I.

EXECUTIVE SUMMARY

Picnic Room Company is a corporate entity that focused on native baskets primarily concentrating in innovations of baskets, making it more acceptable in todays generation of market. It never stops thinking and developing its products for delivering the needs and wants of customers. The company creates products that will make the market realize their needs for it even before it comes to their own minds. And it devotes it in making the customers family activities easier and more comfortable. Summer is approaching and Picnic Room Company respects Filipinos culture and traditions during this season. And the most common activities Pinoy do are outings, mountain hiking, resorts hopping, and travelling. Families desire for more bonds and outings, those professionals crave for vacation and relaxation, friends make time to get together and enjoy different amazing tourist destination in our country. This marketing plan aims to form a proper and better way of planning a specific product that will suit the market needs; it is either by a product innovation or by a newproduct development. The passion of the business to present a well thought-out product will help them to have properly arranged things for their outings or picnics.

I.

CURRENT MARKETING SITUATION

A. Market Description Geographic Country: Philippines Region: Luzon (National Capital Region) Population Density: Urban Season (Climate): Summer Demographics Age: Any Gender: Any
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Family: Young, Married Family or Group Members: 3-5 Income: P15000-P30000 Religion: Any Industry: Baskets Psychographics Social Class: Middle Lifestyle: Family, Groups Activities: Outgoing (Going out: Swimming, picnics, camping, sports) Values: Loves quality time with family & friends Personality: Organized and Outgoing Behavioral Occasion: Summer (Picnic, Swimming, Camping) B. Product Review The website everythingpicnic.com offers variety of picnic baskets. It is a foreign product and it shows the same features for being organized. The pricing of the products are also in dollars. Shipping is the way of distributing their products to their buyers. The Philippines is known as one of the manufacturers of picnic baskets. The basket features are different from other picnic baskets that are seen in the market today. Our companys picnic basket is for the organized persons. The basket has compartments for different things to be brought in the picnic. The company reviews other picnic baskets of other company. Most of the picnic baskets are sold online. The picnic basket has its own styles, there is a design that looks like a chicken or rooster and there is also the typical design of the basket. Most of the baskets sold in the internet do not have cover because this is the latest design of a basket. Since, picnic baskets are all over the world, the pricing strategies differ from each other. The Philippine made picnic baskets sold in the internet are priced in dollars because most of the products are ordered by the foreigners.

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There are picnic baskets located in Quiapo, Manila which the company reviewed. There are lots of store that offers variety of picnic baskets. The store in the place is namely: Magsino Native Products, Filipinas Handicrafts, Int Native Crafts and General Merchandise, and a lot more. The products they are offering are the following: picnic baskets, coin baskets, flower baskets, fruit baskets, and a lot more. Their products are all native and every product has its own concept and styles. There are also products like trays and other native home decorations. The picnic baskets that are sold there are made of nito, rattan, wicker, and buri split (combination of rattan poles and tilob fibers). The products are mostly from the province of Pampanga which is brought in Manila to be sold. In terms of their pricing, you can get discount of 50-100 pesos in their products. In SM Megamall, the store Kultura and Regalong Pambahay also offers baskets that are made from abaca, nito and wicker. The baskets are coming form Visayas. Their baskets are rectangular with handle and there are also round baskets. There are also baskets without handle and without cover. Every product has its own design and styles that makes it unique with each other. Since the baskets are from Kultura, one of the stores in most SM malls, it is priced high. In terms of buying, when you are in Quiapo you can have a discount in every time you buy but in the mall, you can have discount if there is sale in the mall or in the store. The sales of picnic baskets in summer season may rise because many people, especially families are going out to have picnic. The baskets are salable in any occasions but in terms of picnic baskets, there are many competitors that can defeat the native picnic baskets which are discussed in the next part. C. Review of Competition The picnic basket industry in the Philippines is not as demandable compared to other country. Since the Philippines, a third world country, only a few would spend on this product. Most of the Filipinos are practical buyers and would spend less on such. So as to make the product be demandable, the product price should be flexible. Most of the considered competitors of our product are those who advertise online. A lot of entrepreneurs as well as companies have been investing their
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efforts on this. Many people are time-savers and would want less effort on shopping and this is an edge of them on which our company would be planning on. Price range from simple styled basket that costs Php 300-500, and those that have lids, medium to large costs Php 700-5000. The competitors will include those that are sold on mall outlets. The following are current and prospective competitors of Picnic Room Company. It is also stated here, the information and strategies of the said companies. Primary Competitors A&R Craft Philippines (14 Natividad Street, SFDM QUEZON CTIY) o A single proprietorship o Local supplying, trading, subcontracting, direct manufacturing, then later on exporting o Belongs to the Small and Medium Enterprises of the country. o Can handle mass production with good quality and shipment on time. o Complete and strictly comply with the Customer's quality standards o Serves and manages active foreign accounts mostly from the United States, North America, Canada, Paris, London, France, Kuwait, Japan, and other Asian countries o A Young and Energetic Manufacturer and Exporter of Philippine Giftwares and Decorative Craft Products specializing in the production of Novelties and Craft Items, Christmas and Halloween decors, Packaging and Functional products, utilizing different indigenous materials and natural resources abundant in the country. o Products are man-made, hand-made of natural materials and vary slightly from piece to piece; hence tolerance points are always expected.

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Kultura Filipino o The largest Filipino lifestyle retail chain in the country offering a definititve shopping experience for Philippine culture and crafts. o Creates world class Filipino products sold at reasonable prices. o It evolved into a lifestyle retail store showcasing a wide range of furniture, house wares, home decor, wearable fashion, souvenir items and food. o It became an affiliate of SM Incorporated. o It is located in major mall outlets - SM Megamall, SM Makati Annex, SM Mall of Asia Main Mall, SM North Edsa The Block, SM Cebu North Wing, and selected department stores.

Secondary Competitors Coleman o Famous and successful manufacturers of camping equipment and outdoor recreational products. o The Coleman Company makes what it takes to be a happy camper. o A leading manufacturer of outdoor recreation gear, it produces coolers, backpacks, tents, sleeping bags, air mattresses, lanterns, grills, life vests, and floats, among other items, which are sold under the Aerobed, Coleman, Campingaz, Exponent, Hodgman, Mad Dog Gear, Sevylor, and Stearns brands. o Coleman operates sales offices and distribution facilities worldwide and sells its products mainly through mass merchandisers, home centers, and other retail stores, as well as through its website and a network of about a dozen Coleman Factory Outlet stores. GIPICOM PLASTIC INDUSTRIES

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o The company positions itself as a supplier of high quality BIODEGRADABLE plastic bags. o Producing plastic products customized to the needs of its institutional clients. D. Review of Distribution The Philippines is the second largest world producer of handicrafts, mainly baskets out of indigenous materials. Many Filipinos are engaged in handicraft businesses. Handicraft-making has become a means of livelihood for them. Many handicraft owners are exporting their products to Japan, United States, Canada, Australia, Hong Kong, Singapore, and other countries around the world while many handicraft items are also sold on the local market. Although the industry has experienced some difficulties specially in the shortage of raw materials in the past years, it has kept the respect of the highend markets in the United States, European Union, and Japan and although it lost some of its market in China, our main competitor. Over the years, Philippine handicrafts have evolved through innovative changes in designs strengthen by different choices and combination of indigenous materials. There is however still a room for improvements and innovations which means there is still a room for the new company of people that will enter in the industry.

II.

THREATS AND OPPORTUNITIES ANALYSIS

Strength Comes with either one or two handles for ease of carrying The largeness afforded by BASK IT means you can pack a fine quantity of materials, foods and assorted items for the picnic. The basket comes with dividers that serve as compartments for the materials which would make the basket more organize.
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 The basket has a space for small coolers which would serve as container for ice, beverages, and to maintain the temperature of cold foods. Coolers help keep food at ideal temperatures for long periods of time and can help to keep food from spoiling. The materials used are of high quality and there is assurance of lasting longer than the ordinary. Weakness Not all Filipinos are fond of using baskets in outings and picnic. Some Filipinos prefer foreign made products. Picnic baskets seem to be old fashioned. Opportunities Participation in basket industry which is generally quite steady in terms of sales. Offers an opportunity to revive the industry of rattan and the like. The challenge of using baskets instead of plastics which is the most common. Threats The entry of same product line competitors. The industry is attractive, in part, because of its simplicity, creating an incentive for new entrants into the market.

III. OBJECTIVES AND ISSUES

OBJECTIVES Mission Picnic Room Companys mission is to create the finest picnic baskets available. We exist to attract and maintain customers. Our products and services will exceed the expectations of our customers.
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Business Objectives: 1. To be able to apply marketing trends and updates such as: a) Product innovation, business improvement and adopt other relevant marketing strategies; b) To be able to fully advertise the business using some nontraditional campaign and; c) To be able to conduct sales promotion campaign to be adopted for the whole-year round. 2. To be able to provide innovative products that definitely answers and reaches specific needs and problems. Marketing Objectives Increase repeat customers by 7% per quarter. Decrease the marginal per customer acquisition costs by 8% per year.

Financial Objectives ISSUES Picnic Room is a start-up business. Its critical issues are: How to control the start-up expenses. Expanding in size only when it is no longer possible to fulfill orders of the customers. It is important to do this carefully because if the business is expanded and demand suddenly falls, Picnic Room could be subjected to severe financial distress. Generate awareness and customer loyalty for repeat business and referrals. Profitability by the end of year one. Increase sales enough to warrant hiring an employee.

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IV.

MARKETING STRATEGY

The company desires to create a better way to connect and communicate the value and importance of this picnic baskets innovation. A. Identifying the Target Market TARGET MARKET PROFILE Name: Sheryll M. Cruz Age: 34 Gender: Female Occupation: Professional Civil Status: Married Social Class: Upper Class C Likes & Interests: Going out with family (picnics, vacation trips) Name: Alejandrina G. Espinosa Age: 42 Gender: Female Occupation: Housewife Civil Status: Married with 3 children Social Class: Class C Likes & Interest: Spending quality time with family and relatives (family reunions, swimming) Name: Joseph Rey O. Dela Paz Age: 26 Gender: Male Occupation: Single Professional Civil Status: Single Social Status: Class B Likes & Interest: Travelling and going out with colleagues and friends

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B. Marketing Mix The following outlines the details of the proposed marketing mix for BasKit products: Product Strategy BasKit Baskets offers high-quality picnic baskets and picnic baskets with coolers to its customers. These baskets offer more space for customers things such as foods, drinks, and other items that they might need for their outing like picnic blankets and gaming materials. The other product that BasKit offers is not only a basket but a basket with cooler. This picnic basket with cooler not just stores food and drinks but can also preserve and make drinks cold. Picnic basket with cooler is great for those people who brings beverages and want it to be cold when they drink it. The product strategy of bringing a cooler inside a picnic basket will address the problem of those individuals who bring a cooler aside from their picnic baskets. Having a picnic basket with cooler eliminates the need of bringing a cooler in picnics. Another way which BasKit plans to expand its product line is to offer picnic basket with cooler and a drawer. This drawer is great for customers who have extra belongings such as plates, bowls, etc. Our Product

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Distribution Strategy BasKit Baskets primary target will be Metro Manila because it is the place where most people have the money to buy. BasKit will be marketed through specialty shops in Metro Manila such as SM Department Store where the company will offer 40-45 percent discounts for handling BasKits products. Over the next three years, BasKit seeks to expand distribution to retail specialty shops through the nation focusing on Cebu, Davao, and Central Luzon regions. The firm has not yet decided if it would be beneficial to sell BasKit baskets through national chains such as Kultura Filipino and Balikbayan Handicrafts, as these could be considered competitors. In addition, BasKit plans to sell its products through Internet so customers could order customized products from the stores. Promotion Strategy BasKit will communicate with consumers and retailers in many ways. Information about BasKit and its products will be available via the Internet, in its website. The company relies with SM Department Store to establish the products in their stores. In order for the consumers to be aware of BasKit products, the company developed its websites where interested customers will be available to see clearly the pictures of our products. The company also produced a brochure featuring BasKit products that will be distribute to targeted retailers. These brochures will be distributed to interested consumers through retailers. Other marketing methods that require little cash and a lot of creativity are the perfect for BasKit promotions. The company is still small but through its creativity, it is able to implement ideas like giving discount coupons and even giving free baskets at summer camps. The company plans to engage in the following marketing efforts: Sponsor a camping event in the summer. Hold a BasKit design contest, selecting a winning slogan and logo to be added to the customized line.

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Pricing Strategy BasKit Company provides good quality baskets for reasonable price that consumers can afford. The price of BasKit baskets are in the price range of P1999-P2499. The company offers a discount of 50% for the third product if a customer buys 2. Customers who buy at its website can use their credit card in paying.

V.

ACTION PROGRAMS

Picnic Room Company provides the action needed to meet the specified needs of customers based on the given current situation and to deliver and implement the stated strategies: Making it very available on stores Advertisements through companys active website Creating advertisements on social networking sites such as facebook and twitter Exploring and entering worldwide web stores such as multiply, sulit.com Since this generation has been aware of the technological advancements, the corporation decided to have a website from the time the product has been launched. It will be handled by the advertising department with the collaboration of the marketing department to make the system more efficient. Another reason for this is that most of the stores here and abroad have been using the web as another store to offer their products as well as other services. Moreover, the site will cost lesser than putting up a lot of advertisements on trimedia but the idea of it will not be disregarded by the company.

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VI. BUDGETS
(This is production plan and target sales for the business to continue the operation and to launch its marketing activities) Production/manufacturing cost: Based on every picnic basket Materials: Price in Peso Wicker picnic basket P1, 200.00 Bamboo-made division 250.00 Cooler 270.00 Basket for drawer 130.00 Total Material Cost P1, 850.00 Add: Manufacturing and Transportation cost (Including labor and taxes) 120.00 Product Cost Selling price: Product Cost Add: Mark-up Factory Price Add: 1st hand retailers (distributors) 2nd hand retailers (stores) Market Price P1, 970.00 80.00 P2, 050.00 20.00 30.00 P2, 100.00 P1, 970.00

Production: (If base in monthly production and it also the target sales quota per month) 1st production: Selling Price Multiply by: No. of pieces produced Target Sales 2nd production
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P2, 050.00 120 P246, 000.00

Selling Price Multiply by: No. of pieces produced Target Sales 3rd production Selling Price Multiply by: No. of pieces produced Target Sales 4th production Selling Price Multiply by: No. of pieces produced Target Sales 5th production Selling Price Multiply by: No. of pieces produced Target Sales 6th production Selling Price Multiply by: No. of pieces produced Target Sales 7th production Selling Price Multiply by: No. of pieces produced Target Sales 8th production Selling Price Multiply by: No. of pieces produced Target Sales 9th production Selling Price Multiply by: No. of pieces produced

P2, 050.00 240 P492, 000.00

P2, 050.00 480 P984, 000.00

P2, 050.00 960 P1, 968, 000.00

P2, 050.00 1920 P3, 936, 000.00

P2, 050.00 3840 P7, 872, 000.00

P2, 050.00 7860 P15, 744, 000.00

P2, 050.00 15360 P31, 488, 000.00

P2, 050.00 30720

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Target Sales 10th production Selling Price Multiply by: No. of pieces produced Target Sales 11th production Selling Price Multiply by: No. of pieces produced Target Sales 12th production Selling Price Multiply by: No. of pieces produced Target Sales

P62, 976, 000.00

P2, 050.00 61440 P125, 952, 000.00

P2, 050.00 122880 P251, 904, 000.00

P2, 050.00 245760 P503, 808, 000.00

From the 1st production we will use P246,000.00 worth of production cost to produce the 120 pieces (1 pieces costing P1,970.00) and after 12 th production or end of the year, we produce 245,760 pieces that market worth of P 503,808,000.00 and the production cost of it is P484,147,200.00. Therefore the net revenue for the year will be P19, 660,800.00. In the 2nd year of business operation, we will expand in Visayas particularly in Cebu. The same process of production will apply, also in the business expansion in Mindanao in the 3rd year. SALES AND EXPENSES FORECAST The Picnic Room Company monthly target sales shown above are the sales forecast. It is a positive view of the company that the production grows monthly. Aside from the fixed assets that the company has invested, the materials and supplies used to make picnic baskets is part of the expenses of the company. Another additional expense is the advertisements and sales promotion that was is written in the 4Ps. The expenses must not be higher than the sales. The expected expenses must be 10% of the revenue.

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VII. CONTROLS
Picnic Room Company makes sure that the activities of the entity are strictly monitored. As the business continuously run, the company focuses on monitoring how it will endure the pressure and how will it manage to handle the uncertain events that could occur.

The following are the provided ways of the company to have a strong control on the business itself and its performance in the market: Has a consistent monitoring of performance from every department particularly to the production team and marketing department. Supervises constantly services provided by the selling store where the product is located. Provides a clear and apparent financial report. Monitors how the competition plays in the battlefield. Directs properly the pricing policy.

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