Universidad Autónoma de Nuevo León

Facultad de Contaduría Pública y

Administración

Lic. En Negocios Internacionales

Mercadotecnia Internacional

Profesor: MAYELA LIZBETH SANTOYO CONTRERAS

Plan de mercadotecnia sobre un producto o servicio simulado,

incluyendo el desarrollo de las cuatro “P” con base en un estudio de
mercado dentro de un país extranjero a elegir.

EQUIPO:

Antonio Quiroz Keila Evelyn 2123590

Bravo Torres Alba Arellys 2002930

Jasso Molina Kevin 2123565

Rodriguez Montemayor Leslie Michelle 1969955

Piña Cruz Ivonne Carolina 1970952

Rodríguez Treviño Mauricio Alejandro 1979021

Grupo:2Ci

San Nicolás de los Garza, Nuevo León,

02 de mayo de 2022
 INDEX

★ INTRODUCTION………………………………………………………5-7
★ PRODUCT AND MARKET…………………………………………...8
PRODUCT…………………………………………………………………………9-15
Product name………………………………………………………………9
Logo, defines colorimetry and what it represents.……………………...9
Slogan……………………………………………………………………….9
Product description………………………………………………………...9-10
Features…………………………………………………………………….10
Differentiator………………………………………………………………..10
Photos and product images……………………………………………….11-15
Packing………………………………………………………………………15

MARKET ENVIRONMENT…………………………………………………16-18
Switzerland…………………………………………………………………..16
Zùrich ………………………………………………………………………..16
Tourism in Zùrich ……………………………………………………………17
Recycling in Zúrich Switzerland………………………………………….17-18
Weather ………………………………………………………………………18
Income ……………………………………………………………………….18

TARGET MARKET…………………………………………………………...18
MARKET SEGMENTATION……………………………………………………19-26
Geographic………………………………………………………………….19
Demographic………………………………………………………………..19-22
Gender………………………………………………………………………22
Age…………………………………………………………………………..23-24
Family life cycle…………………………………………………………….25
Buying Behavior……………………………………………………………25-26

MARKET RESEARCH…………………………………………………….26-33
Defining the problem………………………………………………………26
Analyzing the situation……………………………………………………27
Getting problem-specific data…………………………………………….27-28
Interpreting data……………………………………………………………28-32
Solving the problem……………………………………………………….33

★ CHANNEL SYSTEM…………………………………………………34

DISTRIBUTION SYSTEM…………………………………………………..35

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DISTRIBUTOR CHANNEL………………………………………………………35-36

DISTRIBUTION SQUARE………………………………………………………36-37

WHAT TO CONSIDER BEFORE CHOOSING A DISTRIBUTION

CHANNEL?.............................................................................................37-38

Kind of product………………………………………………………………37
Final prices…………………………………………………………………..37
Product advertising…………………………………………………………37
Target market………………………………………………………………..38

TIPS FOR CHOOSING A SUITABLE DISTRIBUTION MARKET……..38-39

Competitors and the methods they use…………………………….38

Examine the cost and the benefits………………………………….38
Sort your opinions………………………………………………………39
Have a growth plan………………………………………………………39

DISTRIBUTION CHANNEL ACCORDING TO CONSUMER GOODS...39-40

DISTRIBUTION CHANNEL IN THE DIGITAL MARKET………………..41

★ PROMOTION…………………………………………………………….42
PERSONAL SELLING……………………………………………………………43

SALES PROMOTION……………………………………………………………..44-45

Contests and challenges………………………………………………….44

Flash sale…………………………………………………………………….44-45
Free trial or demo…………………………………………………………...45

ADVERTISING………………………………………………………………45-46

PUBLICITY…………………………………………………………………..46-47

PUBLIC RELATIONS……………………………………………………………47-48

DIRECT MARKETING………………………………………………………48

★ PRICE……………………………………………………………..49

3
PRODUCTION COSTS PER UNITS……………………………………….50

PRODUCT COSTS………………………………………………………….50

VARIABLE AND FIXED COSTS TABLE………………………………….51

PRICING MODEL…………………………………………………………….52

PROPORTIONAL PERCENTAGE OF PROFIT…………………………..52

SALES AND EARNINGS PROJECTIONS………………………………..53

PRICE IN RELATION TO OUR TARGET MARKET……………………..54-56

PRICING OBJECTIVE……………………………………………………….56

★ CONCLUSION…………………………………………………..57
★ ANNEXES………………………………………………………..58-60
★ REFERENCES……………………………………….…………61-63

4
 INTRODUCTION

Marketing is known as the set of processes and institutions that allow the creation,
communication and delivery of exchange offers of goods and services, which have
value for customers, companies and society in general.
In other words, it is a branch of administration that focuses on the communicative
direction of the economic and commercial activities of a group or an individual, that
is, on how to identify and satisfy the needs of the target consumer market.
The objectives of marketing can be summed up in taking the customer to the limit of
the purchase decision, thus favoring the economic exchange between the parties
(buyer and seller) so that both obtain a benefit or satisfaction.

The present work, we will show a market study, the way in which we will distribute
our product, the processes to promote it and in the end, the costs that will lead us to
the price, a key link to solve the company.

The market study is a systematic investigation based on the collection and analysis
of data related to the salient characteristics of the market that a company is
targeting.
When you take the time to do market research, you can often avoid costly mistakes
and minimize financial risks when starting a business. Taking the time to understand
consumers leads to better communication.

On the other hand, distribution is one of the most important factors in marketing,
since without it the best customer service could not be provided.
Companies depend heavily on distribution channels to have the products to sell to
customers in a timely manner. If a company does not choose its distributor correctly,
it can lead to customers being dissatisfied with the product they have just purchased.

Once we have the product, sales promotion comes into play, which is used to
support advertising and personal sales, so that communication is much more
effective.

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That is, while advertising and personal selling give the reasons why you should buy
a product or service, sales promotion gives the reasons why you should buy as soon
as possible.

In this work we will mention how we will develop different strategies in the 5 areas
that are personal selling, sales promotion, publicity, advertising, public relations and
direct marketing.

The price is a key element in everyone's economy because it is a reference and a

monetary limit that impacts our budget. In addition, it is the most tangible
communication tool that a company has with its consumers. Putting this issue to the
end is not because it is less important, it is quite the opposite, but before we had to
know all the costs that our company would handle, to determine our sale price.

It is important to emphasize that our products are intended for sale in Zurich,
Switzerland. Marketing in Zurich, Switzerland has an informal tone that can be fun.
Products are often featured on YouTube, Gmail, and Google Play. For financial
products and legal services, marketing uses a formal tone and style. The consumer
market is the so-called company or organization that is responsible for providing
goods and services to consumers. These markets are primarily influenced by
consumer behavior. Important characteristics that influence purchasing behavior are
taken into account. Some of these factors are social, physiological, personal and
cultural. Social: A person is defined by interaction with friends, family, or status or
self-esteem. Physiological: Biological needs (eat, sleep, sex)

In Switzerland, the consumer market and consumers are personal and physiological
to lead a very healthy life with increased consumption of products and services
related to ecology, good nutrition, sports and disease prevention. More emphasis is
placed on appearance. In addition to these factors, consumers must go through a
process before making a purchase. This process consists of five steps:

1. Recognize the need

2. Identify alternatives
3. Evaluate alternatives

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4. Decision
5.-Post-purchase behavior

Since Switzerland is one of the most environmentally friendly countries in the world,
there is an increasing demand for green products and product-related businesses in
both the consumer and corporate markets. Therefore, we believe that our eco-bag
products will be well received in this country.

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PRODUCT AND
MARKET

8
PRODUCT
a) Product name
Physis comes from Greek, it means "nature".

b) Logo, defines colorimetry and what it represents.

The main colors in our logo are green and lavender:

The color green is mentally associated with refreshing or peaceful feelings, as they
are usually identified with ecology, nature or even peace. Since our business is
focused on ecological responsibility we seek to express this.
Purple and its derivatives are colors that cause restlessness, it is associated with
magic or creativity, it is a quite rare color in nature, it is the striking touch for our logo.

c) Slogan
“Essence of life”

d) Product description
Our bags are made of natural and biodegradable products, therefore, they do not
pollute the environment, the paints we use do not pollute or damage nature, for
example, biodegradable plastics, organic cotton, fabric, canvas, jute, natural fibers,
synthetic, and other renewable materials.

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Unlike plastic bags, our bags are more resistant and can be used for a long time,
besides they have multiple uses, they can be used to carry books, tools of different
types, groceries, clothes, personal hygiene or cleaning products, etc. They can carry
several kilos without being uncomfortable taking the bag or breaking it.
The bags can be customized if they are made to order, any image you want to paint
is possible and also choose the color of the bag, we also have a wide range of colors
and we are dedicated to changing some features depending on the season in which
we are. We always look for updated designs and there are aimed at different ages
and genders.
We are not stuck in the same type and design of the bag, we try to innovate and
bring more varied bags, of different sizes, shapes, and colors, useful and beautiful
bags, at a good price and that do not pollute, practical bags that can be used by
anyone.

e) Features

● Excellent Quality
● Innovative
● Unique material
● Custom models
● Kind to the nature

f) Differentiator
We differentiate by the type of material we use to create bags and backpacks,
adapting unusable tents, to create waterproof bags, which protect your articles from
some surprise rain, which is something you do not see commonly in the market. As
in each season, we modify certain aspects of our logo so that you can notice in
which season they were manufactured and when you bought the product.

On the other hand in our articles you can find, on the edge a metal compartment that
serves to store garbage without soiling your other articles, the metal is molded so
that it does not cut the bag, all in order not to dirty streets.

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g) Photos and product images

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12
13
14
 h) Packing

Our packaging, as well as our bags, are made with 100% biodegradable, recyclable
and reusable materials.

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MARKET ENVIRONMENT

● Switzerland

In the heart of Europe lies this alpine country with dreamy landscapes. Aware of the
wonders it treasures within its borders, Switzerland has managed to protect its
natural environment with care to take off its hat. The Alps occupy most of its territory
and this translates into the inexhaustible offer of activities that we find. Ski lovers can
enjoy the quality of its many resorts. Also in the Swiss Alps is the Aletsch glacier, the
largest in Europe, a phenomenon that is well worth seeing. Getting on a cable car or
a mountain train will also be a good option to enjoy the beautiful views that are
presented to us.

Moreover, its towns and cities enjoy a charm that does not conflict with the modernity
that has always characterized Swiss society. Zurich is one of the most dynamic
towns on the continent whose leisure activities are synonymous with guaranteed fun.

● Zùrich

Located in the northeast of Switzerland, the old town of Zurich is perched on a small
promontory on the shores of the homonymous lake and the Limmat River. In it, the
tranquility and beauty of its streets and the attractiveness of its Renaissance
buildings blend with the economic prosperity of its financial sector and the latest
trends in fashion and art. Zurich has managed to combine the past and modernity
perfectly, as the most elegant boutiques are located in the narrow streets of the
center, and some old mills and foundries house the most select restaurants. How
would the Celts, the Romans, and the Germans who settled in the area imagine that
Zurich would become one of the main cities on the planet, whose inhabitants enjoy
the highest quality of life and whose financial sector continues to prosper thanks to
the good conditions enjoyed by the great fortunes?

The most widely spoken language in Zurich is Swiss-German. In addition, all

Swiss-Germans also speak German, which does not imply that the traveler who
speaks German will understand two Swiss people talking to each other. It is also

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common for the inhabitants of Zurich to master other languages such as English,
French or Italian

● Tourism in Zùrich

About two million people live in the metropolitan area of Greater Zurich. The 900,000
jobs are concentrated mainly in the city of Zurich, the capital of the canton. About 30
percent of the population are foreigners. The fact that Zürich is at the center of the
continent and the interface of three European cultures is evident in everyday life. Its
traditional multilingualism and open character make immigrants feel at home.

If we compare it with the rest of the countries we see that it is the 35th country in the
world by tourist reception. In 2019, 11,818,000 tourists from other countries traveled
to Switzerland.

In 2019, the number of tourists who moved to Switzerland increased by 1,456,000

people, by 14.05%.

● Recycling in Zúrich Switzerland

The Swiss city of Zurich is an example of waste management. Its policy, which is
governed by the concept "the more waste generated, the more paid", has seen a
reduction of 40,000 tonnes per year since its introduction in the mid-1980s.

In the mid-1980s, a change was made to the waste management policy of the city of
Zurich in Switzerland. The new waste management policy, which was accepted by
citizens in the referendum held on 2 December 1990, is based on the principle of
making those who generate waste responsibly. The system, which is supported by a
major information campaign aimed at both companies and individuals ('Zürich
recycling'), applies the most innovative technologies for the clean incineration of
waste that is not reusable.

The results are palpable: during the first years of implementation, there was an
increase of more than 10% in the rate of collection of recyclable waste (from 21% in
1993 to 34% in 1995). In addition, this method ensures that the consumer takes into

17
account packaging when choosing the product to be purchased, which in turn
promotes the design of more environmentally friendly products by manufacturers.
During the period 1992 - 2005, Zurich managed to reduce its waste from 140,000 to
100,000 tons per year.

● Weather

In Zurich, summers are comfortable and wet, winters are very cold and partly cloudy
all year round. Over the year, the temperature generally varies from -3 °C to 25 °C
and rarely drops below -9 °C or rises to more than 31 °C.

Based on the tourism score, the best time of year to visit Zurich for hot-weather
activities is from late June to early September.

● Income

Zurich is a world-leading city with a vibrant financial center. Zurich benefits from the
high level of investment in education which is typical of Switzerland in general and
offers skilled labor at all levels. Many Swiss research and development centers are
concentrated in Zurich, but the most important thing is the service industry. Around
330,000 people have found work in Zurich, with 90 percent in the service sector.
Other important industries are the light industry, machinery, textile, and tourism.
Other areas of growth include biotechnology and life sciences.

TARGET MARKET

Our product is aimed at all the public who need a waterproof ecological bag or
backpack, we go from children to adults, but, we focus especially with the tourists
teenager-adults with an age of 18-35, middle-class high, which takes as an activity to
ride a bicycle, since the calluses that transit can lose, wet or dirty their belongings,
since they are not accustomed to the weather or the rules of recycling, so if they
throw a garbage can be severely punished.

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MARKET SEGMENTATION

● Geographic:
Geographic segmentation is an important sector for the market research because it
allows seeing the different users that are in different areas, it also allows us to see
how the whole country is formed, in this case, Zurich, with this we are trying to say
that depending on each country, different types of products are needed due to
culture, climate, etc.
Segmenting our market with a geographic area is a very good idea, it will let us focus
on a specific place where there is a regional population that is very important;
regional population distribution is important because people within a given region
tend to share the same values, attitude, and style preferences.

Switzerland
Since the 16th century, Switzerland has maintained a firm policy of neutrality; it has
not fought an international war since 1815 and did not join the United Nations until
2002. Nevertheless, it pursues an active foreign policy. It is frequently involved in
peace-building processes worldwide. It is a founding member of the European Free
Trade Association, but notably not part of the European Union, the European
Economic Area, or the Eurozone.

Switzerland’s capital, Zürich, has a territorial extension of 87.88 km², with a

population of around half a million people, considered as the biggest city in
Switzerland.

● Demographic:
Switzerland has a population of over 8 million people, and a territorial extension of
41,285 km², with 26 states, bordered by Italy to the south, France to the west,
Germany to the north, and Austria and Liechtenstein to the east. It is geographically
divided among the Swiss Plateau, the Alps, and the Jura. Due to the high influence
that has with their country neighbors, it has 4 official languages; French, Italian,
Romansh, and German, this last one, being the most spoken in Zürich.

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Zurich is the city with the highest prices on the planet, but also the one that is best
lived, eaten, and bought. With just 400,000 inhabitants, it has plenty of reasons to
attract visitors at any time of the year.

❖ Zones of Zurich

1. Altstadt
It is the historic quarter of the city of Zurich. Administratively, Altstadt is divided, in
turn, into four neighborhoods: the Rathaus area, the Town Hall; the Hochschulen
part, the universities; the Lindenhof area (The Lemon Yard) and City.

Lindenhof and Rathaus correspond to what was once the medieval city, on the left
and right of the river Limmat. City and Hochschulen form the modern part of Zurich,
east and west of the medieval walls. The center of Zurich is paved with pavers,
perfect-and safe for walking at any time.

The key to getting in, out, and moving in the center is the Munster Bridge that allows
you to save the river.

The Altstadt is an eminently commercial area and specializes in tourist services.

There is no lack of good restaurants, some fast food, and typical bars in Central
Europe.

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2.-Langstrasse

Langstrasse is Zurich’s most dynamic district in what was once the city’s red-light
district. It is located just north of the historic center. It is a shopping area where
luxury shops and clothing boutiques compete.

But Langstrasse, literally 'long street', is a world-class nightlife environment where

bars, nightclubs, fast food restaurants are concentrated to eat in local or take away
that do not close all day.

Over time, the district has acquired remarkable popularity with the establishment of
groups of young artists and fashion designers, and very creative restaurant owners.

3.-Toptrek Touren Zurich

Toptrek is the official partner of Zurich Tourism (zuerich.com) for bike activities,
mountain biking, and cross-country skiing: all year round for groups, individuals &
families at advanced & beginner level - expertly, off the beaten track, pleasant &
informative. Bruno Pfeuti, founder and head guide, directed until 2004 the nonprofit
organization Swiss Farm Work/Agriviva und was previously a co-founder of the
Green Party and Town Councillor in Zurich. Years abroad in East Anglia, Western
France, Sicily, and Andalusia gave him insight into other cultures and mentalities.
Besides German, he speaks excellent English, very good French as well as Italian
and Spanish. Toptrek ist offizieller Partner von Zürich Tourismus (zuerich.com) für
Fahrradaktivitäten, Bergwanderungen und Langlauf: ganzjährig für Gruppen,
Einzelpersonen & Familien, Fortgeschrittene & Einsteiger - kundig, naturnah,
vergnüglich und informativ. Bruno Pfeuti, Gründer und Chefguide, leitete bis 2004 die
schweizweit tätige Nonprofit-Organisation Power beim Bauer/Agriviva und war zuvor
Mitbegründer der Partei der Grünen und Gemeinderat im Zürcher Stadtparlament.
Auslandjahre in Ostengland, Westfrankreich, Sizilien und Andalusien gaben ihm
Einblick in andere Kulturen und Mentalitäten. Neben Deutsch spricht er
ausgezeichnet Englisch, sehr gut Französisch, sowie Italienisch und Spanisch.

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We choose these three points because they are tourist places and because of our
research, they attract the kind of target market we need.

People who only look for comfort, if not love innovation, fashion, and art.

❖ Psychographic

We seek to address free people, but without losing responsibility or their heads, so
we focus on finding a branch near a place where they cycle since we perceive an
instinct of freedom in preferring to go by nature that only sees the conventional of the
city, as well as being nature lovers, but why is this important? because only people
who know how important it is to save our planet by trying to pollute as little as
possible see the real effort of our work, Since we have the faithful belief that loving
simplicity does not take away that spark fashionista and fun, our products are for
people who love simplicity, art, nature, but who never lose the touch fashion.

● Gender
The product is directed to all men and women that live in Zürich. According to recent
studies (2018), Zurich live more female than the male population, with a percentage
of 50.2% against 49.8%

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We will target men and women because the products we sell are bags and
backpacks, so we have a huge target market.

● Age

The biggest age group in Zürich, it is between the ages of 25-54, representing
46.14% of the total population. The second biggest group is up to 55 years old,
representing 28.95% of the total population, and finally, the third group is between
the ages of 0-24 years old, representing 24.9% of the total population.

The product is mainly directed to young adults, people between the ages of 18-34
years old, this group represents 22.38% of Zürich’s population, equivalent to the
amount of 340,481 people that live in Zürich.

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24
 ❖ Family life cycle

Zürich people are not extremely expansive and are normally conformed by 3-4 family
members with only one or two children. Most families in Switzerland have pets, a cat
or a dog, with whom they demonstrate extreme affection. On weekends, people
often take trips to visit extended family or friends. Usually, they have a culture of
healthy good food and sports and also are very active and care for their well-being.
Years ago, normally the father worked, nowadays it is normal that both parents work.

❖ Buying Behavior

The consumption expenditure of private households amounted to CHF 357.636

billion in 2018 according to the Federal Statistical Office, broken down as follows:
housing, water, electricity, gas and other fuels 25.2%; health 16.3%; transport,
communications 11.9%; miscellaneous goods and services 11.6%; food and
non-alcoholic beverages 8.9%; restaurants and hotels 8.2%; leisure and culture,
education 8.0%; alcoholic beverages, tobacco and narcotics 3.6%; furniture,
household goods and routine home maintenance 3.6%; clothing and footwear 2.7%.

The vast majority (67%) of European luxury consumers prefer to shop in-store, even
if the initial research is done online. In Switzerland, in-store shopping (with or without
prior online research) remains very popular, with more than 80% of consumers
indicating that they use it regularly.

Mobile phone and shopping data shows: Social distancing has decreased
significantly compared to the first wave. Above all, many no longer want to do
without shopping.
The landscape looks like a normal shopping day. Only the queues in front of some
closed shops and restaurants are reminiscent of Covid-19 and of course the masks.
They even made it to the "sale" sign.

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The inspection at the Glatt center confirms what the evaluation of mobile phone,
shopping and traffic data shows: The Swiss move significantly more in the second
corona wave than in the first, regardless of age. Many seem to do without only what
is explicitly prohibited. Everything else will be done.

MARKET RESEARCH
a) Defining the problem
Zurich Switzerland is a very beautiful place to visit, but many tourists know nothing
about recycling rules or the climate. This can be a problem because, if they do not
have some prior knowledge of the city and visit it, their vacation could be ruined.
As we read in Zurich, the recycling rules are extreme, but this has brought its
rewards to the country not only because it is one of the most sustainable countries,
but has allowed it to be a tourist attraction, Because, who would not be interested in
visiting a country not only BEAUTIFUL but also CLEAN? Many of the inhabitants are
already accustomed to these rules, as it is part of their routine, but what about
tourists who do not know the rules? Normally they have to be warned that if they
throw garbage, they will spend their beloved holidays in jail.

Switzerland is one of the least polluted countries in the world and even has the
advanced technology to tackle this huge problem. However, in our research on
plastic pollution, we found that "until now, it has been simplistically assumed that
about as many mineral raw materials are used to produce plastic as there are raw
materials, mainly oil, in plastic," says Livia Cabernard, a Ph.D. candidate at the
Institute of Science, Technology and Policy (ISTP) at the Technical University of
Zurich (TU).

On the other hand, the weather can be a big problem, because many tourists are not
prepared for the rains. For example, one of the most popular ways to travel in
Switzerland is the bicycle. Even in cities where the winter is hard and often snows, it
is common to see men and women go to their workplaces mounted in them (room of
wonders, 2019). But what if you carry a bag where you carry your items, they could
be ruined.

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 b) Analyzing the situation

Due to the 3 central problems of Zurich, which are the ignorance of tourists about the
climate, the rules of recycling, and the great production of plastic that has been
generated recently, it is important to find the solution to reduce the production of
plastic, because if these chemicals continue to spread through the city, especially the
rivers of Zurich, it could destroy the flora and fauna that characterizes the city so
much.

On the other hand, but no less important is to warn tourists about the recycling rules
so that they do not go to make a mistake that can ruin their holidays and end up with
a bad experience in the country.

That's why with our product, we will strive not only to reduce plastic but also to help
tourists have a better experience. Our differentiation is what will allow us not only to
please the market but to grow in a significant way while resolving an area of
opportunity.

c) Getting problem-specific data

We decided to collect our data through a survey conducted on a Google Form, which
we believe is one of the best ways to collect data, due to the accessibility given to
respondents, apart from how fast it is to take the information from the answered
questions and give the feedback of the questions in almost an instant.

A disadvantage of this medium would be the constant change of information if we

leave the form open for a long time, but, the pandemic was a tool that allowed us to
expedite surveys since it not only shows you the results but that graphs them.

27
Through a Facebook page, we decided to present our situation and ask them to
reply to the form, where 8 friendly people helped us to collect information.

d) Interpreting data

In this part, we decided that it was important to ask about your country of origin
because for our brand it is important to know the behavior of each potential buyer
since depending on the country of origin, you can take different strategies.
There was a constant of 3 people, which were Americans.

28
These three questions we decided to join because although we realize in the first
question all respondents would be interested in traveling to Switzerland, none knows

29
that there are recycling rules and only 3 people (37.5%) know what the climate is
waiting for them.

We might hope that if they ever go on a trip they will investigate this data, but the
reality is that by emotion or haste, it is very likely that they will not notice that detail.

Here we can see divided opinions, but even so, they are positive since none of the
people answered a "NO" this allows us to know that there are many possibilities of
sale by tourists. Especially because one of our sales strategies will be to put the
product in view so that they feel the need to buy it and be in line with the fashion of
Zurich that we will create.

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Our brand needs to leave a mark and expand, so the knowledge that most potential
tourists, like to take in some detail when they return from a trip, will want to show us
more about our product.

This information is extremely important. After all, we planned to be located at the

airport because we had a strategy for that place. Maybe this is a good place in the
future when we are already very well positioned, but being a company that is
starting, We will listen to the results of the survey.

The respondents' answers only confirmed our expenses, because, all prefer a
personalized item just what we will offer. This makes each product special,
something that will make our brand progressively more exclusive, making the
customer feel unique and exclusive, an added value that we all enjoy.

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In this last question, we are interested to know if the designs we have created are
attractive to the tourist public or incline to the style handled by Züri-Sack, a brand
positioned in Zurich. But we had good responses from the public.

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 e) Solving the problem

The problem of this city and the whole world is the pollution that is generated by
making many textiles and pigments, as well as the constant creation of plastic, that
even if you try to recycle, sometimes it is not enough, but the answer that our brand
has found and will solve is:

1.- Create fabric bags to reduce the use of plastic bags, the fabric to be used will be
JUTE fabric, which is 100% biodegradable is a low-cost natural fiber with a rustic
appearance. It is used to make crafts, ecological bags, and create home
decorations.
2.- We will offer another type of bag that will be for the rainy days this is a little more
daring and save many people from any accident, they are waterproof bags and
backpacks that are made with old colored plastic tents, of used trucks, seat belts,
and bicycle cameras. In the same way, they can be made with plastic bottles, but it is
a longer and more expensive process, although it is a step that we have in mind in
the long term.
3.- But that’s not all, inside the bags or backpacks will come to a compartment,
made of recycled metal, in the case at some point you have garbage and do not
have a garbage bin nearby in that compartment you can keep it without having to
throw it in the street, just as he would be isolated from soiling other belongings.

All the ideas that were raised are with the aim and commitment to always use
recycled material, this to reduce waste and that better than in Zurich, Switzerland.

33
CHANNEL
SYSTEM

34
 ● Distribution system

Being a company that just started its operations, we chose a retail channel, which
will be Parisina will sell us the fabric, paintings, rhinestones, and threads, to make
the bags, although it would have been much easier, to buy the bags made, our
distinctive is to customize them at the moment, just as the fabric of the bags are of
low quality and as a new company in a demanding country, the best thing for us is to
present us with products of excellent quality.

In the bags that will be waterproof, our channel will be retail, because one of our
proposals is to reduce the plastic, the first thing that will be done is to locate truck
tarps, for which in a vehicle we will be looking, city by city our material.

● Distributor channel

Our distribution system will be direct because we will make the bags, being a
personalized product, which will quickly be delivered to the customer once
completed.

Prices are in dollars.

In the process of making the product, we speculate

that it will cost $7.08 because a product needs 1
meter of fabric $1.03, for spinning it will be $0.05,
labor for a $4 unit, logo design will be $1, and use of
machinery per unit $1.

The customer will be given the option to customize their

product so the painting process will cost $5 (already
including the paint).

The first branch that we will open will be in Langstrasse,

because they are very close to the other 2 districts/streets that
we had contemplated, just like it has all kinds of atmosphere,

35
it is visited from the most fashionable to very simplistic people.

Because it will be a physical store, we looked at different platforms and the most
reliable was Nestpick, where we showed that in such an area rents, $2,150, while
the way we will deliver the products will be bags made by us from recycled sheets
which has a processing price of $1 for 10 sheets.

We will also have a page to send products because neither Amazon nor Free Market
has a presence in Switzerland, so they cannot be intermediaries, so we will create
our own page and we will take care of the logistics, because of the above even if we
sell online we will still have a direct channel.

The cost of designing a sales website ranges from $2,500 dlls to $4,000 dlls for
budget packages that include limited features and sections.

The prices are in euros.

In general, it is the prices that are

treated in Switzerland for shipments.

● Distribution square

In our product we choose the selective distribution, but why? because they are
bags and backpacks, in supermarkets or stores where they sell different products
could go unnoticed, just as our brand offers customized products and in a

36
supermarket would only sell a repetitive model only that with different shades, and
that’s just the opposite of our brand, because we don’t just want to sell a bag, we still
want to sell experience and all this will happen in the branch, because having a
unique product, made for you with a certain proposition increases its sentimental
value, which makes the buyer, take affection to the brand, because not only will you
see the product that I buy, you will also see the and all the personalized process that
the customer chose and in a certain way I believe.

Having this kind of system is a bit risky because we might lose some presence at
certain outlets, but isn’t it nice to have something that nobody else has?

● What to consider before choosing a distribution channel?

Kind of product

Our product is needed by consumers every day to load their belongings and more in
rainy weather, which makes the range of waterproof products necessary if they want
to take care of their belongings, our product is very resistant, Being bags and
backpacks of fabrics as well as tents have a long life span, which could be a
disadvantage for us, but being in an area of many tourists, the flow of people is
varied and are not the same.

Final prices

Our product is accessible although it is not the cheapest in the world and with the
customizations we do will carry its cost, it has no raw material that is very expensive,
we are sure that our customers will take it as a cheap price because being recycled
materials (tents) we save a lot in having to manufacture them.

Product advertising

About people living in the Langstrasse area, you do not need to inform them, about
who needs our product, but in what is the tourist area, I think it will be important to
create ads near airports so that you know and know that you need our product.

37
Target Market

Our product is aimed at all the public who need a waterproof ecological bag or
backpack, we go from children to adults, but, we focus especially with the tourists
teenager-adults with an age of 18-35, middle-class high, which takes as an activity to
ride a bicycle, since the calluses that transit can lose, wet or dirty their belongings,
since they are not accustomed to the weather or the rules of recycling, so if they
throw a garbage can be severely punished.

● Tips for choosing a suitable distribution channel

★ Competitors and the methods they use.

Our competitors have only met the need to use their products, such as: Use the bag
when you need it

❖ Use the backpack when it’s raining.

❖ But you haven’t attached any feelings, nothing to hook your client.

That will be our key point and where we will engage our client, from the emotional.
Since we first tell you the multiple benefits of our rot, so you realize you need it, but it
will not only be a basic purchase but also have a meaning "you are not buying a
product that spends enough time being manufactured", on the contrary, it is a
product that is simple and unique and it was not necessary to harm our planet.

★ Examine the cost and benefits

Our costs are accessible just like our delivery methods, the first is simple since you
just have to go to the branch and enjoy the experience of personalizing your bag or
backpack, The second option, we have our website that from there you can choose
which model you want and specify if you want it to be customized.

Custom costs will already be included so that the customization is "free". Nothing
better than added value, but even so the company will be winning.

There is not a lot of science or complication that customers like, which is fast, free,
and simple.

38
 ★ Sort your opinions

The goal is to facilitate the purchasing process for the customer, reduce the costs of
the company and increase the efficiency of the process for both.

Although in some previous points we mentioned a free service, this is not entirely
true since, it will be included that service, everything to better engage our customer
and have a connection with our product.

Having 2 distribution options may be "complicated" for many companies, but for us, it
will only be the opportunity to expand.

★ Have a growth plan

Our goal, like many other companies, is to spread out, but specifically, where the use
of plastic bags abounds, as well as in rainy areas where our waterproof bag options
will be a wonder, the change has begun in Zurich, Switzerland, but it will not be the
first or the last city to press our products, once all Switzerland is aware of our brand,
our next goal is Germany, another great country with great environmental
awareness.

Although in our plan we will develop it by cities and depending on the impact we will
advance, we aim to have stability in 3 years, to penetrate the next country and so on.

● Distribution channel according to consumers goods

A distribution channel is those that define and mark the different stages that the
property of a product goes through from the manufacturer to the final consumer, in
the case of Physis our channel is:

Producer > Consumer

To achieve to create ecological products we need raw materials, initially, we will work
mainly with local suppliers to facilitate the supply of raw materials and to be able to
cover the demand. However, we contemplate the idea of contracting external
suppliers to evaluate costs and reduce investment in raw materials.

39
In order to get our product to the customer's hands, we have a web page where we
show our work, where it is possible to place orders regardless of whether the product
is only one or hundreds of them, we also have the customization of each bag with
contaminant-free materials.

We also focus on selling to companies dedicated to the sale of different types of

products, since the volume of plastic bags they supply to their customers is high, and
since our reusable bags can be used by their customers longer thanks to its strength
and durability causes companies to supply fewer and fewer bags, representing a
saving for these, we also hope that in the future plastic bags will be banned.

More and more consumers care about the environment. Our products are
eco-friendly and help to improve the perception that these consumers have of the
companies that supply our reusable bags, showing a commitment to caring for the
planet. In addition, our prices will be competitive because we have control over the
production chain.

Since each of our products is personalized and then delivered directly to the
customer we consider that each bag has a higher value, not only monetary but also
could be even sentimental.

Each bag made by us is unique, this means that there will not be another one like it,
this attaches greater importance to the customer, the uniqueness of our product will
definitely make whoever buys it feel happy.

We use high-quality materials therefore our products are also high quality, we care
about the comfort of the customer, not only for the shape or style of the bag, also for
the design impregnated in these, the design chosen by the customer, an image in
which we strive to recreate for greater satisfaction, to represent the essence of each
order, the essence of each customer regardless of whether it is an individual or a
large corporation, we seek to reproduce each symbol ordered and that this shows
anyone who sees it that using environmentally friendly materials and completely free
of pollutants can find the true essence of life.

40
 ★ Distribution channel in the digital market

The way we will handle ourselves in social networks will be mainly in Instagram and
Tik Tok, where we will make reels where we will show our processes and packaging,
these platforms are the most popular of the moment, so they will attract several
customers. But good that will be more detailed at the stage of promotion.

In the description of our profiles, we will put our online shop link, which will allow you
to see our range of products.

41
PROMOTION

42
 ● Personal selling

Personal selling is one of the most important components of the promotion mix, thus
it helps companies to establish a personal relation between the sales staff and the
clients, which makes it easier to resolve any inconvenience that the customer might
have. This is why our company needs to establish a branch office which will be
integrated by our sales staff. In the case of our product it is in fact necessary for the
establishment of the branch office so our staff can conduct our businesses making it
easier for our sales staff to perform personal selling either by direct spoken
communication or over the telephone.
Some of the main strategies of personal selling that we will be implementing for the
selling of our different bags are:
- We encourage our sales staff by giving them bigger bonuses and longer vacations,
this will be distributed according to the number of customers they’ve brought to the
company, and the quantity of bags they accomplish to sell.
- Establish a prospective list of clients that our sales staff will be making visits to,
composed from current clients, visitors of our websites, past clients or our own
network. Then we obtain as much information from the perspectives as we can get,
and choose a specific salesperson according to the information we gained.
- Always follow up every purchase so we resolve any doubts or in-satisfaction the
customer might present from our product.

The branch office will be located in Zurich, Switzerland. An office in this city costs
around CHF 400-700 monthly per person.
The salary to our salespersons also varies and goes around CHF 56'636 per year or
an equivalent hourly rate of CHF 27. In addition, the average bonus is of CHF 6'315.
Salary also depends on the experience and the antiquity of the salesperson, an entry
level salesperson (1-3 years of experience) earns an average salary of CHF 34'129.
On the other end, a senior level salesperson (8+ years of experience) earns an
average salary of CHF 70'155.

43
 ● Sales promotion

It is unavoidable not to use sales promotions because sometimes there is a product

that is delayed, so it is better to have a minimal profit than to have losses. For which
we have 3 strategies, which in our experience work wonderfully.

1. Contests and challenges: In this section we will see one of the well-known
"raffles", which will take place on each important holiday or each holiday season, this
strategy will be issued on the Instagram page, where there will be a dynamic, there
will be 2 sections one for local consumers and one for people planning to visit Zurich,
Switzerland, which will be:
LOCAL
* Share the post on your Instagram stories
*In a single comment, mention 3 friends who they have to "like" your comment and
follow us in the same way
* Your 3 friends must also upload the post to their stories, mention you and mention
us.
*When the winner is determined, you will be asked for your email address to agree
on the date on which you will pick up your prize at the branch.
FOREIGN
*It will be essential that they have a scheduled flight in a range of 3 to 4 months.
* Share the post in your Instagram stories.
*In a single comment, mention 3 friends who they have to "like" your comment, all 4
have to follow us on the page.
* Your 3 friends should also upload the post to their stories, mention you and
mention us.
*When the winner is determined, the mail will be requested and the entire process
will be taken, where it will be essential to have a voucher that has a flight scheduled
in a range of 3 to 4 months.
*To claim the prize you will be asked to present an ID.
2.-Flash sale

The flash sale is a promotion or rebate applied to the prices of some products, only
for a short period of time. In our strategy, we plan to make such sales on Sundays in

44
our online store, between the hours of 8:00 to 12:00 pm, here we will show the least
sold products, this type of sales, encourage to buy, because, being at a low price
believe that they are missing an opportunity and create a false need to buy.
3.-Free trial or demo
Here what we will do is a partner with a company that offers the service of cycling to
tourists so that in one of its packages offer to live the "experience of our product"
which will take you during the trip, so see how resistant and good our product is, all
this in exchange for promotion of your company in our stores. It would be mutual
support.

● Advertising

Televisions are found in almost

every home, so a TV ad will have a
powerful impact. TV ads cannot be
skipped and have more reach than
any other media channel. This
increases the likelihood that viewers
will visit the website and make a
purchase after seeing a TV ad.
Costs (in franc): $2,500

An online commercial would help us

to show a new concept, generate
enthusiasm around the launch of a
new product that is unique in the
market, since normally the
ecological bags are mostly the
same, internet, being almost
everywhere, would make our
product reach many people,

45
especially young people who we consider are more aware of our environmental
problems. Costs (in franc): $1,500.

Physical advertising generates a

greater emotional response and a
greater and clearer recall. A billboard
is one of the simplest and most
eye-catching ways to get into the
heads of our future customers. Its
main purpose is to present the
product in a clear and concise way
so that the brand is easy to
remember and the message
captivates the recipients. Cost (in
franc): $1,000.

● Publicity

1.-Our first publicity strategy will be through

social media, this by creating social accounts
of the brand and sharing news, products, and
important things. We will create Facebook
and Instagram accounts.
Cost:If it is on our page is free, but if we
choose one of the instagram tools are $1.72.

46
2.-Our second strategy will be publicity in magazine covers and magazine articles,
we will post an article in a modern local magazine to promote our product and our
brand, so people know us and what we do
Cost: Fr 2,000
Design:

3.-The last publicity strategy will be a 20 seconds announcement on the radio,

so people can hear us from any place of the city
Cost: Fr 150.
● Public relations

Our opening party will take place in Zurich, Switzerland. This country is known for
being one of the most developed countries in different aspects of environmental,
human rights and animal rights. Part of our public relations is this opening party, we
support the social causes of this country, one of these is the protection of all animals
so we decided to create a campaign for the opening party called ¨Bring your dog¨ in
which there will be various activities to promote our brand while we can live with the
canines.

The company applies public relations by supporting social causes and similar
activities and uses these activities to communicate to target customers regarding
what the business does to address relevant social issues. In this regard, our
company promotional mix involves public relations to address social issues and to

47
promote the brand, so that current and potential customers develop a better
perception about the company and its products.

● Direct Marketing

Our first strategy in direct marketing is by email marketing, one of our ideas with
email marketing is that each of our buyers receive an email with their experience of
the product, and that they can rate the product they bought.
Cost: Free

Our second strategy in direct marketing is through social networks, being on the
main social networks used in the country, which in this case are Facebook, Twitter,
Linkedin and Instagram. We will focus on advertising on Facebook and that more
than 89 percent of the population has that application.
Cost: Free

Our third strategy is to have our own website with all the products we offer, so that
customers who cannot go to the physical store can buy any product we carry online.
Investigating the price of designs for a website in Europe costs approximately €415.

48
PRICE

49
Production Costs Per Units

Costs are in dollars.

Direct Raw Material Costs Per Unit

1 meter of fabric $1.03

Paint $0.50

Thread $0.20

zipper $0.15

Total $1.88

Indirect Material Costs Per Unit

Scissors $0.35

Sewing machine per hour $0.49

Painting brushes $0.20

Total $1.04

Direct Labor Costs Per Unit

Collecting the material $1.0

Sewing $1.5

Painting $1.2

Total $3.7

Total Production Cost $6.62

50
 Variable and fixed cost table.

Fixed cost table

CONCEPT per month COST (USD)

Rent $2,150

Electricity $37

Salaries (for employee, we got 4 $250

employees)

Telephone $40

Internet $60

Advertising $600

TOTAL $3,137

Variable cost table

CONCEPT per 2 month COST (USD)

Supplies $2,648

Packaging $150

Distribution cost $60

Repairs $100

TOTAL $2,958

51
 Pricing Model

The final price of our product is $15

The methods used were Market Price and Comparison, mainly because for the
first and second determinant we needed more extensive and specific information that
we did not have yet.
Essentially we compared the price of different sellers, in the Mexican market the
prices varied from 100-500 MXN, that is, around 5-25 US dollars, in the US market
the prices ranged from 10 to 100 dollars and in the Swiss market there were
variations from 38 to 340 Swiss francs, approximately 40-356 dollars, Thus, after
comparing various vendors and products, we came to the conclusion that the best
price for our product would be $15, both for the accessibility of purchase
(price-quality) for the customer, as well as for the greater convenience that our brand
and coworkers would have in the creation of each bag. In addition, the probability
that our sales would increase rapidly month by month due to the fact that other
businesses sell their products at a high price is quite difficult to reach.
The price per unit would change after two months of sales, since we would have the
necessary information to improve our brand and since there are not too many
eco-friendly waterproof backpacks, the price change would not cause dissatisfaction
among our customers.

Proportional percentage of profit

Product Cost of Sales price Profitability Gross profit

production without fixed
cost

Backpack
and $6.62 $15 226.60% $8.38
Bag

52
 Sales and earnings projections

To create the following table, we estimate that the company will have in the first
month 550 products sold to generate profits this because our break even point per
month are 375 units, although our product is in a tentative change with the price in 2
months, if the units sold per month exceed our speculations, then we will leave the
price.

Sales and earnings projection from the company

At the first 6 months, the first year and third year of operation

First 6 months Year Third year

Sales in units 3,300 6,600 19,800

Revenue $49,500 $99,000 $297,000

Fixed cost $18,822 $37,644 $112,932

Variable cost $8,874 $17,748 $53,244

Total revenue $21,804 $43,608 $130,824

53
 Price in relation to our target market

The first graphic represents at what price it would be too expensive to not buy it
between a range from $10-20 usd, the 66.7% answer that at $20 usd would be very
expensive, the 20% think that $15 usd is too expensive, and the rest 13.3% answer
that $10 usd would be expensive for them.

The second graphic represents at what price it would be too cheap to buy it between
the same range, from $10-20 usd, the 86.7% answer that at $10 usd would be
cheap, the minority 13.3% think that $10 usd would cheap for them.

54
The third graphic represents if they would buy the product at the price of $15, price
we have established, the 40% answer that at $15 usd they would buy it, the 26.7%
are insecure if they would buy it at $15 usd, and the rest 33.3% answer that at $15
usd would not buy it

A thing to highlight is that those 33.3% that answer they wouldn’t buy it at $15 usd
correspond to the 33.3% from the first graphic of the people that answer that a price
of $10 and $15 usd they wouldn’t buy it

55
​This third graph represents the percentage of how much money people would be
willing to spend on our product, as we can see 33.3% are satisfied with 15 usd.

Pricing objective

As we know there’s different types of pricing objectives: sales oriented, profit

oriented and sales quo oriented.

In the case of our company, it will be more profit oriented, there’s different
types of profit-oriented objectives, the most common ones are target return and profit
maximization.

Our company took profit maximization as the main goal, this objective is
usually known because it’s focused on setting a price (that can be high or not) to
increase current profits.

The company will establish the exact price at where our profits can increase
by applying different strategies that help in the achievement of this objective, some
of the strategies can increase revenue by boosting the sales values, finding new
customers or markets and obviously frequently checking if the pricing of our products
is still achieving our profit maximization or if there’s a need to changing the price,
and we also can decrease expenses by always making sure to save as much money
possible by analyzing where our cash is being spent.

56
 CONCLUSION

Marketing, as mentioned in the introduction, is extremely important for any product

and/or service, since it helps companies -large or small- to generate profitability.

The creation of this venture was an arduous and long process, made by our team
with perseverance and effort.

We would expect great things from this company, since the idea of taking care of the
environment is latent in many people's minds due to the current environmental
situation and the damage it would cause us. Especially in Switzerland, people are
becoming more aware of this global problem and are concerned about the future that
awaits us.

To achieve the creation of this product, we looked for something innovative,

eye-catching to the eyes of almost anyone, since the quality of our bags is so good
and its price accessible that even people who are not 100% interested in the care of
the environment would be interested in buying us.

So it was that in this time of deep research on sales and advertising, it was easier to
understand how important it is to know how to advertise a product to achieve
successful entrepreneurship.

Advertising is not something simple to achieve, since it is necessary to carry out a

long investigation of different sectors to be successful, an example is the market
study, to know who the products are aimed at, to be aware of current trends to do
your job, to take into account not only this, but also the budget and cost of the place
where you will sell, the price of raw materials, the cost of the creation space, the
salary of workers who will be hired, determine an appropriate price for your product,
make estimates to see if it is profitable or not to continue sales, etc.. It is not really a
simple activity, but you can't call it impossible either.

Finally, we can notice even more how important marketing is for every existing
company, and thanks to this activity, it will be easier for us to get even an important
job in this field of work.

57
ANNEXES

58
59
60
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