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Institute of Accounts, Business, and Finance

Far Eastern University


Manila

A PROPOSED MARKETING PLAN FOR

In partial fulfilment of the course requirements in MKT7 –


Marketing Management

Abigail Pablo
Hector Armada
Benjamin Roldan
Kenneth Simpao
Leo-Gibbs Tapiru
Bryan Villalon

February 2011
Institute of Accounts, Business, and Finance
Far Eastern University
Manila

SPONGE BOMB Dirt and Stain Remover


MARKETING PLAN
EVALUATOR’S RATING SHEET

This is to certify that the proposed Marketing Plan


for Gana Cleaners Philippines, Inc.
for Sponge Bomb Dirt and Stain Remover has been evaluated by the
Panel of Evaluators using the set criteria
on February 28, 2011.

This Marketing Plan merited a


rating of _______% with a grade equivalent of _______.

Panel of Evaluators
_____________________________
_____________________________
_____________________________
Acknowledgement

With love and faithful wishes


TABLE OF CONTENTS

I. EXECUTIVE SUMMARY
II. CURRENT MARKETING SITUATION
A. Macro-environment Analysis
B. Market Situation
C. Competitive Situation
1. Porter’s Framework
2. Competitors’ Profile Matrix
III. OPPORTUNITY ANALYSIS
Company Background
A. SWOT Analysis
IV. OBJECTIVES
A. Marketing Objectives
B. Financial Objectives
V. MARKETING STRATEGY
A. Target Market
B. Positioning Statement
C. Product Strategy
D. Price Strategy
E. Place Strategy
F. Promotion Strategy
VI. ACTION PROGRAMS
VII. FINANCIAL PROJECTION
A. Sales Forecast
B. Projected Income Statement
VIII. IMPLEMENTATION AND CONTROL
EXECUTIVE SUMMARY

Gana Cleaner Co., Ltd. is preparing to launch one of its newest addition to its
roster of innovative products - Sponge Bomb™ Dirt and Stain Remover in a mature
market. We can compete with both surface cleaners and specialty cleaners because our
product offers a unique combination of advanced features and functionality at a value-
added price. We are targeting specific segments in the consumer and business markets,
taking advantage of the growing interest and need for a cleaning aid that is not only
effective and affordable but also versatile enough to be used on a variety of surfaces,
safe (milder formulation, safe on skin, low toxicity level), environment friendly, and most
of all, makes cleaning and removing surface stains easy.
II. CURRENT MARKETING SITUATION

A. Macro-Environment Analysis

POLITICAL
There are many political groups who are advocates of preserving our natural
environment and magic foam is beneficial for this matter. Political groups support more
environmental friendly products such as magic foam because it only needs water to
remove stains and no other chemicals are needed. Furthermore, magic foam is reusable
up to 10 times. For example, a housewife cleans once per week. She can use one magic
foam for two months which is very cost effective.
Conversely, political groups might contest the disposal of the product. Since
magic foam is foam and it cannot be dump directly to landfills because it has non-
biodegradable materials, the only thing to do is to recycle. A disposal instruction can be
attached in the product so that the product-users will know how to properly dispose the
product; and that is to recycle it. Certain malls in the metro collect recyclable materials.
In this manner, even the disposal is environment friendly.

ECONOMIC
The growth in cleaning products has maintained a steadily upward trend
throughout the recession, and most marketers have faced the fact that this is no passing
fad. Growing consumer awareness for natural products, coupled with a growing supply
of natural raw ingredients, helped this market segment expand by nearly 12% through
even the most difficult economic crunch.
Even beyond the actual products, consumers have also grown increasingly
aware of and concerned about the environmental and sustainability practices of their
favourite brands. Reducing waste, packaging, and energy consumption is on everyone’s
minds, forcing companies to evolve their operations to meet consumer demand. While
today’s consumers are concerned about value, they also seek products and brands from
companies whose values they can identify with. This movement has shaped the trend
toward value packaging, concentrated and combination products, as well as
reformulations—such as the eradication of phosphates from dishwasher detergent.
TECHNOLOGICAL
The innovation of stain removers from one chemical to those complicated
chemical detergents has been gaining attention for the past centuries. However, these
innovations are detrimental to humans. The revolutionary stain remover which only
needs water is the most environmental friendly innovation one has ever seen. This
innovative product is safe for the skin, eyes, nose and hands for it does not contain any
noxious component.

SOCIO-CULTURAL
Traditionally, women have primarily been the employees of their own home. For
centuries, it was the men who worked jobs to make money and the women who
remained at home to raise the children and fulfill the household. Overtime, it is clear that
women's roles have changed. This had caused the trend for products that are easy to
use and very convenient in order for other household members to perform task just like
the way it should be.

NATURAL
Water is everywhere. Nowadays, water is very accessible to human beings. The
one-of-a-kind feature of magic foam is it only needs water to remove stains, thus,
removing stain is quick and easy. The trend for this product is in demand because it
protects the environment in ways that it protects water. Unlike detergents when thrown
away and goes downstream it will make the water very basic that will create algal
blooms because of phosphate contents. Algal blooms consume all dissolved oxygen in
water thus decreasing the life span of water life

B. Market Situation

Size and Growth

The household cleaners market can be divided into two categories: surface cleaners and
specialty cleaners. The surface cleaners category comprises six product segments: all-
purpose cleaners/disinfectants, non-abrasive tub/tile cleaners, scouring pads/sponges,
glass cleaners/ammonia, abrasive tub/tile cleaners, and floor cleaners/waxes. The
specialty cleaners category also covers six product segments: rug/upholstery cleaners,
toilet bowl cleaners, drain openers, spray disinfectants, oven cleaners, and metal
polishes.

Promotions were widespread in surface care in 2009 as manufacturers tried to stimulate


demand during the economic slowdown. As consumers looked for better value for their
money, brands such as Kiwi Kleen, Lysol and Zim took advantage by offering additional
volume while maintaining prices. Other brands offered in-store price discounts through
chained retailers to persuade people to purchase their products.

A recent survey by Taylor Nelson Sofres (TNS) Superpanel (a leading market


researcher) on sales of household cleaning products in the world suggests that the
sector has expanded by 10 percent since August 2009. (www.tnsglobal.com)

The market bounced back from a slowdown and grew an estimated 10% in 2009, to $7.1
billion. Packaged Facts estimates the market for household cleaning products continued
to grow, but at a slower pace to $7.3 billion in 20010.

Advances in market value will continue to result from new products that convince
consumers of the need to clean differently or that accomplish cleaning chores easier or
faster. Wipes, fresheners and spot removers will be among the fastest growing products.
TNS found that growth has largely been driven by new product
developments and innovations in the market, with new products such as single-use,
multi purpose cleaning wipes having a significant impact.

Customer Needs, Perception and Buying-behavior trends

Two-thirds of consumers globally buy cleaning products on the basis of value-for-


money either 'most' or 'all the time'.

Environmentalism and the move toward sustainability is becoming a meaningful


driver of consumer behavior in household care, but is secondary to most
purchase influencers
Irrespective of whether consumers like cleaning their houses, it is something that
is generally deemed to be highly important.

The most significant growth in household cleaning products is occurring in the


emerging markets.

Product launch trend data offer some insight about the direction of household cleaning
products. General purpose cleaners generally account for the highest share of
consumers' household cleaning spend. Air fresheners are well placed to capitalize on
the powerful influence of scent on consumers' emotional wellbeing and the fact that
people are gravitating towards their homes amid the economic downturn. Bleach spend
in many markets is falling amid concerns about formulation and the growing efficacy of
general purpose cleaners.

Implications: Emerging markets represent the 'path to growth' in household care.

A preoccupation with health and wellbeing also exerts significant influence on


household cleaning attitudes, motivations and preferences.

Consumers explicitly recognize the link between good hygiene and wellbeing via a 'feel-
good factor' that is obtained from doing the cleaning and/or the results obtained.
Consumers are less able to relate to the idea that the act of household cleaning itself is
therapeutic. Most consumers are aware of and concerned about the negative health
effects of poor home hygiene. Fears over ingredient harshness and safety in household
care products are influencing consumer choices, with the halo surrounding natural
formulations becoming more apparent. Sensory benefits can also boost the wellbeing
factor of household care products.

Implications: The industry must strive towards better associating household cleaning
products with wellness.

Value for money considerations heavily influence household product choice and
the generally favorable perception of private label branded cleaning products.
Value-consciousness is a highly pervasive influence of many household care product
choices. Private label household cleaning products have increasing credibility with
consumers, but the habitual buying of preferred brands is still relatively commonplace.
Word-of-mouth recommendations and product samples are also perceived to exert some
influence on product choice.

Implications: Be wary of putting a disproportionate focus on price in responding to


consumers' value-consciousness.

Convenience and efficacy heavily influence household cleaning choices due to


both an inherent dislike of cleaning and perceived time scarcity.

The majority of consumers both dislike household chores and feel constrained by time
scarcity. Efficacy and multi-purpose benefits are deemed influential to consumers, but
less so than other benefits. Minimizing time spent doing housework is important to
consumers, but is not fully reflected in the perceived influence of time-saving product
features.

Consumers attach more importance to ease of use than ease of storage, but both are
highly influential attributes shaping household care preferences.

Implications: Consumers are looking for ways to minimize time and effort spent on doing
their housework, and household care brands must outperform rivals in this critical area.

Ethicality and sustainability is a theme that continues to gain momentum in


household care product choices.

A notable segment of consumers are deliberately avoiding companies and brands with a
poor environmental reputation and are also paying attention to sustainable packaging
issues.

Ethical and environmental consumerism drives the demand for more 'virtuous
formulation' and 'virtuous production.
Implications: Environmentalism and the move toward sustainability is becoming a
meaningful driver of consumer behavior in household care, but is secondary to most
purchase influencers.

C. Product Description

Features Benefits Advantages


 Soft, flexible cleaning  Removes otherwise  Only needs water to
pad that requires only a “uncleanable”, effectively clean most
touch of water permanent, or hard-to- stains – no chemical
 Melamine foam stain clean external markings cleaners or soaps
remover from surfaces required
 Made on innovative white  Makes cleaning and  Portable and easy-to-
polymeric foam with removing hard to use
microporous open cell remove surface stains  Safe compared to
 9 cm x 6 cm x 4 cm simple and easy chemical cleaners
 Lightweight, compact,  Increased productivity. whose overall toxicity
portable Saves time and effort can reach very high
since stains can be levels
removed without the  Does not pose health
need for prolonged risks particularly to
scrubbing children
 Safe for indirect food  Saves money since it
contacts can be used on a variety
of surfaces without the
need for additional
chemical cleaners
 Does not cause irritation
to the eyes, skin, nose,
and skin.
 Helps protect the
environment by keeping
toxicity and pollution
levels under control
D. Competitive Situation

Porter’s Framework
Competitor Analysis
OPPORTUNITY ANALYSIS

A. Company Background

Gana Cleaner Co., Ltd is a diversified manufacturing company with the overriding
goal of providing convenience in our life and diversity in the choice of cleaning products.

Through constant research and development, and investment, Gana has been
growing rapidly providing customers with a wide range of innovative, quality products.

We have been making great efforts to improve our technology for diversified
products made of Poly Vinyl Alcohol acetal sponge which is highly utilizable for various
purposes.

We are committed to providing quality products by developing technology of


multipurpose PVA sponge and by maintaining our proprietary technology in every PVA-
related material. All our staff in Gana will continuously make efforts to meet the needs of
our customers.
B. SWOT Analysis

Strengths Opportunities
• Easy to use • Filipinos considers cleanliness as an
• Lightweight. Can be helpful important part of living
especially on the delivery • Sponge Bomb can also be used by
• Non-abrasive. Can be used by companies in the country. Example is
individuals sensitive to chemicals, i.e. carwash and car repair business
asthmatics • The number of students who lives in
• Environment-friendly. Many people the boarding house is increasing. Since they
who take care of the environment will live alone, they would want a cleaning
find it useful material that is easy to use
• Customers has no knowledge of • Group of environmentalists who dislike
other competitors which makes magic using harmful chemicals as cleaners can
foam looks like a new product giving it a contribute to the popularity of the magic
big share in the customers mind foam
• Can be used safely over various • Filipinos can be easily attracted to a
surfaces product when they saw it working with their
• Once implemented, surfaces own eyes, so public demo using magic foam
cleaned will become easier to clean and is good.
stay cleaner for long period of time
• It will remove the need for most
other cleaning utensils. No chemicals,
goggles, masks, respirators, gloves and
other scrubbing tools required
• Can be easily cut to a size that fits
the required cleaning application,
reducing wastage

Weaknesses Threats
• Some people in the Philippines are • Economic instability of the Philippines
afraid to try new things and since most • Because Sponge Bomb is produced by
of the people has no knowledge of the a foreign corporation, it is highly sensitive to
magic foam, penetrating the market will the changes in customs and importation laws
be hard • Natural disasters is always a threats to
• The company that produces the every corporation
magic foam is not known in the • Since magic foam came from a Korean
Philippines Company, territorial dispute between North
• Its closest competitor is a well and South Korea can have a big effect on
known company here in the Philippines magic foam
• Philippines has many patriotic citizens
that doesn’t entertain foreign products
• Some Filipinos considers trust when
buying products and some cleaners are
already have a share in the hearts of the
customers
Weighted
Key Internal Factors Weight Rating
Score
Strengths
Easy to use 0.10 2 0.20
Lightweight and portable 0.02 4 0.08
Non-abrasive 0.08 3 0.24
Environment friendly 0.07 2 0.14
Customers has no knowledge of other
0.03 3 0.09
competitors
No damage to paintwork or to the surfaces
0.10 3 0.30
cleaned
Surfaces cleaned will become easier to clean
0.10 3 0.30
and stay cleaner for long period of time
It will remove the need for most other cleaning
0.10 3 0.30
tools
Can be easily cut to a size that fits the
0.05 4 0.20
required cleaning application
It has a wide range of area where it can be 0.20
0.10 2
use
Weaknesses
Some people in the Philippines are afraid to
0.10 2 0.20
try new things
Company that produces the magic foam is not
0.05 3 0.15
known in the Philippines
Its closest competitor is a well-known
0.10 3 0.30
company here in the Philippines
TOTAL 1.00 2.70
Weighted
Key External Factors Weight Rating
Score
Opportunities
Filipinos considers cleanliness as an important
0.07 2 0.14
part of living
It foam can also be used by companies in the
0.13 3 0.39
country
The number of students who lives in the
0.30
boarding house is increasing that can be a 0.10 3
target market
Environmentalists who dislike using harmful
0.10 2 0.20
chemicals can contribute to its popularity
Filipinos can be easily attracted to a product
0.07 3 0.21
when they see it working with their own eyes
Threats
Economic instability of the Philippines 0.12 2 0.24
It is highly sensitive to the changes in customs
0.08 3 0.24
and importation laws
Natural disasters is always a threats to every
0.10 3 0.30
corporation
Territorial dispute between North and South
0.10 4 0.40
Korea can have a big effect on its profitability
Philippines has many patriotic citizens that
0.05 3 0.15
doesn’t entertain foreign products
Some Filipinos considers trust when buying
0.08 3 0.24
products
TOTAL 1.00 2.81
III. OBJECTIVES

We have set aggressive but achievable objectives for the first and second year of
market entry.

A. Marketing Objectives

To increase brand and product awareness to 67% by the end of 2011.

B. Financial Objectives

V. MARKETING STRATEGY
This marketing strategy is done in order to fully utilize our limited resources and
concentrate on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. We make sure that these strategies are centered on our goal to
provide satisfaction to customers.

A. Target Market

Primary Market
Our primary target market consist of females in the National Capital Region,
aged 25-44, Class B and C1, who are responsible of maintaining the household.

Secondary Market
We will also target businesses that require a cleaning material that can help them
in the cleaning process. Examples of those businesses that can be targeted are
carwash, business that offers janitorial services, car repair shops, etc.

B. Positioning
Sponge Bomb is positioned as a new generation cleaning material that uses no
harmful chemicals to provide its user the safety while cleaning. Its wide range of uses
and ease of use are what distinguishes Sponge Bomb from any other cleaning materials.
People can now enjoy a stress-free cleaning.
We chose the name SpongeBomb because of its uniqueness. The name creates
a long-lasting image of a breakthrough in cleaning on the customers mind. The use of
the word “bomb” depicts the idea of a blast and a cleaning agent that gives a blast
means ultimate cleaning.
Our suggested tagline is “blows stains away”. This positioning statement can
help us communicate with our customers in promoting our product. The use of the word
blow in the tagline is what relates it to our product name. Having the word “Bomb” on
our cleaning product’s name means that it can blow away something, and that
something is what the cleaning products are made for, stains. It also makes the brand
name interesting because it figures an ease in the hardship of cleaning the stains.

C. Competitive Strategies

Product

As part of our product strategy, we will introduce Sponge Bomb in two packages.
It will be sold individually which caters to the need of the household. It can also be
purchased in a special value pack containing 4 Sponge Bomb Dirt and Stain Removers.
This pack will cater businesses that need a huge amount of the product.

Price
Part of our pricing strategy is the analysis of price of our competitors, whether
direct or indirect.
The Sponge Bomb will be priced at SRP of P 65 per piece and a special pack
with four pieces at P235. Sponge Bomb was priced based on the average price of the
industry which is not too expensive neither cheap suitable to A, B and broad C
consumers. The consumer will have purchase discount for buying more pieces of
SPONGE BOMB than buying a piece.

Promotions
Advertising should be targeted towards the prospective audience in such a way that
it forms a positive impact on the customer and in the process creates brand recognition.
• Website/Web ads
In the Philippines the Internet is growing. According to ITU, there are 27,900,000
Internet users as of June/09, representing 29.7% of the population. A website or
Facebook page for the product will serve as a portal for the product information and
at the same time to serve customer inquiries for the product.
• Television Commercials
TV is definitely a good medium in reaching consumers and developing product
awareness. We will air a TV commercial that will be focusing on introducing the
product. The commercial will feature common people and no celebrities to lower cost
since our first target is to familiarize the people with the product.
• Print Ads
The visual image has become an increasingly popular communication tool for
standardizing advertising campaigns. One of the media that we encounter every day
is print media, where words and pictures work together to produce a creative
advertising concept. In the country there is a big population who reads newspapers
and magazines to source out information. We are planning to feature the product in
magazines like “Good Housekeeping” and other household magazines to increase
consumer awareness.
• Personal Selling / Door to Door Promotions
Sometimes you would like to target a specific group in a specific area. Door-to-door
promotion could be the best way to go about this. It will be an easy way to reach
households using by door-to-door selling. We will communicate straight to the
consumer with advertising techniques such as fliers, catalogue distribution,
promotional letters, street advertising and also product demos. This will be a chance
to reach customers who would not have gone to the shops and to lower cost that
takes part to promotion.

Place

As for our product, Sponge Bomb, that is relatively new to the market, we are dedicated
to place it in SM Supermarkets and ACE Hardware Branches nationwide. These stores
will give us an advantage to be known nationwide as it is place in the super malls and
supermarkets of the country where people are mostly go shopping and or just simply
standing by. We will implement selective coverage to reduce our costs.
VI. ACTION PROGRAMS
A. Advertising and Promotion

Marketing Tools Scheduled Activities

Television Television is one of the most powerful media tools. We will be


Commercials airing teasers during the 1st week of March to arouse curiosity
and create buzz about the product. After that, full commercials
will be aired during the 2nd week. This will allow us to reach our
target market and create product awareness. The commercial
will also allow us to communicate the product’s features,
benefits, and advantages. The commercial will feature layman
endorsers that our target market can relate to.

Website and Social In the Philippines the population of Internet users is growing.
Networking Sites According to ITU, there are 27,900,000 Internet users as of
Pages June/09, representing 29.7% of the population. An interactive
website will be set up using free web-hosting starting March.
Social networking sites (Facebook, Multiply, etc) pages will also
be utilized. These will serve as portals product information and
at the same time to serve as venue for customer inquiries,
comments, and suggestions regarding the product.

Print Ads The visual image has become an increasingly popular


communication tool for standardizing advertising campaigns.
One of the media that we encounter every day is print media,
where words and pictures work together to produce a creative
advertising concept. In the country there is a big population who
reads newspapers and magazines to source out information. We
will feature the product in broadsheet newspapers and
magazines like “Good Housekeeping” and other household
magazines throughout the 1st year.
Product We will conduct a 3-day product demonstration and product
Demonstration and sampling in select SM supermarkets (10 branches) and ACE
Sampling Hardware stores (20 branches) during the 3rd week of March
after airing our full TVCs.

Billboard and Mobile A billboard will be placed along EDSA during the 2nd year for 3
Ads months to continually remind the market of the product’s
presence. Mobile ads will likewise be used during the 2nd year in
addition to TVCs and print ads.

Personal Selling We will be employing a team of skilled salespeople who will


target businesses that offer janitorial, and carwash services.
This team will likewise cover Banawe, an area lined with shops
where motorists purchase car accessories as well as cleaning
aids for their cars.

Event Sponsorship The company will also sponsor an event during the second year
that will have ethicality and sustainability as its theme. A notable
segment of consumers are deliberately avoiding companies and
brands with a poor environmental reputation and are also paying
attention to sustainable packaging issues.
B. A&P Summary of Plan

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