MARKETING PLAN OF ACKSS ACCESSORIES

VALLES, RICHELLE D.

MADAYAG, JOHN CARLO O.

RECAIDO, ARIES

COLLANTES, RITCHEN

CATALLA, JAMAICA P.

DIALOLA, JUNEL

LIWAG, RONYL ADRIAN E.

CRUZ, ARMIELA MARIE H.

I. Target Market

The target market of Ackss Accessories includes male and female children,

youth and adults in the age range of 10 years old to 24 years old who are living in

Pagbilao, Quezon. This market belongs to lower class having a combined family income

of P11,914.50 and below and middle class whose combined family income is

P11,915.00 to P49,526.00. Ackss Accessories will be launched in the market to sell

unique kinds of accessories that they are fit to. This is because people today in this

generation become more fashionable specially on what is trend.

II. Market Segment Size and Trends

The total population size of male and female children, youth, and adults in the

age range of 10 years to 24 years old who belong to lower and middle classes is 22,364

. Almost 48% of them are employed having an income starting from Php 4,000.00 - Php

20,000.00 per month. The remaining 52% is unemployed because they are mostly

youth who are still studying and some are married that are busy with their family.

The market size is determined by considering the population data of the target

market and market acceptability of the product. Table 1 below presents the market

acceptability level of Ackss Accessories.

Table 1

Market Acceptability Level of Ackss Accessories

Frequency (f) %
Will buy 316 79%
Will not buy 84 21%
Total 400 100%
 Based on the results of the survey, 316 or 79% of this market is willing to avail

the product. The other 21% said that they will not buy the product. Hence, the total

market size is only 17,668 customers including those who live below poverty line, which

is derived from multiplying the population size of the target of 22,364 with the market

acceptability level of 79%.

The reasons why people in this generation is much more attached to products

that is customized is shared by Minjung Park and Jungmin Yoo(2018) as stated that

today's Internet technology allows retailers to collect and exchange important

information more rapidly and efficiently than ever before, thus reducing lead time, as

well as facilitating more design variations and greater flexibility during production (Wall

Street Journal, 2015). As customization can become a tactical tool that provides extra

benefits to consumers, customization has been adopted in various industries, including

computers (e.g., Dell), apparel (e.g., Brooks Brothers), home furnishing (e.g., Pottery

Barn), shoes (e.g., Nike), handbags (e.g., Longchamp), and cars (e.g., Toyota). Luxury

brands (e.g., Louis Vuitton and Burberry) that were slow in launching e-commerce now

offer customization programs through online to provide personalized design and

connect with their customers (Quartz, 2016). However, even with these advantages,

some programs have been successful (e.g., those operated by Lands' End and Nike),

while others have faced serious difficulties (e.g., Levi Strauss) (Franke and Piller, 2004).

Reasons for such disparity suggested by scholars include consumers' extensive

participation, their preference for default option, and their inability to recognize the

existence of a mass customization program (Franke et al., 2009; Simonson, 2005).

Empirical research on the effect of customization on consumer responses has also

shown somewhat inconsistent results. For example, in Franke and Schreier (2008)'s

study, consumers exhibited higher willingness to pay for a customized product than for

a standard product. However, although consumers in Schoder et al. (2006)'s study

preferred customized newspapers, their willingness to pay for a customized version was

not higher than that for a regular newspaper. To ensure the long-term success of a

mass customization offering, generating increased benefits for consumers can be a

competitive advantage (Franke et al., 2009), and there is a compelling need for a

deeper analysis of consumer benefit

On the other hand, Robin Nichol(2018) in his study about people from 12 to 24

years old acceptability for customized and personalized products identified in 1987 in

the book, Future Perfect by Stan Davis, ‘mass customization’ has come to mean, “the

process of delivering wide-market goods and services that are modified to satisfy a

specific customer need.” Distinct from mass production – mass customization’s

homogenous, less evolved precursor – mass customization allows consumers to

assemble their own, unique product according to their particular tastes and needs.

Think of picking out colors, patterns, and designs to craft your very own Nike shoe or

Burberry coat. It’s still branded Nike or Burberry – but it’s also distinctly you. Mass

customization is a practice driven by the consumer that allows them to become ‘co-

producers’ with the brand of their own uniquely personal product and is a process that

must be reproduced at scale by the company.

 These trends in the target market offer favourable impact on producing and

selling Ackss Accessory. This is an opportunity for the proponents to establish the

business as its market provides potential for the product to be viable as an offering.

III. Projected Demand

Demand refers to the quantity of the goods that the buyers will take from the

market given the price of the product. The demand for Ackss Accesory is determined by

considering the market size and average availment per year. Table 2 provides the data

on average availment.

Table 2

Frequency of Availment of Ackss Accessory

Frequency (f) Multiplier Availment

Every day 98 365 35,770
Once a week 256 52 13,312
Once a month 46 12 552
Total 400 49,634

Computation of Average Availment Per Year:

49,634
Average Availment/Year = ------------------- = 124.085 or 124 /year/customer
400

As shown in Table 2 and supporting computation of average availment, 98 of the

respondents will buy the product everyday. 256 of them will buy Ackss Accessories

once a week. The remaining 46 will buy the offering once a month. With these figures

on frequency of buying Ackss accesorry, the number of pieces that will be availed by

the target customers is 49,634 in a year. By dividing the yearly availment of 49,634 by
the number of respondent-customers of 400, the average availment per year is 124

pieces per buyer.

The demand for Ackss Accessory, then, can be determined as shown in Table 3.

Table 3

Computation of Projected Annual Demand

Population of Individual (5 years and above in lower and 22,364

middle income groups)
Less: Poverty Incidence (30%) 10,727
Market Segment Size 11,637
Multiply by Market Acceptability (79%) 9,193
Multiply by Number of Availment 124
Total Demand 1,139,932

The total population of individual is 22,634 and these are male and female 10

years old to 24 years old who belong to lower and middle income groups in Pagbilao,

Quezon. The poverty incidence of Pagbilao is about 30% . This poverty incidence rate

of 10,727 will be subtracted from the total population of 22,354 because these

individuals have no buying power and are not potential customers. This results to

market segment size of 11,637 individuals. In order to get the projected annual demand

of Ackss Accessory, the market segment size will be multiplied to the market

acceptability level and the average availment per year. The total annual demand of

Ackss Accessory is 1,139,932 pieces.

IV. Estimated Market Share

The estimated market share is 10% of the total annual demand of 1,139,932 is

113,993 pieces of Ackss Accessory . The company will only assume that market share
which it will intend to initially serve in the first year and will gradually increase by 5%

every year.

V. Competitive Analysis

Each business has their own uniqueness because it has its distinct features. To

make the business competitive, it has to make its product more unique compared to

their rivals . Establishing more advantages from competitors will help our company to

rise up faster. There is always competition both in small and large market. Even small

competition will affect the whole company. This is the challenge that all businesses

have to face.

Some of the competing products of Ackss Accessory are those accessories that

are made of luxury materials and ready-made accesories which can be found on online

stores, stalls, giftshops, and malls.

DIY stall vendors are are taken as direct competitors of Ackss Accessory. DIY

stall vendors are much more reachable because of thier availability and convinience as

it sell personalized products on the customers preference . DIY stall vendors are better

known compared to Ackss Accessory which is at its point of initial launch in the market.

But these vendors are just selling personalized products on few areas or they are not

particular in place. DIY vendors occasionally stay in a particular place which makes their

costumers unsatisfied and unhappy when they want to avail the product for the second

time. Also, they offer products which is somehow pricey.

 Taking a look at this information, Ackss Accessory has its competitive

advantages in terms of having the satisfaction level, convinience and availability of

many materials for the customer.

IX. Marketing Strategy

A. Product Strategy

Ackss accessory is the proposed product. To make it more unique, we will offer

some peomos that can make our custumers happy and satisfied with our product . The

product is personalized or customized which means the overall desiagn will depend on

the customers preference which can let customers chose what they really want.

Figure 1. The Product “Ackss Accessory”

In order to capture the attention of the potential buyer, the proponents create a

brand name and logo for the product. Its logo shows a very simple apperance but has a

great design. The logo contains the tagline of the business as well as the brand name. It

has the picture of bracelet. The brand name stands for the word accessory. We made it

uncorrect on the spelling to make it different and unique. Ackss Accessory will surely be
recognized for its uniqueness we only have. Its uniqueness will get the attention of the

customers and it is expected that they will give positive feedbacks because they're the

one to choose their preffered desiagn for their accessory..

Figure 2. The Product’s Brand and Logo

Since the proponents will deliver the accessory to the final consumer, the

proponents will contain the Accessory in a cotton inside the box that can be recycled for

another use.. It will be less expensive if the proponents will use this kind of recyclable

packaging as it lessens the cost of the packaging materials. The proponents come up

with this idea because most of the people just throw the container after they got the

product inside. With these, the proponents think of something that will be more practical

where the packaging which is the box can be recycled for another use.
 Figure 3. Product Packaging

C. Place (Distribution) Strategy

Distribution channel is an essential part on how the proponents will deliver their

product to their final customers. It helps them to identify the method to use to reach the

consumers.

In order to distribute the Ackss Accessory, the proponents will use the direct

marketing channel wherein the producer is also the distributor. There are no

intermediaries involved in model of distribution strategy. The producer is the one that

brings their product to the final customers. The proponents use this as their channel so

they can directly interact with their potential customers. The proponents will sell the

Ackss Accessory in door to door basis. Also using the direct marketing channel, they do

not need to pay the middlemen so the profit will go only to them. Although this channel

will be hard to adopt, especially when disposing the product to the intended market, the

proponents are ready to exert extra effort in order to attain the desired goals.

PRODUCER CONSUMER

Figure 4. The Zero Channel Model of Distribution

D. Promotional Strategy

Good promotion can build brand awareness of the potential customers. In order

to promote Ackss Accessory, the proponents will prsent photos of the product and the

promos available for initial offering and word of mouth communication strategy regularly.

With these, the proponents will have to create a product that will be remarkable and will

leave positive impression to the customers. If they see the distinct uniquness of Ackss

Accessory, consumers will promote the products through their positive feedbacks to

other customers. When other customers heard it, they would not hesitate to buy it.

Hence, the number of customers will grow, the brand will be known and consequently

the business will succeed. In addition, the business can connect directly with the

customers to know their feedbacks about the product. It will help them to immediately

take an action if there is a problem.

ANALYSIS OF SURVEY DATA

Demographic Profile

Figure 1: Age of people in Pagbilao, Quezon

10-14= 32 %

15-19= 46.25 %

20-24= 21 75%
 Sex

Figure 2: Percentage of Sexes in Pagbilao, Quezon

Status

Figure 3: Percentage of

Statuses in Pagbilao,

Quezon
Job

Figure 4: Percentage of Employed and Unemployed in Pagbilao, Quezon

 4. Kung ikaw ay papapiliin, ano ang

gusto mo?
Survey Questions:

Ready made(41.25%)
1. Gumagamit/bumibili ka ba ng

accessories? Personalize/Customized(58.75%)

Yes(79%) Gaano ka kadalas bumili ng

accessory?
No(21%)

Araw-araw(24.5%)

Lingo-linggo(64%)
2. Kung ikaw ay gumagamit/bumibili,

anu-anong uri Ang mga Ito? Buwan-buwan(11.5%)

Bracelet(65.25%)

Anklet(16.75%) 5. Para sa iyo ano ang klase ng

materyales ang gusto mong gamitin

Necklace(18%)
sa paggawa ng accessories?

Wooden beads(34.5%)
3. Naglalaan ka ba ng pera para sa
Plastic beads (62.25%)
pagbili ng accessories?

Others(3.25%)
Yes(73.75%)

6. Anong kulay ang nais mong

No(26.25%)
mayroon ang iyong accessories?
Single color (26%) Yellow, Green, Black (2%)

Red (4%) Violet,White, Blue (1%)

Orange (2%) Others: (1%)

Yellow (3.25%) Multi color (11%)

Green (2%) Green, orange, yellow, white(3.25%)

Blue (4%) Black, red, green, Violet (2.75%)

Violet (2.75%) Yellow, Violet, green, red (2%)

Black (5%) Red, blue, yellow, white (2%)

White (3%) Others (1%)

Dual color (50%) 7. Anong disenyo ang gusto mo para

sa iyong accessories?
Black-white (20%)

Letters (24.75%)
Red-orange (10%)

Beads (45.75%)
Yellow-green (9.30%)

Both (29.5%)
Blue-violet (10.65%)

8. Ano ang dahilan ng pagbili mo ng

Triple color (13%)
accessory?
Black, white, red (5.25%)
Fashion(27.5 %)
Green, Red, Black (3.75%)
Gusto ko lang(17.25%)
Wala lang(25.75%) 20 above(12%)

Pampaganda/pampagwapo(13.75) 10. Para sa makalidad na produkto,

handa ka bang maglaan ng mas

Para sa sarili(5%)
mataas na halaga kaysa sa normal na
Maganda(5.75%)
halaga na iyong inilalaan para sa

Panregalo(5%) pagbili nito?

9. Magkano ang nilalaan mo para sa Yes( 82%)

pagbili mo ng accessory?
No( 18%)

Bracelet:
11. Ano sa palagay mo ang mas

10(19.75%) mahal?

15(18.5%) Personalized(54%)

20 above(21.5%) Readymade(46%)

Anklet: 12. Alin sa dalawa ang bibilhin mo?

10(8%) Personalized( 65.75%)

15(4.5%) Readymade( 34.25%)

20 above(8.25%) 13. Tatangkilikin mo ba ang

produktong ito sa pagkakaroon ng

Necklace:
mga promo?
10(4.5%)
Yes(80.75%)
15(3%)
No(19.25%) Lazada(5.25%)

14. Masisiyahan ka ba sa aming Shoppee(3.75%)

produkto sa pagkakaroon ng ibat

16. Saan mo gustong bilhin ang
ibang promo tulad ng:
accessory?

Barkada promo(56%)
Door to door( 53 %)

Couple promo(25%)
Online(22.5%):

Referral promo(19%)
Facebook(12.5%)

15. Sa anong uri ng media mo gusto

Lazada(6.25%)
malaman ang aming produkto?
Shoppee(3.75%)
Print media:
Outlet(24.75%):
Fliers(12%)
Giftshop(12.25%)
Brochure(11%)
Mall(12.5%)
Newspaper(4.5%)

Broadcast media:

Radio(3%)

Television(16.5%)

Social media:

Facebook page(36.75%)