Marketing Aspect Example

8/19/2019 Marketing Aspect Example

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THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

Cocube Chocolate Drink 1

MARKETING

ASPECT


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MARKETING ASPECT

A Marketing aspect determines the suitability of property for profitable development of a business and define

optimal products and amenities in accordance with projected market demand.

I. The Company and its Location

Third Power Manufacturing and Distribution Inc. decided to allocate its plant in Namayan,

Mandaluyong City, Metro Manila. It has an area of 1,400 sq. meters. The designated location is chosen because it

is wide and suitable for a manufacturing plant and warehousing. It is also accessible in main commercial districts.

The city lies in the heart of Metro Manila and is the 18 th largest metropolitan area in the world. The city is said to be

fast progressing due to urbanization and modernization.

MARKETING, Figure 1, Third Power Manufacturing and Distribution Inc. Location Site


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II. Product

PRODUCT NAME: Cocube

PRODUCT DESCRIPTION:

Cocube is a soluble chocolate drink molded in a cube shape that weigh 12.5 grams each . It’s a

ready-to-go kind of drink which can solute same with hot and cold water. Cocube is a combined pro-health and

energy drink. Cocube is made of pure cacao, oats and skimmed milk. Cocoa is composed of flavonoids which

acts as an antioxidants. Antioxidants is one of the body’s defense for free radicals. Cocoa helps reduce the risk of

heart attack and stroke, reduce the risk of high blood pressure and even the risk of cancer. Cocoa is also rich in

minerals like iron, magnesium, manganese, zinc and others.

Oats are rich in protein and dietary fibers which helps boost the immune system. It is also rich in

magnesium, iron and zinc. And skimmed milk can provide all the nutrients needed of a milk without the added fat

and is rich in minerals and vitamins. Skimmed milk is also a good source of calcium and high in protein.

MARKETING, Figure 2, 3 pieces of Cocubes

PRODUCT PROPERTIES

Appearance Health Nutrients Packaging Taste Cost

-It is a cube-like shape

drink, mixed with oatmeal

for a full boost energy.

-Dark brown colored foremphasizing the pure

cacao ingredient.

-All ingredients are

especially chosen

because of their

nutrient componentswhich will help the

consumers to assure

their health safety.

- 2 Cocubes is pack

in a pouch made

with cellophane.

Each pouch with 2cocubes weigh 25

grams. The Box

contains 48 pouch of

cocubes.

-Cocube is a

chocolate drink that

will satisfy the

consumer’s cravingswith enough taste of

chocolate drink mixed

with milk and

oatmeal.

-Cocube is

affordable despite

of the complete

supplements that itcan give to supply

the nutrients the

consumer ’s need.

MARKETING, Table 1: Product Properties


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III. Industrial Analysis

INDUSTRY OVERVIEW

The Philippine tablea is defined as roasted, ground and molded nibs of fermented pure (100%)

cacao beans without added ingredients and additives. It is also a cocoa mass and cocoa liquor made from cacao

beans that are fermented, dried, roasted, ground then molded into blocks, balls, discs, or tablets.

It is traditionally used in the Philippines to make a hot chocolate beverage using a wooden mixing

implement or stirrer. The Cacao Industry Development Association of Mindanao estimated that around 2,000 tons

of cacao beans is processed to tablea.

The industry is composed mostly of smallholder farmers who supply dry cacao beans to the

processors/manufacturers. Manufacturers are mostly small to medium scale enterprises. Some of the larger players

are also into cocoa powder and cocoa butter.

The country exports and imports cocoa and cocoa products which includes chocolate

confectionery containing cocoa in various forms and sizes, other food preparations containing cocoa in various

forms and sizes, other than chocolate confectionery containing cocoa in various forms and sizes, and other than

chocolate confectionery containing cocoa in tablets or pastilles. The market opportunities for tablea and cocoa

products is growing, as there is an increasing number of cafes and restaurants offering chocolate drinks. Moreover,

the trend towards wellness and a healthy lifestyle is seen as another opportunity for cocoa, as it is being positioned

and marketed as a health food given its natural contents and health benefits. It is projected that by 2020, there is

an additional one million tons of cacao needed to meet global demand, while an additional 30,000 tons are

needed to meet local demand. As such, cacao growers and cocoa manufacturers in the country are well-

positioned to translate these market opportunities into a profitable reality.

The proponents thought of a new idea in transforming the cocoa tableau into a shape that people

will get fond of. In Korea, sugars are formed into different shapes but they mostly preferred a 3 dimensional shape

which is a cube. So the proponents found out that it was a unique idea to use in producing a chocolate drink in a

different form from the taste of the Filipino people they crave for but with a twist , since sugar and other powdered

beverages are easy to solute in water that ran through the right process.

IV. Target Market Analysis

A target market is group of consumers that the business has decided to aim its marketing efforts and

ultimately the product itself. A well-defined target market is the first element to a marketing strategy.

The TPMDI plant and warehouse site is located in Namayan, Mandaluyong City of 1,400 sq. meters.

The households located along with the commercial districts of the 25 km radius from Mandaluyong and itself are

the target market. It will serve as the basis for the needed respondents. Locations that belong to the 25 km radius

from our plant location are NCR, Bulacan, Cavite, Laguna and Rizal. The data are gathered from the survey

conducted by the proponents.


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TPMDI target market concentrate on a particular bracket specification of potential customers. It is produced for

both male and female aging 12 years old up to 65 years old. The products will be distributed in supermarket and

public market of selected municipalities of Laguna, Cavite, Rizal and Bulacan along with NCR.

MARKETING, Figure 3, Target Market Map

V. Market Segmentation

Market segmentation is the breakdown of a large market portion into segments that identifies the needs, wants

and demand characteristics of the market. It aims to identify and design a market trend that will be present and

meet the expectations of the consumers to satisfy their cravings of a desirable.

Market Consumers Segmentation Factors/ Variables Variables Breakdown

- Location of the

Target Market

- Geographic

Segmentation

Region Bulacan, Cavite, Laguna, Rizal

NCR is the center of

culture, economy,

education and

government of the

Philippines and it is the

most populous region of

the Philippines

Population

Density

-As of 2010, total population

of

NCR: 11, 855, 975

Bulacan: 2,924, 433

Cavite: 3,090, 691

The population of the

said areas composed of

maximum numbers of

households


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Laguna: 2, 669, 847

Rizal: 2,298, 691

DemographicSegmentation

Age 12 to 65 years old

Capable of drinking

chocolate that won’t

affect their health likediabetes for drinking

sweet beverages

Gender Male and female

Both gender can

consume the product

Behavioral

Segmentation

Usage

Rate Non- seasonal

It is non-seasonal, usually

every day you drink

chocolate for breakfast,

snack and etc. Usage

rate is high

Usage

Status

Common

The product is usually

consumed by end-users

mostly every day.

MARKETING, Table 2: Segmentation Variables and Breakdowns for the customers of the Cocube Chocolate Drink

VI. Customer Analysis

CUSTOMER ANALYSIS

A customer analysis is the process of collecting and evaluating of data from a customer behavior

which helps in making key business decisions. It is a critical section of a company’s business or marketing plan. It

defines the target consumers, their needs and how the product can satisfies these consumers.

WILLINGNESS TO USE THE PRODUCT

The target market total population is 14, 432,594. The researchers have conducted the survey from

the 400 respondents from the target market. According to the survey, 91% or 364 of the respondents are going to

patronize the product while 9% or 36 of them are not.


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MARKETING, Diagram 1: Percentage of the Willingness of the respondents to buy the product.

MARKETING, Diagram 2: Percentage of How much the respondents are willing to spend to buy the product.

VII. Competitor Analysis

Competitor analysis in marketing and strategic management is an assessment of the strengths and

weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic

context to identify opportunities and threats. Profiling coalesces all of the relevant sources of competitor analysis

into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and

adjustment.

Competitor analysis is an essential component of corporate strategy. It is argued that most firms donot conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called

“informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every

manag er continually receives.” As a result, traditional environmental scanning places many firms at risk of

dangerous competitive blind spots due to a lack of robust competitor analysis .

A. NESTLE PHILIPPINES INC.

Nestlé Philippines, Inc. is a nutrition, health, and wellness company. The company provides food

products and beverages. It offers dairy health and nutrition solutions, coffee, beverages, liquid beverages and dairy

6-15 php, 15%,15%

16-25 php,20%, 19%

26-35 php,23%, 23%

36-45 php,38%, 38%

Others, 5%, 5%

YES,91%,91%

NO, 9%,9%


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culinary, ice cream, chilled dairy products, breakfast cereals, confectionery products, infant nutrition products, pet

care products, and healthcare nutrition products. The company was formerly known as Filipro, Inc. and changed

its name to Nestlé Philippines, Inc. in 1986. The company is based in Makati City, the Philippines. Nestlé Philippines,

Inc. operates as a subsidiary of Nestlé S.A.

B. TRIDHARMA MARKETING CORPORATION PHILIPPINES

Tridharma Marketing Corporation (TMC) is a member of the TAO Community of Companies, one of

the Philippines’ premier holding companies focused on supply chain services. TAO has grown to become a multi-

billion peso corporation with its core businesses ranging from consumer brands distribution, logistics management,

marketing and commodity trading.

Under its consumer brands distribution business is TriDharma Marketing Corporation, which is the first

national distribution company of TAO. Established in 2006, TMC has fast become the exclusive national distributorof various multinational and local products.

PT Mayora appointed TMC as the exclusive national distributor in the Philippines in November 2005.

Product lines are Kopiko and Fres confectionaries, Kopiko Black coffee, Kopiko Brown Coffee, Kopiko Candies, Fres

Candy and Energen Cereal Drink. PT Mayora experienced momentous growth in its sales when it forged partnership

with TMC. Its success is a good subject of case study on a small unknown brand becoming a part of Filipino life.

C. AB FOOD AND BEVERAGES PHILS. INC.

Associated British Foods is a diversified international food, ingredients and retail group with sales of £6.8 billion

and over 85,000 employees in 43 countries. The group is one of Europe's largest food companies with a wide range

of successful brands and products in the food sector. It is also a significant supplier of branded and non-branded

grocery products and a leading textile retailer. In the Philippines, the company is known as AB Food & Beverages

Phils Inc. Our mission is to provide quality, distinctive and successful food & beverage brands that enhance the

quality of life and delight our consumers. There are 2 main brands in the Philippine portfolio - Ovaltine and Twinings.

Ovaltine is a delicious choco malt drink that has the unique Activ8 formula with Mind-enhancers (Iron,

Iodine, Folic Acid & Zinc) to help children become smart so they can do well in school and everyday situations. With

over 100 years expertise, Ovaltine has always maintained high quality standards in offering superior nutrition to its

consumers. Twinings is a premium tea brand with more than 300 years experienced in superior tea blending. From

classic black brews, flavored fruit blends, relaxing green teas, to zesty Infusions. Twinings wide range of flavors never

fails to enhance the taste, mood and soul of every moment.

D. COMMONWEALTH FOODS, INC.

COMMONWEALTH FOODS INC. Formed by the conglomeration of three pioneering food-manufacturing

companies, which were merged on September 30, 1968. – Filipinas Biscuit Corporation – Philippine Food Industries

– Commonwealth Foods, Inc. Formed by the conglomeration of three pioneering food-manufacturing companies,


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which were merged on September 30, 1968. – Filipinas Biscuit Corporation – Philippine Food Industries –

Commonwealth Foods, Inc.

The Cofi Division (Roasted and Instant Coffee products) Organized in January 21, 1951 and commenced

production of roasted ground coffee in 1952 in its own plant in Makati, Rizal. Put up the first instant and soluble

coffee manufacturing plant in the country and in Asia in 1956. Organized in January 21, 1951 and commencedproduction of roasted ground coffee in 1952 in its own plant in Makati, Rizal. Put up the first instant and soluble

coffee manufacturing plant in the country and in Asia in 1956.

The Philfood Division (Cocoa and Chocolate products) Began operations in October 1956. First entity

in the Philippines to venture into cocoa and chocolate processing from its plant located at EDSA, Mandaluyong

City Umbrella brand name “RICOA” Exporting Cocoa butter since 1956 to major users in US and Europe. Began

operations in October 1956. First entity in the Philippines to venture into cocoa and chocolate processing from its

plant located at EDSA, Mandaluyong City Umbrella brand name “RICOA” Exporting Cocoa butter since 1956 to

major users in US and Europe.

The Fibisco Division (Biscuit products) Organized in January 23, 1959and commenced production in 1960. Popularly known for its “English Quality Biscuits” Most of the items are

household names for both young and old. Organized in January 23, 1959 and commenced production in 1960.

Popularly known for its “English Quality Biscuits” Most of the items are household names for both young and old.

SWOT ANALYSIS OF COMPETITORS

SWOT diagram provides a good overall view of your business in a visual and concise manner. -Efficient use of

resources and improvement in operations. -Discovery of opportunities and management of possible risks. -

Competitive positioning.

A. NESTLE PHILIPPINES INC.

MARKETING, Figure 3, Nestle SWOT Analysis

B. TRIDHARMA MARKETING CORPORATION PHILIPPINES


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MARKETING, Figure 5, Energen SWOT Analysis

C. AB FOOD AND BEVERAGES PHILS, INC.

MARKETING, Figure 6 , Ovaltine SWOT Analysis

VIII. Market Share

A percentage of total sales volume in a market captured by a brand, product, or company. Market

share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over

the same period. This metric is used to give a general idea of the size of a company to its market and its competitors.


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MARKETING, Diagram 3, TPMDI Market Share

Chuckie 29.75%

Milo 14.87%

Ovaltine 7.44%

Ricoa 7.44%

Energen 14.87%

Cocube 25.63%

MARKETING, Table 5, Market Share

The market share is computed by dividing the production capacity over the total sum from the

competitors and TPMDI itself. From the diagram shown above, Third Power Manufacturing and Distribution Inc.

owned 26% of the market shares based on the total production capability of TPMDI.

IX. Demand Analysis

Demand analysis define and identify who’s going to patronize the product , how many they might buy

and how much they’re willing to spend for purchasing it and as well as the other factors in considering when acquiring

the product.Demand is an economic principle that describes a consumer’s desire and willingness to pay a price for

a specific good or service.

The demand to be considered to this study is the total numbers of population inside National Capital

Region, some part of Region 3 and 4-A. In order to determine the total demand of Cocube, survey was conducted to

the residents in the target market. The total number of respondent was calculated using the S loven’s formula.

30%

15%

7%

7%

15%

26%

arket Share

ChuckieMilo

Ovaltine

Ricoa

Energen

Cocube


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MARKETING, Table 6, Demand scheduling basis

Historical Demand

Historical demand is computed using two methods. The arithmetic straight l ine and statistical straight

line. The proponents used the two methods to identify the lowest standard deviation in order to compute the

market share.

1. Arithmetic Straight Line Method

HISTORICAL DEMAND VALUES

Year Y A + Yi-1 = Yc Y-Yc (Y-Yc)2

2011 13,690,327.56 + =

2012 14,413,175.96 722,848.00 + 13,690,327.56 = 14,413,175.56 0.40 0.16

2013 15,136,024.36 722,848.00 + 14,413,175.56 = 15,136,023.56 0.80 0.64

2014 15,858,872.26 722,848.00 + 15,136,023.56 = 15,858,871.56 0.70 0.49

2015 16,581,721.16 722,848.00 + 15,858,871.56 = 16,581,719.56 1.60 2.56

MARKETING, Figure 6, Historical Demand using Arithmetic Straight Line Method

2. Statistical Straight Line Method

MARKETING, Figure 7, Historical Demand using Statistical Straight Line Method

Year 2014

Respondent (n) 400

Total No. of Population (N) 4, 299, 863

Marginal Error 5%

Percentage of Willing to Try 91%

Percentage of Willing to Try with Marginal Error 86%

HISTORICAL DEMAND VALUES

Year Y X X2 XY a + b Yc Y-Yc (Y-Yc)2

2011 13,690,327.56 1 1 13,690,327.56 12,967,479.21 + 722,848.35 13,690,327.56 0.00 0

2012 14,413,175.96 2 4 28,826,351.92 12,967,479.21 + 722,848.35 14,413,175.91 0.05 0.0025

2013 15,136,024.36 3 9 45,408,073.08 12,967,479.21 + 722,848.35 15,136,024.26 0.10 0.01

2014 15,858,872.26 4 16 63,435,489.04 12,967,479.21 + 722,848.35 15,858,872.61 -0.35 0.1225

2015 16,581,721.16 5 25 82,908,605.80 12,967,479.21 + 722,848.35 16,581,720.96 0.20 0.04

total 75,680,121.30 15 55 234,268,847.40 0.175


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on demand for the goods and services it offers, compared to the cost of producing them. Forecasting alsoprovides an important benchmark for firms which have a long-term perspective of operations.

In order to get the forecasted demand, 2 methods were used. These are Arithmetic Straight Line Methodand Statistical Straight Line Method. The proponents used this two methods in order to get the market share bygetting the lowest standard deviation.

Compute the expected values, using this two methods:

A. Arithmetic Straight Line whereYc= initial value (1 st year)Yn= final value (last year)N= number of yearsYi= value for the year past

Yc= a+ Yi- 1 To find a:

a = −− B. Statistical Straight Line where

Yc= a+ bx +c To find a & b:

a= ∑ x b ∑ And

b= ∑ ∗ ∑ ∑∑ −(∑ )

Compute for the standard deviations of each method using theformula:

√ ∑( − )

NOTE : The method which yields the least standard deviation is likely to come upwith the best estimates.


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1. Forecasting Demand Using Arithmetic Straight Line Method

PROJECTED VALUES

Year A + Yi-1 = Yc

2016 722,848.00 + 16,581,719.56 = 17,304,567.56

2017 722,848.00 + 17,304,567.56 = 18,027,415.56

2018 722,848.00 + 18,027,415.56 = 18,750,263.56

2019 722,848.00 + 18,750,263.56 = 19,473,111.56

2020 722,848.00 + 19,473,111.56 = 20,195,959.56

MARKETING, Table 11, Historical Demand using Arithmetic Straight Line Method

2. Forecasting Demand Using Statistical Straight Line Method

PROJECTED VALUES

Year A + B x Yc

2016 12,967,479.21 + 722,848.35 6 17,304,569.31

2017 12,967,479.21 + 722,848.35 7 18,027,417.66

2018 12,967,479.21 + 722,848.35 8 18,750,266.01

2019 12,967,479.21 + 722,848.35 9 19,473,114.36

2020 12,967,479.21 + 722,848.35 10 20,195,962.71

MARKETING, Table 12, Forecasted Demand Using Statistical Line Method

A. Forecasting Supply

1. Forecasting Supply Using Arithmetic Straight Line Method

MARKETING, Figure 10, Forecasted Supply via ASLM

2. Forecasting Supply Using Statistical Straight Line Method

PROJECTED VALUES

YEAR A + B X = Yc

2016 9,858,248.62 + 330,326.07 6 = 11,840,205.04

2017 9,858,248.62 + 330,326.07 7 = 12,170,531.11

PROJECTED VALUES

YEAR a + Yi-1 = Yc

2016 330,356.71 + 11,519,999.99 = 11,850,356.70

2017 330,356.71 + 11,850,356.70 = 12,180,713.41

2018 330,356.71 + 12,180,713.41 = 12,511,070.12

2019 330,356.71 + 12,511,070.12 = 12,841,426.83

2020 330,356.71 + 12,841,426.83 = 13,171,783.54


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2018 9,858,248.62 + 330,326.07 8 = 12,500,857.18

2019 9,858,248.62 + 330,326.07 9 = 12,831,183.25

2020 9,858,248.62 + 330,326.07 10 = 13,161,509.32

MARKETING, Table 14, Forecasted Supply via SSLM

XII. Demand and Supply Analysis

Demand and supply is a relationship between the amount of goods or services that are available and

the amount that people want to buy especially when this controls prices. The table below shows the demand and

supply readings as well as the gap analysis.

Demand Supply Gap Production Capacity Market Share

17,304,569.31 11,840,205.04 5,464,364.27 3,970,560.00 0.2511

18,027,417.66 12,170,531.11 5,856,886.55 4,049,971.20 0.2497

18,750,266.01 12,500,857.18 6,249,408.83 4,288,204.80 0.2554

19,473,114.36 12,831,183.25 6,641,931.11 4,526,438.40 0.2608

20,195,962.71 13,161,509.32 7,034,453.39 4,764,672.00 0.2658

MARKETING, Table 15, Demand and Supply Analysis

XIII. MARKETING STRATEGY

A marketing strategy defines the product and the market itself. It is a fundamental process of increasing

sales and achieving a sustainable competitive advantage beyond its competitors. It also defines how the organization

will successfully engaged customers, prospects and competitors in the market arena. A marketing strategy is the

foundation of a marketing plan. A marketing plan is a specified actions required to successfully implement a marketing

plan.

Third Power Manufacturing and Distribution Inc. sell its product at a very affordable price so that end

users can afford and enjoy the product.

TPMDI SWOT ANALYSIS

To ensure the success of a business, certain areas must be considered and evaluated to be able to know the

strengths, challenges, opportunities, and threats that the business would possibly encounter.


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B. Sales Strategy

To achieve in inviting the costumers from buying the product a well-planned sales strategy is one of the

significant factors in reaching the desired results. Planning and creating an effective sales strategy requires looking at

long-term sales goals and analyzing the business sales cycle, as well as meeting with sales people about their personal

career goals. Successful strategies help the sales force focus on target market customers and communicate with them

in relevant, meaningful ways. A successful sales strategy conveys this so that the sales force spends time targeting the

correct customers at the right time.

TPMDI sell its product through online purchasing in order for the consumers or clients to achieve an easy way of

buying a product without wasting time and expenses from traveling or visiting the location especially when they are

far from the vicinity where the plant is located. TPMDI also sell its product at a very affordable price compare to the

other local brands. It’s not because it is made locally in the Philippines with local raw ma terial distributors but right

consumers deserve it.

B. Pricing Strategy

Pricing strategy is an activity aimed at finding the product’s optimum price, typically including overall marketing

objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends.

A. DIRECT MATERIAL COST

Raw Material Supplier # of kg Cost Cost/ kg FP/g Total CostCocoa Tableau BUDs Tableya 30 P6000 0.2 3.75 0.75Oats Shantou Yangyu Foodstuff Co., Ltd 50 P1950 0.039 1.5 0.06Washed Sugar Victoria Washed Sugar 20 P1350 0.0675 1.25 0.08Skimmed Milk AMALAC Skimmed Milk 25 P4200 0.168 2.25 0.38TOTAL P13500

B. SUMMARY OF DIRECT MATERIAL COST

C. PACKAGING COST

Packaging breakdown of cost1 BOX 96 Finished product Cellophane packaging 0.94php/ pack1 BOX 48 packs Box 0.4167php/packCOST/BOX 20php1 BATCH 195 boxes/ day Packaging Cost 1.3567php/pack

Cost per Batch P13,500

1 Finished Product 12. 5g

1 Finished Product P1.271 Pack 25g

1 Pack of Cocubes P2.54


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D. Mark Up:

.

. .

SRP = 6.4945php/pack

XIV. Channel of Distribution

Distribution channel is composed of chains of business operations starting from the product

manufacturer until it reaches the consumers. It shows the interconnection of the business starting from its main

producer to how the product was ordered and sold, how it is distributed to the wholesalers and bought by retailers

and how it reaches the end users of the product.

MARKETING, Figure 3, Distribution channel of Third Power Manufacturing and Distribution Inc.

Marketing Aspect Example

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