Marketing Plan

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AVIRETH ICE CREAM

____________________________

A Marketing Plan Presented to

PROF. PAMELA F. RESURRECCIONMaster of Business Management Department

School of Graduate StudiesMindanao State University –Iligan Institute of Technology

_______________________________________

In Partial Fulfillment of the CourseBA 206 - Marketing Management

by

Richard S. CelesteVanessa J. Rico

Maria Theresa C. Alarde

March 2011

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ACKNOWLEDGMENT

We would like to acknowledge the following people who have helped make this project

a success.

Mrs. Theresa Alarde, the proprietor of the homemade ice cream, for allowing us to

perform the study of her business as well as for accommodating us and granting the use of data

pertinent to this project;

The College of Business Administration and Accountancy faculty and students for taking

time to be our Product Blind Taste Test respondents and providing the needed feedback for

the study;

Our Marketing Management Class, Second Semester of Academic Year 2010-2011 for

taking time to answer in our online survey and participating in our comparative ice cream

questionnaire as well as for the input and inspiration; and

Prof. Pamela F. Resurreccion from the Marketing Department of the College of Business

Administration and Accountancy in MSU - Iligan Institute of Technology for the valuable

comments and suggestions.

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Introduction

Ice cream is one of the desserts that people love to eat. It elicits feelings of happiness

and excitement that makes each person smiles at the thought of it. On December 2009, Ms.

Theresa Alarde produced homemade ice cream to celebrate yuletide season. Her relatives were

amazed at the taste of it and commented it tasted like a branded ice cream in the market.

Heeding their comments, she started to venture into it by selling ice cream in a limited scale.

Durian, mango and cocoa ingredients were the main flavors. With its smooth texture, creamy

and natural flavored ice cream, she gradually attracted a group of loyal customers including

friends, neighbors, working staff at Mindanao Sanitarium Hospital and some professors of MSU-

IIT. Production depended mainly on orders especially during birthdays and some other

occasions. The loyal customers then, served as her motivating factor to produce ice cream.

AVIRETH Ice Cream came into being in response to the academic requirement in BA 206

– Marketing Management. AVIRETH encompasses the group members namely Vanessa J. Rico,

Richard S. Celeste and Theresa C. Alarde. This marketing plan entails identification of customer

demand, setting up of the organization’s mission, goals and objectives as well as the financial

forecast. The proponents of this endeavor think of implementing this in the hope of satisfying

customers and enjoy profit. Marketing research tools were used such as survey questionnaire,

blind taste test, observation and interview to determine firsthand customers’ reaction to the

product. They will act as business partners and would love to invite investors from the MBM

students and other interested parties to make the business grow bigger and bigger.

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I. EXECUTIVE SUMMARY

AVIRETH Ice Cream was conceptualized in response to the academic requirement in BA

206 – Marketing Management. It will be guided by its mission of providing premium quality

homemade ice cream at a fair and reasonable price that represents value to the consumers. It

will strive for excellence and aim for customer satisfaction by providing outstanding customer

service and fruit flavored specialty.

Avireth Ice Cream is made from coconut milk, milk solids-non-fat (skim-milk powder),

sugar; all purpose cream, and natural fruits or premium cocoa powder. The proponents will

position the product as a nutritious, delicious and affordable ice cream.

The MSU-IIT College of Business Administration and Accountancy faculty, staff and

students is the chosen target market of the business. As a new entrant, Market Penetration will

be used as a strategy to reach the said segment by offering ice cream at a relatively low price.

Avireth Ice Cream will implement various marketing strategies to inform, persuade the

market of the company’s products. For instance, it will facilitate word of mouth communication

by ensuring customers are satisfied so that they will serve as promotional channel by telling

their friends, relatives and loved ones about the product. Moreover, psychological pricing will

be applied to attract more customers. A trivia will be posted on information bulletins to expose

consumers to information about the company. It will also make use of direct distribution

strategy in reaching the target market. They will seek permission from Prof. Julita W. Bokingo,

Dean of CBAA through Prof. Pamela Resurreccion, their instructor to place a stall at the college

lobby to serve the customers. They will also accept orders.

Avireth Ice Cream is committed to continuous marketing research to gain more ideas in

improving the product and the business as a whole. The proponents are hopeful to gain

sufficient profit considering the output of this comprehensive plan. They will strive to creatively

coordinate the marketing mix elements to satisfy customers better and achieve organizational

objectives.

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TABLE OF CONTENTS

Title PageAcknowledgmentIntroduction

CHAPTER

I. Executive Summary 5II. Company’s Mission Statement 6III. Situation Analyses 7

A. SWOT Analysis 7B. Porter`s Five Forces 8C. Target Market Demographics 10

IV. Marketing Program 15

A. Mission 15 B. Marketing Objectives 15C. Marketing Strategies 15

1. Market Penetration 152. Market Development 163. Product Development 16 4. Diversification 16

D. Marketing Tactics 17 1. Product 17 2. Price 193. Promotion 194. Place of Distribution 21

V. Evaluation Criteria and Metrics 22VI. Forecast and Financial Analysis 25

VII. Marketing Research

A. Competitive IntelligenceB. Survey QuestionnaireC. Blind Taste TestD. Test Marketing

VIII. Appendices

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II. COMPANY’S MISSION STATEMENT

Marketing is a total system of business activities designed to plan, price, promote and

distribute want-satisfying goods and services to present and potential customers to reach

organizational objectives (William J. Stanton, Fundamentals of Marketing). This is consistent

with the marketing concept in which customers’ needs are satisfied at a profit. This can be

realized by doing the following processes to make a sound marketing decision in the important

aspects of the marketing program.

The hallmark of a successful business is the importance given to the mission statement

of an organization and the various action steps to make it achievable and realistic. Hence, the

group’s mission is stated as follows:

To give customers extraordinary happiness with our quality homemade ice cream at

an affordable price

This mission statement articulates its:

Purpose: To provide superior quality homemade ice cream in Iligan City

specifically the constituents of the College of Business Administration and Accountancy,

Mindanao State University, Iligan Institute of Technology with fruit flavored specialty.

Business: Homemade ice cream.

Core Values/Ethical Standards: Honesty, integrity and cleanliness in providing

and developing our products

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III. SITUATION ANALYSES

With the predetermined mission of the organization, analysis of the environment plays a

significant part in knowing the relevant marketing tools to develop an effective value

proposition to the target market. This analysis details the company’s strengths, weaknesses,

opportunities and threats. Moreover, it tackles the competitive environment as well as the

behavior of customers to come up with need-responsive and tailored suit marketing strategies.

A. SWOT ANALYSIS

Knowledge of the company’s strengths and weaknesses is a requisite to

determine how to capitalize its capacity as well as improve on the weak points.

Moreover, awareness of the opportunities and threats offers avenue for business

owners to exploit and prepare appropriate responses to these.

Strengths:

Excellent ice cream taste

Price is set lower than the competitors.

Offers a variety of flavors

Guarantees freshness since products are made to order

It contains natural fruit flavors

Weaknesses:

New in the market

Brand name identity is not yet established

Lack of production and storage facilities

Less manpower

Opportunities:

A growing of student population

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Favorable response of customers to ice cream

There is no ice cream parlor in the CBAA premise

Threats:

National brands of ice cream are more popular.

Commercial products have a broader price range allowing it to tap all

income groups

Famous ice cream brands have an extensive promotional campaigns

Because of technology, quality of homemade ice cream can never surpass

commercial ones

B. PORTER`S FIVE FORCES

Rivalry among Competing Sellers

High

The major competitors in the premium ice cream industry are large,

diversified companies with significantly greater resources than AVERITH.

There are existing producers of homemade ice cream.

Rivalry can be characterized as intense given that the numerous competitors

existing, the cost of switching to rival brands is low, and the sales promotion

tactics of Selecta and Nestle and other rivals pose a threat

Buyer Power

High

It is relatively high because buyers are numerous consisting of individual

customers, grocery stores and restaurants locally and nationwide.

Since retailers purchase ice cream products in large quantities, this gives

buyers substantial leverage over price.

There are many ice cream products to choose from homemade and national

brand ice cream, so the buyers’ cost of switching to competing brands is

relatively low.

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In order to defend against this competitive force, a company’s strategy must

include strong product differentiation so that buyers are less able to switch

over without incurring large costs.

Supplier Power

Moderate

The suppliers to the ice cream industry include dairy farmers, paper and

plastic manufacturers and suppliers of various flavorings.

Such suppliers are a moderate competitive force, given that the ice cream

industry they are supplying is a major customer, there are multiple suppliers

throughout the nation to choose from, and many of the suppliers’ viability is

tied to the well-being of large, established companies.

Substitute Products

High

Many substitute products are available in the dessert and frozen food

industry.

The ease with which buyers can switch to substitute products is an indicator

of the strength of this competitive force. Since substitute products are

readily available and attractively priced compared to the relatively higher

priced premium ice cream products, the competitive pressures posed by

substitute products are intense.

Potential New Entrants

Moderate

The barriers to entry within the ice cream industry are moderate due to the

brand preferences and customer loyalty toward the larger and more

established rival companies.

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Other obstacles to new entrants include strong brand loyalty to established

firms and economic factors, such as the requirement for large sources of

capital, specialized mixing facilities and manufacturing plants.

The accessibility of distribution channels can be difficult for an unknown

company with little or no brand recognition.

C. TARGET MARKET DEMOGRAPHICS

The target market is a group of customers at which the firm’s marketing program

is targeted to them (Stanton, Fundamentals of Marketing). Determining it is crucial to

the firm’s success in the long run. A basic criterion for identifying target market includes:

a) A market segment should be measurable; b) it should be large enough to be

profitable; and c) it is accessible in terms of the firms’ marketing mix elements.

1. Geographic

The City of Iligan is an urbanized city, north of the province of Lanao del Norte.

Known as the City of Majestic Waterfalls, there are around 23 waterfalls in and around

Iligan. Among them is the Maria Cristina Falls, home of Mindanao's

primary hydroelectric power station, and Limunsudan Falls. Iligan falls within the third

type of climate wherein the seasons are not very pronounced. Rain is more or less

evenly distributed throughout the year. Because of its tropical location the city does not

experience cold weather. Neither does it experience strong weather disturbances due to

its geographical location (being outside the typhoon belt) and also because of the

mountains that are surrounding the city.

2. Demographics

According to the 2007 census, it has a population of 399,061 people. The City of

Iligan has one state university and 7 private colleges. Among these educational

institutions is the Mindanao State University - Iligan Institute of Technology, one of the

few autonomous external campuses of the Mindanao State University and "the light-

bearer of the several campuses of the MSU System." It is not only one of the best

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universities in the Visayas and Mindanao regions but considered as well as one of the

best universities in Philippines with a standing of being within the top ten (10) best

universities in the country with excellence in Science and Technology, Engineering,

Accountancy, Mathematics, Information Technology, and Natural Sciences.

The target market chosen is the students, faculty and staff of the College of

Business Administration and Accountancy, MSU-IIT. We computed the average student

population and we expect that it will be approximately 813 this coming first semester.

The other market would be the existing consumers of homemade ice cream here in

Iligan. Please see table and graph below.

Semestral period Number of College

Students Enrolled

Number of MBM

Students Enrolled

1st semester, A.Y. 2008-2009 832 45

2nd semester, A.Y. 2008-2009 779 30

1st semester, A.Y. 2009-2010 781 25

2nd semester, A.Y. 2009-2010 720 30

1st semester, A.Y. 2010-2011 910 25

2nd semester, A.Y. 2010-2011 857 35

1st semester, A.Y. 2010-2011 813 31

Table 1. Student Count for 6 semesters

The proponents made use of survey questionnaire, blind taste test, free taste and

observation as tools to study the behavior of the target market.

3. Customer’s Wants and Needs

Averith Ice Cream will be giving its customers premium quality homemade ice

cream at a fair and reasonable price, striving for excellence and aiming customer

satisfaction by providing outstanding customer service and fruit flavored specialty. It

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seeks to fulfill the following benefits that are important to their customers with the aid

of the information by the survey conducted. Majority of the respondents are between

20-24 years old, single and are still in school.

Selection: Customer demand of ice cream brands ranges from Selecta,

Nestle, Magnolia and the homemade or dirty ice cream. Flavors ran from

conventional to localized having mango as the favorite and jackfruit the least.

Preference: Consumers prefer their ice cream served in a cup with price

ranging from P20-25 per scoop. Eating and purchasing ice cream is done once a

week. They usually buy the products at convenience or grocery stores.

Quality: For them, quality is good taste, texture, delicious, clean, rich

flavor, luscious, sweet and creamy in an affordable price.

Benefits: Consumers feel happy, satisfied, relaxed, relieved, refreshed,

euphoric, nostalgic and even “self-actualized” according to some after eating ice

cream.

Discounts and sales: Buy 1 get 1 free is the type of promotion they would

prefer than discount vouchers and tie-in promotions with other products.

Improvements: More new flavors and healthier ice cream tops the list for

improvements to be made in the said industry.

4. Market Trends

Manufacturers are expected to broaden their target market to improve per

capita consumption over the forecast period. These companies are anticipated to push

their premium line to middle-income consumers as an affordable gourmet treat, and at

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the same time continue to promote their value-for-money products as special occasion

indulgence to capture the lower-income stratum.

Polarization in ice cream sales became more evident in 2010. Manufacturers are

introducing more premium and limited edition products and at the same time pushing

their value-for-money lines. For instance, Unilever-RFM Ice Cream Corp introduced a

new flavor to its Selecta Gold, a premium ice cream created by top local chefs, while

heavily promoting its Selecta 3-in-1 plus 1, which contains four classic flavours – cheese,

ube (purple yam), vanilla, and chocolate – in one pack.

Unilever-RFM Ice Cream Corp maintained leadership with a value share of nearly

43% in 2009. This was mainly due to the strong performance of Selecta, which offered

both impulse and bulk ice cream. Continuous improvement of its value share can also be

attributed to the wide price range of its products, allowing it to tap all income groups,

and the company’s extensive distribution network, which permits Selecta to be available

across the Philippines.

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IV. MARKETING PROGRAM

A firm’s marketing program is a set of elements including product, price, promotion and

place of distribution. It defines the strategies the firm has to make in order to attract prospects,

retain loyal customers, obtain a larger market share and remain relevant in the dynamic world

of business. This will be based on the company’s mission and objectives for proper coordination

and successful implementation.

A. Mission

We provide premium quality homemade ice cream at a fair and reasonable price

that represents value to the consumers. We strive for excellence and aim for customer

satisfaction by providing outstanding customer service and fruit flavored specialty.

B. Marketing Objectives

Objective is a desired outcome that the company aims to achieve. It defines what

the company would love to accomplish in a certain period of time. Avireth Ice Cream has

the following marketing objectives:

1. To provide CBAA constituents with affordable, nutritious and delicious

homemade ice cream.

2. To inform, persuade and remind target market of the health benefits of ice

cream

3. To increase sales monthly by 20 %

4. To earn profit and increase it by 20% monthly.

C. Marketing Strategies

A strategy is a broad course of action by which an organization intends to reach its

objectives (Stanton, Fundamentals of Marketing). It describes what should be done and

how to do it to realize the predetermined goals.

1. Market Penetration Strategy

Market Penetration aims to enter the market at a relatively low price and

hopes to increase sales for present products. As a new entrant to the CBAA of

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MSU-IIT market, Avireth Ice Cream will offer affordable homemade ice cream.

For instance, the price of 1 gallon with durian flavor is Php 300.00 compared to

Php 400.00 and up with brands such as Nestle and Selecta. This is an important

strategy to penetrate the market quite easily because people have this innate

desire to try lower-priced products and eventually, they will be able to

appreciate the product because of its excellent taste.

2. Market Development Strategy

Market Development is a process of identifying a new group of customers to

serve. This is evidenced by the company’s desire to provide want-satisfying

products to a new group of customers. Avireth Ice Cream does this by

accommodating buyers from neighboring colleges of CBAA. Another set of

promotional tools will be employed to better satisfy this new group of

customers. The proponents of the business venture anticipates this direction by

penetrating first the present target market and expand through catering other a

new market segment 3 months after the commercialization or launching of the

said business.

3. Product Development Strategy

Product Development incorporates production of new related products. It

could actually be an expansion of product mix or extension of the product line.

Averith Ice Cream will also explore this strategy by introducing new flavors of

homemade ice cream. Doing this will make the customers more excited and

fortunate because their preferences are considered. This also justifies the notion

that every individual has a distinct need to satisfy, hence the relevance of

offering a new flavor or even size variants as examples.

4. Diversification

Diversification is the process of venturing into a new undertaking which

maybe related or not to the existing business. This poses a challenge to

businesses for deliberation. Avireth Ice Cream likes the idea of offering bread,

cakes and pastries after some months of selling homemade ice cream. The

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proponents believe that these are complementary products for overall

satisfaction. They will consider this as an exciting opportunity with the hope of

gaining profit.

D. Marketing Tactics

A tactic is a more specific activity that details the marketing strategy. Proper

planning and implementation will make the activities more effective and successful. It

delves on the 4 P’s of marketing namely product, price, promotion and place of distribution.

It requires creativity to become unique and influential among customers.

1. Product

Product is the tangible output that a company offers to customers. It is the

forefront indicator of a company’s extensive efforts to make it a want-satisfying

good. Customers consider this as the focal point to decide patronage and

preferences.

Avireth Ice Cream is made from coconut milk, milk solids-non-fat (skim-milk

powder), sugar; all purpose cream, and natural fruits or premium cocoa powder.

Coconut milk is known to be an antioxidant. It can prevent cancer and other

digestion-related diseases. It cures constipation and will make your skin smooth.

Moreover, skim milk is a good source of calcium that increases the solid content of

the ice cream and gives it more body. It is also an important source of protein which

will improve the ice cream because of the nutrients. Fresh fruit is also used as a

flavor which is a good source of vitamins and minerals. Having these ingredients,

Avireth Ice Cream will employ the following techniques:

a. Product Positioning

Avireth Ice Cream will strive to make an image as a nutritious, delicious and

affordable ice cream. Unlike existing national brands, Avireth Ice Cream uses

fresh fruits as the flavoring component that makes it more nutritious with

the following health benefits:

o It lowers cholesterol level.

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o It is rich in fiber which could solve your digestion problems.

o It reduces the risk of heart attack.

o It has a higher content of vitamins and minerals considering that it is

fresh.

Moreover, it is very delicious. We conducted free taste among the

students and they commented that it is very delicious. They even noted that

it can rival national brands of ice cream because of its delightful taste.

Furthermore, it is highly affordable relative to competitors. Consumers can

now enjoy eating ice cream at a low price. We provide this satisfaction to

attract more customers and retain the loyal ones. Hence, our competitive

edge delves into offering affordable, nutritious and delicious ice cream.

b. Product Quality

It has been said that quality is like beauty, in that; it is in the eyes of the

beholder. While there is a standard definition to it because of the efforts

done by companies in their Total Quality Management or TQM, a person’s

unique definition is cathartic. It is evidenced in the survey we conducted. We

asked what does quality mean to them and answers varied from the texture

to taste and cheap price to availability. Please see Appendix for your

reference. 32% commented that it should be tasty and delicious. As such,

Avireth Ice Cream will capitalize in its delicious taste. If customers will be

satisfied with its taste, then repeat purchases is expected.

c. Packaging

The proponents will consider re-using disposed containers of Nestle and

Selecta sold by Chowking and ice cream outlets in Gaisano Mall. Customers

who will repurchase ice cream will be given Php 10 discount by presenting

back the emptied container. This is to foster reuse of plastic containers than

just throw it anywhere, hence awareness about the role one has to perform

amidst climate change. (See appendices)

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2. Price

One of the major reasons why consumers buy products is price. In fact,

others make it the sole basis before buying something. Avireth Ice Cream will

use market penetration pricing in which price is set lower than competitors to

reach the market quite easily. This will be another competitive advantage which

is favorable to the proponents. During the blind taste test, respondents were

also asked to voice out their comments about the product and it was so amazing

that they like the taste very much. They even stressed that the product can be

highly saleable because of great taste. In relation to price, the proponents are

confident for the success of this technique to earn bigger sales.

Cost-plus pricing will also be incorporated in which a mark-up is added to the

total cost to earn profit. Also, psychological pricing will be employed in which

price will be set at seemingly odd prices like Php 299 instead of Php 300 for 1

gallon of ice cream. This will further attract more customers to buy.

3. Promotion

Promotion is the element in the marketing program that serves to inform,

persuade, and remind the market of the company and/or its products (Stanton,

Fundamentals of Marketing). It is the communication tool to convince more

customers. In fact, it is called as marketing communications because every single

element of the marketing mix should be communicated to the target audience.

Avireth Ice Cream will be doing a lot of promotional activities including:

a. Word of mouth Communication.

Avireth Ice Cream will facilitate word of mouth communication by

ensuring customers are satisfied because they will serve as promotional

channel in which they will tell their friends, relatives and loved ones about

the product. This exposure is very much influential because of the third party

impact in promoting the product.

b. Advertising

Avireth Ice Cream will make use of the following as advertising tools:

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o Tarpaulin

o Leaflets

o Calling Card

o Trivia. The proponents will be posting Trivia about Ice Cream on the

bulletin boards every other day with contact details of our business.

This is to facilitate accidental exposure to information among

passersby or bystanders near the information bulletins.

c. Sales Promotion

The proponents will be using sales promotional techniques to increase

sales. Below is a list of methods:

o Free taste. Allowing customers to at least try the product opens a

doorway for more sales. Implementing this will make prospects to

buy the product. The proponents are confident with its delightful

taste, hence the relevance of this technique.

o Discount. We will give concessions to birthday celebrants such as 5%

discounts for 1 gallon and 15% for 1 tube of ice cream purchased.

o Point of Sale Promotion

d. Public Relations

The group will sponsor events such as simultaneous eating of ice cream in

cone by hundreds of college students in the campus. This will be realized a

year after the grand launching of the business on June 2011.

We will also coordinate with organizations that will be organizing medical

mission and extend financial assistance. Sometime later, the proponents will

really spearhead free dental and health check up here in Iligan City and some

other places. Doing all these will eventually result to positive publicity and

will create a positive impact

e. Internet Marketing

With an outgrowing number of users in facebook and other networking

sites, promoting our product through it is a good idea. We will create a group

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page in facebook with members exclusive for the constituents of Iligan City.

This is to elicit orders during important occasions such birthdays and family

reunions. The group plans to maximize its advantages three months after the

opening of the business.

4. Place of Distribution

Place of Distribution is the location or the channels of distribution that a

company selects in serving the target market. It is another crucial element

because it the end point of making a sale. The proponents will make use of direct

distribution strategy in reaching the target market. They will seek permission

from Prof. Julita W. Bokingo, Dean of CBAA through Prof. Pamela Resurreccion,

their instructor to place a stall at the college lobby to serve the customers. They

will also accept orders.

Promotional ExpensesJune July Aug Sept Oct Nov Dec

Discount for Packaging 100.00 120.00 144.00 173.00 207.00 250.00 374.00Pricing Strategy 96.00 114.00 132.00 150.00 168.00 186.00 276.00Tarpaulin 1,000.00Leaflets 500.00 500.00Calling card 500.00 500.00Trivia 100.00 100.00 100.00 100.00 100.00 100.00 100.00Free Taste 600.00Birthday celebrants 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00Public relations 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00

Total Promotional Expenses 4,896.00 2,334.00 2,376.00 2,923.00 2,975.00 2,536.00 2,750.00

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V. EVALUATION CRITERIA AND METRICS

Business operations will be evaluated based on the following:

Sales volume and revenue; Expenses; Return on marketing investment; Customer satisfaction; and, Market position.

Below is a detailed questionnaire to determine implementation success based on the plan.

AVIRETH Ice Cream Marketing Plan Audit As of today, how much is our net income? _________________ As of today, how much have we spent for marketing activities or expenses? ____________

Yes NoInternal ManagementIs the mission statement clearly understood by the employees? Are the members of the organization supportive of the ice cream business? Do we have a professionally designed logo? Do we have a niche market as a part of our product/service mix? Did the number of our customers increase during the past 6 months? Customer Evaluation Do we ask our customers how well they are satisfied with the product? Do we think that value is more important than price to our customers? Do our clients view us as highly reliable and trustworthy? Did most clients leave with a smile, a "Thank You", or a gesture of happiness after buying and/or eating ice cream?

Have we received or heard of any complaints from customers regarding our product? Have any customer sent us a “thank you” note for our product this year? Do we have testimonials from at least five customers?

Price Mix. Have we achieved our financial profit goal for the past 6 months?

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Has there been any increase in costs pertinent to our operations (i.e., labor, materials, etc.)? Do we think that customers feel our price is too high ____, or too low ____? Marketing Mix. Have we devoted at least 75% of our marketing activities from the marketing plan? Are we satisfied with the results the marketing plan has produced? Do we work off our marketing mix from a written marketing calendar? Do we spend at least one hour each week reviewing marketing? Have we taken a varied and creative approach to marketing? Have we kept our expenses for marketing within our budget? Do we conduct periodic reviews of our own marketing materials? Marketing Update. Have we participated in any business networking groups? Do we get updates from marketing articles and advice at least once a week? Communication Mix. Advertising: Have we advertised in print or otherwise during the past 6 months? Is our visual branding clearly & consistently appearing on all collateral? Promotion: Do we have a written Word of Mouth marketing program? Have we distributed any press release about our business this year? Have we written any articles about car care this year? Public Relations. Have we spoken in front of a group about ice cream this year? Have we participated in any volunteer activity? Do we have an ongoing Public Relations program? Internet Marketing. Have we participated in any social media efforts? Do we have a blog or a website? Do we participate in our community locally or online? Do we have a professional email address with our own domain? Fostering Customer Relationship. Are customers updated of our promos and services? Have we written each of our repeat customers a Thank You note or given a token this year?

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Have we asked at least 40% of our customers for referrals this year? Do we have customer profiles on at least 70% of our customers? Is it easy for our customers to reach us by telephone or mobile phone? Do we know our customer’s birthdays, anniversaries, or other special days? Do we feel that we are the one in charge of our customer relationships? Have we surveyed our customers to determine if they are happy with us? Competition. Have we done a written survey of our competition? Has an owner of a carwash shop in Iligan City visit us during the past 6 months? Has anyone conduct an inquiry, or a study about our business? The higher the score, the better positioned we are in the marketplace.

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VI. Forecast and Financial Analysis

A. HISTORICAL DATA

NUMBER OF TUBES SOLD PER MONTH AS OF 2010

JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

# of tubes produced 10 10 10 16 16 10 22

Sold in tube 2 2 2 4 5 2 8Selling Price 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00

2,600.00

2,600.00

2,600.00

5,200.00

6,500.00

2,600.00

10,400.00

Sold in gallon 8 8 8 12 11 8 14Multiply by 6 gallons per tube 6 6 6 6 6 6 6

48 48 48 72 66 48 84Selling Price 300.00 300.00 300.00 300.00 300.00 300.00 300.00

Php 14,400.00

14,400.00

14,400.00

21,600.00

19,800.00

14,400.00

25,200.00

Total Sales per Month

17,000.00

17,000.00

17,000.00

26,800.00

17,000.00

17,000.00

35,600.00

B. SALES FORECASTING

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Formula Historical data + (total number of people in target market x annual # of purchases/ person)

ASSUMPTIONS:

BA student average population 813Expected Number of Customers 10% from target populationBuying frequency 1 per weekVariant 3.5 oz cupPrice Php14.00 per cupsales per month 324 cups

Php4,536.00 sales

MBM student average population 31Expected Number of Customers 20% from target populationBuying frequency 1 per monthVariant 0.50 half gallonPrice Php159.00 per half gallonsales per month 6 half gallon

Php954.00 sales

MBM student average population 31Expected Number of Customers 20% from target populationBuying frequency 1 per monthVariant 1 gallonPrice Php299.00 per gallonsales per month 6 gallon

Php1,794.00

Total Sales per month Php7,284.00

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AFTER IMPLEMENTING PROMOTION, AN INCREASE OF 20% WILL BE REALIZED MONTHLY

PROJECTION

JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBERSALES

Regular Customers

17,000.00

17,000.00

17,000.00

26,800.00

17,000.00

17,000.00

35,600.00

Target Market 7,824.00 9,388.80

11,266.56

13,519.87

16,223.84

19,468.60

29,202.90

Total 24,824.00

26,388.80

28,266.56

40,319.87

33,223.84

36,468.60

64,802.90

C. Cost of Goods SoldJune July Aug Sept Oct Nov Dec

Number of tubes 16 19 22 25 28 31 46Price of raw materials 585.00 585.00 585.00 585.00 585.00 585.00 585.00

9,360.00 11,115.00 12,870.00 14,625.00 16,380.00 18,135.00 26,910.00Packaging 1,410.00 1,692.00 2,030.40 2,436.48 2,932.78 4,399.17 6,598.76Total Direct Materials 10,770.00 12,807.00 14,900.40 17,061.48 19,312.78 22,534.17 33,508.76

Direct labor 2,400.00 2,850.00 3,300.00 3,750.00 4,200.00 4,650.00 6,900.00Overhead 600.00 600.00 600.00 600.00 600.00 600.00 600.00

3,000.00 3,450.00 3,900.00 4,350.00 4,800.00 5,250.00 7,500.00

Total Cost of Goods Sold 13,770.00 16,257.00 18,800.40 21,411.48 24,112.78 27,784.17 41,008.76

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Direct Materials

Cream 40.00Cocomilk 120.00White sugar 75.00Flour 17.00Fruit 100.00Others 105.00Total 585.00

D. Selling and Administrative Expenses June July Aug Sept Oct Nov Dec

Salary of Sales Personnel 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00Rental fee 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00Promotional Expenses 4,896.00 2,334.00 2,376.00 2,923.00 2,975.00 2,536.00 2,750.00Delivery Expenses 200.00 200.00 200.00 200.00 200.00 200.00 200.00

Total 8,296.00 5,734.00 5,776.00 6,323.00 6,375.00 5,936.00 6,150.00

E. Promotional ExpensesJune July Aug Sept Oct Nov Dec

Discount for Packaging 100.00 120.00 144.00 173.00 207.00 250.00 374.00Pricing Strategy 96.00 114.00 132.00 150.00 168.00 186.00 276.00Tarpaulin 1,000.00Leaflets 500.00 500.00Calling card 500.00 500.00Trivia 100.00 100.00 100.00 100.00 100.00 100.00 100.00Free Taste 600.00Birthday celebrants 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00Public relations 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00

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Total Promotional Expenses 4,896.00 2,334.00 2,376.00 2,923.00 2,975.00 2,536.00 2,750.00

AVIRETH Ice CreamProjected Income Statement

For the months June-December 2011

Jun Jul Aug Sept Oct Nov Dec

Sales 24,824.00 26,388.80 28,266.56 40,319.87 33,223.84 36,468.60 64,802.90Cost of Goods Sold 13,770.00 16,257.00 18,800.40 21,411.48 24,112.78 27,784.17 41,008.76Gross Margin 11,054.00 10,131.80 9,466.16 18,908.39 9,111.06 8,684.43 23,794.14Administrative & Selling Expense 8,296.00 5,734.00 5,776.00 6,323.00 6,375.00 5,936.00 6,150.00Net Income 2,758.00 4,397.80 3,690.16 12,585.39 2,736.06 2,748.43 17,644.14

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VII. MARKETING RESEARCH

A. Competitive Intelligence

Marketing Intelligence is the process of monitoring the activities of competitors. It is an ongoing activity that necessitates determination of the strengths and weaknesses of the direct and indirect rivals. Moreover, it identifies what are the strategies used by the competitors.

1. Direct Competitors

Name of Proprietor

Date Started

Address Distribution Area

Price Size

JOSEPH BAGONDOL

2004-2005

Upper Hinaplanon, I.C.

Tambo, I.C. P1,000.00/tube

9.00/conebig

KRISTO ALIBYO 2010- to present

Upper Hinaplanon, I.C.

Santa Filomena, I.C.

5.00/cone10.00/cone

smallbig

KOPIZ TAPING 1996-1997

Hinaplanon, I.C. Cabarro, I.C. 800.00/tube6.00/cone small

PABLO TUMBOK

2004-2005

Hinaplanon, I.C. Brgy. Santiago, I.C.

1,000.00/tube

ARNOLD CORTES

2010-to present

Hinaplanon, I.C. Tambo Bus terminal, I.C.

1,000.00/tube5.00/cone3.00/cone

small

TONY ABREJANO

1986-to present

Purok6-B, Tambo I.C.

Tambo Elem. School

1,000.00/tube5.00/cone small

FREDDIE PASTALLANO

2010-to present

Purok 16 Canaway, I.C.

Pala-o Market 800.00/tube5.00/cone small

ALFREDO PADILLA

1975-1976

Tambacan, I.C Tambacan, I.C. 4.00/cone small

ARNOLD TEMPERO

1993-1994

Zone 1 Upper Hinaplanon, I.C.

City Proper 900.00/tube5.00/cone small

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2. Indirect Competitors

Name of Store Brand of Ice Cream

Strengths Weaknesses

POPROCK Nestle -use generator whenever brownout occurs.-the owner of the bread shop attracts the buyers of breads and cakes as buyers of ice cream too.-the location of the store is in the area near to school, pathway of employees from offices and commercial center.

-there are many ice cream sellers around the corner.-during rainy days, less consumer buys icecream for it is wet and cold outside.- no tables and chairs where customers can take it inside as part of customer service

BOYET & SOBIE NestleSelecta

-Location is near in the area of school, church and commercial center.

-it has a competitor in front of its building selling the same brands of ice cream-it has no table and chairs where customers can take it inside as part of customer service

VICTORIA BAKERY NestleSelecta

-Has a company`s price set to the products-products are displayed inside in line with breads and cakes in a way to attract the buyers of their own baked products-sells two kinds of products so buyer has choices-sell sizes in gallons,half gallons, cone and cups.-have their own generator when brownout occurs.

CHOWKING Nestle - Food chain with known brand name in

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the food industry. Halo-halo is one of their most sellable served is topped with Nestle ice cream. Nestle is associated in Chowking with strong brand name located in every malls in the Phils.

FK MART NestleSelecta

-use generator during brownouts-one of the biggest grocery stores in the city-located in one of the busiest streets of the city-near Palao wet market

-direct selling competition with Emilia Supermart which is located on the same street-majority of its icecream package size is a pint to a gallon-early closing time

EMILIA SUPERMART

SelectaNestle

-use generator during brownouts- one of the biggest grocery stores in the city-located in one of the busiest streets of the city-closer proximity to Palao wet market than FK Mart-has a wider packaging sizes from Selecta products

-direct selling competition with FK Mart-early closing time

GAISANO GROCERY

SelectaNestleMagnolia

-located inside GMALL which commands a higher number of people entering the building-is in a one stop shop-has 3 brands of ice cream to offer to its customers-largest variety of packaging sizes available

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- use generator during brownouts-longer open time with no lunchbreaks-late closing time

3. Survey Questionnaire

The proponents conducted a survey to the target market. The purpose delves on

knowing the usage, attitude and image of the potential customers about the product.

Below is the result of the survey conducted. (See appendices)

4. Blind Taste Test

Blind taste test is the process of knowing directly from the respondents their

preferences and personal judgment about the product. The proponent made use of a

single blind taste test in which respondents are not aware of brand names. This is to

avoid bias in rating the various attributes of the product. (Please refer to appendices)

5. Test Marketing

Test Marketing is a research tool implemented on a limited scale before the final

launching of the product. The proponents will conduct this a month before the grand

opening to know the performance of the product in the market. Customers’ reaction will

then be recorded and will be used for refinements. This is found to be helpful because

of the primary data that the researchers could use of in improving the product and the

business in general.

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VIII. APPENDICES

A. Flyers