CHAPTER 2

MARKETING PLAN

This study will involve the process of gathering information about a potential market that

can be used in deciding what strategies would help the company yield maximum profitability,

and how the product is designed, delivered, priced and marketed. This will determine the current

demand and supply for the proposed product and identify the unattended demands that will

determine the company’s market share. Furthermore, this portion will also discuss the current

market analysis and the anticipated future market potential, the existing competitors, consumers,

opportunities and the competitive edge of the company.

I. Target market

Target market is a group of customers that Carbon Plus Corporation has decided to aim

its marketing efforts and its merchandise. They are customers who are likely to buy the product,

meaning, they are interested in the product, have all the resources to purchase it, and is allowed

by the law and other regulations to acquire the product. Carbon Pus Corporation’s target market

are businesses who manufacture and/or need activated carbon in their operation, environmental

advocates who adheres to a greener environment, medical institutions who aim to innovate their

products, legal and forensic institutions who in the course of their work, plans to operate

efficiently and all other sectors, be it public or private, that has the objective to decontaminate

polluted matters.

Carbon Plus Corp. targets those businesses or organizations that need activated carbon as

a part of their operation to clean and detoxify their products before selling it out to the market.

Since Activated carbon is more likely to be used by those who manufacturers, Carbon Plus Corp.

aim to reach those manufacturers especially those areas within and near the vicinity of Quezon.

However as the product popularity increases, the company will consider further expansion of the

market and the business operation. Gradual expansions in region 4, nationwide and even in

international market are considered by the company.

Specifically, the corporation will cater to both big manufacturers and small or medium

enterprises. Big manufacturers such as those in the field of food and beverage manufacture,

automobile manufacture, mining and agricultural industries use a humungous amount of

activated carbon. Small or medium enterprises on the other hand such as water refilling stations,

hospitals, chemists and medical enthusiasts, and the like needs activated carbon in their day to

day operation. Since there are still no manufacturer of activated carbon in Quezon, we can help

these enterprise in lowering their cost, thus, a direct market is built.

Generally, activated carbon caters to businesses such as, but not limited to the following:

1. Gasoline/fuel recovery

2. Automobile

3. Whisky distilment

4. Tobacco industry

5. Hospitals

6. Pharmaceutical use

7. Makers of refrigerators

8. Sugar refinement

9. Water refilling stations

10. Drinking water treatments

11. Factory waste disposers

12. Perfume industry

13. Gold Recovery

14. Personal household use

II. Market Size

Quezon

Quezon is a province of the Philippines in the

CALABARZON region. It is the 8th largest province in

the Philippines. Quezon Province is bounded on the

north by the province of Aurora, on the west by the

provinces of Laguna and Rizal, on the southwest by the

province of Batangas and on the southeast by

Camarines Norte and Camarines Sur.

Agriculture, Fishing, Eco-tourism and

Food processing are the major industries in

Quezon. Thus, there are 2896 kinds of industries

in Quezon.

Quezon is the country's leading producer of coconut products such as coconut

oil and copra. A large part of the province is covered in coconut plantations. Other major

crops are rice, corn, banana, and coffee. Fishing is also a large part of the province's

economy.1

Moreover, the Quezon has a vast industrial growth and the corporation sees a

large need for a manufacturing site of activated carbon in Quezon so as to help various

industries in it. Carbon Plus Corp. believes that Quezon is a significant province that will

suit the business operations well and will help the business grow its integrity as globally

competitive through the course of having a business in Quezon.

Fig.2.1 Province of Quezon

Quezon is subdivided into 39 municipalities divided into four districts as follows:

First District

City/Municipality

No. ofBaranga

ys

Area(km²)

Population

(2007)

Burdeos 14 199.8 23,568

General Nakar 19 1344.8 24,895

Infanta 36 342.8 60,346

Jomalig 5 56.7 6,111

Lucban 32 130.5 45,616

Mauban 40 416 55,866

Pagbilao 27 171 62,561

Panukulan 12 226.6 11,968

Patnanungan 6 139.2 12,825

Polillo 20 253 27,912

Real 17 563.9 33,073

Sampaloc 14 104.8 13,534

Tayabas City 66 231 87,252

Table 2.1 First District of Quezon

Second District

City/Municipality

No. ofBaranga

ys

Area(km²)

Population

(2007)

Candelaria 25 129.1 105,997

Dolores 16 62.6 26,312

Lucena City 33 80.2 236,390

San Antonio 20 172.9 30,023

Sariaya 43 212.2 128,248

Tiaong 31 168.4 87,707

Table 2.2 Second District of Quezon

Third District

City/Municipality

No. ofBaranga

ys

Area(km²

)

Population

(2007)

Agdangan 12 31.5 11,164

Buenavista 37 161.4 24,798

Catanauan 46 253.1 65,705

General Luna 27 101 23,379

Mulanay 28 420 48,538

Padre Burgos 22 69.1 19,877

Pitogo 39 73.4 21,095

San Andres 7 61 29,216

San Francisco 16 304 53,286

San Narciso 24 263.6 39,828

Unisan 36 124.2 23,600

Macalelon 30120.4

525,986

Table 2.3 Third District of Quezon

Market ShareRatio =

Fourth District

City/Municipality

No. ofBaranga

ys

Area(km²)

Population

(2007)

Alabat 19 57.6 14,789

Atimonan 42 239.7 59,157

Calauag 90 324.7 69,475

Guinayangan 55 214.1 39,074

Gumaca 59 189.7 63,778

Lopez 95 355.4 86,660

Perez 14 57.5 11,022

Plaridel 9 35.1 10,069

Quezon 24 71.2 15,011

Tagkawayan 45 534.4 46,878

Table 2.4 Fourth District of Quezon

III. Market Share

The market share ratio will compute the market share of the company. This will

determine the annual budgeted supply to meet the annual market demand of the product. Other

factors to be considered in meeting the annual market demand are production capacity, demand

of the market, competitors, product, etc.

For the market share computation, the formula below will be used to determine the

market share ratio:

Carbon Plus Corp. do not have any direct competitor when it comes to Quezon for no

manufacturer of activated carbon is planted in Quezon. But we do have indirect competitors like

MAPECON headquartered in Laguna. MAPECON in Laguna is one of the toughest competitors

when Carbon Plus Corp. venture to CALABARZON for they already have the loyalty coming

from their customers. But as soon as businesses are informed of a manufacturer in Quezon, they

will shift to Quezon’s Carbon Plus Corp. to cut off cost.

Annual Supply of the Competitors + Annual Supply of the Company

Annual Supply of the Company

But still, it is not safe to assume a100% market share in Quezon. Factors such as

company loyalty and incentives are given a great deal making our market share a bit lower than

100% but higher than 75%.

In the course of the business operation, as the business mature and the integrity and

reliability of products are built, we expect a higher demand on the market in Quezon and nearby

areas.1

Market Share Ratio

Carbon Plus Corp

Competitors

Fig. 2.2 Market Share of Carbon Plus Corporation

IV. Demand

Demand is the consumer’s willingness and capacity to buy goods or services at a certain

price level. It refers to how much (quantity) product or service is desired by consumers. The

demand would tell the company the consumer’s taste and preferences for a given type of product.

Thus, to be able to meet the needs and wants of the company’s target market, there is a need to

project the market demand. And with that, it would make the firm more effective to its market.

Number of Water Refilling Stations in Quezon Province 2010-2012

Year Number of Refilling Stations

Increase % of Increase

2010 75 - -

2011 143 68 91%

2012 205 62 43%

Table 2.5 Number of Water Refilling Stations in Quezon Province 2010-2012

Table 2.1 shows the number of water refilling stations in Quezon Province from year

2010 to 2012. This data gathered by the researchers would be the basis to project the number of

water refilling stations in Quezon Province for the next five (5) years.

Projected Number of Refilling Stations in Quezon Province 2013-2017

Year Number of Refilling Stations

Increase % of Increase

2013 252 47 23%

2014 228 23 11%

2015 267 15 6%

2016 260 8 3%

2017 270 3 1%

Table 2.6 Projected Number of Refilling Stations in Quezon Province 2013-2017

Annual Consumption of Activated Carbon by Water Refilling Stations

Activated Carbon used within 4 months 25 kilograms

Multiplied by 3

Annual Consumption 75 kilograms

Table 2.7 Annual Consumption of Activated Carbon by Water Refilling Stations

25 kilograms of activated carbon is used by water refilling stations in purifying water and

is replaced every 4 months. Thus, to compute the annual consumption 25 kilos of activated

carbon would be multiplied by 3 resulting to a consumption of 75 kilos a year.

Projected Annual Demand of Activated Carbon by Refilling Stations (kg) 2013-2017

Year Projected Number of Refilling Stations

Annual Consumption

Total Projected Demand (kg)

2013 252 75 18900

2014 228 75 17100

2015 267 75 20025

2016 260 75 19500

2017 270 75 20250

Table 2.8 Projected Annual Demand of Activated Carbon by Refilling Stations (kg) 2013-2017

From the table above, the total projected demand where determined by multiplying the

projected number of refilling station by the annual consumption. Thus, it results to the above

figures.

V. Supply

Supply is the quantity available in the market ready for consumption by the consumers.

It is the volume of the product or service in which a firm is able and willing to offer the market.

The supply of a company must meet the demands of the consumers. Thus, to project the supply

it must consider the demand and also, there are many factors affecting the supply of a firm.

Some of these are\ prices of inputs, number of firms offering the same product, technological

advancements, prices of related goods, environmental factors, and producer’s expectations. With

this, the company would use these factors to base its projected supply for the future years to

come.

List of Activated Carbon Manufacturers in the Philippines

Activated Carbon Manufacturers Address

MAPECON Green Charcoal Factory Alaminos, Laguna, Philippines

BF Industries, Inc. Crossing Bayabas, Toril, Davao, Philippines

Premium A.C. Corp.  Davao City, Philippines

Table 2.9 List of Activated Carbon Manufacturers in the Philippines

VI. Marketing Objective

Every year, there are approximately 19 storms entering the Philippine area, bringing

heavy rains and massive flash floods during land fall. It results to enormous reported cases of

contamination of water, whether for drinking or not, penetration of our households and vehicles

leaving stains and bad odor, pollution and clogging of some bodies of water and certain cases

about food poisoning, either due to contaminated foods or lack of foods leading victims to eat

whatever they thought was edible. This scenario has been witnessed by the Filipinos every now

and then, which leads to an unending demand for a purifying and deodorizing agent, giving way

to the role of the activated carbon.

The role of activated carbon doesn’t end in the absence of typhoons, and calamities. Due

to the increasing population here in the Philippines, demands for basic necessities increase as

well, some of such are water and medicines. In order to sustain the needs of drinking water,

there is a rapid growth of people venturing to water treatment and refilling businesses here in the

Philippines, which of course requires the use of activated carbon to remove the impurities, taste

and odor of the water. The need for the product never stops together with the need for purified

water to ensure the safety of mankind, which leads to a continuous opportunity for our company

to manufacture.

Carbon Plus Corporation aims to provide the market with sufficient amount of high

quality activated carbon as a response to the growing needs of the product such as to purify

substances that we consume, reduce pollution and maintenance of bodies of water and more, and

to maximize the full potential of the available opportunities, edge of the company, and the

profitability of the product without taking the environment, costs and the affordability of the

product for granted.

Provided that, the company started in a relatively small share in the market, we are

consistently building our company with integrity, trust, and competence to be on the top of the

local industry, then the global setup.

VII. Marketing Strategy

Carbon Plus Corporation uses the four Ps in business: product, price, place and

promotion as a tool in marketing its product.

A. Product

Carbon Plus Corporation will make use of coconut shells in manufacturing its

product, activated carbon. Coconut shell is the best material to be used in manufacturing

activated carbon for it has the inherent characteristics which give it an edge among other

materials.

The company ensures the product’s high surface area for high adsorption

efficiency and high micro porosity which gives high retention capacity. Also, the

company manufactures activated carbon with low ash content preventing contamination

of adsorbates and with high density for economical containment for the same level of

filtration. Thus, trapping high levels of impurities and resulting into a much purified and

cleaner adsorbate.

1. Product Brand

The product would be named as “Carbon Plus” which is also the company

name. The name of the product and the company is the same for easy remembrance

and to link the two.

Carbon Plus was derived from the process of making activated carbon for

there is a need to add other chemical properties unto the carbon for it to become

activated but it still remain as a carbon. Also, “plus” connotes the idea of “something

more” which implies that the product has an edge among other similar products.

Company Details Product Description

Thus, entails the impression that Carbon Plus has more adsorbing and purifying

capacity.

2. Packaging

Packaging is not just a design but it also serves as an advertisement of the

product. It gives a distinct identity of the product regarding its brand, size and type.

Fig. 2.3 Package Label of Carbon Plus Corporation’s Activated Carbon

The label provides the company details such as the company name, address,

contact numbers and company site. Also, the label describes the product as to its type

and weight to distinguish it among other types. Plus, it tells the consumers that it is

made from coconut shells, the best material to manufacture activated carbon.

B. Price

Carbon Plus Corporation offers activated carbon at affordable and meaningful

prices but still provides the quality the customers deserve.

The company will make use of the Cost-Plus Strategy in pricing the product. The

Cost-Plus Strategy follows the formula:

Price per unit = Manufacturing Cost per unit + Mark-up

With this, the total cost of manufacturing the product plus the desired mark-up

would be the product’s selling price. Prices vary depending on the type and weight of the

product.

Manufacturer

Distributors

End-Users

C. Distribution Channels

The distribution channel is the path in which the product goes through for it to

reach the end users. A firm must supervise their product’s distribution and necessarily

determine if it reaches its consumers. Furthermore, each individual channel must

maintain a good communication to all other channels to be able to sustain the demand

and supply of the product in the market.

Carbon Plus Corporation established the channel of distribution below in order to

achieve the target market of the firm.

Fig. 2.4 Distribution Channel of Carbon Plus Corporation

As shown above, there are only three parties within the distribution channel: the

manufacturer, the distributor and the end-users. Unlike any other businesses, there is no

need for the use of retailers and wholesalers since our company engages within business

to business transaction. Thus, the product manufactured from the manufacturer, the

company, would be disseminated to the distributors and at the same time can sell its

product directly to end-users. When the products reached the distributors they would

now sell the product to the end-users.

Carbon Plus Corporation ensures the proper and safe distribution of the product

and preserving the product’s quality upon its distribution.

D. Promotion

In order to help the product make its way into the market, there is a need for

advertisements and promotions. Advertisements and promotions are a huge part in

marketing the product especially in the first years of the company’s operations.

Thus, Carbon Plus Corporation would use the following techniques in promoting

and advertising its product:

1. Newspaper advertisement.

Newspaper advertisement is one of the most common ways of advertising.

Most business ventures use newspapers as reference to the latest news and also to

identify new opportunities. Thus, using this type of advertisement is a good way in

communicating and promoting the company’s product not only is it less costly but

also there is no need for a certain time to deliver the message. It is readily available

at any time.

Carbon Plus Corporation would come up with an eye-catching advertisement

and include with it the business offerings and other necessary information about it.

2. Radio advertisement

Wherever we go, whether at school, offices or streets, we would hear radios

playing. Most people are fond of listening to the radio whether they are busy or

doing nothing at all. Thus, radio advertising would be of great help in promoting the

company’s product.

The company would create a catchy theme song and tag line to attract

listeners and would be aired on Amplitude Modulation (AM) and Frequency

Modulation (PM).

3. Create a Facebook Fan Page

Almost every person in the world uses social media sites such as twitter,

tumblr, multiply and most especially, facebook. Considering this huge opportunity,

the company would make use of this site for the people not only within Quezon nor

CALABARZON but also for the whole world to know the company and its

offerings. It’s greatly efficient and it does not even cost a centavo.

VIII. Competitive Position

Quezon Province is well known for its abundance in coconut supply which only takes

less than two months to harvest, ensuring Carbon Plus Corporation, being the first manufacturer

of activated carbon in the province, a bounty supply and to fully utilize the accessibility of

coconut shells, our raw materials the whole year round. Furthermore, it has been proven in our

study that activated carbon from coconut shells provides better adsorption capabilities compared

to other sources.

The company offers the product at an affordable price and made it available in small

quantities compared to other manufacturers who only provide the public with bulk amounts, in

order to suffice the need of the small entities requiring relatively small quantity of the product.

We have carefully taken into consideration these small entities since they mainly comprise the

unattended markets; our potential share. In addition to that, we are allowing them to achieve the

utmost effect they desired, while using a small amount to avoid wastage and excessive

expenditures. Furthermore, accessibility of our company to the target market also adds up to the

edge of our company among other manufacturers. Once the consumer knew that there is a more

accessible, affordable and more customer-oriented manufacturer, they would think practically.

Instead of carrying the burden of availing the products from international companies, which of

course would be more expensive, or even from local companies located far from their places,

they would choose to patronize our company which would not only help us to achieve our goals,

but also help them in terms of cost saving.

1. http://www.quezon.gov.ph/