JMJ Marist Brothers

NOTRE DAME OF MARBEL UNIVERSITY

Integrated Basic Education Department
Senior High School

CHAPTER I

Marketing Plan

This section presents the description of the product, market, market area,
total demand, market share, supply, demand and supply analysis, selling price,
promotional measures, promotional measures, promotional budget, competition
and sales budget.

Description of the Product

Rhythm and Glues primary products are the Llamana and the Llamufei,
both lamps yet still different. These products were outlined with intricate and
rhythmic patterns, making it look simple yet sophisticated.

Llamana
Candle glue/silicon glue is formed into a vase using a mold. The surface of
our vases will be adorned with repetitive shapes and patterns to evoke rhythm.
Design-wise, the products will be modern, but still low-cost and efficient. LED
lights will be installed at the bottom of each vase to provide vibrant lighting to the
surroundings and to help set the ambiance in a room. The lamp will also be
adorned with different beads and ribbons to create a colorful design.

Llamufei
These Lamps are derived differently from the first types of lamps because
instead of molding the candle glues to form a lamp it will be made from whole
candle glues. An elegant structured will be made from multiple candle glues
inserted with different lights to form a simplistic construct. Elegance will be
emphasized decor-wise.

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

Market (Main Customers)

The primary target market or main consumers of Rhythm and Glues

consists of housewives, restaurant and cafe owners, and students. The business’
products are dedicated to a market who wants to find durable and cost-efficient
alternatives for existing home and design products. Housewives with an artistic
flair who don’t want to spend huge amounts of money can avail of our affordable,
lightweight products, the colorful and elegant lamps. Meanwhile, restaurant and
cafe owners who want to provide allure at their shops can take advantage of the
varied patterns and original designs of our lamps.

Market Area

The Market Area of the business will revolve around the City of Koronadal
and its surrounding towns. Since the city is known to be the center of the
province of South Cotabato it is expected that most of the people from the nearby
cities and municipalities are going there to buy their needs and wants in the said
City. The business will also offer deliveries to provide convenience to the market
outside the city. The business aims to produce its products to people within the
vicinity of the City of Koronadal, but with the help of the company team it is
assumed that the business will take its products nationally.
.
Total Demand

The market of the business is focused on housewives and office workers.

The expected demand for the products of the business will be separated into 3
segments: the housewives, the Restaurant and Cafe owners, and the other
customers respectively. The housewives are expected to take 50% of the total
demand for the products, the Restaurant and Cafe Owners is taking 35% of the
total demand for the products, and the other customers with 15% of the total
demand for the products. In the first year of the business, the demand for the

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

Llamana is 2250 while the demand for the Llamufei is 2500. There will be an
expected increase of 5% per product for the following years taking into
consideration the future businesses and potential customers that will pop up in
the City of Koronadal. These data is represented below:

POTENTIAL CUSTOMERS TOTAL DEMAND

Housewives 35%

Restaurant and Cafe Owners 50%

Other Customers 15%

TOTAL 100%

Table 1. Expected Total Demand

PRODUCT TOTAL DEMAND

LLAMANA 2250
LLAMUFEI 2500
TOTAL 4750

Supply

The company can produce 2120 units of Llamana and 2080 units of
Llamufei in a year. The table below shows how many Lamps can be produce in
whole year.

JA FE MA AP MA JU JU AU SEP OC NO DE TOTA
UNITS
N B R R Y N L G T T V C L

Llaman
180 160 220 180 140 200 200 160 200 180 140 160 2120
a

Llamufe
160 140 200 220 180 160 160 180 220 140 180 140 2080
i

TOTAL 340 300 420 400 320 360 360 340 420 320 320 300 4,200

Table 2.First Year Supply

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

Total forecasted supply for the following products in the first five (5) years
of the business. The business expected to increase their total supply by 5%
annually due to a stable minimal growth in the market.

UNITS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL

Llamana 2120 2226 2337 2454 2577 11714

Llamufei 2080 2184 2293 2408 25282 11493

TOTAL 4200 4410 4631 4862 5105 23208

Table 3. Forecasted Supply for Five Years

Demand/Supply Analysis

PRODUCT SUPPLY DEMAND DEMAND &

SUPPLY GAP
LLAMANA 2120 2250 130 units
LLAMUFEI 2080 2500 420 units

Table ?. Demand and Supply Analysis

For the first year of the business, there is a discrepancy with the demand
and supply. More demand of the product is expected rather than the supply
produced. The company aims to satisfy the growing demand of the market by
removing or limiting the gap between the demand and supply.

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

Market Share

Market Share
Rhythm and Glues Lazada Home Depot KCC Starbrite

17%

30%

13%

20% 20%

Graph 2.Market Share

The business is expected to take up 17% of the total market wherein the
business will be able to sell 4,200 units with Lazada selling 3212 units which is
13%, Home Depot with 4941 which is 20%, K also with 4,941 which is also 20%,
and Starbrite with 7, 412 which is 30% of the total 24,706 units which is 100%.
This proves the sales forecast of the business which is Php 1,235,521.

Selling Price

The Rhythm and Glues Company used cost-based pricing in setting the
price of the products to surely gain profit and maintain company growth. The
appropriateness of the selling price being offered can help to perform the
obligation of the business in terms of expenses and to keep the business
operating.

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

Product Cost Mark up Selling Price

Llamana Php 185.37 40% = 74.15 Php 259.51

Llamufei Php 253.12 30% = 75.94 Php 329.05

Table 4.Selling Price

The first product of the business the Llamana with a production cost of
Php 185.37 is added with a 40% which is equal to 74.15 to get its selling price
which is equal to Php 259.51. On the other hand, the second product called the
Llamufei with a production cost of Php 253.12 is added Php 75.94 which is a
30% mark-up to get the selling price of Php 329.05

Promotional Measures

The business will be self-promoted through dedicated social media

accounts, as well as through its owners’ personal social media accounts. Flyers,
posters, and tarpaulins will also be produced and posted in strategic and well-
populated areas within the City of Koronadal to serve as additional advertising
tools. The products will be promoted as affordable, durable, and lightweight
substitutes for some home and office products

Promotional Budget

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

Promotion JAN FEB MAR AP MAY JUN JUL AUG SEP OCT NOV DEC
al R T
Measures

Online Php Php Php Php

Page/
500 500 500 500
Social
Media

Flyers/ Php PHP Php

Posters 150
300 150

Tarpaulins Php Php Php

450 300 300

TOTAL Php Php Php Php Php Php

950 150
1,250 500 500 300

Table 5.Promotional Budget

The business will take a primary investment of Php 1250 in all its modes
of promotions on its first month and another Php 950 after 6 months. The
business will allocate Php 500 each for its online promotions on March and May
and Php 150 of flyers on October.

Competition

The partnership considers established brands providing manufactured

home products and merchandising businesses focusing on home alternatives as
competitors of the business. Online markets providing easy access to these
kinds of products will also be counted as competitors. These include Home
Depot, Starbrite, Citi Hardware, and Lazada. The products of Rhythm and Glues
will be much affordable compared to the products of its competitors, considering
how ours are manufactured and the cost of our production. However, in terms of

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

quality, our products will be durable and much lighter due to the elasticity and
light weight of our primary material.

Sales Forecast
The table below shows the Sales Forecast for the first-year operation only.

UNIT/S JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL

Llamana 180 160 220 180 140 200 200 160 200 180 140 160 2120

LLamufei 160 140 200 220 180 160 160 180 220 140 180 140 2080

TOTAL 340 300 420 400 320 360 360 340 420 320 320 300 4,200

Table 6.Total Number of Units Sold for Year 1

PRICE JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

Llaman 259.5 259.5 259.5 259.5 259.5 259.5 259.5 259.5 259.5 259.5 259.5 259.5
a 1 1 1 1 1 1 1 1 1 1 1 1

Llamuf 329.0 329.0 329.0 329.0 329.0 329.0 329.0 329.0 329.0 329.0 329.0 329.0
ei 5 5 5 5 5 5 5 5 5 5 5 5

588.5 588.5 588.5 588.5 588.5 588.5 588.5 588.5 588.5 588.5 588.5 588.5
TOTAL
6 6 6 6 6 6 6 6 6 6 6 6

Table 7.Price per Unit for Year 1

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 JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY
Integrated Basic Education Department
Senior High School

SALE
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTAL
S

Php Php Php Php Php Php Php Php Php Php Php Php Php
Llama
46,7 41,5 57,09 46,71 36,3 51,90 51,90 41,52 51,90 46,7 36,3 41,5 550,161.
na
12 22 2 2 31 2 2 2 2 12 31 22 2

Php Php Php Php Php Php Php Php Php Php Php Php
Llamu Php
52,6 46,0 65,81 72,39 59,2 52,64 52,64 59,22 72,39 46,0 59,2 46,0
fei 684,424
48 67 0 1 29 8 8 9 1 67 29 67

Php
Php Php Php Php Php Php Php Php Php Php Php Php
TOTA
99,4 87,6 119,2 95,6 104,6 104,6 100,8 124,3 92,8 95,6 87,6 1,234,58
L 122,9
32 52 02 41 22 22 32 92 42 41 52 5.2
92

Table 8. Year 1 Total Sales

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