University of Cebu – Lapu-Lapu and Mandaue

Cebu City, Philippines

Bachelor of Science in Business Administration

Major in Financial Management

HERDONA SMOOTHIE
Product Launching

In Partial Fulfillment of the Requirements for the Subject

Marketing 121

By:
Apilar, Xziemen Khirsty
Caballero, Mirasol
Fabillaran, Dominic
Sagarino, Brews Juden
Villahermosa, Eliah

Sir Dockie Marlon Montecillo

May 2021
 INTRODUCTION
Nowadays, we ought to see how creative and passionate people are in creating
something new to offer to the market. Successful products in the market always
have one thing in common, and that is by having an attractive unique selling
proposition that easily targets their consumers. There’s something about it that
makes it stand out from the competition and compels consumers to choose it over
something similar and tend to try the product as they never have tried it before.

Firstly, figuring out what makes a product special ahead of its launch is very
essential. We, as marketers, need to know why someone would want to buy our
product instead of the competitor’s product. That is why, we came up with this
product called “Herdona Smoothie”. This smoothie is super sweet, creamy, and full-
to-the-brim that will make people wants to try and taste it. It is made of whole fruit s,
milk, and chocolate syrup. This smoothie might look simple and taste like a decadent
dessert, but it’s actually full of nourishing, whole food ingredients that you can feel
confident serving your consumers and no regret upon trying it. New products and
features, or even products that already exists that may have a chance to trend in the
market, are essential for sustaining and growing a business, and marketing can
make or break the success of a product launch.

Marketers are already aware that product launching has a lot of work to do. It’s
an exciting time and also at the edge of using your full knowledge to make this
product available in the market. To ensure product launch success, the company
must understand its buying audience and where that audience goes for information
that will be supported by 5p’s of Marketing stated below.

PRODUCT
It is with great pride and immense pleasure to introduce our latest product,
Herdona Smoothie, in the beverage line-up, to you which will revolutionize the
industry. The company assures its consumers that they can greatly afford the
product that is worth every penny.

Whether made at home or in the world's best pastry chef's kitchen, chocolate
and fruits are a harmonious match made in heaven, when paired right. One of those
are Chocolate and Banana, mixed with Avocado feeling. It is an unbeatable classic.
Bananas are stuffed with all the minerals you will need to combat that worst
hangover. Bananas make you smarter and are rich in antioxidants. Secondly,
Avocados help to protect against heart disease and lower blood pressure. They are
also an excellent source of potassium, folate and fibre, all of which benefit the heart
and cardiovascular system. Lastly, our main ingredient which is the Chocolate, our
famous aphrodisiac, almost always steals the spotlight when it comes to food. Most
people love chocolate. Eating chocolate may have the following benefits, that
includes lowering cholesterol levels, preventing cognitive declines and reducing the
risk of cardiovascular problems.

When mixed together, when Banana, Avocados and Chocolate are in one, it will
most likely give you a healthy lifestyle and a refreshing soul as it quenches your
thirst as you sip your smoothie made mainly with these three. The creation of this
product is an innovation in the beverage industry in general, the way the company
creates its flavors that other people can't even imagine tasting from other brands.
When people think about healthy food options, they think about the bad flavors of
diet but in this product, it is a mix of chocolate banana, and avocado , a dessert
flavor smoothie where you enjoy it while being healthy.

PRICE
The Herdona Smoothie uses raw materials wherein the costs of this particular
raw materials or ingredients are fluctuating and inconsistent. With this, the company
will be using the cost-based pricing (mark-up on cost) wherein the selling price of
the product will be determined by adding a profit element or the mark-up percentage
per piece of the product. The company will be having a 1.5% mark-up from its
original manufacturing price. In this way, the company can sustain a profitable
income, for the price of the product will depend on its raw materials’ price. This
doesn’t mean that the price will be fluctuating as the raw materials’ cost will increase
or decrease, such, the business will be ensuring the consistency of the price by
finding a good supplier who will be consistent with the cost. The calculation of the
production cost and the arrival of the selling price is shown below:
Production Cost
Hershey’s Chocolate Syrup = PHP 13 (30ml of 300ml:converted(PHP130)
Selecta Skim Milk = PHP 8.5 (100ml of 1L(PHP85)
Banana = PHP 16 (2pcs)
Avocado = PHP 9 (1pc)
Ice Cubes = PHP 8.75 (1/4 of 1 pack(PHP35)
Stick-o = PHP 6 (3pcs per PHP 2)
Total: Php 61.25 / 2 serves(16oz)
= 30.625 + 2.95 (cup with cover: PHP 295/100pcs)
= 33.575 x 1.5(mark-up)
PRICE: Php 50.3625 or Php 50

PROMOTION
Advertisement
● Digital poster - The digital poster will be posted in social media sites such as
Facebook and Instagram to promote and increase brand awareness to the
target customers.

Special offers:
● Discount - Regular customers can have the discount by availing our promos
like completing the said task or gaining points by purchasing our product
depending on how many purchases they have made.
● Freebies - It is done on the first day of selling in which the customers get
freebies like buy 2 get 1, key chains, or customized pens.

PLACE
The product is going to be sold directly to the customers in the stall using the
direct channel. The majority of the tasks will be inside the distribution channel. It is
convenient for both seller and the buyer since the preparation of the Herdona
Smoothie is easy to prepare and holds short waiting time. Additionally, to cater the
needs of the customers, the sellers will also deliver the product personally and sell
the product door to door. The business will be located at the Sugbo Mercado in
Lapu-lapu wherein teenagers, adults or tourists are most likely to spend their time
even though there are more competitors nearby. It is a perfect location for people
looking for a place to grab foods and drinks.

PEOPLE
In starting a business, knowing your prospective buyer is very important when
establishing a new business. Herdona Smoothies appeal to people of all ages,
particularly students who enjoy sweet and cool smoothies after a long and
exhausting day in working with their modules. Next on the list are the workers, they
are the one that has a high probability of purchasing the product because they do
have a source of income and it also refreshes their brain after or before going to
work. Third are the shoppers, since it is located near at Gaisano Grandmall Basak.
Visitors/Tourists also can surely satisfy their cravings by purchasing the smoothie
which is also new to the place. Lastly, it is open to anyone who wants to buy the
product since there is no age restriction and can be beneficial to one’s health.

CONCLUSION
Taking a long time to perfect your product before going to market could be the
reason your decisions can be shaky. Keep your eyes wide open for consumer
feedback. If you make a mistake, own it and make it right. This way, you’re not only
gaining the customers’ loyalty, but you’re positioning yourself as an ethical innovator
who takes the customers’ feedback to heart.

We live in a country where its weather is always hot and that is why people tend
to look for cold and refreshing beverages that can satisfy them. With that, we are
putting this product in the market not only for those regular people but also for
those health-concerned individuals who are trying to look for a healthy alternative for
their drinks. We can say that we already have competitors that are targeting the
same market but consumers always look for something different and that is where
our flavor comes in.
PRODUCT LOGO

PRODUCT PACKAGING