Institute of Accounts, Business, and Finance

Far Eastern University

Manila

A PROPOSED MARKETING PLAN FOR

In partial fulfilment of the course requirements in MKT7 –

Marketing Management

Abigail Pablo

Hector Armada

Benjamin Roldan

Kenneth Simpao

Leo-Gibbs Tapiru

Bryan Villalon

February 2011

Institute of Accounts, Business, and Finance

Far Eastern University

Manila

SPONGE BOMB Dirt and Stain Remover

MARKETING PLAN

EVALUATOR’S RATING SHEET

This is to certify that the proposed Marketing Plan

for Gana Cleaners Philippines, Inc.

for Sponge Bomb Dirt and Stain Remover has been evaluated by the

Panel of Evaluators using the set criteria

on February 28, 2011.

This Marketing Plan merited a

rating of _______% with a grade equivalent of _______.

Panel of Evaluators

_____________________________

_____________________________

_____________________________

Acknowledgement

With love and faithful wishes

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY

II. CURRENT MARKETING SITUATION

A. Macro-environment Analysis

B. Market Situation

C. Competitive Situation

1. Porter’s Framework

2. Competitors’ Profile Matrix

III. OPPORTUNITY ANALYSIS

Company Background

A. SWOT Analysis

IV. OBJECTIVES

A. Marketing Objectives

B. Financial Objectives

V. MARKETING STRATEGY

A. Target Market

B. Positioning Statement

C. Product Strategy

D. Price Strategy

E. Place Strategy

F. Promotion Strategy

VI. ACTION PROGRAMS

VII. FINANCIAL PROJECTION

A. Sales Forecast

B. Projected Income Statement

VIII. IMPLEMENTATION AND CONTROL

EXECUTIVE SUMMARY

Gana Cleaner Co., Ltd. is preparing to launch one of its newest addition to its

roster of innovative products - Sponge Bomb™ Dirt and Stain Remover in a mature

market. We can compete with both surface cleaners and specialty cleaners because our

product offers a unique combination of advanced features and functionality at a value-

added price. We are targeting specific segments in the consumer and business markets,

taking advantage of the growing interest and need for a cleaning aid that is not only

effective and affordable but also versatile enough to be used on a variety of surfaces,

safe (milder formulation, safe on skin, low toxicity level), environment friendly, and most

of all, makes cleaning and removing surface stains easy.

II.   CURRENT MARKETING SITUATION

A.       Macro-Environment Analysis

POLITICAL

There are many political groups who are advocates of preserving our natural

environment and magic foam is beneficial for this matter. Political groups support more

environmental friendly products such as magic foam because it only needs water to

remove stains and no other chemicals are needed. Furthermore, magic foam is reusable

up to 10 times. For example, a housewife cleans once per week. She can use one magic

foam for two months which is very cost effective.

Conversely, political groups might contest the disposal of the product. Since

magic foam is foam and it cannot be dump directly to landfills because it has non-

biodegradable materials, the only thing to do is to recycle. A disposal instruction can be

attached in the product so that the product-users will know how to properly dispose the

product; and that is to recycle it. Certain malls in the metro collect recyclable materials.

In this manner, even the disposal is environment friendly.

ECONOMIC

The growth in cleaning products has maintained a steadily upward trend

throughout the recession, and most marketers have faced the fact that this is no passing

fad. Growing consumer awareness for natural products, coupled with a growing supply

of natural raw ingredients, helped this market segment expand by nearly 12% through

even the most difficult economic crunch.

Even beyond the actual products, consumers have also grown increasingly

aware of and concerned about the environmental and sustainability practices of their

favourite brands. Reducing waste, packaging, and energy consumption is on everyone’s

minds, forcing companies to evolve their operations to meet consumer demand. While

today’s consumers are concerned about value, they also seek products and brands from

companies whose values they can identify with. This movement has shaped the trend

toward value packaging, concentrated and combination products, as well as

reformulations—such as the eradication of phosphates from dishwasher detergent.

TECHNOLOGICAL

The innovation of stain removers from one chemical to those complicated

chemical detergents has been gaining attention for the past centuries. However, these

innovations are detrimental to humans. The revolutionary stain remover which only

needs water is the most environmental friendly innovation one has ever seen. This

innovative product is safe for the skin, eyes, nose and hands for it does not contain any

noxious component.

SOCIO-CULTURAL

Traditionally, women have primarily been the employees of their own home. For

centuries, it was the men who worked jobs to make money and the women who

remained at home to raise the children and fulfill the household. Overtime, it is clear that

women's roles have changed. This had caused the trend for products that are easy to

use and very convenient in order for other household members to perform task just like

the way it should be.

NATURAL

Water is everywhere. Nowadays, water is very accessible to human beings. The

one-of-a-kind feature of magic foam is it only needs water to remove stains, thus,

removing stain is quick and easy. The trend for this product is in demand because it

protects the environment in ways that it protects water. Unlike detergents when thrown

away and goes downstream it will make the water very basic that will create algal

blooms because of phosphate contents. Algal blooms consume all dissolved oxygen in

water thus decreasing the life span of water life

B.       Market Situation

Size and Growth

The household cleaners market can be divided into two categories: surface cleaners and

specialty cleaners. The surface cleaners category comprises six product segments: all-

purpose cleaners/disinfectants, non-abrasive tub/tile cleaners, scouring pads/sponges,

glass cleaners/ammonia, abrasive tub/tile cleaners, and floor cleaners/waxes. The

specialty cleaners category also covers six product segments: rug/upholstery cleaners,

toilet bowl cleaners, drain openers, spray disinfectants, oven cleaners, and metal

polishes.

Promotions were widespread in surface care in 2009 as manufacturers tried to stimulate

demand during the economic slowdown. As consumers looked for better value for their

money, brands such as Kiwi Kleen, Lysol and Zim took advantage by offering additional

volume while maintaining prices. Other brands offered in-store price discounts through

chained retailers to persuade people to purchase their products. 

A recent survey by Taylor Nelson Sofres (TNS) Superpanel (a leading market

researcher) on sales of household cleaning products in the world suggests that the

sector has expanded by 10 percent since August 2009. (www.tnsglobal.com)

The market bounced back from a slowdown and grew an estimated 10% in 2009, to $7.1

billion. Packaged Facts estimates the market for household cleaning products continued

to grow, but at a slower pace to $7.3 billion in 20010.

Advances in market value will continue to result from new products that convince

consumers of the need to clean differently or that accomplish cleaning chores easier or

faster. Wipes, fresheners and spot removers will be among the fastest growing products.

TNS found that growth has largely been driven by new product

developments and innovations in the market, with new products such as single-use,

multi purpose cleaning wipes having a significant impact.

Customer Needs, Perception and Buying-behavior trends

Two-thirds of consumers globally buy cleaning products on the basis of value-for-

money either 'most' or 'all the time'.

Environmentalism and the move toward sustainability is becoming a meaningful

driver of consumer behavior in household care, but is secondary to most

purchase influencers

Irrespective of whether consumers like cleaning their houses, it is something that

is generally deemed to be highly important.

The most significant growth in household cleaning products is occurring in the

emerging markets.

Product launch trend data offer some insight about the direction of household cleaning

products. General purpose cleaners generally account for the highest share of

consumers' household cleaning spend. Air fresheners are well placed to capitalize on

the powerful influence of scent on consumers' emotional wellbeing and the fact that

people are gravitating towards their homes amid the economic downturn. Bleach spend

in many markets is falling amid concerns about formulation and the growing efficacy of

general purpose cleaners.

Implications: Emerging markets represent the 'path to growth' in household care.

A preoccupation with health and wellbeing also exerts significant influence on

household cleaning attitudes, motivations and preferences.

Consumers explicitly recognize the link between good hygiene and wellbeing via a 'feel-

good factor' that is obtained from doing the cleaning and/or the results obtained.

Consumers are less able to relate to the idea that the act of household cleaning itself is

therapeutic. Most consumers are aware of and concerned about the negative health

effects of poor home hygiene. Fears over ingredient harshness and safety in household

care products are influencing consumer choices, with the halo surrounding natural

formulations becoming more apparent. Sensory benefits can also boost the wellbeing

factor of household care products.

Implications: The industry must strive towards better associating household cleaning

products with wellness.

Value for money considerations heavily influence household product choice and

the generally favorable perception of private label branded cleaning products.

Value-consciousness is a highly pervasive influence of many household care product

choices. Private label household cleaning products have increasing credibility with

consumers, but the habitual buying of preferred brands is still relatively commonplace.

Word-of-mouth recommendations and product samples are also perceived to exert some

influence on product choice.

Implications: Be wary of putting a disproportionate focus on price in responding to

consumers' value-consciousness.

Convenience and efficacy heavily influence household cleaning choices due to

both an inherent dislike of cleaning and perceived time scarcity.

The majority of consumers both dislike household chores and feel constrained by time

scarcity. Efficacy and multi-purpose benefits are deemed influential to consumers, but

less so than other benefits. Minimizing time spent doing housework is important to

consumers, but is not fully reflected in the perceived influence of time-saving product

features.

Consumers attach more importance to ease of use than ease of storage, but both are

highly influential attributes shaping household care preferences.

Implications: Consumers are looking for ways to minimize time and effort spent on doing

their housework, and household care brands must outperform rivals in this critical area.

Ethicality and sustainability is a theme that continues to gain momentum in

household care product choices.

A notable segment of consumers are deliberately avoiding companies and brands with a

poor environmental reputation and are also paying attention to sustainable packaging

issues.

Ethical and environmental consumerism drives the demand for more 'virtuous

formulation' and 'virtuous production.

Implications: Environmentalism and the move toward sustainability is becoming a

meaningful driver of consumer behavior in household care, but is secondary to most

purchase influencers.

C. Product Description

Features Benefits Advantages

Soft, flexible cleaning

pad that requires only a

touch of water

Melamine foam stain

remover

Made on innovative white

polymeric foam with

microporous open cell

9 cm x 6 cm x 4 cm

Lightweight, compact,

portable

Removes otherwise

“uncleanable”,

permanent, or hard-to-

clean external markings

from surfaces

Makes cleaning and

removing hard to

remove surface stains

simple and easy

Increased productivity.

Saves time and effort

since stains can be

removed without the

need for prolonged

scrubbing

Safe for indirect food

contacts

Only needs water to

effectively clean most

stains – no chemical

cleaners or soaps

required

Portable and easy-to-

use

Safe compared to

chemical cleaners

whose overall toxicity

can reach very high

levels

Does not pose health

risks particularly to

children

Saves money since it

can be used on a variety

of surfaces without the

need for additional

chemical cleaners

Does not cause irritation

to the eyes, skin, nose,

and skin.

Helps protect the

environment by keeping

toxicity and pollution

levels under control

D.       Competitive Situation

Porter’s Framework

Competitor Analysis

OPPORTUNITY ANALYSIS

A. Company Background

Gana Cleaner Co., Ltd is a diversified manufacturing company with the overriding

goal of providing convenience in our life and diversity in the choice of cleaning products.

Through constant research and development, and investment, Gana has been

growing rapidly providing customers with a wide range of innovative, quality products.

We have been making great efforts to improve our technology for diversified

products made of Poly Vinyl Alcohol acetal sponge which is highly utilizable for various

purposes.

We are committed to providing quality products by developing technology of

multipurpose PVA sponge and by maintaining our proprietary technology in every PVA-

related material. All our staff in Gana will continuously make efforts to meet the needs of

our customers.

B.       SWOT Analysis 

Strengths Opportunities

Easy to use Lightweight. Can be helpful especially on the delivery

Non-abrasive. Can be used by individuals sensitive to chemicals, i.e. asthmatics

Environment-friendly. Many people who take care of the environment will find it useful

Customers has no knowledge of other competitors which makes magic foam looks like a new product giving it a big share in the customers mind

Can be used safely over various surfaces

Once implemented, surfaces cleaned will become easier to clean and stay cleaner for long period of time

It will remove the need for most other cleaning utensils. No chemicals, goggles, masks, respirators, gloves and other scrubbing tools required

Can be easily cut to a size that fits the required cleaning application, reducing wastage

Filipinos considers cleanliness as an important part of living Sponge Bomb can also be used by companies in the country. Example is carwash and car repair business The number of students who lives in the boarding house is increasing. Since they live alone, they would want a cleaning material that is easy to use Group of environmentalists who dislike using harmful chemicals as cleaners can contribute to the popularity of the magic foam Filipinos can be easily attracted to a product when they saw it working with their own eyes, so public demo using magic foam is good.

Weaknesses Threats

Some people in the Philippines are afraid to try new things and since most of the people has no knowledge of the magic foam, penetrating the market will be hard

The company that produces the magic foam is not known in the Philippines

Its closest competitor is a well known company here in the Philippines

Economic instability of the Philippines Because Sponge Bomb is produced by a foreign corporation, it is highly sensitive to the changes in customs and importation laws Natural disasters is always a threats to every corporation Since magic foam came from a Korean Company, territorial dispute between North and South Korea can have a big effect on magic foam Philippines has many patriotic citizens that doesn’t entertain foreign products Some Filipinos considers trust when buying products and some cleaners are already have a share in the hearts of the customers

Key Internal Factors Weight RatingWeighted

Score

Strengths

Easy to use 0.10 2 0.20

Lightweight and portable 0.02 4 0.08

Non-abrasive 0.08 3 0.24

Environment friendly 0.07 2 0.14

Customers has no knowledge of other

competitors0.03 3 0.09

No damage to paintwork or to the surfaces

cleaned0.10 3 0.30

Surfaces cleaned will become easier to clean

and stay cleaner for long period of time0.10 3 0.30

It will remove the need for most other cleaning

tools0.10 3 0.30

Can be easily cut to a size that fits the

required cleaning application0.05 4 0.20

It has a wide range of area where it can be

use0.10 2

0.20

Weaknesses

Some people in the Philippines are afraid to

try new things0.10 2 0.20

Company that produces the magic foam is not

known in the Philippines0.05 3 0.15

Its closest competitor is a well-known

company here in the Philippines 0.10 3 0.30

TOTAL 1.00 2.70

Key External Factors Weight RatingWeighted

Score

Opportunities

Filipinos considers cleanliness as an important

part of living0.07 2 0.14

It foam can also be used by companies in the

country0.13 3 0.39

The number of students who lives in the

boarding house is increasing that can be a

target market

0.10 30.30

Environmentalists who dislike using harmful

chemicals can contribute to its popularity0.10 2 0.20

Filipinos can be easily attracted to a product

when they see it working with their own eyes0.07 3 0.21

Threats

Economic instability of the Philippines 0.12 2 0.24

It is highly sensitive to the changes in customs

and importation laws0.08 3 0.24

Natural disasters is always a threats to every

corporation0.10 3 0.30

Territorial dispute between North and South

Korea can have a big effect on its profitability0.10 4 0.40

Philippines has many patriotic citizens that

doesn’t entertain foreign products0.05 3 0.15

Some Filipinos considers trust when buying

products0.08 3 0.24

TOTAL 1.00 2.81

III. OBJECTIVES

We have set aggressive but achievable objectives for the first and second year of

market entry.

A. Marketing Objectives

To increase brand and product awareness to 67% by the end of 2011.

B.       Financial Objectives

V.      MARKETING STRATEGY

This marketing strategy is done in order to fully utilize our limited resources and

concentrate on the greatest opportunities to increase sales and achieve a sustainable

competitive advantage. We make sure that these strategies are centered on our goal to

provide satisfaction to customers.

A. Target Market

Primary Market

Our primary target market consist of females in the National Capital Region,

aged 25-44, Class B and C1, who are responsible of maintaining the household.

Secondary Market

We will also target businesses that require a cleaning material that can help them

in the cleaning process. Examples of those businesses that can be targeted are

carwash, business that offers janitorial services, car repair shops, etc.

B. Positioning

Sponge Bomb is positioned as a new generation cleaning material that uses no

harmful chemicals to provide its user the safety while cleaning. Its wide range of uses

and ease of use are what distinguishes Sponge Bomb from any other cleaning materials.

People can now enjoy a stress-free cleaning.

We chose the name SpongeBomb because of its uniqueness. The name creates

a long-lasting image of a breakthrough in cleaning on the customers mind. The use of

the word “bomb” depicts the idea of a blast and a cleaning agent that gives a blast

means ultimate cleaning.

Our suggested tagline is “blows stains away”. This positioning statement can

help us communicate with our customers in promoting our product. The use of the word

blow in the tagline is what relates it to our product name. Having the word “Bomb” on

our cleaning product’s name means that it can blow away something, and that

something is what the cleaning products are made for, stains. It also makes the brand

name interesting because it figures an ease in the hardship of cleaning the stains.

C. Competitive Strategies

Product

As part of our product strategy, we will introduce Sponge Bomb in two packages.

It will be sold individually which caters to the need of the household. It can also be

purchased in a special value pack containing 4 Sponge Bomb Dirt and Stain Removers.

This pack will cater businesses that need a huge amount of the product.

Price

Part of our pricing strategy is the analysis of price of our competitors, whether

direct or indirect.

The Sponge Bomb will be priced at SRP of P 65 per piece and a special pack

with four pieces at P235. Sponge Bomb was priced based on the average price of the

industry which is not too expensive neither cheap suitable to A, B and broad C

consumers. The consumer will have purchase discount for buying more pieces of

SPONGE BOMB than buying a piece.

Promotions

Advertising should be targeted towards the prospective audience in such a way that

it forms a positive impact on the customer and in the process creates brand recognition.

Website/Web ads

In the Philippines the Internet is growing. According to ITU, there are 27,900,000

Internet users as of June/09, representing 29.7% of the population. A website or

Facebook page for the product will serve as a portal for the product information and

at the same time to serve customer inquiries for the product.

Television Commercials

TV is definitely a good medium in reaching consumers and developing product

awareness. We will air a TV commercial that will be focusing on introducing the

product. The commercial will feature common people and no celebrities to lower cost

since our first target is to familiarize the people with the product.

Print Ads

The visual image has become an increasingly popular communication tool for

standardizing advertising campaigns. One of the media that we encounter every day

is print media, where words and pictures work together to produce a creative

advertising concept. In the country there is a big population who reads newspapers

and magazines to source out information. We are planning to feature the product in

magazines like “Good Housekeeping” and other household magazines to increase

consumer awareness.

Personal Selling / Door to Door Promotions

Sometimes you would like to target a specific group in a specific area. Door-to-door

promotion could be the best way to go about this. It will be an easy way to reach

households using by door-to-door selling. We will communicate straight to the

consumer with advertising techniques such as fliers, catalogue distribution,

promotional letters, street advertising and also product demos. This will be a chance

to reach customers who would not have gone to the shops and to lower cost that

takes part to promotion.

Place

As for our product, Sponge Bomb, that is relatively new to the market, we are dedicated

to place it in SM Supermarkets and ACE Hardware Branches nationwide. These stores

will give us an advantage to be known nationwide as it is place in the super malls and

supermarkets of the country where people are mostly go shopping and or just simply

standing by. We will implement selective coverage to reduce our costs.

VI.    ACTION PROGRAMS

A.       Advertising and Promotion

Marketing Tools Scheduled Activities

Television

Commercials

Television is one of the most powerful media tools. We will be

airing teasers during the 1st week of March to arouse curiosity

and create buzz about the product. After that, full commercials

will be aired during the 2nd week. This will allow us to reach our

target market and create product awareness. The commercial

will also allow us to communicate the product’s features,

benefits, and advantages. The commercial will feature layman

endorsers that our target market can relate to.

Website and Social

Networking Sites

Pages

In the Philippines the population of Internet users is growing.

According to ITU, there are 27,900,000 Internet users as of

June/09, representing 29.7% of the population. An interactive

website will be set up using free web-hosting starting March.

Social networking sites (Facebook, Multiply, etc) pages will also

be utilized. These will serve as portals product information and

at the same time to serve as venue for customer inquiries,

comments, and suggestions regarding the product.

Print Ads The visual image has become an increasingly popular

communication tool for standardizing advertising campaigns.

One of the media that we encounter every day is print media,

where words and pictures work together to produce a creative

advertising concept. In the country there is a big population who

reads newspapers and magazines to source out information.

We will feature the product in broadsheet newspapers and

magazines like “Good Housekeeping” and other household

magazines throughout the 1st year.

Product

Demonstration and

Sampling

We will conduct a 3-day product demonstration and product

sampling in select SM supermarkets (10 branches) and ACE

Hardware stores (20 branches) during the 3rd week of March

after airing our full TVCs.

Billboard and Mobile

Ads

A billboard will be placed along EDSA during the 2nd year for 3

months to continually remind the market of the product’s

presence. Mobile ads will likewise be used during the 2nd year in

addition to TVCs and print ads.

Personal Selling We will be employing a team of skilled salespeople who will

target businesses that offer janitorial, and carwash services.

This team will likewise cover Banawe, an area lined with shops

where motorists purchase car accessories as well as cleaning

aids for their cars.

Event Sponsorship The company will also sponsor an event during the second year

that will have ethicality and sustainability as its theme. A notable

segment of consumers are deliberately avoiding companies and

brands with a poor environmental reputation and are also paying

attention to sustainable packaging issues.

B.       A&P Summary of Plan 

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