Urchies Company I.

Company Background Urchies Company, a Manila-based company, has been in the skincare and healthcare industry for the past years. Employing highly-trained professionals, the Company is very keen in giving not just the latest but the best products to serve the people. The following are Urchies Companys mission and vision statements: Mission: To provide sustainable skincare & healthcare products in innovative and cost effective ways by setting the highest standards in service, quality, safety, and costs in our chosen industry Vision: To be the best preferred manufacturing company, delivering healthcare and skincare solutions in the industry Basically, the Company sells skincare and healthcare products from sea urchin. Why sea urchin? It was found out that sea urchins have been sought after by foreign markets. In 1995, the worldwide production of sea urchins is estimated to be 119 634 metric tons. However, the increased demand of sea urchin along with the high economic return has resulted to uncontrolled and nonselective harvesting of the species. So to combat this, the University of the Philippines Marine Science Institute (MSI) developed a grow-out culture technology for sea urchins to conserve and sustain the urchins' population. Those provinces which benefitted from this technology are La Union and Bolinao both in Pangasinan. These two provinces will be the suppliers of the Company. (Make Profits from Sea Urchin Culture, 2007) Two of the products that the Company is offering were formulated from the result of the Research and Development department. These products are: Sea-Ramic Dentures and Sea-Cure Anti-Bacterial Night Cream. Research and Development No. of Idea Concepts 18 6 3 2 Element Idea Generation Idea Screening Concept Evaluation Market Testing Cost

Sea-Ramic Dentures The Company will be partnering with the Philippine Dental Association (PDA) in marketing Sea-Ramic Dentures. This is important for the product to be affiliated with this organization because potential customers will still get advices from dentists when consulting for dentures or false teeth. These dentists, based on their expert judgments, will help market Sea-Ramic Dentures to the clients. The target market will be Filipino both males and females aging 18 years old and above and from A,B, and C income brackets who seek to feel and look good by wearing false teeth or dentures. Why these clients and not dentists? If the Company chose business-to-business marketing, it will be catering to the needs of the dentists, not those having problems with their teeth. If the clients want Sea-Ramic, then the dentists would have no choice but to comply with the wishes of their clients. Since there are different types of need for dentures, Sea-ramic Dentures will be providing customized dentures/false teeth. Those will include full and partial Sea-Ramic dentures. According to Indexmundi.com, here is the income bracket classification from the April 2007 release of Pulse Asia based from the population of the Philippines in 2007 which was 88 706 000. Brackets A, B, and C 7% -- 6 209 420 males and females From this, 2 812 102 are aging 18 years and above. Bracket D 67% -- 59 433 020 Bracket E 25% -- 22 176 500 Sources: http://www.nscb.gov.ph/secstat/d_popn.asp

Pulse Asia 2007 Production/Operations Suppliers The suppliers of sea urchin will be from Bolinao and La Union, Pangasinan. Process Equipment Finance and Budget Financial Objectives Marketing (Product, Price, Place, Promotion) Marketing Objectives Product Price Variant (teeth) DM P 100 DL P 80 MOH (20%) P 16 Total VC P 196 FC P 40 TC P 236 Final Price P 316

Perceived Value Pricing: P 236 Cost 80 Superior Quality P 316 Estimated Price only (actual prices depend on the dentists charge) Variant Teeth DM Gums and other Value-added features MOH Total FC Value(20%) VC added Cost P 500 P 100 P 1600 P 150 P 1750 DL Final Price Total Cost P 10 598 P 12 100

Full P 8848 P 1000 Denture Partial Depends on the number of teeth required by the client Denture * P 316 x 28 teeth = P 8 848 Perceived Value Pricing: P 10 598 -- Cost 1 000 Superior Quality 500 Customer support P 12 098 P 12 100

For the expected annual sales of dentures, however, the Company will use the data for the full denture and not the partial denture.

Place Promotion Sea-Cure Anti-Bacterial Night Cream This product is an anti-bacterial night cream. The target market for this product would be Filipino women aging 40 years old and above, from B and C income brackets, who want to feel and look beautiful and attractive while wanting nonsurgical treatments. The Company has chosen this target market because women have a little bit larger population than men (1.25:1), thus being one of the reasons they are good for an initial market penetration. They also get dryer and dryer skin as they age. One ingredient in the night cream is known to work effectively on dry skins. In addition, women have thinner skin than men, according to heathy-skincare.com. A night cream was also chosen because it gives a gentle and sure action on the facial skin. The problem with day creams is that they are mixed with sweat when women do their activities. Moreover, in line with the same income bracket data mentioned above, the top 1% consists of people from the income bracket A, which comprises 887 060 people. It was found by DailyMail that those from that bracket aging 40 years old and above prefer botox, fillers, and high-tech creams which cost lots of money. Sea-Cure Anti-Baterial Night Cream can be consumed for 60 days or 2 months. Sources: (Income distribution of the Philippines, 2007) (Squidoo.com, 2011) According to Indexmundi.com, here is the income bracket classification from the April 2007 release of Pulse Asia based from the population of the Philippines in 2007 which was 88 706 000. Bracket A 1% -- 887 060 Bracket B and C 6% -- 5 322 360 males and females 2 956 867 are females (1.25 females : 1 male) Of this, 739 217 are females aging 40 and above ( since 25% of the whole population are aging 40 and above) Bracket D 67% -- 59 433 020 Bracket E 25% -- 22 176 500 Sources: http://www.nscb.gov.ph/secstat/d_popn.asp Pulse Asia 2007

Production/Operations Suppliers The suppliers of sea urchin will be from Bolinao and La Union, Pangasinan. Process Equipment Production Flowchart Finance and Budget Financial Objectives To have an annual sales of

Expenses: The Company will be releasing 600 000 units for the launch 400 000 units of Sea-Cure Night Cream Every unit of Sea-Cure Night Cream has a total cost of P 276.00

= P110 400 000 production expenses Marketing (Product, Price, Place, Promotion) Marketing Objectives Product Advantage Sea-Cure Anti-Bacterial Night Cream has coelomocytes that are known to be called immune cells. They repel bacteria that enter the face, while leaving the skin supple and tender. This product also is consumed for 2 months, unlike other brands with a 1-month duration only. Price

Variant Sea-Cure

DM P 150

DL P 80

MOH (20%) P 16

Total VC P 246

FC P 30

Total Cost P 276

Final Price P 390

Perceived Value Pricing: P 276 Cost 80 Superior Quality P 356 P 390 not a bargain, not a luxury affordable luxury