Marketing Plan
Content
OLIVAREZ COLLEGE
GRADUATE SCHOOL
1st Semester S.Y. 2013-2014
Marketing Plan
Submitted to:
Dr. Anabelle Bughao-Jamin
Submitted by:
Abelyn C. Bugayong
EXECUTIVE SUMMARY:
Ham and Herbs is a food enterprise created by a Licensed Nutritionist
Dietitian who envisions an opportunity to develop a unique product and in
search for independence and economic growth in terms of employment for
high school graduates who are out school and hone their skills in
Entrepreneurship. While this vision started with solid ideas to form a new
venture on home business, the founder is confident that from having long
years of educating and providing skills to different types of people on Food
Preservation, it is now necessary to transform these ideas
ABOUT THE PRODUCT:
For a small business like this Ham product its uniqueness in taste
coupled with the use of high quality medicinal herbs and spices that aids in
speeding digestion, relieves flatulence, good in nervous disorder, high- in
calcium and is a natural antiseptic is rather new in the market. Culinary
herbs and spices are the main ingredients chosen by the founder for the
reason that such flavors delight the palate, dances in the taste buds and
because its’ color represents health.
A great majority of respondents or 80% of them that will surely
patronize the product are not aware of the blending of herbs and spices not
only taste good but with the use of such plants which has natural sodium
properties which becomes the salt substitute. The permissible levels of
curing salt that was used as preservative in approximately 1/16 tsp. or less
than 2 gms/ 10 kilos of meat. Adding such to the food product prevents
Clostridium botulism, bacteria that can kill a human being when ingested.
Having curing salt in the meat product not only gives meat a reddish hue
color but it also creates a distinct flavour.
Despite the benefits of Nitrite (curing salt) when these compound are
heated and combined with acidic stomach juices they may form nitrosamine
compounds which are found to be carcinogenic. The use of different herbs
and spices counteract the reaction of nitrite compound in the stomach by
way of encouraging better production of balanced and sufficient gastric
juices, harmonize food combinations and fight out toxic foods.
Surprisingly, Nitrite is also formed in the body and is found naturally in
vegetables like cabbage, cauliflower, carrots, celery, lettuce, radishes, beets
and spinach.
TARGET MARKET:
“Taste the intimate blend of flavors” The new food enterprise is offering
to the public the unique taste of its Ham and Herbs product. Unlike the
traditional ham product that was found salty and dry, our product uses
aromatic vegetable substitutes to increase zest and improve the flavor of the
cured meat. This ham product is offered all year round to all customers at an
affordable price.
MANAGEMENT:
Behind Ham and Herbs management are of food preservation experts
and trained professionals from the government who seeks livelihood
activities for income augmentation as well as mothers in the community for
livelihood projects in order to increase food purchasing power of their
families.
Abelyn C. Bugayong, Founder and Owner, has been in the community
service as Head of Public Health Nutrition for twenty six (26) years in the
Government of Paranaque. Her experience providing consultancy services to
small businesses engaged in food processing inspired the formation of this
food enterprise.
Alfredo C. Bayudan, The companion for twenty seven (27) years of the
founder, who currently functions as an experienced product development
enthusiast.
Christine Marie A. Lara, a fellow Nutritionist Dietitian of the founder,
who has been her critique, product analyst for the past twenty five years and
serves as her financial adviser.
ORGANIZATIONAL STRUCTURE:
FOUNDER-OWNER
Abelyn F. Chua
FINANCIAL
ADVISOR
Christine Marie A.
Lara
PRODUCTION
MANAGER
Alfredo c. Bayudan
LABOR 1
LABOR 2
LABOR 3
FINANCIAL SUMMARY:
The market for Ham and Herbs food enterprise is enormous with a
population of 46, 700 the estimated number of households is 9,340. Initially,
the three founding members intend to work part time on this venture while
maintaining a full-time job in their present post. We determine how best to
enlarge our operation by considering expanding the food business into a
medium scale company.
KEYS TO SUCCESS:
Uniqueness of the Product
The Ham and Herbs food enterprise focuses on the uniqueness of its
product and maximizes its potential for success. The blending of different
herbs and spices which creates a distinct taste separates us from the
traditional taste the food consumers experience when eating ham by:
(1) Focusing on blending Herbs and Spices. Our Mission is to be
consistent on the overall palatability of the product and become the leading
brand in Paranaque City.
(2) Keeping the Food Product clean and Safe to eat. Through the use
of fresh meat, as well as to the use of safe ingredients that are within the
permissible levels set by the Food and Drug Administration. Lastly, by
proper handling of raw materials during processing of the meat.
(3) The ham product demands to be of high quality, prepared in
hygienic ways and yet affordable in price.
OBJECTIVES:
The Food Enterprise has a small capital compared to the giant
competitors, but the uniqueness of the product in the world of small business
like this plays a significant chance to become the best quality ham with a
number of potential clients in the city.
BUSINESS DESCRIPTION:
Ham and Herbs food enterprise is a new business that responds to the
clients need for a different taste of ham product. The innovative use of Herbs
and Spices in the meat product that surely creates a distinct taste and aroma
are now the preferred taste of the consumer as reflected in the results of the
survey.
COMPANY ANALYSIS:
The Food Enterprise has identified the real business opportunity of
producing a product which possesses a strong taste, safe to eat and not costly
(within the budget of average income earners)
SWOT ANALYSIS:
Below, are the identified opportunities and threats in the environment, as
well as the particular strengths and weaknesses of the food enterprise that
will either hinder or enable us to succeed
The Food Enterprise have identified and analysed the market and
believes that real opportunity exist to provide services to different sectors of
the society and enables it to favorably compete in the market.
The following diagram summarizes how the SWOT ANALYSIS defines
the Key Success Factors of the market and distinctive competencies of the
Food Enterprises. It weaknesses are addressable and it will be improved over
time.
STRENGTHS
WEAKNESSES
Small business focus
High Quality of ingredients
Founder working full time in
Government office
Few people initially limit serviceable
market
Safe to eat
Available all year round
Affordability
Possesses medicinal properties of Herb
Seasonality of Ham product
Popularity of the product
Building reputation requires funding
and Spices used
OPPORTUNITIES
THREATS
Increase value of sales during holiday
season
Established
competitors
Provides employment
Small budget for operation cost
Growth of local community
Inflationary factors of raw materials
Focus on Profit
Proliferation of different supermarket
offering use of credit cards
DISTINCTIVE
COMPETITORS
and
well-
funded
KEY SUCESS FEATURES
Large company or Leading Brand
Skills
Using technology (machineries) for
mass
production
results
to
unemployment.
Minimal fixed costs which allow us to
keep prices low while remaining
profitable
Small business focus
Local presence in major market
Core strengths in marketing/ strategy
Maximize production over minimize
cost
MARKET PLANNING and ANALYSIS:
Deciding how to present such innovative ideas to the market is critical.
However, since the founder is known within the vicinity of the targeted
market area, the profession itself can vouch and its maker, There are a small
group of people belonging to economically disadvantaged families but a
large percentage of families who resides in the area encompass the market.
MARKET SEGMENTATION:
Environmental Factors
The following factors define the environment in which Food Enterprise
hopes to succeed:
(1) PHYSICAL- A different food business proliferates in the target
market everyday
(2) LEGAL- The creation of the limited liability for a small food
enterprise should be observed
(3) ECONOMIC- Current economic conditions are continuing to
challenge the investors’ views regarding potential return on investment
(4) SOCIAL- Socio-cultural patterns such as life style, values, and
beliefs are changing more quickly. The food enterprise must be seen on the
current trends of the external environment,
(5) TECHNOLOGY- It has a tremendous impact on our own life-styles,
our consumption pattern and economic well- being. The food enterprise
having injected herbs and spices in their meat product gives the innovative
idea on edge over traditional ham produced by Big Companies.
MARKET ANALYSIS:
Target Market Segment Strategy
The target market is defined by the customer wants and needs that
creates the market, such as Buyer Power, threat of conventional competitors
(these firms have established reputation), supplier power, threat of substitute
(capitalist could engage in more advertisement on their product)
MARKET GROWTH
At Barangay San Antonio, having a population of 46, 700/ 9,340
households, the proliferation of different supermarket does not bar the
customers from patronizing the public market where most of the
commodities are found fresh and can be bought at minimal cost/ small grams
or packed.
The strategy and availability of the market is the segment for any food
commodity where customers flock during Saturday and Sundays.
Market Size- is an important factor; it does help to ensure that there will
be initial customers available to patronize the product.
Potential Profit- the potential for profit in the Ham business is high,
based on the overwhelming number of would-be clients versus the size of
the market with limited offers of homemade food products, likely any
competitor can fair in the market in the near future.
VALUE PROPOSITION:
For small and emerging business like the Ham product, the food
enterprise focuses on small production unlike the traditional ham that we
used to eat thereby giving its best in the quality of the ham without
sacrificing its affordability.
Marketing Strategies:
Pricing Strategy
High quality product and yet affordable price will be offered to the
customers. Our product has a lower price compared to leading brand because
it is a home based business no capital needed, the kitchen of the owner
serves as its production unit, where equipment and utensils can be found too.
Pricing structure of production men (3) will be based on P50/2 Kilo of meat
they injected and tie. A total of P150 kilos/ week of cured product are the
expected output of the group.
FINANCIAL ASPECT
Initial Capital required
Pork (Pique/ Kasim)
P 180.00/ Kilo
Curing Solution
P 240.00/ Pack
Ingredient for dry mixture
P 120.00
Herbs and Spices
P 100.00
Pineapple Juice
P 47.00/ Can
Cost and return analysis of curing a 10 kg Batch of Item
Estimated Income
Total Yield of 12.5 kg Ham
P 700.00/ kilo
Or selling price of
Less Estimated Expenses
Pork (10kg) (180.00/kilo)
P 1,800.00/ 10 kilos
Cost of Ingredients
P 507.00
Tools
P 680.00
Packaging and Labelling
P 1000.00
Contingency (18%)
P 717.00
P 4717.00
Total Expenses
Unit Cost
Mark Up= Rate x Unit Cost
P 471.00
= 50% x P 471.00
Selling Price = P 706.50/Kilo
Promotion Strategy
Hanging of Tarpaulin in front of the house of owner will be the initial
information dissemination campaign. Distribution of fliers among office
mates and to the different offices of the City Hall will be done in order to
create awareness of the new product available at the local market.
Distribution Strategy
It is anticipated by the owner that during period less production will be
made as these coincide with the demand. First come First serve policy will
be observed. Placing of orders should be made two (2) days ahead prior to
pick up of foodstuff.
DISTRIBUTION CHANNEL
Suppliers
H and H production Unit
Retailers/ Customers
PRODUCT FLOW CHART
Inject into meat 100cc pumping solution/1 kilo
Rub all over the surface with dry mixture
Put in a plastic container with cover. And
place in a well-ventilated room in 3 days without
refrigerator or in middle part of the refrigerator
if one week ham is desired.
Cooking of cured meat
FINANCIAL FORECASTING
175,0
00
250
200
140,0
00
150
105,0
00
100
70,00
0
50
35,00
0
0
Php.
Kg
SOCIAL ASPECT:
The future of Ham and Herbs Food Enterprise will depend on how
consumers patronize the product. If in the event the company thrived and
turn out to be a success. The owner plans to allocate (5%) of its earnings to
help the marginalized group specifically by setting up a feeding program for
undernourished mother and children ages (6-12 mos.) until such time these
group reach their normal nutritional status, or to be fully rehabilitated after a
span of 6 months.
After which, another batch of malnourished children will be prioritized
those belonging to below normal to very low group. Food Supplementation
Program will start at Barangay San Antonio Valley 1.
CONCLUSION:
Having an affirmative feedback amongst respondents as regards to the
ham product, the founder as a Licensed Nutritionist- Dietitian in a
government institution spanning three (3) decades is now excited to
endeavour into the world of food business. That being said, the founder is
fully aware that a novice business enterprise as such will surely face stiff
competition against the leading and giant competitors like Pure foods, CDO
etc.
Though that may be the case, the founder assures the consumers that by
giving her best concerning the science and art of food business it will enable
the food enterprise to have that competitive edge against the Giant Brands.
GRADUATE SCHOOL
1st Semester S.Y. 2013-2014
Marketing Plan
Submitted to:
Dr. Anabelle Bughao-Jamin
Submitted by:
Abelyn C. Bugayong
EXECUTIVE SUMMARY:
Ham and Herbs is a food enterprise created by a Licensed Nutritionist
Dietitian who envisions an opportunity to develop a unique product and in
search for independence and economic growth in terms of employment for
high school graduates who are out school and hone their skills in
Entrepreneurship. While this vision started with solid ideas to form a new
venture on home business, the founder is confident that from having long
years of educating and providing skills to different types of people on Food
Preservation, it is now necessary to transform these ideas
ABOUT THE PRODUCT:
For a small business like this Ham product its uniqueness in taste
coupled with the use of high quality medicinal herbs and spices that aids in
speeding digestion, relieves flatulence, good in nervous disorder, high- in
calcium and is a natural antiseptic is rather new in the market. Culinary
herbs and spices are the main ingredients chosen by the founder for the
reason that such flavors delight the palate, dances in the taste buds and
because its’ color represents health.
A great majority of respondents or 80% of them that will surely
patronize the product are not aware of the blending of herbs and spices not
only taste good but with the use of such plants which has natural sodium
properties which becomes the salt substitute. The permissible levels of
curing salt that was used as preservative in approximately 1/16 tsp. or less
than 2 gms/ 10 kilos of meat. Adding such to the food product prevents
Clostridium botulism, bacteria that can kill a human being when ingested.
Having curing salt in the meat product not only gives meat a reddish hue
color but it also creates a distinct flavour.
Despite the benefits of Nitrite (curing salt) when these compound are
heated and combined with acidic stomach juices they may form nitrosamine
compounds which are found to be carcinogenic. The use of different herbs
and spices counteract the reaction of nitrite compound in the stomach by
way of encouraging better production of balanced and sufficient gastric
juices, harmonize food combinations and fight out toxic foods.
Surprisingly, Nitrite is also formed in the body and is found naturally in
vegetables like cabbage, cauliflower, carrots, celery, lettuce, radishes, beets
and spinach.
TARGET MARKET:
“Taste the intimate blend of flavors” The new food enterprise is offering
to the public the unique taste of its Ham and Herbs product. Unlike the
traditional ham product that was found salty and dry, our product uses
aromatic vegetable substitutes to increase zest and improve the flavor of the
cured meat. This ham product is offered all year round to all customers at an
affordable price.
MANAGEMENT:
Behind Ham and Herbs management are of food preservation experts
and trained professionals from the government who seeks livelihood
activities for income augmentation as well as mothers in the community for
livelihood projects in order to increase food purchasing power of their
families.
Abelyn C. Bugayong, Founder and Owner, has been in the community
service as Head of Public Health Nutrition for twenty six (26) years in the
Government of Paranaque. Her experience providing consultancy services to
small businesses engaged in food processing inspired the formation of this
food enterprise.
Alfredo C. Bayudan, The companion for twenty seven (27) years of the
founder, who currently functions as an experienced product development
enthusiast.
Christine Marie A. Lara, a fellow Nutritionist Dietitian of the founder,
who has been her critique, product analyst for the past twenty five years and
serves as her financial adviser.
ORGANIZATIONAL STRUCTURE:
FOUNDER-OWNER
Abelyn F. Chua
FINANCIAL
ADVISOR
Christine Marie A.
Lara
PRODUCTION
MANAGER
Alfredo c. Bayudan
LABOR 1
LABOR 2
LABOR 3
FINANCIAL SUMMARY:
The market for Ham and Herbs food enterprise is enormous with a
population of 46, 700 the estimated number of households is 9,340. Initially,
the three founding members intend to work part time on this venture while
maintaining a full-time job in their present post. We determine how best to
enlarge our operation by considering expanding the food business into a
medium scale company.
KEYS TO SUCCESS:
Uniqueness of the Product
The Ham and Herbs food enterprise focuses on the uniqueness of its
product and maximizes its potential for success. The blending of different
herbs and spices which creates a distinct taste separates us from the
traditional taste the food consumers experience when eating ham by:
(1) Focusing on blending Herbs and Spices. Our Mission is to be
consistent on the overall palatability of the product and become the leading
brand in Paranaque City.
(2) Keeping the Food Product clean and Safe to eat. Through the use
of fresh meat, as well as to the use of safe ingredients that are within the
permissible levels set by the Food and Drug Administration. Lastly, by
proper handling of raw materials during processing of the meat.
(3) The ham product demands to be of high quality, prepared in
hygienic ways and yet affordable in price.
OBJECTIVES:
The Food Enterprise has a small capital compared to the giant
competitors, but the uniqueness of the product in the world of small business
like this plays a significant chance to become the best quality ham with a
number of potential clients in the city.
BUSINESS DESCRIPTION:
Ham and Herbs food enterprise is a new business that responds to the
clients need for a different taste of ham product. The innovative use of Herbs
and Spices in the meat product that surely creates a distinct taste and aroma
are now the preferred taste of the consumer as reflected in the results of the
survey.
COMPANY ANALYSIS:
The Food Enterprise has identified the real business opportunity of
producing a product which possesses a strong taste, safe to eat and not costly
(within the budget of average income earners)
SWOT ANALYSIS:
Below, are the identified opportunities and threats in the environment, as
well as the particular strengths and weaknesses of the food enterprise that
will either hinder or enable us to succeed
The Food Enterprise have identified and analysed the market and
believes that real opportunity exist to provide services to different sectors of
the society and enables it to favorably compete in the market.
The following diagram summarizes how the SWOT ANALYSIS defines
the Key Success Factors of the market and distinctive competencies of the
Food Enterprises. It weaknesses are addressable and it will be improved over
time.
STRENGTHS
WEAKNESSES
Small business focus
High Quality of ingredients
Founder working full time in
Government office
Few people initially limit serviceable
market
Safe to eat
Available all year round
Affordability
Possesses medicinal properties of Herb
Seasonality of Ham product
Popularity of the product
Building reputation requires funding
and Spices used
OPPORTUNITIES
THREATS
Increase value of sales during holiday
season
Established
competitors
Provides employment
Small budget for operation cost
Growth of local community
Inflationary factors of raw materials
Focus on Profit
Proliferation of different supermarket
offering use of credit cards
DISTINCTIVE
COMPETITORS
and
well-
funded
KEY SUCESS FEATURES
Large company or Leading Brand
Skills
Using technology (machineries) for
mass
production
results
to
unemployment.
Minimal fixed costs which allow us to
keep prices low while remaining
profitable
Small business focus
Local presence in major market
Core strengths in marketing/ strategy
Maximize production over minimize
cost
MARKET PLANNING and ANALYSIS:
Deciding how to present such innovative ideas to the market is critical.
However, since the founder is known within the vicinity of the targeted
market area, the profession itself can vouch and its maker, There are a small
group of people belonging to economically disadvantaged families but a
large percentage of families who resides in the area encompass the market.
MARKET SEGMENTATION:
Environmental Factors
The following factors define the environment in which Food Enterprise
hopes to succeed:
(1) PHYSICAL- A different food business proliferates in the target
market everyday
(2) LEGAL- The creation of the limited liability for a small food
enterprise should be observed
(3) ECONOMIC- Current economic conditions are continuing to
challenge the investors’ views regarding potential return on investment
(4) SOCIAL- Socio-cultural patterns such as life style, values, and
beliefs are changing more quickly. The food enterprise must be seen on the
current trends of the external environment,
(5) TECHNOLOGY- It has a tremendous impact on our own life-styles,
our consumption pattern and economic well- being. The food enterprise
having injected herbs and spices in their meat product gives the innovative
idea on edge over traditional ham produced by Big Companies.
MARKET ANALYSIS:
Target Market Segment Strategy
The target market is defined by the customer wants and needs that
creates the market, such as Buyer Power, threat of conventional competitors
(these firms have established reputation), supplier power, threat of substitute
(capitalist could engage in more advertisement on their product)
MARKET GROWTH
At Barangay San Antonio, having a population of 46, 700/ 9,340
households, the proliferation of different supermarket does not bar the
customers from patronizing the public market where most of the
commodities are found fresh and can be bought at minimal cost/ small grams
or packed.
The strategy and availability of the market is the segment for any food
commodity where customers flock during Saturday and Sundays.
Market Size- is an important factor; it does help to ensure that there will
be initial customers available to patronize the product.
Potential Profit- the potential for profit in the Ham business is high,
based on the overwhelming number of would-be clients versus the size of
the market with limited offers of homemade food products, likely any
competitor can fair in the market in the near future.
VALUE PROPOSITION:
For small and emerging business like the Ham product, the food
enterprise focuses on small production unlike the traditional ham that we
used to eat thereby giving its best in the quality of the ham without
sacrificing its affordability.
Marketing Strategies:
Pricing Strategy
High quality product and yet affordable price will be offered to the
customers. Our product has a lower price compared to leading brand because
it is a home based business no capital needed, the kitchen of the owner
serves as its production unit, where equipment and utensils can be found too.
Pricing structure of production men (3) will be based on P50/2 Kilo of meat
they injected and tie. A total of P150 kilos/ week of cured product are the
expected output of the group.
FINANCIAL ASPECT
Initial Capital required
Pork (Pique/ Kasim)
P 180.00/ Kilo
Curing Solution
P 240.00/ Pack
Ingredient for dry mixture
P 120.00
Herbs and Spices
P 100.00
Pineapple Juice
P 47.00/ Can
Cost and return analysis of curing a 10 kg Batch of Item
Estimated Income
Total Yield of 12.5 kg Ham
P 700.00/ kilo
Or selling price of
Less Estimated Expenses
Pork (10kg) (180.00/kilo)
P 1,800.00/ 10 kilos
Cost of Ingredients
P 507.00
Tools
P 680.00
Packaging and Labelling
P 1000.00
Contingency (18%)
P 717.00
P 4717.00
Total Expenses
Unit Cost
Mark Up= Rate x Unit Cost
P 471.00
= 50% x P 471.00
Selling Price = P 706.50/Kilo
Promotion Strategy
Hanging of Tarpaulin in front of the house of owner will be the initial
information dissemination campaign. Distribution of fliers among office
mates and to the different offices of the City Hall will be done in order to
create awareness of the new product available at the local market.
Distribution Strategy
It is anticipated by the owner that during period less production will be
made as these coincide with the demand. First come First serve policy will
be observed. Placing of orders should be made two (2) days ahead prior to
pick up of foodstuff.
DISTRIBUTION CHANNEL
Suppliers
H and H production Unit
Retailers/ Customers
PRODUCT FLOW CHART
Inject into meat 100cc pumping solution/1 kilo
Rub all over the surface with dry mixture
Put in a plastic container with cover. And
place in a well-ventilated room in 3 days without
refrigerator or in middle part of the refrigerator
if one week ham is desired.
Cooking of cured meat
FINANCIAL FORECASTING
175,0
00
250
200
140,0
00
150
105,0
00
100
70,00
0
50
35,00
0
0
Php.
Kg
SOCIAL ASPECT:
The future of Ham and Herbs Food Enterprise will depend on how
consumers patronize the product. If in the event the company thrived and
turn out to be a success. The owner plans to allocate (5%) of its earnings to
help the marginalized group specifically by setting up a feeding program for
undernourished mother and children ages (6-12 mos.) until such time these
group reach their normal nutritional status, or to be fully rehabilitated after a
span of 6 months.
After which, another batch of malnourished children will be prioritized
those belonging to below normal to very low group. Food Supplementation
Program will start at Barangay San Antonio Valley 1.
CONCLUSION:
Having an affirmative feedback amongst respondents as regards to the
ham product, the founder as a Licensed Nutritionist- Dietitian in a
government institution spanning three (3) decades is now excited to
endeavour into the world of food business. That being said, the founder is
fully aware that a novice business enterprise as such will surely face stiff
competition against the leading and giant competitors like Pure foods, CDO
etc.
Though that may be the case, the founder assures the consumers that by
giving her best concerning the science and art of food business it will enable
the food enterprise to have that competitive edge against the Giant Brands.
