Prodman LA- Kandila-1 - marketing plan PDF

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“LA KANDILA” SCENTED CANDLE PRODUCT PLANPresented to the Faculty of the Marketing Department College of Business Administration and Accountancy De La Salle University - Dasmarinas Dasmarinas City, CaviteIn partial fulfillment of the requirements for Product ManagementAQUINO, KATHLEEN MAE B.CATERON, ...

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“LA KANDILA” SCENTED CANDLE PRODUCT PLAN

Presented to the Faculty of the Marketing Department College of Business Administration and Accountancy De La Salle University - Dasmarinas Dasmarinas City, Cavite

In partial fulfillment of the requirements for Product Management

AQUINO, KATHLEEN MAE B. CATERON, ALIZA JOYCE S. FLORES, JOHN DAEMARL M. HERNANDEZ, MARIAH THERESE O. INUMERABLE, GIANNE D. JONSON, PATRICIA ANN MAE H. PONCIO, HOBY KYLE A. QUERUBIN, CAMILLE JOEYCE D. RAMORAN, JAN BRYLE B. RICAFORT, CONNIE CLARISSE P. ROCILLO, CHANEL NIKOS M. SOLER, CARYL MAE A. VENTURA, JOSHUA O.

February 2021

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ABSTRACT AQUINO, KATHLEEN MAE B., CATERON, ALIZA JOYCE S., FLORES, JOHN DAEMARL M., HERNANDEZ, MARIAH THERESE O., INUMERABLE, GIANNE D., JONSON, PATRICIA ANN MAE H., PONCIO, HOBY KYLE A., QUERUBIN, CAMILLE JOEYCE D., RAMORAN, JAN BRYLE B., RICAFORT, CONNIE CLARISSE P., ROCILLO, CHANEL NIKOS M., SOLER, CARYL MAE A., VENTURA, JOSHUA O. “La Kandila” Scented Candle Product Plan. Bachelor of Science in Business Administration major in Marketing and Advertising Management specialized in Marketing Communication. De La Salle University - Dasmariñas. February 2021. Adviser: Dr. Luisito P. Masanga. In the course of its long history, candles have been used for various purposes aside from a source of light. It became available in different shapes, sizes, and aroma, which resulted into a thriving industry of ready-to-make candles, essential oils, and other materials required of the enterprise startup. Notably, the scented candle market in the Philippines has been rapidly growing in recent years, thus, aromatherapy candle making is a timely business idea. There is a growing demand for this product and the rise of ecommerce made transactions convenient for both the buyer and the seller. In line with this, the study aimed to develop a scented candle product plan based on the preferences of consumers. Specifically, it aims to: 1) determine the demographic profile of the respondents, 2) identify the consumer behavior towards scented candles, 3) assess the consumer preference towards scented candles, 4) study the characteristics of enterprises and the factors affecting entrepreneurs for scented candle products, and 3) interpret the data concerning the present market of scented candle MSMEs for the potential development of the product. The researchers used the descriptive method for this study. A survey questionnaire used to gather necessary information for the study. The researchers used the purposive sampling or convenient sampling method for the sample selection. Secondary data will be gathered through articles and Internet websites.

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TABLE OF CONTENTS CHAPTER 1 .................................................................................................................... 4 INTRODUCTION ................................................................................................................................. 4 Statement of the Problem.................................................................................................................. 6 Objectives of the Study...................................................................................................................... 7 Significance of the Study ................................................................................................................... 7 Definition of Terms ............................................................................................................................. 8

CHAPTER 2 .................................................................................................................... 9 METHODOLOGY ......................................................................................................................9 Research Design ................................................................................................................................ 9 Sampling Procedure......................................................................................................................... 10 Research Instrument........................................................................................................................ 10 Data Gathering Procedure .............................................................................................................. 10 Data Analysis .................................................................................................................................... 11

CHAPTER 3 .................................................................................................................. 12 RESULTS AND DISCUSSION ...................................................................................................... 12 I. Demographic Characteristics ...............................................................................................................12 II. Survey Questionnaire .............................................................................................................................13 III. PESTLE Analysis ..................................................................................................................................... 19 IV. Industry Analysis ...................................................................................................................................... 23 V. 4 Ps of Marketing ...................................................................................................................................25 VI. Customer Analysis ................................................................................................................................27 VII. Competitor Analysis ..............................................................................................................................30

APPENDIX A ................................................................................................................ 33 Survey Questionnaire for Scented Candles .............................................................................. 33 REFERENCES .............................................................................................................. 36

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CHAPTER 1 INTRODUCTION This chapter includes the background of the study, statement of the problem, significance of the study, and definition of terms. Candles have illuminated the world for more than 5000 years, since the Ancient Egyptians first used them in 3000 B.C. It was developed using melted animal fat and core of reeds as well as beeswax and rolled papyrus for the wick. Although they are no longer considered a major source of light, they are continuously growing in popularity and usage. Nowadays, they symbolize celebration, romance, ceremonious events, and home decor accents. It has come a long way from its initial use up to what we are familiar today, a candle for warmth and glow in any occasion (Jadagoud, 2013).

According to the report published by Fast.MR, entitled “Vietnam & Philippines Candle Market 2018: Market Size, Market Volume, Trends, Opportunity, forecast 20182024,” the Philippines candle market is expected to grow at a value of USD 35.4 million by 2024, with a compound annual growth rate (CAGR) of 1.9%. In terms of the competitive landscape, some notable players in the Philippine candle market are Bath & Body Works Direct, Inc., Yankee Candle Philippines, Happy Island Candle Co., among others. Meanwhile, other popular local brands will be discussed in the competitor analysis, namely Saan Saan and Sunday Zen. This market is segmented by type, material, price range, and distribution channel. The type can be tea lights, pillar, taper, votives, floaters, and others. Price range is either low-price, mid-price, or high-price. Meanwhile, raw material includes paraffin wax, beeswax, soy wax, gel wax, etc. Lastly, the distribution is divided into online and offline stores, wherein micro, small, and medium enterprises (MSMEs) in this industry are found almost everywhere.

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In line with the study of Sandy (2018), beeswax or soy wax candles are the most appropriate choice when it comes to its advantages. It has air purification qualities that traps dirt, dust, odor, and mold as well as natural health benefits, such as easing allergy and asthma symptoms. With comparison to paraffin wax, which is the most common type available in the market, paraffin candles can release highly toxic chemicals, like benzene and toluene (carcinogens). These toxins are also found in diesel fuel fumes. Dr. Massouidi (n.d.) added that these pollutants can contribute to the development of health risks, including cancer, asthma, and allergies.

Furthermore, the rising consumption of candles is due to its functionality as a home decor piece and its popularity for having therapeutic and relaxing benefits. Multiple fragrances are available in the market and the demand has increased in recent years, as people want to reinvent their space into a homier and cozier environment. Design innovation is also a factor that attracts new consumers, which is dependent on its function, such as religious, decorative, and personal purposes.

As stated by Kayne (2021), scented candles can be made in various ways using different varieties of pre-blended wax and fragrance oils. There should only be at a maximum of 8% ml of fragrance oil per gram of wax. In addition, specific ingredients include organic beeswax or soy wax (1 cup/250 ml), essential oil (2 tsp./9.8 ml), wick, sticker label and 2 oz glass or tin can. This recipe can produce four pieces of 2 oz candles, with a weight of 50 g and 1.74 oz of product.

Raw materials can be purchased at wholesale price, with 1000 ml of beeswax or soy wax at Php 300, 10 ml of aromatherapy essential oil at Php 35 (x 4 bottles), cotton wick at Php 2.5 (x 16 pieces), sticker label at Php 2, glass at Php 14 (x 16 pieces). The first batch accounts for Php 706 capital and should produce a total of 16 candles, which is 4 candles per scent. Moreover, another option is to extract the essential oil from the plant itself, which is done by the process of steam distillation or oil soaking (The Practical Planter, n.d.). 5

The mission of La Kandila is to offer a wide variety of high quality and naturally aromatherapy scented candles at an affordable price. This offers numerous benefits, unlike the typical ones we see in the market today. Not only do soy wax provide natural health benefits, but they also produce negative ions that help eliminate dust, odors, and mold in the atmosphere. Apart from that, a wide variety of unique scents will be available, including oregano/eucalyptus, thyme, pandan, sampaguita, due to their respective health benefits, especially in this time of a worldwide health crisis. La Kandila wants nothing less than to be a locally made aromatherapy and eco-friendly scented candle that will purify homes and personal spaces with all-natural ingredients. Statement of the Problem This study aimed to develop a scented candle product plan based on the preferences of consumers. Specifically, it seeks to answers to the following questions: 1. What is the demographic profile of the respondent in terms of: a. Age; b. Gender; c. Estimated Monthly Family Income. 2. What is the consumer behavior towards scented candles in terms of: a. Previous purchase b. Previous usage c. Reasons for purchase

3. What is the consumer preference towards scented candles in terms of: a. Scent b. Strength of aroma c. Appearance d. Budget

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e. Preferred store 4. What are the characteristics of enterprises and factors affecting entrepreneurs in the scented candle industry? 5. How will the data concerning the present market of scented candle MSMEs influence the potential development of scented candle products?

Objectives of the Study This main purpose of this study is to develop a scented candle product plan based on the preferences of consumers. Specifically, the study aims to: 1. determine the demographic profile of the respondents in terms of age, gender, and estimated monthly family income; 2. identify the consumer behavior towards scented candles, in terms of previous usage, previous purchase, and reasons for purchase; 3. assess the consumer preference towards scented candles, in terms of scent, strength of aroma, appearance, budget, and preferred store. 4. study the characteristics of enterprises and factors affecting entrepreneurs in the scented candle industry; 5. interpret the data concerning the present market of scented candle MSMEs influence the potential development of scented candle products.

Significance of the Study This scented candle product proposal based on the preferences of consumers will benefit the following: Local Scented Candle Industry. This research determines the factors that can help improve the current scented candle product selection in the Philippines. This also

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supports sustainability and further development between cultural heritage and the modern business world. Potential Market. This research serves as an opportunity to express the consumers’ perception concerning the product. Their preferences will be a vital part in the product development. Future Researchers. They can use this study as a reference that will guide them in the future studies of the same concern. It also provides materials such as test questionnaires that they can use if they will come up with studies related to this subject.

Definition of Terms Age refers to the length of life of the participants extending from their birth. It will be categorized in terms of whether the participants belong to: 13 to 24 years old - Generation Z 25 to 40 years old - Millennials 41 to 56 years old - Generation X 57 to 75 years old - Baby Boomers Gender refers to either of the two major forms of individuals that occur in many species and that are distinguished respectively as female or male especially on the basis of their reproductive organs and structure. Estimated Monthly Family Income refers to the estimated amount of money the family received and earned every month. This will be categorized as: ₱ 10,000 and below - Very Low ₱ 10,001 - ₱ 20 000 - Low ₱ 20 0001 - ₱ 30 000 - High ₱ 30 000 and above - Very High

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Scented Candles refers to wax mixed with fragrant oils that gives off a pleasant aroma when burned. It can create an ambience of well-being and healthfulness.

Essential oils refer to oils extracted from plants that bear the plants’ aroma or scent and flavor or essence. They can be inhaled, diluted, and applied to the skin and may stimulate your sense of smell or have medicinal effects when absorbed.

CHAPTER 2 METHODOLOGY This chapter deals with the research procedure to be used in this study. These are presented in the following sections: Research design, Sampling Procedure, Research Instrument, Data Gathering Procedure, and Data Analysis.

Research Design This study employed the descriptive method of research in determining the consumer preferences towards scented candles and developing a new product proposal. The researchers used the descriptive method for this study, which is a method created by gathering, analyzing, and presenting collected data that helps to fully understand the significance or purpose of this study (Saunders, et. al., 2012). In addition, the quantitative approach is used, which is defined by Cresswell (1994) as “a type of research that is explaining a certain phenomena by collecting numerical data that are analyzed using statistics”. Findings generated uncovers behaviors and trends, however, this does not cover the overall insight or feeling of a consumer regarding a product, it just provides the trend over data sets or study groups.

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Sampling Procedure A sample of one hundred (100) respondents were conveniently chosen. The researchers used the purposive or convenience sampling method for the sample selection. According to Saunders, et. al. (2012), convenience sampling is a type of nonprobability sampling method that relies on data collection from those who are conveniently available to participate in the study.

Research Instrument A survey questionnaire will be used to gather necessary information for the study. According to Sincero (2012), a survey questionnaire is a systematic method that is utilized to collect, analyze, and interpret the views of a group of people from a target population. It makes use of statistical techniques mainly used in quantitative research. This was composed of two parts. Part I comprises the demographic profile of the respondents such as the name, age, gender, and estimated monthly family income. Part II is composed of ten (10) items in multiple choice format, focused on the consumer behavior and preference towards

Data Gathering Procedure The primary data were gathered through a survey questionnaire distributed to the respondents using Google Forms, an online survey site. Instructions were given to the respondents; having assured them of confidentiality that the information provided would be used only for the purpose of the study. Facebook and Messenger were the social media platforms used in disseminating the survey. Furthermore, the survey ran for one (1) week, giving the respondents adequate time so as to give accurate and appropriate

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answers. Through the survey form, the researchers were able to gather data that would help in coming up with a conclusion regarding the proposed product.

Data Analysis After data gathering, total responses for each item will be obtained and tabulated. The researchers will classify and analyze the data with the use of pie charts to present the specific data to be discussed. According to Boslaugh (2012), the pie chart graphically shows what proportion each part occupies to the whole. They are most useful when there are only a few categories of information and the differences among those categories are fairly large.

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CHAPTER 3 RESULTS AND DISCUSSION This chapter presents analyses and interprets the data that were gathered in response

I.

to

the

specific

problems

that

this

research

wishes

to

answer.

Demographic Characteristics To measure the demographic profile, three variables were studied, namely age,

gender, and estimated family monthly income. Figure 1.1 shows that the majority of the respondents are aged 13-24 years old, wherein 87 percent are Generation Z consumers, specifically focused on the ages of 1921. Meanwhile, 8 percent are 25 to 40 years old (Millennials), 3 percent are 57-75 years old (Baby Boomers), and 2 percent are 41 to 56 years old (Generation X).

Figure 1.1 Age level of the respondents Figure 1.2 shows that most of the respondents are female with 74% percent of the whole respondents while the remaining 26% were male respondents.

Figure 1.2 Gender of the respondents 12

Figure 1.3 shows that majority of the respondents have Php 30,000 and above estimated monthly family income having 53% answered, followed by Php 10,000 to 20,000 which took 19% of the respondents and the least are people having less than Php 10,000 monthly family income having only 11 percent of the respondents.

Figure 1.3 Estimated Monthly Family Income

II.

Survey Questionnaire Figure 2.1 shows that 58 percent of the respondents have already tried buying

scented candles while 42 percent responded that they have not gotten the chance to purchase one before. This implies that although there are already scented candles that are out in the market, this product still needs to have more exposure and development to be able to proliferate or to be recognized by the audience as something that is truly worthy for someone to buy.

Figure 2.1 Have...