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COMPANY BACKGROUND

TreeHugger is a brand by Fernbelly Incorporated. The company was started in 2007 as part of a thesis requirement for the course of Business Management with a Minor in Enterprise Development at the Ateneo De Manila. Fernbelly Inc. began in the food industry and put up stalls in malls, schools and call centers. Afterwards it expanded the business to providing general merchandise to large corporations. After two years the humble venture has grown to an organization that has worked with numerous local and international media corporations, petroleum corporations, schools and even manning agencies by providing corporate giveaways. In early 2009, they ventured into the retail sector by providing Ateneo de Manila University and De La Salle University with LED-enhanced Message Fans while donating a portion of the sales to each schools respective scholarship funds. By the end of 2009, Fernbelly Inc. became suppliers for the Global Peace Festival and the Global Peace Convention and became a part of the GPFs drive to raise funds for world peace and the Education of the youth in Mindanao. From Here, Fernbelly Inc. has found its calling of balancing financial and purpose-driven concerns in all its business ventures. In 2010, TreeHugger was born. The TreeHugger line is comprised of quality pens and highlighters, made out of recycled cartons and biodegradable, corn-based plastic, and pencils, made out of perma-bound recycled newspapers. They are available at your favorite bookstores at the same price range as every other pen and pencil, which makes the product all the more attractive since most eco-products are sold at a premium price range. Through Haribon Foundation, every pen and pencil you buy not only decreases plastic wastes and saves trees through the use of recycled paper and biodegradable materials, they also contribute to the reforestation of our country through the Give a Gift Tree Drive. TreeHugger products are based on an idea for a Nationwide Environmental Movement anchored on awareness. The goal is very simple: Give people the power to make an improvement on our environment, while maintaining absolutely 100% of the convenience of their daily lives.

TREEHUGGER PRODUCTS
THE TREEHUGGER PEN The TreeHugger Pen is a retract-action ball pen made almost entirely of recycled or biodegradable material. The barrel is made from recycled carton, while the peripheral parts are made from PLA corn plastic. The TreeHugger Pen is available in black, blue and red colors. Blending environmental sustainability with product quality, the TreeHugger pen is made through manufacturing standards of a superior caliber.

THE TREEHUGGER "I WAS A NEWSPAPER" PENCIL The TreeHugger "I Was A Newspaper" Pencil is made from permabound newspapers from all over the world. Manufactured, using a specialized perma-binding process, each pencil made up of a newspaper page permanently wrapped around a stick of highquality graphite. This means, you can still read the articles on the newspapers used to manufacture the pencil! Each pencil is topped off with a highquality eraser top.

THE TREEHUGGER 2-IN-1 HIGHLIGHTER PEN The TreeHugger 2-in-1 Highlighter Pen is a double-sided highlighter stick equipped with a ball-point pen on the opposite end. Like the TreeHugger Pen, it is made almost entirely of recycled or biodegradable material. The barrel is made from recycled carton, while the peripheral parts are made from PLA corn plastic. The highlighter comes in both green and yellow colors, while the ball point end comes in standard black. Blending environmental sustainability with product quality, the TreeHugger pen is made through manufacturing standards of a superior caliber.

Finally, each product sold contributes to the reforestation of the Philippine forests through Haribon Foundation's Give a Gift Tree drive. 2

SITUATION ANALYSIS
CURRENT MARKET SITUATION TRENDS In 2012, writing instruments is expected to record a relatively slow volume growth of 2%, just slightly slower compared to the volume increase in 2011. Much of the slowdown is attributed to the rise in computer use, although sales are buoyed on the other end by the governments move to require kindergarten attendance beginning in 2010. Whereas kindergarten attendance used to be optional, the Department of Education (DepEd) has issued a regulation making kindergarten a required school programme. In 2011, the DepEd released funds for public pre-schools earlier than required, as a show of support for the new regulation, and has also moved to make the age of entry for first grade one year earlier, at six years old. This will allow writing instruments to exhibit only a slight decline in growth rate. COMPETITIVE LANDSCAPE Throughout the review period, multinational brands have remained the dominant figures in writing instruments in the country. In fact, the only local manufacturers that have made a mark in writing instruments are Amalgamated Specialties Corp and National Bookstore Inc, which produces its own private labels NBS Basics and Bestbuy. These private label lines mostly focus on offering a low-priced portfolio of writing instruments, leveraging on the strong position of National Bookstore as a top stationers/office supply store chain across the country. PROSPECTS Writing instruments is expected to post a CAGR of 2% in volume terms and 4% in constant value terms. Whilst these figures are relatively slow, industry sources agree that dynamic shifts within different categories will be the main drivers of growth for the category. http://www.euromonitor.com/writing-instruments-in-the-philippines/report MARKET SHARE Treehugger target Share 4%

Stabilo 7% Bic 8%

HBW 2000 25%

Lotus 14% Panda 757-RP 23% Faber-Castel LV-5 19%

SWOT ANALYSIS

STRENGTHS 1. 2. 3. 4. Uniqueness and creativity of the product. Has a competitive quality. Advocate of making eco-friendly products. Consumers understand the climate crisis and are willing to influence the behavior of businesses through their purchasing habits. 5. The use of these products and their production don't damage the environment.

WEAKNESSES 1. Lack of brand awareness from their target market. 2. Not properly displayed. 3. In many cases, the products are more expensive than other regular (non-ecofriendly) products which can discourage some shoppers from purchasing them.

OPPORTUNITIES 1. People start to become more concerned with the environment. 2. Eco- friendly products is one of the new trends in the market. 3. Changing consumer preferences. 4. Market demands for cleaner and greener environments and products.

THREATS 1. Increasing number of small manufacturers of eco-friendly products. 2. Business rivals are becoming more competitive and aggressive. 3. Constant increase in number of competitors in a growing market.

CONSUMER INSIGHT

What I like about eco- friendly pens: For a good cause 95% Earth friendly (Sort of) cheap Light weight Quality ink -katiepenny.blogspot.com SUNDAY, MAY 15, 2011

I remember a priest once tell me that a good pen is Always something one should have at the ready - And not just one pen, but one in every pocket! -http://www.environmentphilippines.com MONDAY, OCTOBER 17, 2011

Im looking for the perfect partner for my future BDJ. Im in a mood for eco-friendly pens. What makes them so very special is that they are super friendly and caring to the environment.

http://luckycitrine.blogspot.com TUESDAY, OCTOBER 11, 2011

COMPETITORS ANALYSIS
DIRECT COMPETITOR COMPETITORS STRENGTHS 1. Low-cost product 2. Manufacturers brand 3. Materials used are fully biodegradable and not harmful to the environment WEAKNESSES 1. Poor quality of products 2. Super plain packaging 3. Have a tendency to be less functional than their conventional counterparts

NBS Eco-friendly Pens

Small Manufacturer of Eco-Friendly Pens

1. Low-cost production 2. Available in bulk-orders 3. Uniqueness of the product

1. Poor quality of products 2. Has no brand identity 3. Tend to be less functional than their conventional counterparts

INDIRECT COMPETITOR COMPETITORS STRENGTHS WEAKNESSES

Faber Castell

1. Consistent quality of the product 2. Brand Awareness 3. Attractive and eyecatching packaging of the pen

1. Not an eco-friendly product 2. Delicate tint- becomes blotted when pen is dropped

Pilot

1. Fine quality of the ink 2. Prestige that the customers feel when using the product 3. Have loyal users

1. High cost of the product 2. Delicate tint- becomes blotted when pen is dropped 3. Not an eco-friendly product

MARKETING OBJECTIVES
1. 2. 3. 4. To increase brand awareness of the product. To increase market sales. To strengthen further their advocacy of saving the environment. To improve existing products to a quality that will satisfy more customers through offering a product that suits their preferences. 5. To offer the market a different experience using eco-friendly products.

TARGET MARKET
PRIMARY TARGET MARKET The youth, aged 10-19 years old, especially students in the 4th grade of the primary level where kids are starting to develop a mindset. Environmental Advocates, who eagerly supports products and activities concerning the environment SECONDARY TARGET MARKET Professionals specifically office employees who basically use pens to accomplish their works.

The target market of the product belongs to the following social class: SOCIAL CLASS DESCRIPTION Considered as the working rich. They made up the 10 % of the population. Some of them are credit card holders. They can be impulsive buyers. They purchase product regardless of the price.

1. Class B

2. Class C

They belong to the Working Class They are the largest group, for they made up 40% of the population. They are practical buyers. They purchase product that has quality.

3. Class D

Blue Collared Workers They made up the 25% of the population They buy only what they need. Price conscious.

POSITIONING
The whole idea is that when the brand TreeHugger is mentioned two things will come to peoples mind, overflowing creativity and nature. A brand that promotes freedom of expression that people are most familiar of, which is doodling .Adding doodles in the packaging aims to promote the idea of unleashing creativity, at the same time contributing in the improvement of the environment through the purchasing of the product. Furthermore, it shall instill in the mind of the public the importance being responsible and taking part in even small activities that would cater them the said benefits,

MARKETING PROGRAM AND STRATEGIES


PRODUCT
The current TreeHugger products are made out of recycled materials. The TreeHugger ball pens and highlighters are made out of recycled cartons and biodegradable, corn-based plastic. Now, this plan will be concentrating in the development in the packaging of TreeHugger pens, namely the Gelfriend and 2-in1 Highlighters. The corn-based plastic, located in both end of the pen, comes in different colors: black, blue, yellow and red. The barrel, which is made out of recycled cartons, where the TreeHugger logo is also placed, comes only in plain design.

PRODUCT PACKAGING

DOODLE
Doodle is the art or act of making shapes, forms or pictures by creating random scribbles of lines. When we were younger, we use to draw things that come in different shapes and sizes. The idea of adding doodles in the packaging aims to promote the idea of unleashing our creativity, at the same time contributing in the improvement of the environment through the purchasing of the product. The launching of the new themes for the products aims, not only to support their Earthly advocacy, but promote the freedom of expression in a positive way by expressing what they truly feel that will also be beneficial to everyone. The plain old packaging will be substituted by different doodle theme lay-outs that endorse different point of views towards life and the environment. The doodle will vary according to what theme you chose to support. The following will be the Front Liner Themes for the product: Love Peace Nature Music

Additional themes will be added, laid-out particularly, to match the incoming events of the year. These will be called Seasonal Themes. New Year (January) Valentine theme (February) Graduation( March and April) Summer (May and June) Freedom/ Independence (June) Halloween Theme(November) Christmas( December)

PRODUCT LAY-OUTS
PRODUCT SIZE

1 Inch

3.9 Inches

FRONT-LINER THEMES

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SEASONAL THEMES

The caps will also being improved. An addition of logo of the TreeHugger in the stem of the caps will be applied illustrating a man hugging a tree trunk.

The idea of imitating a man hugging the tree in the logo is to directly send to the public the advocacy the TreeHugger has which is, to protect the environment and defend it against pollution and other environmental destruction.

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TreeHugger products that are being sold in the market are placed in a display rack as we can see in the illustration. Display racks are made to protect the product that re being display in the shelf and for the people to easily recognized and purchased the product.

The problem with the current display stand is that when the stand is about to be emptied, pens started to cluttered and scattered unless a merchandiser timely check products and rearrange it.

The proposal of a new design for the display stand is suggested. The new lay- out aims to catch the attention of the market with its new lay-out and motivates them even more to buy and patronize the product.

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A divider with holes in it was added to prevent them from being slacked when the rack is close to being empty and to sort out the pens according to its theme. The Front Liner Themed pens will be placed in three lots, each having their respective concept. The remaining lot slot will be for the Seasonal themed pens.

The design was inspired by their advocacy of saving the trees. The display stand was decorated resembling a tree to represent its purpose to others and to the world.

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Pricing Strategy

TreeHugger products are currently being sold at the following price range: TreeHugger Pens Both Gelfriend and Retractable are being sold at Php 20.00 TreeHugger I Was A Newspaper Pencil Sold at Php 20.00/pack (5 Pieces/ pack) TreeHugger 2-in-1 Highlighter Purchased for only Php 30.00 In the regular time of selling, Value Marketing will be used where company attempts to gain the maximum impact by persuading them to purchase its product with a streamlined, cost-effective marketing approach. The products are being offered at the same price range as every other pen and pencil, which makes the product all the more attractive since most eco-products are sold at a premium price range. During the Sponsorship Projects, there will be a reduction in the price offered or simply saying cash discount.

Place or Distribution Channel

TreeHugger products are being sold in the following stores: National Bookstore PowerBooks Fully Booked Papemelrotti Office Warehouse

The following outlet let the product become easily purchased and locate by the market because of its numerous branches available nationwide. Through the following channels the product can directly be delivered to its end users.

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Marketing Communications

Earth Fest 2013 Sponsorship Program

Event Title: Earth Fest 2013: Sports War against Climate Change Date: April 7, 2013 (Sunday) Venue: Filinvest Corporate City, Alabang, Muntinlupa Main Objective: To create brand awareness and to strengthen their advocacy. Target Audience: Sports enthusiasts and Environmental Advocates from different organizations, clubs, and companies, who support their advocacy against climate change and restoration of the environment. The event was organized by Sonshine Media Network International (SMNI), together with its partner organizations, media affiliates and companies. This is a grand event to raise funds for Sonshine Philippines Movements 7 major environmental programs and initiatives that help fight the adverse effects of climate change today. The event will feature a Fun Run, a Bicycle Race, a Mountain Bike Event, a BMX Competition, a Street Dance Battle and a Concert Night where this years Environmental Heroes will be awarded and recognized. A grand sports and health bazaar will also be setup. This is to serve as the start-up of the overall Marketing program. TreeHugger will be one of the main sponsors of the event. Making a connection with other Environmental Groups and by becoming one of the sponsors of the event is one way to promote the product and at the same time being one with them in our advocacy that is to battle it out against climate change. The Mileage contains the following (P 150,000 - Minor Sponsor): Large logo at the backdrop Two times acknowledgement by the Event Hosts (per hour) Space for Booths Included in Press Conference Large logo in all Promotional streamers in strategic places in Manila like schools and campuses Large logo at the Start/Finish Ark Large logo at in EDSA (for 1 month before the event date) Medium-sized logo in the jersey, singlet and staff uniforms Logo at the official website, Facebook page, twitter and online invitations Medium-sized logo inclusion in all newspaper ads (Broadsheets and Tabloids) 15 pieces banners at the Event Area (3x9 vertical) Brand Specific Activities (Pakulo) Two times per hour TVC at the Video Wall (per hour) In cooperation with Acknowledgement in TV and Radio Plugs (2 months)

Inside events: 1. Booth- provided in the sponsorship agreement, where products can be displayed, and offered to the market. 16

Sales Promotional Plan TreeHugger Sponsorship Promo The TreeHugger will conduct this promo only during sponsorship and chosen activities to motivate the market and to introduce them to those unfamiliar consumers. Promo Title: Make your Doodle Do Buy 2-Take 1 This is a Buy 2 Take 1 promo where the product is sold at a conditional rate. People can purchase products (GelFriend and Retractable only) for only Php 50.00. Sales Promo Mechanics: This promo is available to event participants who want to purchase the product during the event. This sales promotional plan is applicable only during sponsorship

2. Introduction of the mascot Treenie, the Tree A mascot will be introduced to the public. The mascot having a friendly face aims to further attract the mass especially its primary market, the kids.

Mural Painting

Event Title: Mural Painting: Celebrating Mother Earths Colorful Day Main Objective: To create brand awareness Target Audience: Participating Barangay Target Date: April 22, 2013 (Earth Day)

A beautification project will be launched on the chosen barangay. The mural aims to unleash the creativity of the market with the help of another eco-friendly product, Boysen KNOxOUT, a product of Boysen Paint Philippines, a revolutionary paint that converts noxious air pollutants into harmless substances in an environmentally safe process called photo catalysis. A mural painting is conducted to help them realize the value of a clean environment and pleasant surroundings. The participation of the barangay officials especially the SK Officials is recommended for them to serve as the role model of their community.

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Mural: Celebrating Mother Earths Colorful Day

Back to School Tour 2013

Event Title: Back to School Tour 2013: Make Your Doodle Do Target Date: In time with the Annual University General Orientation Target School and Universities: The following schools were chosen based on their student population, included in the list with the most number of students; and location, these are places were floods easily arises when heavy rain pours. University of Santo Tomas Polytechnic University of the Philippines University of the East

Objective: 1. To create brand awareness 2. To promote the product 3. To increase sales and profit Target Audience: Students from the said universities Yearly, universities held orientation to welcome their students for another year and orienting the newly enrolled students. This project aims to introduce the product to its original target market, the youth. Introducing to them in the most familiar way they know through the most common thing they use, which is ball pen. Making them realize 18

Inside Events: 1. Photo booth- students can take a picture with their friends and barkadas. To make it more memorable, they can also have a picture with Treenie, the Tree, making them feel a gain and letting them experience the things they used to do when they were a kid. 2. Booth- where products can be displayed, and offered to the students who want to purchase the product and be in one with the advocacy right away.

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PROMOTIONAL MATERIALS

VISUAL METHOD

1. Posters- to be posted during Campus tours and on the different store outlets, as well. Back to School Tour 2013: Make Your Doodle Do Poster lay-out

This will be the lay-put of the poster for Campus Tours. The poster is specifically design to be colorful to attract the market and to incline the feeling of fun and funky.

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TreeHugger Make Your Doodle Do Concept

2. Audio Visual Presentation- a viral video that will be posted on their social media sites such as YouTube, Facebook and Twitter.

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AUDIO METHOD

1. Radio Advertisement- to be aired on the following chosen radio stations These radio stations were chosen according to the type and number of listeners. Radio Ad Script Every ton of recycled of materials save two-point five cubic yards of landfill space Thirty-five percent of it are papers and eleven percent are plastics. If we can at least reuse thirty-five percent of it, we can do a greater help to the environment. TREEHUGGERSaving the world together. 90.7 Love Radio Magic 89.9 97.1 Barangay LS Monster Radio RX 93.1 Tambayan 101.9

SOCIAL MEDIA

Through the use of Social Networking Sites, this is now considered as an effective tool to promote. Activity updates will be posted on their accounts to further reach the market where public can access them anytime and anywhere they like.

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FACEBOOK PAGE

TWITER ACCOUNT

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FINANCIAL (BUDGET)
MARKETING COMMUNICATION Print Ads Inquirer Libre Page size o 7 cols. x 15 cm = Php 48,006.00/ week (Colored) o ( Monday to Friday) 2 months Php 384,048 Philippine Daily Inquirer Page Size o 4 x 30 cm = Php 32,928.00 (Colored) o ( Monday to Friday) 2 months Php 258,624 Radio Ads Over-all Selected Radio Station o 30 Seconds (twice a day) = Php 18,500 o Thrice a week ( 2 Months) Php 18, 500 x 24 days = Php 444,000 o Php 444,000 x 4 Radio Stations= Php 1,776,000 TOTAL MARKETING COMMUNICATION COST MARKETING PROGRAM Earth Fest 2013 Sponsorship Program Sponsorship Cost Php 150, 000 Mural Painting Food for Participants Php 250/person x 30 persons = Php 7500 Miscellaneous Fees Php 10 000 Back-to-School Tour Poster 2x 3 size Php 100/ piece x 30 pieces = Php 3000 Tarpaulin with Standee Php 350 x 15 pieces = Php 10 500 Booth Php 125 000(inclusive of electricity) Sound System Php 25 000 x 3 Events = Php 75 000 TOTAL MARKETING PROGRAM COST PHP 381 000.00 PHP 2,418,672.00

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PRODUCTION COST (based on the skin of the Prototype) Product Quota: 1 million pieces Duration: 6 months

Barrel Raw Materials Printing TOTAL Cap Raw materials Printing TOTAL 166 698 9261 175,959 Php 95,244 428,574 Php 523,818

TOTAL PRODUCTION COST

PHP 699,777.00

OVERALL TOTAL COST


Total Marketing Communication cost Total Marketing Program cost Total Production cost Php 2,418,672.00 381,000.00 699,777.00

TOTAL:

PHP 3,499,449.00

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