MARKETING PLAN OF MAGAR DEPACHO.revised(FINAL) (3).docx

7/29/2019 MARKETING PLAN OF MAGAR DEPACHO.revised(FINAL) (3).docx

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Executive Summary

Sapphire wallet is a new variety of item that will be out in the market. The idea of having

a character wallet is what came up in our mind because of its uniqueness and the trending

characters that we thought will suit our customers taste. This new item is targeting to reach the

80% of the market size to teenagers. Our desire is to share in the market the creativity of our

company and to be able to serve a new type of wallet that can satisfy the whole market structure.

Another idea came to us that we must not focus on teenagers only; we provide different design,

colors of felt and materials that can match the ages and personality of adults instead. So that

there would be an opportunity for them to experience the trending item that we offer to market.

Hence, our product will surely be enjoyed by everyone. This wallet is not the typical wallet that

we used now a day, its very unique and it is made from a hard felt cloth and so it wont easily

absorb dirt.

The two days Marketing Bazaar was successfully ended, where the future marketer had

the opportunity to show their skills, and knowledge in handling a business. During the event

MAGAR de pacho successfully achieved their target sales. The company strictly followed what

is written in their Marketing Plan to make their work easy. MAGAR de pacho traded their

products to different location inside the campus of Holy Angel University to reach their target

market and to informed the people that they offered wallet that have unique designs that they can

avail at a lower price.

MAGAR de pacho was able to handle the flow of their operation, because they followed

the entire plan efficiently. They implement all activities with responsibility to make sure they

were in the right path in achieving their objectives competently that would bring the company on

the top of success.


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Situation Analysis

MAGAR de pacho is now operating on its third year in the field of business, the store has

been well received, and the selling now of our product is critical to its continued success and

future profitability because of the continuous increase in competition. The store offers a unique

and attractive item to the market that considering the design desire of our valuable customers

through the personalized items we offered. MAGAR de pacho is now on developing brand

positioning in the mind of consumer by offering our new product the Sapphire wallet which

made of quality materials. MAGAR de pacho will focus on its selection, accessibility of product,

design services, and competitive pricing. The marketing objective is to actively support

continued growth and profitability through effective implementation of the strategy.

Company Background

MAGAR de pacho was founded in year 2009 in the month of February by five college

girls who are fond of creating personalized gifts for their friends and families. Theyre more on

giving gifts personalized because they thought that it is more valuable to give a present to

someone which is personally done. With the desire to share their talent to others and to earn

money at the same time is what provokes them to establish a business. A business that produces

personalized items. The company was named after the founders; MAGAR is the acronym of the

founders which is Marielle, Amelia, Geneva, Angelyn and Regine. And adding the word de

pacho which is a Spanish word means shop. The month of February is the month where they

have decided to start theyre business because they grab the opportunity that the month February

is for couples and the concept that couples want to give an extraordinary gifts to special someone

in an extraordinary event.


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MAGAR de pacho is now operating on its third year in the industry. Purchase of goods is

in front of Holy Angel University which is our main retail store. Other stores are located in

different area of Pampanga. They also accept orders through phone calls or by visiting their

website.

Product History

High competition in producing similar to our product is the main reason why we came up

in the concept of developing a personalized items like Sapphire wallet because we realized if

dont execute innovation in our product there is a possibility that would yield a lower level of

demand in patronizing our product since the competition is continuing to escalate.

By doing brainstorming in the group, sharing of ideas and the creativity talent of our member we

actually able to make the idea concrete and furthermore by considering the changes in fondness

that we experienced when we buying, we luckily capable to formulate the thought more concrete.

Market Analysis

The rapid increase of high school and college student population by 30% higher compare

to the past school years who studying in the area Angeles City, it seems they are good to be our

focus target market that can generate positive impact to our company. These groups of people are

easy to attract by knowing their perception and behaviors in terms of buying especially the girls.

Competitive Analysis

Our direct competitors are the store located in Nepo mall who selling different kinds of

item for teenagers, and even though the competition is high where we operate we take it as a

opportunity to differentiate our product from other competitors instead of seeing it as a barriers

to our success. We decided to use felt cloth for Sapphire wallet that serve as advantages from the


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other kind of wallet because this cloth wont easily absorb dirt that can maintain the outer look of

our product attractive, and the different design that we have for our customers.

SWOT ANALYSIS

Strengths

Great retail space that offers flexibility with a positive and attractive atmosphere. Excellent and stable staff. High customer loyalty. Good qualities of materials used.

Weaknesses

Challenge for fast production of our item. Little access to capital. Location is not in a heavily travelled area.

Opportunities

Large number of producers like our product, allows more innovation opportunities Gives greater freedom for creativity in the design, distribution, promotion and retailing

choices and processes.

An opportunity to be able to satisfy the wants of our customers.Threats

Competition can easily increase by the other store with a greater financing. Once product resources enter the market it can be easily copied by other competitors. Competition of other product item like laptop case, bags, etc. with the same materials.


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OBJECTIVES

Marketing Objective

The marketing objectives of MAGAR de pacho are strategically to develop a unique and

attractive product that can offer in the market with the intention of creating a distinct

characteristic of product. To establish wide brand recognition through the capture of our target

market so as to create a diverse place in the mind of the market to enhance its brand positioning,

and to sell 300 units within the first 2 days of CBA event in the market compare to other

competitor with the aim of placing our company to become the top market leader in the

particular segment we operate.

Financial Objective

Achieving a double-digit growth rate for each future year is the main financial objective

of MAGAR de pacho. To realize a net profit of P6, 876.00 at the end of two days bazaar and to

able to reduce the overhead of our store through disciplined growth and keep on to decrease the

variable costs associated with personalized items production.


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Target Market

a) DemographicOur target markets are the high school and college students, typically ranging in age13 to

19 years old. Now a day, teens were fonder of having their thing as personalized because

of their uniqueness and attractiveness.

b) GeographicalOur target markets are students from Holy Angel University located in Sto. Rosario St.

Angeles City. All products are distributed through our different retail store located in the

area of Pampanga.

c) PsychographicBecause of the uniqueness of our product, customers may see it as an opportunity to give

their love ones a gift perfectly made for them. Another factor that customers may

perceive in our product is that they can have it as a collection because we have different

character designs.


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Marketing Strategies

Product Strategy

MAGAR de pacho is known of having high quality material and unique

personalized designs, which one of the secret assets to be able to attract

customers to patronize our items, and to achieve our desire target market share.

Having our own designs us able to generate a distinctive competitive advantage over to the other

competitors.

Description of the product

The product itself has its dominant and intricately designed in unique and attractive

product, made in felt cloth with different cartoon characters work at its attraction. The different

creative design is held in center of wallet, to give an appeal, yet it can be both masculine and

feminine look. Where in you can put cell phone, money or any small stuff. This elegant product

can place anywhere at your bag or pocket. The pouches wallet has latching lids to keep stuff and

cell phone organized and makes them easy to store.

Product Quality

Sapphire wallet is actually made with felt cloth which is in compliance with the sewing

machine to ensure high quality of our items. We provide our products with durable and

qualitative at reasonable prices. To ensure that each and every requirement of the product is

being met we doubled the stitches to guarantee the durability.


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Product level

Core Benefit

Customer can use it as wallet It can be a coin purse It can serve as a cell phone case also

Basic product

Unique designsExpected product

Customers can expect that our product is durable It has complete packaging

Augmented product

There is a freebies once a customer purchase at least 2 wallet Distinctive designs compared to competitors

Potential product

Creating much affordable product and providing more unique designs. More durable products for the future.

Brand name

Magar de pacho came with distinctive brand name which is sapphire. Sapphire is a Latin

word meaning most beautiful of things. We believe that our brand name represent our products

on how the beauty and unique of it. By this name we believe that it can catch the attention of the

customer.


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Packaging

Package our product with clear ordinary plastic that

has our logo outside the plastic. It can easily to store and get

the product and can protect from possible damages. Our

package has convey what this product is about and the brand

constantly look to use packaging in new and unique marketing ways that serves to us to use in

powerful selling tool.

Label

Our wallet is made up from a cloth called felt cloth.

Felt cloth doesnt easily absorb dirt and it has variety of

colors to make it colorful and

attractive. Every wallet is

designed with different characters and we also have a collective

wallet. The collective wallet is designed with different shade of

ribbon and buttons.


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Pricing Strategy

MAGAR de pacho is well known in producing variety of wallet like sapphire and

character wallet which has distinct characteristic compare to the other producers. Sapphire wallet

will cost for P40 and if you are the 50 first buyers who buy two you can get a free one. And P50

for our character wallet which is really affordable whoever patronize. Our company is not

concern with setting high prices to gain high profit, but to achieve our goal by setting low prices

but with high qualities of our product, so that our customer will satisfy.

Magar de pacho is actually using maximum market share pricing strategy because we

believe that if we able to produce higher production level it would lead it to generate much lower

cost in terms of production. In this strategy we will able to sell our product in a lower price but

with higher value that can surely benefit our customers.

COST OF PRODUCTION

Raw material

25 yards of felt cloth P3,048.00 Cannon CRCHT 175m 135.00 48 yards ribbon 344.00 300pcs. Assorted buttons 250.00 Packaging 150.00 Logo printing 180.00 DMC CRCHT 51.00 Moving Eyes 30.00 Needle Pagoda 10.00 Folder Pattern 76.00

Total Cost(Raw materials) P4,274.00

Labor Cost of Collective wallet (P10 per unit) 1,000.00Labor Cost of Character wallet (P15 per unit) 3,000.00

Total Cost P8,274.00

Unit Cost (P8, 274.00 / 300 Pieces) = P27.58

Markup Pricing

Collective wallet (27.58 x 1.47%) = P40.00

Character wallet (27.58 x 1.80%) = P50.00


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Distribution Strategies PlaceSapphire wallet will be distributed through independent retail store. Our store is located

in front of Holy Angel University where we can reach our customer specially the students

studying there particularly the teenagers high school and college student.

Our customer will surely enjoy visiting the location of MAGAR de pacho because of its

designed that we based in the perception of teenagers about the colors, and designs that can

normally attract their eyes and providing a large space that suitable for them when they visit our

store.

We also accepting phone orders (0935-423-0534 or 045 332-4358) and they can avail our

product by placing their order through the use of internet by visiting our website

(MAGARdepacho.com).

Promotional Strategies

Through direct selling to promote the uniqueness of our product is the first strategy that

we will going to use to advertise our product in the market, and by using the internet to broadcast

to the worldwide our creation, by tarpaulin so that customers may see our very unique creation,

and lastly by going to our website that giving information about our company, the product we

offer, the process how to avail our items, and the available promo that we have like giving a free

limited little wallet for those first 50 person who can buy 2 pieces of our items.

Use of sample which would be distributed in school/universities and supermarket that

give a chance to avail our product in a lower price to able to know the reaction of our customer

in terms of the design, colors, and materials we used to hear their suggestion and comment.


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Control

When in the actual bazaar and unfortunately we been not able to attract a lot of customer

to purchase our product, then we will be deciding to do price decrease of 30% for the Collective

Wallet which is from P40.00 to P35.00 and another 30% also for the Character Wallet which is

from P50.00 to P40.00 until to the extent we dont earn net loss.

If after the bazaar we were not able to sell all our products and since our product is not a

food we will sell it outside the campus so that we will able to get back the capital we spend and

to prevent losses in our part.


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Timetable of Activities

DATE ACTIVITIES PERSON IN

CHARGE

July 27, 2012 Product conceptualization The Group

August 22, 2012 Product sampling The Group

August 29,2012 Procurement of raw

materials

Angie and Marielle

September 4, 2012 Submission of 1st

draft,

part I

The Group

September 2-10, 2012 Production of products The Group

September 13-14,2012 Bazaar The Group


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Financials Part I

Projected Income Statement for Sept 13-14, 2012

SALES

Character wallet (150pcs x 50)

Collective wallet (150pcs x 40)

P7,500

6,000

COST OF GOODS SOLD ( 300pcs x 21.71) 6,513

PROFIT P 6,987

LESS: EXPENSES

ADVERTISING EXP (TARP) 250

TRANSPORATATION EXP 150

MISCELLANEOUS EXP (OTHERS) 250

NET PROFIT P 6,337


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IMPLEMENTATION

Product

In the actual bazaar we absolutely complied with the specification of the product based

on what we write in our marketing plan to make our work easy, so that we can properly handle

the flow of our operation. During the event, our customers usually asked if we really made our

product, and although we have competitor who offered same product in the bazaar we were able

to captured our target market because of the several unique designs that we have. Buyers were

focused on product quality, price, and different product designs which made us an asset for our

goods to be sold promptly and we can declare that these things helps a lot to catch the attention

of the potential buyers that our prospect.

Price

Consumers' opinion about pricing is important for us as it indicates how they value what

they are looking for as well as what they want to pay. Our group decided to set our price based

on the survey we took, which are Php40 and Php50. On our first day we followed the price

indicated in the plan but during second day when we only having 2 hours left to sell our product

we decided to offered buy two and get one free, and then buy1 take1, since we all know that we

already achieved our target sales of P 10,000 two days and because we want to achieve our goal

to sell all our product before the two days period given by our professor. The group decided to

make some adjustment on our pricing strategy that persuaded the market to buy more because of

our low price, thats why our products were all sold.


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Place

During the two days bazaar we not only traded our product in the designated venue that

they assigned, we decided to distribute our products in different locations inside the campus of

Holy Angel University like in yellow canteen, pre-elem building, and in smh building where the

high school are so that we can reach our target market. And it became more advantaged for our

group to offered directly our product to customer than to wait to the customer to visit our booth

because in that way we able to informed the people there that dont want to go outside their room

that we offered wallet that have unique designs that they can avail at a lower price. Getting the

right product to the right place at the right time create perfect distribution for us.

Promotion

Magar de pacho offer a freebie for the first 50 buyers which serve as an advantage to

promote the product. It is our primary selling tool to accomplish our target aim. We also offer

Buy One Get One Free where customers were encouraged to buy more; we decided to do it in

our second day because in that time we were only having 2 hours left to sell our product and

since we all know that we already attained our target sales for two days of P 10,000. We post our

tarpaulin a day before in different location, it is our way to aware of the existence and

availability of the product. Our promotional strategy provides information that assists the

customers in making a decision to purchase our product. Though increased promotional activity

is often a sign of a response to a problem such as competitive activity, it enables our group to

develop and build up a succession.


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Learnings

Marketing Bazaar was an amazing way to learn the real experience of being marketers for

two days. With that event we were able to learn how to handle a business, how to use the

different tactics in pricing and the most important is how to deal with our customers properly.

We learned that business is all about managing your goods, taking care of your responsibility and

the most important the accountability at the end of the bazaar. Through bazaar we also learned

that earning money is not as easy as we expected. It is full of risk and as a team we experienced

it because during the bazaar we have to promote our product and weve had a hard time doing it

since before we dont really knew how to communicate our product to our target market. Before

we were just customers and ignore the vendors in some malls, and now we are the one to do it

and it feels like we are embarrassed because this time we are the one being ignored. From then

we realize that we must appreciate the work of the sales ladies because its not that easy.

As a group we need to improve our communication skills and improve our product by

providing more personalized design and providing more freebies because the freebies is one

factor that attracts our customers, and we need more preparation in organizing our booth.

In order to reach our goals we need to follow our entire plan, and implement each activity

with responsibility to be able to make sure that we can achieve our objectives in the right way.


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Recommendation

Entering the industry is the feeling of anxious and excitement at the same time. Anxious

because you feel like the product that you offer in the market might not hit it off and youll go

home very exhausted yet the products were not sold out. Excitement because the fact that it is the

first time that we manage our own business and we produced our own product. While we were in

the industry we dont mind what other people say, whether we are very aggressive to earn money

or whatever. The thing is that you enter the industry and you have the opportunity to give all the

best that you can, so grab it! Cause at the end of the day when you didnt do it all, youll be the

one to suffer because you were not able to practice it before. Another thing is that be kind to your

customers, as the same saying goes customers are always right treat customers like kings and

queens. If they have some demands let it be, because they are your primary stakeholders and they

can have a big impact on your organization or team. And as a manager you have to be optimistic!

Whatever plan you have in mind, you have to think that it will buzz to your customers dont ever

think that it wont cause there can be a psychological effect on you and your product. Dont ever

let negative vibes come in.


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Financial Part II

Income Statement for Sept 13-14, 2012


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MAGAR de pacho attained the total sales of P12, 480 during the 2 day bazaar, which the

company was successfully achieved their projected sales of P10, 000. The company totally spent

P 650 for the advertising, transportation, and miscellaneous expenses in launching the product

during the Marketing Bazaar and generates a net profit P 5, 317 at the end of the event.

SALES (character/collective wallet) P 12,480

COST OF GOODS SOLD (300x21.71) 6,513

PROFIT 5,967

LESS EXPENSES

ADVERTISING EXP (TARP) 250

TRANSPORTATION EXP 150

MISCELLANEOUS EXP 250

NET PROFIT P5,317


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TARGET SALES PER MONTH

Of Character Wallet

Month PROBABILITY

(%)

QUANTITY

(PCS)

PRICE (P) SALES/MONTH

(P)

JANUARY 150% 6750 50 337,500.00

FEBRUARY 200% 9000 50 450,000.00

MARCH 100% 4500 50 225,000.00

APRIL 100% 4500 50 225,000.00

MAY 100% 4500 50 225,000.00

JUNE 100% 4500 50 225,000.00

JULY 100% 4500 50 225,000.00

AUGUST 100% 4500 50 225,000.00

SEPTEMBER *100% 4500 50 225,000.00

OCTOBER 100% 4500 50 225,000.00

NOVEMBER 100% 4500 50 225,000.00

DECEMBER 200% 9000 50 450,000.00

TOTAL PhP3,262,500.00


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TARGET SALES PER MONTH

Of Collective Wallet

Month PROBABILITY(%)

QUANTITY(PCS)

PRICE(P)

SALES/MONTH (P)

JANUARY 150% 6750 40 270,000.00

FEBRUARY 200% 9000 40 360,000.00


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MAGAR de pacho launch its product in the market at the month of September which has 100%

probability of sales, with the total quantity of 9000 pieces combination of collective and

character wallet. In the month of December the company probability increases to 200% due to

the people who are starting to buy Christmas gifts for their family and friends. Followed by

150% at the month of January and then 200% again at the month of heart February, while for the

ordinary months the company have as a minimum 100% probability of the product.

MARCH 100% 4500 40 180,000.00

APRIL 100% 4500 40 180,000.00

MAY 100% 4500 40 180,000.00

JUNE 100% 4500 40 180,000.00

JULY 100% 4500 40 180,000.00

AUGUST 100% 4500 40 180,000.00

SEPTEMBER *100% 4500 40 180,000.00

OCTOBER 100% 4500 40 180,000.00

NOVEMBER 100% 4500 40 180,000.00

DECEMBER 200% 9000 40 360,000.00

TOTAL PhP2,610,000.00

Projected Income Statement for the year ended 2013

SALES

Character wallet

Collective wallet

P3,262,500

2,610,000

COST OF GOODS SOLD (43.42% of Sales) 2,549,839.5


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The projected sales of MAGAR de pacho for the year of 2013 are P 3,262,500 while the cost of

goods sold is 43.42% of sales. The company total expenditures for the year ended are P 437,925

consisting of rental, advertising, transportation, miscellaneous, and salaries expense. MAGAR de

pacho projected income for one year operation is P 2,884,735.5.

PROFIT P 3,322,660.5

LESS: EXPENSES

RENT EXP (6000/month) 72,000

ADVERTISING EXP (1% of Sales) 58,725

TRANSPORATATION EXP (600/month) 7,200

MISCELLANEOUS EXP (OTHERS) 12,000

SALARIES AND WAGES (24,000/month) 288,000

NET PROFIT BEFORE TAXES P 2,884,735.5

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MARKETING PLAN OF MAGAR DEPACHO.revised(FINAL) (3).docx

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