Professional Documents
Culture Documents
Marketing Plan
for
This Market Study on Dielle’s Apiary and Meadery Enterprises was submitted on
September 12, 2010 as part of the Requirements in TM 206
Technology Marketing and Commercialization
This Industry Study was conducted by
JOSIE D. ALBAO
DANILO M. GACUSAN
HECTOR M. TIBO
TABLE OF CONTENTS
2X
Page
Cover Page 2
Table of Contents 3
List of Acronyms 4
List of Tables 5
List of Figures 6
I. Executive Summary 7
II. Introduction 9
V. Marketing Strategy 28
A. Marketing Objectives 29
B.. Financial Objectives 29
C. Positioning 29
D. Strategy Summary 29
VIII. Financials 33
A. Sales/Revenue Forecast(s) 33
B. Marketing Expense Budget(s) 34
C. Break – Even Analysis 35
D. Profit and Loss Analysis 35
3X
IX. Controls 36
A. Implementation 36
B. Marketing Organization 44
C. Contingency Planning 44
X. Bibliography 46
LIST OF ACRONYMS
4X
DA – Department of Agriculture
DOST – Department of Science and Technology
DOST – SETUP - Department of Science and Technology – Small and Medium
Enterprises Technology Upgrading Program
DOT – Department of Tourism
DTI - Department of Trade and Industry
FIES - Family Income and Expenditure Survey
IFEX – International Food Exhibition
ISO – International Organization for Standardization
MSME – Micro, Small and Medium Enterprises
NSTW – National Science and Technology Week
PAGASA – Philippine Atmospheric Geophysical and Astronomical Services
Administration
PIFBEX – Philippine International Food and Beverage Expo
SM – Shoemart
STII – Science and Technology Information Institute
TAPI – Technology Application and Promotion Institute
UPLB – University of the Philippines Los Banos
URC – Universal Robina Corporations
USCB – United States Census Bureau
WSAP – Wine and Spirits Association of the Philippines
LIST OF TABLES
5X
LIST OF FIGURES
I. EXECUTIVE SUMMARY
This marketing plan for Dielle’s Apiary and Meadery honey wines was
prepared using the key ingredients of the marketing management process that
can guide marketing activities. The first part involved scanning the current
7X
The second part centered on the analysis of the environment - macro and
micro - and discussion of the competitive strategy to be used. The highlights of
the environmental analysis showed that the principal drivers of wine consumption
in the world are tradition, culture, lifestyle and health, and economic status. Also,
it showed that a direct relationship exists between population and wine
consumption. Financial capability was also shown to be a factor in wine
consumption. A recent technological breakthrough that uses immobilized cells of
Hansenula anomala in the production of mead capable of shortening mead
production cycle was identified.
There are also two key Philippine legislations that presented that directly
affect the wine industry - the Revised Sin Tax Bill or Republic Act 9334 and the
Retail Liberalization Bill. RA 9334 imposes a PhP17.47 tax per liter for wines with
14% alcohol by volume and below (where Dielle’s wines are categorized). The
latter law enabled foreign retailers to enter the wine industry resulting in the
increase of wine retail outlets in the country and encouraged the entry of more
imported wines in the country. Consequently, indigenous Philippine wines face
stiff competition from these imported wine brands.
Next, a marketing strategy was laid down consistent with the firm’s goal to
make a strong and successful business of honey wine production in the
Philippines and eventually establish an export market for another quality product
that is proudly “Pinoy”. The marketing objectives include the following:
8X
Financial objective on the other hand is geared towards the increase of sales and
profit of the firm by 200% in 2011. The marketing strategy crafted will be a low-
cost strategy at the onset based on the projected fiscal position of the firm but will
gradually shift to better-funded activities as the firm establishes its foothold in the
industry. Such strategies will emphasize launching a significant presence in the
world wide web through the various media available such as social networking
that are basically free advertisement. It will also include publication of product
brochures; participation in local exhibit, trade fairs, and food expositions;
sponsorship of wine appreciation events for media people; appearances in
national tv programs; product tours; product visibility in bartending competitions;
and networking with private companies.
A marketing mix was developed utilizing the 5Ps strategy. The product
will be presented as a better alternative to imported and indigenous wines.
Packaging and labelling should suit the product’s image and should appeal to the
target market segment, mostly comprised by discriminating and intelligent
consumers. Derivation of price is based on the product’s high value due to the
presence of honey- its main ingredient that distinguishes it from its competitors.
The price should not be established within the range of its nearest competitor-
local fruit wines but within the mid-priced wines offered by imported brands. The
channel of distribution was carefully evaluated based on the positioning of the
product, hence, it is deemed proper to market them initially in three major cities:
Metro Manila, Cebu, and Davao and leading tourist destinations like Boracay and
Camarines Sur. The wines will be sold in major wine stores like Ralph’s Wine
and Spirits, selected 3-5 star hotels and restaurants, and big malls like SM. In
support of all this identified marketing mix, Dielle’s should strive to firm up its
organization by building a working environment that would allow its workers and
staff to partake in the creative process of producing honey wine and in putting up
a good image within that can be translated to consistent quality products.
Marketing research was done using secondary data. Studies showed that
Filipino wine consumers are partial to drinking white wine, but has shown
increasing patronage of red wine echoing the so-called “French Paradox”. Also,
price is the main consideration of Filipinos’ wine buying decision. These
considerations are weighed in the light of honey wine being an exotic health wine
and a novelty product being its competitive advantage.
9X
II. INTRODUCTION
Why Dielle’s?
This paper analyzes Dielle’s Apiary and Meadery Enterprises in the context of the
marketing concepts in TM 206 (Technology Marketing and Commercialization). The
group selected Dielle’s Apiary and Meadery Enterprises for the market study because of
the uniqueness of its products, having big potential to gain local market leadership and
global competitiveness. Dielle’s does not have a concrete marketing strategy at present,
10X
making it an ideal firm for the market study. The market plan developed can be adopted
and used by the firm to realize its goals and objectives.
The firm
The owner wanted to increase its production capacity in order to supply the
increasing demand and later, able to export the product to other countries like Japan and
Korea. It is for this reason that the owner applied for assistance from the Department of
Science and Technology-Small and Medium Enterprises Technology Upgrading Program
(SETUP) in 2009. Incremental innovation was provided in the form of the 20 units
ageing tanks and packaging and labelling assistance through the Packaging Research and
Development Center (PRDC) under the Industrial Technology and Development
Institute. This will hasten and increase the production volume of the firm and also spice
up the product’s overall look.
The purpose of the paper is to steer Dielle’s towards a more active and aggressive
concrete marketing strategy that will enable it to strengthen its position in the local wine
industry and achieve greater levels of profitability for the next three years. Increase in
sales and profit of the firm by 200% in 2011 is desired. It will eventually enable the
Dielle’s to compete in the market that is dominated by foreign brands. The ultimate goal
is to make a strong and successful business of honey wine production in the Philippines
and eventually establish a global market of a product that is proudly “Pinoy”. The paper
focused on the following specific objectives:
The Marketing Plan is organized into several sections. The first section deals with
scanning the current market situation. A detailed SWOT analysis is presented to evaluate
11X
Dielle’s capability as a firm and weigh its readiness, particularly in competing in the wine
industry that is currently dominated by foreign brands. Primary data were obtained
through the conduct of interview with the owner and physical visit to the production site.
Porter’s Value Chain model was highly effective in our analysis and in the preparation of
the market plan. The major market segment identified for honey wine includes working
men and women belonging to the middle to high income bracket and many of whom are
young urban professionals. Tourists and balikbayans are also target markets.
The second section analyzes the macro- and micro-environment affecting the firm
and the recommended marketing strategy. Several factors were in play that affects
Dielle’s - either in a positive or negative way. Legal issues, policies, technology, and
conditions were discussed. There were several methods used in order to provide a
thorough analysis of the situation. Data were gathered and obtained from various
references including books, journal articles, related market studies, direct connections,
and the internet. The identified best competitive strategy for Dielle’s is to be a niche
marketer because it will achieve high margin. A low-cost strategy was crafted based on
the projected fiscal position of the firm, but the strategy will gradually shift to more the
firm establishes its foothold in the industry.
Section three presents the marketing mix, which was developed utilizing the 5Ps
strategy. Secondary data were obtained, analyzed, and used to come up with the plan and
recommendations. Dielle’s honey wine was presented as a better alternative to imported
and indigenous wines. This is somewhat one of the most difficult sections of the plan
because it will essentially determine and dictate how the product will be positioned in the
market to in order to achieve the desired objectives. Secondary research data were studied
and methods and strategies applicable to Dielle’s were adopted for the plan.
In the fourth section, financial analysis was presented wherein sales and profit
were calculated based from assumptions resulting from the marketing implementation.
The computation showed that an effective marketing plan is essential to the realization of
the financial objectives of the firm.
The last section of the plan is the Controls wherein the implementation and the
control mechanisms were presented aimed at ensuring that the desired results are
achieved including the contingency measures to ensure success. Milestones were likewise
tabled to guide the firm.
The market plan presented in this paper is basically an analysis of Dielle’s Apiary
and Meadery Enterprises and solely applicable for the said firm. The plan does not
12X
A. Market Overview
The country relies heavily on imported wines from USA, Australia Spain,
Australia, France, Chile and South Africa to name a few. In 2008, total wine
imports of the Philippines grew to 6,552,758 liters, worth over $12.3 million in
value - a leap of 16.7 percent in volume and 30.9 percent in dollar value from that
of 2007. (Figure1.)
14X
38% 33%
United States
Spain
Australia
Others
12% 17%
world wine production consumption and trade involve Europe and the rest
involves just a handful of New World countries like United States and Australia.
There has been a noticeable shift to wine in the past few years, as there is
an increase in wine appreciation and consumption. The health benefits of wine
16X
was first discovered and spread in the 1990’s after studies on the “French
Paradox” was reported. Studies revealed that mortality levels provoked by
coronary artery disease are much lower in France than in other industrialized
countries even though the consumption of fats is much the same and blood
cholesterol levels are generally higher. Justifiably, this is because French
considered red wines staple in their diet.
Being a tropical country, Filipinos preferred chilled white wine over red
wine. However red wine’s popularity surged following its low introductory prices
compared to white wines. The Philippines’ total red and white still wines
importation is 98% of total wines imported. (www.austrade.gov.au/ Wine to the
Philippines)
The growth of the local tourism industry in the past years triggered
increase in wine demand. Tourists consume wine in some fine dining restaurants
and high-end drinking establishments, including wine bars, bars and
entertainment outlets. Nightclubs can be a key distribution channel for imported
wines. These outlets commonly sell house wines (pouring wines) and bottles
ranging from standard wines through premium quality Old World and New World
wines.
B. SWOT Analysis
17X
Honey wine is new and unpopular in the Philippines and in most Asian
countries. Honey wine is more popular in China, Greece, Spain, Germany,
Ethiopia, and the Balkan countries. Dielle’s Apiary and Meadery Enterprises is
therefore faced with many challenges in producing and marketing the honey wine
in the Philippines. Below is the summary of the SWOT analysis:
1. Strengths
Local competition is not tight since Dielle’s is the only honey wine and
honey-flavoured wine producer in the country
Product has world-class packaging materials
The owner produces its own honey which is the most important raw
material of the product
As member of the Bee Keepers Association of the Philippines firm is
assured of steady supply of honey
Strong technical support from government (DOST, DA, UPLB)
including product development
2. Weaknesses
3. Opportunities
4. Threats
1. Competitive Environment
For the purpose of coming up with this marketing plan, Dielle’s product
will be compared with fruit wines produced in the Philippines. Among the known
fruit wine producers in the country are Mijiah Tropical Fruit Wines, Federico’s
Bignay Wine, and UPLB Food Science Cluster. Mijiah is now a wine exporter.
Wines from these producers are generally priced PhP250.00 to PhP300.00 per
750 mL bottle. Table 1 shows the prices of other locally-produced fruits wines in
the Philippines.
(750mL)
Ilocos Region Basi or sugar cane
wine (750mL)
Duhat wine (750mL)
Cagayan Layaw (corn spirit)
Tomato wine
Benguet Strawberry wine
cherry wine
Cavite Brewed coffee wine
(750mL)
Existing or new firms can easily enter into the competition of honey wine
production. Being the pioneer however, Dielle’s has a distinct advantage
because it has already perfected the technology of honey wine production in
seven years. Moreover, Dielle’s is producing its own honey. Fruits like mango,
duhat, and bignay are abundant when they are in season. Dielle’s could choose
to introduce fruit flavours to their mead in accordance with the seasonal
availability of these fruits. Introducing other variants such as guyabano, jackfruit,
and exotic herbs can be made the subject of further product development.
BARGAINI THREAT
NG OF NEW
POWER OF ENTRANTS
CUSTOME Dielle’s
RS Apiary
&
Meader
Company’
y is the Consider
s bee
Harvest
farm is lone ing the
of duhat,
the main produc perceive
Bottle,
bignay of
source , er of d health
shrink
and
honey honey benefits
caps,
mango cork
BARGAINI is COMPETIT
wines THREAT
of fruitOF
and labels
seasonal
NG inIVE
the SUBSTITUT
wine,
are
POWER OF RIVALRY E
there
country
imported
SUPPLIERS WITHIN PRODUCTS
are lots
from US AN of
INDUSTRY substitut
es like
fruit
juices,
fruit
teas, etc.
D. Product Overview
mango mead, duhat mead, and bignay mead. The products are categorized as
fruit wines because it has 12% alcohol content. The wines are bottled in 400mL
elegant bottles. Price ranges from PhP270 to PhP280 per bottle. The wines are
registered on BFAD (Bureau of Food and Drugs) on 2007. The quality of honey
depends on the viscosity of the plants surrounding the honey farm. The wines
composed 30% to 40% of honey as sweetener. At present all the firm’s produce
are marketed locally.
1. Traditional Mead
It is made from the finest honey available (mostly from mango
flowering season harvest). It has gemlike clarity in a consistent bright
golden color. It is the bestseller among the four variants during tasting
sessions. Undertone of honey is pungently noticeable. It is acomplex
voluptuous mead in every sense. Moderately sweet and should be served
chilled.
22X
2. Mango Mead
It is made from Philippine ripe mango (carabao variety) and honey.
It has gemlike clarity in a consistent yellowish golden color. Mango fruit
taste is mildly strong. Undertone of honey is moderately noticeable.
Moderately sweet and should be served chilled.
3. Bignay Mead
It is made from Philippine wild berry (locally know as bignay). Color
is red and it is slightly darker than the duhat mead. Equally intense fruity
aroma with refreshing acidity and the undertone of honey cannot be
missed. Moderately sweet and should be served chilled.
4. Duhat Mead
It is made from Philippine plum (locally known as duhat) and honey.
Color is ruby red with tinges of purple when held to a white light evocative
to the color of the flesh of the duhat fruit. Initial aroma is strongly fruity with
undertone of honey. It is moderately sweet and should be served chilled.
The raw materials in making honey wine are honey, water, and fruit
extracts. Fermentation takes 45 days and the ageing is at least 6 months. The
bottles, shrink caps, and cork are imported from the US and purchased in bulk.
The labels are made European style to make a world-class impression to the
wine. Figure 5 shows the Value Chain Analysis for honey wine.
The top management of Dielle’s believe that they have a good quality
product in their honey wine. Communicating this belief to their intended market is
the main key to success. In addition, Dielle’s must also ensure total customer
satisfaction by warranting the consistent production of quality honey wines
through its strict adherence to production and packaging standards. Continuous
product innovation could also be an important factor to develop customer loyalty
and expand market reach.
As a start up firm in honey wine production, Dielle’s should watch for the
following critical issues:
A. Macroenvironmental factors
6.6 bottles per year. Consumption peaks annually at 16.4 bottles. The country
with the highest wine per capita consumption is Luxembourg with over 6.1 liters.
Philippine’s wine per capita consumption, however, is still just below a
tablespoon or only 7.3 mL.
Red wines are perceived to be healthy drink because of its “good for the
heart” qualities. This is known as the “French Paradox”. A study published in the
Journal of Food Quality and Preference reveals that more humans prefer sweet
wine than dry or any other kind of wine. This is because preference for
sweetness develops early in humans. Aside from the fact that Dielle’s wine is
based from honey, and not sugar, it is flavoured with natural fruit extracts
resulting in the sweet flavour in wine. All these will influence the marketing plan in
a positive way and will give better opportunities for Dielle’s in keeping and
expanding its markets.
The recent hostage crisis last August 23, 2010 that took the lives of some
Hong Kong tourists may affect Philippine tourism industry. There can be a
decline in the volume of tourists coming in the country. Although many are saying
that the incident is localized. Based from the 2008 NSO report, there were a total
of 2,944,135 tourists who visited the country. If indeed the international
community looked at the incident as localized, there will be no dramatic effect in
the volume of tourists in the country. More or less, it will remain the same. If
change will indeed happen, only a small volume change will be realized. As such,
major tourist destinations such as Boracay, Cebu, Palawan, and Davao will still
be frequented by foreign and local tourists. Therefore, there is still a market for
Dielle’s honey wines in these particular places.
However, there are recent technologies that may affect Dielle’s marketing
plan. In a study conducted by Qureshi and Tamhane and published in the
Journal of Applied Microbiology and Biotechnology Volume 23, the process of
immobilization, use of dual cultures and series reactors reduced the time period
of mead production and eliminated the costlier aging process. Also published in
the journal Volume 27 by the same authors, the use of immobilized cells of
Hansenula anomala in calcium alginate gels enables the quick production of
matured mead by a single culture and the elimination of the traditionally used
long aging periods. These technologies, if soon commercialized and adopted,
may affect Dielle’s marketing plan. It will affect Dielle’s in a positive way if the firm
will eventually adopt the technology in its production in order to increase and
26X
There are existing government laws and regulations that affect the firm. In
January 2005, the revised Sin Tax Bill or Republic Act 9334 was implemented in
the Philippines. This imposed excised taxes on alcohols and tobacco products.
For spirits and wines, taxes were collected on per liter volume capacity. For
wines, a PhP17.47 tax will be collected per liter for wines with 14% alcohol by
volume and below, and PhP34.94 tax per liter will be collected for wines with
above 14% but below 25% alcohol. Because Dielle’s honey wine is 12% alcohol,
a PhP17.47/liter tax should be collected. Presently, Dielle’s is not yet affected by
this specific law because the firm is considered as MSME. However, once the
firm expand it will be covered by this law, therefore it can affect the marketing
plan because production price will be affected. In 2000, the Philippines passed a
Retail Liberalization Bill, enabling foreign retailers to enter the wine industry. This
move is expected to encourage growth in retail outlets. This will have a negative
impact on Dielle’s marketing plan as it has to compete with many foreign brands,
which are already established brands and more familiar to the Philippine market.
B. Microenvironmental factors
The raw materials for honey wine production are basically honey, water,
and yeast. Dielle’s produces its own honey from its bee farm located in
Muntinlupa and Las Pinas cities in Metro Manila, and Lipa and Tanauan cities in
Batangas. Dielle’s processes 10% of the total honey harvest into wine. Thus, it
has assurance of supply of raw material. Dielle’s also buys some of the raw
27X
Source of bottles, corks, and shinkage caps will be the main problem for
Dielle’s as these materials are sourced out abroad and by volume. Therefore, big
capital is needed for bulk importation. Should suppliers of these specific
materials would have a shortage or if suppliers prioritize other buyers, Dielle’s
production will be highly affected. Therefore, Dielle’s must build a strong
partnership with its suppliers if it plans to order from them continuously. Custom
duties and other importation procedures may cause slight problems, too.
Dielle’s can also try to source for domestic bottle producers. This can be
possible as Dielle’s is using generic 400 mL-capacity bottles; it is not custom-
designed for them. Dielle’s can build business alliance with other companies or
MSMEs that use the same bottle to be able to come up with the minimum order
required by the local bottling maker like San Miguel Bottling Corporation or Right
Pak. This will lower the capital cost required because the bottle will be
transported locally.
Dielle’s does not have any competitor if we based the wines in the current
market in terms of raw materials. Dielle’s is the lone producer of fruit wines using
28X
honey in the fermentation process. . Other Philippine producers of fruit wines use
sugar instead, which is the most common raw material. There are already a
number of fruit wine producers in the Philippines coming from seven provinces –
Ilocos, Laguna, Cavite, Cagayan de Oro, Cordilleras, Nueva Ecija, Quezon and
Benguet. They use almost the same fruits like mango, bignay, duhat, pineapple,
and rice. Dielle’s has its own mango plantation. Therefore, supply of mango for
Dielle’s mango-flavored wine will not be a problem. However, for other fruits like
bignay and duhat, Dielle’s has to establish a strong partnership with its supplier
to ensure a steady supply of these fruits especially during lean months because
these fruits are seasonal.
There are no existing defined channels for Dielle’s at present. Dielle’s four
variant products are not sold in formal business establishments but only
networking and occasional participation in trade fairs and exhibits. The former is
done through its link with UPLB Food Science Sector, personal connections, and
corporate networks. The present networks only provide Dielle’s a limited
presence only in Laguna, Metro Manila, and Zamboanga.
C. Competitive strategy
Firms with low shares of the total market can become highly profitable
through smart niching. Such companies tend to offer high value, charge a
premium price,achieve lower manufacturing costs, and shape a strong corporate
culture and vision. (Kotler 2003) Dielle’s will follow a competitive strategy as a
niche marketer because it can achieve high margin. It can attack initially small
local and regional firms that are not doing a good marketing job. It is not yet in a
financial position to launch an attack to the market leaders, which in this case,
are the imported wines. It has to innovate continuously so that when it begins to
weaken, it will have the capability to offer a new product which may not be
necessarily sticking to its niching strategy.
Dielle’s can do well also to strengthen its supply chain through the
constant monitoring and scouting of additional sources for quality raw materials
especially the suppliers of fruits. Bignay for example can be sourced out from
sources outside its present network. It needs to build up its own apiary to prepare
for the increased demand for honey- its major ingredient.
V. MARKETING STRATEGY
A. Mission
Currently, Dielle’s Apiary and Meadery Enterpises does not have a definite
marketing strategy. There is no existing Mission, Vision, and Objectives, but the
owner of the family-owned company is very clear about what they want to
achieve: to make a strong and successful business of honey wine production in
the Philippines and eventually establish a global market of a product that is
proudly “Pinoy”. It is therefore the main mission of the marketing plan. Dielle is
already practicing the 5 S’ as shared by a Canadian bee keeper, which is already
a good start towards attaining international standard and ISO accreditation.
B. Marketing Objectives
C. Financial Objectives
The main financial objective is to increase revenue and profit of the firm by
200%
D. Positioning
30X
E. Strategy Summary
The marketing mix involves how the product line of honey wines will be
priced, promoted and distributed, and other such factors that may affect the
overall impact of the product to the customers. The following marketing mix is
attuned to the choice of market segment for the product.
A. Product
The honey wines that come in four variants (premium, bignay, duhat, and
mango) should be well differentiated in the minds of the target market. It should
be well packaged with an excellent artwork. Design on the labels should be
simple yet should very well articulate the brand name and brand reputation. It is
also highly essential that the right color and logo are used. The firm needs to
review its present packaging against those of its competitors - the local fruit
wines and mid-priced imported wines and see where the packaging can be
further improved. The size of the bottle shall be maintained at 400 mL.
B. Pricing
The honey wine should be perceived as having high value due to the
presence of honey. It is main ingredient that distinguishes it from its competitors.
Therefore, the price should not be established within the range of its nearest
competitor- fruit wines. Looking at the break-even cost of the product the price
per 400 mL bottle for the four honey wine variants can be established as follows:
Bulk purchase will be given discount. Honey wines can be bundled with
the firm’s original product- honey, which is sold at PhP 150 per 250mL.
C. Promotion
D. Channel
By 2012, the products will have presence in three major cities: Metro
Manila, Cebu, and Davao and leading tourist destinations like Boracay and
Camarines Sur. The wines will be sold in major wine stores like Ralph’s Wine
and Spirits, in selected 3-5 star hotels and restaurants, and big supermarkets
like SM.
32X
E. Service
After sales service will only be limited to providing warranty for the product
in case customers find physical defects in the bottle or when unwanted impurities
are found in the wine. A mechanism should be employed for the total refund to
the customer at the point of sale.
Dielle’s should indicate its website in the wine label to facilitate product
orders, customer feedbacks, and interaction.
F. Internal Marketing
All the employees and staff of Dielle’s should be aware of the goals of the
firm. They should internalize the core values of the firm, be motivated to have
their own initiative, and contribute to the making of creative solutions to internal
problems. Continuous training and learning should be encouraged among the
firm’s employees and staff. Top management could set aside an emergency fund
to its workers in case they have financial problems.
However, more Filipino consumers are shifting to fruit wines that are
perceived to provide more health benefits than ordinary wines. Local fruit like
“bignay” are known to possess flavonoids which act as antioxidants that prevent
cancer. Its reddish to purplish color is induced by its anthocyanin which is also an
antioxidant and possess potential health effects against cancer, aging,
neurological disease, inflammation, diabetes, and bacterial infections. Bignay
wine is the bestseller among fruit wines in the country.
33X
VIII. FINANCIALS
A. Sales/Revenue Forecast
Sales
Forecast
Particulars 2011 2012 2013
Total Sales 2,868,750.00 5,488,000.00 11,020,000.00
Direct Cost of Sales 1,807,988 3,347,800.00 6,701,500.00
The sales forecast shows that Dielle’s could be ready for direct exporting
by 2014. Direct export requires a minimum of 10,000 bottles per order.
34X
Period
Particulars Q1 Q2 Q3 Q4 TOTAL
50,00
Devt. of Marketing Concept 0 50,000
Website Enhancement &
Subscription (Globe Bus.
Solns.) 10,000 4,500 4,500 4,500 23,500
25,00
Media Event 0
150,00
Printed Materials 0 150000.00
Participation in Local Trade
Fairs & Expo 25,000 25,000 50,000.00
Participation in Bartending 10,00
Exhibitions 0 10,000 10,000 30,000.00
Total Sales & Marketing
expenses 303,500.00
Percent of sales 10.58%
1,060,762.0
Contribution Margin 0
Contribution Margin/sales 40%
35X
C. Break-Even Analysis
The break-even analysis in Table 4 indicates that the firm will break-even
at the production level of 6,696 bottles. The firm should operate above this
capacity in order to break-even.
The firm is expected to generate profit consistently within the next three
years. In 2011 it is projected to generate PhP 0.9 Million profit. The next year
when it is expected to reach 400% maximum production capacity PhP 1.1 Million
profit will be realized. It is on this year that the firm will have to acquire additional
equipment for expansion of its production. In 2013 the maximum profit will hit
PhP 2.5 Million since the volume of production will reach a record high of 50,000
bottles. This is already the signal that it is capable of supplying the export market
directly. By 2014 the firm is expected to penetrate the export market as direct
supplier hence profit is expected to climb.
Particulars Year
2011 2012 2013
Gross Sales 2,868,750 5,488,000 11,020,000
Direct Sales 1,687,500 1,960,000 2,900,000
Sales from hotels, indirect 1,181,250 3,528,000 8,120,000
exporters, wine stores
Less:
Variable Costs
36X
The marketing activities is expected to pay off more after 2013 when the
product is expected to be already widely known in the market segment selected,
and the products are made available to wider market networks.
IX. Controls
A. Implementation
1,500.00 per month. Updating and maintenance of the content can already be
done by the owner or staff or a hired IT personnel.
Dielle’s can also expand its presence online through the use of social
networking sites like Facebook, Twitter, and Multiply, which are very popular
nowadays and are for free. All that is required is an internet connection. These
sites are frequently visited by the targeted market which includes young urban
professionals (both men and women), expatriates and foreigners, and company
executives, among others. It will be helpful in the promotion of the wine products.
Dielle’s has to create its own account on Facebook, Twitter, and Multiply and
post product photos and information and continually update the account. Through
this strategy, there will be a two-way interaction between the firm and consumers
because people can be a fan and post their comments outright. Product orders
can also be facilitated in these media.
photo of the product must be used so that readers can see the actual
appearance and color of the product and also to make the reading material
attractive and able convey a tempting appeal so that people will buy honey wine.
Initially, one thousand copies of brochures and leaflets will be enough for
distribution during trade fairs and exhibits for the first year. Updating of the
brochure will be done in subsequent years.
Trade fairs and exhibits are effective venues for advertising and marketing
a product. Consumers get to know more the brand and the product during trade
fairs because of direct interaction. People who visit trade fairs and exhibits
usually want to discover new products and are curious regarding new
innovations. There is also an immediate sales input during trade shows because
people dropping by the exhibit booth will probably be buying a product as well.
Other trade fairs and exhibits that Dielle’s can join are Asia Food Expo,
Philippine International Food and Beverage Expo (PIFBEX), Food and Drinks
Asia, WOW Philippines Fairs, International Food Exhibition (IFEX), and trade
fairs organized by government agencies such as Department of Agriculture (DA),
Department of Trade and Industry (DTI), and Department of Tourism (DOT).
However, participation in these trade fairs will require registration fees. The firm
must select and prioritize which trade fair will provide greater benefit. To lower
cost, Dielle’s can coordinate with another MSME’s and co-share with booth rental
and other expenses.
During the trade fairs and exhibits, Dielle’s can conduct an on-site product
demo or wine tasting to convince customers to try out the product. This is a good
strategy to make the audience excited and encourage them to actually buy the
product. On-site wine tasting and demo could spell the difference between
39X
someone buying the product or someone just walking away during trade fairs and
exhibits.
Participation in trade fairs and exhibits can also be a good opportunity for
Dielle’s to scout its competitors in the market because most likely, similar
businesses will be invited to participate in the same event. Dielle’s can have an
idea about why people bought certain items and what people love about the
competitor’s brand. Dielle’s can take mental notes about what people and clients
look for in a product and Dielle’s can use these information and insights in future
promotion and product development. Dielle’s can also know the latest
breakthroughs and products that are taking the market in storm by joining trade
fairs and exhibits.
Local cable stations are also an emerging medium for a target small, local
marketplace. This is normally less expensive than advertisements in the national
TV. Dielle’s can tap local cable stations for a selected market such as in the
Visayas or Mindanao.
41X
Malls are often frequented by the target market. Dielle’s can coordinate
and negotiate with the management of SM hypermarkets or Robinson’s
groceries, to conduct wine tasting. This strategy is often done by food companies
like Nestle. Dielle’s should try to avoid distributing questionnaire or survey forms
during this event because it can tend to repel customers. The main focus should
be to have more people taste the product and sell the product on site.
This activity will require Dielle’s to send a staff to the different tourism
areas to conduct the wine tasting. The staff should also be knowledgeable and
42X
should have the capability to capture the perspectives of the customers regarding
the product.
Fine dining restaurants often include wines in their menu offerings. Three-
to 5-star hotels are likewise frequented by foreigners, tourists, and even
socialites and urban young professionals and businessmen. By coordinating with
restaurant owners and hotel managers to conduct wine tasting event, with
Dielle’s providing complementary wines.
Hotels and bars held annual bartending competitions which Dielle’s can
also tap by supplying some bartenders with their wine.
Dielle’s can reach out to more big private companies that often give
corporate giveaways and Christmas grocery package to its clients and
employees. Dielle’s should write to the company president to introduce the
product and provide a competitive offering (discounted price) for bulk purchase of
the honey wine as corporate giveaway in events like Christmas party, team
building, or sports competitions.
B. Marketing Organization
Most of the activities that are beyond the competence of the firm’s present
staff like promo tours, marketing concept development, etc. will be outsourced
from advertising firms or competent agencies. Dielle’s can hire an advertising
firm to prepare the concept and have a local talented artist execute it.
C. Contingency Planning
The marketing plan will be reviewed every year. However in case of new
significant developments such as the offshoot of local competitors, market shift,
market opportunities and others, the plan will be revisited as they occur.
X. BIBLIOGRAPHY
BRUCE MC GECHAN. The Wine Marketing Plan – Your Way To Make Better
Profits Happen. http://wine-marketing-success.com.
[IWSA] International Wines and Spirits Association Inc. 2009. Wine to the
Philippines. http://www.austrade.gov.au
LAO S. 2009. Analyzing the Philippine Wine Industry. In: Manila Standards,
Lifestyle Section. December 15, 2009 Issue.
45X
[PDI] PHILIPPINE DAILY INQUIRER. 2009. More And More Are Going Into Wine
Investment. April 15, 2009 Issue.