CASE 11.

BUGTAG CHEMICAL CORPORATION: Help

Summary

Samuel Bugarin and Antonio Tagorda were classmates at the Chemical

Engineering Department of De la Salle University. After passing the board examinations
in 1981, Engineer Bugarin first worked as an assistant in the quality control unit in a
chemical manufacturing company and later became the chief of the unit. Because of
his good performance, he was promoted to production manager in 1993. Engineer
Tagorda got a job in 1982 as production planner of Reliance Chemical Company. In
1990, he was assigned as assistant production manager. After a year, he became the
new marketing manager of marketing department. When he assumed his post as
marketing manager, the company is already serving group of loyal customers. The
increasing requirements of these customers also meant additional orders for the
company's products. The company’s sales increased even if the number of its
customers did not. In a class reunion held in April 1997, Samuel and Antonio met
and they conversed for more than three hours. Samuel mentioned that he had started
organizing his own chemical manufacturing firm and he wanted Antonio to join him.
Antonio agreed and in a subsequent meeting decided to divide the work between the two
of them. Samuel was to take care of production and Antonio would handle marketing.
They decided to invite an experienced finance officer and a high school classmate,
Edgardo Abuan. He became the company's finance manager. The company was
registered as a stock corporation and the capital contributions of the stockholders
were as follows:

Name of the Stockholder Amount of Capital Contribution

Samuel Bugarin 30,000,000
Antonio Tagorda 15,000,000
Edgardo Abuan 3,000,000
Jesus Ualat 1,000,000
Rosario Mariano 1,000,000
Ausberto Taguinod 1,000,000
Francisco Bundoc 1,000,000
Amparo Paragas 1,000,000
Andres Nicolas 1,000,000
Total 54,000,000

The three agreed to produce caustic soda liquid, hydrochloric acid, soda ash, sodium
sulphate, sodium tripolyphosphate, and sulfuric acid. Their company has been named
the Bugtag Chemical Corporation. Samuel has already started organizing the production
department by hiring a production planner. Antonio is still considering what steps to
take in organizing his department. One of his problems is the lack of information
regarding the nature of the market the company must tap. Also, Antonio is aware of the
utmost importance of providing the production department with a demand forecast for
the company's products.

THE PROBLEM

Engineer Antonio was designated to handle marketing for their company named
Bugtag Chemical Organization (BCC), however, due to lack of information in the
marketing field, he is struggling to decide what steps he should take in his department.
He is thinking what should the company must tap for them to know what is their target
market and where should they offer their products, and how will they promote it to their
targeted clients or customers.

STATEMENT OF THE PROBLEM

Engineer Antonio was designated to handle marketing for their company;

however, the strategy/steps in organizing his department is still undecided and he still
lacks of information regarding the marketing field. How will Engineer Antonio acquire
the information that he need regarding the nature of the market? What method
should Engineer Antonio take to organize his department?

ALTERNATIVES COURSES OF ACTION

 Engineer Tagorda may train himself in the marketing field by taking a course.
 Engineer Tagorda may select Residential Section. Since, their company is small
yet residential section may be a great segment to select.
 Engineer Tagorda may hire marketing pro and labor to his division.
 Engineer Tagorda may build up franchises in several places that will offer their
products.
 Engineer Tagorda may select the Industrial Section.
 Engineer Tagorda may distribute promotion in several mass media about their
items and administrations.
 Engineer Tagorda may select the Government Section.
CONCLUSIONS AND RECOMMENDATIONS

Base on the presented alternatives, I therefore conclude and recommend that the
best thing Engr. Tagoda may do is to open a vacancy for positions related to
marketing professionalism. He must hire the applicant with best qualifications in terms
of marketing abilities and decision making. After doing so, the second thing he must do is
to seek for their target customers by creating promotions and advertisements that will
effectively gather individuals with great interest on what they are selling. In this way,
his problem will be successfully solved with lesser efforts than other alternative.