Chapter 1.

Introduction, Goals and Objectives

This chapter discusses the basic framework of the business and how it affects

customers and the interaction between the clients and the needs that are catered by the

business itself.

 Background of your business

The PisoNet industry is considered to be one of the mushroom industries in the

last few years. Ever since it was introduced as an innovation in the early 2000s by some

technologically inventive Filipinos in Luzon, the pisonet industry has blossomed into a

full blown niche in computer service use. In fact, it has become the chosen mode of

computer use by those without their own computer units especially for kids and students

with limited budget. The innovation and the ease of its use and availability has made it a

continuously growing industry.

MJ Pisonet is a business enterprise that started in 2015. Having 2 branches

located at Barangay 3 and another in Barangay Bata, this computershop caters to

children and students who engage in online gaming and school research work using

computers that are affordable for the student budget. An article in the American Journal

of Play (Fall, 2014) by researchers Adam Eichenbaum, Daphne Bavelier, and C. Shawn

Green, summarized the recent research demonstrating the long-lasting positive effects

of video games on basic mental processes such as perception, attention, memory, and

decision-making. Most of the research involves effects of action video games—that is,

games that require players to move rapidly, keep track of many items at once, hold a

good deal of information in their mind at once, and make split-second decisions. Many
of the abilities tapped by such games are precisely those that psychologists consider to

be the basic building blocks of human intelligence.

Meanwhile, A pisonet is an arcade style computer unit used as an internet or

gaming vending machine. It is originally invented in Pangasinan (around 2011) as

response to Dagupan's flourishing internet cafe industry, it later proliferated in

Pangasinan and later Metro Manila and Metro Cebu, and now it is all over the country. It

was created particularly for rural areas which does not have access to internet

connection.

A pisonet is a major hub for internet enthusiasts and children who only have small

amount of money to surf and play some games which contributes more "demand" to this

business, it can be bought in some computer parts stores throughout the Philippines as

a whole set Pisonet or can be assembled by hiring an independent computer technician.

You just need a complete Pisonet box set + a desktop computer, with or without internet

connection is only an option because only cities have ISP and the neighboring town are

connected to tower relays which have limited range capability.

With students’ hectic and stressed life, convenience and affordability are highly

regarded. Students often deal with submitting requirements, passing exams, and

meeting deadlines. A computer shop is an oasis for these students, be it being

productive with academic responsibilities, or taking a much needed break through social

media or online games.

Thus, this motivated the establishment of MJ PisoNet, a place where kids and adults

can play and enjoy a variety of video games and at the same tie socialize with their
peers. This place can also be the harbor for students that are working for their research,

assignments, projects and other school works, all of these can be catered by offering

fast and reliable internet connection and a good costumer service in a very affordable

price.

This Marketing plan describes the strategies for the pre-operations, technology

research and advertising and promotional strategies in opening this business; in this

sense, with the mentioned rise of the popularity of the pisonet business and other

competitors in providing internet and commuter usage to the market, this marketing

plan’s main purpose is to study the trends, the opportunities and look for ways in order

for the business owners to take the business into other aspects of growth. Hereby,

meeting the goals set in this marketing study.

Business Vision and Mission

VISION

MJ Pisonet intends to create a pisonet shop to cater computer users specifically

gamers playing online games and students that are working on school works within

Brgy. Bata and Brgy. 3.

MISSION

MJ Pisonet’s mission is to provide a place to enjoy, relax and work by providing

good and quality services and better access to internet technology.

Marketing Goals
 o To continue the operations of an internet shop where people can play

online games

o To provide a gaming area that will have excellent service at a modest rate

o To offer affordable and ease access to technology for other uses such as

research and social networking.

 Marketing Objectives

o To heighten sale by 20% every year for the next 5 years by adding 2 more

units each year.

o To increase client numbers by 10% in each year after the integration of

this marketing plan.

o To create revenue of 15% by introducing other services related to

computer works such as desktop publishing and printing and

photocopying services.

Chapter 2: Target Market and Market Segmentation

This chapter discusses the market, competitors and how these affect the current

status of the business. It can be noted that within this chapter are facts that have been

gathered to support the strategies that will be discussed further in this paper.

Attributes Primary Market Secondary Market

Tertiary Market
Students Kids Young
Professionals
Location Brgy. Bata and Brgy. Brgy. Bata and Brgy. Brgy. Bata and
3 3 Brgy. 3

Population Size 8,000 2,000 2,000

Age group 10 – 18 years old 7 - 9 years old 18 - 35 years old
Occupation Students Students Varying
Hobbies Online Gaming, Gaming (Software Socializing,
Internet Surfing and Games) Researching, and
Socializing/ Social Internet Surfing
Networking,
Concerns and Have a venue to Have a venue to Research,
Priorities relax, to take a break relax, take a break Emailing, and
and have fun together and have fun reliable and fast
with peers, and to do together with peers internet connection
school related works
How often do Daily Weekends Occasionally
they use your
product/service?

The table shows the three main target markets of MJ Pisonet. Majority of this,

considered as the Primary Market are the students aged 10 – 18 years old, within the

Grades 4 to 12. Since the business are located in two locations, both locations are

within residential areas where there is a nearby school. These students, mostly coming

from the public education system schools have limited budget and would opt for the

more cheaper alternative to cater to their computer usage needs. The proliferation of

online games, make the Pisonet a highly enticing venue for gatherings as well as for

research and study.

The Secondary Market comprises the younger kids from the lower grade levels

whose more apt to use the computer games in their spare time for online games.

Software gaming and friendly tournaments are very common in this age range.

Moreover, these kids have very limited budget making the Pisonet, more often than not,

their only choice at computer usage.

Lastly, Tertiary Market share is alloted to young professionals who have need of

occational computer usage and printing services for their reports. These are usually
younger and newly hired employees with no computers of their own. Social media,

research and printing services are what they cater to the most although most of these

also are into gaming.

Chapter 3: Market and Situational Analysis

This chapter describes the stimuli that revolves around the business and affects

its effectivity and feasibility. It also describes and innumerates the landscape where the

business is located, hence, it creates the setting for the marketing strategies that will be

most effective for this business.

Economic Environment

Brgy. Bata and Brgy. 3, are areas in Bacolod City where multiple and big

com`panies are situated. With Malls, businesses, and commercial areas Brgy. Bata, is a

barangay in Bacolod City with a population of 28,786 as determined by the 2015

Census. This represented 5.12% of the total population of Bacolod. Although there are

multiple existing establishments in the area the location of the shop is far from this area

but is near the local houses.

Social Environment

In the 21st Century Technology is revolutionizing the various aspects of life starting

from entertainment as well as education. It is great demand today for people to have an

excellent access to internet since most of the things are happening there. The two

aforementioned Barangays though surrounded by establishments and commerce, is

also home for a lot of people living below the average social class making it hard for

them to access the digital world as compared to others that have Wireless internet

connections in their respective homes. Children there are always playing on the streets

exposing them to danger and bad influences, but the MJ PisoNet may open a new world

for them by giving them affordable access to online games, social media, and the world

wide web.

Technical Environment

A pisonet is a major hub for internet enthusiasts and children who only have

small amount of money to surf and play some games which contributes more "demand"

to this business. It can be bought in some computer parts stores throughout the

Philippines as a whole set Pisonet or can be assembled by hiring an independent

computer technician. You just need a complete Pisonet box set + a desktop computer.

With or without internet connection is only an option because only cities have ISP and

the neighboring town are connected to tower relays which have limited range capability.
 It is described as "Slot machine-like Intel/AMD-based PC" build using "clone or

assembled desktop PC", with LED monitor nowadays (the first model uses CRT monitor,

picture tube screen), boxed in an enclosed-type cubicle and mostly run under Windows

Operating System. It is powered by "coin selector/acceptor" component that the users

must first insert "one-peso coin, and other design accepts five-peso coin" for it to

operate. As of 2013, a one-peso coin will provide the user 5 minutes of Internet use or it

can be 6, 8, 12, 32 & 98 minutes respectively depending on the set-up of the timer.

Competitive environment

(Whatever is applicable Your Competitor Competitor Competitor

below) business A (specify) B (specify)
C (specify)
MJ Pisonet
Competitor Competitor
1 2
Competitor
3
Core products Internet Internet Internet Internet
Surfing and Surfing and Surfing and
Gaming Gaming Youtube Surfing and
(online and (online and
offline), offline) Gaming
printing,
photocopyin (offline only)
g and
scanning
Pricing P1 per 6 P1 per 5 P1 per 5 P1 per 5
mins. mins. mins.
mins.

Unique Value/Selling Has 2 Updated None None

Proposition* locations, online
one in Brgy. games
3 and the
other at
Brgy. Bata
both with 8
units each.
 Location Brgy. 3, Brgy. 3, Brgy. Brgy.
Barangay Bacolod 3,Bacolod
Bata City City Bata,Bacolo

d City

Brand identity or brand Fast Internet Expensive Affordable Affordable

positioning** speed, rate and rate
affordable high-end rate
rate, and accessories
upgraded
high-end
hardware
and
accessories

There are three identified main competitors to MJ Pisonet. These competitors are

either located in Brgy. 3 or Brgy. Bata. The above table shows the main differences

between the business and its closest competitors in terms of pricing and other areas.

While the core products of all 4 (four) business are internet connection and gaming,

one major difference is the price wherein MJ Pisonet has a lesser price or more

computer time offered for each peso spent. Also as a unique value or selling proposition,

MJ Pisonet also offers other services not available in the competitors. This makes the

business an obvious choice for users.

SWOT Analysis

SWOT provides the business with an opportunity to examine the internal strengths

and weaknesses MJ Piso Net must address. It also allows to examine the

opportunities presented to MJ Piso Net as well as potential threats.

 Positive Negative

Strength Weakness
 Four (4) years in business  Dependence on quickly
 Residential area/crowded changing technology
area  Cost factor associated with
Internal (within your control and must be existing)

 No Rent because both keeping state-of-the-art

locations are situated in hardware
owners’ areas  Security threats (No CCTV)
 10 mbps internet speed  Temperature (Non-
 Better computer unit airconditioned space)
specifications
 Not less than eight (8)
units per area
 Updated games and
software
 Loyal customers
 Six (6) minutes per peso
 Clean surrounding
 Good ventilation and
lighting for the customer’s
comfort
 Knowledgeable and
friendly business partners
 Open from 7:00 a.m. to
11:00 p.m. daily
Opportunity Threat
 Expansion  Power outages
 Additional units  Computer unit malfunctions
 Computer repairs  Internet connection failure
External (beyond your control)

 Unit consignment  School hours

 Printing and typing services
 Vending Machines (Drinks)
 Sell foods
 Purchase Generator set
 Advance security (CCTV)
 Growing population of daily
Internet users
 Social bonds fostered by the
new Internet communities
 Supplier (out of stock on
hardware)
 Security threats (theft deception,
etc.)
 Power consumption
 Security Issues
 Parental consent (for minors)
 Rapidly falling cost of Internet
access
 Rising local competitors
 Basing from the years of service of MJ Pisonet, these were the identified

areas that could be considered as strengths and weaknesses as well as presented

opportunities and observed threats.

MJ Pisonet has been in business for the last 4 (four) years. This experience

has not only earned for the business, a loyal following but also for more knowledge

in terms of maintenance and how to cater to what the customers and clients wants

and needs. Considering this, and the business’ 2 locations, the immediate

availability of the services offered by MJ to the residents and the continuosly

growing population of these areas are also a plus factor. As observed in the earlier

years of the business, the Pisonet now boasts of faster connection time, giving the

customers more value for their money. The business has also very good business

hours from 7:00 am, earlier than most computer shops and closes at 11 pm daily.

Of course, the business follows the standard guidelines on banning school-aged

children to avail of gaming services and staying at the computer shops during

school hours.

With all these strenghts, the business has continued to exist for the past

years since it has opened. But technology changes at a much faster rate and since

the customers are almost always ready to embrace the changing technologies,

there is a need to be updated all the time. This depency on the changing

techologies and gaming softwares is always a weakness. With this comes the

factor of keeping in touch with the latest technologies as well. Also, since the

business has been running with very little supervision, security is also a weakness
that needs to be addressed. Along with this, and the emerging competitors, one

other weakness is to continuously offer a more comfortable location.

Currently, MJ Pisonet has 8 units per location. With 2 (two) locations, it is

operating with 16 running units. The number of customers are always growing and

these 16 pisonet units are almost always in use. One are of opportunity is to

expand, this expansion can only happen with the use of additional units. Since MJ

has been operating for a long time and somehow knows the lows and highs of

running the business, consigning other units to other locations is also an

opportunity. In this area, they would be able to provide the hardware and partner

with other entrepreneurs who have available spaces and create agreements as to

profit sharing. Security on all locations are also opportunities that need to be

looked into. Since gaming is one of the major activities of their captured market,

promotions, gaming competitions and other marketing activities may be introduced.

Furthermore, the use of alternative power or generators is one option that can be

looked into.

As with any businesses that is related to technology, unit malfuntions are

always threats to the daily income. That and the outages of power sources. Also,

with the fast growing rise of this niche, a lot of competitors are emerging and the

threat of newer competitors with better offerings is a great possibility. With this

such business, it must also be taken into consideration that the school hour ban

for school, especially grade school children has to be emposed.

Chapter 4: Marketing Strategies

Positive Negative

Strength/Threat Maxi-Mini
Strength/Opportunity-Maxi Maxi
 Renovating the business
Internal (within your control and must be

 Additional units on the two location, one venue at a

current locations time and offering a
 Additional services offered comfortable atmosphere
and current and updated  Providing alternative back-
softwares and gaming up power source
applications  Continuously adapting to
 Partnering with other the changing needs of both
individuals with available gamers and other computer
spaces for consignment users
service with profit sharing  Providing security cameras
agreement (CCTV)
 Repair services  Hiring and training
personnel to man the
existing)

locations all throughout the

business hours
 Weakness/Opportunity-
Mini Maxi
 Having hired personnel be
trained in repair of units
and softwares so as to
External (beyond your control)
Weakness/Threat Mini Mini
 Offer promotions to non-
student market during
school hours to capture
clients and to gain income

lessen maintenance cost during the times when

and provide opportunities
to offer repair services
 Monthly and quarterly
maintenance checks on all
units to maintain uptimum
performance and service
 Currently maintain the
competitiveness of the
price of services to gain
more loyal customers
students could not be
catered
 Security of both income and
the customers by means of
installing technology in all
venues

 Pricing strategy

The business will keep its product cost low as their introductory offer that

is a way of introducing themselves in the market and creating a consumer

base. The customers will enjoy six (6) minutes internet surfing per Php 1 peso

value. MJ Piso Net believes that it can compete effectively with other Piso Net

by cheaper rentals that can be affordable for students and gamers.

Currently, the business offers the lowest price for time spent, meaning for

each peso spent, the client or customer enjoys an additional minute of internet

use. An hour’s use is only 10 pesos compared to the 12 pesos of the other

competitors. After studying the current market situation, MJ Pisonet should

maintain its current pricing and readjust as more competitors imerge .

  Product strategy

The proposed business offers renting of computer for hands-on P1 peso per six

(6) minutes where customers can do their office works ad school projects such as

book report, thesis, assignments, and feasibility study. Internet use is also made

available, so that the customers can do some research works, know different topics

and articles, and even chat with other friends. Computer games, audio and video are

also offered.

MJ Piso Net will use the owner’s experience to ensure customers’ satisfaction.

Mac’s Pisonet has a clear business objective to develop, produce, promote and

distribute Computer rental products and services. The owner will also keep on

developing his skills by attending trainings and seminars to improve his knowledge

and to be updated in this business.

Apart from this, with the extensive experience of the business owners, with

training and consistent practice, other services can be offered not only to clients but

even to competitors as well; repairs, maintenance work and consignment schemes

can be looked into for additional income generation.

Place strategy

The businesses are situated in well placed areas with a lot of residents around.

The target consumers are students, young professionals, and other residents who

are engaged in school work, social media and gaming. The two hundred (200) meter

radius requirement as provided in the existing zoning code and other applicable
 rules and regulations wherein computer shops and other similar establishments and

places of amusements should be put up or constructed at least two hundred (200)

meters away from the church, schools, hospitals and other government offices shall

be strictly complied with. Currently, the existing business have 2 running locations.

Using the TOWS Analysis from the SWOT data, other strategies may be employed

in terms of Place strategies. Expansion need not be in the same area if there are no

available space that will keep the comfort of the customers. Cosigning hardware with

other individuals and negotiating a sharing scheme will generate other income. Also,

repairs of the existing units and its maintenance has to be done along with the venue

itself as these are things that customers remember and may be reason for them to

remember the location.

Promotion strategy

To penetrate the target market, different promotion strategies will be considered.

Leaflets will be distributed and handed out to various establishments, schools,

jeepney stations, friends, and relatives. Games and services offered are displayed

on the shop’s window.

With the growing number of competitors and customers catering to the use of

computer shops, most especially to Pisonet services, one of the foremost strategies

that MJ Pisonet will employ to continuouslly grow the next years and meet the target

goals is to be consistently displaying the most attractive and most widely-played

gaming softwares that are out in the market; the newer the better. This attaction will

create interest and will grab the client’s attention at first glance. Since gaming seems
 to be the most common services that is being catered, tournaments and gaming

competition will be organized in order for more customers and for more clients to

stay longer. Also, advertising other services that would provide for better value for

customers money will be done in order to not only cater to the primary market but

also to the secondary market and the tertiary markets as well.

People strategy

MJ Piso Net will practice a strategic reward system. Currently, the business

does not have employees that are incharge of the day to day management. There

has to be someone who will be in charge of the lookout of these two locations. In

the past, it has been noted that the income can easily be taken out of the slots of

the machines, hence, loss of income was observed. Though there is a current

practice of taking out the proceeds of the day, still, it is necessary of a person to

manage both of these locations to ensure the security of not only the income for the

day but also of the units.

Training the employees that will man the locations with software updates,

maintenance and other computer related skills will eventually prepare them to be

able to offer repair services to competitors and other like businesses in the area.