sCandle, your scented candles.

I.

Company Profile

Historical Background Hot sCandle, Inc. is a small-scale social enterprise that engages in the manufacture and distribution of a wide variety of candles within the Philippines. The company was incorporated in 2009 with the starting capital of Php400,000 which is more than enough to start a candle-making business. The company is exclusively distributing its very own brand, sCandle by abella. Although it only has 10 employees, the company is still capable of providing quality products and services. Hot sCandle, Inc. is a enterprise which contributes to society by providing livelihood for the marginalized sectors of the Philippines like the bakalbotecommunity in Bulacan and the bee farming indusrty, and helps the environment by making eco-friendly candles without compromising their quality. Through creating well-designed unique candles, Hot sCandle improves the lives of people from both ends of the spectrumthe marginalized communities who are empowered through meaningful work, and the people purchasing who are enriched by the artistic products Hot sCandle has created. By also contributing to the Philippines vibrant but unnoticed candle industry, Hot sCandle will be the first of its kind to emergerevealing the artistic side of the Filipino people to the rest of the world. The owners of Hot sCandle, Inc. originated from prestigious individuals like Keith Abella, HE Aryton de Leon, Hon. Jay Intertas, Andrei Machete, and Joe

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Matsukawa, who are all involved in successful social enterprise ventures in the country. sCandle, Inc. is currently headed by Keith Abella as its president.

II.

Product Profile

Hot sCandle, Inc. produces and/or locally buys its materials for candle manufacture. 100% of its raw materials are locally made. The companys products consist of a wide array of candles of varying sizes, colors, designs and scents. The waxes that the company uses are beeswax, paraffin, and vegetable-based wax, all of which are biodegradable so they are 100% environmentally friendly. The companys main product line, sCandle by abella, offers aromatherapy as its main feature which is helpful in relieving stress and also effective in repelling insects. Aromatherapy is defined as the use of volatile plant oils, including essential oils, for psychological and physical health. Burning candles containing these oils is one of the most convenient and inexpensive ways to experience these benefits. It's now easy to improve ones mood with a light of a candle since they are readily available and come in a variety of different mood-altering scents. The scents are especially formulated by the renowned perfume maker, Mr. Keith Abella. Some of the scents are eucalyptus, rosemary, peppermint, and jasmine. The candles burn cleanly and with little visible smoke. The aromatherapy candles are encased in aluminium cans with air tight lids to preserve the scent. These candles are great to light at living rooms or bedrooms to create a nice ambience. The quality of the ingredients used in the candles is top class so they are also ideal to give as gifts to family and friends.

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Features of sCandle by abella y Aromatherapy y Insect repellent y Biodegradable and Recyclable Environment friendly y Artistic designs o Container candles o Sculpted candles y 100% safe no harmful effects on health y Long burning hours Hot sCandle, Inc. is also marketing economical and unscented candles fit for everyday use. These candles are packed in tens and have the average burning hours of 4-5 hours. The packaging used for these candles are sealed plastic pouches to protect the integrity of the candles against dust and debris before consumption. Development and Strategies Hot sCandle ideal customers are between the ages of 15-50 who enjoy works of art and also are environmentally concerned. The company is also targeting the customers who are fond of social enterprises and corporate social responsibility. Most are women who collect candles and others are the environmentally conscious individuals. The male patrons of sCandle usually buy candles for presents. The raw materials for the products that Hot sCandle offer comes from local manufacturers who provide innovative products of the best quality and that which will serve the demands of the market. Also, the company is dedicated in reducing its environmental impact. The company only uses recycled materials for the
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packaging. Accordingly, the companys assurance of quality and being environment friendly is its main competitive advantage against competitors. Here, the strategies are outlined which will help the company market its products.  Advertise through the internet using Facebook and Twitter to acquire more customer bases that are all fond of environmental friendly candles.  Coordinate with the bakal-bote communities in Bulacan and propose to them a good business plan where Hot sCandle and even more so the magba-bakal-botes will benefit.  The company should coordinate with a recycling business or the government to ask assistance in the recycling procedures of papers and aluminium to make safe and environment friendly packaging for the candles.

Growth stage / Decline stage The revenues generated by the product line, sCandle by abella, has experienced a growth rate of 25% or from revenues Php3, 440,084 in the first year to Php4, 733,508 in the second. On its third year of operation, the company is experiencing a 33% growth rate and projected revenue of Php7,673616.The company is expecting the product to decline on its 5th year, where the company has already achieved the ROI.

III. Price

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The company uses cost-based and value-based pricing approach for its products. We will add 20% mark-up to the cost of the regular candles while we will add a 130% -150% mark-up to the main product line, sCandle by abella, which the consumers and patrons consider as a good quality candle with many features.sCandle by abella product line costs calculation: Php5/yard x 100yards Php450/kg x 150kgs Php1000/L Php500/L (mutli-color) Php200/kg x 2kgs

Php30/100pcs x70 3000 Php5/pc x 5000 25000 Php0.2/sheet 2000 Php8500/month x 10 85000 Php1500 x 10 15000 Php500 500 Php1,000 1000 Php1,500 1500 TOTAL COSTS 202900 The company can produce up to 2000 small, 2000, medium and 2000 large sized candles with costs of Php20, Php40, and Php80 each, respectively. The prices for the candles per piece will be (for year 2011 or Year 3): Size Cost Percent Price Small 20 1.5 50 Medium 40 1.4 96 Large 80 1.3 184 The direct price of the products excluding Labor and Overhead costs are: Php10, Php20, and Php40 for the small, medium and large sized candles respectively.
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Wick Beeeswax Fragrance Oils Dye Raw Hardener (stearic materials powder) Packaging Platic Bag Aluminum container Label Salary Labor Costs Employee Benefits Gas Overhead Water Costs Electricity

500 67500 1000 500 400

IV. Place
sCandle aromatherapy candles are distributed through the retail outlet that Hot sCandle, Inc. controls. The candle making facility and the retail outlet is located in

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the same building, minimizing lead times for bulk orders and increasing service levels. The company also has a website where its products are catalogued for easy online purchase. One major advantage of having a website is that it can be viewed by anybody from around the world, enabling us to showcase our products to a broader field. International shipping can also be arranged for foreign buyers and as for the payment transactions, credit cards or PayPal payments are the available options. Aside from having its own website, the company can also utilize the popular social networking sites like Facebook and Twitter to showcase their products and connect to and to stay in touch with the patronisers. The website and the social networking sites can also be a means for the company to receive feedback regarding the products and the company which will greatly help in its decision makings.

V.

Promotion

The company makes use of the following to advertise: y posters and flyers y Facebook Fan Page
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y Local Newspapers y Its own employees This way, the company can establish its products in the minds of the consumers. The ads also provide pertinent information about how and where they can order the candles. The employees are good advertisers because they are the makers themselves and they can share their stories with friends and family. Good image of the company may travel by word of mouth. The company also offers discounts of up to 20% if the clients orders more than 1000 pieces of any item to encourage bulk orders. The company also offers seasonal sales promos to boost sales and dispose of its old stocks. A major promotional tool of the company is its own core values of being environment friendly, using only recyclable materials and recycled materials for its products. The facebook fan page is also always updated in order to connect with the public and give out as much information on the company operations as possible. Still, a line must be drawn to determine the extent of information to give out.

Development of Promotion Strategy The companys utilization of the social networking sites like the facebook fan page can be used to the maximum. The company can promote itself by conducting contests online. Strategy The contest will be about making a new designs for eco friendly candles.
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y Firstly, the company can announce this by posting it to facebook and allotting 2 weeks for the entries. y The candle theme will be set by the company to fit the season or occasion that is coming near. y The fans can participate by sending in their designs to the page within a period of 2 weeks together with their name and contact numbers. y The candles could be theoretically designed through imaging programs like Adobe Photoshop or the contestants can actually make a finished product. y *The materials to be used in making the candles should be environment friendly! y The winning designs are then made into a real product in the next quarter where the season or occasion will be fit. y Winners will get a cash price of Php 3,000 and an exquisite candle-set package. y The contest will be conducted at the end of every quarter to encourage patronage and also to better promote the company.

VI. Financial: Sales Plan and Revenue Schedule

Sales Forecast Year 1 Year 2 Unit Sales 16324 18942 13423 14746 12097 18924 41844 52612 Unit Prices Php30.00 Php30.00

Year 3 23986 22487 23943 70416 Php50.00

Small candles Medium Candles Large Candles Total Unit Sales Small candles

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Medium Candles Large Candles Small candles Medium Candles Large Candles Total Sales Small candles Medium Candles Large Candles Small candles Medium Candles Large Candles Total Cost of Sales

Php72.00 Php72.00 Php164.00 Php164.00 Sales Php489,720.00 Php568,260.00 Php966,456.00 Php1,061,712.00 Php1,983,908.00 Php3,103,536.00 Php3,440,084.00 Php4,733,508.00 Direct Unit costs Php10.00 Php10.00 Php20.00 Php20.00 Php40.00 Php40.00 Cost of Sales Php244,860.00 Php284,130.00 Php483,228.00 Php530,856.00 Php991,954.00 Php1,551,768.00 Php1,720,042.00 Php2,366,754.00

Php92.00 Php184.00 Php1,199,300.00 Php2,068,804.00 Php4,405,512.00 Php7,673,616.00 Php10.00 Php20.00 Php40.00 Php599,650.00 Php1,034,402.00 Php2,202,756.00 Php3,836,808.00

*Year 3 is the projected values for this year (2011).

The sales will come from the flagship brand of Hot sCandle, Inc., sCandle by abella. It is broken down to three sources: Small, Medium, and Large sized candles.The cost of sale relate to the overhead and labour costs. The projected revenue for Year 3 is Php7,673,616 or equivalent to 70416 units of candles while the projected cost of sales is amounting to Php3,386,808

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VII. Recommendation:
This marketing plan is suited for the people that are inside the small-medium scale industries. It will also serve as a guide. This plan will ensure the user to be successful. This can be useful for people who are planning to start a business. Accurate strategies are involved in this plan. We, the people of the brilliant minds behind this beautiful endeavour invite you to use this marketing plan as a reference in doing your own future marketing plans.

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