Republic of the Philippines

Department of Education
Region I
Schools Division Office I Pangasinan
PANGASINAN NATIONAL HIGH SCHOOL
Lingayen

SY 2017-2018

2nd Semester

MARKETING PLAN
Grade 12 – ABM 3
Group 1

Submitted by:

Leader: Ravene Jhoi Dg. Dela Cruz

Members: Rofelice Altre

Sandee Sarzaba

John Robin Decena

Submitted to:

Ms. Kenchi Toni Malagayo

Subject Teacher
 MARKETING PLAN

I. Introduction
o Product

Veggiellas is a nutritious innovation of the typical pastillas or milk soft candy. The
Veggielicious pastillas will be served for a variety of vegetable flavors such as bitter gourd,
carrots, peanuts, malunggay leaves and squash. The combination of these vegetables
and milk will surely offer a flavorsome and nourishing version of pastillas

o Location

The location of this startup business will be located along the food stalls near the
Seven-Eleven in Alvear St Lingayen, Pangasinan as it serves as an accessible and
convenient place to attract customers.

o Target Market

The product, Veggiellas, which is made from the combination of milk and vegetables,
seeks to captivate a market opportunity, specifically, among the students near the location
as well as the different types of consumers in the locality.

o Industry Growth

The industry growth of this product will prosper and flourish the economy of Lingayen.
Veggiellas will be sooner recognized and patronized because of its wholesome and
nutritious features.

o Industry Type

Veggiellas will pave its way in the food industry business as it caters a unique
production of pastillas made from milk and different vegetables.

o Trends

Pastillas is considered as one of the all-time favorites of Filipinos, which is usually

made from solely milk. As it marks a name in the industry, many producers tend to add
and embellish new concepts such as introducing other flavors to make pastillas more
 appealing to the customers. In this case, the producers of Veggiellas, also tend to conform
with the trend by instilling an innovative and unique conception of pastillas made from
milk and vegetables to appeal for the healthy lifestyle of the consumers.

II. Mission/ Vision Statements

o Vision

To be recognized as a leading provider and maker of delectable and distinctive

pastillas or soft milk candy made from the nutritious variant of vegetables, which are
meant to be offered to customers to develop a healthy, wholesome and nourishing
lifestyle.

o Mission

The producers of Veggiellas, aim to offer a qualitative, nutritious and freshly made
pastillas or soft milk candy out of vegetables at a reasonable price and service to ensure
a satisfying and scrumptious treat for the valuable customers.

III. Situational Analysis

A. Competitors
o Seller of Pastillas products
Pastillas is one of the Filipino’s all time favorites, which comes in the form of typical
milk flavors. It is certain also that there are suppliers or sellers of pastillas in different
sari-sari stores near the location, but the most important thing here is that the
Veggiellas products will be more nutritious than the typical pastillas and it will be sold
at Price: Php 3.00
B. SWOT ANALYSIS

STRENGTHS WEAKNESSES

- Innovative version of pastillas - The taste of the pastillas brought by

- Nutritious and flavorsome product the different vegetables could
- Captivating appearance challengingly convince the
- Well- packaged consumers
- Easy to locate - The lifestyle habit of some
- Affordable price consumers who dislike vegetables
- The costs of the raw materials aren’t - It is a new concept introduced in the
so expensive market
- Easy to make or produce by simply
following the specific measures to
make the recipe
- The staffs are friendly and
approachable
- The staffs work in an organized and
systematic manner

OPPORTUNITIES THREATS

- Product’s promotion in social media - Fluctuating prices of the raw

sites materials
- Generating commercial to gain - The rising number of competitors
public interest - Price and taste wars among the
- Posters/leaflets for dissemination same kind of products offered by the
- Can be recognized as one of the competitors
leading providers of pastillas made
from vegetables here in Pangasinan
- Can be considered as the leaning
ground of the parents to feed their
children who usually despise the
taste of vegetables
C. MACRO MARKETING FACTORS

o Socio-Cultural and Demographic Factors

It’s definitely a Filipino nature that most of the citizens in our society, regardless
of the socio-economic status, gender, age and others, usually prefer to eat these
sweet delicacies. They are truly fascinated with the delectable taste of the sweet
delicacies. Whereas, most of them especially the young ones have the lifestyle habit
of disliking the taste brought by the vegetables. In this case, the concept of integrating
vegetables in the typical pastillas (known for its milky and sweet taste) can now offer
a new and innovative approach to convince the young ones to assure a healthy and
nourishing lifestyle.

o Economic Factors

Undeniably, many startup businesses are continuously venturing out in the

market wherein these business establishments offer a variety of products and
services; might be in the food industry, service industry and many more. In regards
to the Veggiellas business, the most important economic factors that must be taken
into consideration are the price inflation of the raw materials to be utilized and the
relationship of the demand and supply of the product.

o Legal Factors

Even if it is a small startup business, it still necessary to follow and complete

the legal requirements needed in putting up a business; this will also benefit the
business to have a security and an assurance.

o Technological Factors

It is evident that the emergence of technologies results to an instantaneous

process in all kinds of work. However, the Veggiellas business as a small startup
business doesn’t necessarily need advanced machineries or exquisite equipment to
continue its course. Yet, it is open for possibilities in the near future, as the producers
will seek to expand the business.
 o Environmental Factors

The main raw materials to be utilized in this business are the vegetables such
as bittergourd or ampalaya, carrots, peanuts, squash and malunggay leaves. Thus,
the environmental or ecological factors that can affect this business are the growing
season of these vegetables, and the unexpected natural calamities that can limit the
production of these vegetables. Another thing, the workplace efficiency of the
producers must be well-observed and the producers must abide with the
environmental rules and regulations such as the application of sanitary measures.

IV. TARGET MARKET

The business located along the food stalls near the Seve-Eleven in Alvear St
Lingayen, Pangasinan will primarily seek to captivate a market share among the
students of the nearby schools, as well as with the different types of consumers around
the area. Indeed, the business will target these types of consumers regardless of their
socio-economic status, gender and age as long as they want to try the newest and
nutritious version of pastillas. Most importantly, the producers of the business do
guarantee their consumers to have a wholesome and flavorsome treat for the
veggielicious pastillas.

V. MARKETING STRATEGIES

Executing well-planned marketing strategies can help boost sales volume, can
attract different types of consumers and can provide an escalation in the demand. In
order to attain these benefits, the 4Ps of Marketing Mix must be integrated in the
marketing strategies of the business. Here are the following:

o Product Strategy
Veggiellas, as the nutritious version of pastillas, will have a variety of flavors
such as carrots, peanuts, squash, malunggay and bitter gourd. Undeniably, these
vegetables will provide different health benefits to the consumers. The Veggiellas
products will be rolled with sprinkles and will be nicely wrapped.
o Pricing Strategy

The owners of veggiellas business will use market penetration pricing

strategy as the product introduces a new concept from the typical pastillas. They
will set an initial low price in order to gain market share and slowly rising it,
thereafter.

Price: Php 3.00

o Promotional Strategy

The business will seek to promote the innovative product version of pastillas
in the market through:

a) Social Media
Social Media sites such as Facebook and Instagram can help the
owners to promote the business. Surely, the visibility of the business can
reach everyone because of influence brought by the social media.
b) Word of Mouth Advertising
An unpaid form of promotion in which satisfied customers tell other
people how much they like a business, product or service. Word-of-mouth
advertising is important for every business, as each satisfied customer can
steer dozens of new ones to patronize your product.
c) Commercial Marketing
Nowadays, the integration of making commercial marketing and posting
it on the social media sites can increase the visibility of the business and can
instill an awareness to the consumers.
d) Flyers
Distributing flyers can also be a good marketing strategy to introduce
the business in the market as it gives an awareness to the consumers.
e) Product Sampling and Survey

Product Sampling and survey can also provide a way to ascertain the
feedback and suggestion of the consumers about the product of the business.
 o Place Strategy
The business will be located along the food stalls near the Seven-Eleven in
Alvear St Lingayen, Pangasinan, as it primarily targets the students of the nearby
schools likewise the different types of consumers around the area.

VI. MARKETING BUDGET

Marketing Budget
As part of marketing and establishing a business, it is indispensable to consider
making a well-sounded marketing budget to utilize the funds raised wisely and effectively.
In particular, Veggiellas will initially finance the business with an amount of
Php 202,649.00.

 STARTUP (YEAR 1)
Veggiellas
STARTUP SUMMARY
350 Quantity 10,500 Year 1
Quantity Quantity
EXPENSES Cost/ pc Veggiellas per Veggiellas (127,750
per day per year
per day month per month Veggiellas)

Store Expenses

Food Stall 8,000.00 1 8,000.00

Cooking pot 400.00 2 800.00
Refrigerator 8,000.00 1 8,000.00
Knife 70.00 2 140.00
Chopping Board 50.00 2 100.00
Pastillas Jar
50.00 5 250.00
Containers
Stainless spoon 10.00 5 50.00
Ladle 30.00 2 60.00
Bowl 30.00 5 150.00
Gas Tank 1,200.00 1 1,200.00
Gas Stove 900.00 1 900.00
Monoblock Chairs 350.00 5 1,750.00
 Total Store
21,400.00
Expenses

Overhead Cost
Pastillas Wrapper 8.00 3 24.00 90 720.00 1080 8,640.00
Printed logo (200
labels for the
product) 5.00 2 10.00 60 300.00 720 3,600.00
Total Overhead
Cost 34.00 1,020.00 12,240.00

Raw Materials
Gas 600.00 1/60 10.00 1/2 300.00 6 1/12 3,650.00
Ampalaya (200g) 10.00 1/2 5.00 15 150.00 182.5 1,825.00
Carrots(200g) 10.00 2 20.00 60 600.00 730 7,300.00
Squah ( 1000g) 20.00 3/5 12.00 18 360.00 219 4,380.00
Peanut (150g) 10.00 2 20.00 60 600.00 730 7,300.00
Malunggay (100g) 0.00 0 0.00 0 0.00 0 0.00
Sprinkles(100g) 15.00 3 45.00 90 1,350.00 1,095.00 16,425.00
Milk Powder
912.50
(300g) 82.50 2 1/2 206.25 75 6,187.50 75,281.25
Condensed Milk 29.50 2 1/2 73.75 75 2,212.50 912.50 26,918.75
Sugar(1400g) 15.00 3/5 9.00 18 270.00 219 3,285.00
Total Raw
Materials 401.00 12,030.00 146,365.00

Operating Expenses
Permits and
licenses 1,500.00 1 1,500.00
Marketing
Promotions
(quarterly) 1.20 120 144.00
Business Opening
Marketing
Promotions 1,800.00
Commercial Space
for Rent 1,500.00 1 1500.00 12 18,000.00
Repairs and
Maintenance
Expense 300.00 4 1,200.00
 Miscellaneous
Expenses 500.00 1 500.00 12 6,000.00
Total Operating
Expenses 22,644.00

TOTAL 202,649.00

Table 1.1 shows the startup plan in executing the business, which composes of
the estimated store expenses, overhead costs, raw materials expenses and other
operating expenses for the 127,750 Veggiellas of the Year 1.

 Basis for the Selling Price (Year 1)

Basis for Selling Price

Total/day Price/unit
Raw materials 401.00 1.15
Overhead Cost 34.00 0.10
435.00 1.24
COGS for Year 1 158,775.00

Table 1.2 shows the breakdown for the raw materials expense and overhead cost
per day, as well as the cost of good solds for the year 1 in order to work on the cost price
per unit. (350 Veggiellas per day)

Selling Price
Selling Price 2.4856 3 200.0%
Cost Price 1.24 1.24 100.0%
MarkUp 1.24 1.76 100.0%

Table 1.3 shows the computation for the selling price of the product. There’s a
markup (based on the cost price) of 100% and the resulting selling price per unit of
Veggiellas is Php 2.48 or Php 3.00
 Sales Projection for Year 1

SALES PROJECTION FOR YEARS 1

DAILY MONTHLY YEAR 1
PRODUCT PRICE/PC
QTY PESO QTY PESO QTY PESO
Ampalaya 3.00 80 240.00 2,400 7,200.00 29,200 87,600.00
Carrots 3.00 60 180.00 1,800 5,400.00 21,900 65,700.00
Malunggay 3.00 85 255.00 2,550 7,650.00 31,025 93,075.00
Squash 3.00 55 165.00 1,650 4,950.00 20,075 60,225.00
Peanut 3.00 70 210.00 2,100 6,300.00 25,550 76,650.00
TOTAL 350 1050.00 10,500 31,500.00 127,750 383,250.00

Table 1.4 shows the sales projection for year 1 of Veggiellas. With a selling price
of Php 3.00 per unit of Veggiellas, the projected sales for year 1 is Php 383,250.00

 YEAR 2 PROJECTED EXPENSES

YEAR 2 PROJECTED EXPENSES

12,600
Year 1 Quantity Quantity 420 Quantity Year2
Year 2 pastillas Quantity
EXPENSES Cost/ per day per day pastillas per (153,300
Cost/pc per per year
pc (1) (2) per day month pastillas)
month
Overhead Cost
Pastillas
Wrapper 8.00 3 3.6 28.80 108 864.00 1314 10,512.00
Printed logo
(200 labels for
the product) 5.00 2 2.4 12.00 72 360.00 876 4,380.00
Total
Overhead Cost 40.80 1,224.00 14,892.00

Raw Materials
Gas 600.00 630.00 1/60 1/30 21.00 1 630.00 6 1/12 3,832.50
Ampalaya
219
(200g) 10.00 10.50 1/2 3/5 6.30 18 189.00 2,299.50
Carrots(200g) 10.00 10.50 2 2 2/5 25.20 72 756.00 876 9,198.00
Squah ( 1000g) 20.00 21.00 3/5 5/7 15.12 21 3/5 453.60 262 4/5 5,518.80
Peanut (150g) 10.00 10.50 2 2 2/5 25.20 72 756.00 876 9,198.00
Malunggay
0
(100g) 0.00 0.00 0 0 0.00 0 0.00 0.00
Sprinkles(100g) 15.00 15.75 3 3 3/5 56.70 108 1,701.00 1,314 20,695.50
 Milk Powder
1,095
(300g) 82.50 86.63 2 1/2 3 259.88 90 7,796.25 94,854.38
Condensed Milk 29.50 30.98 2 1/2 3 92.93 90 2,787.75 1,095 33,917.63
Sugar(1400g) 15.00 15.75 3/5 5/7 11.34 21 3/5 340.20 262 4/5 4,139.10
Total Raw
Materials 513.66 15,409.80 183,653.40

Operating Expenses
Permits and
licenses 1,500.00 1 1,500.00
Marketing
Promotions
(quarterly) 1.20 120 144.00
Business
Opening
Marketing
Promotions 1,800.00
Commercial
Space for Rent 1,500.00 1 1500.00 12 18,000.00
Repairs and
Maintenance
Expense 300.00 4 1,200.00
Miscellaneous
Expenses 500.00 1 500.00 12 6,000.00
Total
Operating
Expenses 22,644.00

TOTAL 221,189.40

Table 2.1 shows the projected expenses for the year 2. Presuming that there is a
5% increase in the costs of raw materials and there is a 20% increase in the demand of
veggiellas. (420 pastillas per day).

 Basis for the Selling Price (Year 2)

Basis for Selling Price

Total/day Price/unit
Raw materials 513.66 1.22
Overhead Cost 40.80 0.10
554.46 1.32
COGS for Year 2 202,377.90
 Table 2.2 shows the breakdown for the raw materials expense and overhead cost
per day, as well as the cost of good solds for the year 2 in order to work on the cost price
per unit. (420 Veggiellas per day)

Selling Price
Selling Price 2.640285714 3 200.0%
Cost Price 1.32 1.32 100.0%
MarkUp 1.32 1.68 100.0%

Table 2.3 shows the computation for the selling price of the product. There’s a
markup (based on the cost price) of 100% and the resulting selling price per unit of
Veggiellas is Php 2.64 or Php 3.00

Still, the selling price would remain Php 3.00 for the second year

 Sales Projection for Year 2

SALES PROJECTION FOR YEAR 2

DAILY MONTHLY YEAR 2
PRODUCT PRICE/PC
QTY PESO QTY PESO QTY PESO
Ampalaya 3.00 95 285.00 2,850 8,550.00 34,675 104,025.00
Carrots 3.00 75 225.00 2,250 6,750.00 27,375 82,125.00
Malunggay 3.00 95 285.00 2,850 8,550.00 34,675 104,025.00
Squash 3.00 70 210.00 2,100 6,300.00 25,550 76,650.00
Peanut 3.00 85 255.00 2,550 7,650.00 31,025 93,075.00
TOTAL 420 1260.00 12,600 37,800.00 153,300 459,900.00

Table 2.4 shows the sales projection for year 1 of Veggiellas. With a selling price
of Php 3.00 per unit of Veggiellas, the projected sales for year 2 is Php 459,900.00
 Projected Income Statement for Years 2

PROJECTED INCOME STATEMENT FOR YEARS 1-2

YEAR 1 YEAR 2
Sales Revenue 383,250.00 459,900.00
Less: Cost of Good Sold 158,775.00 202,377.90
Gross Profit 224,475.00 257,522.10
Less:
Selling Expenses
Store Expenses 21,400.00
Marketing Promotions Expenses(quarterly) 144.00 144.00
Business Opening Marketing Expenses 1,800.00
Rental Expense 18,000.00 18,000.00
Miscellaneous Expense 500.00 500.00
Repair and Maintenance Expense 1,200.00 1,200.00
Other Operating Expenses
Permit and License Fee 1,500.00 1,500.00
Earnings before Interest and Tax 180,431.00 236,678.10
Tax (5%) 9,021.55 11,833.91
Net Income 171,409.45 224,844.20

Table 3 shows the projected income statement of Veggiellas for Years 1 and 2. All
store expenses were already covered up in the Year 2. In addition, it is also presumed
that there will be an increase of 20% in the quantity demand and supply of Veggiellas
ranging from 350 to 420 pastillas per day; and also, the cost of some raw materials
increased with 5% (as shown in the Table 2.1). Consequently, the net income of Php
171,409.45 in the year 1 increases to Php 224,844.20 in the year 2.
 Net Income

Year 1 Year 2
Annual Income 171,409.45 Annual Income 224,844.20
Monthly
Monthly Income 14,284.12 Income 18,737.02
Daily Income 469.61 Daily Income 616.01

The 2 table shows the annual income, monthly income and daily income of the
business

 Marketing Promotions

Marketing Promotions
Quantity per Quantity per
Cost / pc Year 1
quarter year
Flyers (30 flyers per
bond)(photocopied) 0.60 40 120 72.00
Survey sheets
(30 sheets per bond)(pc) 0.60 40 120 72.00
Total Marketing Promotions 144.00

Table 4 shows the breakdown of expenses for the Marketing Promotions. It will be
done quarterly and it will include the expenses for flyers and survey sheets. An estimate
of Php 200. 00 will be utilized for this said activity

 Business Opening (Marketing Promotions)

Business Opening (Marketing Promotions)

Cost/ pc Quantity Year 1
Tarpaulin (2ft x 3ft) 250.00 2 500.00
Product Sampling (500 pastillas) 900.00
Flyers (30 flyers per bond)(printed) 10.00 40 400.00
Total Business Opening Promotions 1800.00

Table 5 shows the breakdown of expenses for the Business Opening Marketing
Promotions. It includes the expenses for tarpaulins, product sampling and flyers. An
estimate of Php 1,800.00 will be utilized for this said opening activity of the business.