Professional Documents
Culture Documents
MARKETING
ASPECT
MARKETING
MARKETING ASPECT
A Marketing aspect determines the suitability of property for profitable development of a business and define
optimal products and amenities in accordance with projected market demand.
I.
Mandaluyong City, Metro Manila. It has an area of 1,400 sq. meters. The designated location is chosen because it
is wide and suitable for a manufacturing plant and warehousing. It is also accessible in main commercial districts.
The city lies in the heart of Metro Manila and is the 18 th largest metropolitan area in the world. The city is said to be
fast progressing due to urbanization and modernization.
MARKETING, Figure 1, Third Power Manufacturing and Distribution Inc. Location Site
MARKETING
II.
Product
PRODUCT PROPERTIES
Appearance
-
Health Nutrients
Packaging
Taste
Cost
- 2 Cocubes is pack
-Cocube is a
-Cocube is
especially chosen
in a pouch made
affordable despite
because of their
with cellophane.
of the complete
nutrient components
consumers cravings
supplements that it
cocubes weigh 25
cacao ingredient.
consumers to assure
contains 48 pouch of
cocubes.
oatmeal.
consumers need.
MARKETING
III.
Industrial Analysis
INDUSTRY OVERVIEW
The Philippine tablea is defined as roasted, ground and molded nibs of fermented pure (100%)
cacao beans without added ingredients and additives. It is also a cocoa mass and cocoa liquor made from cacao
beans that are fermented, dried, roasted, ground then molded into blocks, balls, discs, or tablets.
It is traditionally used in the Philippines to make a hot chocolate beverage using a wooden mixing
implement or stirrer. The Cacao Industry Development Association of Mindanao estimated that around 2,000 tons
of cacao beans is processed to tablea.
The industry is composed mostly of smallholder farmers who supply dry cacao beans to the
processors/manufacturers. Manufacturers are mostly small to medium scale enterprises. Some of the larger players
are also into cocoa powder and cocoa butter.
The country exports and imports cocoa and cocoa products which includes chocolate
confectionery containing cocoa in various forms and sizes, other food preparations containing cocoa in various
forms and sizes, other than chocolate confectionery containing cocoa in various forms and sizes, and other than
chocolate confectionery containing cocoa in tablets or pastilles. The market opportunities for tablea and cocoa
products is growing, as there is an increasing number of cafes and restaurants offering chocolate drinks. Moreover,
the trend towards wellness and a healthy lifestyle is seen as another opportunity for cocoa, as it is being positioned
and marketed as a health food given its natural contents and health benefits. It is projected that by 2020, there is
an additional one million tons of cacao needed to meet global demand, while an additional 30,000 tons are
needed to meet local demand. As such, cacao growers and cocoa manufacturers in the country are wellpositioned to translate these market opportunities into a profitable reality.
The proponents thought of a new idea in transforming the cocoa tableau into a shape that people
will get fond of. In Korea, sugars are formed into different shapes but they mostly preferred a 3 dimensional shape
which is a cube. So the proponents found out that it was a unique idea to use in producing a chocolate drink in a
different form from the taste of the Filipino people they crave for but with a twist, since sugar and other powdered
beverages are easy to solute in water that ran through the right process.
IV.
ultimately the product itself. A well-defined target market is the first element to a marketing strategy.
The TPMDI plant and warehouse site is located in Namayan, Mandaluyong City of 1,400 sq. meters.
The households located along with the commercial districts of the 25 km radius from Mandaluyong and itself are
the target market. It will serve as the basis for the needed respondents. Locations that belong to the 25 km radius
from our plant location are NCR, Bulacan, Cavite, Laguna and Rizal. The data are gathered from the survey
conducted by the proponents.
MARKETING
TPMDI target market concentrate on a particular bracket specification of potential customers. It is produced for
both male and female aging 12 years old up to 65 years old. The products will be distributed in supermarket and
public market of selected municipalities of Laguna, Cavite, Rizal and Bulacan along with NCR.
V.
Market Segmentation
Market segmentation is the breakdown of a large market portion into segments that identifies the needs, wants
and demand characteristics of the market. It aims to identify and design a market trend that will be present and
meet the expectations of the consumers to satisfy their cravings of a desirable.
Factors/ Variables
Variables Breakdown
Location of the
Target Market
culture, economy,
Geographic
Region
Segmentation
education and
government of the
Philippines and it is the
most populous region of
the Philippines
Population
Density
of
maximum numbers of
households
MARKETING
Laguna: 2, 669, 847
Rizal: 2,298, 691
Capable of drinking
chocolate that wont
Demographic
Age
12 to 65 years old
Segmentation
Gender
Usage
Rate
Non- seasonal
Behavioral
Segmentation
rate is high
The product is usually
Usage
Common
Status
consumed by end-users
mostly every day.
MARKETING, Table 2: Segmentation Variables and Breakdowns for the customers of the Cocube Chocolate Drink
VI.
Customer Analysis
CUSTOMER ANALYSIS
A customer analysis is the process of collecting and evaluating of data from a customer behavior
which helps in making key business decisions. It is a critical section of a companys business or marketing plan. It
defines the target consumers, their needs and how the product can satisfies these consumers.
MARKETING
NO, 9%,
9%
YES,
91%,
91%
MARKETING, Diagram 1: Percentage of the Willingness of the respondents to buy the product.
Others, 5%, 5%
36-45 php,
38%, 38%
16-25 php,
20%, 19%
26-35 php,
23%, 23%
MARKETING, Diagram 2: Percentage of How much the respondents are willing to spend to buy the product.
VII.
Competitor Analysis
Competitor analysis in marketing and strategic management is an assessment of the strengths and
weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic
context to identify opportunities and threats. Profiling coalesces all of the relevant sources of competitor analysis
into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and
adjustment.
Competitor analysis is an essential component of corporate strategy. It is argued that most firms do
not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called
informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every
manager continually receives. As a result, traditional environmental scanning places many firms at risk of
dangerous competitive blind spots due to a lack of robust competitor analysis.
MARKETING
culinary, ice cream, chilled dairy products, breakfast cereals, confectionery products, infant nutrition products, pet
care products, and healthcare nutrition products. The company was formerly known as Filipro, Inc. and changed
its name to Nestl Philippines, Inc. in 1986. The company is based in Makati City, the Philippines. Nestl Philippines,
Inc. operates as a subsidiary of Nestl S.A.
MARKETING
which were merged on September 30, 1968. Filipinas Biscuit Corporation Philippine Food Industries
Commonwealth Foods, Inc.
The Cofi Division (Roasted and Instant Coffee products) Organized in January 21, 1951 and commenced
production of roasted ground coffee in 1952 in its own plant in Makati, Rizal. Put up the first instant and soluble
coffee manufacturing plant in the country and in Asia in 1956. Organized in January 21, 1951 and commenced
production of roasted ground coffee in 1952 in its own plant in Makati, Rizal. Put up the first instant and soluble
coffee manufacturing plant in the country and in Asia in 1956.
The Philfood Division (Cocoa and Chocolate products) Began operations in October 1956. First entity
in the Philippines to venture into cocoa and chocolate processing from its plant located at EDSA, Mandaluyong
City Umbrella brand name RICOA Exporting Cocoa butter since 1956 to major users in US and Europe. Began
operations in October 1956. First entity in the Philippines to venture into cocoa and chocolate processing from its
plant located at EDSA, Mandaluyong City Umbrella brand name RICOA Exporting Cocoa butter since 1956 to
major users in US and Europe.
The Fibisco Division (Biscuit products) Organized in January 23, 1959
and commenced production in 1960. Popularly known for its English Quality Biscuits Most of the items are
household names for both young and old. Organized in January 23, 1959 and commenced production in 1960.
Popularly known for its English Quality Biscuits Most of the items are household names for both young and old.
MARKETING
VIII.
Market Share
A percentage of total sales volume in a market captured by a brand, product, or company. Market
share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over
the same period. This metric is used to give a general idea of the size of a company to its market and its competitors.
10
MARKETING
Market Share
Chuckie
26%
Milo
15%
Ovaltine
7%
Ricoa
30%
7%
Energen
15%
Cocube
Chuckie
29.75%
Milo
14.87%
Ovaltine
7.44%
Ricoa
7.44%
Energen
14.87%
Cocube
25.63%
Demand Analysis
Demand analysis define and identify whos going to patronize the product, how many they might buy
and how much theyre willing to spend for purchasing it and as well as the other factors in considering when acquiring
the product.
Demand is an economic principle that describes a consumers desire and willingness to pay a price for
a specific good or service.
The demand to be considered to this study is the total numbers of population inside National Capital
Region, some part of Region 3 and 4-A. In order to determine the total demand of Cocube, survey was conducted to
the residents in the target market. The total number of respondent was calculated using the Slovens formula.
11
MARKETING
Year
2014
Respondent (n)
400
4, 299, 863
Marginal Error
5%
91%
86%
Yi-1
Yc
Y-Yc
(Y-Yc)2
2011
13,690,327.56
2012
14,413,175.96
722,848.00
13,690,327.56
14,413,175.56
0.40
0.16
2013
15,136,024.36
722,848.00
14,413,175.56
15,136,023.56
0.80
0.64
2014
15,858,872.26
722,848.00
15,136,023.56
15,858,871.56
0.70
0.49
2015
16,581,721.16
722,848.00
15,858,871.56
16,581,719.56
1.60
2.56
X2
XY
Yc
Y-Yc
(Y-Yc)2
2011
13,690,327.56
13,690,327.56
12,967,479.21
722,848.35
13,690,327.56
0.00
2012
14,413,175.96
28,826,351.92
12,967,479.21
722,848.35
14,413,175.91
0.05
0.0025
2013
15,136,024.36
45,408,073.08
12,967,479.21
722,848.35
15,136,024.26
0.10
0.01
2014
15,858,872.26
16
63,435,489.04
12,967,479.21
722,848.35
15,858,872.61
-0.35
0.1225
2015
16,581,721.16
25
82,908,605.80
12,967,479.21
722,848.35
16,581,720.96
0.20
0.04
total
75,680,121.30
15
55
234,268,847.40
0.175
12
MARKETING
X.
SUPPLY ANALYSIS
Supply Analysis is a detailed review of the inputs and outputs of a process that is employed to assess
how the available quantity of a product is affected by changes in demand, input factors and production
techniques. Supply analysis is often used to make key policy decisions by manufacturing business managers
since it gives them insight into how shifts in production are likely to influence market supply.
Supply is the amount of a product or service that producers and firms are willing to sell at a given price all
other factors being held constant.
Historical Supply
Historical supply is computed using two methods. The arithmetic straight line and statistical straight line.
The proponents used the two methods to identify the lowest standard deviation in order to compute the market
share.
1. Arithmetic Straight Line Method
HISTORICAL VALUES
YEAR
Yi-1
Yc
Y-Yc
(Y-Yc)2
2011
10,198,573.17
2012
10,513,992.96
330,356.71
10,198,573.17
10,528,929.88
-14,936.92
223,111,495.44
2013
10,839,168.00
330,356.71
10,528,929.88
10,859,286.59
-20,118.59
404,757,663.59
2014
11,174,400.00
330,356.71
10,859,286.58
11,189,643.29
-15,243.29
232,357,890.02
2015
11,520,000.00
330,356.71
11,189,643.28
11,519,999.99
0.01
0.00
X2
XY
Yc
Y-Yc
(Y-Yc)2
2011
10,198,573.17
10,198,573.17
9,858,248.62
330,326.07
10,188,574.69
9,998.48
99,969,626.31
2012
10,513,992.96
21,027,985.92
9,858,248.62
330,326.07
10,518,900.76
-4,907.80
24,086,500.84
2013
10,839,168.00
32,517,504.00
9,858,248.62
330,326.07
10,849,226.83
-10,058.83
101,180,060.97
2014
11,174,400.00
16
44,697,600.00
9,858,248.62
330,326.07
11,179,552.90
-5,152.90
26,552,378.41
2015
11,520,000.00
25
57,600,000.00
9,858,248.62
330,326.07
11,509,878.97
10,121.03
102,435,248.26
54,246,134.13
15
55
166,041,663.09
354,223,814.79
XI.
FORECASTING
A. Forecasting Demand
Forecasting is the use ofhistoric data to determine the direction of future trends. Forecasting is used by
companies to determine how to allocate their budgets for an upcoming period of time. This is typically based
13
MARKETING
on demand for the goods and services it offers, compared to the cost of producing them. Forecasting also
provides an important benchmark for firms which have a long-term perspective of operations.
In order to get the forecasted demand, 2 methods were used. These are Arithmetic Straight Line Method
and Statistical Straight Line Method. The proponents used this two methods in order to get the market share by
getting the lowest standard deviation.
Yc= a+ Yi- 1
To find a:
a=
B.
Yc= a+ bx +c
To find a & b:
a= x b
And
b= ()
()
NOTE : The method which yields the least standard deviation is likely to come up
with the best estimates.
14
MARKETING
1. Forecasting Demand Using Arithmetic Straight Line Method
PROJECTED VALUES
Year
Yi-1
Yc
2016
722,848.00
16,581,719.56
17,304,567.56
2017
722,848.00
17,304,567.56
18,027,415.56
2018
722,848.00
18,027,415.56
18,750,263.56
2019
722,848.00
18,750,263.56
19,473,111.56
2020
722,848.00
19,473,111.56
20,195,959.56
MARKETING, Table 11, Historical Demand using Arithmetic Straight Line Method
2. Forecasting Demand Using Statistical Straight Line Method
PROJECTED VALUES
Year
Yc
2016
12,967,479.21
722,848.35
17,304,569.31
2017
12,967,479.21
722,848.35
18,027,417.66
2018
12,967,479.21
722,848.35
18,750,266.01
2019
12,967,479.21
722,848.35
19,473,114.36
2020
12,967,479.21
722,848.35
10
20,195,962.71
A. Forecasting Supply
1. Forecasting Supply Using Arithmetic Straight Line Method
PROJECTED VALUES
YEAR
Yi-1
Yc
2016
330,356.71
11,519,999.99
11,850,356.70
2017
330,356.71
11,850,356.70
12,180,713.41
2018
330,356.71
12,180,713.41
12,511,070.12
2019
330,356.71
12,511,070.12
12,841,426.83
2020
330,356.71
12,841,426.83
13,171,783.54
Yc
2016
9,858,248.62
330,326.07
11,840,205.04
2017
9,858,248.62
330,326.07
12,170,531.11
15
MARKETING
2018
9,858,248.62
330,326.07
12,500,857.18
2019
9,858,248.62
2020
9,858,248.62
330,326.07
12,831,183.25
330,326.07
10
13,161,509.32
XII.
the amount that people want to buy especially when this controls prices. The table below shows the demand and
supply readings as well as the gap analysis.
Demand
Supply
Gap
Production Capacity
Market Share
17,304,569.31
11,840,205.04
5,464,364.27
3,970,560.00
0.2511
18,027,417.66
12,170,531.11
5,856,886.55
4,049,971.20
0.2497
18,750,266.01
12,500,857.18
6,249,408.83
4,288,204.80
0.2554
19,473,114.36
12,831,183.25
6,641,931.11
4,526,438.40
0.2608
20,195,962.71
13,161,509.32
7,034,453.39
4,764,672.00
0.2658
XIII.
MARKETING STRATEGY
A marketing strategy defines the product and the market itself. It is a fundamental process of increasing
sales and achieving a sustainable competitive advantage beyond its competitors. It also defines how the organization
will successfully engaged customers, prospects and competitors in the market arena. A marketing strategy is the
foundation of a marketing plan. A marketing plan is a specified actions required to successfully implement a marketing
plan.
Third Power Manufacturing and Distribution Inc. sell its product at a very affordable price so that end
users can afford and enjoy the product.
16
MARKETING
17
MARKETING
B. Sales Strategy
To achieve in inviting the costumers from buying the product a well-planned sales strategy is one of the
significant factors in reaching the desired results. Planning and creating an effective sales strategy requires looking at
long-term sales goals and analyzing the business sales cycle, as well as meeting with sales people about their personal
career goals. Successful strategies help the sales force focus on target market customers and communicate with them
in relevant, meaningful ways. A successful sales strategy conveys this so that the sales force spends time targeting the
correct customers at the right time.
TPMDI sell its product through online purchasing in order for the consumers or clients to achieve an easy way of
buying a product without wasting time and expenses from traveling or visiting the location especially when they are
far from the vicinity where the plant is located. TPMDI also sell its product at a very affordable price compare to the
other local brands. Its not because it is made locally in the Philippines with local raw material distributors but right
consumers deserve it.
B. Pricing Strategy
Pricing strategy is an activity aimed at finding the products optimum price, typically including overall marketing
objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends.
Supplier
BUDs Tableya
Shantou Yangyu Foodstuff Co., Ltd
Victoria Washed Sugar
AMALAC Skimmed Milk
# of kg
30
50
20
25
Cost
P6000
P1950
P1350
P4200
P13500
Cost/ kg
0.2
0.039
0.0675
0.168
FP/g
3.75
1.5
1.25
2.25
Total Cost
0.75
0.06
0.08
0.38
P13,500
1 Finished Product
1 Finished Product
1 Pack
12. 5g
P1.27
25g
1 Pack of Cocubes
P2.54
C. PACKAGING COST
1 BOX
1 BOX
COST/BOX
1 BATCH
0.94php/ pack
0.4167php/pack
1.3567php/pack
18
MARKETING
D.
Mark Up:
.
.
.
SRP = 6.4945php/pack
XIV.
Channel of Distribution
Distribution channel is composed of chains of business operations starting from the product
manufacturer until it reaches the consumers. It shows the interconnection of the business starting from its main
producer to how the product was ordered and sold, how it is distributed to the wholesalers and bought by retailers
and how it reaches the end users of the product.
MARKETING, Figure 3, Distribution channel of Third Power Manufacturing and Distribution Inc.
19