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8/2/2019 Picnic Basket Proposal Edited
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I. EXECUTIVE SUMMARY
Picnic Room Company is a corporate entity that focused on native baskets primarily
concentrating in innovations of baskets, making it more acceptable in todays generation
of market. It never stops thinking and developing its products for delivering the needs
and wants of customers. The company creates products that will make the market
realize their needs for it even before it comes to their own minds. And it devotes it in
making the customers family activities easier and more comfortable.
Summer is approaching and Picnic Room Company respects Filipinos culture and
traditions during this season. And the most common activities Pinoy do are outings,
mountain hiking, resorts hopping, and travelling. Families desire for more bonds and
outings, those professionals crave for vacation and relaxation, friends make time to get
together and enjoy different amazing tourist destination in our country.
This marketing plan aims to form a proper and better way of planning a specific
product that will suit the market needs; it is either by a product innovation or by a new-
product development.
The passion of the business to present a well thought-out product will help them to
have properly arranged things for their outings or picnics.
I. CURRENT MARKETING SITUATION
A. Market Description
Geographic
Country: Philippines
Region: Luzon (National Capital Region)
Population Density: Urban
Season (Climate): Summer
Demographics
Age: Any
Gender: Any
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Family: Young, Married
Family or Group Members: 3-5
Income: P15000-P30000
Religion: Any
Industry: Baskets
Psychographics
Social Class: Middle
Lifestyle: Family, Groups
Activities: Outgoing (Going out: Swimming, picnics, camping, sports)
Values: Loves quality time with family & friends
Personality: Organized and Outgoing
BehavioralOccasion: Summer (Picnic, Swimming, Camping)
B. Product Review
The website everythingpicnic.com offers variety of picnic baskets. It is a
foreign product and it shows the same features for being organized. The pricing
of the products are also in dollars. Shipping is the way of distributing their
products to their buyers.
The Philippines is known as one of the manufacturers of picnic baskets.
The basket features are different from other picnic baskets that are seen in the
market today. Our companys picnic basket is for the organized persons. The
basket has compartments for different things to be brought in the picnic.
The company reviews other picnic baskets of other company. Most of the
picnic baskets are sold online. The picnic basket has its own styles, there is a
design that looks like a chicken or rooster and there is also the typical design of
the basket. Most of the baskets sold in the internet do not have cover because
this is the latest design of a basket. Since, picnic baskets are all over the world,
the pricing strategies differ from each other. The Philippine made picnic baskets
sold in the internet are priced in dollars because most of the products are
ordered by the foreigners.
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There are picnic baskets located in Quiapo, Manila which the company
reviewed. There are lots of store that offers variety of picnic baskets. The store in
the place is namely: Magsino Native Products, Filipinas Handicrafts, Int Native
Crafts and General Merchandise, and a lot more. The products they are offering
are the following: picnic baskets, coin baskets, flower baskets, fruit baskets, anda lot more. Their products are all native and every product has its own concept
and styles. There are also products like trays and other native home decorations.
The picnic baskets that are sold there are made of nito, rattan, wicker, and buri
split (combination of rattan poles and tilob fibers). The products are mostly from
the province of Pampanga which is brought in Manila to be sold. In terms of their
pricing, you can get discount of 50-100 pesos in their products.
In SM Megamall, the store Kultura and Regalong Pambahay also offers
baskets that are made from abaca, nito and wicker. The baskets are coming formVisayas. Their baskets are rectangular with handle and there are also round
baskets. There are also baskets without handle and without cover. Every
product has its own design and styles that makes it unique with each other. Since
the baskets are from Kultura, one of the stores in most SM malls, it is priced high.
In terms of buying, when you are in Quiapo you can have a discount in every
time you buy but in the mall, you can have discount if there is sale in the mall or
in the store.
The sales of picnic baskets in summer season may rise because manypeople, especially families are going out to have picnic. The baskets are salable
in any occasions but in terms of picnic baskets, there are many competitors that
can defeat the native picnic baskets which are discussed in the next part.
C. Review of Competition
The picnic basket industry in the Philippines is not as demandable
compared to other country. Since the Philippines, a third world country, only a
few would spend on this product. Most of the Filipinos are practical buyers and
would spend less on such. So as to make the product be demandable, the
product price should be flexible.
Most of the considered competitors of our product are those who advertise
online. A lot of entrepreneurs as well as companies have been investing their
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efforts on this. Many people are time-savers and would want less effort on
shopping and this is an edge of them on which our company would be planning
on. Price range from simple styled basket that costs Php 300-500, and those that
have lids, medium to large costs Php 700-5000. The competitors will include
those that are sold on mall outlets.
The following are current and prospective competitors of Picnic Room
Company. It is also stated here, the information and strategies of the said
companies.
Primary Competitors
A&R Craft Philippines (14 Natividad Street, SFDM QUEZON
CTIY)o A single proprietorship
o Local supplying, trading, subcontracting, direct
manufacturing, then later on exporting
o Belongs to the Small and Medium Enterprises of the country.
o Can handle mass production with good quality and shipment
on time.
o Complete and strictly comply with the Customer's quality
standards
o Serves and manages active foreign accounts mostly fromthe United States, North America, Canada, Paris, London,
France, Kuwait, Japan, and other Asian countries
o A Young and Energetic Manufacturer and Exporter of
Philippine Giftwares and Decorative Craft Products
specializing in the production of Novelties and Craft Items,
Christmas and Halloween decors, Packaging and Functional
products, utilizing different indigenous materials and natural
resources abundant in the country.
o Products are man-made, hand-made of natural materials
and vary slightly from piece to piece; hence tolerance points
are always expected.
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Kultura Filipino
o The largest Filipino lifestyle retail chain in the country
offering a definititve shopping experience for Philippine
culture and crafts.
o Creates world class Filipino products sold at reasonableprices.
o It evolved into a lifestyle retail store showcasing a wide
range of furniture, house wares, home decor, wearable
fashion, souvenir items and food.
o It became an affiliate of SM Incorporated.
o It is located in major mall outlets - SM Megamall, SM Makati
Annex, SM Mall of Asia Main Mall, SM North Edsa The
Block, SM Cebu North Wing, and selected department
stores.
Secondary Competitors
Coleman
o Famous and successful manufacturers of camping
equipment and outdoor recreational products.
o The Coleman Company makes what it takes to be a happy
camper.o A leading manufacturer of outdoor recreation gear, it
produces coolers, backpacks, tents, sleeping bags, air
mattresses, lanterns, grills, life vests, and floats, among
other items, which are sold under the Aerobed, Coleman,
Campingaz, Exponent, Hodgman, Mad Dog Gear, Sevylor,
and Stearns brands.
o Coleman operates sales offices and distribution facilities
worldwide and sells its products mainly through mass
merchandisers, home centers, and other retail stores, as
well as through its website and a network of about a dozen
Coleman Factory Outlet stores.
GIPICOM PLASTIC INDUSTRIES
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o The company positions itself as a supplier of high quality
BIODEGRADABLE plastic bags.
o Producing plastic products customized to the needs of its
institutional clients.
D. Review of Distribution
The Philippines is the second largest world producer of handicrafts, mainly
baskets out of indigenous materials.
Many Filipinos are engaged in handicraft businesses. Handicraft-making
has become a means of livelihood for them. Many handicraft owners are
exporting their products to Japan, United States, Canada, Australia, Hong Kong,
Singapore, and other countries around the world while many handicraft items arealso sold on the local market.
Although the industry has experienced some difficulties specially in the
shortage of raw materials in the past years, it has kept the respect of the high-
end markets in the United States, European Union, and Japan and although it
lost some of its market in China, our main competitor.
Over the years, Philippine handicrafts have evolved through innovative
changes in designs strengthen by different choices and combination ofindigenous materials. There is however still a room for improvements and
innovations which means there is still a room for the new company of people that
will enter in the industry.
II. THREATS AND OPPORTUNITIES ANALYSIS
Strength
Comes with either one or two handles for ease of carrying
The largeness afforded by BASK IT means you can pack a fine
quantity of materials, foods and assorted items for the picnic.
The basket comes with dividers that serve as compartments for the
materials which would make the basket more organize.
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The basket has a space for small coolers which would serve as
container for ice, beverages, and to maintain the temperature of cold
foods.
Coolers help keep food at ideal temperatures for long periods of time
and can help to keep food from spoiling. The materials used are of high quality and there is assurance of lasting
longer than the ordinary.
Weakness
Not all Filipinos are fond of using baskets in outings and picnic.
Some Filipinos prefer foreign made products.
Picnic baskets seem to be old fashioned.
Opportunities
Participation in basket industry which is generally quite steady in terms
of sales.
Offers an opportunity to revive the industry of rattan and the like.
The challenge of using baskets instead of plastics which is the most
common.
Threats
The entry of same product line competitors.
The industry is attractive, in part, because of its simplicity, creating an
incentive for new entrants into the market.
III. OBJECTIVES AND ISSUES
OBJECTIVES
Mission
Picnic Room Companys mission is to create the finest picnic baskets
available. We exist to attract and maintain customers. Our products and
services will exceed the expectations of our customers.
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Business Objectives:
1. To be able to apply marketing trends and updates such as:
a) Product innovation, business improvement and adopt other relevant
marketing strategies;
b) To be able to fully advertise the business using some non-
traditional campaign and;
c) To be able to conduct sales promotion campaign to be adopted for
the whole-year round.
2. To be able to provide innovative products that definitely answers and
reaches specific needs and problems.
Marketing Objectives
Increase repeat customers by 7% per quarter.
Decrease the marginal per customer acquisition costs by 8% per
year.
Financial Objectives
Profitability by the end of year one. Increase sales enough to warrant hiring an employee.
ISSUES
Picnic Room is a start-up business. Its critical issues are:
How to control the start-up expenses.
Expanding in size only when it is no longer possible to fulfill orders
of the customers. It is important to do this carefully because if the
business is expanded and demand suddenly falls, Picnic Room
could be subjected to severe financial distress.
Generate awareness and customer loyalty for repeat business and
referrals.
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IV. MARKETING STRATEGY
The company desires to create a better way to connect and communicate the
value and importance of this picnic baskets innovation.
A. Identifying the Target Market
TARGET MARKET PROFILE
Name: Sheryll M. Cruz
Age: 34
Gender: Female
Occupation: Professional
Civil Status: Married
Social Class: Upper Class C
Likes & Interests: Going out with family (picnics, vacation trips)
Name: Alejandrina G. Espinosa
Age: 42
Gender: Female
Occupation: Housewife
Civil Status: Married with 3 childrenSocial Class: Class C
Likes & Interest: Spending quality time with family and relatives (family
reunions, swimming)
Name: Joseph Rey O. Dela Paz
Age: 26
Gender: Male
Occupation: Single Professional
Civil Status: SingleSocial Status: Class B
Likes & Interest: Travelling and going out with colleagues and friends
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B. Marketing Mix
The following outlines the details of the proposed marketing mix for BasKit
products:
Product Strategy
BasKit Baskets offers high-quality picnic baskets and picnic baskets with
coolers to its customers. These baskets offer more space for customers things
such as foods, drinks, and other items that they might need for their outing like
picnic blankets and gaming materials. The other product that BasKit offers is not
only a basket but a basket with cooler. This picnic basket with cooler not just
stores food and drinks but can also preserve and make drinks cold. Picnic basket
with cooler is great for those people who brings beverages and want it to be cold
when they drink it. The product strategy of bringing a cooler inside a picnicbasket will address the problem of those individuals who bring a cooler aside
from their picnic baskets. Having a picnic basket with cooler eliminates the need
of bringing a cooler in picnics.
Another way which BasKit plans to expand its product line is to offer picnic
basket with cooler and a drawer. This drawer is great for customers who have
extra belongings such as plates, bowls, etc.
Our Product
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Distribution Strategy
BasKit Baskets primary target will be Metro Manila because it is the place
where most people have the money to buy. BasKit will be marketed through
specialty shops in Metro Manila such as SM Department Store where the
company will offer 40-45 percent discounts for handling BasKits products.
Over the next three years, BasKit seeks to expand distribution to retail
specialty shops through the nation focusing on Cebu, Davao, and Central Luzon
regions. The firm has not yet decided if it would be beneficial to sell BasKit
baskets through national chains such as Kultura Filipino and Balikbayan
Handicrafts, as these could be considered competitors.
In addition, BasKit plans to sell its products through Internet so customers
could order customized products from the stores.
Promotion Strategy
BasKit will communicate with consumers and retailers in many ways.
Information about BasKit and its products will be available via the Internet, in its
website.
The company relies with SM Department Store to establish the products in
their stores. In order for the consumers to be aware of BasKit products, the
company developed its websites where interested customers will be available tosee clearly the pictures of our products. The company also produced a brochure
featuring BasKit products that will be distribute to targeted retailers. These
brochures will be distributed to interested consumers through retailers.
Other marketing methods that require little cash and a lot of creativity are
the perfect for BasKit promotions. The company is still small but through its
creativity, it is able to implement ideas like giving discount coupons and even
giving free baskets at summer camps. The company plans to engage in the
following marketing efforts:
Sponsor a camping event in the summer.
Hold a BasKit design contest, selecting a winning slogan and logo
to be added to the customized line.
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Pricing Strategy
BasKit Company provides good quality baskets for reasonable price that
consumers can afford. The price of BasKit baskets are in the price range of
P1999-P2499. The company offers a discount of 50% for the third product if a
customer buys 2. Customers who buy at its website can use their credit card inpaying.
V. ACTION PROGRAMS
Picnic Room Company provides the action needed to meet the specified needs
of customers based on the given current situation and to deliver and implement the
stated strategies:
Making it very available on stores
Advertisements through companys active website
Creating advertisements on social networking sites such as facebook
and twitter
Exploring and entering worldwide web stores such as multiply,
sulit.com
Since this generation has been aware of the technological advancements, the
corporation decided to have a website from the time the product has been launched. It
will be handled by the advertising department with the collaboration of the marketing
department to make the system more efficient.
Another reason for this is that most of the stores here and abroad have been
using the web as another store to offer their products as well as other services.
Moreover, the site will cost lesser than putting up a lot of advertisements on tri-
media but the idea of it will not be disregarded by the company.
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VI. BUDGETS
(This is production plan and target sales for the business to continue the
operation and to launch its marketing activities)
Production/manufacturing cost:
Based on every picnic basket
Materials: Price in Peso
Wicker picnic basket P1, 200.00
Bamboo-made division 250.00
Cooler 270.00
Basket for drawer 130.00
Total Material Cost P1, 850.00
Add: Manufacturing and Transportation cost
(Including labor and taxes) 120.00
Product Cost P1, 970.00
Selling price:
Product Cost P1, 970.00Add: Mark-up 80.00
Factory Price P2, 050.00
Add: 1st hand retailers (distributors) 20.00
2nd hand retailers (stores) 30.00
Market Price P2, 100.00
Production:
(If base in monthly production and it also the target sales quota per month)
1st production:
Selling Price P2, 050.00
Multiply by: No. of pieces produced 120
Target Sales P246, 000.00
2nd production
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Selling Price P2, 050.00
Multiply by: No. of pieces produced 240
Target Sales P492, 000.00
3
rd
productionSelling Price P2, 050.00
Multiply by: No. of pieces produced 480
Target Sales P984, 000.00
4th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 960
Target Sales P1, 968, 000.00
5th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 1920
Target Sales P3, 936, 000.00
6th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 3840
Target Sales P7, 872, 000.00
7th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 7860
Target Sales P15, 744, 000.00
8th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 15360
Target Sales P31, 488, 000.00
9th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 30720
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Target Sales P62, 976, 000.00
10th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 61440Target Sales P125, 952, 000.00
11th production
Selling Price P2, 050.00
Multiply by: No. of pieces produced 122880
Target Sales P251, 904, 000.00
12th production
Selling Price P2, 050.00Multiply by: No. of pieces produced 245760
Target Sales P503, 808, 000.00
From the 1st production we will use P246,000.00 worth of production cost to
produce the 120 pieces (1 pieces costing P1,970.00) and after 12 th production or end of
the year, we produce 245,760 pieces that market worth of P 503,808,000.00 and the
production cost of it is P484,147,200.00. Therefore the net revenue for the year will be
P19, 660,800.00.
In the 2nd year of business operation, we will expand in Visayas particularly in
Cebu. The same process of production will apply, also in the business expansion in
Mindanao in the 3rd year.
SALES AND EXPENSES FORECAST
The Picnic Room Company monthly target sales shown above are the sales
forecast. It is a positive view of the company that the production grows monthly.
Aside from the fixed assets that the company has invested, the materials and
supplies used to make picnic baskets is part of the expenses of the company. Another
additional expense is the advertisements and sales promotion that was is written in the
4Ps. The expenses must not be higher than the sales. The expected expenses must be
10% of the revenue.
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VII.CONTROLS
Picnic Room Company makes sure that the activities of the entity are strictly
monitored. As the business continuously run, the company focuses on monitoring how it
will endure the pressure and how will it manage to handle the uncertain events that
could occur.
The following are the provided ways of the company to have a strong control on
the business itself and its performance in the market:
Has a consistent monitoring of performance from every department
particularly to the production team and marketing department. Supervises constantly services provided by the selling store where the
product is located.
Provides a clear and apparent financial report.
Monitors how the competition plays in the battlefield.
Directs properly the pricing policy.