I.

EXECUTIVE SUMMARY

Currently, our world is declining gradually as it faces a lot of environmental

issues. Unfortunately, people today although aware does not recognize the need to
take personal action with regards the problem specifically of the waste management.
Conversely, small efforts of reinforcement that can make a big diffe -rence in the
future are indeed a need right now.

LIFE CRAFTERS COMPANY is here to provide the best value propo-sition in the
market. We aim to provide the public a unique and worthy product to be sold that is
made out of recycled materials we can find anywhere in the surroundings wherein it
undergone an extreme innovation process. Apparently, the company had already
collected thousands of tons of pet bottles, cans, used cloths and plastics which
helped the nature to heal its wound for a while.

LIFE CRAFTERS COMPANY is a 2-year rising company established to meet the public
demand for recycled do it yourself (DIY) handicrafts, more specificallly, the different
customized products that the company were able to innovate . Although the company
was launched only 2 years ago, it has already built a strong brand image among the
other competitors and in the public's view as the company is involved with helping the
society and the government in waste management .

LIFE CRAFTERS hopes to be the leading manufacturing company of handicrafts and

DIY things in the whole country through its intensified market offerings and
strategies the company is looking forward to use in the future.

The company's products are created with creativity and art in consideration to
suit the customers' satisfaction and need for a product being unique in design. It's not
the typical thing you think you can find along the sidewalks stalls or vendors as much
efforts and marketing research was allocated in the making process and various human
intelligence was also used in the innovation process .However, even though we offer
unique product to the customer, it does not mean that we are charging a higher price to
signal prestige to our product. In fact, the company 's marketing department is practicing
the value-based pricing wherein we aligned our product's price with the benefits it can
give to the customer.

Moreover, through the two-year marketing effort of our company, we were able to
established a well known brand reputation in the market . We position our company as
the country's leading producer of cheapest but with a very high level of quality
which makes it very different among the other similar brand.

In the past two years , our company is very proud to say that we successfully gain 10%
market share in the industry.Ironically, in the recent three months, we were able to
increase our sales through extensive advertising and improved promotional
strategies that results to 15% increase in the profits of the company.

Another thing , we do have third party relationships which we can use to benefit in the
future. Part of our promotional strategy is that we are hoping for the partnerships with
some well known company like the Dong-A to start up co-branding with us . By their
products of ballpens and colorpens and our exclusive customized pencil case , we are
expecting a market boom which can greatly boost our sales and profit.

With regards of the company's financial standing , the company is able to manage its
stability through strictly managing the costs and cash outflows as much as possible if it
isn't really needed.Low cost in the production was made possible since the company is
only using cheap raw materials from the recycled plastics like pet bottles
aforementioned earlier.

In the following years, the company is planning to make some improve ments including
the extension of the current product lines , entering a new market segment , and a
collaboration with the other companies.
II.COMPANY DESCRIPTION

LIFE CRAFTERS was founded two years ago by the well known businessman
Bryan Christopher Diaz who have a great personality as an environmental
activist . His passion as an environmentalist gave him the skill to innovate products
that are eco-friendly and this notes his current success in the business field. But
as usual like anyone else , he also had gone through a lot of testing and
experimenting before achieving what he and his company have now.

LIFE CRAFTERS' products represents Bryan Christopher Diaz's ambition

for the environment . The company's product lines are all creatively made
out of scrap materials that is still reusable such as coin purse made out of plastic
wrappers and the pencil case and pencil capsule made out of pet bottles and cans
designed for the suitability of the users.

All of the company's product resembles the company's logo and the tagline : '
CRAFTING FOR A BETTER FUTURE ' which attacks the psychological thin-
king of the customers . By using our product , you can help in saving our
depriving nature . "With LIFE CRAFTERS , Crafts come on handy."The logo was
inspired from the logo of 3 R's which is turn into a polygon figure .

Presently , LIFE CRAFTERS' products are held by our partner retailers and affiliation
like the National Book Store , Samya , Pure gold and other small establish- ments .
These products are now partially circulated the country , except to those areas
that are hard to reach . Creativity , uniqueness , and a high. quality have gained LIFE
CRAFTERS a following consumers between youths and middle adulthood. Sales of
the company have been improving since the past two years of operating.
III.MISSION AND GOALS

LIFE CRAFTERS' Mission is to be the leading producer and marketer of customized

handicraft products for consumers who love to appreciate art from scrap materials.
LIFE CRAFTERS wants to encourage people to be creative enough and learn how to
utilize the things we have around us . In addition , LIFE CRAFTERS are
campaigning its product to lessen the waste in our environment.

During the next proceeding years, LIFE CRAFTERS seeks to achieve the following
financial and nonfinancial goals:

A.FINACIAL GOAL

1.Double/Triple the revenues at the end of each year.

2.Allocate more budget to the product research and development.

3.Donate funds to a charity.

B.NON-FINANCIAL GOALS

4.Widen the market segment: Enter a new geographic market

5.Introduce new product line-customized recycled bag and shoes made of recycled
materials.

6.Enter the internet and social media platform to improve promotional mix.

IV.SITUATION ANALYSIS

The marketing environment for LIFE CRAFTERS depicts different aspect within its
internal and external operation that can either benefit or harm the firm in the future . It
also contains information that will guide the company on how to operate and counter the
challenges they have to in order to meet the company's mission and goals.
 •LOW COST leading to a high market profitability

•Strong Customer Loyalty & Third Part Relationship

STRENGTHS •Unique product differentiation and innovative ideas

•Consist of skilled workers and employees

•Limited Product Line. •Limited market segments

WEAKNESS •Lack of new ideas

•Affiliations

OPPORTUNITIES •Increasing demand for recycled products

•Pure Competition
THREATS •Better Products from Competitors

Table A: Illustrates the SWOT ANALYSIS of the company conducted by marketers

to highlight LIFE CRAFTERS strengths, weaknesses , opportunities and threats.

The SWOT ANALYSIS revealed the company's position in the marketplace.

Throughout the two years of operation, LIFE CRAFTERS had so much strengths
and opportunities to use in the business. Its dedicated founder and
employees, its good market offerings ,loyal fanatic consumers and good financial
management gives the company a security to stay in the market .
However , the company should overcome its weaknesses and achieve a
competitive advantage among its competitors in order to succeed in the run. These
competitive advantages could be achieve by having:a low cost,strong relationship with
the third party like your retailers and suppliers and a very unique product attributes
which the LIFE CRAFTERS possess at the first place.

V.COMPETITORS IN THE MARKET

There have been a lot of similar companies that sells handicraft products such as
Palwood Manufacturing Corp., Fill Metallic Trading, Bisakol Craft Products, Karamba
Crafts & Exports and etc. which are all situated in the country and are able to export
their products around the world.From the said companies, LIFE CRAFTERS only at the
bottom of them and still needs more time to grow.

Yet, although LIFE CRAFTERS is still a no match for the said companies , its current
resources to use gives the company a very high probability to grow as one of the
leading company in the future.

VI.TARGET MARKET

The desired target market for life crafters' product is wise consumers between the
ages of 15 and 40 -typically the students and people who love to be a naturalist and
value-oriented person around the Philippines .The specific target customers can be
someone who works in an office who would prefer aesthetics stuffs like pencil case and
holder that is made of recycled materials.Others might be someone fashionable enough
to use tote bags rather than an expensive one. In short, they support "Crafts for better
future." The consumers are considered to be public , meaning they are earning on an
average range.Still , they are very price sensitive.
The said target market represents the demographic segment of the market which is
then segmented geographically in the Philippines . The current reach of the product is
still only in the Philippines, but we are planning to extend our product internationally in
the next few years through market developments.

VII.MARKETING MIX STRATEGIES

The following discussion outlines some of some of the details of the proposed marketing
mix for LIFE CRAFTERS products.

A.Product Strategy: LIFE CRAFTERS currently offers a line of high quality

handicraft and items customized items made out of recyclable materials including coin
purse,pencil capsule ,pencil case and etc.All bear the company's logo and
slogan ,"Craft for Better Future." Its products already incorporate the popular trends in
terms of design.Over the next 3 years,LIFE CRAFTERS plans to expand the product
line other than handicrafts such as tote bags ,pouches,shoes and clothing which are all
made out of or with recycled materials.Customers may select from a wide variety of
unique designs and colors which are improve to satisfy their preference.
 SAMPLE PRODUCTS

B.Distribution strategy

Currently,LIFE CRAFTERS is marketed only in the Philippines,through regional and

local shops and retailers.So far LIFE CRAFTERS has not yet marketed internationally,
but are open to that idea to happen in the future.Over the next 3 years , LIFE
CRAFTERS seek to expand distribution to a retail specialty shops such as intended for
handicrafts and customized recycled materials.In addition,LIFE CRAFTERS plan to
explore the internet and social media platforms, in order to enter online sales and e-
commerce. Eventually, we may be able to differentiate our market offerings in the retail
and online shops. Regardless of its expansion plans,LIFE CRAFTERS fully intends to
monitor and maintain strong relationships with its distribution channel partners.

C.Promotional Strategies:

LIFE CRAFTERS communicates with consumers and retailers about its products in a
variety of ways . Information about LIFE CRAFTERS - the company as well as its
products is available via online, e-mail, and in person. The firm's promotional efforts
also seek to differentiate its products from those of its competitors.

The company relies on its relationship with its retailers to establish the products in their
stores. This contachelps convey the LIFE CRAFTERS mission , deliver quality and
unique products and build relationships among its customers. In turn , LIFE CRAFTERS
maintain a good and stable relationship with its retailers.

Sales promotions and public relations make up the spice of LIFE CRAFTERS
promotional strategy.LIFE CRAFTERS are giving special discounts to their customers
who have already bought before their product.Also , LIFE CRAFTERS' products are
being advertise in television ,print media and even in the different social media
platforms which is the trend now .
Inorder to boost the sales in the following years, the company will be conducting the
following promotional strategies :

•As November is considered to be the month for environmental awareness ,LIFE

CRAFTERS will be giving special discounts occasionally every year varied in every
product

•The company will be launching a membership card that could be use for redeeming
points and rewards during special season

•LIFE CRAFTERS will be organizing a nationwide event about environmental

awareness that showcases its products to the public .Thus, promoting the company at
its finest level.

D. Pricing Strategy:

LIFE CRAFTERS were made with a very low cost in the production. Although the
company's main goal is to increase profit, it doesn't seek to penetrate or skim the
market. Hence, the company's products are set in an affordable price aligned with the
benefits sought by the product to the customers.The company is practicing value-based
pricing to arrive at more precise price and promote satisfaction of customers.

LIFE CRAFTERS might offer a lot of pricing methods in the future such as promotional
pricing , psychological pricing and geographical pricing. The prices of the company's
product ranges from as low as:

40 Php -150 Php for eco-pencil case

. 60 Php-250 Php for pencil capsule

300 Php-1000Php Customized Tote Bags

.
VIII.BUDGET , SCHEDULE AND MONITORING

A.Budget

MARKETING BUDGET PLAN (YEAR 2020)

CATEGORY QUANTITY COST/UNIT SUBTOTAL

MARKETING RESEARCH

RESEARCH FIRM FEES 3 ₱20000 ₱60000

WEB RESERACH 1 ₱15000 ₱15000

OTHER RESEARCH 2 ₱10000 ₱20000

RESEARCH COSTS TOTAL ₱85000

COMMUNICATIONS

TV ADVERTISEMENTS 3 ₱30000 ₱90000

ONLINE ADVERTISING 5 ₱50000 ₱250000

SALES AND PROMOTIONS 10 ₱20000 ₱200000

COMMUNICATION COST TOTAL ₱240000

PRODUCTION COST ₱1200000

OPERATING COST ₱900000

OTHER COSTS ₱120000

TOTAL BUDGET COST ₱2545000

Table B Summarizes the mestimated marketing budget plan of LIFE CRAFTERS FOR
THE YEAR 2020

B.Schedule

In the succeeding year , the company will be launching different product lines:
 Year 1: Hand made tote bags and pouches

Year 2: Shoes made with a recycled materials

Year 3: Cloths made with recycled materials

Also , the company is located at the Bonifacio Global City ,Taguig which operate during
weekdays only from 8 am to 5 pm .

C.Monitoring

LIFE CRAFTERS monitoring system is highly recommended as the company has

operated smoothly through its 5 years run in the market. The following shows the
departments and its head manager that contributed a lot in the company:

MARKETING RESEARCH- MS.LOVELLA KATE BARON

PRODUCT DEVELOPMENT-MS.JANINE PAGOBO

SALES & PROMOTION- MS. BENGUET

FINANCE - MR.AMIEL LAGUNSAD

Though its history is short ,LIFE CRAFTERS has enjoyed a steady increase in sales sie
its introduction 2 yearys ago.

2018

2019

NET SALES OF LIFE CRAFTERS YEAR 2019

D.Financial Standing

The company's networth is currently Php 3.5 million from the last year's profits and from
the money invested by its investors amounting to

Year 1 (2018) Year 2 (2019)

Income from operation Php 1.3 million Php 3.5 million

Less:Cost of Operation Php 400000 Php 1.0 million

Gross Profit Php 900000 Php 2.5 million

Gross Profit Percentage 70 % 71%

Less: Expenses
 Salaries of partners Php 100,000 Php 150,000

Electricity Expense Php 200,000 Php 230,000

Communication Expense Php 150,000 Php 200,000

Other Expense Php 30,000 Php 50,000

Net Income Php 420,000 Php 1,870,000

Net Income Percentage 53% 75%

E.Sales Forecasting

In terms of sales , the company is ecpecting for a 10% more growth each year in the
next three years like the ff:

TARGET SALES PROJECTION

Products Growth Year 1 Year 2 Year 3

Pencil Case 10% 250,000 275,000 302,500

Pencil capsule 10% 450,000 495,000 544,500

Tote Bag 10% 600,000 660,000 726000

Coin Purse 10% 200,000 220,000 242,000

Total 30% 1,500,000 1,650,000 1,815,000