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Marketing Plan

ETNIKO MERCHANDISE Executive Summary

The business name “ETNIKO” was derived from the appeal and the brand image that the entrepreneurs wanted to impart to the customers. Native and indigenous material “talahib” or “wild sugarcane” (mostly found in barren lands and used mainly for grazing) coupled with the trending styles suited for the fashion statements of the college students, young professionals and

professionals will be made available to them. The business aimed to showcase indigenous materials in a luxurious light. Moreover, the demand for these raw materials will increase creating a win-win situation for the entrepreneur and the local communities of artisans and farmers. The Marketing plan explicitly emphasizes our ways of showcasing the public with our innovative products. As a start-up plan, Etniko will ensue on having giveaways being involved in sponsorships, giving an appeal through packaging and advertising and conferring special price-reduced packages The steps followed in the making if our products are thereby equipped in the Technical plan. Moreover, the time allotted for each steps are specified. Etniko merchandise has ventured into a partnership business whereby its advantages are being inexpensive to start on and with an ease of formation. The partners/owners will work hand in hand to attain stability of the business for the small span of five years from the origin. The financial aspects of Etniko portray an imminent growth and a relatively increasing impact into the bag/pouches- making industry. With the span of 5 years, Etniko has forecasted to be one of among the established firm in the business league.

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Marketing Plan

ETNIKO MERCHANDISE

Vision Consumers valuing the authentic experience of having a fashionable, environment-friendly and affordable bags, pouches, coin purses and eyeglass and pen holders ; enabling a profitable and sustainable industry for its growing market.

Mission To further discover ways that will underpin the industry’s ability to create and sustain authentic native products using this abundant but idle grass by:    Proving to the public the potentials of “talahib” in the creation of innovative and trendy products Building consumer recognition and appreciation of the unique impact of patronizing the indigenous products; Attaining a reputation for reliable supply of consistently high quality, fashionable, hippie and personalized, environment-friendly and affordable ladies stuffs

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MARKETING PLAN The Etniko Merchandise is a budding business made by six young entrepreneurs with a wit of introducing to the market a new approach of creating bags, pouches, coin purses,and pen& eyeglass holders. The products are made out of the “talahib” (Saccharum spontaneum Linn). Study showed S. spontaneum is a bulky material with lower extractives and lignin content and higher holocellulose content with a good response towards multistage bleaching sequence and a pulp of high brightness ceiling. With this research study from the International Journal of PharmTech Research, the entrepreneurs was in an open opportunity to venture into the business of unleashing the potentials of talahib in making products like bags, pouches, coin purses and the like. Thus, Etniko merchandise will reinvent the ladies stuffs’ experience by selling high quality, innovative products at a reasonable price, designing and making personalized designs on convenient locations, and providing industrybenchmark customer service. Moreover, our marketing focus, made explicitly in this plan, renew our vision on adding value to our target customers.

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Marketing Plan

ETNIKO MERCHANDISE

I. STRENGTHS MONEY

SWOT ANALYSIS

The capital needed for the production of the products is relatively small compared to the production of ladies stuffs (bags, pouches, coin purses, etc.) made out of leather or plastic materials. Since, talahib is an abundant and free grass which is seen in most barren lands, expenses are minimized in the production which will be reflected on the costs per items.

MATERIALS As stated, main raw materials are the abundant supply of “talahib” leaves. The plant inhabits open wastelands and undeveloped terrain and is of common occurrence in the Philippines. It grows from underground rootstocks. Talahib is a coarse, erect, perennial, bunch grass reaching a height of 2-4m. The leaves are harsh, long, and slender, 1/2 m in length and 6-5 mm in width. Other materials used are also easily available in the markets which include baking soda and bleaching solutions for the bleaching process therein for the purpose of whitening the fibers, and cassava starch. The easily available supply of materials in the environment (talahib) and in the market (other raw materials needed) made it as the strength of the business. Abundance in the raw materials would give the business with the lesser risk for their shortages, thus, the business would be in a continuous operation.

MACHINES The method of producing paper-like fabric out of the talahib fibers uses one simple machine (but is not limited to such) which is the blender. This is used in making the grass fibers became fine or be pulped. This would be considered as strength since the allotted machine and equipment expenses would be lesser.

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ETNIKO MERCHANDISE

METHODS The methods can be easily followed which also form part of its strength. Saccharum spontaneum were gathered and cut into strips of two inches long using scissors. The cut grass strips were then boiled in a pressure cooker containing 2 liters of water mixed with 230 grams of baking soda. The mixture was boiled for about 30 minutes to an hour. Afterwards, the remaining liquid and the pressurized grass fibers were drained using the strainer. The tough parts of the grass fibers were removed. Then, these would then be further processed in a blender until the grass fibers became fine or pulped. Bleaching then follows. After this process, the grass fibers are mixed in a solution comprising of water and cassava starch. Having the fiber be agglutinated, it can now proceed to the step of making the exact fiber sheets through the use of plastic covers

MANPOWER Excellent staffs who are highly trained and very customer attentive: The fabric makers and sewers also get ample technical and training support from the Technical Education, Skills and Development Authority (TESDA), the

Departments of Trade and Industry (DTI) and Department of Science and Technology (DOST).

MANAGEMENT The workers would ensure that the items are carefully done. Quality control team members see to it that the items are free from defects so that these will not be returned by the prospected customers.

MOMENT (time) The first-mover scheme is attained as the entrepreneurs would be the first to offer such unique products made out of “talahib” in Nueva Ecija. One thing crucial here is the emergence of imitators, so Etniko merchandise should also
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the expenses allotted to these will cover a greater portion. the business should be critical in hiring enough workers to prevent sacrificing the quality of products due to insufficient people to handle the operation and to hinder idle hours of overly employed business. holders and the like. pouches. WEAKNESS MANPOWER The production of the finished products is labor-intensive which comprises two major processes: (1) extraction of the fiber from the talahib and (2) the actual sewing of the talahib fabric into products like bags. Thus. one of the elements of culture is the degree of education. Education levels. by instilling the customers the appeal of appreciating Filipino products ahead of some state-sides articles may induce them to buy native products. Education can transmit cultural ideas or be used for change. ideas and attitudes as well as training in particular disciplines. OPPORTUNITIES SOCIO-CULTURAL Nationalism is a cultural trait which is increasingly surfacing. affect marketers in a number of ways: 6 . Education refers to the transmission of skills. the potential customers of Etniko products are expected to be relatively in greater number.Marketing Plan ETNIKO MERCHANDISE find ways on how to continually develop its product for a more sustainable business undertaking. Thus. With this present socio-cultural aspect of the country. or lack of it. Moreover. for example the local university can build up an economy's performance. Moreover. They would be more appreciative as to the native products produced from the creative minds of Filipino entrepreneurs.

PTRI also provides weaving technical assistance to clients who wish to weave indigenous materials. These are all available at the DOST-PTRI office. The Institute’s weaving experts skillfully create various patterns and intricate designs using different looms. textiles. TECHNOLOGY/ TECHNICAL Putting up a business will be easier if you have adequate technical skills and knowledge about the industry which you’re planning to invest in. Since the target market would be college students and professionals due to the location.Marketing Plan ETNIKO MERCHANDISE · advertising programs and labeling · conducting market research · complex products with instructions · support sources . etc. The development of native products out of talahib “wild sugar cane” materials is a potential technological breakthrough wherein a lot of agencies of the government are working for its furtherance in research and development. POLITICAL Communication and representation at political levels and authorities would possibly help the emerging industry of making products out of talahib. This is why attending business and livelihood training seminars is an important step which all entrepreneurs must consider. The Philippine Textile Research Institute of the Department of Science and Technology (PTRI-DOST) is more than willing to help the budding entrepreneurs by giving information on their business related to fabric. Aside from technology transfer services. The people 7 . advancing agencies etc.finance. the advertising programs and labeling which would be centered on the support towards the industry of eco-friendly products will be easily appreciated.

Marketing Plan ETNIKO MERCHANDISE on higher positions would be of great help if they use their authority in promoting native products made especially by Filipino entrepreneurs. These institutions maintain their respective mandates. budgets and planning timelines in crafting and implementing the MSME Development Plan. and development partners. among others. Small and Medium Enterprise (MSME) Development Plan which has identified climate change/green growth as one of the four emerging global themes that can greatly contribute to MSMEs’ competitiveness. and by producing goods and services that respond to the demand for “green products”. MSMEs will become more competitive by adopting “green growth” strategi es which leads to greater resource efficiency. These stakeholders include national and local government agencies. 8 . The government intervention in the form of programs the potentials of new business introduced by the entrepreneurs would be of big impact in its success. One of the programs is the 2011 ‐2016 Philippine Micro. GOVERNMENT PROGRAM The emerging industry of making talahib products by the young entrepreneurs would be better off since a lot of related government programs are available which would be useful to their start-up phase. private sector organizations. According to the plan. The Department of Science and Technology is an agency that is more proximate to the researches and development of the business. The Plan’s targets will be delivered through the synergy and cooperation among agencies involved in MSME development.

Nevertheless there are many ways to get around. taxis. There are number of successful business people that inspire Filipino citizen to open up a business.Marketing Plan ETNIKO MERCHANDISE THREATS ECONOMIC It would be a challenge on the part of the emerging business on how to withstand the not so stable economy of the country. inter-island travel via watercraft and aircraft (Philippine airlines and Cebu pacific are the most popular) are necessary. and tricycles are commonly available in major cities and towns. especially in urban areas. As an archipelago. as a brief report of the present economy that will affect the future expansion of the business. In the long run. NATURAL ENVIRONMENT Philippines is a country that places high value on business. Buses. Partly this is due to the mountainous terrain and the scattered geography of the islands. the impact of having a not-so good infrastructure would greatly affect the pricing of the products due to more costs allotted for transportation expenses. jeepneys. the transportation infrastructure in the country is relatively underdeveloped. when the business decided to go on wholesaling to different parts of the country. Train services are provided by three main railway networks that serve different areas of Metro Manila and parts of Luzon. Moreover. It must offer affordable goods to meet the purchasing capacity of most Filipinos especially on their target market. Their passion and dedication to pursue their dream and help the economy by risking their time and money to open up a new enterprise is the main 9 . but it is also the result of the government's persistent underinvestment in infrastructure.

Taking into consideration the business inclination of most Filipinos may pave away for more competitors in the market. particularly during the period 1960-1980 have consequently eliminated or destroyed populations/genotypes of plant genetic resources. 10 . big time business people are considered powerful and influential in the country. POPULATION TRENDS Massive land conversion and shifting cultivation due to the survival needs of an ever-increasing population brought about by urbanization and industrialization continuously occurs throughout the country affecting the natural habitats of many plant species. losing many of the wild varieties. Some development projects that rapidly change the land use of an area. Deforestation have contributed to erratic climate changes which in turn cause prolonged drought that change the vegetative composition of an area. The business should have set in the unique position in the market for it to be easily recognized by most customers.Marketing Plan ETNIKO MERCHANDISE reason why business people enjoy high social status in the country. Hence.

weaknesses. Easy to follow methods of production 6. Acceptance from the customers inclined in patronizing Filipino products 2.“green growth” 4. Availability of support structures such as government research stations. Training programs 10. Research and development 11. Labor-intensive production 2. Less capital requirement 2.Marketing Plan ETNIKO MERCHANDISE Summary of Analysis SWOT Analysis Drawing from the internal and external Analysis. Not so stable economy 2. STRENGTHS 1. Easily available raw materials 4. Entrepreneurs are new in the business venture THREATS 1. Competition with other indigenous weaved products 11 . extension and training institutions 5. Having written documents to guide operations OPPORTUNITIES 1. Capitalize the potentials of talahib in production of products 3. we can summarize Etniko’s strengths. Committed leadership (entrepreneurs) 12. Government programs tailored to entrepreneurs (2011-2016 Development Plan. opportunities and threats in the following SWOT Analysis. First-mover scheme 9. Developing technology on making products out of indigenous raw materials WEAKNESS 1. Low cost for raw materials needed 3. Highly trained staffs 7. Less cost for machineries 5. Quality control measures 8.

2. the labor-intensive endeavor of this business endeavor would also be labor-efficient for it will produce quality products made by fully trained and equipped personnel 12 .O4) Unleashing the full capabilities of workers Through training programs offered by the business through the help of the government. (S7. the entrepreneurs would advance on the research and development in order to further capitalize the potentials of talahib. indigenous. (S9. O1) Set a trend for quality.O3.Strength-Threat strategy WO strategy -Weakness-Opportunity strategy WT strategy -Weakness-Threat strategy SO Strategy 1.Strength-Opportunity strategy ST strategy . 3.Marketing Plan ETNIKO MERCHANDISE GENERATION OF OPTIONS TOWS Analysis Legend: SO strategy . environment friendly and affordable products Etniko merchandise would have quality control measures in order to ensure that they will offer the target customers with satisfaction— affordability and quality in every purchase. (S3. O2) Continually having researches and development in the potentials of talahib as a raw material in the production of indigenous products As part of the business’ strength. This would in turn weigh to the aim of providing quality products to the customers. S10.

T2) Appealing Advertisements The competition among other products using indigenous materials was already defined in the market. leadership (a strength) of entrepreneurs towards their ST Strategy 1. it’s a challenge for the business to give the buyers enough cause for what they purchase. This would then be accomplished through the committed endeavor. (W1. O4. 13 . (S14. O5) Continually find ways on how to improve the technology in the production of talahib products Government research stations and other agencies like the DOST (Department of Science and Technology) would be of good help in the entrepreneurs’ pursuit of developing new ways in order to make the production easier.S13. 2. Etniko will provide quality products at affordable prices to induce buyers in patronizing such products. the buying capacity of the customers would be affected. S7. Therefore.S12. so Etniko would invest on marketing tactics for it to be known by the public and thereby establish its name. WO Strategy 1. (S2. T1)Give the customers enough reasons to buy the product Since the economy of the country is not so stable.O5) Organized tasks as emanated by organized staffs The business venture wouldprovide documentations as to the process of the entire production which will serve as the basis for further developments in the future. (S11.Marketing Plan ETNIKO MERCHANDISE 4.

T2) Getting attentions from the public by providing UNIQUE products (through advertisements) Since the business would have its introduction in the market where competition has been established. (W1.O3) Entrepreneurs being proactive and optimistic The entrepreneurs would be using the Input-Process-Output framework as it initiates to get the most out of the INPUTS (e. get done the PROCESS and be forward-looking on the OUTPUT ( patronizing of products by the customers) WT Strategy 1.g. Government programs tailored to entrepreneurs). 2.T1)Further development of technology to hasten production The business is determined to device ways on how to improve the ways of production in order to further lessen the cost considering that the country is in not-so-good economy at present. Etniko would give a new approach to indigenous materials as talahib products are unique and new in the eyes of the consumers. O1. 14 . (W2. (W2.Marketing Plan ETNIKO MERCHANDISE 2.

Figure No.1: Etniko Products Etniko bags 15 . Fabric paints would be used in the making of designs. (2) Pouches and Coin Purses and (3) Eye glass and Pen Holders made out of the abundant raw material of talahib. b. The talahib finishes are then put into another process of incorporating it into bags. THE MARKETING MIX: THE PRODUCT a. The products would be personalized. The talahib fibers are extracted and bleached to create a somewhat fabriclike finish. The Product Etniko Merchandise will offer three product lines ranging from (1) Bags and Laptop/Netbook Cases. the entrepreneurs would offer the public with a catalog designs which may be attached to the stuffs upon request. fashionable and affordable talahib stuffs. Specification and Uses The merchandise would have a brand name of Etniko products which appeals to the use of indigenous and native raw materials just available in most untapped farm lands.Marketing Plan ETNIKO MERCHANDISE II. pouches and holders. To make it personalized. Prototypes of products are on the succeeding page.

Marketing Plan ETNIKO MERCHANDISE Etniko pouches Etniko’s different line of products 16 .

There would also be an appeal of being an eco-friendly buyer since they will be availing a non-plastic but a native product. abaca. Pouches and coin purses would be as trendy as it may and the customers would have a say on its added personalized designs. Bust most of these raw 17 . Pouches and Coin Purses: It is more often than not to see college students who have pouches or coin purses. Eyeglass and pen holders: The sling generation where wants of most hippies out there hails gave rise to the creation of these products. Etniko made products out of this whim. The bags and laptop/ netbook cases offered by Etniko would satisfy their need for cases of their things with an added value of fashion and trend. the use of native materials like water lily. for bags the maximum dimension would be 12 inches by 6 inches for laptop bags would be 14 inches by 10 inches. Then. Bags and Laptop/Netbook cases: The target market is focused on the college students and professionals who really assumed bags and cases as a need rather than a want. As much as possible they want it to be personalized and trendy while satisfying its uses of handling their pens and coins. The bags also use zippers for fastening. The sizes of the products vary from each product lines. These stuffs were even representation of themselves. c. Existing Market Situation In the Philippines. This would serve as a convenient holder for the most useful things usually brought by our target markets in their daily undertakings.Marketing Plan ETNIKO MERCHANDISE The products are made out of light-weight materials which comprise of the talahib finishes and the fabrics incorporated as its inner lining. The pouches and holders of eyeglass and pen have the sizes similar to those already in the market with a minimum of 3” by 4” dimension. pineapple fibers and the like are known since then.

Producers of handicraft bags and water lily bags which have established its market would comprise the indirect competitors of Etniko merchandise. The introduction face would be an advantage since the first-mover scheme was undertaken. And they will accomplish it by providing the best quality products. 18 . venturing into the business of talahib products is relatively new in the market. pouches and holders are in consistent and constant existence among most college students and professionals (our target market). f. the merchandise for talahib products is fresh in the industry. then Etniko realized this demand and shall provide products which will satisfy such. Then. the business would be focusing on the promotions and publicity of the specifications and valuable uses of their eco-friendly. Also. e. trendy and personalized talahib products. d. The demand was already there just waiting for a business to satisfy. So being new in the market signifies more profound efforts to introduce the product and then to sustain its production in the market.Marketing Plan ETNIKO MERCHANDISE materials are made into products through handicrafts. Quality The business believed that they shall target customer satisfaction in order to attain a position in the industry. Unmet Demand of the Market The growing demand for an affordable and trendy bags. Etniko merchandise shall prove that Etniko products can be at par or even may be exceeding with the existing lines of products introduced by the handicraft industry. the competitors would be from the indirect group. Competitors Since.

Quality control measures are taken into account. Thus.Marketing Plan ETNIKO MERCHANDISE The process from the extraction of talahib fibers up to the sewing of the products are meticulously done in order to get the best quality products out of it. Target Market Since this is an introductory business. Product with multiple attributes or appeal to the wise and practical customers would weigh most. the feeling of buying bags. the entrepreneurs planned to venture on retailing to the group of college students and professionals in Central Luzon State University specifically located at the old market. 19 . g. It spans to all students and professors which are expected to be mostly females. pouches. purses with a sort of satisfaction as to the trendy notion and eco-friendly idea is targeted to be attained. Our target market is more than willing to avail products which are practical to have.

Our products will be a range of personalized school or office stuffs as follows: Bags and Laptop/Netbook Cases Pouches and Coin Purses Eye glass and Pen Holders Sample Etniko Products 20 . MARKET RESEARCH a. Moreover. uniqueness and usefulness towards our customers. Product Intended to Offer We intend to make products that will portray durability.Marketing Plan ETNIKO MERCHANDISE III. benefits in terms of financial aspects and satisfaction standards are expected to be delivered.

1. students will be the primary market to be targeted. age and gender. They are now inclined to apply practicality in spending their allowances. girls have more inclination on buying school supplies and accessories. yet posh and functional. These consumer groups are further classified according to financial sources/income. They seek school stuffs that they think are affordable. more females are expected to buy the products. target age group will range from grade school (7-12 years old). Our products will be very accessible to these targeted customers since the main stall is to be located inside Central Luzon State University. high school (13-16 years old) and college (17-21 years old).Marketing Plan ETNIKO MERCHANDISE b. In relation with these previous findings. 21 . Target Customers The Etniko Merchandise specifically targets three different customer profiles. They are presumed to be primarily positioned on the low class range in terms of financial capability. The contemporary economic situations drive students to develop themselves into a rational being. they still have allowances as their financial source. Gender: According to the researches. Age: Since students will be served. Students – Since the products to be offered are school supplies. Financial Source: Although students do not usually have source of income.

Age: Customers from this group are generally ages 21 – 59 years old divided into: young professionals (21-39 years old) and adult professionals (40-59 years old). As sensible professionals. superior and useful.00. 22 . Teachers. high-quality and handy. as being income – earners. as compared to the males from the student consumer group. 3. they are having more financial liberty on buying things they need and want. Gender: Larger numbers of females are expected to buy the products. Science City of Muñoz. these costumers pursue office products that are within their means. These people typically already developed their rational self. Income: They have a monthly income range of P19. although they are usually financially stable. Office workers – people involved in office works are especially expected to buy office-related products.000. They are in the middle to upper level of social class. Thus. Instructors and Professors – Similar to students. are expected to buy in a larger percentage. they are assumed to be practical spenders. They are situated within Central Luzon State University. they are practical and prudent buyers. Science City of Muñoz.00 to P 80. 000. Like the previous consumer groups. However. these targeted customers also seek stuffs that they think are reasonably priced.Marketing Plan ETNIKO MERCHANDISE 2. But males from this group. These customers are located at Central Luzon State University.

On February. June and December. therefore target consumers especially students. c.00 and above and are in the middle to upper level class of society. Sales are projected to be high during the months of February. classes start at June. On the other hand. Productivity bonus. Frequency and Time or Season Customers Buy the Products Occurrences of purchase throughout the year are irregular. Furthermore.Marketing Plan ETNIKO MERCHANDISE Income: They have monthly income of about P18. Intended customers’ buying pattern will be at most every month. are expected to buy in a larger percentage. May. Quarterly bonus and the like are normally given this month which gives the consumer more buying power. bonuses like Christmas bonus. 000. 13th month pay. Gender: Larger numbers of females are expected to buy the products. But males from this group. Age: These customers are mostly in the ages 21 – 59 divided into young professionals (21-39 years old) and adult professionals (40-59 years old). the products are expected to be sold for gift giving purposes. are anticipated to buy school stuffs during May to June.\ 23 . The month of December is similarly expected to bring elevated sales since people during this month also tend to buy gifts for the Christmas season. as compared to the males from the student consumer group.

1: Product Prices Products (with one free word) Bags and Laptop/Netbook Cases Pouches and Coin purses Eyeglass and pencil holder Base Price 150 50 40 24 . Price Price is essentially a critical competitive factor.Marketing Plan ETNIKO MERCHANDISE d. Hence. A reasonable mark-up. we will use market penetration pricing strategy to attract customers and to foster our introductory customer relationship. without hurting the affordability of the products is direly needed. Our affordable prices will uphold our immediate goal of surviving in the industry as a new business. We aspire on establishing a large number of buyers and win significant market share. Our product prices will range as follows: Table No. However. it is relatively easier to realize this requirement. If we look into our targeted customers. Our primary customers which are students are practically price sensitive. So we ought to set fairly affordable prices with our product quality still higher than the price. pricing poses a crucial element on our business prosperity and survival. we compete on the quality and service in as much as we compete on prices. although a fraction of our target market may not care as much about price. In line with this. Nevertheless. since talahib grass is an economical source of raw materials.

several respondents were at first hesitant about the products. etc.Marketing Plan ETNIKO MERCHANDISE The customer is privileged to have one free word to be written on the product bought. School bags are also offered here but such products are not from native raw materials.Etniko Merchandise can therefore initiate its marketing strategies and acquire solid reputation within a shorter extent of time. Competitors The struggle to become one of the top personalized school and office material traders in Central Luzon State University is not too intense. necklaces. They picture the products as being rough and itchy since talahib grass was the main raw material used. On the other hand. talahib school and office products offered is inexistent in the market. colors and customizations. P15. and the like). in front of CLSU) which is selling native products such as earrings. sequence. Photos of the products were included in the questionnaire which enabled them to see the basic features such as the designs. Key competitors are not yet established with distinguishing business image and brand equity. f. e. fabric color drawing. Likewise. A direct competitor with exactly the same custom-made. Many were pleased on the innovative idea of creating talahib products with different colors because they were used on the traditional brown colors of items made from native or natural materials.00 will be added to the purchase price for every extra word the customer requested. Orange Milka – a shop in Marketing (outside. Most of the respondents retorted positively. additional P15.00 or above will be charged in case the customer requested additional designs (for instance. Customers’ Comment Etniko Merchandise conducted a survey in Central Luzon State University assessing the degree of potential customers’ perception towards the products to be offered. beads. 25 . can be considered as an indirect competitor. However.

Old market vendors offer a wider range of prices as compared to the native products shop in the Marketing. 2: Competitors’ Price Products Native products stole(@ Marketing) Other stores in Old Market 150-350 40-100 Not offered Not offered Not offered 200-350 30-100 Bag Pouch Sling pen/pencil holder Sling eyeglass holder Eyeglass Case Laptop Case Coin Purse 250-350 Not offered Not offered Not offered Not offered 250-350 200-350 Some of our competitors have lower and higher prices compared to us. Furthermore.Marketing Plan ETNIKO MERCHANDISE Other major indirect competitors are the school supplies vendors in the Old Market (inside CLSU). Competitors’ Price The table shows the prices our competitors charge for a similar product we offer Table No. Additionally. 26 . many products we offer are still unable in the market. both indirect competitors do not offer services to personalize or custom-made the products they offer. They offer school stuffs which are not made from any remarkably environmental and native materials. g.

If we know our 27 . We will give them 15% lower prices than our consumer selling price. Thus. we will expand our business horizon by delivering products and satisfactions to a wider market. b. After five years in the industry. business success has a high positive correlation with the feat of its promotional strategies. They are intended to visit our place to personally avail our products and services. Closeness to customers is one of the keys to success. How much the customers know about a product will be the one of the basis of its promising or disparaging market share. But the salaries will be shouldered by them. We want our customers to see us as a school and office shop that bears the seal of excellence and honesty. Based on their discretion. So. We yearn for a pleasant and friendly business image. allowing them up to 15% or more profit margins on our products. THE MARKETING MIX: PLACE AND PROMOTION a. we will be initially engaged in retailing activities. We contract CVC Department Store in San Jose City as our distributor. Promotion Promotion is the marketing process that motivates a customer to make a positive purchase decision (Encarta. We also want our customers to treat us not merely as a store but as friend.Marketing Plan ETNIKO MERCHANDISE IV. 2007). promotions must be signified and managed accordingly. Hence. provided we reached business stability and gained favorable market reputation. they may also want to offer services on personalizing (lettering) or designing the products in which case they may hire one of our artists. Channel of Distribution As a newly established business. We will sell products and services directly to our consumers.

We will make sponsorships on the prestige competitions in the campus like Mr. 28 . Mr. When they reach a certain amount. Lantern. Our promotional efforts will encompass a wide variety of techniques. CLSU. Every purchase means additional points. we are able not only on abiding by the current university law of not using plastics. we will give 15% discounts for every P200. It would then be easy for us to set product and service improvement. they can redeem products and giveaways. our promotional techniques will be: Special price-reduced packages – During the lean months. Giveaways – During the peak periods. Packaging – in addition to main purpose of packaging to hold and protect products. These simple gifts may include pens with the midsection draped with our processed talahib grass marked with our business name. we will employ an “earn-your-points” strategy. Paper price tags with our business logo and special inspiring maxims will be included to our packaging strategy. Customers with these points proved to have strong loyalty towards us. After moving towards stability. and the like. Most Beautiful Face. we know what they needed and what they wanted. Through this. we perceive its potentials as a good strategic element. but also on projecting an environment-friendly image towards our customers.Marketing Plan ETNIKO MERCHANDISE customers. Sponsorships – this will not be included in our promotional plan for the first years of our business. our business will then build up a much solid reputation. and Ms. From year after year. and Ms. bookmarks from processed talahib grass. We will use attractive paper bags as the packaging for our products. Our sponsorship is through giving our products as tokens or as special awards’ prize. as well as academic tournaments like Literary Musical Competitions among others.00 or above purchases.

Proposed Location Location plays a significant role in our business success. Our connections with acquaintances might be helpful in gaining loyal customers. More competitors mean more potential customers coming over our place. It will also be better for us to be near our competitors. Through these. It is also popular among students as the main shopping arcade in the university. We will see to it that we had given the best service possible. The stall will be built adjacent to “Flying Saucer House” cafeteria. 29 .Marketing Plan ETNIKO MERCHANDISE Advertising – We will advertise through flyers. our customers may relate to others their wonderful experience with our products and services. So we decided to look for a place with the following criteria: convenient. inexpensive. Our probability of getting the highest possible number of customers depends upon our location. We would be very warm. tarpaulins or posters and website. In addition. This location is nearby the infirmary and student dorms where our target customers stay. We will also use methods like word of mouth. It is on the right side when facing NATO Terminal. accommodating and generous to our customers. “Radyo CLSU” is also perceived to be an effective way of advertising. open and accessible. We strategically planned to rent a space inside the old market. near the entrance of the Old Market. we will use our network of friends. Customers come to places where there are many school and office stuffs stores because they wanted to have different options on where they will buy. c. We will always serve “with a smile”. So we will pursue on negotiating with them.

Marketing Plan ETNIKO MERCHANDISE Figure No. 2: Location Map 30 .

00 Packaging 150.00 Sales commissions to distributor will only be charged on the sixth year when business stability is already attained.00 250.100. 3: Selling Expenses Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Advertising (Posters.00 400.00 250.) 350.00 200.400.3) 150.00 Total Selling Expenses 800.00 400.200. Sponsorships @ yr.00 825.00 300. 31 .00 175.00 250.00 300.00 250.00 1. etc.00 1.00 Sales Promotions (Giveaways.00 350.00 1.00 350.00 150. flyers.00 Transportation Expenses 150.00 400.00 250.00 250.Marketing Plan ETNIKO MERCHANDISE Table No.

we intend on having CVC . San Jose City as distributor . The selling expenses are expected to have a substantial growth on the sixth year due to the diversification attempt of the business.Marketing Plan ETNIKO MERCHANDISE Graph 1: 5 year Selling Expenses Total Selling Expenses for Five Years 1400 1200 1000 800 600 400 200 0 1 2 3 Years 4 5 Total Selling Expenses The bar graph exhibits the gradual increase in total selling expenses for five years. On the said year. The sales commission will cause an abrupt upward push on the total selling expense. 32 .

Marketing Plan ETNIKO MERCHANDISE V. BAGS AND LAPTOP/NETBOOK CASES Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 1 Month Jan Feb 28 1 28 Mar 21 1 21 April 27 1 27 May 32 1 32 June 26 1 26 July 25 1 25 Aug 26 1 26 Sept 20 1 20 Oct 24 1 24 Nov 31 1 31 Dec 33 1 33 316 TOTAL n q Q 23 1 23 33 . Legend: n q Q THE MARKETING MIX: THE PRICE (SALES VOLUME) number of customers likely to buy the product average quantity purchased by a customer in a given period total demand of your product A.

Marketing Plan ETNIKO MERCHANDISE Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 2 Month Jan n q Q 26 1 26 Feb 32 1 32 Mar 24 1 24 April 31 1 31 May 37 1 37 June 30 1 30 July 29 1 29 Aug 30 1 30 Sept 23 1 23 Oct 28 1 28 Nov 36 1 36 Dec 38 1 38 363 TOTAL Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 3 Month Jan n q Q 30 1 30 Feb 37 1 37 Mar 28 1 28 April 36 1 36 May 42 1 42 June 34 1 34 July 33 1 33 Aug 34 1 34 Sept 26 1 26 Oct 32 1 32 Nov 41 1 41 Dec 44 1 44 418 TOTAL Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 4 Month Jan n q Q 35 1 35 Feb 43 1 43 Mar 32 1 32 April 41 1 41 May 49 1 49 June 40 1 40 July 38 1 38 Aug 40 1 40 Sept 30 1 30 Oct 37 1 37 Nov 47 1 47 Dec 50 1 50 481 TOTAL 34 .

Marketing Plan ETNIKO MERCHANDISE Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 5 Month Jan N Q Q 42 1 42 Feb 51 1 51 Mar 38 1 38 April 49 1 49 May 58 1 58 June 47 1 47 July 46 1 46 Aug 47 1 47 Sept 37 1 37 Oct 44 1 44 Nov 57 1 57 Dec 60 1 60 577 TOTAL B. POUCHES AND COIN PURSES Projected Monthly Sales Volume for Pouches and Coin Purses for Year 1 Month Jan N Q Q 42 1 42 Feb 50 1 50 Mar 41 1 41 April 47 1 47 May 52 1 52 June 52 1 52 July 41 1 41 Aug 39 1 39 Sept 38 1 38 Oct 42 1 42 Nov 45 1 45 Dec 55 1 55 544 TOTAL Projected Monthly Sales Volume for Pouches and Coin Purses for Year 2 Month Jan N Q Q 48 1 48 Feb 58 1 58 Mar 47 1 47 April 54 1 54 May 60 1 60 June 60 1 60 July 47 1 47 Aug 45 1 45 Sept 44 1 44 Oct 48 1 48 Nov 52 1 52 Dec 63 1 63 626 35 TOTAL .

Marketing Plan ETNIKO MERCHANDISE Projected Monthly Sales Volume for Pouches and Coin Purses for Year 3 Month Jan N Q Q 56 1 56 Feb 66 1 66 Mar 54 1 54 April 62 1 62 May 69 1 69 June 69 1 69 July 54 1 54 Aug 52 1 52 Sept 50 1 50 Oct 56 1 56 Nov 60 1 60 Dec 73 1 73 719 TOTAL Projected Monthly Sales Volume for Pouches and Coin Purses for Year 4 Month Jan N q Q 64 1 64 Feb 76 1 76 Mar 62 1 62 April 71 1 71 May 79 1 79 June 79 1 79 July 62 1 62 Aug 59 1 59 Sept 58 1 58 Oct 64 1 64 Nov 68 1 68 Dec 84 1 84 827 TOTAL Projected Monthly Sales Volume for Pouches and Coin Purses for Year 5 Month Jan n q Q 77 1 77 Feb 91 1 91 Mar 75 1 75 April 86 1 86 May 95 1 95 June 95 1 95 July 75 1 75 Aug 71 1 71 Sept 69 1 69 Oct 77 1 77 Nov 82 1 82 Dec 100 1 100 993 TOTAL 36 .

EYEGLASS AND PEN HOLDERS Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 1 Month Jan n q Q 48 1 48 Feb 51 1 51 Mar 49 1 49 April 53 1 53 May 65 1 65 June 55 1 55 July 47 1 47 Aug 52 1 52 Sept 48 1 48 Oct 45 1 45 Nov 59 1 59 Dec 67 1 67 639 TOTAL Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 2 Month Jan n q Q 55 1 55 Feb 59 1 59 Mar 56 1 56 April 61 1 61 May 75 1 75 June 63 1 63 July 54 1 54 Aug 60 1 60 Sept 55 1 55 Oct 52 1 52 Nov 68 1 68 Dec 77 1 77 735 TOTAL Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 3 Month Jan n q Q 63 1 63 Feb 67 1 67 Mar 65 1 65 April 70 1 70 May 86 1 86 June 73 1 73 July 62 1 62 Aug 69 1 69 Sept 63 1 63 Oct 60 1 60 Nov 78 1 78 Dec 89 1 89 845 37 TOTAL .Marketing Plan ETNIKO MERCHANDISE C.

Marketing Plan ETNIKO MERCHANDISE Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 4 Month Jan n q Q 73 1 73 Feb 78 1 78 Mar 75 1 75 April 81 1 81 May 99 1 99 June 84 1 84 July 71 1 71 Aug 79 1 79 Sept 73 1 73 Oct 68 1 68 Nov 90 1 90 Dec 102 1 102 972 TOTAL Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 5 Month Jan n q Q 88 1 88 Feb 93 1 93 Mar 89 1 89 April 97 1 97 May 119 1 119 June 100 1 100 July 86 1 86 Aug 95 1 95 Sept 88 1 88 Oct 82 1 82 Nov 108 1 108 Dec 122 1 122 1166 TOTAL 38 .

The succeeding pages give the graphical representation of the table above. 39 .Marketing Plan ETNIKO MERCHANDISE The above table is the summary of the planned sales volume for the span of 5 years.

and December for the following reasons: During Februaries: This is a month of the hearts. During Mays and Junes: These are the months were the one of the target customers (college students) are on their way of searching school supplies which are of course useful and do fit with their styles and wants. Etniko will offer more products for these months to meet the demand elevated by the “back-to-school” fuss. The graphs are: 40 . the buying capacity of customers also increases during this month since bonuses and 13 th month pays (for young professionals: another target market) would be given to them.Marketing Plan ETNIKO MERCHANDISE GRAPHICAL REPRESENTATION OF THE PLANNED SALES VOLUME FOR THE SPAN OF 5 CONSECUTIVE YEARS From the succeeding graphs for years 1-5 (as per month basis). Etniko merchandise would have the greatest planned sales volume on the months of February. During Decembers: The December month is a good time for Etniko to increase its planned sales volume since exchange-gifts -craze was in the air. Moreover. so Etniko’s planned sales volume would be higher since the demand for stuffs worth for gift givings would also be higher. May and June. Thus.

Marketing Plan ETNIKO MERCHANDISE Graph 2: Planned Sales Volume/Sales Year 1 80 70 60 50 40 30 20 10 BAGS AND LAPTOP/NETBOOK CASES POUCHES AND COIN PURSES EYEGLASS AND PEN HOLDERS 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Graph 3: Planned Sales Volume/Sales Year 2 90 80 70 60 BAGS AND LAPTOP/NETBOOK CASES POUCHES AND COIN PURSES EYEGLASS AND PEN HOLDERS 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 41 .

Marketing Plan ETNIKO MERCHANDISE Graph 4: Planned Sales Volume/Sales Year 3 100 80 BAGS AND LAPTOP/NETBOOK CASES POUCHES AND COIN PURSES 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EYEGLASS AND PEN HOLDERS Graph 5: Planned Sales Volume/ Sales Year 4 120 100 80 60 40 BAGS AND LAPTOP/NETBOOK CASES POUCHES AND COIN PURSES EYEGLASS AND PEN HOLDERS 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 42 .

Marketing Plan ETNIKO MERCHANDISE Graph 6: Planned Sales Volume/Sales Year 5 140 120 BAGS AND LAPTOP/NETBOOK CASES POUCHES AND COIN PURSES 100 80 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Graph 7: Planned Sales Volume (Year 1 – Year 5) SALES 200000 150000 100000 50000 0 Year 1 Year 2 Year 3 Year 4 Year 5 SALES The size of the market will increse in the next 5 years. a type 43 . This will in turn affect the demand of the talahib products. especially in the province of Isabela where the indigenous talahib. The initiative to produce talahib products has transformed into a dynamic industrial area.

In other situations. 44 . In the long run. the products can be priced with reasonably higher mark-up depending on the additional costs to be incurred. then the markup represents the desired profit. Among the factors that could bring about an increase in demand of the talahib products are:   Preference of customers/consumers for simpler yet sophisticated products made from nature’s products which are at the same reasonably price Adherence to products that are made of cogon which are largely ignored by residents but are providing livelihood to weavers. taps indigenous resources that augment livelihood opportunities. If the cost base includes all of the costs required to produce and sell the product. pouches.Marketing Plan ETNIKO MERCHANDISE of grass grows abundantly. purses. The use of talahib in makingbags. It can be bought by any interested buyers. This would be the case where the product is specially made for a customer and when the product is effectively differentiated. the prices for products can also increase. etc. People eat expecting to be satisfied and nourished in the future.   The talahib products are not offered only for specific markets. products are priced such to cover costs and earn a reasonable profit. Likewise. The cost was arrived by computing the cost per item and including certain mark-up afterwards. People sleep assuming that in the future they will feel rested. people who would buy the talahib products and also the prospect buyers can benefit by the sense of protection and organization of valuable things they give Talahib products were offered for the college and professionals in CLSU. This time. the size of the market is expected to increase in the next three years as the products were initially sold locally from Central Luzon State University to many cities in Nueva Ecija. As the business also tries to diversify and tries to enhance product features.

. It would retail the goods since it has still inexperienced in producing batches of bags for wholesailing. The business will maintain a constant manufacturing of wholesale for the first 5 years upon its materialization to ensure that the quality of the products are not compromised.. Other items are within the P150 to P400 range. 45 . the business would not give credit sales yet. The price is not too low which would consequently fail to cover the fixed costs and lead to losses. Due to this factors. and 10% on the third month. the products will be sold directly through its own store. Uy says his group sells the products in local outlets at affordable prices. A piece of wall decor. According to an article in Philippine Daily Inquirer (PDI) entitled “ Talahib is income-earner for Isabela villagers” which was released on September 02. The company buying in wholesale will be given a credit term of one month (equivalent to 30 days). Likewise. it is not also too high which could undermine the business from selling the products. But as the time passed and the firm will be stable in its industry. Since the firm is still starting within the specified industry. 2012 and written by VillamorVisaya Jr.Marketing Plan ETNIKO MERCHANDISE The product was priced appropriately based on a good understanding of market forces at work. The prices of the products would be also economical since its raw materials are inexpencive and abuindant. candleholder or a candy basket sells for P150 each while a lampshade fetches P700. it will expand to producing batches of canvass bags (bags that are still not designed to be fashionable) to be sold to other manufacturers that would use it as its raw materials. It is estimated that 55% of the credit sales will be collected one the month of sales and 35% one the next. they will also be required to have a 15% downpayment. In about 5-10 years after the instigation of the company. it will materialize this plan.

500 Nov. 200 150 30.50 16.85 0 12.631.8 0 10.00 0 2.5 0 9.500 Aug.15 0 11.125 3. 100 150 15.3 0 13.5 0 15.375 2. 100 150 15.250 33. 225 150 33.993.15 0 6.425 20.000 20.668.50 46 .500 Feb.250 Apr.5 0 18.625 13.50 0 37.85 0 12.250 3.750 27. 150 150 22.187.8 0 12.5 0 14.50 0 7.418.137.00 0 May 275 150 41.50 0 7.112.562.075 16.500 Sept.075 6.50 0 7.3 0 7. 100 150 15.8 0 14.075 6.00 0 13.375 23.000 2.00 0 July 100 150 15.00 0 1.750 March 175 150 26. Sales (In Quantity) Selling Price Total Sales Less: Cash Sales Credit Sales Collectio n of A/R A/R Balance 150 150 22.706.Marketing Plan ETNIKO MERCHANDISE SALES FORECAST FOR YEARS 6-10 Sales Forecast for Years 6-10 (Bags and Laptop/Netbook Cases) Jan.500 Dec.00 0 1.625 1.112.425 13.425 13.3 6.750 3.137.706.250 3.250 30.250 June 200 150 30.125 27. 250 150 37.075 9.500 4.500 Oct.00 0 11.00 0 1.425 20.

706.8 July 37.750 3.80 7.425 20.375 3.368.425 7.718.90 20.25 3.562.30 Dec.720.50 Aug.025 2.30 12.50 17.593.75 4.80 Sept.75 5.718.025 5.80 Nov.718.050 2.375 9.437.568.062.30 47 . 39.50 8.80 17.218.660.50 17.80 13. 54.75 2.30 28.80 23. 29. 55.Marketing Plan ETNIKO MERCHANDISE Schedule of Accounts Receivable for Years 6-10 (Bags and Laptop/Netbook Cases) Jan.425 11.80 Oct.50 5. 37.50 7.80 16.118.543.50 March 41.30 June 50118.037. Credit Sales Collectio n of A/R (on month of sale) Collectio n of A/R (two months after sale) Collectio n of A/R (three months after sale) A/R Balance 9.137.756.456.8 20.80 Apr.375 3.137.25 3.462.30 13.993.30 23.50 30.487.80 17.250 Feb.5 16.962.025 2.50 11.850 7.80 May 50.506.375 5.343.30 3.425 7.856.868.293.218.25 6. 31.856. 31.418.043.50 4556.906.025 3.80 14.037.112.062.281.50 18.331.

5 March 87.00 0 300 3.70 0 7.822.2 5 2.7 5 2.2 5 1.5 0 3.00 0 300 4.341.21 5 1.822.750 5.5 0 2.227.075 4.21 5 1.250 6.037.48 5 2.97 0 .40 0 2.21 5 1.48 5 2.5 2.00 0 3.500 7.70 0 1.70 0 1. Sales (In Quantity) Selling Price Total Sales Less: Cash Sales Credit Sales Collection of Accounts Receivabl e A/R Balance 1.500 6.7 5 2. 100 75 60 60 60 60 60 60 60 60 60 60 60 60 4.500 6.43 0 1. 50 Sept.5 3.750 5.5 June 100 July 50 Aug.250 3.00 0 450 675 525 300 825 600 450 750 600 4.341.126.97 0 2.083.70 0 1. 112.733.48 5 4.712.5 Apr.40 0 2.00 0 8. 75 Nov.21 5 3.00 0 300 3.Marketing Plan ETNIKO MERCHANDISE Sales Forecast for Years 6-10 (Pouches and Coin Purses) Jan. 125 Dec.227.48 5 4. 50 Oct. 50 May 137.425 5.725 2.5 0 3.5 0 2.598.43 0 48 Feb.050 6.7 5 1.050 6.2 5 2.

75 2.50 March Apr.5 1.341.227.75 1.227.805 Nov. May 9.25 675 1.25 July 6.50 2.362.5 1. Dec.822.485 4.687.25 1.Marketing Plan ETNIKO MERCHANDISE Schedule of Accounts Receivable for Years 6-10 (Pouches and Coin Purses) Jan.112.25 2.75 1. 7.50 9.012.75 6.50 3. 5.455 Oct.25 3.5 3.181.295 1.970 1.50 3. Credit Sales Collection of A/R (on month of sale) Collection of A/R (two months after sale) Collection of A/R (three months after sale) A/R Balance 1.485 1.915 2.160 3.5 2.755 2.615 Aug.485 2.041.350 675 675 675 1.995 Sept.083. 4.585 June 9.598.268.080 540 540 540 810 1.281.881.25 2.856.247. 8.25 9.485 1.897.485 1.970 4050 Feb. 4.712.5 3.341.543.755 1.50 3.518.012.75 3.50 49 .847.780 810 1215 945 540 1.

March Apr.188 3.782 2.673 2. Dec. Oct.160 2.400 2.Marketing Plan ETNIKO MERCHANDISE Sales Forecast for Years 6-10 (Eyeglass and Pen Holders ) Jan.376 1.400 4.376 3.800 2.187 1.400 6. May June July Aug.780 2.000 4.160 3.944 1.860 3.940 4.800 50 .320 360 540 420 240 660 480 240 240 240 360 600 480 40 40 40 40 40 40 40 40 40 40 40 40 90 135 105 60 165 120 60 60 60 90 150 120 Feb.458 2.400 4.600 6.600 5.701 972 2.188 1.240 5.400 2.400 3.160 5.600 4.944 972 972 972 1.240 4. Sept.267 2.458 2. Nov.430 1. 3. Sales (In Quantity) Selling Price Total Sales Less: Cash Sales Credit Sales Collection of Accounts Receivable A/R Balance 1.782 2.200 2.188 1.970 2.673 1.320 2.079 1.160 2.188 1.

6.644 Nov.078 3. 3.079 1.240 1.080 540 540 540 810 1.673 2.188 3. 4.292 Aug. Credit Sales Collection of A/R (on month of sale) Collection of A/R (two months after sale) Collection of A/R (three months after sale) A/R Balance 51 Feb.188 1. 7.376 1.404 1.Marketing Plan ETNIKO MERCHANDISE Schedule of Accounts Receivable for Years 6-10 (Eyeglass and Pen Holders) Jan.485 1.668 June 7. 4.024 .105 3.564 Oct.350 648 972 756 432 1188 864 432 432 432 648 1.970 2.890 3. 7.836 1.404 1.782 2.782 2.996 Sept.290 Dec.188 1.267 2.132 1.318 March 6.458 2.728 3. 3.215 945 540 1.425 July 5.398 3.615 Apr.833 May 7.673 1.835 2.188 1.376 810 1.

Marketing Plan ETNIKO MERCHANDISE 52 .