MARKETING

ASPECT

ASuM Co. distinguishes that a business ventures primary goal is to create customers
and to cater to them. Thus, the substance of the firms marketing strategy shall center on
providing the customers and the firms contact with them to generate viable demand for the
product.

The business industry that the firm will venture is new in its field. Because its new in the
market, it greatly poses a challenge in terms of the appropriate marketing plan that would be
accessible and cost beneficial.
Name of the Product
The name of the vending machine is ASuM (Automatic Supplies Machine). The
proponents named it so because it describes the service to be provided by the business. This
machine, as its name implies, delivers school supplies such as yellow paper, worksheet,
graphing paper, bond papers, drawing paper, test booklet, index cards, manila paper, cartolina,
and colored paper. The vending machines will release the products by pieces. When an order is
placed, the machine sends the supplies in an approximately 30 seconds with a 100% good
quality product will be served.
AREA OF DISPERSION
ASuM Co. initially focuses the distribution of its products within Bulacan State
University- Bustos Campus, Bulacan State University- Malolos, Bulacan Polytechnic College,
Bulacan Agricultural State College, Baliwag Polytechnic Collge and Polytechnic University-
Pulilan due to the following reasons:
The companys products will basically cater students needs. Also, since the universities
do not have an in house bookstore, the students are expected to patronize its products
given its easier accessibility.
The universities are in close proximity with the companys warehouse, which is located
in Paltao, Pulilan, Bulacan, thereby reducing delivery costs upon replenishing its
inventories.
There is no pre-existing paper school supplies vending machine inside these campuses.
Aside from those sold in the school canteen, there is no more similar service offered
within the campus.
METHODS OF DISTRIBUTION
AsuM Co. provide a two-day per month or twice a month delivery to its target
market as tabulated in this figure:

DATE POINT OF
ORIGIN
POINT OF
DESTINATION
DISTANCE IN
KMS.
DELIVERY
COSTS *
1
st
of the
month
Paltao, Pulilan,
Bulacan

Bulacan
Agricultural State
College
Pinaod, San
Ildefonso,
Bulacan

24.4 kms


P 122.00

Pinaod, San
Ildefonso,
Bulacan

Bulacan State
University
Bustos Campus
Poblacion,
Bustos, Bulacan

18 kms.

P90.00

Poblacion,
Bustos, Bulacan

Baliwag
Polytechnic
College
San Jose,
Baliwag,
Bulacan
2.4 kms.

P12.00


San Jose,
Baliwag,
Bulacan


Polytechnic
University of
the Philippines
Pulilan Campus

10.2 kms

P51.00

Pulilan, Bulacan


Bulacan State
University
Malolos Campus
Bulihan,
Malolos City,
Bulacan

12.5 kms

P62.50

Bulihan,
Malolos City,
Bulacan

Bulacan
Polytechnic
College
Malolos City,
Bulacan
1.7 kms

P8.50



DATE POINT OF
ORIGIN
POINT OF
DESTINATION
DISTANCE IN
KMS.
DELIVERY
COSTS *
16th of the
month
Paltao, Pulilan,
Bulacan

Bulacan
Agricultural State
College
Pinaod, San
Ildefonso,
Bulacan
24.4 kms


P 122.00


Pinaod, San
Ildefonso,
Bulacan

Bulacan State
University
Bustos Campus
Poblacion,
Bustos, Bulacan

18 kms.

P90.00

Poblacion,
Bustos, Bulacan

Baliwag
Polytechnic
College
San Jose,
Baliwag,
Bulacan

2.4 kms.

P12.00

San Jose,
Baliwag,
Bulacan


Polytechnic
University of
the Philippines
Pulilan Campus

10.2 kms

P51.00

Pulilan, Bulacan


Bulacan State
University
Malolos Campus
Bulihan,
Malolos City,
Bulacan

12.5 kms

P62.50

Bulihan,
Malolos City,
Bulacan
Bulacan
Polytechnic
College
1.7 kms

P8.50

Malolos City,
Bulacan

*Fuel costs of P55/liter at usage of 11 kms/liter (may be subject to fluctuations)

The two-day per month delivery is expected to increase in the near future as the
demand for the products increase.
General Trade Practices
The following practices are to be followed and implemented by ASuM Co.:
The ASuM Co. vending machine will be operational during school days only. But the
offices will be open during regular office hours (8:00 am 5:00pm) from Monday to
Saturday.
Machine inventory replenishment will be made every two week time to ensure that
adequate supplies will meet the demand. This may vary according to circumstances
increasing demand such as exam weeks etc. The firm will be contacted by the schools
personnel in case of an untimely replenishment need.
By the following year, ASuM Co. will be offering its products in other nearby school,
preferably within Bulacan area, to maximize opportunities to expand its market.
Through the years, ASuM Co. will also enter public colleges, universities in National
Capital Region in line with its expansion plans.

Brand Positioning Statement
To public and private colleges and universities, Automatic Supplies Machine offers basic
school supplies like yellow paper, worksheet, graphing paper, bond papers, drawing paper, test
booklet, index cards, manila paper, cartolina, and colored paper with similar quality.
Market Share and Competition
Automatic Supplies Machines predict that the strongest competitors of ASuM are the
existing store and bookstore near in the Bulacan State University, Bustos Campus. Since the
idea of automatic supplies machine is relatively new and unique to Bulacan even if there are
many large bookstore in the market, ASuM can take advantage of the current situation by being
the first machine which offers a basic school supplies with the same quality and low cost. The
business will focus on creating a niche market for the innovative machines, to compete with
larger more recognizable bookstore. By being first in the market, they will have a unique
opportunity to the brand and the machines.

MARKETING MIX
PRODUCT
Automatic Supplies Machine will be the first in the market. Currently, the market only
provides vending machines for foods and beverages. ASuM will be the first vending machine in
the market that offer a variety of basic school supplies such as yellow paper, worksheet,
graphing paper, bond papers, drawing paper, test booklet, index cards, manila paper, cartolina,
and colored paper that serve the needs of the consumer by offering the same quality in the
bookstore.

PRICE
Of all the aspects of the marketing mix, price is the one, which creates sales revenue
all the others are costs. The price of an item is clearly an important determinant of the value of
sales made. In the theory, price is really determined by the discovery of what customers
perceive is the value of the item on sale. Researching consumers opinion about pricing is
important as it indicates how they value what they are looking for as well as what they want to
pay. ASuMs pricing strategy will vary according to the type of the product and to the number of
pieces. Crudely speaking, the value of the school supplies that are offered in the ASuM will be
considerably the lower in value from the school supplies in the market and in bookstore.

PROMOTION
The firm shall consider promotion from the initial phase of the business which is done
through personal conversation with its target market, the students. Creating a buzz this
early will entice the target market to purchase it when it comes available.
With the augmentation of social networking sites, AsuM Co. shall create a Facebook
Account showing the companys profile, its products, and its initiatives. Because of the
lower maintenance cost of social networks, taking advantage of this will generate more
publicity for the firm.
Starting Year 2, the company will be offering the product to other university in Bulacan
through leaflets, brochures and direct contacts with the schools administrators. The
brochures and leaflets describing the firms product and initiatives will be given to the
school administrator attracting them to avail of our machines.
Starting Year 3, AsuM Co. plans to build its own website. In putting up a website, the
market will greatly increase and prospective customers (other universities nationwide)
will now be accommodated.
PLACE
With the established contact with the target market, ASuM Co. plans to put up three
machines inside the campus. One is to be placed at the second floor, the other two on the
ground floor each near the opening of the building, to be as closer to the students as possible.
Convenience and proximity to the customers is strictly observed in selecting selling spots for it
is the main purpose of the product and is a huge factor to create demand. To be responsive to
demand, machine inventories will be replenished every two week time or at any time needed.
The firm will put up an office and a warehouse at Paltao, Pulilan, Bulacan. Considering
the savings by renting and its proximity to suppliers and target market with the monthly rental
cost of 25, 000 pesos a month for the warehouse and office, the chosen location will be cost
effective for the firm. The office will be responsible for answering phone calls and administering
paper works while the warehouse will serve as operating and storage facility. After 5 years of
efficient operation the company shall acquire its own lot and established its own warehouse.
In the subsequent years, ASuM Co. will contact other school within Bulacan to establish
a wider and more stable market. The products unique features will be the primary persuasive
factor to attract more customers.






STRENGTH
Convenience to
products
Less time consuming for
users
Availability of suppliers

WEAKNESS
Possible mechanical
failures
Energy dependence
OPPORTUNITY
Ability to develop
additional machines
Affiliate relations with
suppliers
THREAT
Increasing energy cost
Small retailer as
competitors
High delivery costs

SWOT ANALYSIS