Mktg11 De Litecious Mktg Plan Final V5 PDF

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De’ LiteciousMarketing PlanSubmitted by: Poral, Kissel Ann M. Rosario, Michael Bruce C. Soriano, Claudine Kaye C. Suratos, Darlenne A. Tamayo, Sherly Mae L. Toribio, Khristian Daniel R. Valerio, Jude Leenard S. Zamuco, Shyna Mae B. BSA- 2nd yearSubmitted to: Sir Cipriano Miranda Mktg 11 InstructorTa...

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Mac Arthur Highway, Lucao District, Dagupan City

De’ Litecious Marketing Plan Submitted by: Poral, Kissel Ann M. Rosario, Michael Bruce C. Soriano, Claudine Kaye C. Suratos, Darlenne A. Tamayo, Sherly Mae L. Toribio, Khristian Daniel R. Valerio, Jude Leenard S. Zamuco, Shyna Mae B. BSA- 2nd year

Submitted to: Sir Cipriano Miranda Mktg 11 Instructor

Table of Contents Executive Summary ........................................................................................................................1 I.

Current Marketing Situation....................................................................................................2

Kingfisher School of Business and Finance – Marketing Plan A.

Market Description...........................................................................................................2

B.

Product Review.................................................................................................................4

C.

Competitive Review with Segment Analysis.................................................................8

D.

Distributor Channels and Logistics Review................................................................12

E. II.

SWOT Analysis...................................................................................................................12 Marketing Objectives.............................................................................................................16

A.

Objectives.......................................................................................................................16

B.

Issues..............................................................................................................................17

III. Marketing Strategy.................................................................................................................18 A.

Positioning......................................................................................................................18

B.

Product Strategy.............................................................................................................18

C.

Pricing.............................................................................................................................19

D.

Distribution Strategy......................................................................................................25

E.

Marketing Communication Strategy.............................................................................26

F.

Marketing Research.......................................................................................................28

IV. Action Programs....................................................................................................................31 V.

Budgets (Profit Strategy)......................................................................................................33 A.

Sales Goals.....................................................................................................................33

B.

Product Costing..............................................................................................................34

C.

Contribution Margin.......................................................................................................39

D.

Break-even Analysis......................................................................................................42

E.

Pro forma Porfit and Loss Statement...........................................................................46

VI. Controls..................................................................................................................................47 References.........................................................................................................................................49

Kingfisher School of Business and Finance – Marketing Plan Executive Summary The Philippine market has countless number of delicacies and sweets intended to satisfy the cravings of every Filipino. But considering the people nowadays, they prefer healthier choices and believe that health is an important factor when giving consideration to foods and beverages. By integrating these factors, the proponents are planning to organize a business named De’ Litecious – a sweetshop where it sells its own version of pastillias which will be located at Calasiao, Pangasinan. The business will offer a much bigger and nutritious pastillias than the one usually sold in the market and a variety of flavored pastillas such as banana, coconut, and strawberry that will promote healthy diet resulting in a healthy lifestyle. The primary target market of the proponents are the tourists and students that are looking for a great opportunity to incorporate healthy ingredients in their diet in a very convenient way, and retailers which will help to bring the products to the end consumers. Also, the business aims to achieve its mission of exceeding the customer standards and expectation by providing superior quality of products and services. The primary objectives of this marketing plan are to be capable of innovating pastillias in a manner of which it will be beneficial for the consumers, cultivate customer relationship, and to consistently produce high quality products paired with unrivaled services. The sweet shop De’ Litecious will focus on differentiating the product, the balanced taste, nutritiousness, quality, new variations of fruit inspired flavors, different toppings and colorings of Pastillas de Fruta will create a unique product. Over against its competitors, the quality of attention paid to the customers will prevail to achieve a dominant market position.

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Kingfisher School of Business and Finance – Marketing Plan

I.

Current Marketing Situation The food industry is one of the most essential industry segments for society. Consumer’s

demand to have fresh, tasty, and healthy food. Buyers are increasingly concerned about their health diet especially millennials and Generation Z. According to GlobalData, a leading data and analytic company, consumers are growing aware of their health and wellbeing and 57% in the Asia-Pacific (APAC) region is more considerate about a natural ingredient in their food and beverages. This kind of trend is rapidly accelerating in 2018 until today that’s the reason many food industry and companies shift their strategy to healthier products. As the demand continues to grow in a healthy diet and lifestyle, Delite’cious company aim to meet the expectation and needs of the consumers. The increasing demand for healthier and safer products is reflected in the purchasing behavior by critically reading at the ingredients and claims before purchase. According to Saadane-Oaks, the market competition is based upon the ingredients for it build a stronger position in facing the growing pressure from the customer and the prices of new products to be offered considering the economies scale and prices of raw materials, ingredients, and supplies in the market. A wide range of food industry specifically in delicacies is offered by various companies locally and globally which is widely patronized in our country. So, Delite’cious company wants to offer a new healthier product that meets the expectation of customers at a lower cost. Researchers think that offering pastillas de Fruta would give the solution to maintaining a healthy diet of society. Offering a product that gives numerous benefit in lower costs allow a company to remain in the market considering the changes and events. As of now, many companies and industries are also engaging and innovating their products aligned with the consumer’s preferences. However, it is difficult for now to enter such a food industry because of low income due to the pandemic, limited production of raw materials, and the consumers’ behavior is predicted to be more engage with essentials rather than wants. A. Market Description Filipinos cannot resist sweet foods, maybe because sweets serve as ultimate comfort food for every Filipino (Sweet, 2020). The Philippines has a countless number of sweets and desserts, the fact that every region boasts its own sweet recipe, it just shows how much Filipinos love sweets (admin & Marco de Groen, 2014). Something sweet will always be on the table after every meal, or if you just like to eat sweets. Page 2 of 59

Kingfisher School of Business and Finance – Marketing Plan Sweet shops have been around for a while, specifically Puto-Calasiao vendors. These give more Filipinos the opportunity in venturing to other sweet shops. The market of De’ Litecious Company is made up of the residents in Calasiao, Pangasinan, although the recipients of the products and service is not limited to Calasiao residents only. The location of the establishment is close to schools and tourist attractions such as the Church of Calasiao, which means that if there are any activities that are going to take place there the business will have potential customers. Many people in Calasiao and nearby municipalities are getting more involved in eating sweets as their comfort food, and one of the supporting evidences is the visible success of the Municipality business. The specific segment that De’ Litecious will target include students and tourists who love and who are looking to eat sweets and consider them as a regular energy giving nutrient. The company, De’ Litecious was inspired to establish its own sweet shop where it sells its own version of pastillas. Researchers named it as “Pastillas de Fruta” for it uses simple ingredients yet healthy, while keeping important flavors. Our specialty product originated from San Miguel, Bulacan where they celebrate the Pastillas Festival during the month of May since 2006 (“The History of PASTILLAS,” 2016). Researchers wanted to share the culture and take the opportunity because pastillas is not merely common in the market of Calasiao, Pangasinan. De’ Litecious is focused on sweet delicacies that have a variety of flavors. Those people who are looking for sweets are one of the target consumers segment. People particularly the Filipinos, are sentimental and easily attracted to business promotion activities and print materials such as flyers and brochures. The organization aims to actively target and gain consumers through direct business promotions. It will continue to aim to provide customers with more cost-effective avenues. There are several operating sweet shops in Calasiao, Pangasinan and nearby municipalities, However, one of the challenges that the company may encounter is that the confectionery industry is very common in the market. Some of the products that the company may compete with are the following: 1. Yema Candy 2. Peanut Brittle or Candied Roasted Nuts 3. Original Pastillas 4. Puto 5. Tupig, etc.

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Kingfisher School of Business and Finance – Marketing Plan De’ Litecious aims to be competitive enough to the existing delicacy products and since people in the market are price conscious and find products that are offered with a variety of health benefits at a reasonable price. Researchers come up with the idea of being unique among the competitors which is to be consider the two-key factor of Pastillas de Fruta, its nutritious and deliciousness.

B. Product Review The business name De’ Litecious, emphasizes that the researchers can create a healthy savory-sweet just by simple ingredients. Researchers named it “Pastillas de Fruta” Pastillas comes from the word “Pastillas” itself, a famous Filipino delicacy that offers in the market, and it adds “de Fruta” for its flavors are made in cream fruits such as banana, coconut, and strawberry to promote a healthy diet that results in a healthy lifestyle. Researchers choose banana flavor, according to the Philippine Statistic Authority (PSA) the banana production from July to September this year (2020) was estimated at 2.36 million metric tons. The highest production of banana is from the Davao region and it is spread all around the Philippines and Global. Moreover, researchers assured that the supplies of bananas would not lead to a shortage. While the strawberry flavor, according to agriculture secretary William Dar there is a stable strawberry supply in La Trinidad, Benguet which is the strawberry capital of the Philippines that is the reason why the researchers find a supplier that would be able to give a sufficient supply of strawberry for every week operation. Lastly, the coconut flavor, the production of coconut in the Philippines is about 4.06 million metric tons in 2019 and it is forecast to have more output in the following years according to the Department of Agriculture since there is enough budget for allocating the fund to each production. Since there is enough production of coconut in the Philippines for sure the Delite’cious company would be able to control the supplies and its prices for company success. Pastillas de Fruta is made a circle and bigger among other pastillas sold in the market. It has cream fruits inside to keep the product healthier and tastier. It is coated with either crushed cookies, sprinkles, milo powder, or sugar to avoid it from sticking into the wrapper also it is chilled to prevent spoilage. Pastillas de Fruta is wrapped in Japanese paper individually, to protect it from exposure to a microorganism that might spoil or affect the product’s quality. It also has an aesthetic design to help attract more prospective customers. The company ensures to be stand out compare to competitors. As the company would grow and be profitable, the researcher’s plan to expand its business through making more and newer pastillas flavors by Page 4 of 59

Kingfisher School of Business and Finance – Marketing Plan observing the customer buying behavior and the environment that would meet customer needs and expectations.

Individual Pastillas De Fruta

Bundle Pastillas De Fruta

Table 1.1 Packaging and Labelling

 ADVANTAGES The pastillas De Fruta are made bigger from the usual pastillas sold in the market to make the customers enjoy every bite and meet the full satisfaction. The ingredients such as cream fruits used are high quality to provide functional food that would provide health benefits beyond basic nutrition, ensuring product quality and food safety. Moreover, the company’s advantage compared to other competitors is the pricing strategy, the researcher will be using pricing penetration where it offers new product and setting a lower price against the competitors in the initial offering. In this way, the company can attract more customers and can help to have high gain from the market competition and start to build its own reputation.  BENEFITS 1. Exceptional Nourishment – the main ingredient, powdered milk contains magnesium, phosphorus, potassium, vitamin C, vitamin A, and vitamin D. 2. Improves Bone – milk is said to be rich in calcium, pastillas will create an addition to building bones and keeping them healthy. 3. Improves Vision – Vitamin A which is present in powdered milk, aids in improving vision and preventing nigh-blindness and macular degeneration.

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Kingfisher School of Business and Finance – Marketing Plan 4. Prevents Body from Aging – Chocolate is a favorite sweet treat that also has health benefits. It contains flavonoids, which act as anti-oxidants. Anti-oxidants protect the body from aging caused by free radicals. 5. Memory and Cognitive Function – the brain is highly dependent on a steady supply of glucose to fuel brain cells. 6. An outstanding source of essential vitamins, minerals, and high in fiber–cream fruits can help to reduce a person’s risks of developing heart disease, cancer, and diabetes. Nutrition Facts of Banana, Strawberry and Coconut  Banana 

Calories: 89, Water: 75%, Protein: 1.1 grams, Carbs:2.28 grams, Sugar: 12.2 grams, Fiber: 2.6 grams, Fat: 0.3 grams. (FoodData Central, 2019)

 Strawberry 

Calories: 32, Water: 91%, Protein: 0.7 grams, Carbs:7.7 grams, Sugar: 4.9 grams, Fiber: 2 grams, Fat: 0.3 grams. (FoodData Central, 2019)

 Coconut 

Calories: 283, Water: 91%, Protein: 3 grams, Carbs: 10 grams, Sugar: 5 grams, Fiber: 7 grams, Fat: 27 grams, Manganese: 60% (Daily value), Selenium: 15%. Copper: 44%, Phosphorus: 13%, Potassium: 6%, Iron: 11%, Zinc:10%. (FoodData Central, 2019)

 Costs and Prices The goal of De’ litecious is to maximize profits in the delicacies industry. The company assures that this Pastillas de Fruta will guarantee that all delicacies and other related shops meet and exceed the standards of the customer and competitors around Calasiao, Pangasinan. The researchers will work hard to guarantee that Pastillas de Fruta will not only be wellknown in Calasiao but throughout in Pangasinan. The product costs and prices are shown below:

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Kingfisher School of Business and Finance – Marketing Plan  Raw Materials cost Ingredients

No. of Units

Cost per Unit

Name and Address of Supplier

Condense Milk

2 cans

Php 41.20

Puregold Calasiao

Milk powder

640 kg

Php 104.00

Puregold Calasiao

Sprinkles

50 g

Php 35.00

Puregold Calasiao

Chocolate powder

440 kg

Php 60.80

Puregold Calasiao

Butter

1 pack

Php 27.80

Puregold Calasiao

White Sugar

500 g

Php 12.50

Puregold Calasiao

All Purpose cream

250g

Php 55.00

Puregold Calasiao

Strawberry

½ kg

Php 300.00

Banana

1 kg

Php 60.00

Coconut

3 pcs

Php 20.00

Strawberry Farm, La Trinidad, Benguet Mr. Michael Bruce Rosario, San Carlos Mr. Jonathan Aquino, Santa Barbara

Table 1.2 List of Raw materials Packaging

No. of Units

Cost per Unit

Name and Address of Supplier

Japanese paper

1 roll

Php 35.00

Calasiao Public Market

Goodies Plastic

1 pack

Php 32.00

Calasiao Public Market

Table 1.3 List of Packaging supplies  Price

BUNDLED PRICE

INDIVIDUAL PRICE

Php 5.00

Php 24.00

1 pc for coconut, strawberry and banana pastillas

5 pcs for assorted flavors of coconut, strawberry and banana pastillas.

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Kingfisher School of Business and Finance – Marketing Plan Figure 1.1 Prices of Pastillas De Fruta An effective product pricing and packaging help the business increase sales volumemaximizing profits in market share, meeting competition, and building a strong market position. The pricing objective reflects on the overall goal of a business. Researchers made sure that the expectations of the customers of De’ Litecious product will meet to gain customer's trust.

C. Competitive Review with Segment Analysis The market analysis drives the business. A complete and well written marketing analysis is the cornerstone of a successful marketing and advertising campaign. Without the customers, business won’t exist so, identifying our target market is very important. Since the location of the business is located at A&D ...