MARKETING PLAN

Marketing Plan A. Product/Service to Sell I. Benefits, Features and Advantages Our product is a canvas bag. It is eco-friendly, fashionable and can be custom designed. Not only is canvas a renewable resource, but the bags are biodegradable and sturdy enough to stand up to years of use. With global warming emerging as an everyday anxiety, designers and consumers alike latched on to the reusable tote as a tangible step they could take to help the environment. Reusing canvas bags could reduceand eventually eliminatethe billions of plastic bags that are discarded every year.

B. Target Market I. Area Coverage Our area coverage is all over the Philippines with the total population of 92,337,852 as of May 1, 2010 according to National Statistics Office. 1. Market Description Since most of the cities in the Philippines are Plastic-free, these customized Canvas bag will surely be a trend because of its fashionable designs. Furthermore, it will suit most people especially the environmentalist type of persons. It can be used by both genders because of its backpack style.

2. Target Market Profile

Our target market includes toddlers, teen agers and mothers. Ages between 5-25 yrs old that belongs to class B and C because they are more practical and budget conscious. II. Consumer Ages between 5 -25 years old that belongs to B and C class because they are more practical and budget conscious. And also teen agers belongs to the B and C class has an enough allowances in buying products for their needs. Teen agers who wants convenient and fashionable design canvas bag that they can bring anywhere especially in schools. Mothers who want an affordable eco-friendly bag.

1. Consumer Buying Behaviour

Products:
Should be made from an eco-friendly material and has attractive design.

Price:
Affordable Price is associated with quality

Promotion: Place:
Accessibility and Conveniency Should use marketing tools that will communicate the product's features, benefits and advantages

C. Demand and Supply Analysis i. Historical Demand (Five Years)

YEAR 2008 2009 2010

PER DAY 3 6 9

PER WEEK 21 47 63

PER MONTH 93 186 279

PER YEAR 1,116 2,232 3,348

2011 2012

12 15

84 105

372 465

4,464 5,580

5,580 4,464 3,348 6,000 4,000 2,000 3 0 2008 2009 Per Day 2010 Per Week 2011 Per Month 2012 Per Year 21 6 93 47 9 1,116 232 186 63 12 279 84 15 372 105 465

The figure above shows the historical demand of canvas bag in the Philippines. . The demand increases as the year goes by

ii. Projected Demand (Five Years) YEAR 2013 2014 2015 2016 2017 PER DAY 20 30 40 50 60 PER WEEK 140 210 280 350 420 PER MONTH 620 930 1,240 1,240 1,860 PER YEAR 7,440 11,160 14,880 14,880 22,320

Table shows the projected demand of canvas bags for five years. It shows that as there is an increase in demand as the year increases.

22,320 11,160 14,880 14,880

30,000 20,000 10,000 0 2013 140 20

7,440 620 210 30 2014 Per Day

930 40 2015 Per Week

1,240 280 50 2016 Per Month

1,240 350 60 2017 Per Year

1,860 420

The figure above shows the historical demand of canvas bags in the Philippines. . The demand increases as the year goes by

iv. Projected Supply (Five Years) YEAR 2013 2014 2015 2016 2017 PER DAY 200 220 240 260 280 PER WEEK 1,400 1540 1,680 1,820 1,960 PER MONTH 6,200 6820 7,440 8.060 8,680 PER YEAR 74,400 81,840 89,280 96,720 104,160

84,000 200,000 150,000 100,000 50,000 0 2013 2014 Per Day 250 7,000 1750

100,800

117,600

134,400

151,200

8,400 350 2015 Per Week

9,800 2450

11,200 450 2017 Per Year

12,600 3,150

2,100 300

2,800 400 2016

Per Month

The figure above shows the historical supply curve of canvas bag in the Philippines. D. Market Research i. Procedure in Conducting Market Research We asked 50 respondents from College of Saint Benilde students to answer our questionnaire. ii. Respondents Profile Our respondents are students from College of Saint Benilde ages 15 27 years old. 64% of the respondents are female and 44% are male.

iii. Survey Results and Analysis

Sex
Male 44% 56% Female

The graph shown above that 56% of the respondents are female while the remaining 44% are male.

Age
8% 24% 15-20 yrs. Old 21-25 yrs. Old 26-30 yrs. Old 68%

68% of the total respondents are ages 21 25 years old while 24% of them are 26 30 years old and the remaining 8% are 15 20 years old.

How do you find out the latest products in the market?

Online 38% 44% Brochure Periodical Advertisements

2%

16%

The graph shown above that 44% of the respondents find out the latest products through advertisements. While 38% of them said online. Only 16% said brochure and 2% periodical.

What kind of design do you prefer?

30% 26% Vector Cartoon/Anime 20% 24% Abstract Classic

The graph above shown that 44% of the respondents said that through advertisements they find out the latest products in the market and 38% said they find it online. 16% of the students said find out through brochure and the remaining 2% said periodical. We found out that the most effective way to advertise a product is through advertisements. 30% of the respondents prefer to have classic design while only 26% wanted vector design. We found out that Abstract and cartoon design are not that in demand for our respondents.

If yes, how often do you use canvas bag?

10%

38% 24%

Everyday Once a week Once a month Others

28%

The graph above shown that only 10% of the respondents uses canvas bag everyday while 28% said that they only use canvas bag once a month. 24% uses canvas bag once a week and 38% rarely uses a canvas bag.

How much would you pay for a canvas bag?

11 13
100 200 300 400 73%

2%

The graph above shown that 73% of the respondents are willing to pay for 400php per canvas bag. While the remaining would pay for a lower cost.

Where would you prefer to purchase/claim your iterm?

Mall/Store Mail/Delivery Meet - up Others 120%

The graph above shown that respondents would prefer to purchase their item in other way while others still would want to claim their items at mall, thru delivery and meet up. E. Projected Sales i. Per Month in a Year January February March April May June July August September October November December 10,000 10,000 5,000 10,000 20,000 15,000 10,000 5,000 3,000 4,000 10,000 15,000

F. Marketing Program/Strategies i. Key Success Factors - Making a product that will help the environment and at the same time to earn profit from it. - To encourage the consumers to use a canvas bag instead of plastic. - To promote affordable bags but at the same time fashionable for budget conscious consumers. ii. Own Marketing Program/Strategies 1. Product Strategy

Le Bag product is an eco friendly, reusable and can be custom designed bag. Consumers can buy canvas bag that has design already or they can create their own design and choose their own size of bag. 2. Pricing Strategy PRODUCT NAME PRICE We will use market penetration strategy in pricing since our target market is class B and C. The products will be sold on a low cost since the target market primarily consists young people and budget conscious. To increase our sales, we balance the products affordability to its quality. 3. Distribution Strategy Our distribution strategy is Direct selling thru Internet. We will use websites to process their orders. It would be very convenient for them to order since they are busy with their works. 4. Promotions Strategy We will promote our product through online and social media. We can also print out tarpaulins and banners to promote our product.

a. Sales and Promotion Program On the months where we have low demand we will sell our product with freebies to attract customers. b. Advertising Program We have Facebook page and other Social networking websites to give information about our recent and upcoming designs. To extend customer service and to generate more information towards customers after -sale experience

Preoperating Marketing Expense year 2013 Marketing Tools Tarpaulin (4x4) Objectives To attract customers and to increase awareness of our product. To build awareness to the customers in our latest promotions and to attract new customers. Duration Quantity July December 2013 10 Cost per piece Total

P400.00

P4,000

Posters

January June

20

P250.00

P10,000