Prepared for

Mako Williams

Board Director

EASE-CO Inc.

Prepared by

Ariz Castillo

Janen Sobrevega

Ma. Cristina Yanga

Michaella Dawal

Rusell Maliwat

Marketing Department

EASE-CO Inc.

September 24, 2021

 Makati, Metro Manila

September 24, 2021

Mako Williams
Board Director
EASE-CO Inc.

Dear Mr. Williams

Good day! It is indeed a great pleasure for us to be able to hand over the result
of our hardship of the Marketing Department on EASE-CO Inc. This report is the
result of the knowledge which has been acquired from the respective course.

We tried our level best for preparing this report. The information of this report is
mainly based on the sources we have seek. Some other details were gathered
from the marketing department personnel of this company. All of us gave our
hundred percent for making this report come together.

We, fervently hope that you will find this report and proposal worth reading.
Please feel free for any query or clarification that you would like us to explain.
Hope you will appreciate our hard work. Thank you for your cooperation.

Sincerely,

Marketing Department
Ariz Castillo
Janen Sobrevega
Ma. Cristina Yanga
Michaella Dawal
Rusell Mae Maliwat
Table of Contents

Transmittal Message ............................................................................................... i

Executive Summary (Abstract) ………………………………………………………. 1

Introduction ……………………………………………………………………………… 1

Report Objectives ……………………………………………………………………… 2

Problem …………………………………………………………………………………... 2

Background of the Study ……………………………………………………………... 2

Scope and Limitations ………………………………………………………………… 4

Source of Data ………………………………………………………………………… 4

Demographic Profile …………………………………………………………………... 5

Findings …………………………………………………………………………………... 9

Conclusion ………………………………………………………………………………. 11

Recommendation ……………………………………………………………………… 12

References ………………………………………………………………………………. 13

Appendix ………………………………………………………………………………… 14
 Abstract

One of the primary reasons for a company's existence is sales. It is what

defines the success and profitability of a business. There are many factors that
affects company’s sale, and these factors must not be overlooked or else profit
loss or even worse, bankruptcy could occur. EASE-CO, a clothing company
founded in 2019, has grown in popularity in recent years as a result of its
distinctive and simple apparel designs. Nonetheless, the company's sales and
revenues decreased in the third quarter of 2021. By analyzing certain factors
that affect this company’s sale for the past months, the finance department
was able to come up with a solution which can increase the sales of EASE-CO
and recover the loss from the third quarter of the year. In this report,
questionnaires involving the existing problem were given to consumers for survey
purposes and the results show that producing new designs would attract people
to consume this company’s product and increase its sale. Furthermore, an
improvement in marketing strategies is recommended in order to achieve EASE-
CO’s full growth.

Introduction

Innovation is crucial in every aspect of people’s lives especially in the field

of business. For businesses to achieve success in today’s fast paced and modern
world, they must adapt to changes and expand more than ever (Purcell, 2019).
Businesses must stay relevant in changing times in order for it to grow and still be
profitable. Recently, EASE-CO’s sales have declined which resulted to a profit
loss for the third quarter of the year. This firm has been doing well since its
inception in 2019, using the same clothes designs and not introducing anything
new, but sales have suddenly dropped. Identifying the factors which affect this
situation is significant as number of sales is the determining aspect of EASE-CO’S
success. Sales is the lifeblood of a business. As stated by Faber (2016), without
sales, you have no business. Thus, considering the elements that affect it and
taking measures to expand it is crucial for the growth of the business.

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Report Objectives

Due to different trends and designs of clothing, it affects the income of the
third quarter of 2021. This problem is leaving a minor impact on the company
which is why the Financial and Marketing Department opted to do a report which
will help our company to recover from the loss. This report aims to do the following:

 To address the issue about the loss of sale for the third quarter of 2021.
 To propose a new design of t-shirt to boost sales and to recover from the
loss.
 To improve and recalibrate marketing strategies that align to the current
trend marketing strategies.
 And, to innovate and rebrand the products in accordance with the target
market's preferences

Problem

 The purpose of this report is to address the issue about the loss of income in
the fourth quarter of 2021 and to give solutions that will help boost the sales
and to recover from the loss. Also, to create or promote new marketing
strategies that align to the current trend. Also, to innovate and rebrand the
products in accordance with the target market's preferences

Background of the Study

As we are all aware that there are certain factors that can affect both the profit
and loss of a company whether from internal factors or external factors.
According to Eric Hamilton of The Science Times, 2020, the internal factors include
the product, marketing, availability of finance, technology and automation and
availability of supplier. The external factors that Hamilton tackled were economic
cycle, consumers' expectations, laws and regulations and competition or
competitors.

According to Hamilton, product can greatly affect the loss and profit on sales.
The company should maintain the quality of the product with the reasonable

2
prices, the company should also offer modified and variety of the product for the
customers' different taste and preferences. Marketing strategy is as well consider
a factor that can affect the loss and profit on sales. Marketing is responsible in
choosing the right target market, proper pricing, product placing, etc. As the
company needs to innovate and offer modified products to the consumers, the
company should always have the availability of finance, not just for developing
new designs, product but as well as for overcoming unpredicted crisis. Company
should also invest in technology and automation specially in times like this.
Company should provide easier access for purchase, payment, automated
orders, and other transactions for customers. Company should upgrade the
technology and point of sale system. Availability of suppliers was also considered
because the company should continuously meet the demand of the customers
which the company will need to have continuous need for raw materials and
other components the company will need in making the product.

Economic cycle was explained by the concept of demand and by how much
disposable income the customers must purchase the product. That's why
economic cycle became a factor because whenever a country will face
recession phase, the amount of money that the customers are willing to pay is
reduced as well. Next is customers' expectation, with the target market set it will
not be so hard to distinguished what the customers need and want. However,
each customer has a distinct taste and preferences, and it varies with everyone
for this reason, the company will have to provide variety of choices to satisfy
customers' expectation. As we must follow the laws and regulations set by the
government, sales will also be affected in terms of taxes, minimum and maximum
pricing requirement and even advertisement restrictions. Competitions will
obviously affect the loss and profit on sales of the company specially when
competitor offers the same product with different design and price. Sales will
depend on customers' taste and preferences. Hitesh Bhasin from Marketing91,
2018, agreed with all the factors stated just like Hamilton's opinion on profit and
loss. Bhasin also added that whether the company is already established one or
start-up, these factors would have an effect whether in the loss or profit of the
company's sales.

On the other hand, Canadian Professional Sales Association (CPSA) provided

some reasons for having a loss on sales. First is that seller don't truly understand
what the prospect need or the target market is undefined. CPSA emphasized how
important it is to define the target market and to be able to provide them what
they truly need. Other reason is that the company haven't properly assessed the
cost value of the product and the sales pitch is ineffective. CPSA point out how
implementing variety can increase the sale, that the customers' needs and desire
changes constantly and the seller should suit in and follow. Improving the
efficiency of follow-up was also said to help the company boost their sales, this
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will show the dedication of the seller to provide for the customer and make them
purchase the product again. Other reasons given by the CPSA are failed to close
deals properly, do not possess adequate product knowledge and sales process
is flawed. Closing a deal with the customer will need quite a knowledge of the
product, knowing this will help the seller convince the customer to purchase the
product and how to product is a better choice than the competitors.

"Evaluating why you have lost sales in the past, is the crucial first step when
devising a strategic plan to increase your sales revenue in the future. Performing
a lost sales analysis will allow you to identify where improvements in your sales
strategy are needed, so you can re-evaluate your approach and continue to see
growth in your funnel," (CPSA, 2014)

Scope and Limitation

This report is limited only to the records of Financial and Marketing

Department of Ease Clothing during the third quarter of 2021. Addressing the issue
and to determine what are the possible solutions to solve this problem.

Aside from addressing the problem, this report is also to improve and
recalibrate the marketing strategies that align to the current trend and to
innovate the products in accordance with the target market preferences. The
information needed will be gathered using a questionnaire from the Millennial to
Generation Z consumer.

Sources of Data

The report covers to address the issue of losing income, to propose new
design in the collection and to improve the marketing strategy during the third
quarter of 2021 due to the rising issues of new clothing design trends that affect
the sales of the company.

To gather the data required for this report, the researchers used a modified
questionnaire to be able to know what are the possible solutions that can solve
the problem and to recover from the loss of the third quarter of 2021. The
questionnaire consists of five questions; the first question if the consumer will
consider buying in our clothing line. The second question is to determine what are
the new designs that they would like to buy, and of course we need to ascertain

4
if they will recommend our products to other so that we can analyze and
determine if this strategy will help to boost our sales.

The findings will be presented in two sections according to the

characteristics of the gathered data: Demographic profile, and if the Millennials
to generation Z consumers will consider buying our new innovative collections.

Demographic Profile

All the respondents from the first week of October are all considered
as the target market for the clothing line. The 100 respondents of the
questionnaires are classified according to their sex and age group.
Regarding to the sex group of the customers, there are 70% female and
30% male as respondents. According to the age group, the respondents
are 45% from 18-24 years old, 30% from less than 18, 15% from 25-30 years
old, and 10% from 30 or over.

Figure 1. Age Distribution of the Respondents

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Figure 2. Sex Distribution of the Respondents

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Reasons (gathered from survey questionnaires)

1. Do you consider buying a shirt from the EASE-CO clothing line?

____ Yes ____ No

2. If the EASE-CO clothing line will release a new collection and designs,
what designs do you consider buying?

___ Korean ___ Anime

___ Movie / TV shows ___ Music Bands / Artists

___ Tie Dye

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3. On a scale of 1-5, how likely are you to recommend the EASE-CO
clothing line to your family and friends?

___ 1 Extremely

___ 2 Moderately

___ 3 Not at all

8
Findings

According to the results of questionnaires answered by the 100 customers of EASE-

CO clothing line in the first week of October, it is proven that most of them are
female and at the age 18-24 years old. For question number 1, 90% of the
respondents considered buying a shirt from EASE-CO and 10% did not. For
question number 2, 35% of the respondents considered buying a Korean - themed
collection, 20% for Anime - themed collection, 20% for Movie/TV Shows - themed
collection, 15% for Tie Dye collection, and 10% for Music Bands/Artists collection.
For question number three, 80% of the respondents extremely considered
recommending EASE-CO to their family and friends, and 20% moderately
considered it.

Upon further investigation, EASE-CO was able to identify the customer’s

demographic profile, preferences, and satisfaction with the collection being
released by the clothing line. With this, it helps EASE-CO to choose what

9
collections should be released in the next quarter of the year to satisfy the
customers and to bounce back from last quarter’s loss.

Korean-themed

Since Korean movies, dramas, and K-pop are so popular for today’s generation,
a lot of customers considered buying shirts that are inclined with their favorite
hobbies. Many of them considered buying a shirt since it is considered as a
merchandise item for their fanbases. And to consider that most of the customers
are 18-24 years old, it means that the customers who usually buy and like Korean-
related items are youth. And as the popularity of Hangul culture increases, the fan
bases are also increasing. It means that promoting the brand will be easier as the
customers will consider recommending EASE-CO to their family and friends.

Anime-themed

Anime-themed collections will consist of items that are inclined with popular
anime for today. Anime is an art from Japan which is anything that is hand-drawn,
or computer animated that is very much popular to any age until today. Anime
is also popular for both sex and any type of age, the reason why a lot of
respondents also considered buying for anime-themed collection.

Movie / TV Shows

A lot of movies and series are popular today, especially those that are found on
Netflix. You can find a lot of reviews and recommendations on social media,
whenever there is a release of movies or series. Netflix, as one of the biggest
platforms today, is a US subscription-based streaming service provider of films and
television series. And a lot of popular movies and shows are found on Netflix, the

10
reason that it is also popular and considered by the respondents as one of their
options on buying from this collection.

Tie Dye

Tie dye is considered also as one of the popular designs for shirts today. It is a
technique or a process of applying dyed powder on a twisted or folded fabric
that creates unique designs. It is popular for youth because of its summer and
colorful vibe that are new to the eyes of some people.

Music Bands / Artist

As the lowest percentage from the result of questionnaires, this is also considered
a future collection because of its potential. Many people are also fans of these
bands and artists that creating this collection is also a move. Music bands or artists
also have a large fanbase which can also attract a lot of customers once the
brand is promoted well.

Conclusion

Based on the findings in this report, innovation of the whole business is

necessary to recover the loss EASE-CO has incurred for the third quarter of 2021.
Innovation is a way for this business to react to changes and discover new
opportunities. Producing products and releasing new designs in accordance to
the target market’s preferences is significant to secure the longevity and triumph
of the business. Moreover, an improvement in marketing strategies is needed in
order to reach more potential consumers. Conducting this report made the
Financial and Marketing department see where the business is lacking.
Maintaining the same apparel designs in this time would not work anymore as
people want to consume more timely, trendy, and innovative products
compared to repetitive clothing designs EASE-CO had for the past two years.
Considering the elements that affect the life of the business will always be

11
important. Aligning it to the consumer’s preferences is the key to increase the
company’s sales and growth. Change is truly inevitable. The desire and
preferences of people change every now and then. Businesses must always
adapt to these changes to stay relevant and profitable.

Recommendations

In avoiding loss of income on sales, the company recommends the following:

1. Monitor the effectiveness of the marketing strategy;

2. Provide variety of choices for the customer;

3. Close follow-up deals from customers;

4. Always provide quality product and design to satisfy the customers and;

5. Monitor the demand and provide and produce just enough number.

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 References

Purcell, W. (2019, October 21). The Importance of Innovation in Business.

Retrieved from https://www.northeastern.edu/graduate/blog/importance-of-
innovation/.

Faver, K. (2016, October 17). Why sales are the lifeblood of your startup.
Retrieved from https://www.alphagamma.eu/entrepreneurship/why-sales-are-
the-lifeblood-of-your-startup/.

Bhasin, H. (2018, February 21). Factors affecting Sales of a Product. Marketing91.

https://www.marketing91.com/factors-affecting-sales-
product/?fbclid=IwAR0z6glFf0OeWJSTpg58TS4Whl1b2Z3N-
6wingfp4J_HmyMIrRASeJjP8uo

The Canadian Professional Sales Association. (2014, November 17). Lost Sales
Analysis – 8 Reasons You’re Losing the Sale. Lost Sales Analysis – 8 Reasons You’re
Losing the Sale. https://www.cpsa.com/resources/articles/lost-sales-analysis-8-
reasons-you-re-losing-the-
sale?fbclid=IwAR14L2ScN6yDrOKUtTdNXAxL5aWrhokgHeVww45SDllagHej7iBWYg
DiunU

D. (2020, June 3). Factors Affecting Sales Performance. Science Times.

https://www.sciencetimes.com/amp/articles/25924/20200603/factors-affecting-
sales-performance.htm?fbclid=IwAR3uXlbA8OtdC_V1ZOjFmepNBRJNM-
3LLOxTQtiQ3mjO9gGg5KQAo6TdgDI

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Appendix

Questionnaire

The EASE-CO clothing line is conducting this survey to find out the effectiveness of
creating new designs for the line and executing marketing strategies for the
company. Answer the following questions according to your own observation by
putting a check on the lines next to the item. Please return this questionnaire to
the drop box found at the exit of the store by October 1, Friday.

1. Do you consider buying a shirt from the EASE-CO clothing line?

____ Yes ____ No

2. If the EASE-CO clothing line will release a new collection and designs, what
designs do you consider buying?

___ Korean ___ Music Bands / Artists

___ Tie Dye ___ Anime

___ Movie / TV shows

3. On a scale of 1-5, how likely are you to recommend the EASE-CO clothing
line to your family and friends?

14
 ___ 1 Extremely

___ 2 Moderately

___ 3 Not at all

Note: Questions 4 and 5 are included in this questionnaire as a means of

developing a demographic profile of our respondents.

4. Sex

___ Female ___Male

5. Age

___ less than 18 ___ 25-30

___ 18-24 ___30 or over

Thank you for your time in responding, we appreciate it.

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