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MARKET STUDY For the derivation of the market, the authors of the study considered the import data

of Acetic Acid for the supply and the import-export data of all its end products for the demand. The following facts have been kept in mind for the derivation of the market: 1. All its end or downstream product will be considered in order for the company to attain its maximum market on its clients locally. 2. The export data of the all its end product were considered because it was assumed to be based on the data presented here in the Philippines. The authors wish to address the production needs of the country by providing their primary raw material, Glacial Acetic Acid. 3. The end products that considered were sodium acetate, cobalt acetate, other salts of acetic acid, vinyl acetate monomer, isobutyl acetate, ethyl acetate, n-butyl acetate, 2-ethoxyethyl acetate, other esters of acetic acid, acetic anhydride, monochloroacetic acid, dichloroacetic acid, and trichloroacetic acid 4. Taking into consideration only that the end products of Glacial Acetic Acid export data for demand is not enough for the proposed Glacial Acetic Acid plant to be profitable. In line with that, the authors has to come up with the idea on making it more profitable; lessen the countrys dependence upon imports while maximizing the size of the manufacturing plant. Thus, their import data was considered. It is important to note that the project is risky since there will be competitors of Glacial Acetic Acid plants in the Philippines. However, the proponents measured this risk and took the safe side on market share and marketing programs decisions. The two marketing aspects will be further explained in the latter part of this chapter.

Historical Data of Glacial Acetic Acid To be as precise as possible in determining the projected supply and demand, ten (10) years of historical data and ten (10) years of projected data for supply and demand are considered. Using the above-mentioned considerations and the formula below, the historical demand and supply were determined as follows:

Historical Supply The data were taken as is since there is no direct data table for Glacial Acetic Acid imports, the authors consider on the data on Acetic Acid imports since the term glacial explains only on its percentage amount of acetic acid. Table 3.1 Historical Data of Acetic Acid Imports Acetic Acid Imports Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Gross Weight (kg) 8,119,956 8,471,934 8,937,781 6,724,560 6,930,680 6,547,288 7,481,392 8,554,659 9,458,604 7,315,233 FOB (Php) Php192,842,231.00 Php217,113,365.00 Php231,841,113.00 Php171,858,231.00 Php250,719,066.00 Php205,721,422.00 Php210,121,399.00 Php216,944,785.00 Php207,669,447.00 Php145,831,015.00

Source: National Statistics Office; Data of Imports and Exports

Historical Demand Import and export data for all the downstream products of glacial acetic acid in order to get the Glacial Acetic Acid usage. This is based upon the fact that the downstream products will be main markets are composed or using Glacial Acetic Acid in their corresponding line of production.

Table 3.2 Historical Data of Downstream Product Usage Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Import 16,822,455 16,901,580 20,154,581 19,712,219 22,826,328 21,433,148 20,503,754 24,981,636 21,591,702 22,274,352 Export 0 2,057 0 0 100 21,120 5,375 750 0 0 Total Usage 16,822,455 16,903,637 20,154,581 19,712,219 22,826,428 21,454,268 20,509,129 24,982,386 21,591,702 22,274,352

Source: National Statistics Office; Data of Imports and Exports

The Glacial Acetic Acid usage was derived from its downstream products import and export data. They were sodium acetate, cobalt acetate, and other salts of acetic acid, vinyl acetate monomer, isobutyl acetate, ethyl acetate, n-butyl acetate, 2-ethoxyethyl acetate, and other esters of acetic acid, acetic anhydride, monochloroacetic acid, dichloroacetic acid, and trichloroacetic acid. These were added to get the totality of the Glacial Acetic Acid demand.

Projected Supply Five projection methods were used for both the supply, demand and unit price: a. ASLM- Arithmetic Straight Line Method Assumes that the annual increase in the future will be the same although the rate of increase in percent will keep on going down. b. AGCM- Arithmetic Geometric Curve Method In this method the rate of increase in the projected values is constant; however, the amount of change keeps on increasing. c. SPPM- Statistical Parabolic Projection Method In this method, the change in the predicted values may be increasing or decreasing while the percentage change of the values for the prior year may also be increasing or decreasing. d. SGCM- Statistical Geometric Curve Method Also known as SEMI-LOG method, wherein the change in the projected values is constant while the amount or magnitude of change keeps on compounding. e. SSLM- Statistical Straight Line Method In this method, the change in the figure is uniform, while the change as a percentage of the data for the prior year is decreasing.

The method with the least standard deviation was statistical geometric curve method for the supply, arithmetic geometric curve method for the demand and arithmetic straight-line method for the price. The projected values are as follows:

Table 3.3 Projected Demand Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Yactual 24,615,406.99 25,429,790.23 26,271,116.77 27,140,278.01 28,038,194.82 28,965,818.57 29,924,132.10 30,914,150.74 31,936,923.45 32,993,533.87 34,085,101.50 35,212,782.86 36,377,772.76 37,581,305.52 38,824,656.31

Table 3.4 Projected Supply Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Yactual 9,440,185 9,430,989 9,421,802 9,412,624 9,403,455 9,394,295 9,385,144 9,376,002 9,366,868 9,357,744 9,348,628 9,339,521 9,330,424 9,321,335 9,312,255

Table 3.5 Projected Price Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Yactual 140,607,547 135,384,078 130,160,610 124,937,141 119,713,673 114,490,204 109,266,736 104,043,267 98,819,799 93,596,331 88,372,862 83,149,394 77,925,925 72,702,457 67,478,988

To further lessen risks and ensure that the product will be marketed, the projected supply was subtracted from the projected demand. The difference is the demand gap that the company wishes to fill and shall be termed as potential market:

Table 3.6 Projected Potential Markets in Ten (10) Years Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Projected Demand 28,038,194.82 28,965,818.57 29,924,132.10 30,914,150.74 31,936,923.45 32,993,533.87 34,085,101.50 35,212,782.86 36,377,772.76 37,581,305.52 Projected Supply 9,403,455.34 9,394,295.20 9,385,143.99 9,376,001.70 9,366,868.31 9,357,743.82 9,348,628.22 9,339,521.49 9,330,423.64 9,321,334.65 Projected Potential Market 18,634,739.48 19,571,523.37 20,538,988.10 21,538,149.04 22,570,055.14 23,635,790.05 24,736,473.28 25,873,261.37 27,047,349.12 28,259,970.87

Historical Data of Ethanol In order for the company to reach its maximum raw material needed for the production, the import and export data for the raw material, ethanol, will be considered. To be as precise as possible in determining the projected supply and price of ethanol, ten (10) years of historical data and ten (10) years of projected data for demand and price are considered. Using the above-mentioned considerations and the formula below, the historical supply was determined as follows:

Table 3.7 Historical Data of Ethanol Imports

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Gross Weight (kg) 51,577 8,600,855 7,841,180 16,983,117 17,961,372 11,521,820 11,032,830 30,821,441 49,360,931 158,776,409

FOB (Php) PHP 7,881,857 PHP 111,845,663 PHP 171,160,929 PHP 367,093,209 PHP 653,787,673 PHP 347,608,926 PHP 307,420,431 PHP 905,047,085 PHP 1,709,320,826 PHP 5,597,627,557

Source: National Statistics Office; Data of Imports and Exports

Table 3.8 Historical Data of Ethanol Imports

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Gross Weight (kg) 376,768 168,155 507,157 191,131 889,703 250,628 305,241 242,289 305,799 298,121

FOB (Php) PHP 36,742,295 PHP 11,260,548 PHP 32,769,423 PHP 13,684,640 PHP 60,572,392 PHP 20,873,355 PHP 22,214,336 PHP 19,005,074 PHP 34,560,502 PHP 15,915,627

Source: National Statistics Office; Data of Imports and Exports

Table 3.9 Total Historical Data of Ethanol

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Gross Weight (kg) 428,345 8,769,010 8,348,337 17,174,248 18,851,075 11,772,448 11,338,071 31,063,730 49,666,730 159,074,530

FOB (Php) PHP 44,624,152 PHP 123,106,211 PHP 203,930,352 PHP 380,777,849 PHP 714,360,065 PHP 368,482,281 PHP 329,634,767 PHP 924,052,159 PHP 1,743,881,328 PHP 5,613,543,184

Source: National Statistics Office; Data of Imports and Exports

Projected Supply Five projection methods were used for both the supply and unit price of the raw material, Ethanol: a. ASLM- Arithmetic Straight Line Method Assumes that the annual increase in the future will be the same although the rate of increase in percent will keep on going down. b. AGCM- Arithmetic Geometric Curve Method In this method the rate of increase in the projected values is constant; however, the amount of change keeps on increasing.

c. SPPM- Statistical Parabolic Projection Method In this method, the change in the predicted values may be increasing or decreasing while the percentage change of the values for the prior year may also be increasing or decreasing.

d. SGCM- Statistical Geometric Curve Method Also known as SEMI-LOG method, wherein the change in the projected values is constant while the amount or magnitude of change keeps on compounding. e. SSLM- Statistical Straight Line Method In this method, the change in the figure is uniform, while the change as a percentage of the data for the prior year is decreasing.

The method with the least standard deviation was statistical geometric curve method for the supply, arithmetic geometric curve method for the demand and arithmetic straight-line method for the price. The projected values are as follows:

Table 3.10 Projected Demand Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Yactual 24,615,406.99 25,429,790.23 26,271,116.77 27,140,278.01 28,038,194.82 28,965,818.57 29,924,132.10 30,914,150.74 31,936,923.45 32,993,533.87 34,085,101.50 35,212,782.86 36,377,772.76 37,581,305.52 38,824,656.31

Table 3.11 Projected Supply Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Yactual 9,440,185 9,430,989 9,421,802 9,412,624 9,403,455 9,394,295 9,385,144 9,376,002 9,366,868 9,357,744 9,348,628 9,339,521 9,330,424 9,321,335 9,312,255

MARKET DESCRIPTION The companys product, glacial acetic acid, is used mainly for the production of ethyl acetate, vinyl acetate monomer, a raw material that is used for producing paints, and n-butyl acetate. In the Philippines, according to the data presented, ethyl acetate, vinyl acetate monomer and n-butyl acetate were the largest in terms of its quantity on its import and export data. In line with that, the company will be focusing on the 3 main markets for the company to attain its profitability. THE MAIN TARGET MARKET About Ethyl Acetate Ethyl acetate is a colorless liquid with a fruity odor. It is slightly soluble in water and soluble in most organic solvents, such as alcohol, acetone, ether and chloroform. Uses Ethyl acetate is one of the most popular solvents and finds use widely in the manufacture of nitrocellulose lacquers, varnishes and thinners. It exhibits high dilution ratios with both aromatic and aliphatic diluents and also is the least toxic of industrial organic solvents. In the pharmaceutical industry, ethyl acetate is an important component in extractants for the concentration and purification of antibiotics. It is also used as an intermediate in the manufacture of various drugs. Ethyl acetate finds general use in the preparation of synthetic fruit essences, flavors and perfumes. Significant quantities of ethyl acetate are used in the manufacture of flexible packaging and in the manufacture of polyester films. It is also used in the treatment of aluminum foils. Ethyl acetate is used in the manufacture of adhesives, cleaning fluids, inks, nail-polish removers and silk, coated papers, explosives, artificial leather, photographic films & plates. Ethyl Acetate Industry In the Philippines, there are no manufacturers of ethyl acetate. However, there are logistics companies that offer importation of ethyl acetate. Therefore, acetic acid will consider on distributors that offers the same services as the company has.

About Vinyl Acetate Monomer Vinyl acetate monomer is a colorless liquid with a low flash point. It has a characteristic odor. Vinyl acetate monomer is soluble in most organic solvents including chlorinated solvents, but is not soluble in water. Vinyl acetate monomer is easily polymerized with acrylate esters to produce polymers. It is inhibited with hydroquinone. VAM is produced by reacting ethylene with acetic acid and oxygen in the vapor phase using a catalyst. A simplified reaction equation appears below. Uses Vinyl acetate monomer is a chemical building block used for a wide variety of industrial and consumer products. Polyvinyl acetate is used to produce paints, adhesives, coatings for flexible substrates and sizing for polyester fiberfill insulation textiles. Polyvinyl alcohol can be used to produce adhesives, coatings and water soluble packaging films. Polyvinyl acetals are used to produce insulation for magnetic wire, interlayers for safety glass, wash primers and coatings. Ethylene vinyl acetate copolymers are used to produce flexible films, coatings, adhesives, moldings and insulation. Ethylene vinyl alcohol can be used to produce gas barrier layers in coextruded packaging. Vinyl Acetate Monomer Industry

About n-Butyl Acetate n-Butyl acetate is a clear, moderately volatile liquid with a characteristic ester odour. It is miscible with all conventional solvents such as alcohols, ketones, aldehydes, ethers, glycols, glycol ethers, aromatic hydrocarbons and aliphatic hydrocarbons. Its solubility in water is limited. Uses n-Butyl acetate is an important solvent in the paints industry on account of its versatility. It is an excellent solvent for cellulose nitrate, resins and polymers and for oils and fats. Its moderate volatility and its resistance to blushing and levelling problems such as orange peel effects make it possible for paints with excellent levelling and gloss to be formulated. n-Butyl acetate is often employed in combination with nbutanol in paints, because n-butanol enhances the resistance to blushing and increases the solvency in many cases. n-Butanol cannot be used in paint systems that have to be free of hydroxyl groups, such as

isocyanate paints. Because of its low water absorption, its high resistance to hydrolysis and its high solvency, n-butyl acetate can also be employed as an extractant in the manufacture of pharmaceutical preparations and as an ingredient of cleaners, essences and fragrances. n-Butyl Acetate Industry

Ethyl Acetate Manufacturing Companies in the Philippines This is the list of some Ethyl acetate manufacturing companies in the Philippines Vinyl Acetate Monomer Manufacturing Companies in the Philippines This is the list of some Vinyl acetate monomer manufacturing companies in the Philippines n-Butyl Acetate Manufacturing Companies in the Philippines This is the list of some n-Butyl acetate manufacturing companies in the Philippines

PRODUCT QUALITY 1. Glacial Acetic Acid 2. Purity : 99.95% 3. Grade : Industrial Grade Product Specification: Table 3.9 Specifications of Purified Terephthalic Acid APPEARANCE PURITY COLOR, HAZEN CRYSTALLISING POINT DENSITY NON-VOLATILE MATTER CHLORIDES SULFATES Fe HEAVY METALS ALDEHYDES FORMIC ACID DISTILLATION RANGE MOISTURE Clear liquid, free from matter in suspension 99.95% min 5 max 16.35 C min. 1.048 - 1.051 kg/l at 20C 0.003% max 1ppm max 1ppm max 0.5ppm max 5ppm max 5ppm max 0.05% max 117.5 - 118.5C 0.05% max

Applications: PTA is mainly used in the production of polyester products, including polyethylene terphthalate (PET), follows reaction with glycol, reagent for alkali in wool and an additive to poultry feeds. Solubility: Dissolving in hot grain alcohol, not dissolving in water, ether, glacial acetic acid and chloroform. Storage: Keep container closed when not in use, Store in a cool, dry, well-ventilated area away from strong oxidizing substances. Package: 25kg/bag or 1000kg/bag or as your requirements.

MARKET ENVIRONMENT Selling Price Study


Table 3.10 Historical Data of the Domestic and Import Price of Purified Terephtalic Acid

Year Import Price (Php) Domestic Price (Php) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: National Statistics Office; Data of Imports and Exports

COMPETITIVENESS OF THE PRODUCT Purified Terephthalic Acid, a resin produced by PetrePhil Inc. which is a raw material for making PET bottles, is very competitive to the market due to the main reason that PetrePhil Inc. is the first company to produce this certain product. Having a higher demand of PET bottles in the country means a higher demand for its raw materials, particularly PTA which will also mean a higher market price. Because of these reasons, the companys PTA product has an advantage in the local market.

METHODS OF TRANSPORTATION OF THE PRODUCT PetrePhil Inc. deals using land transportation suitable for companies located in Luzon Area. Since the company is located near the port, maritime transportation is also a means for delivering goods to companies in Visayas and Mindanao. And also maritime transportation is accessible for international orders. Free delivery is given to customers ordering large quantities of the product which is located near the plant. Delivery fee may vary depending on the distance to the customers. CHANNELS OF DISTRIBUTION Terephthalic acid is a producers good. And like most product of this kind, direct distribution system is used. This will reach the market directly without any intermediates. The advantages of direct channel method of distribution are simple and fast in terms of distribution, economical, and full control over the distribution. Since the product is a large scale distribution material, it is going to distribute directly to the companies demanding PTA for their products such as PET bottles, insulators and plastic wares. GENERAL TRADE PRACTICES Tariffs: The tariff amount that given to a company is depending to the items it will produce. If the material or product is not locally produced generally it has low tariffs of about zero to five per cent, while locally produced intermediate products and raw materials are given the amount of three to ten per cent tariffs. And for those materials or finish products that compete with other goods, face higher tariffs of fifteen to thirty per cent. Since PetrePhil Inc. is categorized as locally produce intermediate products, the company will have a tariff amount of three to ten per cent.

Import licenses: PetrePhil Inc. will acquire its licenses to the Department of Trade and Industries. This government agency will help the company for its import procedures of chemicals that are very important to the manufacturing of Terephthalic acid. Excise tax: The discriminatory aspects of the Philippines excise tax system have raised the concerns of U.S. producers of automobiles and distilled spirits. Products made from materials that are very much available excise taxes on distilled spirits impose a lower tax on products made from materials that are very much available (e.g., coconut, palm, sugar cane). Automobile vehicles excise tax treatments are based on engine displacement, rather than vehicle value. Standards, Testing, Labeling and Certification: The importation of products covered by mandatory Philippine national standards must be cleared by the Bureau of Product Standards (BPS). Requirements for labelling in the Philippines apply to different types of products; this includes pharmaceuticals, food, textiles and certain industrial goods. The generic name of a pharmaceutical product should appear above its brand name on all packaging as mandated by the Generics Act of 1998. Incentives and Export Requirements: To engage in a pioneer activity to qualify for incentives administered by the governments Board of Investment (BOI), foreign owned firms should produce for the domestic market. The BOI imposes a higher export performance requirement for foreign-owned enterprises for exporters, which are 70 per cent of production, should be exported, while Philippine-controlled companies only 50 per cent. Although, there is an exception of foreign-controlled firms that export 100 per cent of production, who seek incentives from the BOI must commit to divest 40 per cent ownership within 30 years or such longer period that the BOI may allow. Government Procurement Practices: Philippine controlled firms should service locally-funded government consulting requirements as a general rule. The Philippines is not a signatory of the WTO Government Procurement Agreement. Customs Procedures: The Company will follow the customs rules and procedure of shipping in terms of filing import entries that will process in the Automated Customs Operating System (ACOS). This kind of computer system will classify the shipments if it is low-risk, moderate risk or high risk products. Export Subsidies Policies: Firms engaging in activities under the governments Investment Priorities Plan may register with the Board of Investments for fiscal incentives. This is composed of three to six year

income tax holidays and a tax deduction equivalent to 50 percent of the wages of direct-hire workers for the first five years from the time of registration. Firms in less developed areas may be eligible to claim a tax deduction of up to 100 percent of outlays for infrastructure works and 100 percent of incremental labor expenses also for the first five years of registration. For export-oriented firms that are developed in government-designated export zones and industrial estates which are registered with the Philippine Economic Zone Authority have the same incentives as BOI-registered firms. This includes a longer income tax holiday of four years up to an extendable maximum of eight years. A five percent tax on gross income in lieu of all national and local taxes will be applied after the Income Tax Holiday period. Firms that earn at least 50 percent of their revenues from their exports may register for certain tax credits under the Export Development Act, including a tax credit based on incremental export revenues. Worker Rights: Private and public employees have the right to form and join labor unions. The aspects of the public sector organization law restrict and discourage organizing, even if this right is exercised and practiced.

PROPOSED MARKETING PROGRAM The marketing program plan includes specific actions for each part of the marketing strategy. It identifies strategies for conducting market research, target market, analyzing the competition, promoting the product and setting the pricing strategy. It also defines the customer groups, their needs and the technology required to meet those needs. The market program plays an important role in the company. It serves as a basis in the market study and be able to determine the success of the project. To yield a good market share, strong marketing program is necessary to be able to have a feasibility rating from the market standpoint, even if there is an absence in the storage of the supply. During the first year of operation, PetrePhil, Incorporated shall cater to the enterprise that it has established during the pre-operating period. The markets are primarily on the frequently used Purified Terephthalic acid through a beginning price that is competitively acceptable. PetrePhil will employ the most competent sales age vent that will persuade the customers and a total environment friendly economy.

Moreover, the companys sales and advertising will establish rapport with the existing marketing firms that will aide in the distribution of its product. They will be given special contracts from which it will differ them less consuming clients.

INDUSTRY PRACTICES Good service is the lifeblood of any business. The company will form a relationship with the customers a relationship that individual customer feels that they would like to pursue. The customers will be given a guarantee that the product they buy will be in the best quality. All plant activities, from the collection of raw materials down to the monitoring of processes to characterization of finished products and distribution to respected target markets, are strictly ensured by the company. The company will also execute free delivery of the product under some conditions. A reasonable charge for the transportation will be implied to the company that is very far from our point areas.

PREPOSITION PetrePhil Incorporated is guided by the principle BEST QUALITY IS OUR PRIORITY. Just like what the principle of the company is talking about, we are assuring you of our excellence in all aspects-products specifications, customer service, timely delivery and in our dedication to the business.

PRODUCT A product can be viewed as the satisfactions that add to the owner of the product from the possession or use. Here comes the first Purified Terephthalic Acid locally produced by PetrePhil Incorporated. The company desires to satisfy the primary considerations of every customer that include aesthetic qualities, convenience in use, and economic status. The main link of the company is connecting with the consuming public. Our company pleasures the greatest opportunity to stimulate demand through our product.

PetrePhil Incorporated does not sell its product to household consumers. For the reason that Purified terephthalic acid is used primarily as a raw material in industrial operations that manufacture polyester products. Purified Terephthalic Acid, in turn, is used in products including polyethylene terephthalate (PET), follows reaction with glycol, reagent for alkali in wool and an additive to poultry feeds.

PACKAGING Purified Terephthalic Acid (PTA) will be presented to consumers in white package woven bag. The said bag will be labeled with a laminated print that contains the PetrePhil, Incorporated company logo as suppliers name, the products properties, its unit price and Republic of the Philippines as the country of origin. The packaging of our product will include the safety precautions in handling the product and other important reminders about its usage placed at the back of the woven bag. To further ensure the satisfaction of the consumers, there will be another label that reminds them to not accept if the seal of the packaging is broken or tampered.

Purified Terephthalic Acid C6H4(COOH)2


Best quality is our priority.

P 67.00
Made in the Philippines

Figure 3.2 Tag Price of Purified Terephthalic Acid

Best quality is our priority.

Tag Price of the Product

PTA

Purified Terephthalic Acid

Figure 3.1 Packaging of PetrePhil Inc. Purified Terephthalic Acid

HEALTH HAZARD Hazardous

FIRE HAZARD
Flash point: 260 C (500 F)

-Skin Contact -Eye Contact

1 2 E 0

Auto Ignition Temperature: 495 C (923 F)

Personal Protection

REACTIVITY

Stable

Figure 3.3 Safety Reminders about the product

PRICE The price of Purified Terephthalic Acid will be based largely on the existing price commercially used PTA market. It will also depend on the cost of production and distribution of the product as determined by availability of raw materials, modern technology, labor cost and others. However, the company will gradually increase the price into a more competitive value when it has established a strong position in the market.

PLACE Batangas offers one of the best locations in the Philippines. The attraction of Batangas for the foreign and local investors and tourists lies in its abundant and attractive natural resources: full of skilled manpower resources: infrastructure facilities/amenities such as power, water, communications, expressways/road networks and international port; and an existing services and joint backing and cooperation by the private sector and non-government organization. Batangas is near the two ports where convenient and past transportation is possible thus giving a more profitable expense for handling and transporting not only the raw materials but also the sales of finish products. In case that the consumer is distant to the production plant, they are allowed to place their orders or transactions in our office at Makati City for their convenience. PROMOTION Large portion of the marketing efforts of the sales and marketing division of the company will be concentrated on the introduction of the product Purified Terephthalic Acid made in the Philippines. Thus, PetrePhil, Incorporated will be employing a direct-sales-meeting method, or a plant visit in the production site in promoting the product, providing brochures and other promotional materials after a brief discussion of the benefits that they will acquire on using the companys product. Samples will be provided if, allowing them, as they wish, to perform laboratory test to check the quality of the product and compare it with existing ones in the market. One of the most effective ways to attract the consumers attention is through advertisements. High profile strategies will encourage consumers to patronize the product. Another of the effective ways of presenting the product is through sending a direct mail to our prospective consumers. Online commerce will also be used through the internet; they can also be advertised on the business section of leading newspapers as well as prestigious magazines such as the Chemical Engineering Magazines.