MARKETING PLAN

OF ALITAPTAP

Bitna, Kim
Lacson, Maia
Martin, Shannon Gael Andrea
Sanchez, Wendel

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 TABLE OF CONTENTS

Introduction pg. 2

Industry Analysis

SWOT Analysis pg. 3

PEST Analysis pg. 4-9

Competitors in the Industry pg. 9-10

Target Market pg. 10-11

Marketing Mix Strategy

Product Strategy pg. 11-14

Price Strategy pg. 14-15

Promotion Strategy pg. 16

Distribution Strategy pg. 17-18

Marketing Cost pg. 19

Estimated Sales for 1 Whole Year pg. 20

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I. Introduction

We have came up with a product that gave twist to its origin. This time we’ll

be giving you the product’s innovation that’ll satisfy what the consumer wants.

We have named our product Illuminade combined by the two words illuminant

and shade. This product is a lamp shade, but a different one. Majority of us

may already be familiar with the picture that we see in our mind when we say

the word lamp shade. The lamp shade empire shaped that is a round lamp on

a square base and can take a shade with a rounded top and square bottom.

To change everyone’s perception of a lamp shade, we’ve decided to add

some few changes on it. We’ll be using tissues and papers for creating the

lamp shade and make it with different sizes and colors. An idea of a product

that is made up of something others thought of was “trash”, something that is

easy to create and with low material cost. We are proud to introduce our very

own Illuminant Shade.

Mission Statement: To brighten up to inspire and darken to dim at the same

time.

II. Industry Analysis

STRENGTHS WEAKNESSES

 Affordable price  Lamp might burn easily

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 Environmental friendly  Takes time to create the product

 Comes with different designs depends to the size of the lamp

 Product contains a fire retardant to shade to be created

prevent from burning  Strong competitors

 Gives a relaxing mood to the  New in lamp shade industry

consumers  No market share

OPPORTUNITIES THREATS

 Many competitors

 Majority of the consumers might  Many substitute product

prefer our product  Rich consumers might prefer the

 The internet can help us with the expensive lamps more

product’s innovation  Expenses for the product creation

 We can design lamps that are related might get high

to special events  Increase of general sales tax

 Retaining consumers
A. SWOT Analysis

B. PEST Analysis

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Political Factors:

Trade restrictions

Protective tariffs- The most common type of trade barrier is the protective

tariff [protective tariff: a tax on imported goods

designed to protect domestic producers from foreign competition; a type of

trade barrier] —a tax on imported goods.

Countries use tariffs to raise revenue and to protect domestic industries

from competition from cheaper foreign goods. Tariffs are

among the easiest taxes to impose, since they arouse little domestic

protest and can be easily applied to goods before they enter the

country.

Import quotas- While tariffs make foreign goods more expensive, they do

not limit the quantity of goods that can be imported. An

import quota, on the other hand, places a limit on the quantity of a good

that can be imported during a specified period of

time.

Environmental regulation

REPUBLIC ACT NO. 3571

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 AN ACT TO PROHIBIT THE CUTTING, DESTROYING

OR INJURING OF PLANTED OR GROWING TREES, FLOWERING

PLANTS AND SHRUBS OR PLANTS OF SCENIC VALUE ALONG

PUBLIC ROADS,

IN PLAZAS, PARKS, SCHOOL PREMISES

OR IN ANY OTHER PUBLIC GROUND.

Be it enacted by the Senate and House of Representatives

of the Philippines in Congress assembled:

SECTION 1. In order to promote and conserve the beauty of objects of

scenic and ornamental value along public places and help preserve

cool,fresh and healthful climate, it is the policy of the

Government to cherish, protect and conserve planted or growing trees,

flowering plants and shrubs or plants of ornamental value along public

roads, in plazas, parks, school premises or in any public ground.

Economic Factors:

Exhange Rates

Cost of import - The cost of a business that has to import goods/material is

affected by exchange rate. If its native currency is weaker, the cost of

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goods purchased overseas becomes dearer and that raises the business's

cost of doing business.

Export competitiveness - A business exporting/selling its product to foreign

customers have to compete with similar product made in other countries.

The business selling in a stronger currency becomes dearer to the buyer.

Buyers may choose to buy similar product from other countries that have

weaker currencies.

Inflation- Inflation, especially high inflation, increases profits as well as the

cost of doing business and implies higher demand for products at higher

prices and a tight employment market with rising wages. Investopedia

reports that inflation, Is not intrinsically good or bad.

Social Factors:

Population growth rate

Flat Rate of Demand- In areas where the population grows very little, you

have to deal with the possibility that you will not attract new customers.

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You may have all the market share you are going to get. If you are

currently paying expenses and making a profit, you can take comfort from

knowing the region is not experiencing a population decline. You must

focus your efforts on customer service, making sure you retain every

customer you have, because lost customers will be difficult to replace.

Demographic Variables

Age- Age is another demographic element that impacts businesses. A

company's products and services are more likely to appeal to certain age

groups. Younger people under 35 are often the first consumers to

purchase high-tech products like cell phones, electronic books and video

games. Certain buying groups also have more buying power than others.

Geographic Region- People's buying preferences also vary by geographic

region, which is another type of demographic. Those who meet buyers'

needs and requirements in certain geographic regions can earn higher

sales and profits. For example, people often prefer certain food and drink

flavors in certain markets. Companies that sell the flavors consumers

desire in various areas are more likely to profit. Those who do not offer

these flavors may risk losing customers to other competitors.

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Technological Factors:

Rate of technological Change

Importance- Small business owners can use technology to reduce

business costs. Business technology helps automate back office

functions, such as record keeping, accounting and payroll. Business

owners can also use technology to create secure environments for

maintaining sensitive business or consumer information. Many types of

business technology or software programs are user-friendly. This allows

business owners with a minor background in information technology to

use computer hardware and software.

Features- Business technology can help small businesses improve their

communication processes. Emails, texting, websites and personal digital

products applications, known as “apps," can help companies improve

communication with consumers. Using several types of information

technology communication methods allow companies to saturate the

economic market with their message. Companies may also receive more

consumer feedback through these electronic communication methods.

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 These methods also allow companies to reach consumers through mobile

devices in a real-time format.

Function- Small businesses can increase their employees' productivity

through the use of technology. Computer programs and business software

usually allow employees to process more information than manual

methods. Business owners can also implement business technology to

reduce the amount of human labor in business functions. This allows small

businesses to avoid paying labor costs along with employee benefits.

Business owners may also choose to expand operations using technology

rather than employees if the technology will provide better production

output.

C. Competitors in the Industry

 L & P Leading Trend (Amazon)

 LIHAO Direct (Amazon)

 Made

 Azcor

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  Keystone lamps and shades, Inc.

 Craftmade

 Progress Lighting

 Elk group International

 Kichler Lighting

D. Target Market

Psychographic:

 Customers who are environmental friendly

 Customers who enjoys looking at a pleasing or beautiful view when

relaxing

 Customers that unwinds when buying a product that gives them a

lightweight feeling.

 Customers who are decorative

 Customers that are curious about the recyclable lamp shade

Geographic:

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  Customers can be from local, national, regional, and international

Demographic:

 Ages 18 and above

 Male, female, gay, lesbian, etc.

 Customers who has a habit of saving money

 Married or Single

Behavioral:

 Customers who buy stuff every special events like Halloween,

Christmas, New Year, etc.

 Customers who are needing different designs for his/her lamp

shade

 Customers that needs and wants a lamp shade

III. Marketing Mix Strategy

A. Product Strategy

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Company Name:

ALITAPTAP

Product Name:

Illuminant Shade or Illuminade. (Combined Illuminant + Shade)

Logo:

Packaging:

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Product Description:

This is a simple design lamp by ALITAPTAP. This shade really stands out

from the crowd, and is not just a "moon" lamp. We believe this is so much

more. Each shade is 100% handmade. This particular one has a special

effect finish on the inside and first layer that was built up from the following

two colors: green and red. This credible quality lampshade is made

entirely from recycled materials.

Function:

This lamp gives a smooth, warm, ambient light. It looks great over your

dining table! This eco-friendly lamp brings atmosphere to your home.

Benefits and Purposes:

The lampshade is pretty much the only thing that stands out on a lamp or

ceiling light. But although it’s generally seen as a decorative element, its

main purpose is actually to diffuse or redirect the light emitted by the bulb

for maximum effectiveness. The lampshade is one of those dual-purpose

features that can either make or break the decor in a room.

Competitive Edge:

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 Our lampshade will have a unique design depending on your idea! When

you’re gonna order our lampshade, we are going to apply your preffered design

in our standard lampshade.

B. Price Strategy

Periodic Discounting:

As we sell our lamp we come up with a strategy of finding and researching

for the best time as season passes with great deals. We are giving up to

₱1 off for holiday sales every year. We have different designs every

holiday.

Psychological Pricing:

The price of our product will be ₱399 instead of ₱400, to somehow attract

the customers to buy our product by simply lessening the amount for a few

cent or one peso.

Those are the strategies we are looking forward to get profit for the

product that we made.

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Geographic Pricing:

Illuminant
Rate to Transport cost Total
Shade

NCR 200 pesos 399 599 pesos

Luzon 240 pesos 399 639 pesos

Visayas
245 pesos 399 644 pesos

Mindana
245 pesos 399 644 pesos
o

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C. Promotion Strategy

ALITAPTAP’s strategy will be based on the use of several forms of

advertising.

ALITAPTAP will generate visibility through advertisements in the social

media.

Marketing on Facebook helps our company to build relationship with

people and to attract new customers.

ALITAPTAP will also advertise in Instagram, an online mobile photo-

sharing, video-sharing, and social networking service that enables its

users to take pictures and videos, and share them either publicly or

privately on the app.

By using Instagram, our company can showcase our product, build our

community, and share company news and updates.

We’re also setting up our own website and an online selling system. We

found a website that specializes in handmade goods. There is no setup

fee, but there are per-item for selling. A small budget is kept for supplies to

make boxes because the presentation of our product is important.

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D. Distribution Strategy

Coverage:

Our product can be found at Malls. Department store, Appliance Center,

Home Depot, and places where you can buy some home furnitures or

supplies. Virtual store

Placement:

Our product’s placement should be atleast 80% for our product to be well

known and so that our consumers won’t transfer to another store just to

look for our product. The placement of our product should be exclusive.

Volume:

Our product’s volume will depend on how much demand will there be on

the birth of our product. Since this product is new, we’ll review our sales

and then will later on be determining our volume.

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Display:

Our product is new so we need to be generous in introducing our product

to the consumers. Our product should be displayed first, sectioned by its

own group or grouped with the other product with the same type.

Goodwill:

Before we create a win-win relationship with the marketer, we will make

sure that we’ll commit to whatever situation we have entered. We will be

equally comitted to venture. We’ll also be communicating most of the time

with each other. We’ll give incentives to the marketer as well. Posters will

be posted anywhwere for advertising and we’ll also include them on our

social media accounts for advertising.

Pricing:

The price of our product is ₱400. Deliver fee will be charged if the

consumer wishes for it to be delivered.

NCR shipping fee: +₱200= ₱600

Luzon shipping fee: +₱240=₱640

Visayas shipping fee: +₱245=₱645

Mindanao shipping fee: +₱245=₱645

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IV. Marketing Cost

Packaging is Php25/pcs. While facebook advertisements cost Php200 per

week. It includes choosing your own target market, ages 18of audience, and

a direct link of your store. We found a site called Etsy, they specialize in

selling handmade goods which is great for us. They charge 2% for every item

you list on their website and 5% for everytime the product has been sold.

Packaging Php25/pcs
Facebook Ads Php200/month
Website item listing fee Php8/product

Website sales fee Php20/product

Packaging Php25/pcs

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V. Estimated Sales for 1 whole year

Price PER UNIT x ESTIMATED QUANTITY SOLD= Total profit

For one year 120+(10(new year product)+10(Christmas product)) units sell

Total sell will be 140 unit

Php 400 / unit x ( 10 units/month x 10 months )=Php 40000

During the special occasion we have discount at standard product

Php 399/ unit x (10units/month x 2months)=php 7980

The per unit price of Php400 is based on the following costs..

Material 266.6

400-266.6=133.4

(133.4/400)x100=33.35%/profit margin