Marketing Plan

ETNIKO MERCHANDISE Executive Summary

The business name ETNIKO was derived from the appeal and the brand image that the entrepreneurs wanted to impart to the customers. Native and indigenous material talahib or wild sugarcane (mostly found in barren lands and used mainly for grazing) coupled with the trending styles suited for the fashion statements of the college students, young professionals and

professionals will be made available to them. The business aimed to showcase indigenous materials in a luxurious light. Moreover, the demand for these raw materials will increase creating a win-win situation for the entrepreneur and the local communities of artisans and farmers. The Marketing plan explicitly emphasizes our ways of showcasing the public with our innovative products. As a start-up plan, Etniko will ensue on having giveaways being involved in sponsorships, giving an appeal through packaging and advertising and conferring special price-reduced packages The steps followed in the making if our products are thereby equipped in the Technical plan. Moreover, the time allotted for each steps are specified. Etniko merchandise has ventured into a partnership business whereby its advantages are being inexpensive to start on and with an ease of formation. The partners/owners will work hand in hand to attain stability of the business for the small span of five years from the origin. The financial aspects of Etniko portray an imminent growth and a relatively increasing impact into the bag/pouches- making industry. With the span of 5 years, Etniko has forecasted to be one of among the established firm in the business league.

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Vision Consumers valuing the authentic experience of having a fashionable, environment-friendly and affordable bags, pouches, coin purses and eyeglass and pen holders ; enabling a profitable and sustainable industry for its growing market.

Mission To further discover ways that will underpin the industrys ability to create and sustain authentic native products using this abundant but idle grass by: Proving to the public the potentials of talahib in the creation of innovative and trendy products Building consumer recognition and appreciation of the unique impact of patronizing the indigenous products; Attaining a reputation for reliable supply of consistently high quality, fashionable, hippie and personalized, environment-friendly and affordable ladies stuffs

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MARKETING PLAN The Etniko Merchandise is a budding business made by six young entrepreneurs with a wit of introducing to the market a new approach of creating bags, pouches, coin purses,and pen& eyeglass holders. The products are made out of the talahib (Saccharum spontaneum Linn). Study showed S. spontaneum is a bulky material with lower extractives and lignin content and higher holocellulose content with a good response towards multistage bleaching sequence and a pulp of high brightness ceiling. With this research study from the International Journal of PharmTech Research, the entrepreneurs was in an open opportunity to venture into the business of unleashing the potentials of talahib in making products like bags, pouches, coin purses and the like. Thus, Etniko merchandise will reinvent the ladies stuffs experience by selling high quality, innovative products at a reasonable price, designing and making personalized designs on convenient locations, and providing industrybenchmark customer service. Moreover, our marketing focus, made explicitly in this plan, renew our vision on adding value to our target customers.

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I. STRENGTHS MONEY

SWOT ANALYSIS

The capital needed for the production of the products is relatively small compared to the production of ladies stuffs (bags, pouches, coin purses, etc.) made out of leather or plastic materials. Since, talahib is an abundant and free grass which is seen in most barren lands, expenses are minimized in the production which will be reflected on the costs per items.

MATERIALS As stated, main raw materials are the abundant supply of talahib leaves. The plant inhabits open wastelands and undeveloped terrain and is of common occurrence in the Philippines. It grows from underground rootstocks. Talahib is a coarse, erect, perennial, bunch grass reaching a height of 2-4m. The leaves are harsh, long, and slender, 1/2 m in length and 6-5 mm in width. Other materials used are also easily available in the markets which include baking soda and bleaching solutions for the bleaching process therein for the purpose of whitening the fibers, and cassava starch. The easily available supply of materials in the environment (talahib) and in the market (other raw materials needed) made it as the strength of the business. Abundance in the raw materials would give the business with the lesser risk for their shortages, thus, the business would be in a continuous operation.

MACHINES The method of producing paper-like fabric out of the talahib fibers uses one simple machine (but is not limited to such) which is the blender. This is used in making the grass fibers became fine or be pulped. This would be considered as strength since the allotted machine and equipment expenses would be lesser.

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METHODS The methods can be easily followed which also form part of its strength. Saccharum spontaneum were gathered and cut into strips of two inches long using scissors. The cut grass strips were then boiled in a pressure cooker containing 2 liters of water mixed with 230 grams of baking soda. The mixture was boiled for about 30 minutes to an hour. Afterwards, the remaining liquid and the pressurized grass fibers were drained using the strainer. The tough parts of the grass fibers were removed. Then, these would then be further processed in a blender until the grass fibers became fine or pulped. Bleaching then follows. After this process, the grass fibers are mixed in a solution comprising of water and cassava starch. Having the fiber be agglutinated, it can now proceed to the step of making the exact fiber sheets through the use of plastic covers

MANPOWER Excellent staffs who are highly trained and very customer attentive: The fabric makers and sewers also get ample technical and training support from the Technical Education, Skills and Development Authority (TESDA), the

Departments of Trade and Industry (DTI) and Department of Science and Technology (DOST).

MANAGEMENT The workers would ensure that the items are carefully done. Quality control team members see to it that the items are free from defects so that these will not be returned by the prospected customers.

MOMENT (time) The first-mover scheme is attained as the entrepreneurs would be the first to offer such unique products made out of talahib in Nueva Ecija. One thing crucial here is the emergence of imitators, so Etniko merchandise should also
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find ways on how to continually develop its product for a more sustainable business undertaking.

WEAKNESS MANPOWER The production of the finished products is labor-intensive which comprises two major processes: (1) extraction of the fiber from the talahib and (2) the actual sewing of the talahib fabric into products like bags, pouches, holders and the like. Thus, the expenses allotted to these will cover a greater portion. Moreover, the business should be critical in hiring enough workers to prevent sacrificing the quality of products due to insufficient people to handle the operation and to hinder idle hours of overly employed business. OPPORTUNITIES SOCIO-CULTURAL Nationalism is a cultural trait which is increasingly surfacing. Thus, by instilling the customers the appeal of appreciating Filipino products ahead of some state-sides articles may induce them to buy native products. With this present socio-cultural aspect of the country, the potential customers of Etniko products are expected to be relatively in greater number. They would be more appreciative as to the native products produced from the creative minds of Filipino entrepreneurs. Moreover, one of the elements of culture is the degree of education. Education refers to the transmission of skills, ideas and attitudes as well as training in particular disciplines. Education can transmit cultural ideas or be used for change, for example the local university can build up an economy's performance.

Education levels, or lack of it, affect marketers in a number of ways:

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advertising programs and labeling conducting market research complex products with instructions support sources - finance, advancing agencies etc.

Since the target market would be college students and professionals due to the location, the advertising programs and labeling which would be centered on the support towards the industry of eco-friendly products will be easily appreciated.

TECHNOLOGY/ TECHNICAL Putting up a business will be easier if you have adequate technical skills and knowledge about the industry which youre planning to invest in. This is why attending business and livelihood training seminars is an important step which all entrepreneurs must consider. The development of native products out of talahib wild sugar cane materials is a potential technological breakthrough wherein a lot of agencies of the government are working for its furtherance in research and development. The Philippine Textile Research Institute of the Department of Science and Technology (PTRI-DOST) is more than willing to help the budding entrepreneurs by giving information on their business related to fabric, textiles, etc. Aside from technology transfer services, PTRI also provides weaving technical assistance to clients who wish to weave indigenous materials. The Institutes weaving experts skillfully create various patterns and intricate designs using different looms. These are all available at the DOST-PTRI office.

POLITICAL Communication and representation at political levels and authorities would possibly help the emerging industry of making products out of talahib. The people

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on higher positions would be of great help if they use their authority in promoting native products made especially by Filipino entrepreneurs.

GOVERNMENT PROGRAM The emerging industry of making talahib products by the young entrepreneurs would be better off since a lot of related government programs are available which would be useful to their start-up phase. One of the programs is the 2011 2016 Philippine Micro, Small and Medium Enterprise (MSME) Development Plan which has identified climate change/green growth as one of the four emerging global themes that can greatly contribute to MSMEs competitiveness. According to the plan, MSMEs will become more competitive by adopting green growth strategi es which leads to greater resource efficiency, and by producing goods and services that respond to the demand for green products. The Plans targets will be delivered through the synergy and cooperation among agencies involved in MSME development. These stakeholders include national and local government agencies, private sector organizations, and development partners, among others. These institutions maintain their respective mandates, budgets and planning timelines in crafting and implementing the MSME Development Plan. The government intervention in the form of programs the potentials of new business introduced by the entrepreneurs would be of big impact in its success. The Department of Science and Technology is an agency that is more proximate to the researches and development of the business.

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THREATS ECONOMIC It would be a challenge on the part of the emerging business on how to withstand the not so stable economy of the country. It must offer affordable goods to meet the purchasing capacity of most Filipinos especially on their target market. Moreover, as a brief report of the present economy that will affect the future expansion of the business, the transportation infrastructure in the country is relatively underdeveloped. Partly this is due to the mountainous terrain and the scattered geography of the islands, but it is also the result of the government's persistent underinvestment in infrastructure. Nevertheless there are many ways to get around, especially in urban areas. Buses, jeepneys, taxis, and tricycles are commonly available in major cities and towns. Train services are provided by three main railway networks

that serve different areas of Metro Manila and parts of Luzon. As an archipelago, inter-island travel via watercraft and aircraft (Philippine airlines and Cebu pacific are the most popular) are necessary. In the long run, when the business decided to go on wholesaling to different parts of the country, the impact of having a not-so good infrastructure would greatly affect the pricing of the products due to more costs allotted for transportation expenses.

NATURAL ENVIRONMENT Philippines is a country that places high value on business. There are number of successful business people that inspire Filipino citizen to open up a business. Their passion and dedication to pursue their dream and help the economy by risking their time and money to open up a new enterprise is the main

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reason why business people enjoy high social status in the country. Hence, big time business people are considered powerful and influential in the country. Taking into consideration the business inclination of most Filipinos may pave away for more competitors in the market. The business should have set in the unique position in the market for it to be easily recognized by most customers. POPULATION TRENDS Massive land conversion and shifting cultivation due to the survival needs of an ever-increasing population brought about by urbanization and

industrialization continuously occurs throughout the country affecting the natural habitats of many plant species. Some development projects that rapidly change the land use of an area, particularly during the period 1960-1980 have consequently eliminated or destroyed populations/genotypes of plant genetic resources. Deforestation have contributed to erratic climate changes which in turn cause prolonged drought that change the vegetative composition of an area, losing many of the wild varieties.

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Summary of Analysis SWOT Analysis Drawing from the internal and external Analysis, we can summarize Etnikos strengths, weaknesses, opportunities and threats in the following SWOT Analysis.

STRENGTHS 1. Less capital requirement 2. Low cost for raw materials needed 3. Easily available raw materials 4. Less cost for machineries 5. Easy to follow methods of production 6. Highly trained staffs 7. Quality control measures 8. First-mover scheme 9. Training programs 10. Research and development 11. Committed leadership (entrepreneurs) 12. Having written documents to guide operations
OPPORTUNITIES 1. Acceptance from the customers inclined in patronizing Filipino products 2. Capitalize the potentials of talahib in production of products 3. Government programs tailored to entrepreneurs (2011-2016 Development Plan- green growth 4. Availability of support structures such as government research stations, extension and training institutions 5. Developing technology on making products out of indigenous raw materials

WEAKNESS 1. Labor-intensive production 2. Entrepreneurs are new in the business venture

THREATS 1. Not so stable economy 2. Competition with other indigenous weaved products

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GENERATION OF OPTIONS TOWS Analysis Legend: SO strategy - Strength-Opportunity strategy ST strategy - Strength-Threat strategy WO strategy -Weakness-Opportunity strategy WT strategy -Weakness-Threat strategy

SO Strategy 1. (S7, O1) Set a trend for quality, indigenous, environment friendly and affordable products Etniko merchandise would have quality control measures in order to ensure that they will offer the target customers with satisfaction affordability and quality in every purchase. 2. (S3, S10, O2) Continually having researches and development in the potentials of talahib as a raw material in the production of indigenous products As part of the business strength, the entrepreneurs would advance on the research and development in order to further capitalize the potentials of talahib. This would in turn weigh to the aim of providing quality products to the customers. 3. (S9,O3,O4) Unleashing the full capabilities of workers Through training programs offered by the business through the help of the government, the labor-intensive endeavor of this business endeavor would also be labor-efficient for it will produce quality products made by fully trained and equipped personnel

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4. (S11,S12,O5) Organized tasks as emanated by organized staffs The business venture wouldprovide documentations as to the process of the entire production which will serve as the basis for further

developments in the future. This would then be accomplished through the committed endeavor. leadership (a strength) of entrepreneurs towards their

ST Strategy 1. (S2, S7,S13, T1)Give the customers enough reasons to buy the product Since the economy of the country is not so stable, the buying capacity of the customers would be affected. Therefore, its a challenge for the business to give the buyers enough cause for what they purchase. Etniko will provide quality products at affordable prices to induce buyers in patronizing such products.

2. (S14, T2) Appealing Advertisements The competition among other products using indigenous materials was already defined in the market, so Etniko would invest on marketing tactics for it to be known by the public and thereby establish its name.

WO Strategy

1. (W1, O4, O5) Continually find ways on how to improve the technology in the production of talahib products Government research stations and other agencies like the DOST (Department of Science and Technology) would be of good help in the entrepreneurs pursuit of developing new ways in order to make the production easier.

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2. (W2, O1,O3) Entrepreneurs being proactive and optimistic The entrepreneurs would be using the Input-Process-Output framework as it initiates to get the most out of the INPUTS (e.g. Government programs tailored to entrepreneurs), get done the PROCESS and be forward-looking on the OUTPUT ( patronizing of products by the customers)

WT Strategy 1. (W1,T1)Further development of technology to hasten production The business is determined to device ways on how to improve the ways of production in order to further lessen the cost considering that the country is in not-so-good economy at present. 2. (W2,T2) Getting attentions from the public by providing UNIQUE products (through advertisements)

Since the business would have its introduction in the market where competition has been established, Etniko would give a new approach to indigenous materials as talahib products are unique and new in the eyes of the consumers.

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II.

THE MARKETING MIX: THE PRODUCT

a. The Product Etniko Merchandise will offer three product lines ranging from (1) Bags and Laptop/Netbook Cases; (2) Pouches and Coin Purses and (3) Eye glass and Pen Holders made out of the abundant raw material of talahib. The products would be personalized, fashionable and affordable talahib stuffs. The talahib fibers are extracted and bleached to create a somewhat fabriclike finish. The talahib finishes are then put into another process of incorporating it into bags, pouches and holders. To make it personalized, the entrepreneurs would offer the public with a catalog designs which may be attached to the stuffs upon request. Fabric paints would be used in the making of designs. b. Specification and Uses The merchandise would have a brand name of Etniko products which appeals to the use of indigenous and native raw materials just available in most untapped farm lands. Prototypes of products are on the succeeding page. Figure No.1: Etniko Products

Etniko bags
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Etniko pouches

Etnikos different line of products

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The products are made out of light-weight materials which comprise of the talahib finishes and the fabrics incorporated as its inner lining. The bags also use zippers for fastening. The sizes of the products vary from each product lines, for bags the maximum dimension would be 12 inches by 6 inches for laptop bags would be 14 inches by 10 inches. The pouches and holders of eyeglass and pen have the sizes similar to those already in the market with a minimum of 3 by 4 dimension. Bags and Laptop/Netbook cases: The target market is focused on the college students and professionals who really assumed bags and cases as a need rather than a want. The bags and laptop/ netbook cases offered by Etniko would satisfy their need for cases of their things with an added value of fashion and trend. There would also be an appeal of being an eco-friendly buyer since they will be availing a non-plastic but a native product. Pouches and Coin Purses: It is more often than not to see college students who have pouches or coin purses. These stuffs were even representation of themselves. As much as possible they want it to be personalized and trendy while satisfying its uses of handling their pens and coins. Then, Etniko made products out of this whim. Pouches and coin purses would be as trendy as it may and the customers would have a say on its added personalized designs. Eyeglass and pen holders: The sling generation where wants of most hippies out there hails gave rise to the creation of these products. This would serve as a convenient holder for the most useful things usually brought by our target markets in their daily undertakings. c. Existing Market Situation In the Philippines, the use of native materials like water lily, abaca, pineapple fibers and the like are known since then. Bust most of these raw
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materials are made into products through handicrafts. Then, venturing into the business of talahib products is relatively new in the market. So being new in the market signifies more profound efforts to introduce the product and then to sustain its production in the market. The introduction face would be an advantage since the first-mover scheme was undertaken. Also, the business would be focusing on the promotions and publicity of the specifications and valuable uses of their eco-friendly, trendy and personalized talahib products. d. Competitors Since, the merchandise for talahib products is fresh in the industry; the competitors would be from the indirect group. Producers of handicraft bags and water lily bags which have established its market would comprise the indirect competitors of Etniko merchandise. Etniko merchandise shall prove that Etniko products can be at par or even may be exceeding with the existing lines of products introduced by the handicraft industry. e. Unmet Demand of the Market The growing demand for an affordable and trendy bags, pouches and holders are in consistent and constant existence among most college students and professionals (our target market). The demand was already there just waiting for a business to satisfy, then Etniko realized this demand and shall provide products which will satisfy such. f. Quality The business believed that they shall target customer satisfaction in order to attain a position in the industry. And they will accomplish it by providing the best quality products.

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The process from the extraction of talahib fibers up to the sewing of the products are meticulously done in order to get the best quality products out of it. Quality control measures are taken into account. g. Target Market

Since this is an introductory business, the entrepreneurs planned to venture on retailing to the group of college students and professionals in Central Luzon State University specifically located at the old market. It spans to all students and professors which are expected to be mostly females. Our target market is more than willing to avail products which are practical to have. Product with multiple attributes or appeal to the wise and practical customers would weigh most. Thus, the feeling of buying bags, pouches, purses with a sort of satisfaction as to the trendy notion and eco-friendly idea is targeted to be attained.

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a. Product Intended to Offer We intend to make products that will portray durability, uniqueness and usefulness towards our customers. Moreover, benefits in terms of financial aspects and satisfaction standards are expected to be delivered. Our products will be a range of personalized school or office stuffs as follows: Bags and Laptop/Netbook Cases Pouches and Coin Purses Eye glass and Pen Holders

Sample Etniko Products

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b. Target Customers The Etniko Merchandise specifically targets three different customer profiles. These consumer groups are further classified according to financial sources/income, age and gender. 1. Students Since the products to be offered are school supplies, students will be the primary market to be targeted. The contemporary economic situations drive students to develop themselves into a rational being. They are now inclined to apply practicality in spending their allowances. They seek school stuffs that they think are affordable, yet posh and functional. Our products will be very accessible to these targeted customers since the main stall is to be located inside Central Luzon State University. Financial Source: Although students do not usually have source of income, they still have allowances as their financial source. They are presumed to be primarily positioned on the low class range in terms of financial capability. Age: Since students will be served, target age group will range from grade school (7-12 years old), high school (13-16 years old) and college (17-21 years old). Gender: According to the researches, girls have more inclination on buying school supplies and accessories. In relation with these previous findings, more females are expected to buy the products.

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2. Teachers, Instructors and Professors Similar to students, these targeted customers also seek stuffs that they think are reasonably priced, high-quality and handy. These people typically already developed their rational self. Thus, they are assumed to be practical spenders. However, as being income earners, they are having more financial liberty on buying things they need and want. These customers are located at Central Luzon State University, Science City of Muoz. Income: They have a monthly income range of P19, 000.00 to P 80,000.00. They are in the middle to upper level of social class. Age: Customers from this group are generally ages 21 59 years old divided into: young professionals (21-39 years old) and adult professionals (40-59 years old). Gender: Larger numbers of females are expected to buy the products. But males from this group, as compared to the males from the student consumer group, are expected to buy in a larger percentage. 3. Office workers people involved in office works are especially expected to buy office-related products. As sensible professionals, these costumers pursue office products that are within their means, superior and useful. Like the previous consumer groups, although they are usually financially stable, they are practical and prudent buyers. They are situated within Central Luzon State University, Science City of Muoz.

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Income: They have monthly income of about P18, 000.00 and above and are in the middle to upper level class of society. Age: These customers are mostly in the ages 21 59 divided into young professionals (21-39 years old) and adult professionals (40-59 years old). Gender: Larger numbers of females are expected to buy the products. But males from this group, as compared to the males from the student consumer group, are expected to buy in a larger percentage.

c. Frequency and Time or Season Customers Buy the Products Occurrences of purchase throughout the year are irregular. Intended customers buying pattern will be at most every month. Sales are projected to be high during the months of February, May, June and December. On February, the products are expected to be sold for gift giving purposes. On the other hand, classes start at June, therefore target consumers especially students, are anticipated to buy school stuffs during May to June. The month of December is similarly expected to bring elevated sales since people during this month also tend to buy gifts for the Christmas season. Furthermore, bonuses like Christmas bonus, Productivity bonus, 13th month pay, Quarterly bonus and the like are normally given this month which gives the consumer more buying power.\

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d. Price Price is essentially a critical competitive factor. If we look into our targeted customers, although a fraction of our target market may not care as much about price, Our primary customers which are students are practically price sensitive. Hence, pricing poses a crucial element on our business prosperity and survival. We aspire on establishing a large number of buyers and win significant market share. In line with this, we will use market penetration pricing strategy to attract customers and to foster our introductory customer relationship. Our affordable prices will uphold our immediate goal of surviving in the industry as a new business. However, we compete on the quality and service in as much as we compete on prices. So we ought to set fairly affordable prices with our product quality still higher than the price. A reasonable mark-up, without hurting the affordability of the products is direly needed. Nevertheless, since talahib grass is an economical source of raw materials, it is relatively easier to realize this requirement. Our product prices will range as follows: Table No. 1: Product Prices

Products (with one free word) Bags and Laptop/Netbook Cases Pouches and Coin purses Eyeglass and pencil holder

Base Price

150

50 40

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The customer is privileged to have one free word to be written on the product bought. However, P15.00 will be added to the purchase price for every extra word the customer requested. Likewise, additional P15.00 or above will be charged in case the customer requested additional designs (for instance, sequence, fabric color drawing, beads, and the like). e. Customers Comment Etniko Merchandise conducted a survey in Central Luzon State University assessing the degree of potential customers perception towards the products to be offered. Photos of the products were included in the questionnaire which enabled them to see the basic features such as the designs, colors and customizations. Most of the respondents retorted positively. Many were pleased on the innovative idea of creating talahib products with different colors because they were used on the traditional brown colors of items made from native or natural materials. On the other hand, several respondents were at first hesitant about the products. They picture the products as being rough and itchy since talahib grass was the main raw material used. f. Competitors The struggle to become one of the top personalized school and office material traders in Central Luzon State University is not too intense. Key competitors are not yet established with distinguishing business image and brand equity.Etniko Merchandise can therefore initiate its marketing strategies and acquire solid reputation within a shorter extent of time. A direct competitor with exactly the same custom-made, talahib school and office products offered is inexistent in the market. Orange Milka a shop in Marketing (outside, in front of CLSU) which is selling native products such as earrings, necklaces, etc. can be considered as an indirect competitor. School bags are also offered here but such products are not from native raw materials.

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Other major indirect competitors are the school supplies vendors in the Old Market (inside CLSU). They offer school stuffs which are not made from any remarkably environmental and native materials. Additionally, both indirect competitors do not offer services to personalize or custom-made the products they offer.

g. Competitors Price The table shows the prices our competitors charge for a similar product we offer Table No. 2: Competitors Price

Products

Native products stole(@ Marketing)

Other stores in Old Market 150-350 40-100 Not offered Not offered Not offered 200-350 30-100

Bag Pouch Sling pen/pencil holder Sling eyeglass holder Eyeglass Case Laptop Case Coin Purse

250-350 Not offered Not offered Not offered Not offered 250-350 200-350

Some of our competitors have lower and higher prices compared to us. Old market vendors offer a wider range of prices as compared to the native products shop in the Marketing. Furthermore, many products we offer are still unable in the market.

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IV.

THE MARKETING MIX: PLACE AND PROMOTION

a. Channel of Distribution As a newly established business, we will be initially engaged in retailing activities. We will sell products and services directly to our consumers. They are intended to visit our place to personally avail our products and services. After five years in the industry, provided we reached business stability and gained favorable market reputation, we will expand our business horizon by delivering products and satisfactions to a wider market. We contract CVC Department Store in San Jose City as our distributor. We will give them 15% lower prices than our consumer selling price. Thus, allowing them up to 15% or more profit margins on our products. Based on their discretion, they may also want to offer services on personalizing (lettering) or designing the products in which case they may hire one of our artists. But the salaries will be shouldered by them. b. Promotion Promotion is the marketing process that motivates a customer to make a positive purchase decision (Encarta, 2007). Hence, business success has a high positive correlation with the feat of its promotional strategies. How much the customers know about a product will be the one of the basis of its promising or disparaging market share. So, promotions must be signified and managed accordingly. We yearn for a pleasant and friendly business image. We want our customers to see us as a school and office shop that bears the seal of excellence and honesty. We also want our customers to treat us not merely as a store but as friend. Closeness to customers is one of the keys to success. If we know our

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customers, we know what they needed and what they wanted. It would then be easy for us to set product and service improvement.

Our promotional efforts will encompass a wide variety of techniques. From year after year, our promotional techniques will be: Special price-reduced packages During the lean months, we will give 15% discounts for every P200.00 or above purchases. Giveaways During the peak periods, we will employ an earn-your-points strategy. Every purchase means additional points. When they reach a certain amount, they can redeem products and giveaways. Customers with these points proved to have strong loyalty towards us. These simple gifts may include pens with the midsection draped with our processed talahib grass marked with our business name, bookmarks from processed talahib grass, and the like. Sponsorships this will not be included in our promotional plan for the first years of our business. After moving towards stability, our business will then build up a much solid reputation. We will make sponsorships on the prestige competitions in the campus like Mr. and Ms. CLSU, Mr. and Ms. Lantern, Most Beautiful Face, as well as academic tournaments like Literary Musical Competitions among others. Our sponsorship is through giving our products as tokens or as special awards prize. Packaging in addition to main purpose of packaging to hold and protect products, we perceive its potentials as a good strategic element. We will use attractive paper bags as the packaging for our products. Through this, we are able not only on abiding by the current university law of not using plastics, but also on projecting an environment-friendly image towards our customers. Paper price tags with our business logo and special inspiring maxims will be included to our packaging strategy.

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Advertising We will advertise through flyers, tarpaulins or posters and website. Radyo CLSU is also perceived to be an effective way of advertising. So we will pursue on negotiating with them. We will also use methods like word of mouth. We will see to it that we had given the best service possible. We will always serve with a smile. We would be very warm, accommodating and generous to our customers. Through these, our customers may relate to others their wonderful experience with our products and services. In addition, we will use our network of friends. Our connections with acquaintances might be helpful in gaining loyal customers.

c. Proposed Location Location plays a significant role in our business success. Our probability of getting the highest possible number of customers depends upon our location. So we decided to look for a place with the following criteria: convenient, inexpensive, open and accessible. We strategically planned to rent a space inside the old market. This location is nearby the infirmary and student dorms where our target customers stay. It is also popular among students as the main shopping arcade in the university. The stall will be built adjacent to Flying Saucer House cafeteria. It is on the right side when facing NATO Terminal, near the entrance of the Old Market. It will also be better for us to be near our competitors. Customers come to places where there are many school and office stuffs stores because they wanted to have different options on where they will buy. More competitors mean more potential customers coming over our place.

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Figure No. 2: Location Map

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ETNIKO MERCHANDISE Table No. 3: Selling Expenses

Expenses

Year 1

Year 2

Year 3

Year 4

Year 5

Advertising (Posters, flyers, etc.) 350.00 250.00 250.00 250.00 300.00

Packaging

150.00

175.00

200.00

250.00

350.00

Transportation Expenses

150.00

250.00

250.00

300.00

350.00

Sales Promotions (Giveaways, Sponsorships @ yr.3) 150.00 150.00 400.00 400.00 400.00

Total Selling Expenses

800.00

825.00

1,100.00

1,200.00

1,400.00

Sales commissions to distributor will only be charged on the sixth year when business stability is already attained.

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ETNIKO MERCHANDISE Graph 1: 5 year Selling Expenses

Total Selling Expenses for Five Years

1400 1200 1000 800 600 400 200 0
1 2 3 Years 4 5

Total Selling Expenses

The bar graph exhibits the gradual increase in total selling expenses for five years. The selling expenses are expected to have a substantial growth on the sixth year due to the diversification attempt of the business. On the said year, we intend on having CVC , San Jose City as distributor . The sales commission will cause an abrupt upward push on the total selling expense.

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V. Legend: n q Q

THE MARKETING MIX: THE PRICE (SALES VOLUME)

number of customers likely to buy the product average quantity purchased by a customer in a given period total demand of your product A. BAGS AND LAPTOP/NETBOOK CASES Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 1 Month Jan Feb 28 1 28 Mar 21 1 21 April 27 1 27 May 32 1 32 June 26 1 26 July 25 1 25 Aug 26 1 26 Sept 20 1 20 Oct 24 1 24 Nov 31 1 31 Dec 33 1 33 316 TOTAL

n q Q

23 1 23

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ETNIKO MERCHANDISE

Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 2 Month Jan n q Q 26 1 26 Feb 32 1 32 Mar 24 1 24 April 31 1 31 May 37 1 37 June 30 1 30 July 29 1 29 Aug 30 1 30 Sept 23 1 23 Oct 28 1 28 Nov 36 1 36 Dec 38 1 38 363 TOTAL

Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 3 Month Jan n q Q 30 1 30 Feb 37 1 37 Mar 28 1 28 April 36 1 36 May 42 1 42 June 34 1 34 July 33 1 33 Aug 34 1 34 Sept 26 1 26 Oct 32 1 32 Nov 41 1 41 Dec 44 1 44 418 TOTAL

Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 4 Month Jan n q Q 35 1 35 Feb 43 1 43 Mar 32 1 32 April 41 1 41 May 49 1 49 June 40 1 40 July 38 1 38 Aug 40 1 40 Sept 30 1 30 Oct 37 1 37 Nov 47 1 47 Dec 50 1 50 481 TOTAL

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Projected Monthly Sales Volume for Bags and Laptop/Netbook Cases for Year 5 Month Jan N Q Q 42 1 42 Feb 51 1 51 Mar 38 1 38 April 49 1 49 May 58 1 58 June 47 1 47 July 46 1 46 Aug 47 1 47 Sept 37 1 37 Oct 44 1 44 Nov 57 1 57 Dec 60 1 60 577 TOTAL

B. POUCHES AND COIN PURSES

Projected Monthly Sales Volume for Pouches and Coin Purses for Year 1 Month Jan N Q Q 42 1 42 Feb 50 1 50 Mar 41 1 41 April 47 1 47 May 52 1 52 June 52 1 52 July 41 1 41 Aug 39 1 39 Sept 38 1 38 Oct 42 1 42 Nov 45 1 45 Dec 55 1 55 544 TOTAL

Projected Monthly Sales Volume for Pouches and Coin Purses for Year 2 Month Jan N Q Q 48 1 48 Feb 58 1 58 Mar 47 1 47 April 54 1 54 May 60 1 60 June 60 1 60 July 47 1 47 Aug 45 1 45 Sept 44 1 44 Oct 48 1 48 Nov 52 1 52 Dec 63 1 63 626
35

TOTAL

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ETNIKO MERCHANDISE

Projected Monthly Sales Volume for Pouches and Coin Purses for Year 3 Month Jan N Q Q 56 1 56 Feb 66 1 66 Mar 54 1 54 April 62 1 62 May 69 1 69 June 69 1 69 July 54 1 54 Aug 52 1 52 Sept 50 1 50 Oct 56 1 56 Nov 60 1 60 Dec 73 1 73 719 TOTAL

Projected Monthly Sales Volume for Pouches and Coin Purses for Year 4 Month Jan N q Q 64 1 64 Feb 76 1 76 Mar 62 1 62 April 71 1 71 May 79 1 79 June 79 1 79 July 62 1 62 Aug 59 1 59 Sept 58 1 58 Oct 64 1 64 Nov 68 1 68 Dec 84 1 84 827 TOTAL

Projected Monthly Sales Volume for Pouches and Coin Purses for Year 5 Month Jan n q Q 77 1 77 Feb 91 1 91 Mar 75 1 75 April 86 1 86 May 95 1 95 June 95 1 95 July 75 1 75 Aug 71 1 71 Sept 69 1 69 Oct 77 1 77 Nov 82 1 82 Dec 100 1 100 993 TOTAL

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Marketing Plan

ETNIKO MERCHANDISE C. EYEGLASS AND PEN HOLDERS

Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 1 Month Jan n q Q 48 1 48 Feb 51 1 51 Mar 49 1 49 April 53 1 53 May 65 1 65 June 55 1 55 July 47 1 47 Aug 52 1 52 Sept 48 1 48 Oct 45 1 45 Nov 59 1 59 Dec 67 1 67 639 TOTAL

Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 2 Month Jan n q Q 55 1 55 Feb 59 1 59 Mar 56 1 56 April 61 1 61 May 75 1 75 June 63 1 63 July 54 1 54 Aug 60 1 60 Sept 55 1 55 Oct 52 1 52 Nov 68 1 68 Dec 77 1 77 735 TOTAL

Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 3 Month Jan n q Q 63 1 63 Feb 67 1 67 Mar 65 1 65 April 70 1 70 May 86 1 86 June 73 1 73 July 62 1 62 Aug 69 1 69 Sept 63 1 63 Oct 60 1 60 Nov 78 1 78 Dec 89 1 89 845
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TOTAL

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ETNIKO MERCHANDISE

Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 4 Month Jan n q Q 73 1 73 Feb 78 1 78 Mar 75 1 75 April 81 1 81 May 99 1 99 June 84 1 84 July 71 1 71 Aug 79 1 79 Sept 73 1 73 Oct 68 1 68 Nov 90 1 90 Dec 102 1 102 972 TOTAL

Projected Monthly Sales Volume for Eyeglass and Pen Holders for Year 5 Month Jan n q Q 88 1 88 Feb 93 1 93 Mar 89 1 89 April 97 1 97 May 119 1 119 June 100 1 100 July 86 1 86 Aug 95 1 95 Sept 88 1 88 Oct 82 1 82 Nov 108 1 108 Dec 122 1 122 1166 TOTAL

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ETNIKO MERCHANDISE

The above table is the summary of the planned sales volume for the span of 5 years. The succeeding pages give the graphical representation of the table above.

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ETNIKO MERCHANDISE

GRAPHICAL REPRESENTATION OF THE PLANNED SALES VOLUME FOR THE SPAN OF 5 CONSECUTIVE YEARS

From the succeeding graphs for years 1-5 (as per month basis), Etniko merchandise would have the greatest planned sales volume on the months of February, May and June, and December for the following reasons: During Februaries: This is a month of the hearts, so Etnikos planned sales volume would be higher since the demand for stuffs worth for gift givings would also be higher. During Mays and Junes: These are the months were the one of the target customers (college students) are on their way of searching school supplies which are of course useful and do fit with their styles and wants. Thus, Etniko will offer more products for these months to meet the demand elevated by the back-to-school fuss. During Decembers: The December month is a good time for Etniko to increase its planned sales volume since exchange-gifts -craze was in the air. Moreover, the buying capacity of customers also increases during this month since bonuses and 13 th month pays (for young professionals: another target market) would be given to them. The graphs are:

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ETNIKO MERCHANDISE

Graph 2: Planned Sales Volume/Sales Year 1

80
70 60

50
40 30 20 10

BAGS AND LAPTOP/NETBOOK CASES

POUCHES AND COIN PURSES EYEGLASS AND PEN HOLDERS

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Graph 3: Planned Sales Volume/Sales Year 2

90

80
70 60

BAGS AND LAPTOP/NETBOOK CASES

POUCHES AND COIN PURSES EYEGLASS AND PEN HOLDERS

50
40 30 20

10
0

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

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Graph 4: Planned Sales Volume/Sales Year 3

100 80 BAGS AND LAPTOP/NETBOOK CASES POUCHES AND COIN PURSES

60 40
20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

EYEGLASS AND PEN HOLDERS

Graph 5: Planned Sales Volume/ Sales Year 4

120
100

80
60 40

BAGS AND LAPTOP/NETBOOK CASES

POUCHES AND COIN PURSES EYEGLASS AND PEN HOLDERS

20
0

Jan

Feb Mar Apr May Jun

Jul

Aug Sep

Oct

Nov Dec

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Graph 6: Planned Sales Volume/Sales Year 5

140 120

BAGS AND LAPTOP/NETBOOK CASES POUCHES AND COIN PURSES

100
80 60

40
20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Graph 7: Planned Sales Volume (Year 1 Year 5)

SALES
200000 150000

100000 50000
0 Year 1 Year 2 Year 3 Year 4 Year 5

SALES

The size of the market will increse in the next 5 years. This will in turn affect the demand of the talahib products. The initiative to produce talahib products has transformed into a dynamic industrial area, especially in the province of Isabela where the indigenous talahib, a type
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ETNIKO MERCHANDISE

of grass grows abundantly. This time, the size of the market is expected to increase in the next three years as the products were initially sold locally from Central Luzon State University to many cities in Nueva Ecija. Among the factors that could bring about an increase in demand of the talahib products are: Preference of customers/consumers for simpler yet sophisticated products made from natures products which are at the same reasonably price Adherence to products that are made of cogon which are largely ignored by residents but are providing livelihood to weavers. The use of talahib in makingbags, pouches, purses, etc. taps indigenous resources that augment livelihood opportunities. The talahib products are not offered only for specific markets. It can be bought by any interested buyers. People eat expecting to be satisfied and nourished in the future. People sleep assuming that in the future they will feel rested. Likewise, people who would buy the talahib products and also the prospect buyers can benefit by the sense of protection and organization of valuable things they give

Talahib products were offered for the college and professionals in CLSU. The cost was arrived by computing the cost per item and including certain mark-up afterwards. If the cost base includes all of the costs required to produce and sell the product, then the markup represents the desired profit.

In the long run, products are priced such to cover costs and earn a reasonable profit. In other situations, the products can be priced with reasonably higher mark-up depending on the additional costs to be incurred. This would be the case where the product is specially made for a customer and when the product is effectively differentiated. As the business also tries to diversify and tries to enhance product features, the prices for products can also increase.

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ETNIKO MERCHANDISE

The product was priced appropriately based on a good understanding of market forces at work. According to an article in Philippine Daily Inquirer (PDI) entitled Talahib is income-earner for Isabela villagers which was released on September 02, 2012 and written by VillamorVisaya Jr., Uy says his group sells the products in local outlets at affordable prices. A piece of wall decor, candleholder or a candy basket sells for P150 each while a lampshade fetches P700. Other items are within the P150 to P400 range. The price is not too low which would consequently fail to cover the fixed costs and lead to losses. Likewise, it is not also too high which could undermine the business from selling the products. Since the firm is still starting within the specified industry, the products will be sold directly through its own store. It would retail the goods since it has still inexperienced in producing batches of bags for wholesailing. The prices of the products would be also economical since its raw materials are inexpencive and abuindant. Due to this factors, the business would not give credit sales yet. But as the time passed and the firm will be stable in its industry, it will expand to producing batches of canvass bags (bags that are still not designed to be fashionable) to be sold to other manufacturers that would use it as its raw materials. In about 5-10 years after the instigation of the company, it will materialize this plan. The company buying in wholesale will be given a credit term of one month (equivalent to 30 days), they will also be required to have a 15% downpayment. It is estimated that 55% of the credit sales will be collected one the month of sales and 35% one the next, and 10% on the third month.. The business will maintain a constant manufacturing of wholesale for the first 5 years upon its materialization to ensure that the quality of the products are not compromised.

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SALES FORECAST FOR YEARS 6-10

Sales Forecast for Years 6-10 (Bags and Laptop/Netbook Cases) Jan. Sales (In Quantity) Selling Price Total Sales Less: Cash Sales Credit Sales Collectio n of A/R A/R Balance
150 150 22,500

Feb.
225 150 33,750

March
175 150 26,250

Apr.
100 150 15,00 0

May
275 150 41,250

June
200 150 30,00 0

July
100 150 15,00 0 1,500

Aug.
100 150 15,00 0 1,500

Sept.
100 150 15,00 0 1,500

Oct.
150 150 22,500

Nov.
250 150 37,500

Dec.
200 150 30,00 0

2,250

3,375

2,625

1,500

4,125

3,000

2,250

3,750

3,000

20,250

30,375

23,625

13,50 0

37,125

27,00 0

13,50 0 7,425

13,50 0 7,425

13,50 0 7,425

20,250

33,750

27,00 0

11,137.5 0 9,112.50

16,706.3 0 13,668.8 0

12,993.8 0 10,631.3 0

7,425

20,418.8 0

14,85 0 12,15 0

11,137.5 0

18,562.5 0 15,187.5 0

14,85 0 12,15 0

6,075

16,706.3

6,075

6,075

6,075

9,112.50

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Schedule of Accounts Receivable for Years 6-10 (Bags and Laptop/Netbook Cases) Jan. Credit Sales Collectio n of A/R (on month of sale) Collectio n of A/R (two months after sale) Collectio n of A/R (three months after sale) A/R Balance
9,112.50 17,718.80 17,718.80 13,331.30 23,118.80 23,962.50 17,718.80 16,368.80 17,043.8 20,756.30 28,856.30 13,660.30 3,037.50 4556.25 3,543.75 2,025 5,568.75 4,050 2,025 2,025 2,025 3,037.50 5,062.50 7,593.75 5,906.25 3,375 9,281.25 6,750 3,375 3,375 3,375 5,062.50 8,437.50 11,137.5 16,706.30 12,993.80 7,425 20,418.80 14,850 7,425 7,425 7,425 11,137.50 18,562.50 30,720.90 20,250

Feb.
39,487.50

March
41,343.80

Apr.
31,218.80

May
50,456.30

June
50118.8

July
37,462.50

Aug.
31,218.80

Sept.
29,868.80

Oct.
37,293.80

Nov.
54,506.30

Dec.
55,856.30

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Sales Forecast for Years 6-10 (Pouches and Coin Purses) Jan. Sales (In Quantity) Selling Price Total Sales Less: Cash Sales Credit Sales Collection of Accounts Receivabl e A/R Balance 1,822.5 0 2,733.7 5 2,126.2 5 1,21 5 3,341.2 5 2,43 0 1,21 5 1,21 5 1,21 5 1,822.5 3,037.5 2,43 0
48

Feb. 112.5

March 87.5

Apr. 50

May 137.5

June 100

July 50

Aug. 50

Sept. 50

Oct. 75

Nov. 125

Dec. 100

75

60

60

60

60

60

60

60

60

60

60

60

60

4,500

6,750

5,250

3,00 0

8,250

6,00 0

3,00 0 300

3,00 0 300

3,00 0 300

4,500

7,500

6,00 0

450

675

525

300

825

600

450

750

600

4,050

6,075

4,725

2,70 0

7,425

5,40 0

2,70 0 1,48 5

2,70 0 1,48 5

2,70 0 1,48 5

4,050

6,750

5,40 0

2,227.5 0

3,341.2 5

2,598.7 5

1,48 5

4,083.7 5

2,97 0

2,227.5 0

3,712.5 0

2,97 0

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ETNIKO MERCHANDISE

Schedule of Accounts Receivable for Years 6-10 (Pouches and Coin Purses) Jan. Credit Sales Collection of A/R (on month of sale) Collection of A/R (two months after sale) Collection of A/R (three months after sale) A/R Balance
1,822.50 3,543.75 3,341.25 2,160 3,881.25 3,915 2,295 1,755 1,755 2,362.5 3,847.5 3,780 810 1215 945 540 1,485 1,080 540 540 540 810 1,012.5 1,518.75 1,181.25 675 1,856.25 1,350 675 675 675 1,012.5 1,687.5 2,227.50 3,341.25 2,598.75 1,485 4,083.75 2,970 1,485 1,485 1,485 2,227.50 3,712.50 2,970 4050

Feb.
7,897.50

March

Apr.

May
9,585

June
9,281.25

July
6,615

Aug.
4,995

Sept.
4,455

Oct.
5,805

Nov.

Dec.

8,268.75 6,041.25

9,112.50 9,247.50

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Sales Forecast for Years 6-10 (Eyeglass and Pen Holders ) Jan. Sales (In Quantity) Selling Price Total Sales Less: Cash Sales Credit Sales Collection of Accounts Receivable A/R Balance 1,458 2,187 1,701 972 2,673 1,944 972 972 972 1,458 2,430 1,944 1,782 2,673 2,079 1,188 3,267 2,376 1,188 1,188 1,188 1,782 2,970 2,376 3,240 4,860 3,780 2,160 5,940 4,320 2,160 2,160 2,160 3,240 5,400 4,320 360 540 420 240 660 480 240 240 240 360 600 480 40 40 40 40 40 40 40 40 40 40 40 40 90 135 105 60 165 120 60 60 60 90 150 120 Feb. March Apr. May June July Aug. Sept. Oct. Nov. Dec.

3,600

5,400

4,200

2,400

6,600

4,800

2,400

2,400

2,400

3,600

6,000

4,800

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ETNIKO MERCHANDISE

Schedule of Accounts Receivable for Years 6-10 (Eyeglass and Pen Holders) Jan. Credit Sales Collection of A/R (on month of sale) Collection of A/R (two months after sale) Collection of A/R (three months after sale) A/R Balance
51

Feb. 6,318

March 6,615

Apr. 4,833

May 7,668

June 7,425

July 5,292

Aug. 3,996

Sept. 3,564

Oct. 4,644

Nov. 7,290

Dec. 7,398

3,240

1,782

2,673

2,079

1,188

3,267

2,376

1,188

1,188

1,188

1,782

2,970

2,376

810

1,215

945

540

1,485

1,080

540

540

540

810

1,350

648

972

756

432

1188

864

432

432

432

648

1,458

2,835

2,673

1,728

3,105

3,132

1,836

1,404

1,404

1,890

3,078

3,024

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ETNIKO MERCHANDISE

52