Final-Mktg - Plan-For Defense

I- Executive Summary
In this millennial period, almost of the establishments uses lighting technology.

Energy consumption is increasing and part of it is the used of lighting. This means that the
demand for lighting consumption is also increasing. According to Felderman Keatinge and
Associates (2017), lights has an enormous effect on our physical and mental well-being, and
in our DNA to perform better under specific lighting, and that is why we react differently
depending on our light environment. This is the reason why we proposed the Starlight
Company, which mainly offers Led Lighting technology. It is located at Bankerohan, Davao
City. The company’s business hour is open Monday to Saturday from 9:00am-7:00pm. The
company will market every establishment like restaurants, offices, houses, hospitals, schools,
and others.
The company chose LED Lighting technology as it has numerous advantages over
fluorescent lighting. It is twice as energy efficient, has a longer lifetime, has less maintenance
requirements and environmentally friendly. However, this product is more costly than
fluorescent lighting but the advantages of the product will actually save the customer money
over a long period. Aside from that, Starlight Company also offers sales discount of 5% for
the first 20 buyers of the product every month. The Company’s product is also innovated into
a unique designs and styles. This will ensure customers’ satisfaction and long-term customer
relationship. The company will nurture a working environment that provides sustainable
growth for the sake of all: our business partners, employees, clients and to the society.
The Starlight Company’s competitors already existed in the market but our company
will be differed from its product designs and services. The product will consist of 4 parts:
LED lighting bulbs, recycled wine bottles, metal chains and support/installation. The tubes
are high quality and customized to meet the customer’s aesthetic needs. The recycled wine
bottles customized into different unique designs and styles. The housing designed for cost
savings, efficiency and artistic. The third part of the product is installation/support that gives
value added service to the customers and will help to promote the company’s brand name.
The company’s product branded with its brand name: Starlight, which the customers will
easily remember.
It is committed to offer genuine, unique designs, styles, and high-quality products that
creates comfort to our target customers with an utmost value for their money. The company
is aiming to be made-known not just here in the local market but also in the international
market. The Starlight Company follows its policies and procedures including its Core Values
in its daily operations in order to become a better and even the best Led Lighting industry
around the world. The company’s core value has an acronym of EQUAL, which stands for
Equality, Quality, Uniqueness, Attentive and last but the greatest is Love.
Page | 1
Vision Statement
Starlight Company envisioned itself as the most purchased and be known for its
unique designs and styles not just in the local market but also in the market world.
Old Mission Statement

Starlight Company is committed to offer genuine, unique and high-quality
products and services that create comfort, satisfaction and long-term relationship to our
stakeholders.
Revised Mission Statement

Starlight Company is committed to provide its buyers (1) a genuine, affordable,
unique and high-quality (7) led lighting products solutions (2) with an utmost value for
all target market we will serve (3). We also value our employees by giving them good
salaries & benefits including free trainings and other personal development activities (9).
It also utilized some technologies (4) for customer’s convenience (1) and uses recyclable
materials for the sake of the communities and to our beloved mother-nature (8).
Corporate activities will be also applied with the consideration of the core values of the
corporation (6). The company is also committed to endeavor its financial growth and high
financial returns for all its shareholders (5).
Page | 2
II- Corporate Objectives
1. To increase 3% sales growth in units annually.

2. To increase 3% profit annually.
3. To achieve 99% on customer satisfaction annually.
Organizational Structure
BOD
CEO RETAINER
COO
Production Sales & HR Finance

Dept. Marketing Department Department
Dept.
Departmen
t
Production Sales & HR Finance/

Manager Mktg. Manager Acctng.
Head Manager
Production Sales Agent HR Secretary Accounting

Staff Clerk
Cashier
Purchasing
Staff
Figure 1 Starlight Company Organizational Structure
Page | 3
Table 1 Employees Job Description
POSITIONS DUTIES NUMBER

They are responsible for managing/supervising the
overall business operations and activities and do
MANAGERS 4
some paperwork in their respective department.
RETAINER Responsible for execution of Internal Audit 1
assignments of the company.
CASHIER Responsible for handling cash/received payment and
responsible in recording sales and expenses incurred
2
monthly.
Responsible for making and submitting sales
proposal to prospecting clients and follow-up. They
SALES AGENT 2
are also in charge for the company’s marketing
activities and provide on-site customer service or
installation and sales support in order to ensure
customer satisfaction.
PRODUCTION Responsible for making the product. 10
STAFF
Responsible for canvassing prices and buying raw
materials used for production. Also responsible for
PURCHASER 2
managing incoming and outgoing supplies and
products within a business.
Responsible for maintaining, updating, and
monitoring employee work schedules, as well as
approving and overseeing payroll. Also pays
ACCOUNTING CLERK employees by calculating pay and deductions; 1
issuing checks and making employees pay slip.
Responsible for working with spreadsheets, sales and
purchase ledgers and journals; calculating and
checking to make sure payments, amounts and
records are correct.
Performs a variety of routine and complex secretarial
and clerical duties in assisting the Human Resources
HR SECRETARY 1
Department.
Page | 4
III- Marketing Audit
Table 2 Marketing Audit
1. Internal Marketing Poor Satisfactory Very Excellent

Environment Satisfactory
a. Money
-Is the company financially
stable?
-Does the company generate
net income?
-Are there enough budgets for
marketing activities or
promotional activities?
b. Manpower
-Is the manpower enough for
the operation?
-Do employees are efficient in
their respective field?
-Are the employees paid well?
c. Machineries
-Does the equipment worked
well or in good condition?
-Are the equipment enough?
-How quality is the equipment?
d. Materials
-Do we have good facilities?
-Are supplies of materials
sufficient?
e. Minutes
-Does the customers paid their
accounts on time?
-Does the company have a fast
service to the customers?
f. Product
-Does the company offer a
quality product?
-How unique is the company’s
product?
-How is the customers’
satisfaction with the company’s
product?
Page | 5
g. Price
-Does the price affordable to
the customers?
-Does our pricing close with
our competitor’s price?
h. Place
-Does the company situated in
a strategic place?
-Does the place is accessible to
the target market?
i. Promotion
-Are we conducting strong
promotional activities?
-Does the company have used
the right or appropriate
promotions?
-Are the company has a good
marketing communications?
2. External Marketing Poor Satisfactory Very Excellent
Environment Satisfactory
a. Micro-Environment
-Do we have good relationship
with the supplier?
-Do we have good relationship
to the competitors?
-How satisfied are the
customers?
-How we value our customers?
b. Macro-Environment
-Does the company follow the
compliance with the rules and
regulations of the law?
-Does the country economically
stabled?
-Does the company socially
responsible to the society?
-Does the company have used
new technologies like CCTV’s?
Page | 6
III- SWOT Analysis (Company)
Table 3 Starlight SWOT Analysis

STRENGHTS WEAKNESS
 Competitive price which suits the budget

 Unique product designs and styles
 Eco-friendly
 Energy Saver  New in the market
 Strong Core Values  Limited financial budget
 Accessibility of the location
OPPORTUNITIES THREATS
 Offers additional income to the  Emerging competition

community  Fast changing technology
 The increasing demand of LED lighting.  Changing demands of people.
 Promotes product’s brand awareness
 Increased revenues
Page | 7
TABLE 4 STARLIGHT COMPETITORS ANALYSIS
STARLIGHT COMPANY APOLLO LIGHTNINGS ALLADIN HOME OF LIGHTS

Company Name Father Selga St., Davao City
Ramon Magsaysay Ave. Davao City Ramon Magsaysay Ave. Davao City
and Location
STRENGHTS -Competitive price which suits -Located also in commercial areas

the budget -Old in the market
-Unique product designs and -They are located at commercial areas well known already for their lightning
styles -They’ve been known for their products
-Eco-friendly products
-Energy Saver old in the market
-Strong Core Values
-Accessibility of the location
WEAKNESS -They are near with their competitors -Near with competitors
-New in the market -Limited facilities -High price products
-Limited financial budget -Limited facilities
OPPORTUNITIES -Offers additional income to the -Increased revenues -Due to new competitors in market
community -Partnership with diverse groups -New competitors in market with new and
-The increasing demand of -Increased the aging of population of unique product
LED lighting. customers -Customers loyalty may have lost
-Promotes product’s brand
awareness
-Increased revenues
THREATS Emerging competition -Partnership with diverse groups -Customers loyalty be lost and select to a
-Fast changing technology -Face stiff competition new market
-Changing demands of people. They can innovate new products -New competitors in market
-New competitors in market might have
unique selling strategy and products
Page | 8
IV- Assumptions
Marketing Analysis
LED lighting developed rapidly in Southeast Asia thanks to its infrastructure construction, which
was promoted by the development and impact from the Association of South-East Asian Nations
(ASEAN), according to LEDinside, a research subsidiary of global research institute TrendForce.
ASEAN is an inter-governmental international organization gathering countries in Southeast
Asia. Established in 1967, ASEAN covers a population of approximately 618 million people,
covering a land area of 4.48 million km2, with abundant natural resources, and it is one of the
world's fastest growing economic regions.
In view of economic integration, the current main form of cooperation within and outside the
ASEAN is Free Trade Area. ASEAN Free Trade Area(AFTA) was officially launched on January
1, 2002. The ASEAN-China Free Trade Area has been fully implemented on January 1, 2010. At
this time, mainland China and six ASEAN nations (Singapore, Malaysia, Thailand, the
Philippines, Indonesia and Brunei) will reduce their industrial tariffs to 0%. The other four
ASEAN nations (Myanmar, Vietnam, Laos and Cambodia) will reach this goal in 2015. In the
first three quarters of 2014, total trade between China and ASEAN nations reached about $
346.60 billion, accounting for 11% of China's total foreign trade. The two sides are planning to
update and expand the content and scope of the ASEAN-China Free Trade Area agreement,
cutting non-tariff measures, actively proposing a new set of service trade commitments,
promoting real openness in the investment field by improving market access and personnel
interflow and enhance trade and investment liberalization and facilitation, and striving to raise
two-way trade to one trillion US dollars by 2020.
Terri Wang, an analyst for LEDinside, said that Southeast Asia's LED lighting market had the
fastest pace of growth in 2013 with a year-on-year increase of 63%. Though growth lagged
during the 2014-2015 period, the rate was kept at 30% and above. Also, the market penetration
rate of LED lighting in Southeast Asia has risen with each passing year and at an accelerating
speed. Overall, the market penetration rate of LED lighting in the region is projected to grow
from 12% to 32%. Because of this, Starlight Company can still penetrate into LED lighting
market especially here in Davao City where infrastructures, buildings and other improvements in
the city are continuing to build. Moreover, Starlight Company has only two main competitors
who are the APOLLO LIGHTNINGS located at Ramon Magsaysay Ave. Davao City and
ALLADIN HOME OF LIGHTS also located in Ramon Magsaysay Ave. Davao City.
Page | 9
PEST ANALYSIS
P-OLITICAL  Protection from terrorism under the

new administration.
 Restrictions from Competition
regulation or policy.
E-CONOMIC  Possible inflation rates that can affect

the product prices.
 Possible increase of Unemployment
Rate.
 The development of the city’s
economy.
S-OCIAL  The rapid population growth.

 Consumer preferences to brand-new
products.
T-ECHNOLOGICAL  The use of technological trends for

an efficient service.
 Energy use and cost with
technologies.
Page | 10
V- MARKETING OBJECTIVES AND STRATEGIES
STARLIGHT COMPANY
Strategic Marketing Plan
Starlight Company will be using growth strategy as the company envisioning a long-term success to be the leading company of
LED Light technology in Davao City. The following are the objectives of the company:
1. Production
“To increase 3% sales growth in units annually.”
2. Profitability
“To achieve 3% profit annually.”
3. Customer Satisfaction
“To increase 99% on customer satisfaction anually.”
Page | 11
Key Results Areas (KRA’s)
For the Year 2019
KRA’s Strategies Target Budget Person Time Frame

(Key Result Areas) Responsible
1. Sales in Peso Growth Strategy 3% 200,000.00 Manager 1 Year
-Assign each sales agent a quota
of 300,000 quarterly. (Total of
2,400,000.00 annually)
-Promotional Activities through
company’s FB account, giving
flyers, posting tarpaulin to
specific locations and
submitting sales proposal to
prospecting clients.
2.
Page | 12
3. Customer Contribution to Customers 99% 300,000.00 Manager 1 Year
Satisfaction -Give 3% discount in all
products to walk-in customers
-Give 5% discount to regular
customers
-Conduct a quarterly customer
satisfaction survey
4. Production Brand Awareness 3% 225,000.00 Manager 1 Year
Growth in -Promotional Activities
Volume -Conduct a quarterly monitoring
on labor productivity
-Recruit distributors

For the Year 2019

of 600,000. (Total of
1,200,000.00)
flyers and posting tarpaulin to
specific locations.
Page | 13
customers
satisfaction survey

For the Year 2020

1,200,000.00)
specific locations.
Page | 14
customers
satisfaction survey

For the Year 2021

1,200,000.00)
specific locations.
Page | 15
customers
satisfaction survey

For the Year 2022

1,200,000.00)
specific locations.
Page | 16
customers
satisfaction survey
Page | 17
VI- MARKETING MIX
A. PRODUCT & SERVICES
Starlight Company offers LED Lighting technology with its different unique designs and styles to all our target market. On the
other hand, the company also offers free service of support or installation.
Figure 1 Sample Product Design and Style
Page | 18
B. Place
Starlight Company is strategically located at Bankerohan, Davao City with a size of 600 m2.
Figure 2 Location Map
C. Price
Starlight Company used the cost-plus pricing strategies to get the product’s selling price.
Formula:
Page | 19
Prime Cost= Purchases (Actual Raw Materials) +Direct Labor + Direct Other Expenses
Prime Cost= 188,500+48,100+51,025
=287,625
Cost of Production/Cost of Sales= Prime Cost + Overhead Cost
=287,625+61,981.7
=349,606.6
Selling Price= Cost of Sales/No. of Units produced
=349,606.6/600.00
=582.68
Cost-Plus Pricing= Selling Price+ (Selling Price x Mark-up %)
=582.68+ (582.68x0.25)
=582.68+145.67
=728.35
D. Promotion
The following is the promotional strategies of Starlight Company
 Using Social Networking particularly the Facebook page.
 Have a clear and good signage/tarpaulin outside the gate of the Apartment.
 Giving flyers to our target markets.
 Special Offers: 5% discount for the first 20 buyers every month.
Page | 20
MANUFACTURING
Direct Materials Direct Labor Other Expenses Total Cost
Led Light Bulb P200.00

Recycled Wine P35.00 P370.00 per day x 5/25pcs 25% of the direct
Bottle materials
Metal Chain P55.00
Page | 21
Cost per Unit P290.00 74 P72.5 P339.5
PACKAGING
Packaging
Types Cost per Unit

Primary P3.00
Secondary P1.50
Label P1.50
Total Cost P6.00
Infrastructure Investment
Furniture and Fixtures
Item Quantity Price Amount
Table 2 P1,500 P3,000
Chair 5 P300 P1,500
Electric Fan 2 P1,500 P3,000
Cabinets 1 P3,000 P3,000
Total P8,200.00
Page | 22
Equipment and Supplies
Equipment and Supplies
Item Quantity Price Amount

Glass Cutter 5 P2,000.00 P10,000.00
Electric Screw Driver 5 P1,500.00 P7,500.00
Steel Ruler 5 P120.00 P600.00

Pencil 10 P5.00 P50.00
Marker 10 P48.00 P480.00
Ball pen 10 P5.00 P50.00
Logbook 2 P30.00 P60.00
Total P18,740.00
Rent, Electric and Water
Rent, Electric and Water Expense
Types Monthly Annual

Rent P4,000.00 P48,000.00
Water P500.00 P6,000.00

Electric P1,500.00 P18,000.00
Page | 23
Total P6,000.00 P66,000.00
Salaries and Wages
Position Monthly Annual

Manager P10,800.00 P129,600.00
Cashier P8,880.00 P106,560.00

Purchaser/Delivery Man P8,880.00 P106,560.00
Sales Agent P8,880.00 P106,560.00
Total P37,440.00 P449,280.00
Promotional Expense
Cost No. of Month Annual

Actual Demonstration P5,000 1st Month (Introduction P5,000
of the product)
Flyers P6,000 12 P72,000
Signage/Tarpaulin P1,500.00 1st Month (Grand- P1,500

opening)
Communication 3,000.00 12 36,000

Expense
Total P114,500
Page | 24
Sales Incentives & Sales Discount
Cost No. of Month Annual

Sales Incentives (2 P3,000 12 P36,000
Sales Agent)
Sales Discount (1st 20 P1,500.00 12 P18,000

buyers of the product
per month)
Total P9,000 P54,000
Insurance
Quarterly Annual
P1,500 P6,000
E. Promotion
 Marketing using Social Network particularly the Facebook page.
Page | 25
 Have a clear and good signage outside the business establishment.
 Marketing with the use of word of mouth and flyers to schools and other target markets through our sales agent.
Page | 26
MARKETING OBJECTIVES AND STRATEGIES
Starlight Company
A Five-Year Marketing Plan
Starlight Company will be using growth strategy as the company envisioning a long-term success to be the leading company of LED Light
technology in Davao City. The following are the objectives of the company:
1. Profitability
“To increase 3% sales growth in peso every year.”
2. Customer Satisfaction
“To achieve 99% on customer satisfaction yearly.”
3. Production
“To increase 3% economic growth in volumeevery year.”
Page | 27
Page | 28
For the Year 2018
KRA’s Strategies Target Budget Person Responsible Time Frame

(Key Result Areas)

-Assign each sales agent a quota of
600,000. (Total of 1,200,000.00)
specific locations.

Satisfaction -Give 3% discount in all products
to walk-in customers
customers
satisfaction survey

Volume -Conduct a quarterly monitoring on
labor productivity
Page | 29
For the Year 2019

(Key Result Areas)

600,000. (Total of 1,200,000.00)
specific locations.

customers
satisfaction survey

labor productivity
For the Year 2020
Page | 30
(Key Result Areas)

600,000. (Total of 1,200,000.00)
specific locations.

customers
satisfaction survey

labor productivity
For the Year 2021
Page | 31
(Key Result Areas)

600,000. (Total of 1,200,000.00)
specific locations.

customers
satisfaction survey

labor productivity
For the Year 2022
Page | 32
(Key Result Areas)

600,000. (Total of 1,200,000.00)
specific locations.

customers
satisfaction survey

labor productivity
VII- FINANCIAL ASSUMPTIONS
The following are the financial assumptions of the Starlight Company:
Page | 33
1. Below is the computation of the price based on the computed costing of the product.
2. Assuming that in the first year, the company produced 1,200 product and only 90% of it or 1,080 products that is being sold. Moreover, there
will be an increase of 3% of the production in volume every year.
3. Assuming that allowance and transportation is 25% of the Marketing Expense and an increase of 3% every year.
4. The Appendix shows the Salaries & Wages, SSS/PHIC/HDMF Contribution and 13th Month Pay of the employees.
5.
6.
7.
1. Allowance & Transportation is assumed to be 20% of Marketing Expense.

2. Repairs & Maintenance is assumed to be 25% of Depreciation Expense.
3. Salaries & Wages, Depreciation Expenses, SSS/PHIC/HDMF Contribution, 13th Month Pay and Taxes & License are shown in Appendix.
Page | 34
MEASUREMENT AND EVALUATION
Monitoring/Evaluation
Performance Assessment
For the Year 2018
Page | 35
Schedule: 1st Quarter (January-March)
KRA KPI Target Actual Actions Taken

(Key Performance Indicator)
1. Sales in Peso Sales Growth 3% Met Continue doing the scheduled activities.
2. Customer Survey-Made Questionnaire 99% Unmet Conducting and monitoring results of the
Satisfaction Survey-Made Questionnaire to
Customer.
3. Production (OLE) Overall Labor 3% Met Monitor the labor productivity and track
Effectiveness it in detail by product, team, shift,
operator, activity, and several other
variables.
Budget Actual Target Variance
1. 150,000.00 30,000.00 Met Php120,000.00
2. 300,000.00 50,000.00 Unmet Php250,000.00
3. 225,000.00 35,000.00 Met Php190,000.00
Page | 36
Reference: Global Information Inc., LEDinside: 2016 Southeast Asian Lighting Market Report [online], Available from: URL:
https://www.giiresearch.com/report/tdf329513-southeast-asian-lighting-market-report.html (Accessed Date: February 25, 2019)
Page | 37

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I- Executive Summary

In this millennial period, almost of the establishments uses lighting technology.

Old Mission Statement

Revised Mission Statement

1. To increase 3% sales growth in units annually.

Production Sales & HR Finance

Production Sales & HR Finance/

Production Sales Agent HR Secretary Accounting

Figure 1 Starlight Company Organizational Structure

POSITIONS DUTIES NUMBER

Table 2 Marketing Audit

1. Internal Marketing Poor Satisfactory Very Excellent

Table 3 Starlight SWOT Analysis

 Competitive price which suits the budget

 Offers additional income to the  Emerging competition

STARLIGHT COMPANY APOLLO LIGHTNINGS ALLADIN HOME OF LIGHTS

STRENGHTS -Competitive price which suits -Located also in commercial areas

P-OLITICAL  Protection from terrorism under the

E-CONOMIC  Possible inflation rates that can affect

S-OCIAL  The rapid population growth.

T-ECHNOLOGICAL  The use of technological trends for

KRA’s Strategies Target Budget Person Time Frame

Key Results Areas (KRA’s)

KRA’s Strategies Target Budget Person Time Frame

Key Results Areas (KRA’s)

KRA’s Strategies Target Budget Person Time Frame

Key Results Areas (KRA’s)

KRA’s Strategies Target Budget Person Time Frame

Key Results Areas (KRA’s)

KRA’s Strategies Target Budget Person Time Frame

A. PRODUCT & SERVICES

Figure 1 Sample Product Design and Style

Figure 2 Location Map

Led Light Bulb P200.00

Metal Chain P55.00

Types Cost per Unit

Total Cost P6.00

Electric Fan 2 P1,500 P3,000

Cabinets 1 P3,000 P3,000

Item Quantity Price Amount

Steel Ruler 5 P120.00 P600.00

Marker 10 P48.00 P480.00

Ball pen 10 P5.00 P50.00

Logbook 2 P30.00 P60.00

Rent, Electric and Water

Rent, Electric and Water Expense

Types Monthly Annual

Water P500.00 P6,000.00

Salaries and Wages

Position Monthly Annual

Cashier P8,880.00 P106,560.00

Sales Agent P8,880.00 P106,560.00

Total P37,440.00 P449,280.00

Cost No. of Month Annual

Flyers P6,000 12 P72,000

Signage/Tarpaulin P1,500.00 1st Month (Grand- P1,500

Communication 3,000.00 12 36,000

Cost No. of Month Annual

Sales Discount (1st 20 P1,500.00 12 P18,000

Total P9,000 P54,000

 Marketing using Social Network particularly the Facebook page.

For the Year 2018

KRA’s Strategies Target Budget Person Responsible Time Frame