2.

0 SITUATION ANALYSIS

“There are no Businesses who started Big”

As a new produced product in the country, we realize that an effective

Marketing Plan should be presented to the Market to gain success in the
industry. Alpha Soap is Bath soap for the entire family; it has a mixture of
shampoo that enables the family to use it with their hairs. With its
extraordinary characteristic it will give the costumer the convenience they
seek in sanitary product. With its economical cost this will give comfort to
the consumers’ expenses without sacrificing its quality and attributes.

2.1 MARKETING SUMMARY

Alpha Soap has a characteristic of a NON-DURABLE product these

products usually consume in short period of time and should be replaced
immediately because of this we expect to serve a mass numbers of
customers. This situation is very complex, but to deal with the consumers to
be served, we will control the information’s about them to emphasize the
needed services of our buyers.

TARGET MARKET

Target Market
POTENTIAL CUSTOMERS GROWTH 2005 2006 2007 2008 2009
CAGR

Wealthy Families 6% 2867 3049 3232 3426 3632 6.01%

Average Families 11% 1876 2082 2311 2565 2847 10.9%

Destitute Families 13% 3444 3892 4393 4970 5616

13.00%

Total 10.22% 8196 9023 9941 10961 12095

10.22%

2.1.1 Market Demographic

 The summary for ideal customer consists of the following factors:

Geographic

• We will focus the most on Metro Manila in our Geographic

Mean, because this is where most retailers and buyers are
located
• With its population of 11,553,247 (as of august 2007),
approximately we will target three fourths (3/4) of its
residents.
• Manila area-617 km2
Cities- 16
Barangay- 11, 0703

Demographic
Divide the families into three (3) classes A, B, C:

• Families belong to class A (wealthy) - is those

who are capable to purchase product that is
luxurious and can avail services for their own
physical attractiveness.
• Families belong to class B (average) - purchase
product with a reasonable purchasing power.
• Families belong to class C (destitute) - who
deals with products for their own subsist to be
satisfied for the day.

Behavioral Factors

• Want to live in progressive lifestyle

• Looking forward for the convenience in consuming a
product
• Economical attitude in obtaining something
2.1.2 Market Needs
Alpha soap will provide the families the experience of having 2-in-1
bath soap which they can use not only to protect their skins but also their
hairs. With its innovative, creative and unusual characteristic it will provide
the following benefits to the customers:

• Customer Service- our patrons will be impressed with the level

of attention and services they received. These services occur
 during the transaction and availability of the product
immediately without delay.
• Convenience- will experience success in bathing without
troubling themselves when they run out of shampoo during their
bath.
• Competitive Pricing- we will operate a quality product, allow
them to generate fair subscription and benefit.

2.1.3 Market Trends

The market trends in soap industry had improved to usual brand soaps
into different variety of soaps. Before, most soaps usually posses Germ
Fighting Action and extra cleaning formula. Years after, different improve
soap is being introduced to the market, example are those whitening soaps,
soaps with moisturizer and with extra fragrances. This trend is moving
toward ordinary into extraordinary.
 Eventually, some companies introduced soaps with combined solution
(e.g. germ fighting soap with moisturizer). With this improvement Alpha Soap
produced combination of shampoo and bath soap.

This change in the market had created an accessible environment for

cleaning service provider, whose goal is to develop long-term relationship
with customers.

MARKET FORECAST

(METRO MANILA)

2.1.4 Market Growth

From the year 2005, many soaps industry produces varieties of soap in
the market as well as new firms had been created.

Soap industry had reached great population, with this result for the
next few years’ tight competition from these firms and companies will be
generated.

The market should be maintained better than the average growth due
to the situation of the society. The affect of this situation, people will tend to
buy items that are not costly to them.
2.2 SWOT ANALYSIS

The following SWOT analysis captures the key Strengths and

Weaknesses within the company and describes the opportunities and threats
that face by the Alpha Soaps.

Strengths

• Strong relationship with the dealers and business organization in

promoting the product
• Competitive price
• Easy to be recognized with its unique design base on the
customers preferences to obtain their focus in the product
• An enthusiastic company with a strong infectious leadership

Weaknesses

• Inherent time lag when building goodwill and trust

• Difficulty on establishing brand equity as a starting company

Opportunities

• Business model that is easily scalable

• The possibility to grow the size of the company, so Alpha Soap is
spending its time creating and allowing others to deal with
administrative details.

Threats

• A slowdown of the economy that will have reduction on

individuals discretionary income
• Artistic Copycats that will be entered to the market and mimic
Alpha Soaps idea.
2.3 COMPETITION AND BUYING PATTERN

Competitions are present in the market where buyers and sellers meet
to act and to serve the needs of the society as well as those individual
market participants.

Alpha Soap compete with other brand of soaps like Safeguard, Zest,
Greencross and other low price soaps item that the customers usually
purchase. With this, Alpha soap perform a Workable Competition, this kind of
Competition not as great as “perfect competition” can provide the firm from
having some power to influence the market price and condition. To make
sure that the Competition of Alpha Soap to other market is successful it will
focus on the result comparing to what is supposed to happen under the
theoretical idea of the competition.

Competition may take the following forms:

• Large companies manufactured a scale of same purpose item

and distribute it nationwide
• Consumer usually had a hard time exchanging and trying new
introduced product because of their trusted brands.

2.4 SERVICES

Alpha Soap helps the industry through obtaining good services to

certify the physical flow of goods and services from the places that sells it to
places where it is used.

Although without direct contact with the user of these commodities the
customers will discover and meet their needs and preferences to the
product. To be successful, Alpha will distinguished it self to other retailers as
a natural product and develop strategies for satisfying the need and choices
of the consumers group.

This strategy will carefully consider this attributes to be a good service

provider:

• Build a quality to which the product will be effective

• Make certain that the product is available any time
• To have a price suitable for the customers and
 • Appeal that can be generated to attract the customer’s
interest.

2.5 KEY TO SUCCESS

Alpha Soap will attempt to prolong the maturity of its product trough
creating successful ideas regarding these processes to make it effective:

1. We will develop the product; design it according to customer’s

preferences.
2. Launch the product, with the association of informative
advertising and promotion to make customers aware that the
new product is available on the market and what its purpose.
3. Quality Work

With these factors, it will help the Alpha Soap remain perpetually in the
industry.

2.6 CRITICAL ISSUE

Through the advancement of our technology, several product

regarding in helping our skins and hairs like advance cosmetic products and
surgeries are being introduced to the market. Also because of the
unstoppable changes in our environment we were exposed to damages that
will surely affect the health of our skins and hairs.

We are aware about this situation in our society and in the world, that
these kinds of product and services are luxurious to us. This public
dissatisfaction in these kinds of services and products led to reduction of its
sales. With the help of Alpha Soap it will prevent the exposure and damages
that causes by the environment by protecting our skins and hair that will
reduce the problems in this matters.

We can guarantee that without shampoo this won’t damage your hair
and no longer need services that are costly to us.
3.0 MARKETING STRATEGY

Advertising, Personal (face-to-face) or Direct Selling, Sales Promotion

and Relationship with business organization in promoting and selling
products are the primary method used by the Alpha Soap in strategies its
product.

• ADVERTISING- this will make the customers aware of the

products special features, low price and benefits. This will also
create an image to the customers not only for the functional
characteristic of the product but also to identify the associate
concept of the brand.
• DIRECT SELLING- this will focus with particular customer at a
time. Though this could be an expensive type of promotion, it
also makes an effective opportunity in advancing the product.
With the help of the salesman’s they will give detailed
explanation, customized application and careful negotiation over
prices that will make sure that the customers will persuade to
use the selling product.
• SALES PROMOTION- with the help of Advertising and Direct
Selling, Sales Promotion will provide incentives such as gifts or
extra product benefit that will encourage an effective way of
selling the product

3.1 MISSION

Alpha soaps mission is to provide the customer with an economical

product with the quality that they seek. We exist to attract and maintain
customer to treasure their trust and reliance. With a strict adherence to this
operation, we are confident that it will go on perfectly and our assistance will
surpass the expectation of our buyers.
3.2 MARKETING OBJECTIVE

• Increase customers in every year each sectors

• Maintain steady growth each month
• Increase the amount of sales relative to marketing expenses
steadily every quarter

3.3 Financial Objective

• Increase in profitability
• Increase the product sold every month
• Increase in sales enough to warrant the living and additional
people to take on the production and other services to allow the
company on its works

3.4 Target Market

The market will be divided in three (3) main groups. These three
distinct family groups of customers are:

• Family A (wealthy) - this group are those family who are able
to buy product that is costly to them. This people are interested
in the result of the product in their own attractiveness when they
use it. They enjoy spending their money for their own
appearance.
• Family B (average) - this group are those families who are
buying product for reasonable purposes, though they can buy
luxurious item they tend to buy what is needed. They involve the
whole family before deciding what to buy for their own good.

Families C (destitute) – this group are those families who buy cheap
product for economical purposes. This group considers several expenses first
and exert great amount of effort in buying product. They are those families
who needed to consider their survival before spending too much.
3.5 Positioning

Alpha Soap will position itself as an economical, suitable simple

cleansing material. Alpha will influence its market competition and scheme
to achieved its desired positioning

• Alpha Soap will have an astonishing result that the customers

unexpectedly experience in which the customer will remain loyal
to the product.
• Although market is crowded by different bath soap. Alpha will
have differentiating features that will let it stand out.
• With its finest quality and ingredients and affordable substances
it will allow the customer spend within their means.

3.6 Strategy Pyramids

The single objective of Alpha Soap is to serve its people with

convenient useful and suitable product. To do this, our Marketing Strategy
involves customers awareness regarding to the product offering, develop
customers trust and work toward building customers loyalty that will
significantly reduce the customers acquisition cost.

Alpha will communicate the message that it offers in variety of ways:

• Printed materials that is widely distributed

• Advertisement to which the customer will know the
information and the benefits of the product
• Salesman’s that will give detailed explanation and careful
negotiation to build trust and loyalty with the customers
• Established a good leadership among succeeding brand of
soaps and
• Create a good comparisons among the consumers

3.7 MARKETING MIX

Alpha Soap will be distributed along with these factors:

• Competitive Price
• Marketing Campaign
 • Promoting the product with the use of Advertising, personal
(face-to-face) or direct selling and with the relationship with
organizations promoting and selling products.

RIGHT PRODUCT IN THE MARKET

Alpha Soap will help the customer/retailers/people to lessen

their expenses in purchasing sanitary products

SELLS PRODUCT IN THE RIGHT PRICE

With its competitive price Alpha Soap will be sold without

sacrificing its quality and attributes.

ENSURE PROMOTION IS RIGHT

We can guarantee great promotion of the product by

establishing competent strategies and procedures in selling the
product.

3.8 MARKETING RESEARCH

The informal Market research begins when Alpha Soap observe

attentively in the current situation in the market.

It begins when it monitors people buying distinct product with same

purpose “cleaning and sanitation”. As a result we develop a product having
two different characteristic, attributes and features into one inexpensive,
excellent and simple product and the introduction of Alpha Soaps begin.

While working on initial business plan, Alpha soap focuses on groups of

people to determine their preferences in having sanitary product.

Topics focus on the following:

• How price sensitive customers are

• What services they valued the most
• What benefit they seek in purchasing sanitary product
• Why they want to purchase 2-in-1 product in the market

This group provided useful insight to be use to determine the needed

options of the market on achieving and doing a product. With their
feedbacks and information Alpha Soap collected this data to
strengthen the Alpha Soap’s Business and Marketing plan.