In Partial Fulfillment of the Requirements in Marketing Management

PHILSURIN MARKETING PLAN

Submitted by

JEAN DIANE Y.JOVELO

MBA1

UNIVERSITY OF ST. LASALLE

GRADUATE SCHOOL

Submitted to

ENGR. GERALD LOUISE POBLADOR

PROFESSOR

DECEMBER 8, 2018

TITLE
 TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 1

CHAPTER 2 SITUATIONAL ANALYSIS 2

CHAPTER 3 MARKETING STRATEGY 9

CHAPTER 4 FINANCIALS 12

CHAPTER 5 RELATED MARKETING FRAMEWORKS 14

CHAPTER 6 CONTROL 16

CHAPTER 7 BIBLIOGRAPHY 17

APPENDICES

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 Chapter I

Executive Summary

In the late 1990’s the sugar industry was able to break free from the continuous decline of

sugar production since the1950s. This is through the efforts of the National Council of

Sugarcane Producers who initiated the creation of PHILSURIN, as country’s first private

research institution dedicated into breeding better sugar varieties for the sugar industry. The

establishment of the research institution eradicated a possible 85 billion loss in sugar

production through its efforts.

PHILSURIN’s aims to be the leading sugarcane research institution in Asia. Its mission is

to provide appropriate, efficient and cost effective research and development support to the

Philippine sugar industry to improve its competitiveness and attain self-sufficiency.

The Research and Development program of PHILSURIN encompasses breeding,

agronomy, pathology, micro propagation laboratory, soils laboratory and PCS propagation.

With this programs the institute aims to develop new varieties by employing conventional

hybridization techniques such as tissue culture and genomics. It likewise aims to develop cost

effective method for sugarcane farming and crop protection.

In the present, being a research institution who solely relies on the voluntary contribution

of the sugar millers and planters, PHILSURIN faces the challenge of continuing its research

efforts through a depleted funding. It continuously educates the sugar industry stakeholders

of the importance of research for its survival to gain continuous support from them.

The aim of PHILSURIN to penetrate more members who would contribute to the

foundation is planned to be achieved through an effective marketing communication strategy

with the aid of social media and through its Website. Through this platforms, PHILSURIN

would be able to market the benefits of research to the sugar industry as well as maintain the

close relationship with its members both prospective and existing.

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 Chapter II

Situation Analysis

2.1 Market Summary

PHILSURIN as a private research institution that focuses on breeding new sugarcane

varieties have a concrete knowledge of its desired target. And for over 20 years of

providing such services, it has an advantage of having the idea who would need most of

its services and what are the demand of such.

Target Markets:

 Sugar Mills

 Sugar Planter Associations

2.1.1 Market Demographics

The profile of the target market of PHILSURIN consists of the following geographic

and behavior factor:

a. Geographic

PHILSURIN has no limitations in terms of its geographic target market. Its

members reach encompasses sugar mills and planters associations in the

whole Philippines.

Currently, PHILSURIN’s strategy is to connect mainly with the sugar mills and

not on the individual planters association. The target mills that PHILSURIN

wants to encourage to be its members is 27 sugar mills with a total milling

capacity of 204, 300 MT Canes/Day.

b. Behavior

PHILSURIN’s target are millers who have the mindset to keep the

competitiveness of the Philippines Sugar industry through a continuous

improvement not only by their facilities but mostly of the sugarcane varieties

milled.

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2.1.2 Market Needs

PHILSURIN being the only private research institution for breeding new sugarcane

varieties seeks to fulfill the following benefits that are crucial to its members:

o High Yielding Varieties

The contribution that the members are contributing to the institution is a

significant amount especially if such have high production. PHILSURIN aims

to develop and provide high yielding new varieties that will improve the income

of its members.

o High Germination and Immunity to Diseases

It is now inevitable that agricultural crops including sugarcane are susceptible

to diseases thereby affecting production. PHILSURIN aims to provide for

certified clean seed of its offered varieties that have undergone a thorough

experimentation and evaluation to ensure that it would have a high germination

rate and would be resistant to the common sugarcane diseases.

2.1.3 Market Trends

PHILSURIN wants to differentiate itself as the sole research institution that breeds

new sugarcane varieties that are adaptive to climate change and agricultural

mechanization. Moreover, it won’t just stop develop new varieties but to produce

new varieties that are certified to be clean to ensure high germination rate and

immunity to diseases thereby maintaining high production for sugar planters and

mills.

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2.2 SWOT ANALYSIS

Strengths Weaknesses

 Sole private research institution  Depleting funds to support the

dedicated in the breeding of new research and development

sugarcane varieties. programs

 State of the art laboratory  Aging research staffs

equipment’s used for breeding  Minimal research staffs to handle all

 Highly competent and experienced research operations.

research staffs dedicated and  High attrition rate to its young

passionate in research researchers.

 Trademarked to be a certified

breeder of highly effective

sugarcane varieties.

 Most of the sugarcane varieties are

preferred by planters to be used in

their fields.

Opportunities Threats

 External funding partnership with  Unconvinced stakeholders about the

private corporations and NGO’s. importance of research in the sugar

 Environment and Technological industry.

Changes that demands for new

sugarcane varieties.

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  Labor legislations that increases the

labor costs to continually managed

PHILSURIN’s research programs.

 Land reforms that converts

sugarcane fields into subdivisions.

 Economic policies and regulations

that tightens the sugar industry.

2.3 COMPETITION

The closest competition of PHILSURIN in terms of sugarcane breeding is the R&D Sector

of the Sugar Regulatory Administration. This is a government owned research institution

that also aims develop new sugarcane varieties and developments for the sugar industry.

However, on Private sector, currently there is no known competitor of PHILSURIN who

also breeds new sugarcane varieties.

2.4 PRODUCT OFFERING

Since its establishment, PHILSURIN has developed a total of 21 new sugarcane varieties

that are being offered solely for its members.

o The first product that was initially offered by PHILSURIN are the High Yielding

Varieties which have either high LKG/TC, Tonnage per Hectare or both and

o PCS CLEAN Seed which is a hybrid of the HYV products. These seeds are

further processed in a controlled environment in order to ensure its purity and

to have a higher germination rate and immunity to diseases upon planting.

2.5 DISTRIBUTION

The distribution of PHILSURIN Varieties is done twice in every crop year and members

receives a proportionate share of plantlets based on their contributions to PHILSURIN.

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PHILSURIN assigns three regional coordinators for Luzon, Visayas and Mindanao who will

spearhead to propagation of the plantlets for member’s distribution. The different contact persons

of each members are then directed to transact with these coordinator for their allocation and mode

of delivery.

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 Chapter III

MARKETING STRATEGY

The key to the marketing strategy of PHILSURIN is to focus on effectively establishing an effective

communication to its members both prospective and active through the use of social media

platforms and its website. Through this, PHILSURIN would be able to address an easier

information dissemination, a wide market penetration and to effectively market its brand to other

sugar industry stakeholders.

3.1 MARKETING OBJECTIVES

a. Maintain its current contributing members through continuous close communication.

b. Achieve a steady increase of market penetration to increase its members.

3.2 FINANCIAL OBJECTIVES

a. Increase the number of contributing members by 5% every crop year through efficient

marketing campaigns in social media and PHILSURIN website

b. Maintain an annual marketing budget to support the marketing efforts of increasing

members and member communication.

c. Achieve a 20% increase in the contributions for the next three years.

3.3 TARGET MARKETS

With a potential of 27 sugar mill members, where mostly are in the Visayas Region.

PHILSURIN aims to first target as potential members all sugar mills in Negros Occidental and

then extending its efforts to Panay, Oriental and other Visayas regions. After that, it will move to

Mindanao where bigger mills are situated before moving to the Luzon area which is mostly

composed of smaller mills.

3.4 POSITIONING

PHILSURIN will position itself as the leading Sugarcane Breeding Research Institution not

only in the Philippines but also in Asia. This position will be achieved by capitalizing in it competent

staff whose training and experience is at par with international standards. Moreover, it will

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capitalize in its experience in continuously producing competitive sugarcane varieties that are at

par or even exceed foreign sugarcane varieties developed abroad.

3.5 STRATEGIES

Given the fact that PHILSURIN already established itself as a reliable institution when it

comes to sugarcane breeding. The single objective of the marketing plan is to effectively advertise

PHILSURIN and the benefits of sugarcane research to the sugarcane industry stakeholders. Out

of the 29 mills, only 14 mills are currently a member of PHILSURIN. This gives an opportunity to

PHILSURIN to increase its membership by properly marketing the benefits of research to the

sugarcane industry, PHILSURIN’s milestones for the past 20 years and the benefits the existing

members receives from PHILSURIN. Such advertisements will mostly be made through social

media and PHILSURIN website in order to adapt with the current trends in internet marketing and

the vast benefits of social media platforms for marketing efforts of companies. The mentioned

methods of advertisements will demand cost in terms of maintenance and website improvements.

However, these are deemed to be fairly minimal since information for the advertisements are

already in place.

3.6 MARKETING MIX

PHILSURIN’s Marketing program comprises of the following approaches for product, price

and promotion.

 Product: PHILSURIN will market its existing varieties both HYV’s and PCS and the benefits

that its gives to planters.

 Pricing: Contribution will be based on P2/LKG bag of production of interested prospective

members.

 Promotion: The advertising effort will be in the form of video’s, testimonies, and catalogues

presented through social media platforms and PHILSURIN website.

3.7 MARKETING RESEARCH

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 With the decision of its Board of Trustees, PHILSURIN moved all of its operations in

Victorias City, Negros Occidental which is at the heart of the sugar activity in Negros Occidental.

Through this, it was able to garner useful insights from current members and non-members on

how to further improve its services.

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 Chapter IV

FINANCIALS

4.1 FINANCIAL RATIOS

Figure 4.1 Financial Ratios

Current Ratio 29.42

Debt-Equity Ratio 3.05%

Debt Ratio 2.96%

ROE -10.07%

Profit Margin -41.39%

Financial Ratios are important indicator of the financial performance of a company. The

above financial ratios shows the liquidity, debt proportion and profitability margins of PHILSURIN.

In terms of its liquidity, the institution is shown to be highly capable to pay its currently maturing

debts as evidenced by a highly positive current ratio. This is further supported by a low debt ratio,

which means that in terms of asset financing, most of its assets are financed by equity rather than

debt. However, when we look at the profitability ratios of the institution, it could be seen that it is

not performing well in terms of profitability. This is evidenced by a negative ROE and profit margin

which shows how effectively does PHILSURIN utilize its expenses in order to extract a higher

profit in terms of sales and capital. As mentioned in the earlier chapters, PHILSURIN is facing

difficulties in funding thus this marketing plan was established. Through the help of the

implementation of this, PHILSURIN targets to increase membership contribution and to

encourage more members that will support the R and D expenses.

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4.2 CONTRIBUTION FORECAST

Table 4.2 INCREASE IN CONTRIBUTION FORECAST

CY 18-19 CY 19-20 CY 20-21

Project Annual 23,900,000 25,700,000 27,050,000

Contribution Collection

The contribution is based on the assumption of its target mills to be a prospective

members. Increase in the contribution is based on the average annual production of

BISCOM for CY18-19, Oriental Mills (URC controlled mills) and Iloilo Mills for Cy 20-

21.This is in connection to PHILSURIN target to convince these target mills through

personal presentation and continuous advertisements.

4.3 EXPENSE BUDGET

The expense budget will serve as a tool to keep the spending for advertisements on a

target. Any excess will serve as an indicator of any corrections/ modifications that may be

adopted to properly implement the marketing plan.

Table 4.3 MARKETING EXPENSE BUDGET

Expense CY 18-19 CY 19-20 CY 20-21

Web Site Maintenance P120,000 P120,000 P120,000

Professional fees for Video and P120,000 P120,000 P120,000

Presentation Preparation

Social Media Maintenance P60,000 P60,000 P60,000

Total P300,000 P300,000 P300,000

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 CHAPTER V

RELATED MARKETING FRAMEWORK

Frame work Figure 5.1 Steps in

Developing Effective
Communications
Description of framework The framework
elaborates the 8 steps to
effectively establish
marketing
communications that
would result to a
consistent brand
awareness to the target
audience.

Relating to the company The drive of PHILSURIN

is to increase the brand
awareness of its target
members about the
benefits of research to the
survival of the sugar
industry. Through this
framework, the company
would be guided by the
proper flow of how to
establish in integrated
marketing
communication platform
that would be effective in
achieving brand
awareness to the target
members.

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 Frame work Figure 5.2 Making brand
level marketing
communication decisions
and achieving desired
outcomes
Description of framework The framework suggests
the fundamental
decisions necessary to
develop an effective
marketing
communication.
Moreover, it stresses the
key points to consider
when evaluating the
chosen marketing
communication including
its desired outcomes.

Relating to the company As the aim of

PHILSURIN is to
develop a marketing
communication that will
increase its brand
awareness.. This
framework will serve as a
guide about the necessary
decisions that should be
considered from the start
and upto the evaluation
of the project.

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 CHAPTER VI
CONTROLS

6.1 Evaluation Criteria

The purpose of PHILSURIN’s marketing plan is to serve as a guide for the implementation
of the online communication advertisement and channel for PHILSURIN’s members both
prospective and existing. The following areas will be evaluated in order to gauge the plan’s
performance.

Figure 6.1 Evaluation Criteria

Criteria Comments
1. Monthly and Annual Contributions
2. Number of Members
3. Advertising Expenses

6.2 Implementation
The milestones indicated below are the key marketing program for the implementation of the
marketing plan. It is important that each milestone is evaluated to be on time and on budget.

Figure 6.2 Marketing Plan Implementation Chart

Milestone Start Date End Date Budget Assigned
Department
Marketing Plan 08/18 12/18 0 -
Preparation and
Completion
Rebuilding 12/18- 01/19 P 15,000 Admin
PHILSURIN
Website
Establishing 01/19 02/19 P 5,000 Admin
social media
Page and
Accounts
Advertising 02/19 08/19 P25,000 Admin
Campaigns #1
Advertising 09/19 08/20 P50,000 Admin
Campaigns #2
Total P95,000

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 CHAPTER VII
BIBLIOGRAPHY

Chitty, W., Barker, N., & Shimp, T. A. (2012). Integrated marketing communications. Frenchs
Forest, N.S.W.: Pearson Australia.
Kotler, P., & Keller, K. L. (2016). Marketing management. Boston: Pearson.
SRA/Sugar Regulatory Administration.(n.d). Retrieved from https://www.sra.gov.ph/

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APPENDICES

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