Central Bicol State University of Agriculture

San Jose, Pili, Camarines Sur

GRADUATE STUDIES
(Marketing Management)

MARKETING PLAN

EHMJHAY Trigona biroi APIARY

Prepared by:

MARY JOY M. PENOLIO

Submitted to:

CRESILDA M. CANING
Course Professor
 I. COMPANY OVERVIEW

Company Mission

To provide a natural and organic health bee products with affordable prices directly

to anyone who is looking for a safe and effective way to keep their body healthy.

Company Goal

To encourage more people to use natural bee products on their health, as opposed

to chemicals that can cause more risks than benefits.

II. MARKETING OBJECTIVES

 To expand products lines and promote to build new markets.

 To expand amount of good quality of hive products (honey, pollen, propolis) sold.

 To work with retail outlets to promote products and build customer loyalty for the

products.

III. THE MARKET

The beekeeping industry is essential to the environment for pollination services and

for the pure natural hive products – honey, pollen, and propolis. Most beekeepers come to

the industry to enjoy the satisfying and interesting work with bees.

Honey and bee products have experienced low prices over the past few years. There

is very little generic marketing of honey and little coordinated consumer education. There

is also no quota or restriction on production. Although most beekeepers focus on honey,

some have expanded into alternate products and into value-added and specially packaged

honey products. Other hive products (pollen, comb honey and propolis) are gaining customer

recognition because of their importance and benefits, especially for health issues.
 There is a need to establish market outlets (farm gate and contracted retail shelf space)

that can handle all the bee products that can be produce.

IV. MARKET TRENDS

Ability to produce additional bee colonies by splitting to satisfy the demand for honey,

pollen and propolis because there is an increasing demand for the produce bee products.

V. MARKET OPPORTUNITIES

There are no other large stingless bee producers in the area to compete for the farm gate

sales of the products. There is also a special promotions for the retail outlets that can

create satisfaction for valued customers.

VI. MARKETING MIX

A. Product

There are three main products that native bees can produce, the honey, pollen and

propolis. Honey is a natural product from plant nectar collected by the bees from the plant.

It contains flavoring agents, vitamins, minerals, oils and enzymes that being used by the

body for activation of its parts especially in digestion. Propolis is a complex substance

which bees produce from pitches of plants, adding the enzymes, and use for disinfection of

beehive, protection against diseases and microbes and also as glue - is strengthened by

walls of sot, close up cracks. It is also possesses numerous health giving qualities which

are long since used in traditional medicine. It has high clinical value and among the bee

products, this is the only one with high anti-fungal and anti - bacterial properties. Bee
 pollen is the pollen ball that has been packed by worker honeybees into pellets. It has

been also touted by herbalists as a treatment for a variety of medical conditions and is

considered an energy food and is sold in natural wellness stores.

B. Place – Distribution Strategy

There are three basic approaches to marketing the honey, propolis and pollen. The

products can sell from the home to relatives, neighbors, and other members of the

community. As the size of beekeeping operation increases, other market outlets will have

to be found. Local groceries, food coops, fruit stands, farmers markets, health food stores,

and roadside markets are good potential outlets. When even larger volumes of honey, pollen

and propolis are produced, the beekeeper may have to pack in large bulk containers and sell

directly to wholesale dealers and packers.

C. Promotion

Promoting the business entails using all available means to get a positive message

to the customers about the products. This can be achieved using a website, signage, and

most common method is through word of mouth. The business sincerely attempts to provide

the customers with a high-quality product in a clean, attractive container. When they do a

good job, the customers return regularly, and they have no problem selling their entire

produce. To have repeat patronage, it is better to sell the products gradually throughout the

year than to try and market all the hive products they produce soon after it is harvested.

D. Price
 Pricing strategy depends on the expenses of the production, from the materials and

equipment up to the packaging process. There is a 30% mark-up and there is also a 20%

discounts as special offer for the valued customers.

E. Packaging

Packaging is another element in the product mix. Since honey can be packed and

marketed in a wide variety of containers, the selection of the appropriate container(s) for

the operation will depend on cost, availability, volume of honey handled, market outlets,

and consumer appeal. It is very important to put time and effort into the construction of the

label. The label becomes as important a part of apiary’s image as does the quality of hive

products. The label may be the hook that creates the purchase and affects the consumer in

his/her overall impression of the hive products. Care should be taken in its design and

implementation.

VII. THE OPERATIONS PLAN

A. Location

The business is targeting the different class of individuals around Minalabac,

Camarines Sur and nearby places in Camarines Sur. The target location of the business is

rich in bee forage like fruit bearing trees, coconut flowering plants etc. and therefore it is

an ideal place for beekeeping development. Since the business depends on the natural

vegetation for nectar/pollen/propolis sources, the richness of natural vegetation assures the

richness of the nectar source and sustains good production.

 B. Hours of Production

Work Schedule: the work schedule should provide coverage for the scheduled
operating hours of the apiary.

Seasonal Job Title: Operator/Manager Job Title: Farmhand

work
Schedule

Monthly wage Wages/Cycle

January-June 5,000.00 3 weeks

(1st Cycle) (200.00/day)

July- 5,000.00 3 weeks

December
(200.00/day)
nd
(2 Cycle)

C. Management and Labor Plan

The business will be a family operated business. It aims to minimize hired labor.

This business is managed by an operator/manager and 1 hired labor/farmhand. A

distribution of the jobs that have to be done will show where there are gaps and where more

help is needed. Hiring can then be based on the needs defined by the business. When there

are changes in the operations, the allocation of the jobs has to be defined and analyzed.

JOB ALLOCATIONS

Position Functions

Operator/Manager - responsible for the final decision in the business

 - takes responsibilities in the position of financial and

accounting management.

Farmhand - take charge for preparation of materials needed in the

production.

- Perform the assigned tasks of the manager.

D. The Production

Production Schedules

Production schedule is very important because it is one way of having the schedule

of the changes in timing and use of facilities you foresee because of new strategies and new

products. The business will start at 100 strong colonies of stingless bees. The table shows the five

year projected production schedules of the business. There is an additional colony for every year

through splitting.

2017 2018 2019 2020 2021

Started from 100 160 colonies 256 410 656

strong colonies, through colonies colonies colonies

through splitting splitting (20% (20% (20%

there are 200 (20% mortality mortality mortality

colonies and mortality rate rate = 410 rate = 656 rate = 1,050

there is 20% = 256 colonies) colonies) colonies)

colonies)
 mortality rate = prepare hives prepare prepare prepare

160 colonies for hives for hives for hives for

prepare hives for production production production production

production 2 cycles of 2 cycles of 2 cycles of 2 cycles of

2 cycles of production production production production

production per per year per year per year per year

year

Production Volume

It shows the production targets that the business want to achieve. It means that there

is a need to anticipate any changes in operating inputs and costs of the entire production.

The table shows the assumptions of the products that will be produced up to five

years.

2017 2018 2019 2020 2021

200 400 800 1,600 3,200

(500ml honey, (500ml honey, (500ml honey, (500ml honey, (500ml honey,
500g pollen & 500g pollen, & 500g pollen, 500g pollen, & 500g pollen &
propolis/hive) propolis/hive) propolis/hive) propolis/hive) propolis/hive)

Honey 160,000ml 256,000ml 410,000ml 500,000ml 500,000ml

Pollen 160kls 256kls 410kls 500kls 500kls

Propolis 160kls 256kls 410kls 500kls 500kls

Honey 160kls 256kls 410kls 500kls 500kls

comb
 Colonies 156 colonies 550 colonies

Capital Purchases Requirements

The table shows the list of equipment and facilities that will need for the entire production

and its expected costs.

Materials/Equipments Quantity Unit Price Total Price

Beehive 100 colonies Php 2,000.00 Php 200,000.00

Land 500sqm 100,000.00

Hive stand 100 500.00 50,000.00

Bottling and Sealing 1 2,000.00 2,000.00

machine

Bee veil/bee suit 2 600.00 1,200.00

Hive tools 3 150.00 450.00

Basin 4 50.00 200.00

Cloth/fine screen 2 150.00 300.00

Smoker 1 1,000.00 1,000.00

TOTAL Php 355,150

FINANCIAL PLAN

EHMJHAY Trigona biroi sp Apriary

 PROJECTED INCOME STATEMENT

2017 2018 2019 2020 2021

SALES

Honey P250.00/bottle P 133,250 P213,250 P341,750 P416,750 P416,750

(500ml)

Pollen P2,000.00/kl 320,000 512,000 820,000 1,000,000 1,000,000

Propolis P 1000.00/kl 160,000 256,000 410,000 500,000 500,000

Honeycomb 160kls x 56,000 89,600 143,000 175,000 175,000

350.00

Colony - - - 312,000 1,100,000

TOTAL SALES 669,250 1,070,850 1,714,750 2,403,750 3,191,750

Less

Selling Expenses

Transportation 3,000 3,900 5,070 6,591 8,568.3

Packaging & Labeling 10,000 13,000 16,900 21,970 28,561

Miscellaneous 3,000 3,900 5,070 6,591 8,568.3

Licenses 2,000 2,600 3,380 4,394 5,712.2

Hive Repair 1,300 1,690 2,197 2,856.1 3,712.9

Marketing/Promotion 4,000 5,200 6,760 8,788 11,424.4

Electricity 200 260 338 439.4 571.2

Water 100 130 169 219.7 285.6

20% gross sales 133,850 214,170 342,950 480,750 638,350

discounts

Administrative Expenses

Operator/Manager 60,000 78,000 101,400 131,820 171,366

(5,000/month)
 Farm hand 7,200 9,360 12,168 15,818.4 20,563.92
(3weeks/Cycle)

Depreciation 512.5 512.5 512.5 512.5 512.5

Loan Amortization 56,000 56,000 56,000 56,000 56,000

TOTAL EXPENSES 281,162.5 388,722.5 552,914.5 736,750.1 954,196.32

NET INCOME 388,087.5 682,127.5 1,161,835.5 1,666,999.9 2,237,553.7

Schedule 1.

SALES

2017 2018 2019 2020 2021

Quantity/Number of Produced Products

Honey P250.00/bottle 533 853 1,367 1,667 bottles 1,667

(500ml) bottles bottles bottles bottles

Pollen P2,000.00/kl 160kls 256 kls 410 kls 500kls 500kls

Propolis P 1000.00/kl 160 kls 256 kls 410 kls 500kls 500kls

Honeycomb 350.00/kl 160kls 256 kls 410 kls 500kls 500kls

Colony 2,000.00/colony - - - 156 colonies 550

colonies

Schedule 2.

Depreciation Cost
Items Amount Life span Depreciation/year

Hivestand 500 5 100

Bottling & Sealing machine 2,500 10 250

Bee veil/suit 600 1 50

Hive tools 150 1 12.5

Basin 50 1 4.2

Fine screen 150 1 12.5

Smoker 1,000 1 83.3

TOTAL 512.5

Assumptions:

1. 30% increase in yearly expenditures.

2. 20% gross sales discounts.

3. 20% mortality rate for every colony that has been divided yearly.

4. In the year 4th year and succeeding operations will maintain 500 colonies. Then the

excess colonies will be sold.