ChocolaTEA (Matcha (Green Tea) Chocolate)

Marketing Plan

I. Executive Summary

This paper represents the marketing plan for ChocolaTEA which will introduce on
May 2013. ChocolaTEA is a green tea flavoured chocolate balls. This chocolate gets
its rich flavor and quality from using the cocoa bean and transforming it using a unique
formula that gives the chocolate a hint of green tea flavor that melts in your mouth.
ChocolaTEA features an authentic quality product with a unique taste. The initial target
market of this product is the milk tea drinkers and chocolate lovers. It will be first
introduce to teenagers, students and young professionals from all income brackets of
Pasig City with a total number of 50,000 persons. The product introductory price is Php
20.00 each box which contains three chocolate balls weighing 25 grams each. The
initial investment needed for this plan is Php 63,800.00 and the expected income is
Php 70,200.00. The promotional tools that will be used are online marketing, personal
selling and distribution of flyers. Through these tools, it is expected to cover 20% of the
target market.

II. Current Marketing Situation Analysis

Total Market

The initial target market of ChocolaTEA is the milk tea drinkers and chocolate
lovers in Pasig City. The teenagers, students, and young professionals from all income
brackets are the composition of this market. There are more than 100,000 persons on
this category but initially only 50% of this population will be the target in the introduction
of this product.

Chocolates are patronized by people from all ages and gender. They are highly
in demand during the months of February (Valentine's Day) and December (Christmas)

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because people usually give them as gifts. Chocolates can be bought in supermarkets,
grocery stores, convenience stores, drugstores, department stores, and duty free
shops. They are usually packed in foil or boxes. On the other hand, tea consumption is
being driven by growing health consciousness among middle- and higher-income
consumers. Compared to coffee and “other” hot drinks, Filipinos perceive that drinking
tea is more beneficial to the body, especially as some herbs and leaves being used to
manufacture tea are known to ameliorate particular diseases. For instance, tea made
from ampalaya (bitter gourd) leaves is widely perceived to heal diabetes, while green
tea’s high antioxidant content facilitates body cleansing. Such perceptions have
continued to drive the consumption of tea products in a predominantly coffee drinking
market. Tea consumption in the Philippines will continue to grow in the medium term,
although sales will remain limited to middle- and higher-income buyers. Over the
forecast period, total volume sales are expected to rise by a 2% CAGR, while off-trade
constant value sales are set to grow by a 3% CAGR to reach Ps3.8 billion in 2016.

In content full of tea drinkers, the coffee-guzzling Philippines is just starting to

catch up with the rest of its Asian neighbors. But it’s catching up with a vengeance. In
the past year, tea shops have sprouted up all over the metro, effectively cementing its
place as the biggest food/beverage trend of 2011. More affordable than cold designer
coffee, a glass of milk tea every mall visit won’t create too much of a dent on your
summer funds.

The Product/Brand

Chocolate is one of the most craved foods in the world. Ever wondered why
many people turn to chocolates when they are sad?

Studies show that chocolates have many chemicals that interact with the brain
and enhance the mood. Some of the known chemicals are anandamide that causes the
feeling of well-being, phenylephylamine that changes the blood pressure and blood
sugar and increases the pulse rate similar to the feeling when in love, and endorphin,
better known as the happy hormone, because it can lessen pain and decrease stress.
This is the reason why there is a steady demand for chocolates all around the globe.

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 A health themed magazine wrote that we can fight fatigue with foods. Tea and
chocolates are part of this list thus the emergence of this product. Being a chocolate
lover and a milk tea addict, I came out with this idea. Green tea flavored chocolate balls,
why not?

The chocolate balls flavored of green tea will be called ChocolaTEA. The
sweetness of white chocolate is well-balanced by the bitterness of green tea powder.
For chocolate, a matcha made in heaven.

III. Threats, Opportunities, Weaknesses and Strengths Analysis

The following are the threats, opportunities, weaknesses and strengths

pertaining to Matcha Chocolate:
Threats:
1. There might be a high competition in future by copying the idea.
2. The consumers might not like the taste of the combination of green tea
and chocolates.
3. There are many substitutes available in the market.

Opportunities:
1. Consumers are being health conscious. Green tea and chocolates both
contain antioxidants.
2. There is a high demand in milk tea and chocolates. Milk tea stores are
mushrooming while chocolate is always our comfort food.
3. There is no existing product like green tea chocolate in the country.

Weaknesses:
1. It is easy to copy the idea by others
2. Taste differs from the traditional chocolate balls.
3. Substitutes have stronger brand recognition.
Strengths:
1 .The raw materials (green tea powder and chocolates bars) are always
available in the market.
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 2. Low investment cost. The production cost of green tea chocolate is very
low.
3. The product is easy to make.
4. The product is easy to access through the use of technology.
5. The product is the first green tea chocolate in the country.

IV. Goals and Objectives

The main goal of ChocolaTEA is to successfully enter into the market. The
objectives are strategically centered around three criteria: to create strong consumer
awareness towards a completely green tea chocolate product, to establish wide brand
recognition through the capture of market shares, and to become the market leader in
that particular segment within the forecasted sales figures.
For the first year of operation, the specific goals and objectives for ChocolaTEA
are listed below:

Goals Objectives
Sales Volume 11,250 boxes or Php 225,000.00
Market share Initial market share of 20%
Customer satisfaction Initial customer satisfaction of 90%
Brand awareness Raise brand awareness through word of
mouth

Usage Repeat order at least 3 times a month.

Profitability Return of investment – at least 20%

Long Term Objectives:

By the end of the third year of operations, I want to accomplish the following:
1. Current markets. I would like to grow current markets by including different
flavors of our chocolate. I would like to grow the sales by increasing brand
awareness to the consumers and promote repeat purchases.

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2. New markets. By the end of our year 3, I would like to have grown the sales by
20% and have expanded into various retail outlets. I want ChocolaTEA to be a
common brand the people think of when wanting to buy chocolate.
3. More product variants. Part of my three year plan is to introduce more flavours
and sizes.

Sales Projections for Three Years (May 1, 2014 – April 30, 2017)

Sales Projections
May 1, 2014 - April 30, 2015

Month Quantity Total

(Boxes)
May-14 240.00 4,800.00

Jun-14 360.00 7,200.00

Jul-14 540.00 10,800.00

Aug-14 600.00 12,000.00

Sep-14 720.00 14,400.00

Oct-14 900.00 18,000.00

Nov-14 1,440.00 28,800.00

Dec-14 1,800.00 36,000.00

Jan-15 900.00 18,000.00

Feb-15 2,400.00 48,000.00

Mar-15 1,800.00 36,000.00

Apr-15 1,800.00 36,000.00

Grand
Total 13,500.00 270,000.00

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 Projected Profit and Loss Statement
For the Period Ended April 30, 2015

Sales: (13,500 boxes @ Php20.00) 270,000.00

Less: Cost of Goods Sold: 120,000.00
Gross Profit: 150,000.00
Less: Operating Expenses:
Selling expenses: 15,000.00
Advertising expenses: 5,000.00
Distribution expenses: 15,000.00
Depreciation
expenses: 6,000.00
Miscellaneous
expenses: 6,000.00 47,000.00
Operating Income: 103,000.00

Sales Projections
May 1, 2015 - April 30, 2016
Month Quantity Total
(Boxes)
May-15 288.00 5,760.00

Jun-15 432.00 8,640.00

Jul-15 648.00 12,960.00

Aug-15 720.00 14,400.00

Sep-15 864.00 17,280.00

Oct-15 1,080.00 21,600.00

Nov-15 1,728.00 34,560.00

Dec-15 2,160.00 43,200.00

Jan-16 1,080.00 21,600.00

Feb-16 2,880.00 57,600.00

Mar-16 2,160.00 43,200.00

Apr-16 2,160.00 43,200.00

Grand
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 Total 16,200.00 324,000.00

Projected Profit and Loss Statement

For the Period Ended April 30, 2016
Sales: (16,200 boxes @ Php20.00) 324,000.00

Less: Cost of Goods Sold: 144,000.00

Gross Profit: 180,000.00
Less: Operating Expenses:
Selling expenses: 15,000.00
Advertising expenses: 5,000.00
Distribution expenses: 18,000.00
Depreciation
expenses: 6,000.00
Miscellaneous
expenses: 7,000.00 51,000.00
Operating Income: 129,000.00

Month Quantity Total

(Boxes)
May-16 345.00 6,900.00

Jun-16 520.00 10,400.00

Jul-16 780.00 15,600.00

Aug-16 870.00 17,400.00

Sep-16 1,040.00 20,800.00

Oct-16 1,300.00 26,000.00

Nov-16 2,100.00 42,000.00

Dec-16 2,600.00 52,000.00

Jan-17 1,300.00 26,000.00

Feb-17 3,500.00 70,000.00

Mar-17 2,600.00 52,000.00

Apr-17 2,600.00 52,000.00

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 Grand
Total 19,555.00 391,100.00

Projected Profit and Loss Statement

For the Period Ended April 30, 2017

Sales: (19,555 boxes @ Php20.00) 391,100.00

Less: Cost of Goods Sold: 172,800.00
Gross Profit: 218,300.00
Less: Operating Expenses:
Selling expenses: 18,000.00
Advertising expenses: 6,000.00
Distribution expenses: 21,600.00
Depreciation
expenses: 7,200.00
Miscellaneous
expenses: 8,400.00 61,200.00
Operating Income: 157,100.00

V. Marketing Mix Strategies and Programs

1. Product Development Program

Product Brand: ChocolaTEA. For chocolate, matcha in heaven!

Unique Product Quality: ChocolaTEA is a green tea flavores chocolate balls.
Chocolate gets its rich flavor and quality from using the cocoa bean and transforming it
using a unique formula that gives the chocolate a hint of green tea flavor that melts in
your mouth. ChocolaTEA features an authentic quality product with a unique taste.
When consumers eat ChocolaTEA they will be able to taste the superior quality of the
chocolate and they will know they are not eating the average chocolate candy.

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 Packaging: ChocolaTEA is packaged in brightly colored wrapping with bold and
aspect of play paper materials. While the package is a twist bag and chocolate boxes
that used recycled materials.

2. Pricing program
The introductory price of ChocolaTEA is Php 20.00 each box. The box contains
of 3 chocolate balls weighing approximately 25 grams each. ChocolaTEA is affordable
because it ingredients is easily available in the market thus it is low priced.

3. Sales and Distribution

Initially, online and direct selling will be used for ChocolaTEA. ChocolaTEA will
open accounts in Facebook (www.facebook.com/ChocolaTEA) and Twitter
(www.twitter.com/@ChocolaTEA). Customers can order online through these accounts
of ChocolaTEA. All orders online will be distributed during the scheduled meet ups
within Pasig City because it will be offered in this area. Here is how the online
customers can order:

Four Easy Steps to Order:

1. Fill up the Order Form with complete details
ChocolaTEA Order Format
Name:
Address:
Contact Numbers:
Total Numbers of Orders:
Transaction Type: (Pick up or meet up)

2. Send your order form to chocolaTEA@gmail.com or text 0917-7654321.

3. After receiving confirmation text, settle 50% down payment before the deadline.
Applicable for 20 boxes and up. Payment method will also be sent.

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 4. Claim your orders. For pick up, the product is available after three days the
orders were made. Meet up is held at Pasig Market every Wednesdays and
Saturdays ( 2:00 – 3:00PM). Free delivery for 50 boxes and up.
For direct selling, the product can be ordered personally or offered personally to
family and friends.

4. Promotions and Advertising

The main promotional channels for ChocolaTEA are online marketing through
social media, personal selling, free samples and flyers.
For online marketing, Like and Share in Facebook is one of the activities.
ChocolaTEA will post a picture in Facebook. First five customers to like and share the
picture will receive a complimentary box of ChocolaTEA and at the end of the month;
there will be raffle for those who join the contest. One winner will receive a special
package from ChocolaTEA.
Part of my campaign will personally introduce the products to my friend and family
members. They will also be my recipient of free samples. Samples will be given as a
Christmas gift. The objective of this is to get order for New Year and Valentine’s Day.
Flyers will also be given in a nearby area to further promote the products. There will
also promotional activities for special occasions like Christmas and Valentine’s Day.

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 VI. Investment Plans
Listed below are the expenses incurred upon the introduction of ChocolaTEA. A
total of Php 63,800.00 is the initial investment for this product.

Advertisements:
Online: (Php 300/mo) : 3,600.00

Flyers (Php 2.00 @ 100 copies): 200.00

Freebies (Like and Share promo): 5,000.00 8,800.00

Distribution Costs:

Delivery
expenses 10,000.00
Transportation expenses 5,000.00 15,000.00

Research:

Food tasting/ Canvassing for

suppliers: 10,000.00 10,000.00
Equipment:

Laptop & Internet broadband 20,000.00

Utensils/ Molders for Chocolate

balls 10,000.00 30,000.00
Total Expenditures: 63,800.00

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 VII. Estimates of Profitability
The Projected Profit and Loss Statement for the 12 months period ended April
30, 2014 is presented below.

Projected Profit and Loss Statement

For the Period Ended April 30, 2014

Sales: (11,250 boxes @ Php20.00) 225,000.00

Less: Cost of Goods Sold: 100,000.00
Gross Profit: 125,000.00
Less: Operating Expenses:
Selling expenses: 15,000.00
Advertising expenses: 8,800.00
Distribution expenses: 15,000.00
Depreciation
expenses: 6,000.00
Miscellaneous
expenses: 10,000.00 54,800.00
Operating Income: 70,200.00

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 Sales Projections
May 1, 2013 - April 30, 2014

Month Quantity Total

(Boxes)
May-13 200.00 4,000.00

Jun-13 300.00 6,000.00

Jul-13 450.00 9,000.00

Aug-13 500.00 10,000.00

Sep-13 600.00 12,000.00

Oct-13 750.00 15,000.00

Nov-13 1,200.00 24,000.00

Dec-13 1,500.00 30,000.00

Jan-14 750.00 15,000.00

Feb-14 2,000.00 40,000.00

Mar-14 1,500.00 30,000.00

Apr-14 1,500.00 30,000.00

Grand
Total 11,250.00 225,000.00

VIII. Evaluation of Results

The actual sales will be compared to the target sales goal we wish to
accomplish each month. This information will then be compared and modified to the
fluctuations in the environment of which area we are looking at. This will determine if
the marketing plan needs to be more or less accommodating to the markets that we
are looking into.

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 Here is the implementation plan for launching of ChocolaTEA.

Implementation Plan
ChocolaTEA
2013 2014
Product Implementation Plan Marc Apri Ma June July Aug Sep Oct Nov Dec Jan Feb Mar Apr
h l y . t. . . .

Acquisition of resources to
produce
ChocolaTEA
Finding suppliers
Food Tasting
Launch of the product
Promotion/Advertising
Campaign
Creation of Facebook and
Twitter Accounts
Monitoring of Sales
Upgrading of Facebook
accounts

References:
http://cchealth.org/column/2012_0307_healthy_outlook.php

Business World Top 1000 Corporations in the Philippines 2010.

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