Page19.chapter2

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CHAPTER 2

MARKETING PLAN

This study will involve the process of gathering information about the 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

42%

6%6%4%

35%

8%

Global Activated Carbon Market Volume Share

Water TreatmentFood & Beverage ProcessingPharmaceutical & MedicalAutomotiveAir PurificationOthers

Fig. 2.1 Global Activated Carbon Market Volume Share

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Carbon Plus Corporation targets those businesses indicated in Fig. 2.1. These

businesses need activated carbon as part of their operation to clean and detoxify their

products before selling it out to the market. As a newly organized business, Carbon Plus

Corporation would only be targeting 2 among those business listed above during its first

years of operations. These are oil refineries and water treatment business.

According to the World Health of Organization, about 3.4 million people die

annually from water-related diseases. About a million Filipinos get sick with water-

borne diseases yearly of which the cause is diarrhea alone. This does not yet include

other water-borne disease like amoebiasis, cryptosporidiosis and cholera. This is where

water refilling stations arise. They help prevent the contamination of water thus, prevent

the increasing cases of death due from water-borne diseases.

The researchers perceived that since our population is increasing, the market of

water refilling station is progressive. And more and more refilling station would arouse

in the next years to supply the demand of the population for purified water. Moreover, as

we can see in the illustration above, water treatment is the top most user of activated

carbon in the market and with that the corporation would yield greater profits.

CALABARZON is regarded as the nucleus for industrialization and one of the

most leading producer of oil in the Philippines. Carbon Plus Corporation saw the

advantage of targeting these businesses since they are nearer the vicinity of the

corporation’s site. This would give the target consumers the convenience in buying the

product. Also, being the only manufacturer of powderized activated carbon in

CALABARZON, this would give the corporation an edge and the competitive advantage

among its competitors.

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Carbon Plus Corp. aim to reach those businesses especially those areas within and

near the vicinity of Region 4-A.Since there is only one manufacturer of activated carbon

in CALABARZON, we can help these enterprise in lowering their cost of purchase

without sacrificing the quality of the product.

Furthermore, since there are so many business that uses activated carbon, the

corporation would expand its horizon and target as well these business to be able to

realize its vision as an integrated manufacturing entity providing sufficient supply of high

quality activated carbon and relevant services to respond to their growing demands while

minimizing the cost of the product to make it more affordable to the users.

II. Market Size

Region IV-A (CALABARZON)

Fig. 2.2 Geographical Area of Region IV-A (CALABARZON)

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Region IV-A or CALABARZON is one of the regions of the Philippines. It is

located in the southwest of Luzon and is the second most densely populated region. This

region is composed of Cavite, Laguna, Batangas, Rizal and Quezon Province.

The region is known as the industrial powerhouse and is also identified as the

nucleus of industrialization in the Philippines. It has a big supply base of semi-processed

industrial raw materials and industrial components coming from its 31 world-class

industrial estates and economic zones (ecozones).

Moreover, the region has a vast pool of human resource base for the

manufacturing and services industries and has reliable utilities and well-placed

infrastructure enhancing faster turn-around times. It has business-friendly environment,

first-class lifestyle, and booming tourism circuits.

Cavite

Cavite is a province of the Philippines located on the southern shores of

Manila Bay in the CALABARZON region in Luzon. Its capital is the city of Trece

Martires. Cavite is surrounded by the provinces of Laguna to the east and Batangas to the

south. To the west lies the South China Sea.

It is the smallest province in the CALABARZON region.  It is one of the most

industrialized and one of the fastest growing provinces in the country because of its close

proximity to Metro Manila, located just 14 kilometers (8.7 mi) south of the capital.

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Laguna

Laguna’s capital is Santa Cruz and the province is located southeast of Metro

Manila, south of the province of Rizal, west of Quezon, north of Batangas and east of

Cavite. Laguna almost completely surrounds Laguna de Bay, the largest lake in the

country. The province got its name from the Spanish word lago, which means lake.

Laguna shows a thriving economy. With a population of 2,669,847 (2010

Census),and a total area of 1,760 km2 (680 sq mi) of land, Laguna produces millions of

pesos worth of coconuts, rice, sugar, citrus fruits, lanzones and other products.

Batangas

Batangas is a first class province of the Philippines located on the

southwestern part of Luzon in the CALABARZON region. Its capital is Batangas City

and it is bordered by the provinces of Cavite and Laguna to the north and Quezon to the

east. Across the Verde Island Passages to the south is the island of Mindoro and to the

west lies the South China Sea. Batangas is often referred to by its ancient name

Batangas has the second largest international seaport in the Philippines after

Metro Manila. The identification of the city as an industrial growth center in the region

and being the focal point of the CALABARZON program resulted to the increasing

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number of business establishments in the city's Central Business District (CBD) as well

as numerous industries operating at the province's industrial parks.

Rizal

Rizal province is bordered by Metro Manila to the west, the province

of Bulacan to the north, Quezon to the east andLaguna province to the south. The

province was named after the country's national hero, José Rizal. Rizal's capital is

Antipolo City, although the provincial capitol is located in Pasig City in Metro Manila,

which was the previous capital.

Quezon

Quezon is located southeast of Metro Manila and it is surrounded by the

provinces of Aurora to the north, Bulacan, Rizal, Laguna and Batangas to the west and

the Camarines provinces to the east. Quezon lies on an isthmus separating the Bicol

Peninsula from the main part of Luzon. The province also covers the Polillo Islands in the

Philippine Sea. The province was named after Manuel L. Quezon, the second President of

the Philippines, and its capital is Lucena City.

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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.

Population of CALABARZON by Age Group for 2010

Age

GroupCavite Laguna Batangas Rizal Quezon

Total

Population

0-4 339,745 291,899 233,827 277,115 236,938 1,379,524

5-9 320,724 275,557 220,736 261,601 223,672 1,302,290

10-14 303,157 260,463 208,646 247,272 211,421 1,230,959

15-19 297,002 255,175 204,410 242,252 207,129 1,205,968

20-24 273,961 235,379 188,552 223,458 191,060 1,112,410

25-29 244,084 209,710 167,989 199,089 170,224 991,096

30-34 264,568 229,923 164,302 196,037 137,860 992,690

35-39 233,592 191,271 141,403 176,933 116,354 859,553

40-44 212,163 174,927 126,434 165,271 111,695 790,490

45-49 175,247 150,632 104,248 140,503 97,919 668,549

50-over 426,449 394,911 616,847 355,310 282,757 2,076,274

Total 3,090,692 2,669,847 2,377,394 2,484,841 1,987,029 12,609,803

Source: http://www.census.gov.ph

Table 2.1 Population of CALABARZON by Age Group for 2010

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Projected Number of Population Based on 2000 Census-based Population Projection

Year Projected Population

2000 9,422,900

2005 10,655,500

2010 11,904,100

2015 13,144,400

2020 14,370,500

2025 15,555,400

Source: http://www.census.gov.ph

Table 2.2 Projected Number of Population Based on 2000 Census-based Population

Projection

Table 2.1 and 2.2 was taken from the National Statistics Office based from their

latest records in 2000. Accordingly, by taking the projected number of population from

table 2.2 in years 2010 and 2020 we would be able to project the population growth rate

from 2010-2020.

Population Growth Rate=Time

Difference√ Projected Population∈2020Projected Population∈2010

−1

¿ 10√ 14,370,50011,904,100

−1

= 1.90%

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Projected Population of CALABARZON per Age Group for 2012

Age

GroupCavite Laguna Batangas Rizal Quezon Total

0-4 352,778 303,097 242,797 287,745 246,027 1,432,444

5-9 333,027 286,128 229,204 271,636 232,252 1,352,247

10-14 314,786 270,455 216,650 256,758 219,531 1,278,180

15-19 308,395 264,964 212,251 251,545 215,075 1,252,230

20-24 284,470 244,408 195,785 232,030 198,389 1,155,083

25-29 253,447 217,755 174,433 206,726 176,754 1,029,115

30-34 274,717 238,743 170,605 203,557 143,148 1,030,771

35-39 242,553 198,608 146,827 183,720 120,817 892,526

40-44 220,302 181,637 131,284 171,611 115,980 820,814

45-49 181,970 156,410 108,247 145,893 101,675 694,195

50-over 442,808 410,060 640,510 368,940 293,604 2,155,922

Total 3,209,25

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2,772,265 2,468,593 2,580,162 2,063,253 13,093,528

Table 2.3 Projected Population of CALABARZON per Age Group for 2012

III. 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

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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.

The researchers gathered enough data through relevant questionnaires and

interviews with different industries. These data would be used to identify the market

demand for the company’s product. The data gathered are as follows:

Data Gathered

85%

15%

Respondents According to Industry

Water TreatmentOil Refineries

Fig. 2.3 Respondents According to Industry

The researchers did a survey in 2 different industries which would be the

company’s target market. The figure above shows that 85% of the respondents are water

refilling businesses while the remaining 15% are oil refineries.

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80%

20%

Responses of Respondents According to Supplier of Activated Carbon

Local SupplersForeign Suppliers

Fig. 2.4 Responses of Respondents According to Supplier of Activated Carbon

The data above shows that 20% among the respondents buys activated carbon

from foreign suppliers. Thus, the corporation could dominate this 20% since the

corporation is very accesible by these industries and their cost of purchase would be

lessen given the same quality of activated carbon offered.

85%

15%

Type of Activated Carbon Used by Respondents

Granular Activated CarbonPowderized Activated Carbon

Fig. 2.5 Type of Activated Carbon Used by Respondents

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The figure shown indicates that 15% of the repondents uses powderized activated

carbon and all of these are coming from oil refineries which means that the remaining

85% who use granular activated carbon are water refilling industries. This would only

mean that the market of granular activated carbon is focused on water refilling stations

while the market of powderized activated carbon is focused on oil refineries.

60%

30%

10%

Frequency of Activated Carbon Purchases

MonthlyQuarterlySemi-Annual

Fig. 2.6 Frequency of Activated Carbon Purchases

The above figure shows how frequent the respondents buy activated carbon. The

survey resulted that most of these industries choose to buy in a monthly basis which is

60%. The other 30% buys quarterly and the remaining 10% choose to buy semi-

annually. This would be helpful in determining the consumption of activated carbon and

also on how many activated carbon should be produced in a given period.

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12%

29%

41%

18%

Respondents Using Granular AC Purchase Price

P80 - 90P90 - 100P100 - 110P110-120

Fig. 2.7 Respondents Using Granular AC Purchase Price

From the gathered data above, we can see that 41% of the respondents using

granular AC buy AC from a range of P100 – 110 which covers almost half of the pie.

The next is 90 – 100 with a 29% among the respondents, P110 - 120 with a 18% and P10

- 90 with the remaining 12%.

This data would be a factor in determining the selling price of the company.

33%

67%

Respondents Using Powderized AC Purchase Price

P60 - 70P70 - 80

Fig. 2.8 Respondents Using Powderized AC Purchase Price

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The figure indicates that 67% of the respondents’ purchase price is from a range

of P60 -70 while the remaining 33% purchases powderized AC from a price range of P50

– 60.

Water Refilling Station

Since water is a basic necessity, we can safely assume that as the population

increases, the demand for water increases. Consequently, the higher the demand for

water the more water refilling stations would arouse in the market. Thus, the population

growth would be the basis for projecting the number of water refilling stations in the

provinces of CALABARZON. To project, we would use the formula below.

Projected Number of Water Refilling Stations in Other Provinces for 2012

¿ Pop . of Other Provinces for 2012Population of Quezon for 2012

× No .of Water RefillingStations inQuezon2012

Projected Number of Water Refilling Stations in CALABARZON for 2012-2017

2012 2013 2014 2015 2016 2017

Cavite 319 325 331 337 344 350

Laguna 275 281 286 291 297 303

Batangas 245 250 255 260 264 269

Rizal 256 261 266 271 276 282

Quezon 205 209 213 217 221 225

Total 1,301 1,326 1,351 1,377 1,403 1,429

Table 2.4 Projected Number of Water Refilling Stations in CALABARZON for 2012-2017

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Annual Demand of Activated Carbonfor Water Refilling Stations 2013-2017

2013 2014 2015 2016 2017

Total Number of Water

Refilling Stations

1,326 1,351 1,377 1,403 1,429

Average Daily Sales (in gallons) 185 185 185 185 185

Total Average Daily Sales (in

gallons)

245,247 249,907 254,655 259,493 264,424

Multiplied by Average Daily

Consumption of AC (kg/gal)

0.00625 0.00625 0.00625 0.00625 0.00625

Daily Consumption of AC (kg) 1,533 1,562 1,592 1,622 1,653

Multiplied by 30 30 30 30 30

Monthly Consumption of AC 45,984 46,858 47,748 48,655 49,579

Multiplied by 12 12 12 12 12

Annual Demand of AC (in kilo) 551,806 562,290 572,974 583,860 594,954

Table 2.5 Annual Demand of Activated Carbon for Water Refilling Stations 2013-2017

According from our interviews with water refilling business, their average sales of

water is 185 gallons per day. And according to another interview we had with Osmotech

Inc., a water treatment business, a 50kilogram granular AC can purify 8000gallons of

water. So, in order to get the average consumption of AC per gallon, we simply divide

50kilos to 8000gallons, we can get the proportion of AC used per gallon of 0.00625kilos.

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Thus, to arrive at the projected annual demand, the projected number of water refilling

stations would be multiplied by the average yearly consumption.

Oil Refineries

List of Oil Refineries in CALABARZON as of 2012

Company Name Address Rated Milling

Capacity (MT/day)

JNJ Oil Industries Inc. Brgy. Isabang, Lucena City,

Quezon

60

Tantuco Enterprises Brgy. Iyam, Lucena City,

Quezon

200

Mt. Holly Coco Industrial

Inc.

Brgy. Domoit, Lucena City,

Quezon

60

Tongsan Industrial Dev’t

Corporation

Brgy. Malabanban,

Candelaria, Quezon

100

San Pablo Manufacturing

Corporation

140 W.P. Schetelig Avenue,

San Pablo City, Laguna

150

Mt. Makiling Intl. Oil Inc. Brgy. Mamatid, Cabuyao,

Laguna

120

Source: Philippine Coconut Authority

Table 2.6 List of Oil Refineries in CALABARZON as of 2012

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Demand of Activated Carbon for Oil Refineries in 2013

2013 2014 2015 2016 2017

Daily Production of Oil - 2013 (in

metric tons)

518 518 518 518 518

Increase in Prior Periods 10 20 30

Total 518 518 527 537 548

Increase in Daily Production -

1.90%

10 10 10 10

Daily Production of Oil (in MT) 518 527 537 548 558

Multiplied by Consumption of AC

(kilograms/metric ton)

4.78567 4.78567 4.78567 4.78567 4.78567

Daily Consumption of AC (in kg) 2,477 2,524 2,572 2,620 2,670

Multiplied by 30 30 30 30 30

Monthly Consumption of AC 74,298 75,709 77,148 78,613 80,107

Multiplied by 12 12 12 12 12

Annual Demand of AC (in kg) 891,570 908,510 925,772 943,362 961,285

Table 2.7 Demand of Activated Carbon for Oil Refineries in 2013

From our surveys and research, oil refineries need powderized activated carbon in

their daily operations. So in order to project the demand for powderized activated carbon

by oil refineries, the data were gathered through relevant questionnaires and interviews.

According from an experienced chemist, for oil refineries to produce 100 gallons of oil it

uses approximately 50kilograms of powderized activated carbon. Oil refineries must

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maintain the quality of activated carbon thus, they frequently change the activated carbon

in their machines. So, the consumption of activated carbon per metric tons is 4.78567.

Consequently, the monthly consumption of powderized activated carbon is 74,298

and the annual demand of activated carbon in kilos is 891,570 during 2013. The growth

rate of the population was used to project the demand of oil. This is due to the fact that

the greater the population, the greater the consumption of food and thus, more activated

carbon would be supplied by oil industries.

IV. 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.

Supply of Granular Activated Carbon in CALABARZON

2013 2014 2015 2016 2017

Total Number of Water Refilling

Stations

1,326 1,351 1,377 1,403 1,429

Average Purchases of Activated 25 25 25 25 25

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Carbon per Month (in kilos)

Average Monthly Supply of AC

(in kilos)

33,141 33,771 34,413 35,067 35,733

Multiplied by 12 12 12 12 12

Annual Supply of Activated

Carbon (in kilos)

397,69

8

405,254 412,95

4

420,800 428,795

Table 2.8 Supply of Granular Activated Carbon in CALABARZON

A water refilling station’s average purchases of activated carbon per month is 25

kilograms, and thus the annual supply was determined to be 397,698 kilograms. This

would be used to project the untapped market and the market share ratio of the

corporation.

Supply of Powderized Activated Carbon in Calabarzon

MT/day Supply of

AC – 2013

JNJ Oil Industries Inc. 60 130

Tantuco Enterprises 200 433

Mt. Holly Coco Industrial Inc. 60 130

Tongsan Industrial Dev’t Corporation 100 217

San Pablo Manufacturing Corporation 150 325

Mt. Makiling Intl. Oil Inc. 120 260

Monthly Supply of Activated Carbon - 2013 690 1,495

20

Multiplied by 360

Annual Supply of Activated Carbon - 2013 538,200

Table 2.9 Supply of Powderized Activated Carbon in Calabarzon

The figure above would be used to determine the untapped market of powderized

activated carbon. The data were gathered from Philippine Coconut Authority. It shows

that the annual supply of activated carbon in oil refineries during 2013 is 538,200.

Listed below are the activated carbon manufacturers in the Philippines. These are

local manufacturers’ that supplies the market with granular and powderized activated

carbon.

List of Activated Carbon Manufacturers in the Philippines

Activated Carbon Manufacturers Address

Cenapro Chemical Corporation Jagobiao, Mandaue City

Davao Central Chemical Corp. Tibungco, Davao City

Pacific Activated Carbon, Co. Cavite & Misamis Oriental

Donau Carbon Philippines Corp. El Salvador, Misamis Oriental

Phil-Japan Activated Carbon

Corp.

Panacan, Davao City

Premium AC Corporation Ma-a Davao City

Mindanao Activated Carbon Panacan, Davao City

Green Carbon, Inc. Baybay, Leyte

Mapecon Philippines, Inc. Laguna

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BF Industries, Inc. Toril, Davao City

Source: Philippine Activated Carbon Manufacturers’ Association

Table 2.10 List of Activated Carbon Manufacturers in the Philippines

V. Untapped Market

Now that we have determined the demand and supply of each type of activated

carbon, we can now determine the untapped market.

The untapped market is the portion which the supply do not meet the demand.

This means that the amount of being supplied to the market is insufficient to meet the

customers’ demands. This would result for consumers to adjust their means of using the

product like minimizing the consumption of the product.

The researchers identified the untapped market of activated carbon in each

of its target industry. This would be used to identify the volume of the corporations’

production.

Untapped Market in Water Refilling Stations

AC (in kilos)

Annual Demand of Powderized AC 551,806

Annual Supply of Activated Carbon 397,698

Untapped Market 154,108

Table 2.11 Untapped Market in Water Refilling Stations

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Untapped Market in Oil Refineies

AC (in kilos)

Annual Demand of Powderized AC 891,570

Annual Supply of Activated Carbon 548,426

Untapped Market 353,370

Table 2.12 Untapped Market in Oil Refineies

As we can see in tables 2.11 and 2.12, there is a huge part of the demands of the

market that is not met thus results to the untapped market. The reason for the large

amount of untapped market is that mostly all of the activated carbon manufacturers in the

Philippines’ target market is foreign companies or their main business is for exporting.

To answer this problem, Carbon Plus Corporation would supply this untapped

market. Thus, not only would this benefit the corporation by yielding profits but also this

would greatly affect the target industries, water refilling stations and oil refineries in their

daily production and operations.

VI. 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.

39.63%Market Share

Ratio in Oil = Refineries

Market Share Ratio in Oil =

Refineries

27.93%

Market Share Ratio in Water =

Refilling Stations

Market ShareRatio =

23

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

the market share ratio:

27.93%

72.07%

Market Share of Carbon Plus Corp. for Granular Activated Carbon

Carbon Plus CorpCompetitors

Fig. 2.9 Market Share of Carbon Plus Corporation for Granular Activated Carbon

Annual Supply of the Competitors + Annual Supply of the Company

Annual Supply of the Company

154,108

397,698 + 154,108

353,370

538,200 + 353,370

Market Share Ratio in Water =

Refilling Stations

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39.63%

60.37%

Market Share of Carbon Plus Corporation for Powderized Activated Carbon

Carbon Plus Corp.Competitors

Fig. 2.10 Market Share of Carbon Plus Corporation for Powderized Activated Carbon

VII. Marketing Objective

As many industries are booming and growing throughout the world today, the

industry of activated carbon is not enough to supply these industries that use activated

carbon in their day-to-day operations. Specifically in the Philippines where there are

only approximately 3 activated carbon manufacturers and among them only 1 is situated

in CALABARZON. Thus, industries like oil milling, water treatment and other kinds of

industries in CALABARZON tend to buy activated carbon from distant manufacturers or

even in foreign manufacturers which would cost them a lot higher than buying from a

local manufacturer which supplies the same quality and quantity.

As a response, Carbon Plus Corporation aims to provide these industries with

sufficient amount of high quality activated carbon without taking the cost and

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affordability of the product for granted. It also aims to maximize the full potential of the

available opportunities not just for the company but more of the benefit of its customers.

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.

VIII. 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 this type of carbon for it has the inherent characteristics which give

it an edge among other materials.

Inherent Quality Description

High hardness levels

(> 97%):

Ensures superior material handling and

minimizes dust generation.

High surface area

(up to 1500 m2/g):

Gives high adsorption efficiency

High microporosity

(< 20 Angstroms):

Gives high adsorption and retention capacity.

This is important for the removal of low-

molecular weight organics and trace levels of

contaminants.

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Low ash content: Gives high purity preventing contamination of

adsorbates.

High density Provides for economical containment for the

same level of filtration.

Source: Green Carbon Inc.

Table 2.13 Inherent Characteristics of Coconut Shell as Raw Material for AC

Bearing and Non-Bearing Trees as of 2010

Bearing Non-

Bearing

Cavite 1,055,691 249,771

Laguna 6,591,037 620,550

Batangas 3,898,097 567,588

Rizal 94,713 62,957

Quezon 46,528,580 10,081,356

TOTAL 58,168,118 11,582,222

Source: Philippine Coconut Authority

Table 2.14 Bearing and Non-Bearing Trees as of 2010

Given the data above from Philippine Coconut Authority, the supply of

coconuts in CALABARZON is sufficient to meet the demands of the market.

Thus, this gives the consumers the assurance that the production of activated

carbon would be continuous.

Type of Activated Carbon

Product Name

WeightCompany Details

Product Details

27

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 to

connect the product with the company and for customers to easily remember

it.

Aside from the reasons of using “Carbon Plus” as the name of the

corporation, it also connotes the idea of “something more” within the product.

It gives the product an impression of having an edge or offers a something

different from other similar products. Furthermore, it entails 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. It differentiates the product among other similar products.

Fig. 2.11 Package Label of Carbon Plus Corporation’s Activated Carbon

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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 100% pure coconut shells, the best

material to manufacture activated carbon.

Product Label for Granular and Powderized AC

Fig. 2.12 Product Label for Granular and Powderized AC

500 kilo Sack of Powderized Activated Carbon

Fig. 2.13 500 kilo Sack of Powderized Activated Carbon

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50 kilo Sack of Granular Activated Carbon

Fig. 2.14 50 kilo Sack of Granular 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-base strategy in pricing the product.

Thus, the selling price would be determined through the formula below.

Price per unit = Manufacturing Cost per unit x Mark-Up Rate

From the formula above, the manufacturing cost include all cost directly

related to the manufacture or production of the product. These are cost of raw

materials used, direct labor costs and factory overhead costs.

Carbon Plus Corporation’s mark-up rate is 40% on the total manufacturing

cost. The company perceives that it is reasonable enough and it would yield a

much lower price from that of its competitors.

Manufacturer

Distributors

End-Users

30

C. Distribution Channels

The distribution channel is the path in which the product goes through

untilit reaches the end users. A firm must monitor 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

meet the demand and sustain the 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. 2.15 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. Now, the distributors would be the one to sell the product to the end-

End-Users

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users lessening the cost of selling and advertising for the company. Moreover, to

establish the name of the company and be visible in the market it would also sell

directly to end-users. The company would not compete with its distributors. The

company would directly transact with end-users who are not covered by its

distributors.

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

and critical 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. Joining Industrial Exposition and Trade Fairs

Through joining industrial expositions, the company would have

the opportunity to introduce itself and promote its products to several

industries and businesses. There are a lot of industrial expositions and

trade fairs being held in the Philippines annually. Some are the following:

a. International Water Expo Philippines

b. Manufacturing Technology World Series

c. Enviro-Tech Philippines

2. Demo Presentation to Industries

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Agents of the company would go to different companies and

distributors to promote and demonstrate the company’s products. This is a

way of letting the market test the product and see the quality and

efficiency of the usage of the product. This would cause the company to

manufacture samples and provide visuals and other aids to inform them

the benefits and quality of buying the corporations product.

3. Having a Company Web Site

The company’s web site would be used as a tool for making the

company visible to the public and also, it may also serve for transactions

with consumers to take place.

Advertising and Promotion Expenses

Advertising and Promotional

Activities

Budgeted

Amount

Industrial Expositions and Trade

Fairs

160,000

Demo Presentation to Industries 100,000

Company Web Site 12,000

Total Advertising and Promotional

Expense

272,000

Table 2.15 Advertising and Promotion Expense

s

IX. Competitive Position

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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. Moreover, the corporation offers

powderized activated carbon which is used in oil refineries. There are no manufacturer

of powderized AC in CALABARZON or any nearby towns. Thus, the accessibility of

our company to the target market also adds up to the edge of our company. 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 remote local manufacturers, they would choose to patronize our company

which would not only help us to achieve our goals, but also help them in terms of saving

their costs without sacrificing the quality of the product.

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X. SWOT Analysis

Internal Factors

Strengths Weaknesses

Low-cost products Likely to be costly

Highly marketable products No strong relationship with consumers

Access to resources No market presence or reputation

Suitable economic location Vulnerable to vital staff being sick,

leaving, etc

Favorable access to distribution networks  

Market for the product increases  

High standards with regards to

employment

Strong leadership  

External Factors

Opportunities Threats

Large untapped market Competitors have strong relationship with

consumers

Wide range of market in different

industries

May have an environmental impact

Marketable abroad  

One of the pioneering corporations in the

industry

Table 2.16 SWOT Analysis