1

COMPANY BACKGROUND

TreeHugger is a brand by Fernbelly Incorporated. The company was started in 2007 as part of a

thesis requirement for the course of Business Management with a Minor in Enterprise Development at the

Ateneo De Manila. Fernbelly Inc. began in the food industry and put up stalls in malls, schools and call

centers. Afterwards it expanded the business to providing general merchandise to large corporations.

After two years the humble venture has grown to an organization that has worked with numerous local

and international media corporations, petroleum corporations, schools and even manning agencies by

providing corporate giveaways. In early 2009, they ventured into the retail sector by providing Ateneo de

Manila University and De La Salle University with LED-enhanced Message Fans while donating a

portion of the sales to each school’s respective scholarship funds. By the end of 2009, Fernbelly Inc.

became suppliers for the Global Peace Festival and the Global Peace Convention and became a part of the

GPF’s drive to raise funds for world peace and the Education of the youth in Mindanao. From Here,

Fernbelly Inc. has found its calling of balancing financial and purpose-driven concerns in all its business

ventures. In 2010, TreeHugger was born.

The TreeHugger line is comprised of quality pens and highlighters, made out of recycled cartons

and biodegradable, corn-based plastic, and pencils, made out of perma-bound recycled newspapers. They

are available at your favorite bookstores at the same price range as every other pen and pencil, which

makes the product all the more attractive since most eco-products are sold at a premium price range.

Through Haribon Foundation, every pen and pencil you buy not only decreases plastic wastes and

saves trees through the use of recycled paper and biodegradable materials, they also contribute to the

reforestation of our country through the Give a Gift Tree Drive. TreeHugger products are based on an

idea for a Nationwide Environmental Movement anchored on awareness. The goal is very simple: Give

people the power to make an improvement on our environment, while maintaining absolutely 100%

of the convenience of their daily lives.

2

TREEHUGGER PRODUCTS

THE TREEHUGGER PEN

The TreeHugger Pen is a retract-action ball pen made almost entirely

of recycled or biodegradable material. The barrel is made from

recycled carton, while the peripheral parts are made from PLA corn

plastic. The TreeHugger Pen is available in black, blue and red

colors.

Blending environmental sustainability with product quality, the

TreeHugger pen is made through manufacturing standards of a

superior caliber.

THE TREEHUGGER "I WAS A NEWSPAPER" PENCIL

The TreeHugger "I Was A Newspaper" Pencil is made from perma-

bound newspapers from all over the world. Manufactured,

using a specialized perma-binding process, each pencil made up of a

newspaper page permanently wrapped around a stick of high-

quality graphite.

This means, you can still read the articles on the newspapers used to

manufacture the pencil! Each pencil is topped off with a high-

quality eraser top.

THE TREEHUGGER 2-IN-1 HIGHLIGHTER PEN

The TreeHugger 2-in-1 Highlighter Pen is a double-sided

highlighter stick equipped with a ball-point pen on the opposite end.

Like the TreeHugger Pen, it is made almost entirely of recycled or

biodegradable material. The barrel is made from recycled carton,

while the peripheral parts are made from PLA corn plastic. The

highlighter comes in both green and yellow colors, while the ball

point end comes in standard black.

Blending environmental sustainability with product quality, the

TreeHugger pen is made through manufacturing standards of a

superior caliber.

Finally, each product sold contributes to the reforestation of the Philippine forests through Haribon

Foundation's Give a Gift Tree drive.

3

SITUATION ANALYSIS

CURRENT MARKET SITUATION

TRENDS

In 2012, writing instruments is expected to record a relatively slow volume growth of 2%, just slightly

slower compared to the volume increase in 2011. Much of the slowdown is attributed to the rise in

computer use, although sales are buoyed on the other end by the government’s move to require

kindergarten attendance beginning in 2010. Whereas kindergarten attendance used to be optional, the

Department of Education (DepEd) has issued a regulation making kindergarten a required school

programme. In 2011, the DepEd released funds for public pre-schools earlier than required, as a show of

support for the new regulation, and has also moved to make the age of entry for first grade one year

earlier, at six years old. This will allow writing instruments to exhibit only a slight decline in growth rate.

COMPETITIVE LANDSCAPE

Throughout the review period, multinational brands have remained the dominant figures in writing

instruments in the country. In fact, the only local manufacturers that have made a mark in writing

instruments are Amalgamated Specialties Corp and National Bookstore Inc, which produces its own

private labels NBS Basics and Bestbuy. These private label lines mostly focus on offering a low-priced

portfolio of writing instruments, leveraging on the strong position of National Bookstore as a top

stationers/office supply store chain across the country.

PROSPECTS

Writing instruments is expected to post a CAGR of 2% in volume terms and 4% in constant value terms.

Whilst these figures are relatively slow, industry sources agree that dynamic shifts within different

categories will be the main drivers of growth for the category.

http://www.euromonitor.com/writing-instruments-in-the-philippines/report

MARKET SHARE

HBW 2000 25%

Panda 757-RP 23%

Faber-Castel LV-5 19%

Lotus 14%

Bic 8%

Stabilo 7%

Treehugger target Share

4%

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SWOT ANALYSIS

STRENGTHS WEAKNESSES

1. Uniqueness and creativity of the product.

2. Has a competitive quality.

3. Advocate of making eco-friendly products.

4. Consumers understand the climate crisis

and are willing to influence the behavior of

businesses through their purchasing habits.

5. The use of these products and their

production don't damage the environment.

1. Lack of brand awareness from their target

market.

2. Not properly displayed.

3. In many cases, the products are more

expensive than other regular (non-eco-

friendly) products which can discourage

some shoppers from purchasing them.

OPPORTUNITIES THREATS

1. People start to become more concerned with

the environment.

2. Eco- friendly products is one of the new

trends in the market.

3. Changing consumer preferences.

4. Market demands for cleaner and greener

environments and products.

1. Increasing number of small manufacturers of

eco-friendly products.

2. Business rivals are becoming more

competitive and aggressive.

3. Constant increase in number of competitors in

a growing market.

5

What I like about eco- friendly pens:

For a good cause 95% Earth friendly (Sort of) cheap Light weight Quality ink

-katiepenny.blogspot.com SUNDAY, MAY 15, 2011

I remember a priest once tell me that a good pen is

Always something one should have at the ready

- And not just one pen, but one in every pocket!

-http://www.environmentphilippines.com

MONDAY, OCTOBER 17, 2011

CONSUMER INSIGHT

I’m looking for the perfect partner for my future BDJ.

I’m in a mood for eco-friendly pens. What makes them

so very special is that they are super friendly

and caring to the environment.

http://luckycitrine.blogspot.com

TUESDAY, OCTOBER 11, 2011

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COMPETITOR’S ANALYSIS

DIRECT COMPETITOR

COMPETITORS STRENGTHS WEAKNESSES

NBS Eco-friendly Pens

1. Low-cost product

2. Manufacturer’s brand

3. Materials used are fully

biodegradable and not

harmful to the

environment

1. Poor quality of products

2. Super plain packaging

3. Have a tendency to be

less functional than their

conventional

counterparts

Small Manufacturer of

Eco-Friendly Pens

1. Low-cost production

2. Available in bulk-orders

3. Uniqueness of the

product

1. Poor quality of products

2. Has no brand identity

3. Tend to be less

functional than their

conventional

counterparts

INDIRECT COMPETITOR

COMPETITORS STRENGTHS WEAKNESSES

Faber Castell

1. Consistent quality of the

product

2. Brand Awareness

3. Attractive and eye-

catching packaging of the

pen

1. Not an eco-friendly

product

2. Delicate tint- becomes

blotted when pen is

dropped

Pilot

1. Fine quality of the ink

2. Prestige that the

customers feel when

using the product

3. Have loyal users

1. High cost of the product

2. Delicate tint- becomes

blotted when pen is

dropped

3. Not an eco-friendly

product

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MARKETING OBJECTIVES

1. To increase brand awareness of the product.

2. To increase market sales.

3. To strengthen further their advocacy of saving the environment.

4. To improve existing products to a quality that will satisfy more customers through offering a

product that suits their preferences.

5. To offer the market a different experience using eco-friendly products.

TARGET MARKET

PRIMARY TARGET MARKET

The youth, aged 10-19 years old, especially students in the 4th grade of the primary level where

kids are starting to develop a mindset.

Environmental Advocates, who eagerly supports products and activities concerning the

environment

SECONDARY TARGET MARKET

Professionals specifically office employees who basically use pens to accomplish their works.

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The target market of the product belongs to the following social class:

SOCIAL CLASS DESCRIPTION

1. Class B

Considered as the working rich.

They made up the 10 % of the population.

Some of them are credit card holders.

They can be impulsive buyers.

They purchase product regardless of the price.

2. Class C

They belong to the Working Class

They are the largest group, for they made up

40% of the population.

They are practical buyers.

They purchase product that has quality.

3. Class D

Blue Collared Workers

They made up the 25% of the population

They buy only what they need.

Price conscious.

POSITIONING

The whole idea is that when the brand TreeHugger is mentioned two things will come to people’s

mind, overflowing creativity and nature. A brand that promotes freedom of expression that people are

most familiar of, which is doodling .Adding doodles in the packaging aims to promote the idea of

unleashing creativity, at the same time contributing in the improvement of the environment through the

purchasing of the product. Furthermore, it shall instill in the mind of the public the importance being

responsible and taking part in even small activities that would cater them the said benefits,

9

MARKETING PROGRAM AND STRATEGIES

PRODUCT

The current TreeHugger products are made out of recycled materials. The TreeHugger ball pens and

highlighters are made out of recycled cartons and biodegradable, corn-based plastic. Now, this plan will

be concentrating in the development in the packaging of TreeHugger pens, namely the Gelfriend and 2-in-

1 Highlighters.

The corn-based plastic, located in both end of the pen, comes in different colors: black, blue, yellow and

red. The barrel, which is made out of recycled cartons, where the TreeHugger logo is also placed, comes

only in plain design.

PRODUCT PACKAGING

“DOODLE”

Doodle is the art or act of making shapes, forms or pictures by creating random scribbles of lines. When

we were younger, we use to draw things that come in different shapes and sizes. The idea of adding

doodles in the packaging aims to promote the idea of unleashing our creativity, at the same time

contributing in the improvement of the environment through the purchasing of the product.

The launching of the new themes for the products aims, not only to support their Earthly advocacy, but

promote the freedom of expression in a positive way by expressing what they truly feel that will also be

beneficial to everyone.

The plain old packaging will be substituted by different doodle theme lay-outs that endorse different point

of views towards life and the environment. The doodle will vary according to what theme you chose to

support. The following will be the “Front Liner Themes” for the product:

- Love

- Peace

- Nature

- Music

Additional themes will be added, laid-out particularly, to match the incoming events of the year. These

will be called “Seasonal Themes”.

- New Year (January)

- Valentine theme (February)

- Graduation( March and April)

- Summer (May and June)

- Freedom/ Independence (June)

- Halloween Theme(November)

- Christmas( December)

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PRODUCT LAY-OUTS

PRODUCT SIZE

“FRONT-LINER THEMES”

1

Inch

3.9

Inches

11

“SEASONAL THEMES”

The caps will also being improved. An addition of logo of the TreeHugger in the stem of the caps

will be applied illustrating a man hugging a tree trunk.

The idea of imitating a man hugging the tree in the logo is to directly send to the public the

advocacy the TreeHugger has which is, to protect the environment and defend it against pollution and

other environmental destruction.

12

13

TreeHugger products that are being sold in the market are

placed in a display rack as we can see in the illustration.

Display racks are made to protect the product that re being

display in the shelf and for the people to easily recognized

and purchased the product.

The problem with the current display stand is that

when the stand is about to be emptied, pens started to

cluttered and scattered unless a merchandiser timely check

products and rearrange it.

The proposal of a new design for the display stand is suggested. The new lay- out aims to catch the

attention of the market with its new lay-out and motivates them even more to buy and patronize the

product.

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A divider with holes in it was added

to prevent them from being slacked when the

rack is close to being empty and to sort out the

pens according to its theme. The Front Liner

Themed pens will be placed in three lots, each

having their respective concept. The

remaining lot slot will be for the Seasonal

themed pens.

The design was inspired by their advocacy

of saving the trees. The display stand was

decorated resembling a tree to represent its

purpose to others and to the world.

15

Pricing Strategy

TreeHugger products are currently being sold at the following price range:

TreeHugger Pens

Both Gelfriend and Retractable are being sold at Php 20.00

TreeHugger “ I Was A Newspaper” Pencil

Sold at Php 20.00/pack (5 Pieces/ pack)

TreeHugger 2-in-1 Highlighter

Purchased for only Php 30.00

In the regular time of selling, Value Marketing will be used where company attempts to gain the

maximum impact by persuading them to purchase its product with a streamlined, cost-effective marketing

approach. The products are being offered at the same price range as every other pen and pencil, which

makes the product all the more attractive since most eco-products are sold at a premium price range.

During the Sponsorship Projects, there will be a reduction in the price offered or simply saying cash

discount.

Place or Distribution Channel

TreeHugger products are being sold in the following stores:

National Bookstore

PowerBooks

Fully Booked

Papemelrotti

Office Warehouse

The following outlet let the product become easily purchased and locate by the market because of its

numerous branches available nationwide. Through the following channels the product can directly be

delivered to its end users.

16

Marketing Communications

Earth Fest 2013 Sponsorship Program

Event Title: Earth Fest 2013: Sports War against Climate Change

Date: April 7, 2013 (Sunday)

Venue: Filinvest Corporate City, Alabang, Muntinlupa

Main Objective: To create brand awareness and to strengthen their advocacy.

Target Audience: Sports enthusiasts and Environmental Advocates from different organizations, clubs,

and companies, who support their advocacy against climate change and restoration of the environment.

The event was organized by Sonshine Media Network International (SMNI), together with its partner

organizations, media affiliates and companies. This is a grand event to raise funds for Sonshine

Philippines Movement’s 7 major environmental programs and initiatives that help fight the adverse

effects of climate change today. The event will feature a Fun Run, a Bicycle Race, a Mountain Bike

Event, a BMX Competition, a Street Dance Battle and a Concert Night where this year’s Environmental

Heroes will be awarded and recognized. A grand sports and health bazaar will also be setup.

This is to serve as the start-up of the overall Marketing program. TreeHugger will be one of the main

sponsors of the event. Making a connection with other Environmental Groups and by becoming one of the

sponsors of the event is one way to promote the product and at the same time being one with them in our

advocacy that is to battle it out against climate change.

The Mileage contains the following (P 150,000 - Minor Sponsor):

Large logo at the backdrop

Two times acknowledgement by the Event Hosts (per hour)

Space for Booths

Included in Press Conference

Large logo in all Promotional streamers in strategic places in Manila like schools and campuses

Large logo at the Start/Finish Ark

Large logo at in EDSA (for 1 month before the event date)

Medium-sized logo in the jersey, singlet and staff uniforms

Logo at the official website, Facebook page, twitter and online invitations

Medium-sized logo inclusion in all newspaper ads (Broadsheets and Tabloids)

15 pieces banners at the Event Area (3’x9’ vertical)

Brand Specific Activities (Pakulo)

Two times per hour TVC at the Video Wall (per hour)

“In cooperation with…” Acknowledgement in TV and Radio Plugs (2 months)

Inside events:

1. Booth- provided in the sponsorship agreement, where products can be displayed, and offered to

the market.

17

Sales Promotional Plan

TreeHugger Sponsorship Promo

The TreeHugger will conduct this promo only during sponsorship and chosen activities to motivate the

market and to introduce them to those unfamiliar consumers.

Promo Title: Make your Doodle Do Buy 2-Take 1

This is a Buy 2 Take 1 promo where the product is sold at a conditional rate. People can purchase

products (GelFriend and Retractable only) for only Php 50.00.

Sales Promo Mechanics:

This promo is available to event participants who want to purchase the product during the event.

This sales promotional plan is applicable only during sponsorship

2. Introduction of the mascot “Treenie, the Tree”

A mascot will be introduced to the public. The mascot having a friendly face aims to further

attract the mass especially its primary market, the kids.

Mural Painting

Event Title: Mural Painting: Celebrating Mother Earth’s Colorful Day

Main Objective: To create brand awareness

Target Audience: Participating Barangay

Target Date: April 22, 2013 (Earth Day)

A beautification project will be launched on the chosen barangay. The mural aims to unleash the

creativity of the market with the help of another eco-friendly product, Boysen KNOxOUT, a product of

Boysen Paint Philippines, a revolutionary paint that converts noxious air pollutants into harmless

substances in an environmentally safe process called photo catalysis.

A mural painting is conducted to help them realize the value of a clean environment and pleasant

surroundings. The participation of the barangay officials especially the SK Officials is recommended for

them to serve as the role model of their community.

18

Mural: Celebrating Mother Earth’s Colorful Day

Back to School Tour 2013

Event Title: Back to School Tour 2013: “Make Your Doodle Do”

Target Date: In time with the Annual University General Orientation

Target School and Universities:

The following schools were chosen based on their student population, included in the list with the most

number of students; and location, these are places were floods easily arises when heavy rain pours.

University of Santo Tomas

Polytechnic University of the Philippines

University of the East

Objective:

1. To create brand awareness

2. To promote the product

3. To increase sales and profit

Target Audience: Students from the said universities

Yearly, universities held orientation to welcome their students for another year and orienting the

newly enrolled students.

This project aims to introduce the product to its original target market, the youth. Introducing to them in

the most familiar way they know through the most common thing they use, which is ball pen. Making

them realize

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Inside Events:

1. Photo booth- students can take a picture with their friends and barkadas. To make it more

memorable, they can also have a picture with “Treenie, the Tree”, making them feel again and

letting them experience the things they used to do when they were a kid.

2. Booth- where products can be displayed, and offered to the students who want to purchase the

product and be in one with the advocacy right away.

20

PROMOTIONAL MATERIALS

VISUAL METHOD

1. Posters- to be posted during Campus tours and on the different store outlets, as well.

Back to School Tour 2013: “Make Your Doodle Do” Poster lay-out

This will be the lay-put of the poster for Campus Tours. The poster is specifically design to be colorful to

attract the market and to incline the feeling of fun and funky.

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TreeHugger “Make Your Doodle Do” Concept

2. Audio Visual Presentation- a viral video that will be posted on their social media sites such as

YouTube, Facebook and Twitter.

22

AUDIO METHOD

1. Radio Advertisement- to be aired on the following chosen radio stations

These radio stations were chosen according to the type and number of listeners.

• 90.7 Love Radio

• Magic 89.9

• 97.1 Barangay LS

• Monster Radio RX 93.1

• Tambayan 101.9

Radio Ad Script

“Every ton of recycled of materials save two-point five cubic yards of landfill space Thirty-five

percent of it are papers and eleven percent are plastics. If we can at least reuse thirty-five percent of it, we

can do a greater help to the environment. TREEHUGGER…Saving the world together.”

SOCIAL MEDIA

Through the use of Social Networking Sites, this is now considered as an effective tool to promote.

Activity updates will be posted on their accounts to further reach the market where public can access

them anytime and anywhere they like.

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FACEBOOK PAGE

TWITER ACCOUNT

24

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FINANCIAL (BUDGET)

MARKETING COMMUNICATION

Print Ads

Inquirer Libre

½ Page size

o 7 cols. x 15 cm = Php 48,006.00/ week (Colored)

o ( Monday to Friday) 2 months Php 384,048

Philippine Daily Inquirer

¼ Page Size

o 4 x 30 cm = Php 32,928.00 (Colored)

o ( Monday to Friday) 2 months Php 258,624

Radio Ads

Over-all Selected Radio Station

o 30 Seconds (twice a day) = Php 18,500

o Thrice a week ( 2 Months)

Php 18, 500 x 24 days = Php 444,000

o Php 444,000 x 4 Radio Stations= Php 1,776,000

TOTAL MARKETING COMMUNICATION COST PHP 2,418,672.00

MARKETING PROGRAM

Earth Fest 2013 Sponsorship Program

Sponsorship Cost Php 150, 000

Mural Painting Food for Participants

Php 250/person x 30 persons = Php 7500

Miscellaneous Fees Php 10 000

Back-to-School Tour Poster

2x 3 size Php 100/ piece x 30 pieces = Php 3000

Tarpaulin with Standee

Php 350 x 15 pieces = Php 10 500

Booth

Php 125 000(inclusive of electricity)

Sound System

Php 25 000 x 3 Events = Php 75 000

TOTAL MARKETING PROGRAM COST PHP 381 000.00

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PRODUCTION COST (based on the skin of the Prototype)

Product Quota: 1 million pieces

Duration: 6 months

Barrel

Raw Materials Php 95,244

Printing 428,574

TOTAL Php 523,818

Cap

Raw materials 166 698

Printing 9261

TOTAL 175,959

TOTAL PRODUCTION COST PHP 699,777.00

OVERALL TOTAL COST

Total Marketing Communication cost Php 2,418,672.00 Total Marketing Program cost 381,000.00

Total Production cost 699,777.00

TOTAL: PHP 3,499,449.00