CHAPTER II

MARKETING STUDY

INTRODUCTION

The market is the foundation of every business since it consists of the different

consumers that are potentially attracted to innovations of certain products. It includes

the market potential of the product, the determination of the demand and supply

situation, the needs and wants of the prospective consumers, the market opportunities

as well as the best marketing strategies to capture the market. It is essential also for the

company to understand and take into account the strengths and weaknesses of the

company and be aware of the opportunities and threats that are significant in the

competitive world of business.

The purpose of marketing is to attract attention and create interest. Marketing

can create a brand image, change that image and get people interested in what’s for

sale. Marketing a product or service was once done primarily with billboards and prints

ads and now is often done online and via social media. Marketing efforts, approaches

and messages are constantly evolving. Instead of altering your product to keep up with

changing times and tastes, you can change your marketing to make the product seem

as though it does.
OBJECTIVE OF THE STUDY

MARKET STUDY

1. To determine the market acceptability of the product and competitive position

of the firm

2. To determine the effectiveness and efficiency, as well as stability of the

overall management of the proposed business?

3. To know the technical feasibility of the proposed business that focuses on the

production and operational process of the product?

NAME OF THE BUSINESS

It is the manufacturer’s name of a business. And it is important to know the

names of the manufacturers for them to recognize where the product came from. The

name of a business is identified as RIENHA Manufacturing Inc. it came from the initials

of owners “RI” stands for RIZZA “EN” stands for ENRICO while “HA” stands for HANS.

ANALYSIS OF THE MARKET

A market analysis studies the attractiveness and the dynamics of a special

market within a special industry. It is part of the industry analysis and turn of the global

environment analysis.

Insectssories basically target customers are;

Children. Since Insectssories offer an anti-insecticide that help people to protect

their skin from insect, parent can buy this product for their kids to prevent any diseases.

So, young children are secured from any harmful that acquired from insects. The 5 to 12
age segments are the target group of this Insectssories because they easily prone of

illness specially dengue.

Teens. Accessories is fit for the teens. Why? Because nowadays, teens are

more party goer and explorer. They want something that easy to carry on in terms of

stuff that they need. Teens are hygienic and they want to feel comfortable. Therefore,

accessories is suite for the teens because it is situated in small container and it can be

portable. Further, it can increase their self-esteem to intermingle to other.

SWOT ANALYSIS

The SWOT Analysis is a structured planning method used to evaluate the

strengths, weaknesses, opportunities, and threats involved in a project or in a business

venture. It provides information that is helpful in matching the firm’s resources and

capabilities to the competitive environment in which it operates. It involves specifying

the objective of the business venture or project and identifying the internal and external

factors that are favorable and unfavorable to achieve that objective. The SWOT analysis

was based on the 4 P’s which includes product, place, price, and promotion.

Strength

Strengths are the positive factors which will give the business an advantage over

others. It can be a skill, important expertise, a valuable organization resource or

competitive capability, or an achievement that puts the company in a position of market

advantage. The proponents believe that the proposed product possess strengths that

will be a great factor the feasibility of the product.

 Reasonable Price. The price cost of “Insectssories” is in reasonable price and it

depends on the item that you purchase, but still it is more affordable than the other

accessories and it will be enough to be accepted in the market.

Accessibility of location. Sto. Tomas, Batangas was the chosen site for the

business. It was easy accessibility to the material needs because it nearby the market

which some of accessories materials and elements are there. It is also the place where

a crowd is anticipated, to the consumers would be aware of the new established

business.

Health Benefits. The proponents make it beneficial for the consumer. The

proposed product has a useful value. We offer an anti-insect accessory that help to

protect your skin from some insects that cause some illnesses like dengue.

Grant a Privilege for the Consumer. Indulge a merit for a loyal customer.

Further, membership is one of the advantages that the proponents offer. Because

membership is evidence that the people involve here will be impact of the privilege that

they provide. Membership grants discounts, freebies and so on. But every membership

will charge of 50 pesos. However, the membership will not affect them as a consumer it

can help to save money because they will have a 10% off of discount for every item that

they avail a accessories and give other privilege in the next day would like to purchase

a accessories. However, it is very usable and great help to save money. The other

privilege that the proponents offer to non-member and member is they offer a free

customization for those who avail a package deal product. A regular price for the non-

member and (10% off) discount offer for the member.

 Figure 2.0

Uniqueness of the product. Since “Insectssories” is just new to the market its

distinctive feature makes it unique. Unique in terms of; this accessories are made by

braided straps that can protect you from any insects, offer a customization for labeling

and offer a variety which are the bracelet, necklace, etc. This uniqueness can attract

customers to buy a new product.

Abundance of Raw Materials/Ingredients. The source of mosquito repellant oil

accessories is abundant in which citronella oil, ilang-ilang as a raw material is not

seasonal and distant as well.

Benefits of the Product. One of the best thing about the product is the benefit

that the consumer will get into the product. It is not only for mosquito which is the

primary purpose of mosquito repellant oil accessories but also the natural protection of
the mosquito bites such as for malaria, rushes, and also as dengue of what an mosquito

repellant oil accessories does, it is a anti-mosquito bites.

Cost of Production. It is the main advantage of the firm wherein the proponent

reduces the cost of raw materials. The price of insectssories which is the product main

ingredient is very cheap.

Capitalization. Low capital contribution also gives strengths in this business.

The partnership contribute low capital contribution wherein it gives the edge in forming a

business in a low capitalization.

Weaknesses

Weaknesses are the negative factors that place the business at a disadvantage

relative to the others. It hinders the attainment of the firm’s key result area.

Difficulty of Creating Brand Awareness. In the beginning it is so difficult to

hook the responsiveness of the customer because it is just newly introduced in the

market. Of course, people are more aware of the existing brands than the new brand.

Inexperienced in the business world. For an incipient business it may

encounters different troublesome. This problem is inevitable to every business that is

just starting up in the market. This is how business works and how it is run by the

owner. Thus, this serves as a test if an inexperienced firm will survive be will survive

beyond the hindrances in the business world.

 Product is not popular. As a new product, “Insectssories” does not have an

established. The business is just in the introductory stage of building up good reputation

and goodwill.

Manual Processing. The production of insectssories is processed manually that

it becomes one the weakness of the business. It may cause slow production unlike to

other competing brands.

New entrants. The proponents found out that one of its weaknesses is the

product position in the market since insectssories is newly introduced in the market but

considering it, the weaknesses can presented through special promotion being a new

entrant of the business like the proponent, found a hard time of getting into a track

because of the presence of big and established companies in kind of business.

Opportunity

Opportunities are positive situations which enhanced the company’s position in

the industry (Go, 2007). Market opportunity is a big factor in shaping a company’s

strategies. Indeed, managers can match strategy to the company’s situation without first

identifying each industry opportunity and appraising the growth and profit potential each

one holds.

Innovation. Development and advancement of new product are continually

emerging globally, due to the continuously growing business worldwide. The proponents

are optimistic they innovating new ideas and have uniqueness to make an extraordinary

product that will be prominent to the masses in the future.

 Population Growth. Population increases as time pass by. It never decreases

and this is good news to businesses since there is an increasing need and wants to be

satisfied. This may lead to increase of the demand and sales.

Possible Expansion. Because of the increasing demand for certain product

every business can grow and expand scope of their product. If there will be a market

expansion therefore there will be a possible reflection wherein the product will be known

and it is a good opportunity to stall another certain establishment. This is positive

indication and every business should look forward to.

Vertical Integration. The business may have the opportunity to adapt vertical

integration.

Technological Advancement. Due to technological advancement and modern

ways, the business has the opportunity to elevate its product to the market.

Unending Satisfaction of Customers. The market offers so many varieties of

products from which to satisfy the unending needs and wants of the customers. But still,

customers are insatiable being and there is always a room for satisfaction to be filled.

THREATS

Threats are external conditions that can cause damage to the business’s

performance, directly and indirectly.

Customer Loyalty. It is a threat for a new existing product because they can’t

assure if the customer will try to use or patronize it, since consumer usually buy a
product that they habitually use. Faithfulness of customers to existing products is

inevitable. Customer will always have a second thought in trying a new product.

Rigorous Competition. It’s a threat for every business to have similarities of

product to other competitors because it may consider as a rigorous competition

especially for a newly operated business. The already have established their market

share in the existing market. It is quite hard to get sales percentage in the market.

Unstable Economic Condition. The unstable economic condition might be life

crisis, financial difficulties and so on, may cause of obstruction for any business. This

might be a drawback to the buying and change the regularity of customer.

Inflation Rate. The unstable economy or the dynamic debone of economy will

surely affect the buying decision of buyer towards the product as well as the price of

every commodity. There is probability of inflation and deflation rate, the product is not

secure of the price consistency.

Threat of new entrants. One of the threat of this business is the new entrants of

other competitors that will be threaten to the proposed product.

Threat of substitute. Many existing product and competing product threaten as

substitute to the proposed product.

Changing preference of the existing consumer. Because of the behavior of

the consumer, preferences also changes that makes it a threat to the business.

Changing economic condition. It will affect the cost raw materials and selling

price of the product. It is one of the factors that the company has no control. Strength of
other companies servers as the threats to other. It should be defected for the

preparation of best solution over it.

NAME OF THE PRODUCT

The brand name is one of the most important parts of the product for it can add value.

This will be the means of differentiating the product among others and introducing the

product in the market effectively. It consists of name, sign, symbol, or some combination

therefore. The proposed product was identified as “Insectssories” the combination of

natural insect repellent and accessories a name that can easily be remembered and

interpreted because of a meaningful term. Since accessories is considered as a

necessity of some of an individual. Therefore, it becomes a motivation for the every

consumer. It offers the customers a feeling of satisfaction toward the quality of the

product.

USES OF THE PRODUCT

These are the various Insectssories and it uses;

Natural insect repellent. The proponents will ensures that the consumer will not

cause of any sensitivity because some of consumer experienced a skin allergies, seeing

that they not well fitted on the product that they used. It is just to safeguard consumer

health or skin. This is recommended for consumers who have skin allergies while on the

other side it is opposed to the consumers who haven’t skin allergies, so they can used

it.
 Anti-insect Accessories. A accessories that give assistance from some of

illness particularly are the itchiness, infection and diseases like dengue. This is one of

severe action that should be considered to use of anti-insecticide accessory. It should

be used properly and order to follow the instruction provided. The proponents

recommended using it every day because we can’t take care of ourselves all day from

insect so it very helpful to prevent any diseases that acquired from insect. Specially, the

target market here is the children because parents are basically concerned on their

health. Furthermore, the proponents advise to use it every day because of it strong

aroma of citronella. This is recommended to the users to prevent any allergies or

sensitivity of skin.

USERS OF THE PRODUCT

Any individual can be a user’s of this product the children, teens, and adults.

There is no reason that they cannot use it. Probably, it leans on them whether they wish

to have it or not or either they want other accessories to use it. These are the reason

why people want or not hesitate to use an accessory;

Clothing may make up the majority of an outfit, but accessories are more

significant than you think. You might find yourself spending just as much time shopping

for

And, accessories and clothing have equal significance in accessories as you do

for clothes. Outfit, working together to create an ensemble that expresses your style and

who you are.

MARKETING PROGRAM

BRAND NAME LOGO

Figure 2.1

Our product LOGO is having a background color blue and it is symbolize peace

or peaceful life, and the word "Rienha" it is combination of our name and it's our

business name and our Manufacturing Inc Business. The word "Insectssories" is our

product name, insectssories is the combination of insects and accessories,

insectssories presenting that our product are the accessories of having a mosquito

repellent.
Trademark

Trade mark is use visual images, elements or symbols to get themselves

identified by their consumers. The proposed product has a trade mark of a circular blue

logo containing a words Rienha which stands for our letter of first name. Under this is a

words insectssories which symbolizes our insects repellant accessories complying in

the brand name.

SLOGAN

Figure 2.2

Label

PRODUCT OR SERVICES BENEFITS

Product refers to the goods or services offered to a certain target market to

satisfy their needs and wants. In studying the product, product category, quality and

style, brand and packaging are therefore analyses. A product is everything that one can
receive in an exchange. It is a complex of tangible and intangible attributes including

functional, social and psychological utilities or benefits.

Insectssories is an innovative accessory which focuses in anti-insecticide

accessories because it will help people from their illness owing to insects, but still the

other insectssories are too beneficial to consumer.

The proponents came up with an idea to having a whole set of accessories, in

order to promote the “Anti-insect Accessories” in the market. By having a package deal

product, the proponents see that they will get the sympathy of the customer and it will

be a chance to experience their main product that will bet the start to be recognized in

the market because of its benefits. However, they offer a single item of accessories in

case they can’t afford the whole set of product. Each of it has different interest and use.

Grant a privilege for customer such as discount and freebies. Offering a discount only

for the member and freebies to any consumer who will avail a package deal accessories

and they will be granted a free customization. Further freebies also given every special

occasion like holidays but it depends to the business proposal.

PRICING STRATEGY

Pricing strategy must be appropriate to achieve the pricing objectives. The

proponents chose between two new product pricing strategies: one is market skimming

pricing which is setting high price for a new product to skim maximum revenues by layer

from the segments willing to pay the high price; and market penetration pricing which is

setting a low for a new product in order to attract a large number of buyers and a large

market share.
 The customer is looking for value which is the relationship between price and

quality. They want the lowest a possible price but highest possible quality. It is the job of

marketing to make customers feel they are getting great value. Wherefore the

proponents used the Market Penetration Pricing Strategy that set a low initial price for a

product. Hereby, people will patronize the product because of its lower price that will

eventually result to market growth.

CHANNEL OF DISTRIBUTION

The channel of distribution requires a well-designed mix. It defines how you are

going to move products from point of production to points of consumption in an efficient

and cost-effective manner.

This also relates to where the business is to be put up. The place should be well

planned for better accessibility of the product and easy communication with the

consumers.

Since they’re incipient in business they are not turned into the point that they

retail their product in retailing stores. First, they want to recognize in the market before

they went through retailing products. Hence, the proponents will use one-level channel

of distribution wherein the products will be passed on to the end-users.

 MANUFACTURING

CONSUMER

Figure 2.4

This is shows the distribution channel which starts from the manufacturer who is also

the distributors of goods. Next, the consumers who are end user of a product.

PROMOTION STRATEGY

Promotion strategy plays a vital role when a product is on its introduction stage.

Promotion is the method you use to spread the word about your product or service to

consumers, stakeholders and the broader public. Once you’ve identified your target

market, you’ll have a good idea of the best way to reach them.

To implement the promotion strategy the proponents must analyze every aspect

of promotion that they need to consider in their management. Proponents wants to

undergo to use a mix of advertising, personal selling, referrals, sales promotion and

public relations to promote their products.

MARKETING COSTS AND EXPENSES

In every business marketing costs and expenses are important in order to run

well. A marketing expenses is very important consideration for all business because it

really difficult for a business owner to understand the significance of marketing expense,

it’s accounting definition, marketing expense management and tax treatment. Typically,

some common marketing expenses including marketing salary, marketing research,

promotion and advertising cost and if there’s a marketing expense there is also a

marketing cost may include expenses of associated with transferring title of goods to a

customers and promoting goods and services being sold.