Marketing Plan Analysis for a New Shop
Lyceum of the Philippines University General Trias, Cavite Marketing Plan Submitted by: Alvarado, Jovelyn Austria, John Kerwin Bayya, Mark Angel Blasco, Thyrone Luigi Casimiro, Ardee Darren Casitas, Vergel Ramirez, Jonathan Rosella, Julius Tanael, Joanna Terrobias, Juan Paolo Villanueva, Neill Joshua I. Executive Summary As a requirement for the marketing subject, we, the third year students made this marketing plan regarding a souvenir shop.
We chose to name the shop, Treasure Chest, because treasures are connected with the Pirates trade mark of the Lyceum of the Philippines University. Treasure Chest will be located in the ground floor of the new building of LPU-Cavite Campus, near the Bookstore and will operate this coming June 2013. Treasure Chest specializes in an assortment of high-quality merchandise ranging from customized t-shirts, varsity jackets and different accessories. Since located inside a private university, Treasure Chest caters from middle to upper class students, faculties and visitors.
What differentiate our company from other specialty shops are our “one-of-a-kind” product line and a number of exclusive, proprietary products we designed ourselves and aside from that Treasure Chest will be also the first and only souvenir shop that will be established inside the Lyceum of the Philippines University- Cavite Campus. Treasure Chest plans to generate moderate income in the year one for the business is still growing. We also plan to develop our company website and hire individuals to help us design more for the business in the coming years.
We also plan to broaden our product line if the customers have easily accepted our business. II. Current Marketing Situation Market Treasure Chest target market will be all of the people within the university. To be exact, market will be comprised of the groups from: * Generation Z – This is composed mainly of high school students and lower college year level which are born with complete technology. Because they are more into internet especially the social networking sites, they also know the trend nowadays of customized and specialized clothing.
They’re smarter, and they’re demanding we take them seriously as major consumers. * Generation Y – This is composed of mostly college students in the second to fourth year and just like the generation Z, is still into Internet world. They also tend to engaged into online shopping, that’s why a website will be developed in the next year to cater them also. They are more ethnically diverse and is experiencing tremendous growth in spending power * Generation X – this group is composed mainly of the faculties in the younger years and still we consider them as markets for they are also following the trend of nowadays.
Some are married also and will be having children so they can buy our product not for them but for their child as a gift which mostly in the generation Z. As a souvenir shop located inside a private university with a population of almost six thousand, we are expecting to have a market from middle to upper class and consisted of a mix of male and female customers. These are mostly students, faculties and also the visitors. They are educated and find “word-of-mouth” and referrals from friends and colleagues extremely significant when making decisions.
Even though of the economic situation nowadays, research have found consumers have continuously been focused on how they look, how they dress and are they still in for the fashion. Treasure Chest will sell affordable products but not sacrificing the quality. We ensure to provide products that will guarantee customer’s satisfaction Product Mix Treasure Chest offers an assorted ensemble of t-shirts, varsity jackets and other accessories designed to fit the client’s personal style. Our souvenir shop also incorporates exclusive proprietary products made by us. What started out as a hobby for us soon evolved into a promising business venture.
After meeting we realized that we shared interests and a similar hobby. We have assembled an array of talented and approachable vendors, Joanna Tanael and Jonathan Ramirez along with skillful craftsmen, Kerwin Austria, Thyrone Blasco and Ardee Casimiro and business entrepreneurs who will showcase a unique product line that will embody Treasure Chest’s tag line “Pirata ako! Sa damit, gamit at iba pa”. The following are the product line offered by Treasure Chest: * T-shirts – Our offering of specialized and customized garment to reflect a university college and individual style will surely enhance the customer’s wardrobe.
We use graphic imagery along with the help of great artist, Juan Paolo Terrobias. Price in this product ranges from 150. 00php to 350. 00php. * Varsity Jackets – The popular varsity jackets will be even more popular because of the newest and coolest design offered by Treasure Chest in addition to extraordinary fabrics. Price in this product ranges from 300. 00php to 500. 00php * Accessories – Our product line of accessories is a collection of modern accents that customers can certainly connect with. This includes; * Ballers – Price ranges from 20. 00php to 50. 0php * Ballpen – Price ranges from 10. 00php to 20. 00php * Pin – Price ranges from 50. 00php to 100. 00php * Key Chain – Price ranges from 20. 00php to 35. 00php * Caps – Price ranges from 100. 00php to 300. 00php Sample of the products we offer are displayed on the next page. Competition Specialty gift retailers have the ability to distinguish themselves merely by the types of products and/or services that they offer and Treasure Chest is no exception. Even though this is the first souvenir shop inside the university and there is no competition inside.
We still have identified and conducted an in-depth analysis of two of our competitors located near the campus. To aid in a more effective analysis, Neill Villanueva and Vergel Casitas visited all two competitors to observe pricing structures, company image, traffic-flow, location and range of service. The analysis proved to be valuable to Treasure Chest in identifying our competitive edge, areas of uniqueness, and marketing “niche. ” * SM City Dasmarinas – SM City Dasmarinas is a Supermall located along Governor’s Drive, Brgy. Sampaloc 1, Dasmarinas City, Cavite.
The mall attracts a daily pedestrian count of 400,000 during weekends and 100,000 during weekdays, making it one of the most profitable and successful SM Supermall built and operated by the leading mall developer. As a mall many stalls inside tend to offer the same product line as we offer. Their target market varies, from baby boomers to generation z. Price ranges from 100. 00php to 1000. 00php. Hours of operation are Monday through Sunday 10 a. m. — 9 p. m. * Robinsons Place Dasmarinas – is a shopping mall owned and operated by Robinsons Land, the second largest mall operator in the Philippines.
It is the 13th mall opened by Robinsons and the 2nd mall in Cavite province. Located within the corners of the busiest highways in the province, this 3-level shopping mall has over 150 shops, dining outlets, entertainment facilities and service centers. Across the structure is its rival mall, SM City Dasmarinas. And just like SM, it has the stalls that can offer the same product as we do and market also varies. Robinsons operates from Monday to Sunday, 10:00 am to 8:00 pm. Distribution Treasure Chest sells t-shirts, varsity jackets and accessories that is customized and personalized by us.
Raw materials such as t-shirts and plain jackets will be from a known supplier, Blue Corner, while accessories will be from a novelty shop and with our creativity will create new and interesting products. Treasure Chest is engaged in a zero-level distribution wherein we directly sell what we had manufactured. Word of mouth will be used, so that networking through family and friends will help inform new and existing customers about our products. III. Opportunity and Issue Analysis Strengths * Treasure Chest is the first and only souvenir shop located inside the university. We offer unique and one of kind souvenirs, designs is especially made by us. * Some accessories are handmade and is surely to be incorporated with quality. * We are composed of creative staff and can work in harmony. * We have a good educational background and can handle a business successfully because of the quality education we had received. Weaknesses * The range of our products is considered small in relation to more established businesses. Yet these items are engaging and personable. The location of the store cannot be easily seen from afar and is too far from the entrance that visitors might not notice it. * Our schedules might not be suitable for operating the business. Opportunities * Specialized souvenirs such as t-shirts are rapidly increasing in popularity. * Teens nowadays demand for a high quality product that is still in line with the current trend and fashion. * Internet is almost available for all and we can use this for promoting our product Threats * As the first and only souvenir shop inside the campus, competitors might emerge suddenly. Due to unstable economic conditions, prices might also change drastically especially from our supplier. * The current trend may shift unexpectedly. * The business will be not be operational in all days especially holidays. IV. Objectives In the following years of Treasure Chest’s operation, we are planning to add more product line so customers would not be looking for the products we don’t offer. A website will be also developed within the first year of operation to help us promote our product more aside from the word-of-mouth.
We are also expecting to have an increase in the percentage of our returning customers to 5% and at the same time, also increase the number of new customers. The figure above is projected sales forecast. We can see that the shop increase in sales during December because of the gift –giving practice during Christmas, many students chose to buy items from Treasure Chest and make them as a gift. We can also see that there is declining sales in every end of each semester for most of students are on their vacation and will go to school seldom.
In this month, the sales are mostly from the visitors who enter the school for inquiry purposes and enrolment. Treasure chest expects to generate moderate income for the first year of operation and gradually increase the profit in the following years. Another objective of the business is to increase the customer’s satisfaction and lessen their complaints by attending to their needs. V. Marketing Strategy Although Treasure Chest products are high-end and stylish, our pricing structure remains affordable and in-line with other specialty gift retailers.
Our pricing structure is also based on the value the customers place on these products. We will promote the product by first introducing it to our friends and let the word-of-mouth to happen. Promos will be also available like the discounts and buy 1 take 1 for some slow moving items so that we can showcase new products. Moreover, we can advertise using different social networking sites like the facebook and twitter for free. Another thing is that, establishing a rapport and connection with the customer directly affects a business’ sales.
That’s why a suggestion/comment box will be available to customers near the shop’s entrance. This provides Treasure Chest with direct customer feedback concerning areas of improvement or enhancements. Training staffs also are in the list for it will help on how they communicate with customers properly and how to build a good sound relationship with them. This training will also make staffs to be more helpful and personable assuring customers’ satisfaction and exceeding their expectations and needs. For the sales to increase, Treasure Chest needs to stay close to the product and market trends.
Treasure Chest will continue to develop creative and stylish products that will continue to strengthen our brand positioning and company image. VI. Actions Plan 1. Store Location Confirmed * Done on May 4, 2013 * By Kerwin Austria * 0. 00php 2. Grand Opening Advertisement * Done from May 27, 2013 to June 8, 2013 * By the whole company * 1500. 00php 3. Advertisement thru Social Networking Sites * Done from June 9, 2013 to June 9, 2015 * By Ardee Casimiro and Julius Rosella * 0. 00php 4. Train Staffs * Done from July 13, 2013 * By Juan Paolo Terrobias * 7500. 00php 5.
Develop creative and new stylish products * Done from August 21, 2013 to December 31, 2014 * By Joveln Alvarado and Thyrone Blasco VII. Projected profit-and-loss statement The profit and loss figures show Treasure Chest balances on the knife edge of profitability. The owners are aware that they may forego salaries in any given month to insure profitability and positive cash balance. VIII. Controls As Treasure Chest operates, all the members are responsible in monitoring the plans we had made. Controlling should be done in order to ensure that the business still moving to achieve its goals.
When problem arises, we should determine the ways on how to solve it so if the same problem happens again, we can easily top it. Standards will be also set and will be followed by measuring the employee’s performance. For instance, our craftsmen must maintain a rejection rate of not more than 2% and must complete their work within a week of the assignment. After evaluating the employee’s performance, taking corrective actions will be the next step to enhance poor performance and to still establish a better working quality. Customers are also one of the important factors.
With the help of the comment box, we will be able to know their feedbacks, comments and suggestions, we can also adjust our marketing plan with the results of feedback thus increasing the guest satisfaction and minimizing our cost, for example a newly product we release is not popular on them. Actual sales in the target market are compared to the marketing plan projections to see if any changes need to be made. If sales are down, then further market research needs to be done to see why the target audience is not responding to the marketing. Budgeting will be also done to minimize spending and maximize profitability.
