MARKETING PLAN

The Marketing Plan is the lifeblood of virtually every business plan. While
profitability is generally the focal points of a business plan , the question of demand
is the most basic issue. Obviously, there can be no discussion of profitability or of
the other aspects of the business plan if there is no demand, It is therefore
imperative that the marketing plan be given the first considerations.
A. Products/Service to Sell
Name of the product/service popular and scientific (if any) and the
reason for choosing it.
Properties of the product/service physical, chemical, and/or
agronomic

B. Target Market

1. Area Coverage geographical areas of dispersion where the

product is mostly found
2. Consumer/Customer - determines whether there are enough
customers in the market to make your business profitable.
Age range, Income range, Gender, Location, Average /
frequency of purchase, What need does your product fulfill? ,
who influences their purchasing decision?

C. Demand and Supply Analysis

1. Demand for the product must be determined in the following

manner:
a. Who and where is the market?
b. What is the total domestic demand from the historical
point of view?
c. Evaluate demand growth patterns in the past by
applying
appropriate projection methods.
2. Supply situation maybe determined as follows:
a. Who and where are the direct competitors?
b. Determine historical domestic supply as comprised by
local production and importations
c. Evaluate supply growth patterns and project supply by
applying appropriate projection methods.

3. Demand and Supply Analysis

a. Compare the demand and supply trends.
 b. Determine the amount of demand unsatisfied especially in
the projections
c. Determine the share of the market by establishing the
proposed projection volume as against the total market size

D. Projected Sales

1. Per Month/Year
2. In Volume and In Pesos

E. Marketing Program

1. Practices of Competitors - determine the types of marketing

program prevalent in the industry and gauge their respective
effectiveness.
2. Marketing Program/Strategies - draw up a marketing plan that
identifies and defines the target market, the selling price, the
packaging of the product, the distribution network, the sales
management mechanism, and the advertising and promotions
program.

F. Marketing Expenses

Example Illustration for Demand and Supply Analysis

Historical Demand

Using table format, present the 5 year historical demand. This will depend on your
potential customer, i.e if your target customers are the residents of Cavite, historical
demand would be the population of Cavite in the last five years based on the data
provided by NSO, so the source of your data for historical demand should be indicated.
Example: ( Note: Data below are just assumptions to show the computation of
projected demand, not the actual population of Cavite)

Table 1 Historical Demand

Year Population
2011 127,534
2012 129,832
2013 132,171
2014 134,533
2015 136,935
Source: Population of Cavite in terms of number of household, NSO

Computation : Projected Demand/Linear Regression Method

Year Demand(Y) X 2 XY
Population
2011 127,534 -2 4 -255,068
2012 129,832 -1 1 -129,832
2013 132,171 0 0 0
2014 134,533 1 1 134,533
2015 136,935 2 4 273,870
=661,005 X=0 X2 =10 XY= 23,503

a= Y - bX = 661,005 2,350 (0) = 132.201

n 5

b = n (XY) (X) ( ) = 5 (23,503) (0) (661,005) = 2,350

n ( 2 ) (X)2 5(10) 0

Projected Demand Equation

Year = a + b(X) Projected Demand

2017 132,201 + 2350 (4) 141,601
2018 132,201 + 2350 (5) 143,951
2019 132,201 + 2350 (6) 146,301
2020 132,201 +` 2350 (7) 148,651
2021 132,201 + 2350 (8) 151,001

Year (X)
2014 (1)
2015 (2)
2016 (3)
2017 (4)
2018 (5)
2019 (6)
2020) (7)
2021 (8)

Historical Supply

Again using table format, present data that would show the production of your identified
competitor/s. The source would be the one who provided the data like people
interviewed from the identified competitors, data from known government agencies like
Securities and Exchange Commission, BIR and the like.

Projected Supply

Follow the same formula to compute your projected supply.

Market Share (MS) based on demand and supply gap

Table _ Demand and Supply Gap from 2017-2021

_________________________________________ ___________________________
Year Projected Demand - Projected Supply = Gap x % MS = MS (Qty)

2017 141,601 - 135,232 = 6369 x 5 = 318.45

2018 143,951 - 137,477 = 6474 x 10 = 647.40
2019 146,301 - 139,722 = 6579 x 15 = 986.85 2020
148,651 - 141,967 = 6684 x20 = 1336.80
2021 151,001 - 144,212 = 6789x 25 = 1697.25

Projected Sales

Using table format following the five year period (2017-2021), multiply the
product price with the computed market share in terms of quantity to get the
projected sales.

For example for year 2017 the product price per package produced is P 500 x
318.45 = P159,225 ( projected sales should be presented per year, in volume
and in pesos)