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CHAPTER II
MARKETING ASPECT
This chapter explains the market feasibility of Fruitle Tea in the targeted Location,
Kapasigan, Pasig City. This includes the Marketing Objectives, Country Profile, Industry
Analysis, Target Market, Product Information, Marketing Mix, and the Projected
Sales.Marketing Aspect
1. Marketing Objectives
In order for a company to grow, marketing is very essential. A company needs to set marketing
objectives to expand the production to the market, setting and objectives makes the business to
be known and to increase sales.
Fruitle Tea is looking forward to increasing positive product reviews. By increasing the
positive reviews, there will be a lot of possible customers that will be interested in buying the
product. The more customers, the more profit the business will have. The more customers who
love and enjoy using the product, the business will continue to grow and to expand.
Secondly, is to increase profitability. When the profitability is increasing, the operation of the
business will continue. There will also be a possibility that the business will have variants of the
product. The bigger the income, the more quality of the product.
Thirdly, is to increase brand authority. This business believes that by increasing brand
authority, it comes with additional opportunities to engage audiences, and this, in turn, makes it
easier to compete against other companies.
2. Country Profile
2.1 Product- market Fit
Fruitle Tea is the product that offers a variety of fruit-infused tea options that can increase
customer satisfaction and loyalty, leading to higher sales and profitability for the business. This
product already identified the target market in the Kapasigan Pasig City, this product gives the
customers satisfaction and benefits. Fruitle tea will surely satisfy the customer and assure that
the product will provide the demand of our customers. Due to the high cost, the fact that
customers want something new yet at the same time is sustainable. In addition the product is
relevant and healthy because it has fresh fruits at an affordable price.
References:
The company's target market is the 18-40-year old residents of Kapasigan Pasig City who are
students, workers, and health-conscious people. There is a good possibility that the target
customers will buy and love the Healthy version of tea because there are many
health-conscious people today as a result of the high dangers of health problems. Fruitle Tea
aspires to create items that will set them apart from their competitors and a product that offers
premium nutritious and innovative teas.
3. Industry Analysis
3.1 Porter’s 5 Forces Model
Table 2.1
Table 2.2
Major Players
Sales Data and Trends of Major Players
Company Major Brand Same Period Same Period 5
Name Retail Value Years CAGR Info Source
RSP in SGD
Table 2.3
Table 2.4
The two tables above show the top two major players and top three bottom players of the tea
products in the Philippines. The top two major players are Lipton Green Tea with 20,500,000
retail value RSP and 5.48% CAGR and Ginger Tea with 8,200,000 retail value RSP and 5.75%
CAGR. While the top bottom players are Glutalipo with 500,000 retail value RSP and Glowlean
with 200,000 retail value SRP.
In 2014, the Philippines' tea market had a value of 55.20 million USD (based on retail pricing).
The tea market in the Philippines is anticipated to grow at a CAGR of 6.70% each year from
2019 to 2024, reaching 109.79 million USD (in retail prices). Compared to the rise of roughly
7.64% each year that was seen from 2014 to 2018, this represents a drop.
In 2014, the average per capita consumption in terms of value was 0.55 USD (at retail prices). It
increased at an annual CAGR of 6.21% over the following five years. The indicator is expected
to slow down and expand at a CAGR of 5.37% per year over the medium term (by 2024).
In recent years, the tea market has seen a significant evolution in keeping with shifting
consumer trends. The demand for healthy green, functional botanical teas and herbal blends
has increased since tea lovers nowadays are more interested in high-quality goods with an
interesting backstory and beverages that provide them with specific health advantages.
Additionally, the way that tea is perceived has changed as well. The majority of younger
customers now see tea as a sensuous and healthy beverage.
The introduction of tea pairing menus is another intriguing development in the tea industry.
Different restaurants have been attempting to improve the dining experience by creating a
multi-course tea matching menu as customers are increasingly choosing unique and
experience-driven products. The creation of fresh ready-to-go drinks and iced tea varieties has
also led to the tea market's expansion outside the realm of heated beverages. For instance,
kombucha has had significant expansion in recent years, going from being a specialty item to
one that is now widely available in stores.
Table 2.6
Major Product Users
References:
Figure 2.1
Chart View of Retail Volume Sales of Fruit Tea in Philippines
Source: Euromonitor
Figure 2.2
Table View of Retail Volume Sales of Fruit Tea in Philippines
Source: Euromonitor
In 2023, the Tea category will generate US$102.10 million in revenue. The market is anticipated
to expand by 3.32% yearly (CAGR 2023-2025). Comparatively speaking, China will generate
the majority of income (US$111,800.00m in 2023). In 2023, per-person revenues of $0.90 are
produced based on population statistics. By 2025, out-of-home consumption (such as that found
in bars and restaurants) will account for 39% of spending and 4% of volume consumption in the
tea market. By 2025, the volume in the tea segment is anticipated to reach 3.67 million kg. In
2024, it is anticipated that the tea market will experience a volume rise of 2.5%.
In the tea segment, the average volume per person is anticipated to reach 0.03 kg in 2023.
The table above shows the total population of Pasig City from 2020 to 2025 based on the
Philippine Statistics Authority. It also contains the percentage of the company's target market
population from the total population of Pasig City.
2009 4,054,402,906.26
2010 4,241,701,348.29
2011 5,420,205,135.48
2012 5,329,622,232.65
2013 5,966,132,489.64
2014 6,829,300,311.36
2015 7,786,677,990.76
2016 8,271,391,806.83
This table shows the average gross income in the year 2009-2016 of Pasig City. It shows
that every year every person in Pasig increases its Annual Salary. To help themselves to provide
for their needs.
The table above shows the Retail Volume of Tea (in kilograms) in the Philippines from
2015 up until the forecasted year which is 2025. It shows that the sales will increase annually
especially in 2019 to 2022 because the pandemic placed a major focus on the benefits of
frequent Tea and consumers will continue to maintain high standards when it comes to Tea.
The table above shows the Retail Volume of Tea in the Philippines from 2015 up
until the forecasted year which is 2025. It shows that the sales will increase annually
especially in 2019 to 2021 because the pandemic placed a major focus on the benefits of
frequent Tea and consumers will continue to maintain high standards when it comes to
Tea.
According to the Philippine Statistic Authority, Pasig City had a population of 505,058
people in May 2000. This was an increase of 33,983 people over the 471,075 people registered
in the 1995 Census of Population (POPCEN). Pasig City's annual population growth rate from
1995 to 2000 was 1.50 percent, which was lower than the rate from 1990 to 1995 (3.22 percent).
If the city's current yearly population growth rate continues, Pasig City's population is predicted
to double in 46 years.
The total number of households climbed to 107,835 from 104,242 in 1995. The average
household size in Census 2000 was 4.67 people, which was higher than the 1995 number of
4.51 people but lower than the national average of five people.
According to (Statista, n.d.), This graph shows the performance of Tea sales in the
Philippines. It illustrates the percentage of Filipinos who buy tea away from home and the
percentage of Filipinos who buy tea at home. It reveals that from 41.81% in 2015 to 43.67% in
2017 buy Tea at Home. While the percentage of Filipinos who buy tea outside the home was
22.47% in 2015, it increased to 24.57% in 2017. Because of the epidemic, Filipinos purchased a
lot in this business in 2019. Tea consumers keep their high standards in order to avoid
contracting a virus. This Graph shows that a lot of Filipinos will buy at Tea at Home rather than
Tea out of Home.
The table above depicts the Retail Volume of Tea (in kilos) in the Philippines from 2015 to
the anticipated year of 2025. It indicates that sales will grow yearly, particularly from 2019 to
2022, because the pandemic has focused attention on the advantages of regular Tea use, and
consumers will continue to have high expectations when it comes to Tea.
4. Target Market
Fruitle Tea chose to sell our products to the residents of Kapasigan Pasig city. It targets
the Kapasigan residents male or female as this product is a necessity to any type of gender. It
target ages 18 years old to 40 years old
4.3 Geographic
References:
Fruitle tea chose to target first the residents of Kapasigan pasig. Despite its small Barangay still
maintains living with wealth and good standard among the other products.
4.5 Behavioral
According to Cebudaily (2019), Perhaps because life is harder, Filipino consumers appear to be
developing wiser purchasing habits. They seek out promotions that offer their favorite products
at lower prices and seem to be doing more price comparisons before making any purchases.
The mere act of choosing at the grocery, at the supermarket, boutique, or in the mall are more
than just shopping and buying. For us Filipinos, the power to choose is more than just about
which brand or product to bring home; the choice also reflects how we are answering the call to
be responsible individuals while staying true to our roots.
The two tables above show the consumer behavior in the Philippines towards home activities
and leisure activities. It can be seen that a huge percentage of Filipinos buy frozen foods and for
leisure activities. It’s an advantage for new businesses entering the market and creates
awareness to buy the frozen foods. Online shopping has become a trend in the Philippines due
to convenience especially in the present time when the country is in the midst of a pandemic. In
the last 2 years, 80 percent of millennials have shopped online, with 69 percent doing crossing
border buying.
4.6 Psychographic
Filipino consumers behave in a certain manner when it comes to purchasing products in the
market. The top reasons that influence the purchases of Filipino consumers include brand
loyalty, media exposure, and the value of money. Online shopping has also emerged as a new
trend among shoppers. Filipino consumers value brand loyalty, but according to the 2015
Nielsen Global New Product Innovation Survey, Filipinos recently frequently try new products
when shopping for groceries and prefer fresh products. It has become one of the world's
consumers who prefer brands that are developing. In a 2015 survey, 68% of Filipino
respondents said they bought a new product during their last shopping trip. 78% prefer to buy
new products and 77% prefer manufacturers to offer new product options because the brand
name guarantees quality and authenticity. The changing media landscape is also changing the
way consumers receive information about products and services. Television continues to be an
integral part of Filipinos' daily lives, which is why they rely on advertising for product information.
The promotion will also have a significant impact on the product preferences of Filipino
consumers. Respondents to the Nielsen Global Consumer Survey in the Philippines said
commercials increased brand preference because the image they created influenced their
purchasing decisions for these products (78%). Filipinos are often lured by product promos and
affordable prices. 40% of the Filipino respondents in a study conducted by Waggener Edstrom
Communications Ltd. (WECL) said that they are very likely to follow a brand on social media for
the discounts and promotions offered.
References:
5. Product Information
References:
It can fight off Cancer treatment and Slightly Bitter It makes you feel
inflammation Prevention good
It is good for health Contains less Astringent flavor You can lose weight
and also it can fight caffeine
cancer and heart
disease
References:
Some brews provide Disrupts sleep cycle Grassy notes You will look younger
more health and stronger
advantages than
others, there's plenty
of evidence that
regularly drinking tea
can have a lasting
impact on your
wellness.
Front design
References:
Back Design
Back
References:
Rendered actual product sketch Front and back design of Paper box container
References:
Length: 9cm
Width: 6cm
Company Logo
5.1.6 Packaging
5.1.6.1 Primary Packaging
The primary packaging of Fruitle Tea will be in plastic sachets. Each sachets are labeled with
flavors and brand name and is good for single serving. Other than brand name, the ingredients
or contents, net weight, factory address and expiration date are also included and will be found
at the back of the sachet.
References:
Plastic ziplock will be the secondary packaging of Fruitle Tea. Each ziplock contains 12 pieces
of Fruitle Tea sachets varying also on different flavors.
Fruitle Tea tertiary packaging will be a large sized box. Each box contains 30 pieces of Fruitle
Tea plastic ziplock and this type of packaging is good for shipping nationwide or internationally.
5.1.7 Incoterms
References:
Fruitle Tea will export their powder hand wash to any Southeast Asian Country using the Cost
Insurance & Freight (CIF) Incoterms. The fact that CIF is advantageous to both the seller and
the buyer makes it one of the most widely utilized Incoterms in the world. In addition, it is utilized
in every Southeast Asian nation to determine the value of customs. It is a contract between
Fruitle Tea, the seller, and customers from any Southeast Asian nation. In accordance with
these Incoterms, Fruitle Tea will cover all shipping expenses from the Philippine production to
ports in Southeast Asian countries. The remaining costs, such as shipping and transportation
fees, from the port to the destination will then be covered by the foreign buyers (distributors).
After the shipment arrives at Manila port in the Philippines, ownership of the cargo will be
transferred from Fruitle Tea to the buyers. Fruitle Tea will need to arrange an insurance for the
cargo delivery because CIF is very particular about insurance.
5.1.8 Raw Materials
Fruitle Tea
6. Marketing Mix
6.1 Product
Quality Ø Fruitle tea powder has the ability to lower blood pressure, which
may be why it could reduce a person’s risk of dying of a stroke.
Fruits are an excellent source of essential vitamins and
minerals, and they are high in fiber. Fruits are also provide a
wide range of health boosting antioxidants, including
flavonoids Eating a diet high in fruits and vegetables can
reduce a person’s risk of developing heart disease, cancer,
inflammation, and diabetes.
Ø From the raw materials and fresh fruits from the farm to your
homes, we pay special attention to every process that leads to
our customers in order to ensure that they receive the best
quality products.
Table 2.21
6.2 Price
Table 2.22
fruitle Tea Corporation came up with the amount by considering both the product costing and
industry trends in pricing. In comparison, the company offers a more affordable option than its
leading competitors, allowing the consumers to see our product as a better value for their
money, as we also highlight the use of all-organic ingredients, ensuring that quality is not
compromised.
6.3 Place
Pasig City has a rich history and a diverse culture that can be traced back to its precolonial
roots. Over time, it has developed into a thriving hub of commerce and industry, with a
bustling economy that attracts local and foreign investors. Pasig City is known for its modern
lifestyle scene and its many shopping malls, restaurants, and entertainment venues. Pasig City
is a large district with a mix of offices and upscale housing, popular for mall complexes in and
around the Ortigas Center area. Hip eateries serving modern Filipino fare cluster in Kapitolyo
village, and parks like Greenfield District host weekend markets with local food and crafts.
Cultural sites include the Pasig City Museum, exploring local history, and the stone Immaculate
Conception Cathedral.
6.4 Promotion
Digital Marketing
Fruitle Corporation will be creating accounts in different social media platforms to promote its
products as well as connect with existing and potential customers. The top social media
platforms used by Singaporeans are Facebook, Instagram. Through the social media platforms,
Fruitle Tea Corporation will create ads to increase awareness among Pasig City consumers and
create leads to Fruitle Tea Corporation’s website. Call-to-action will be also added in the ads for
potential consumers to take further action. Aside from these social media platforms, Fruitle Tea
Corporation will also launch a website.
References:
7. Projected Sales
Projected Sales
https://zhujiworld.com/ph/2662447-pasig-city/
https://www.statista.com/outlook/cmo/hot-drinks/tea/philippines#revenue
https://productnation.co/ph/27730/best-tea-philippines/
https://www.statista.com/outlook/cmo/food/fruits-nuts/fresh-fruits/philippines
https://www.philatlas.com/luzon/ncr/pasig.html
https://www.statista.com/outlook/cmo/hot-drinks/tea/philippines#:~:text=Revenue%20in%20the
%20Tea%20segment,(CAGR%202023%2D2025).
https://cebudailynews.inquirer.net/233606/common-filipino-shopping-behaviors#
https://opentoexport.com/article/capturing-filipino-consumers/