPORTUNITY FOR Increase the number of accounts per area

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Marketing Department – RAM Plan

IMPROVEMENT Support the sales team by increasing distribution and

account per channel
Enter new market
INTERESTED PARTY/IES INTERNAL
All Departments
EXTERNAL
Sales
Distributor
ISSUE/S INTERNAL
Too high or too low sales forecast
A lack of skilled personnel can affect the quality of sales
forecasts
Technical issues or outdated tools may hinder the forecast
process.
EXTERNAL
Poor Sales performance
Technical issues or outdated tools may hinder the forecast
process (Accounts Portal).
CRITICAL CONTROL POINTS Analysis of Data
Monitoring of sales performance
LIKELIHOOD OF OCCURRENCE Moderate
CRITICAL LIMITS/STANDARDS Data used as basis for sales forecast is accurate
MITIGATION/ CORRECTIVE Check the market share
ACTION Monitor the annual sales performance for the past 5 years
Monitor Monthly sales report
Implement data validation and cleaning of non-existing
accounts.
Training people on how to do a sales forecast.
VERIFICATION AND RM-DLCI-03-12 Sales Forecasting/Target Setting
MONITORING
RESPONSIBILITY Marketing Manager
Business Development Manager
Marketing Analyst

III. Approval of Sales Forecast

RISK Too high/ too low sales forecast

OPPORTUNITY FOR Growing demand
IMPROVEMENT Increasing of Market Share
Market Demand
INTERESTED PARTY/IES INTERNAL
Production
HR
Warehouse
Purchasing
Laboratory
EXTERNAL
Distributor
ISSUE/S INTERNAL
Overproduction
Excess manpower
Overage/shortage of finished goods inventory

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Marketing Department – RAM Plan

Over/under ordering of materials and ingredients

EXTERNAL
Sales performance affected
CRITICAL CONTROL POINTS Setting of sales targets/forecast
Monitoring of sales performance
LIKELIHOOD OF OCCURRENCE Moderate
CRITICAL LIMITS/STANDARDS Sales targets/forecast is based on brand growth
MITIGATION/CORRECTIVE Adjust the national sales forecast based on the annual
ACTION brand growth. Closely monitor monthly sales
performance per product
VERIFICATION AND Sales forecast, PM for business review, Quality Objective
MONITORING
RESPONSIBILITY Marketing Manager
Business Development Manager
Marketing Analyst

IV. Preparation of Marketing Plan

RISK Over-expenditure
Under-expense
OPPORTUNITY FOR Increase advertising investment and in-store visibility
IMPROVEMENT
INTERESTED PARTY/IES INTERNAL
Purchasing
Warehouse
Production
Accounting
HR
EXTERNAL
N/A
ISSUE/S INTERNAL
Wrong planning for the product
ORDERS (Over or shortages)
Stocks positioning
Planning
Expenses
Manpower
EXTERNAL
Cost to sales and marketing support
CRITICAL CONTROL POINTS Marketing budget allotment
LIKELIHOOD OF OCCURRENCE Unlikely
CRITICAL LIMITS/STANDARDS Cost to Sales is not more than 10%
MITIGATION/CORRECTIVE Set standards for acceptable budget deviation range
ACTION Closely monitor marketing expenditures
Adjust the marketing budget with supporting documents
Check the sales expenditure based on the previous
national sales performance or actual sales performance
per outlet.
VERIFICATION AND PM-DLCI-03-25 Procedure on Business
MONITORING Review/Preparation and Cascading of Annual Sales
Forecast
RESPONSIBILITY Marketing Manager

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Marketing Department – RAM Plan

Business Development Manager

Brand Assistant
Marketing Assistant

V. Promotional Materials

RISK Poor planning of marketing programs and marketing

campaigns

OPPORTUNITY FOR Develop a plan for the big and small outlet
IMPROVEMENT In-store sampling program
Develop in-store merchandising program
INTERESTED PARTY/IES INTERNAL
Creatives
Purchasing
MIS
Production
Warehouse
Marketing
EXTERNAL
Sales
Distributor
ISSUE/S INTERNAL
Late submission of marketing programs
Delays on calendar of activities
Late submission of artwork
Late request of promotional items
Late input in the system
Late submission of production job order and overhead
expense because of additional manpower and no planning
Stock positioning
Employee turnover is the loss of a team member or
salesperson.
Execution of Marketing Plan
EXTERNAL
Rapid changes in market trends may affect the relevance
of our marketing programs or campaigns.
Economic situation that may affect consumer spending.
Delay of marketing programs
Decreased sales
CRITICAL CONTROL POINTS Creation of marketing plan
LIKELIHOOD OF OCCURRENCE Unlikely to frequently
CRITICAL LIMITS/STANDARDS Lead time for different departments involved (Creatives,
Purchasing, Production) are observed
Calendar of activities, advance copy of Marketing Plan is
furnished to copyholders
Advanced copy of the Marketing plan.
MITIGATION/CORRECTIVE Provide approved copy of marketing plan to respective
ACTION departments, Creatives, Purchasing, warehouse, MIS, HR
and Production
Provide approved copy of marketing plan
Conduct regular competitive analysis to know what’s
happening in the market. (Price survey)

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Marketing Department – RAM Plan

Develop a contingency plan to adapt campaigns to the

current situation.
VERIFICATION AND RM-DLCI-03-10 Conceptualization of Promotional
MONITORING Materials, WI-DLCI-02-01 Preparation of Purchase
Requisition, DLCI-PR-18 Production Job Order, WI-
DLCI-030-60 Preparation of Marketing Bulletin
Ensure open communication channels for team member,
mostly salespeople, to report any issues that might cause
poor sales and distribution.
RESPONSIBILITY Marketing Manager
Business Development Manager
Marketing Assistant

RISK Products not properly distributed or monitored

OPPORTUNITY FOR Product should be in the market
IMPROVEMENT
INTERESTED PARTY/IES INTERNAL
Marketing

EXTERNAL
Sales
Merchandising
ISSUE/S INTERNAL
Product is out of stock
No proper inventory
No stock movement
Wrong input of price (too high/low) and/or not properly
displayed
EXTERNAL
Sales decreases
No product movement
Product not properly displayed
Over stock
No monitoring of inventory
CRITICAL CONTROL POINTS Merchandising
Frequency of account servicing
Frequency of order
Basic call procedure
Post activity report
LIKELIHOOD OF OCCURRENCE Moderate
CRITICAL LIMITS/STANDARDS Marketing trade is audited
Account’s stocks and/or product movement is regularly
monitored
MITIGATION/CORRECTIVE Notify Sales Department to check the itineraries of
ACTION concerned merchandiser.
VERIFICATION AND
Trade Audit
MONITORING
RESPONSIBILITY Sales
Merchandising
Marketing

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Marketing Department – RAM Plan

VI. ADB Processing

RISK Expenditure /commitments occur without adequate

approval
OPPORTUNITY FOR Electronic ADB
IMPROVEMENT
INTERESTED PARTY/IES INTERNAL
Marketing
Accounting
EXTERNAL
Sales
Distributor
ISSUE/S INTERNAL
Over-expenditure
Late submission of ADB form
EXTERNAL
Unauthorized deduction
CRITICAL CONTROL POINT/S Approval of ADB Form
LIKELIHOOD OF OCCURRENCE Unlikely
CRITICAL LIMITS/STANDARDS ADBs approved
MITIGATION/CORRECTIVE (Provide approved copy of ADBs to respective
ACTION departments like sales. Credit and collection and
accounting department.)
If the ADB request meets the marketing requirements and
have sufficient data of the brand for analysis, the
Marketing Department shall forward the ADB to the
officers of DLCI authorized to approve such trade /
marketing support
Sales Department shall submit the ADBs to marketing
department for approval with complete details and
attachment.
VERIFICATION AND DLCI-MK-01 ADB Form, WI-DLCI-03-57 Evaluation of
MONITORING ADB
RESPONSIBILITY Marketing Manager
Business Development Manager
Marketing Assistant

VII. MONITORING OF MONTHLY SALES PERFORMACE

RISK Poor sales performance

OPPORTUNITY FOR Introduce new product & services which expand the
IMPROVEMENT market share by increasing the marketing activities and
customer service.
INTERESTED PARTY/IES INTERNAL
All Departments
EXTERNAL
Sales
Distributor
ISSUE/S INTERNAL
Poor sales performance as a result of government
ordinances like liquor bans
Employee turnover - loss of team member or sales people.

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Marketing Department – RAM Plan

EXTERNAL
government ordinances (liquor bans), poor sales
performance, distributor’s performance and competitor’s
marketing activities
Increased competition could lead to a loss of sales and
market share.
New regulatory changes that may impact our sales.
CRITICAL CONTROL POINT/S Sales performance evaluation
LIKELIHOOD OF OCCURRENCE Frequent
CRITICAL LIMITS/STANDARDS Sales forecast and performance should not be lower than
75% based on the approved Annual Sales Target.
MITIGATION/CORRECTIVE Request for amendment of Sales Target PM-DLCI-03-37
ACTION (Monitoring of Monthly Sales Performance)
Stay informed about relevant regulations and update
compliance procedures.
VERIFICATION AND PM-DLCI-03-25 (Business Review /Preparation and
MONITORING Cascading of annual sales target)
PM-DLCI-03-37 (Monitoring of Monthly Sales
Performance)
Ensure open communication channels for team member,
mostly salespeople to report any issues that might cause
poor sales and distribution.
RESPONSIBILITY Marketing Manager
Business Development Manager
Marketing Analyst

Legend for Likelihood of Occurrence:

LIKELIHOOD
OF DESCRIPTION
OCCURRENCE
Frequent Almost certain to occur. Has occurred more than once within the last 12
months. Condition to exist for it to occur.
Probable Very likely to occur. Has occurred once within the last 12 months. Conditions
often exist for it to occur.
Occasional Likely to occur if the condition exists. Has occurred within the last 24 months.
Conditions sometimes exist for it to occur.
Moderate May occur if conditions exist. Has occurred within the last 36 months.
Conditions sometimes exist for it to occur.
Unlikely Unlikely to occur. Has not occurred within last 5 years. Conditions rarely exist
for it to occur.

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Marketing Department – RAM Plan

RAM:

See Quality Plan (QM-DLCI-02-05). RAM Plan is integrated in the Quality Plan.

Verification Procedures:

Sales & Target Performance

Internal Audit
Management Review Meeting
Review of the RAM Plan whenever changes occur

Prepared by the RAM Plan Team:

Mary Ann Roque Brandon Jon Limpe-Aw Ryan Cendaña

Marketing Manager Business Development Marketing Analyst
Manager

Approved by:

Mrs. Olivia Limpe-Aw

President

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