PRODUCT

Sampaguita plantation aims to produce high quality sampaguita that will

accommodate the need of the garland makers, sampaguita vendors, and manufacturing
companies that use sampaguita in making different sampaguita products.

The proponents chose sampaguita as their product as it is easy to produce, long

lifetime, low maintenance, and low capital requirement. Also, there is no existing
sampaguita plantation registered in Central Luzon.

Sampaguita plant grows on any type of soil where it reaches a height of 1 to 2

meters. The leaves of sampaguita are rounded or ovate in shape which measures 6 to 12
cm long. The leaves of sampaguita and its flowers grow on short stalks. The sampaguita
flowers bloom either singly or as bundles of blossoms at the top of the branches. Blooming
all through the year, sampaguita are pure white, small, dainty, star-shaped blossoms. The
flowers open at night and wilt in less than a day. A good quality of sampaguita flower has
about 8-10 calyx teeth that are very slender, and 5 to 8 mm long. The sampaguita corolla
tube is slender and 1 to 1.5 cm long, the limb is usually double and 1.5 to 2 cm in diameter.
The 2 stamens on the Sampaguita are included with a 2-celled ovary. Sampaguita flowers
tend to wilt within a day or two after harvest.

Weather affects the quality and quantity of sampaguita flowers:

Peak Season (March to September) – Sampaguita plant produces good quality

and abundant sampaguita buds as measured by its petals (calyx teeth) which a single bud
comprised of 8 to 10 calyx teeth that are 5 to 8 mm. A single shrub produces at least 18
sampaguita buds.

Lean Season (October to February) – With the cold temperature, sampaguita

plants produce small and quite few sampaguita buds where a single bud still has 8 to 10
calyx teeth, but the measurement is at most 5 mm only. A single shrub only produces a
handful sampaguita buds.
Different uses for sampaguita parts are as follow:

Oil - extracted oil from sampaguita flower, with its fragrance, can be used in
different cosmetics such as perfumes, hair oils, lotions, and even deodorants. The oil can
even be used as a raw material in making candles that are usually used in aromatherapy.

Petals/Flowers - are used in making herbal tea which people use to alleviate
different ailments such as headache, cough, fever, and diarrhea. Sampaguita flowers or
buds are usually used in making garlands which are used to welcome guests, and as an
offering to religious ceremonies.

Plant – sampaguita plant roots are used as treatment for shallow skin-cuts and
snakebites. Sampaguita plants are effective herbal medicines with their antipyretic agents
and decongestants ingredients.

Sampaguita plantation will also raise the awareness of the Philippines national
flower and will encourage new research about sampaguita. The plantation itself will
provide more jobs to the residents and local farmers of Mabalacat City which will provide
them an additional income.

PLACE
 To be more accessible to the target market, we have decided to use the four (4)
hectares of land in Mawaque, Mabalacat City for our company and plantation. Since there
is only one existing plantation of sampaguita in Pampanga which is in Lubao, San
Fernando City, 40 kilometers away from our target markets which are Angeles City and
Mabalacat City.

Mabalacat City houses different bus stations which makes it more accessible to
the market. Also, different churches, where sampaguita vendors stay, can also be found
in Mabalacat City.

Different channel of distribution was also devised by the proponents to efficiently

and effectively distribute the product. From the sampaguita plantation, the product then
would be delivered to the retailer which is the garland makers and different manufacturing
corporations which will use the sampaguita to create new product that will reach the
consumer.

To reach more target market, a public market will be opened near SCTEX of
Mabalacat City which will serve as the meeting point of seller and buyer. Also, a spot in
Golangco Market in Lubao, Pampanga, where different sampaguita vendors operate, will
be taken to compete in the market.

PRICE

Price as one of the four major marketing strategies, affects both the sales of a
company and the profit it will earn for given time. Hence, the proponents have devised a
pricing strategy which is the dynamic pricing strategy. Dynamic pricing strategy is pricing
the product according to the level of demand, quality and quantity of the product, state of
the market, or the current weather because it greatly affects the sampaguita flower.
Usually, the market for sampaguita is basing their price according to the conditions
mentioned above which will almost be the same for our company. Also, different factors
would affect the price of the sampaguita such as operating expenses, discounts (if any),
or losses for damaged goods.

The standard price on the market for sampaguita based from calculations of data
gathered from surveys, with an assumption of two different seasons—Lean and Peak:
Table 2.5 Price of Sampaguita per 1L - Can of Car Oil
Lean P326.00

Peak P47.00

Dynamic pricing strategy means charging the customer higher if the demand is
high and the supply is low, or lower when the demand is low, but the supply is high. Also,
geographical areas would play a role as there would be a freight charge that would be
added. Discounts and losses for damaged goods will also be considered.
 The pricing strategy is a critical decision as this will help in determining the gain
and profit of the company and if they are enough to cover the different expenses of the
company.
PROMOTION

Sampaguita plantation aims to be one of the biggest suppliers of sampaguita.

Hence, it is necessary for the company to be known to the market. The proponents have
devised a promotion strategy which includes advertising and sales promotion. For the
advertising, a product advertising is suitable since the company is selling a product.
Product advertising includes pioneering advertising since the company is just new to the
market. This is to inform the target market about the company and to build primary demand
to the sampaguita.

Methods that will be used for the advertising include direct method and indirect
method. Direct method would be giving fliers, setting up a place in the market, and direct
advertising such as personal selling to the target market. Indirect method would include
media such as newspapers and local television. Strategic advertising concept is as
follows:

Inform – the part of advertising strategy which aims to disseminate information to

the public by engaging in public with flyers, leaflets, and different merchandises to give
away to the potential buyers. In this stage, introduction of the company and its product
should be accomplished.

Persuade – this time, giving the advantages and benefits of the company that it
will give to the customers will be done. Image branding plays a vital role in this stage as
this will decide if the customers will trust the company or not based from the message
given by the company.

Remind – maintaining the interests of the customers is never easy. It could only
be done by establishing relationship between the buyer and seller through constant
communication. This will remind the customers of the company if it’s seen more frequently.

Sales promotion will be giving discounts to bulk buyers of sampaguita, giving

company calendars to customers, and other price deals that would expand the market for
sampaguita.
Table 2.6 Proposed Advertising Expenses
Opening Promotion
ITEMS SIZE QUANTITY UNIT COST TOTAL
8 ft. x 5 ft. 1 15 / sq. ft. 600
Tarpaulin
5 ft. x 3 ft. 15 15 / sq. ft. 3,375
Newspaper/Media
1/8 Column Package 24,293 24,293
Advertisement
Leaflets/Flyers ½ Bond Paper 1000 1 per page 500
T-Shirts S, M, L, XL 100 100 / shirt 10,000
Fans Single Size 1000 12 / 500 12,000
TOTAL 50,768