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Marketing aspects is the sum total of all business activities which deal with the movement of goods or product from the producer to the ultimate user. This chapter tackles the different marketing strategies and techniques to be used in order to reach, maintain and increase perspective higher. The major consideration of the study is whether, there is an ample demand for the product being produced or proposed to produce. If ample demand exist, then it is important now to find out if it is met by the current producers. In other words, it determines whether substantial excess demand so that a new firm could enter the industry. During the study if the demand was discovered not enough for the product, a new demand will be created. If not, then the product must be abandoned before and substantial loss will be incurred. On the other hand, if the findings indicate that the demand was sufficient for the product, then the firms competitive position in the industry will be investigated. Other information shall be gathered on the prevailing pieces for the interest of the quality development and adoption of the product relative to the current existing related product. Objectives of the Study The general objective of the study is to determine the market feasibility of K-embutido in the market.Specifically, it attempts to discuss the following objevtives:

1. To identify the target market of the proposed business; 2. To identify the demand and supply of the product; 3. To establish the desired market share after analyzing the demand and supply situation
4. To

formulate the appropriateness marketing strategies and

programs in order to penetrate the market. Methodology The proponents used the descriptive method in collecting data necessary for the study. The researchers visited the Batangas City to search data gathering their target market in order to determine the demand and supply of the proposed product. They will conduct personal interviews and proportionally distributed survey questionnaire to the household selected belonging to individuals from 1569 years old in Batangas City. The proponents will implement the following plan to acquire appropriate data to be used in the study. Since the feasibility is concerned with the determination of the profitability of Saba embutido manufacturing business using present statistical information, the descriptive method of research is deemed to be the most appropriate method to be used. Research Design The study used descriptive type of research design. The descriptive type of research design is used in the study involving present condition. Its purpose is

to find the truth. Studies using descriptive design are valuable in providing facts. They provide essential knowledge about the future of objects and persons (Calmorin and Calmorin, 2001). This method concerns on the present condition. It describes the nature of a situation as it is existed at the time of the study and explores the cause of a particular phenomenon. Subject of the Study The subject of the study were households residing in urban barangays of Batangas City with the family income of Php 10 000 above. These barangays include Poblacion 1-24; Alangilan, Balagtas, Calicanto, Cuta, Gulad Itaas, Gulad Labac, Kumintang Ilaya, Libjo, Malitam, Pallocan Kanluran, San Isidro, Sta. Clara, Sta Rita Aplaya, Sta. Rita Karsalla and Wawa. They were chosen by the proponents to represent the target market for the reason that they are considered potential buyers of K- Embutido. On the other hand the proponents prepared questionnaires that will be distributed to the target market. The information gathered from the surveys is used to know if the target market is willing to buy or purchase the proposed product. Data Gathering Instrument The proponents relied and depended on primary and secondary sources of information in gathering and collecting data needed in the study. Surveys, interviews and distributed will be conducted to serve as primary data. On the other hand, journals, magazines, books and other related material resources will also serve as the secondary data.

An evaluation research questionnaire was used for data gathering, which was also the tool for obtaining data from the respondents. A letter was prepared by the proponents with the approval of the adviser in order to gain access to the corresponding respondents.The proponents made two sets of questionnaires, one the household respondents and the other for the retailers which include supermarket and stalls in old and new public market. The questionnaire served as a tool for gathering data, to have systematic and reliable basis in determining demand and supply of the proposed observations to determine the accuracy of the given data. The respondents are given enough time and can freely answer the question. The question for the supplier covers the form of their establishment, the cost of selling the embutido and how much they are willing to sell and buy embutido.. the questionnaire for retailers was used to determine the market potential of the K-embutido. The other questionnaire was for the consumers. The questionnaires covers the monthly income of the consumers that determines their capacity to buy the product, if they buy embutido, how many embutido they consume and how much they spend for embutido. The proponents prepared the questionnaires and presented it in an organized manner in accordance to the approval of the adviser. Data Gathering procedure The mains task to gather information is to find related files and documents that already have the data that you need. The proponents visited libraries to gather the necessary data from books and other research materials that are related to the proposed product. They also gathered other information in the

internet for additional data. The proponents make sure that the data gathered was reliable and accurate. Other related studies also served as their reference for the background procedures of the study in gathering data. The researchers will also prepare the questionnaires to be used to determine the feasibility of the proposed product on the target market. The proponents will give the questionnaires to the chosen retailers and consumers to provide the projected demand and supply needed for the study. The proponents will make survey to the 24 Barangays of the Batangas City with the 396 questionnares distributed proportion to their population. The proponents will gather other information if possible and interviews to gather specific details as accurate as possible for any other improvements that can be applied to the product to be more successful to the market. Determining the success of the operation is also one factor that is considered to determine if the business should be established or not. One of these was determining the possible disbursements in the business. Besides the income the proponents also considered the possible out flow in the business. The proponents made a canvass when for the prices of the materials, utilities and equipment needed for the establishment and operation of the study in the supermarkets, old and new market, malls and other stores. This determines the projected expenses and capital needed in the business and to project the profit outcome. This study will also determine the possibility of

establishing the business in a cheaper yet profitable and high quality product to be more efficient and effective as a business. Statistical Treatment Data Profitability sampling was used to obtain the estimated sample size based on the population of the target market in determining the sample size. n= __N__ 1+ Ne2 In which n = the size of the sample N = the size of the population e = the margin error n= ____37 390_____ 1+ 37 390(.05)2 n= ____37 390____ 94.475 = 395.76 or 396

Table 2.1 Respondent per Barangay

Barangays 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Household number 269 249 142 289 238 552 238 196 105 132 191 505 142 105 39 28 44 203 203 198 374

Number of questionnaires 3 3 2 3 2 6 2 2 1 1 2 5 1 1 1 1 1 2 2 2 4

22 23 24 Alangilan Balagtas Bolbok Calicanto Cuta Gulod Itaas Gulod Labac Kumintang Ibaba Kumintang Ilaya Libjo Malitam Pallocan Kanluran San Isidro Sta. Clara Sta, Rita Aplaya Sta. Rita Karsada Wawa

70 176 701 2686 1678 2600 2483 2364 930 531 2399 2215 2149 1120 1356 1166 2898 457 3684 1285

1 2 7 28 18 27 25 25 10 6 25 25 24 12 14 12 31 5 39 13

Demand The demand for a product is the quality of goods that buyers are willing to buy (CM Pagoso, 1990). In this case where holding all other to factors constant, the price of a good or service increase as the demand increases. An analysis of demand is a part of the important task of identifying the needs of the consumers and determining whether they are willing and have the capacity to pay for the product a business in contemplating on production. Major consumer of the product As a new business in the market, various factors are considered by the proponents in order to respond effectively in the needs and wants and preferences of the prospective buyers and to increase sales and profit. Before penetrating the desired market, the proponents should first identify the consumers. The proponents will use the category of households as the major consumer of the K- Embutido residing in urban Batangas City with the monthly income of Php 10 000 above. Historical Demand Projected Demand Supply Supply of the product is the quantity of goods that sellers are able to provide. It shows how the quantities offered for sale as the good is dependent on

its determinant. The most important of which is the price of goods is sold (CM, Pagoso 2001). Historical Supply Projected Supply Demand and Supply Analysis Market Share SWOT Analysis To understand the business environment of a particular firm, you need to analyze both the general environment and the firms industry and competitive environment. Generally, firms compete with other firms in the same industry. An industry is composed of a set of firms that product similar methods of production. Gathering industry information and understanding competitive dynamics among the different companies in your industry is the key to successful strategic management (dess/Lump Kin/ Eisner, 2007) Strength Availability of the resources. The proposed products raw materials are very easy to find in the market most likely the Saba banana, a major component of the product. It is one of the most typical fruits not only in Batangas Province but also the whole Philippine country.

Health Benefits. The proponents product K- embutido has the potential to meet demands on the market. It is best for maintaining and keeping the body healthy. People who do not eat pork could eat the K- Embutido considering that it is made out of Saba banana. Weakness Proponents do not have adequate experience. Since the business is newly established for operation its management lacks enough knowledge and experience in the business. The management may encounter problems especially during the first year of its operation. Having all these things in mind, the proponents are willing contribute all they know in order to have a smooth flow and operation profitable operation. Limited Capital. Since the business proponents are just starting a new source of income. There would be limited capital for the business. The business will also be limited for big finances. Opportunities Support of Sales force trades. With the continuous increase and with the fluctuation of the value of the peso, this is a tendency to set a high price on the product. It would be difficult for the company to attract investors and creditors whenever appropriate since the business do not have any records and still building their trust

Increasing retail store. In present time many of the retail stores in business and that would also be an increase in prospective retailers for the proposed product. It could also increase the sales because of the large number of retailers. Population Development- inflation. Because of the inflation, there would be a large number of consumers and demand in the market. It could result to increase sales and profit. Threats Competition to large companies. There is a big advantage for the large companies that produce embutido in the market since they are already well known. It would be hard for the business to penetrate the market because of the consumers trust that was earned by the existing companies before us. Consumers preference. Not all of the consumer could widely accept the idea of the embutido made out of Saba banana. Consumers might find it inadequate. The product must catch up to the taste preferred by the consumers. Marketing Strategies The Marketing Mix model (also known as the 4 Ps) can be used by marketers as a tool to assist in implementing the M. strategy. M. managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the MM principles are controllable variables. The MM can be adjusted on a

frequent basis to meet the changing needs of the target group and the other dynamics of the M. environment. The function of the marketing mix is to help develop a package that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization. (Nirmalya Kumar - Marketing As Strategy) Many qualities in the product must be determine which are the function, quality, appearance, packaging, brand, service, support, and warranty. The

success of the business depends mainly upon the product and good product means a higher opportunity for recognition. One of the factors that must be considered is the price. The price composed of list price, discounts, financing, leasing options and allowances. It determines the value of the product and its affordability to the consumers. Right place is also important in the service considering the target market and other factors like channel members, channel motivation, market Coverage, and service levels. One great factor that determines the business is on where the business would be established. Determining the nature of the business and its appropriateness to the place must be considered. And the last is promotion, the most critical part of a starting a new product is the promotion. It determines on how the public will recognize the product. Factors that should be considered are the advertising, public relations, message, and the budget.

Product Product can be classified as tangible or intangible that can be offered in the market for attention, acquisition, use or consumption that might satisfy a need or want of the consumers. It not only includes physical objects, but also persons, ideas and services as well (Pagoso et. Al, 2002). This indicates the proposed products attributes, benefits packaging and pricing. It deals with the consumers to be marketed. The proponents firm is named Nutri-Steamed Food Manufacturing Enterprise and manufactures K-embutido, which is made up of mixture of grinded Saba banana, bell pepper, black pepper, egg, salt, bread crams, soy sauce, chopped onion and carrot. It does not contain pork that made it different from other related product. Product Size/Quantity/Category K-Embutido belongs to food/viand category. Embutido is now widely eaten now a days paired to our rice. It is often serve in Filipino occasions like wedding and in different celebrations. The proposed product is going to be manufactured per pack at 450 grams .Each pack of product contains 5 pieces of embutido inside and file horizontally to each other. Just like an ordinary embutido it is rolled also in aluminum foil for better packaging and preservation. Its taste will give you a so delighted feelings that catch your attention to buy the product

Brand Name Choosing the right product is very important. It should be a name that can be easily remembered. The name should describe the products character and what it can offer to the consumers. The proponents derived their brand names from its main ingredient. From this, the proponents believe that using the name K-Embutido will not only create positive outlook and provides consumers a product that is made up of nutritious ingredients. Packaging The first thing that attracts a consumer to a product is how it is presented visibly, that is , how it look and what perception is elicited by the product (Young & Pagoso,2008).This is referred to packaging. K-Embutido is packed in a transparent packaging film that allow attractive product presentation as the packaged product is visible.A pack has 5pcs.of K-Embutido and weighs 450grams. Its design and logo portrays the delicious and mouth-watering taste of the product.

Figure 2.1 Product Label

Figure 2.2 Logo Pricing Pricing is one of the four major elements of the marketing mix.The other three aspects are product, promotion and place.It is an important strategic issue because it is related to product positioning.(Svend Hollenson,

Table 2.2 Pricing Component of K-Embutido 450g/pack(Daily Process) Manufacturing Cost Direct Materials Direct Labor Factory Overhead Total Mark-up (60%) Selling Price to Retailers Input vat 12% Suggested Selling Price Price/pack with 5 pieces Php10.71 3.00 3.00 16.71 10.02 26.73 3.20 Php29.73

Table 2.3 Related Price of Competitors Other Commercial Brand Price /pack WOW Embutido Special Php32.00/3 pieces JMD Pork Embutido Php50.00/5 pieces Pampangas Best Embutido Php47.10(250g)

Place of Distribution Distribution system is the determination of the best distribution network that a company should adopt in order to facilitate profitability flow of goods from the warehouse and factory to the respective retail outlets. The firm best prospect markets are household people of Batangas City. The firm will be established at barangays 015 Poblacion Evangelista Street, Batangas City. The location of the firm is chosen for making the product widely available and accessible to target markets. The consumer goods marketing channel that will be used by the firm is one-level channel which contains one selling intermediary, the retailers. Direct marketing channel will be observed also through mail order and manufacturer. The proponents will negotiate to possible retailers in the the in the old and the

new market. The proposed selling price of the K-embutido would be 20 pesos. On determining the retailers price, the proponents will conduct a survey that is currently organizing. Figure 2.1 Channes of Distribution




Promotion Promotion in the broad sense consists of coordinated seller initiator efforts to establish channels of information and persuasion to foster the sale of a good or service, or the acceptance of ideas or point of views. (Young and Pagoso , 2008). It also encourages the consumer to purchase the product which the product is selling K- Embutido, Saba embutido. The proponents took different promotion mix strategies used to direct persuasive communication to target buyers and public.

Table 2.4 Promotion Mix Strategies What

Internet marketing


10 days before the operation

Facebook / Twitter

This site from the contest for firms history, mission and products. Interesting information will be updated regularly to prevent staleness and encourage return visit. Through radio interview and mentioning of our product by friend DJs This will start with ribbon cutting in the enterprise and introduce the newly proposed product.

Php 500 standaed user (blog). The proponents will use blog to advertise our product.

Radio advertising


5 days before the operation

GB 99


Product Launching


On the day of the proposed product will be introduced.

NutriSteam Food Manufacturi ng enterprise

P 5000


Php5,500.0 0

Generalization This feasibility study is conducted to test the viability of producing and selling K-embutido in the market. It gave emphasis on the product tself. The taste and quality of the product price, place and promotion were identified. In the market study, the proponents gave some point of view about the supply and demand of embutido to its market. In order to identify them, the market plan and its strategies for the dissemination of the said product market were established by the proponents. At first, the proponents determine the potential market and target market. They had taken into consideration the general factors like the powered sources, communication and availability of raw materials to fill in the demand of embutido in the area. Informal interview and distribution of questionnaire will be done. On the other hand, SWOT analysis was order to identify strengths and opportunities to take advantage of it. Weaknesses and threats were also considered to avoid possible problems that may be encountered in the near future.