NATIONAL

UNIVERSITY

Marketing Plan

O’CAKES

Submitted by:

Arsolon, Althea Joy C.

Bunagan, Brent Zion

Corotan Micaiah Mowen B.
Garcia, Zhandra T.
Legaspi, Lance Joshua Q.
Quezon, Casey Nicole
Reyes, Cherwyn Jay P.
Tan, Earl Nicole B.
Wamar, Kleah Mariz C.

MAR 227

Submitted to:
Prof. Helen Bustonera-Forca, MBA, RMP, RFA
Marketing Management

2024
 Table of Contents

Chapter I: Objectives ……….……………………………………………………………… 2

Executive Summary …………………………………………………………………. 2
Mission ………………………………………………………………………………. 2
Vision ………………………………………………………………………………... 2
Chapter II: Industry Analysis ………………………………………………………………. 3
Key Players …………………………………………………………………………. 3
Distribution Channels ……………………………………………………………….. 3
Marketing Channels …………………………………………………………………. 4
SWOT Analysis ……………………………………………………………………... 4

Chapter III: Environmental Analysis ……….…………………………………………….... 5

PESTLE Analysis …………………………………………………………………..... 5
Competitive Analysis ………………………………………………………………... 6
Porter’s Analysis …………………………………………………………………...... 7

Chapter IV: Marketing Analysis ………………………………………………………….... 9

Target Market and Segmentation …………………………………………………..... 9
Market Offerings …………………………………….……………………………... 10
Product Positioning ……………………………………………………………….... 11

Chapter V: The Marketing Program and Strategies ……………………………………….. 11

Product ……………………………………………………………………………... 11
Price ………………………………………………………………………………… 12
Place ………………………………………………………………………………... 12
Promotion …………………………………………………………………………... 12
Total Projected Expenses...…………………………………………………………. 13
References…………………………………………………………………………... 17

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 I. OBJECTIVES

A. EXECUTIVE SUMMARY

Fudge de la Creme aims to evoke nostalgia with a modern twist, captivating

consumers with familiar yet refreshingly new elements. It aspires to capture the hearts of

consumers with its irresistible taste and appeal, while continuously learning and evolving

through ongoing customer feedback. The goal is to create something more than just popular,

something that truly resonates with people, creating lasting connections through shared

memories and evolving to remain relevant over time.

These goals are intertwined, each one strengthening the others to create a virtuous

cycle of growth and success. Ultimately, this approach aims to build a sustainable and

impactful legacy, carving a special place for the brand in the hearts and minds of the

customers.

B. MISSION
To blend nostalgia with innovation, reigniting cherished childhood memories through

modern twists. We aim to captivate taste buds and drive market penetration while prioritizing

customer feedback to continuously iterate and enhance our offerings.

C. VISION

As pioneers of innovation, our vision is to continually craft and introduce cutting-edge

product variations that redefine industry standards. We aspire to not only increase market

share but also expand our geographic reach, establishing a global presence. Through

unwavering commitment, we seek to build enduring relationships with our customers,

creating a brand that resonates with them on a personal and lasting level.

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 II. INDUSTRY ANALYSIS

A. KEY PLAYERS

● Customers are the individuals who purchase our product, motivated by their own

needs and desires.

● Competitors are other businesses that sell the same product as us, playing a vital role

in the market and influencing our marketing strategies.

● Legal advisors ensure contracts are drafted with fairness and compliance.

● The marketing team, essential for any starting business, is responsible for creating and

executing strategies to promote our product and generate sales.

B. DISTRIBUTION CHANNELS

DIRECT CHANNEL:

Figure 1. Distribution Channel

O’Cakes will utilize direct distribution channels, allowing them to manage the

distribution process, save on logistics costs, and eliminate profit sharing with third-party

distributors. The direct channel also fosters stronger relationships with end users, allowing

O’Cakes to gain valuable customer insights, reward loyalty, and build a competitive

advantage through improved customer retention and increased sales. O’Cakes will sell its

pastry products directly to customers at its brick-and-mortar location. Additionally, they will

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maintain a sales force and leverage e-commerce, incurring costs for hiring or training staff

and building or hosting the online platform.

C. MARKETING CHANNELS

Fudge de la Creme encompasses a strategic blend of digital advertising, email

marketing, and influencer marketing to maximize brand visibility and engagement. Through

targeted digital advertising campaigns deployed across various platforms such as social

media and influencer marketing, Fudge de la Creme captures the attention of its target

audience by showcasing its irresistible product offerings and, for example, seasonal

discounts. These meticulously crafted advertisements, featuring the product's rich texture and

decadent flavors, aim to capture the attention of consumers actively searching for indulgent

treats or engaging with related content online. Furthermore, the brand promotes direct

purchase by directing consumers to its website and online retailers.

D. SWOT ANALYSIS
Table 1.
SWOT Analysis

STRENGTHS WEAKNESSES
● Customization Options ● Lack of Brand Recognition
● Social Media Presence ● Limited Production Capacity
● Home-Based Production ● Perishable Product
● Appeal to a Wide Audience ● Calorie-Dense
● Packaging Challenges

OPPORTUNITIES THREATS
● Expansion into Wholesale ● Competition from Established Bakeries
● Partnerships and Dessert Shops

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 ● Social Media Marketing ● Raw Material Fluctuations
● Technology Integration ● Food Safety Incidents
● Seasonal Demand ● Rising Labor Costs
● Changing Consumer Preferences

Fudge de la Creme captivates a broad audience of chocolate enthusiasts with its

unique and customizable options. Social media facilitation of customer connection and

home-based production help maintain low costs. However, some key challenges exist,

including brand recognition, production capacity, preservation, and health concerns.

Addressing these issues through strategic partnerships with cafes, technological innovations

like augmented reality experiences, and seasonal specials has the potential to spur growth and

improve brand recognition. Overcoming competition and adapting to fluctuating consumer

tastes through strategic positioning, cost control, and employee loyalty fosters success,

establishing the fudge cake as a cherished treat for years to come.

III. ENVIRONMENTAL ANALYSIS

A. PESTLE ANALYSIS
Table 2.
PESTLE Analysis

ECONOMIC TECHNOLO ENVIRONM

POLITICAL SOCIAL LEGAL
AL GICAL ENTAL

Growth
Food Safety assumptions Automation: HACCP Plan
Age: 5-60 DTI and BIR
Act (RA of a 6% - 7% Automatic Implementatio
years old Registrations
10611) GDP growth mixer n
rate in 2023

Benchmark Social Media

interest rate at Gender: Both Marketing: Business and
Value Added Energy
6.5% in men and Leverage Sanitary
Tax (VAT) Consumption
December women platforms e.g. Permits
2023 Facebook and

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 TikTok

Food Inflation
eased to 3.3%
Income Level:
in January Digital Compliance
Percentage Lower to Waste
2024. In ordering and with FDA
Tax middle-incom Management
January 2023, payments Regulations
e consumers
it was higher
at 11.2%

Location:
Ecological
Front-of-hous E-commerce
Solid Waste
e area, city platforms: Barangay Packaging
Management
center of Facebook and Clearance Materials
Act of 2000
populated TikTok
(RA 9003)
areas

Health Fire Safety

Sustainable
conscious Inspection
Sourcing
consumers Certificate

Cultural Transportation
preferences and Logistics

A fudge cake business in the Philippines has potential due to the Filipinos'

deep-seated love for sweet treats and their strong gifting culture, coupled with the vast reach

of the online market. Therefore, strategically navigating opportunities and challenges is

crucial, such as ensuring ethical sourcing, adapting to changing preferences, navigating

economic fluctuations, and addressing sustainability concerns. While the plan acknowledges

the potential for success, it stresses the importance of responsible growth in a dynamic

market.

B. COMPETITIVE ANALYSIS

Table 3.
Competitive Analysis

DIRECT COMPETITORS INDIRECT COMPETITORS

Fabb Cakes (₱250) Red Ribbon (₱ 220)

Irene’s Home-baked Goodies (₱1,500) Panko (₱350)

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 Mr.Dream Boy Cakes and Pastry Shop Goldilocks Fairview Regalado Ave. (₱280)
(₱525)

Donna’s Oven (₱565) Cake 2 Go (₱550)

O'Cakes' Fudge de la Creme occupies a niche within a moderately competitive

market, according to the competitor analysis. While direct competitors like Fabb Cakes and

Donna's Oven offer similar products, their price range (₱250-₱565) positions O'Cakes at a

strategic advantage with its competitive price point of ₱16.45. However, price isn't the sole

battleground.

Indirect competitors like Red Ribbon (₱220) present substitute products at various

price points (₱220-₱350), potentially influencing budget-conscious buyers. This underscores

price as a significant factor for consumers.

C. PORTER’S ANALYSIS

Table 4.
Porter’s Analysis

RIVALRY AMONG EXISTING COMPETITORS

Number of Competitors High

Industry Growth Low

Quality Differences Low

Brand Loyalty Low

Industry Concentration Low

THREAT OF NEW ENTRANTS

Barriers to Entry High

Economies of Scale Low

Brand Loyalty High

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 Capital Requirements Low

Cumulative Experience High

Government Policies Low

Access to Distribution Channels Low

Switching Cost Low

BARGAINING POWER OF SUPPLIERS

Number and Size of Suppliers High

Uniqueness of Each Supplier’s Product Low

Focal Ability of Companies to Substitute High

BARGAINING POWER OF BUYERS

Number of Customers High

Size of Each Customer Order Low

Differences Between Competitors Low

Price Sensitivity High

Buyer’s Ability to Substitute High

Buyer’s Information Availability High

Switching Costs High

Trends High

Income Low

THREAT OF SUBSTITUTE PRODUCTS

Number of Substitute Products Available High

Buyer Prosperity to Substitute High

Relative Price Performance of Substitute High

Perceived Level of Product Differentiation Low

Switching Costs High

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 O'Cakes' Fudge de la Creme seems to be operating in a moderately competitive

industry based on Porter's Five Forces analysis. New entrants face challenges due to high

barriers to entry, but supplier power is strong due to the abundance of suppliers and the

somewhat unique nature of their offerings. Buyer power is moderate as there are many buyers

with low order sizes and the ability to switch between competitors. Substitutes pose a

moderate threat as well, with various options available and buyers willing to switch based on

price. The most significant challenge lies in the intense competition among existing rivals

who seem to offer similar products.

To strengthen its position within this moderately competitive landscape, O'Cakes can

focus on differentiating Fudge de la Creme. This could involve highlighting unique aspects of

the product or service compared to competitors. Building customer loyalty programs can also

be beneficial. Additionally, exploring cost reduction strategies could be an option to improve

competitiveness. By implementing these steps, O'Cakes can potentially increase profitability

and capture a larger market share within the industry.

IV. MARKETING ANALYSIS

A. TARGET MARKET AND SEGMENTATION

The target market for Fudge de la Creme encompasses a broad spectrum of people,

including dessert enthusiasts seeking new flavors, busy individuals seeking convenient

snacks, and health-conscious customers interested in balanced and healthy sweets.

Additionally, Fudge de la Creme targets impulsive shoppers in high-traffic areas seeking a

quick treat. Furthermore, gift-givers are another crucial market segment. Fudge de la Creme's

quality, ease of gifting, and customizability make it a popular choice for celebrations and

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gatherings. By tailoring its products and marketing strategies to cater to these diverse wants

and tastes, Fudge de la Creme can effectively navigate a broad and diverse market.

Table 5.
Market Segmentation

GEOGRAPHIC DEMOGRAPHIC PSYCHOGRAPHIC BEHAVIORAL

Region: NCR, Age: People of all Social Class: Lower Anticipated

Metro Manila ages. Class to Upper Class Advantages:

● Quezon City Gender: People of Lifestyle: Food Indulgence -

● Caloocan all genders. Enthusiasts, consumers sought
City Health-Conscious satisfaction and
● Pasay City Occupation: comfort.
Professionals, Celebration -
Density: Urban employees, celebration and
students. joyous gatherings.
Social Connection -
Life-Cycle Stage: foster bonding and
Individuals living memorable
independently, gatherings.
Married Couple, Taste and Flavor -
Minors. craves for diverse
and delicious
flavors.
Visual Appeal -
entice with visually
stunning designs.
Tradition - evokes
tradition and
nostalgia

B. MARKET OFFERINGS
Fudge de la Creme offers a variety of styles to suit any occasion and taste. while

specialty cakes boast unique ingredients or themes to celebrate specific occasions. For a truly

personalized touch, custom cakes are designed according to your preferences, and gourmet

selections are crafted with premium ingredients and luxurious finishes. Additionally, we offer

vegan and gluten-free options to ensure everyone can enjoy our delicious cakes.

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 C. PRODUCT POSITIONING
Fudge de la Creme caters to a variety of customer preferences by offering different

styles of fudge cakes. For the indulgent, we offer premium cakes made with the finest

ingredients. Value-conscious customers can enjoy our affordable, luxurious options. Busy

individuals can grab convenient, ready-to-eat treats, while health-conscious consumers can

choose from options made with organic, natural, or low-sugar ingredients. Additionally, we

offer customization to cater to individual preferences and dietary needs.

V. THE MARKETING PROGRAM AND STRATEGIES

Our marketing strategy focuses on digital engagement, utilizing social media and email

marketing to promote our new Fudge De La Creme offerings. This involves targeted social

media campaigns showcasing our expanded product range. Execution will commence

immediately after launch to capitalize on initial interest, with our social media manager

leading the campaign alongside our internal team. The budget, aimed at affordability,

allocates funds primarily to social media advertising and email marketing tools, estimated at

PHP 25,000 to PHP 40,000 monthly, with adjustments based on performance analysis.

A. PRODUCT
Fudge de la Creme stands out as a decadent and delightful treat. Its rich, creamy fudge

base infused with flavors like chocolate, caramel, mocha, and pandan offers a unique and

indulgent experience. The product is available in various sizes and forms, catering to

individual preferences and occasions. Additionally, the fudge is often artisanal and made with

high-quality ingredients, appealing to consumers seeking premium, locally-sourced treats.

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 B. PRICE
Fudge de la Creme could leverage a price penetration strategy to gain market share.

This strategy involves initially setting a lower introductory price to attract new customers and

establish brand awareness. Once a customer base is built, the price could be gradually

increased to a more profitable level, while still maintaining its competitive edge within the

premium treat category. This approach allows Fudge de la Creme to capture a larger market

share early on, and as brand loyalty develops, they can adjust pricing to reflect production

costs and desired profit margins.

C. PLACE
O'Cakes, the company, aims to establish a unique, home-based, budget-friendly pastry

business with online and in-person options. They accept online pre-orders and choose

delivery locations within Luzon based on customer location and shipping costs. The company

focuses on offering high-quality pastries with unique flavors at affordable prices, targeting

customers who appreciate value. Establishing a physical store in a residential area near

schools is a potential future endeavor. Exploring future collaborations with other pastry and

coffee shops to expand reach and offerings is also a possibility.

D. PROMOTION
The company will launch a pre-launch campaign on social media to create buzz

before the official product launch. O'Cakes will offer exclusive pre-order promotions to

generate anticipation and encourage early purchases. Additionally, they will conduct polls or

ask questions on social media to gather feedback and improve the product before launch. To

attract customers and gain market share, the company implements penetration pricing and

plans to establish loyalty programs on social media platforms. The marketing strategy

involves utilizing various tactics, including special offers and collaborations with other

brands like Fudge Bar. Demonstrating the baking process through traditional advertising

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channels may also help attract price-conscious consumers who might be more receptive to

special offers.

E. TOTAL PROJECTED EXPENSES

(MATERIALS)
Table 6.1
Materials

Ingredients Cost Per Unit Quantity Per Two Total Cost Per
Two

Fudgee bar ₱ 77 (10 pcs) / 8 pcs 4 ₱ 32

Milo powder ₱ 303 (1kilo) ½ cup ₱ 30

Condensed milk ₱ 45 / 374 grams ₱ 15

½ cup

All-purpose cream ₱ 70 ₱ 35
½ cup

Dark Chocolate ₱ 150 ¼ cup ₱ 37.50

Milk ₱ 191 (2 liters) ½ cup ₱ 10

Total Cost Per Two ₱ 7 / per packaging unit - 159.5 + 7 = ₱ 166.50

The cost breakdown includes the following essential ingredients: Fudgee bars, Milo

powder, condensed milk, all-purpose cream, dark chocolate, and milk. The calculation

considers the price per unit, with the total ingredient cost reaching ₱ 159.5. Packaging adds ₱

7 per unit, bringing the total material cost to ₱ 166.50 per unit.

(EQUIPMENT)

Table 6.2
Equipment

Item Estimated cost Useful Life (years) Yearly Depreciation

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 Stand Mixer ₱ 10,000 5 ₱ 1,667

Refrigerator ₱ 13,000 10 ₱ 1,250

The company's production requires a stand mixer and a refrigerator, with estimated costs

of ₱ 10,000 and ₱ 13,000, respectively. The stand mixer has a useful life of 5 years, with a

yearly depreciation of ₱ 1,667, while the refrigerator has a 10-year useful life, with a yearly

depreciation of ₱ 1,250.

(LABOR)

Table 6.3
Labor

Description Rate Per Hour Hours Per Month Monthly Cost

Food Preparation ₱ 55 200 ₱ 11,000

Other Expenses Estimated Monthly Cost

Utilities (Electricity) ₱ 1,000

Utilities (Water) ₱ 500

Shipping Per Batch ₱ 500

Food preparation labor costs are ₱55 per hour, leading to a monthly expense of

₱11,000 for the planned 200 hours of operation. This ensures smooth and efficient

production.

Additional monthly costs include ₱ 1,000 for electricity and ₱ 500 for water, and

shipping costs of ₱500 per batch, ensuring efficient delivery of our products to various

locations.

COST PER UNIT:

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 Each unit of our dessert product incurs a material cost of ₱ 166.50. This figure is pivotal

for pricing strategies and profitability analysis.

SUGGESTED RETAIL PRICE:

The determination of an appropriate suggested retail price (SRP) is critical for the

successful market entry of new food products. Pricing strategies must consider various costs,

including materials, equipment depreciation, labor, and marketing expenses. This study aims

to calculate the SRP for a dessert product, ensuring it is competitive within the market while

achieving desired profitability.

Profit = Total Cost Per Unit × Profit Margin Percentage

SRP = Total Cost Per Unit + Profit

Given that the total cost per unit is ₱166.50, and we want a 30% profit margin:

Profit = ₱166.50 × 0.30 = ₱49.95

SRP = ₱ 166.50 + ₱ 49.95 = ₱216.45

So, with a 30% profit margin, the suggested retail price (SRP) for our Fudge De La Creme

dessert product would be approximately ₱216.45 per unit. The SRP of ₱216.45 ensures the

dessert product is priced competitively within the market, allowing for a healthy profit

margin that can sustain the business's operational and growth needs. This pricing strategy

considers the direct costs of production and the indirect costs associated with marketing and

equipment depreciation, providing a comprehensive view of the financial implications of

product pricing.

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MARKETING BUDGET:
Table 6.4
Marketing Budget

Social Media Ads Email Marketing

₱ 10,000/month (Facebook and Tiktok) ₱ 5,000/month

To reach our target market effectively, we allocate ₱ 10,000 monthly for social media

advertisements across Facebook and TikTok, complemented by a ₱ 5,000 investment in email

marketing campaigns. This comprehensive approach ensures our dessert product garners

significant visibility and customer engagement.

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