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municipality of Bayambang. Moreover, it’s all about the business profitability and

building a customer’s loyalty.

Marketing Segmentation

The overall aim of segmentation is to identify high yield segments – those

who buy or be induced to buy the product and also to develop profiles of key

segments in order to better understand their needs and purchase motivation by

dividing them into different categories.

Demographics

Any gender can be our demographics but we are targeting the children

and students, who are the usual consumers of yema and polvoron. Additionally,

anyone can also be our demographics as long as they are fond of desserts.

GENDER

Male Female “In-between”

Table 7. Profile of the Respondents by Gender

AGE

Children 6-11 years old

Students/Teenagers 12-22 years old

Table 8. Profile of the Respondents According to Age

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Psychographics/Behavioral

Psychographic segmentation groups customers according to lifestyle.

Consumer’s demand in nutritious products are increasing and growing the health

conscious attitude. With their income, for them, it does not matter if the product is

expensive because they think more about their body’s benefits.

Marketing Program

The marketing program is very important in proposed business to

generate profit. It leads you to achieve your objectives. This involves the

profitability of this project by initiating a deal to different retailers like CSI,

Puregold, Magic, and in the market. This will help to manage the business

effectively and efficiently and be productive by training the workers to be

monitored by production supervisor.

Target Market

A target market is the market a company wants to sell its products and

services to, and it includes a targeted set of customers for whom it directs its

marketing efforts. Identifying the target market is an essential step in the

development of a marketing plan. A target market can be separated from the

market as a whole by geography, buying power, demographics and

psychographics.
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The business attempts to satisfy the following entities:

a. Household- A member of the family who are the usual buyers in the

market.

b. Student/Children- It refers to those who love sweets.

c. Retailers- Retailers are individual or firms that buy goods from the

producer and sell it to the final consumers.

d. Netizens – These are the people who frequently use the internet, the

ones who will be informed with the online advertisement of the business.

Key players and Competitors

This is the critical part of a business activity because in here the

proponents need to analyse competitors to think of some techniques and

strategies in order to gain more customers. It is an assessment of the strengths

and weaknesses of current and potential competitors. Directly or indirectly,

competitor’s analysis is a driver of firm’s strategy and impacts on how the

business act or react in the competition.

The business is the new player in the market which desired to gain

profit and famous in the Municipality of Bayambang. The competitors of the

business were those locally made desserts that are already circulating in the

market. And so, the new player in the market worked hard in introducing the

products in the market and won the customers attention and let them personally

tried the nutritious Yempolaya.

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Marketing Mix

The marketing mix is a crucial tool to help understand what the product or

service can offer on how to plan for a successful product offering. The marketing

mix is the most commonly executed through the 4P’s of Marketing: Product,

Price, Place and Promotion. The use of marketing mix is an excellent way to help

ensure that putting the right product in the right place will happen. Marketing mix

is a combination of marketing tools that are used to satisfy customers and

company objectives.

According to Philip Kotler, “Marketing mix is the set of controllable

variables that the firm can used to influence the buyers response.

Product

Product is either a tangible good or an intangible service that is seem to

meet specific customer’s need or demand. It is a key to understand those

problems that the product is to attempting to solve. The product offered is

Ampalaya Yema-Polvoron which contains nutrients.

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Table 9. Active Ingredients of Yempolaya

Ingredients Unit Price

Ampalaya Fruit 4.17 g ₱ 0.33

Sugar 4.17 g ₱ 0.27

Condensed Milk 5 mL ₱ 0.98

Powdered Milk 1.10 g ₱ 0.27

Vanilla Extract 0.167 tbsp. ₱ 0.083

Flour 4.17 g ₱ 0.13

Buttercup 3.33 g ₱ 0.65

Price

Price covers the actual amount; the end user is expected to pay for a

product. How a product is priced will directly affect how it sells. The price of

yempolaya per piece is worth of ₱7.288944289. The proposed business uses

two strategies:

a. Cost – Plus Pricing Strategy

It refers to a cost based method for setting the prices of goods and

services. It is also called as markup pricing or it is the practice by a company of

determining the cost of their product to them and then adding a percentage on

top of that price to determine the selling price to the customer.

Purchased Cost = Operating Cost + Mark Up = Selling Price

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Table 10. Pricelist of Yempolaya per piece

Yempolaya (1 piece)

Unit Amount Mark-up

Ampalaya Fruit 4.17 g

₱ 0.33
Sugar 4.17 g
0.98
Condensed Milk 5 mL
0.27
Powdered Milk 1.10 g
0.083
Vanilla Extract 0.167 tbsp.
0.13
Flour 4.17 g
0.27
Buttercup 3.33 g
0.65

Equipment 0.091658

Water and Electricity 0.17

Labor 1.11
Packaging (Cellophane
Wrapper & Transparent
Plastic Box) 1.52
₱ 5.606880222

130%
Selling Price ₱7.288944289
100%
Cost Of Sales ₱ 5.606880222
30%
Profit ₱1.682064067

The company applies a standard 30% mark up to all of its products.

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b. Price Skimming

We use this pricing strategy to emphasize the uniqueness of the product

by setting high price because our product offered is made from organic and

natural ampalaya, in that way the business will earn more profit and attract more

competitors in the market.

Table 11. Competitor’s Price

Leading Competitors Amount (per pack)

Brand X ₱40

Brand Y ₱20

Brand Z ₱130

Yempolaya ₱30

Note: Per pack of our product is composed of 4 pieces.

Place

Place or Placement has to do with how the product will be provided to the

customer. Distribution is a key element of placement. The placement strategy will

help assess what channel is the most suited to a product. How a product is

assessed by the end user also needs to compliment the rest of the product

strategy.

The proposed business is located in J. Luna Street, Poblacion Sur,

Bayambang, Pangasinan. The location was chosen in consideration of the

availability and accessibility of the Yempolaya to the dealers and retailers.

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Distribution Channel

Figure 4. Channel of Distribution

As the figure above, it shows the distribution channel. The manufacturing

is a company that produces goods in large numbers. Yempolaya is the producer

who may sell and contact to wholesalers and also to retailers. The wholesalers

are an individual who act as the intermediary between the manufacturer and the

retailers. They carry a thousand of finished products in a warehouse where they

are quickly delivering to the retailers. The retailer is a business that sells goods

directly to consumer and makes them easier to buy and use products. Retailers

such as CSI, Puregold, Magic and etc., have a direct contact with wholesalers

and manufacturing which is Yempolaya production. The consumers are the final

users of the product who buy goods from retailers.

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Promotion

This refers to any type of marketing communication used to inform or

persuade target audiences of the relative merits of products, services, brand or

issue. It includes all activities that tell or inform the target customers. The aim of

promotion is to increase awareness, create interest, and create brand loyalty..

To be able to promote and inform the target market of Yempolaya Production

the proposed business uses two promotional strategies:

a. Sales Promotion

Sales Promotion like Flyers, Free Taste, this would help to attract customers

and increase the sales.

Figure 5. Business Flyers

Delicious Polvoron crusted with Ampalaya-Yema. Try it now!

Located @ J. Luna Bonifacio St., Bayambang, Pangasinan
Contact Person: 09388202602 / 09500501373
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b. Online Advertisement

The proposed business will use social networking activity by making use of

fan page on Facebook.. It is because people nowadays are using online or social

media. This strategy will help the business to recognize and patronize the

product.

PEST Analysis

PEST Analysis stands for Political, Economic, Socio – Cultural and

Technological analysis; it describes a frame work of macro environmental

scanning component of strategic management.

The proposed business will use the PEST Analysis over other tools

because it fits on the organization and it considers its environment before

beginning the marketing process.

Political Factors- Include government regulations and legal issues and

define both formal and informal rules under which the firm must operate.

The business will follow all the regulations to avoid conflict. Also,

Bayambang, Pangasinan is driven by good governance. The local government

also prepares programs to help indigent people and approve certain proposals.

They also practice a moderate level of issuing its permit and other requirements.

Economic Factors - affects the purchasing power of potential customers and the

firms cost of capital.

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Our product helps to improve the economy. It will provide employment and

income to the municipality of Bayambang. Once that it became popular to the

customers, the area of the business will also be known. The proposed business

will operate in peaceful, harmonious, and accessible place which easily attract

customers. It will offer affordable yet quality products.

Socio – Cultural Factors - includes the demographic and cultural aspect of the

external macro environment. These factors affect customer needs and the size of

the potential market.

The product offered by the proposed business will develop the health

consciousness of the customers, mostly because of its health benefits. The

uniqueness of the product also offers a new way to communicate with the

consumers.

Technological Factors – Can lower barriers to entry, reduce minimum efficient

production levels, and influence outsourcing decisions.

Technology support is now trending to any business that may help to

develop, enhance and make the operation accessible. The proposed business is

open to the new standard technology to improve more the product. We offer

innovative products and technology is used to promote it like using the social

networking sites and flyers.