CHAPTER 1

BACKGROUND AND HISTORY

This chapter involves general information about the company.

History of Business

Everything started in ABM week in Senior High School where students were

asked to open their own small businesses as their project and application of

what they learned in their classes. Many products arose from that project.

Students became so hard-working in order to attain their respective goals. Their

efforts brought a big impact that surely made their businesses great. However,

two groups dominated among the others namely Not’yo House and Juicy Me.

Customers preferred the former as the favorite source of snacks and the latter as

the stall that offers good drink.

At first, both groups were very competitive with each other despite the

differences when it comes to their products since there will be only one to be

named as the Business of the Week. In the end, Not’yo House got that award.

But they did not settle there. The members decided to continue the business.

Also, knowing that Juicy Me gained a big amount of profit, they proposed to the

other group if they may merge.

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 They also argued that they should meet due to the demands of the

public. After weeks of thinking about the proposal, Juicy Me accepted it. There

came the MAR2MAS with new innovations and offers for their valued customers.

General Company Description

MAR2MAS company is operated by some AC22 students in Ateneo, City

of Naga. The company business form is a collaboration of joint owners with the

assets, profit and losses, we belong to the food industry marketing. It offers a

food and drink product to its customers; the value proposition of the product is

the light and convenient single packaging that makes it hassle-free. Also, the

company’s condition is still in the process of expansion and contraction that

entails potential increase in customers and become large. Looking ahead, the

company would be susceptible to various innovation and to project the going-

concern principle in our company.

Mission

Providing a 2SOME1 combo at a fair price making sure customers enjoy a 2-in-1

snack with ease.

Vision

MAR2MAS aspires to produce and promote a two-way snack that will

bring happiness and satisfaction in one cup.

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 Company Goals

• Growing revenue

We seek for increase in our company's sales from one period to the

next.

• Profitability goals

We must be able to improve the income and expenses at the same

time in order to gain profit.

• Efficiency

We reflect a commitment to improve existing operations and to be

able to have great outputs with the least inputs.

• Expansion

We entail opening up new stores in different physical locations while

maintaining the current business location.

• Sustainability

We enterprise the minimal negative impact on our global or local

society.

• Customer Service

We provide assistance and advice to those people who buy our

products.

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 Company Objectives

•To increase sales volumes by 10% within 2 weeks

• To search and improve for new flavors of nacho chips and drinks every day

• To expand into a number of retail stores in different locations in Ateneo de

Naga by the end of the school year

• To have 95% ROI in 2-week selling duration

• To have a high-quality customer service for the 2-week selling duration

Company Values

 Respect

In our business, we respect not just the customers but also the

people within the group.

 Unity

The group should work as a team in order to succeed with their task.

 Honesty

What we advertise is what we serve. We don’t give or show any

extra advertising additives to show that what we have is good and/or the

best. We show what we truly give.

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 Originality & Accreditation

Ideas which are inspired by a certain trend or an existing product is

fully appreciated and given credit for the product which will be sold by us

was originally taken from them but with different varieties and

combinations which were done in order to create a new hit product.

 Patience

All of the group members must be patient with each other and be

patient with the step by step process.

 Responsibility

Everyone should be responsible enough in accomplishing their task.

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 CHAPTER II

PRODUCTS AND SERVICES

This chapter involves the information regarding MAR2MAS Company’s

products and services. Specifically, brand information, product labelling, and

product packaging are included.

Brand

Trade Name

The trade name of the company is MAR2MAS. This will also serve as the

legal name of the business.

Figure 1: Company Logo of MAR2MAS

The illustration above is the logo of the company. The two M’s represent

the initials of the two co-founders. As seen above, each “M” has a different

edge. The first M with flat edges represents Mar, the former owner of Not’yo

House. On the other hand, the second “M” with sharp edges represents Mas,

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the former owner of Juicy Me. The number “2” bonds the two M’s and

symbolizes the unity of the two owners.

Brand Name

2SOME1 is the brand name of the product. It basically represents the

uniqueness of the business and the products. The numbers “2” and “1” give the

customers an idea about the 2-in-1 cup that consists of food and drink making it

distinct with the usual cups used in retailing.

In addition, one of the marketing strategies is letting the customer

dedicate a letter, quote, and the like to a person who he/she thinks deserves to

receive one. 2SOME1 is similar to “to someone.”

Brand Mark

The brand mark is composed of three major parts that represent the

product and the company. Firstly, this logo is intentionally shaped as a cup with

nachos on top and incorporated with a straw in the middle implying the drink.

These generally show what we offer.

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Secondly, the roman numeral “II” represents the two successful companies that

collaborated to come up with this innovation. Thirdly, is the ring around the logo

which symbolizes the infinity and unity between the entity and the customers.

Figure 2: Brand Mark of MAR2MAS

Labelling

The labeling used in the packaging primarily composes of one element

and a sub-element. Basically, the cups will contain the brand mark in the

middle. In addition to that, the logo will also showcase the brand name,

2SOME1.

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Packaging

MAR2MAS used paper cups as packaging. Paper cups breakdown

quickly and is already biodegradable so it can help our environment. We also

use colourful paper straws to attract the customers and at the same time to help

the environment by not using the plastic ones. The drinks are positioned at the

bottom and topped with a mini cup that holds the food. The food and drink are

combined making them easier for the customers to bring them around.

Figure 3: Sample Packing and Labeling of 2SOME1

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 CHAPTER III

MARKETING PLAN

This chapter involves the information regarding MAR2MAS Company’s

products and services. Specifically, facts about the industry, demographic profile

of customers, competition, niche market, marketing strategy, and sales forecast.

I. Facts about the Industry

A. Total Size of the Market

Population Percentage Sample Size

ABM 368 21.43 20.36 or 20
AVFX 90 5.24 4.98 or 5
GAS 51 3.38 3.21 or 3
HUMSS 190 11.07 10.52 or 11
SJ 43 2.50 2.38 or 2
STEM 964 56.14 53.33 or 53
TAP 4 0.23 0.22
TOTAL 1717 100 95
Table 1. Summary of Sample Size

Table 1. MAR2MAS Corporation offers the 2SOME1, a two-in-one snack, to

the company’s selected market which is the Ateneo de Naga University Senior
High School main campus community situated at Bagumbayan Sur, Naga City.
The market consists of 1,717 senior high school students; 964 STEM students, 368
ABM students, 190 HUMSS students, 90 AVFX students, 58 GAS students, 43 SJ
students and 4 TAP students.

To understand the amount of demand to be offered, a survey was

conducted in a sample of the population or market. For it to be well represented,
each section of the market requires a certain number of participants based on t

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 STEM ABM HUMSS/SJ/TAP AVFX GAS
Prefers 2-in-1 Snack 49 20 10 5 3
Dose not Prefer 5 0 3 0 0
Preferred Toppings:
Cheese 36 16 8 1 2
Ketchup 4 1 1 1 0
Meat Sauce 9 2 3 3 1
Mayonnaise 5 1 1 0 0
Pricing:
P30 37 17 11 2 3
P40 7 1 0 2 0
P35 7 2 2 1 0
P45 3 0 0 0 0
Place:
Xavier Hall 18 13 5 3 0
Bonoan 10 2 2 0 0
Front of Lib. 16 1 2 1 0
New Building 10 4 4 1 3
Random Messgae:
Yes 38 17 8 3 2
No 16 3 5 2 1
Name on pruduct:
Yes 42 20 9 5 3
No 12 0 4 0 0
Deliver:
Yes 49 20 10 5 3
No 5 0 3 0 0
Table 2: Summary of the survey conducted

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 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Mayonnaise

Random Messgae:
Preferred Toppings:

Pricing:
P30
P40
P35
P45
Place:

Yes
Dose not Prefer

Ketchup
Meat Sauce

Deliver:
Prefers 2-in-1 Snack

Xavier Hall
Bonoan
Cheese

Front of Lib.

No

No

No
Name on pruduct:
Yes

Yes
New Building
STEM ABM HUMSS/SJ/TAP AVFX GAS

Figure 4. Summary of Survey Conducted

B. Market Share

The target market of the MAR2MAS Company is mainly the Senior High

School students of the Ateneo de Naga University. Considering other competitors

which offer similar products and do belong to the same industry, the company

does not expect to have a big percentage in terms of its market share. Moreover,

knowing that the selling of all competitors would be in the same period with

MAR2MAS company, the percentage will be affected by such. Hence, the

company pursues to capture 3 to 5% of the market share.

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 C. Historical Demand and Supply

Table 3. Demand and Supply of Food and Drinks

Competitors August 2019 September 2019 Demand

Demand Supply Demand Supply Gap

Potato Wedges 1350 1100 1600 1400 250

(Nicole Trisha’s

Cuisine)

Buko Juice (Ms. 1500 1300 1700 1600 200

Peachy)

Shake (Nicole 1200 1000 1400 1200 200

Trisha’s Cuisine)

Table 2 visualizes the estimated demand and supply of the similar products

from other entities. Also, the total sum of the demand gap is 650. This gap may

serve or can be seen by the company as its opportunity. Here, they may serve this

portion of the market. The Senior High School students of ADNU may be included

in the demand gap.

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 D. Projected Demand and Supply

Willingness to buy a 2-in-1 snack

7%

Yes
No

93%

Figure 5. Projected Demand and Supply

Figure 6 shows the survey results from 95 respondents that were asked

questions that may affect the projected demand and supply of MAR2MAS.

88 out of 95 respondents are willing to buy 2SOME1. That is approximately

92.6% of the total numbers of respondents. The remaining 7 respondents

responded “No.” This implies that they are not willing to buy the company’s

product. 7 is approximately 7.3& of the total number of respondents. Thus, there

is a high possibility that customers would buy the company’s product.

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 E. Trends in the Market

According to the Veblenian social-psychological model, consumers

purchase products and services on the basis of what the market offer the most

personal satisfaction. Where there is a product and a replacement for that

product, the sale of the replacement will be higher if its cost is smaller than the

cost of the initial product. Hence, some individual often choose to buy a product

at cheaper cost without knowing if they will get a good or bad quality the product

they purchase. Researchers believed that consumers buy their goods and

services based on what offers the most personal satisfaction. Economist Thorstein

Veblen proposed that consumers are social creatures that comply with the norms

of culture which they reside. He thought that the individual needs and wants of

consumers were formed and affected by personal satisfaction. In a research

undertake by DOH, it was discovered that Filipinos are becoming more health

aware in their choice of food, drink and snacks. According to the reports and

data gathered by DOH, 25.3 percent of Filipino have consumed processed foods

that are non-healthy snacks as of 2016. As a result, with this new market trend,

Mar2Mas Corporation is committed to adapting to these modifications and

offering affordable and nutritious snacks to the senior high students of Ateneo de

Naga University.

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 F. Growth Potential

The goals the business is trying to attain are improving customer satisfaction,

maximize profit, and increase efficiency. So that these goals may be

accomplished, MAR2MAS will construct different strategies and methods for the

growth and betterment of the company. First, the company should track the

goals’ progress to have an idea of how far the company has come. Find out what

makes the company going because this could help plan future goals. Also,

MAR2MAS will invest in quality branding. In all aspects of the branding consistency

must be projected so that the target customers will be satisfied. Starting with a

high capital is also a way to attain the company’s goals because this means we

can buy the resources needed without any shortage. The business can also use

the capital in improving the product for example, offering a variety of chips to

choose from. This can improve customer’s satisfaction which is one of the main

goals. As the business’ profit increases, the business’ chance of survival also

increases that is why it is significant to maximize profit. For the company to

maximize profit they should develop a better pricing strategy. Price increase can

result to profit increase. Adjusting the price to gain bigger profit is effective but

the company must research first because slight changes can have a huge effect

on the business. A way to increase efficiency is by using the power of the internet.

Through social media you can make connections with your customers and keep

a close relationship with them. They can also voice out their opinions and inform

the company if there is a problem in the functionality of their business.

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 G. Barriers to Entry and How to Overcome them

Every business, in the midst of its starting point, usually encounters

problematic situations that may hinder its development or growth. MAR2MAS is

not an exemption. Certain barriers may be influenced by internal or

environmental factors.

Firstly, MAR2MAS would encounter difficulty in acquiring source of capital.

It appears that there are many unsuccessful businesses in the market because of

inadequate financial resources, making them unable to ensure efficiency and

effectiveness during their operation. To overcome this barrier, the MAR2MAS must

go through the intricacies of capital structure. Hence, the management must be

able to estimate the capital needed for the start-up stage of the business to

potentially defray the expenses for the required resources. Furthermore, financial

statements must be properly made to synthesize the cash dividends and to

specifically determine which purpose it would be used for.

Secondly, industry clustering can affect the MAR2MAS during its start-up

phase. This might be a big problem for the business because a lot of competitors

clustered in one location make more choices for the customers. It will definitely

result to fiercer competition. The best solution for this is to do an in-depth location

analysis, in which the business should be more physically proximate to the target

market. Ideally, the business location should be in the Belardo building to make

the selling more accessible to the prospect customers.

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 However, in case that the other competitors will do the same thing, the

business would just have to satisfy the customer by providing a product that

implies an edge over certain adversaries. By doing so, the proprietors would be

able to elicit customer satisfaction, loyalty and retention while upholding their

company values and utilizing innovations at hand.

H. How Changes would Affect the Company

Occurrences in both the external and internal factors of the enterprise affect

the company condition. In addition, taking these aspects into consideration helps

the company assess the threat and opportunities of the business, thorough

analysis of these changes helps determine awareness in the company. The

MAR2MAS company might encounter several changes in their operational cycle,

it could be the economic environment, technological progression, customer

preferences. The economic changes fluctuate with the movement of the market

industry that counteract to rate of inflation, wages rates, interest rates of supply

and demand in the market. Hence, there is a variation to products price. Second

is technological progression, the MAR2MAS company work processes should be

in advance mode with the converge of new machineries. In order to fasten the

food production. Last change that would affect the company is customer

preference, customer's taste change over time. Either way, the product we are

going to offer may flop or be lucrative.

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 II. Demographic Profile of Customers

The target market of MAR2MAS company is the population of Senior High

School Students of the Ateneo de Naga University (ADNU) main campus. In order

to approach the market effectively, the company will use behavioral

segmentation. Through this way, people who have similar buying behavior can

be grouped together and targeted. By organizing the basis of the behavior

patterns of customers in terms of buying like benefits needed and usage

frequency, the market can be divided into smaller groups based on them. By

keeping in mind, the needs and wants of the market, the company can introduce

itself in a smooth manner.

III. Competition

Competition is the rivalry between companies selling similar products and

services with the goal of achieving revenue, profit, and market share growth.

Rivalry in which every seller tries to get what other sellers are seeking at the

same time sales, profit, and market share by offering the best practicable

combination of price, quality, and service. People are always looking for

products with more features and capabilities, products that cost less but can

do more, and products that just plain solve their needs or wants better than

any other product can.

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 Table 4. Comparison of Competing Companies based on Price and Quality of

Products

Company Price Quality Availability Selling

Price

MAR2MAS(2SOME1) 30 Nachos are perfectly Will use a stall Selling is

Pesos flavored. Drink is not too in Hilario done at

sweet. Belardo the stall

Building

Ms. Peachy Cuisine 20 The juice is too sweet. Uses a stall Selling is

(Buko Juice) Pesos However, it contains both in done at

good amount of the Bonoan the stall

Coconut meat Building and in

Hilario Belardo

Building

Nicole Trisha’s Cuisine 25 The wedges taste good. Uses stall in Selling is

(Potato Wedges) Pesos But, too expensive for Hilario Belardio done at

the amount of serving. Building the stall

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 IV. Niche Market

Niche market is the target point of a business. It aims to survive among the

numerous competitions with the other businesses. The niche market of our business

are the customers that would prefer a snack that combines a food and drink. The

product of our business will surely result to the satisfaction of costumers due to the

less hassle that they would experience if ever they would be one of our

consumers/costumers

V. Pricing

The marketing mix that can be performed using the 4p's consists of the cost

and price that is an important instrument for analyzing what the product can offer

and how to schedule a successful product offering. 2SOME1 uses a cost-pricing

approach that calculates expenses and adds a mark-up. The researchers also

used value-based pricing with the pricing as they established a price based on

how much the target market believes what the product is worth. All the direct

material cost, direct labor cost and overhead cost for the 2SOME1 will be added

together with the set markup percentage in order to determine the selling price

per piece of 2SOME1 that will be introduced to the consumer.

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 Table 5. Ingredients and Prices

Product/Ingredients Quantity Price

Foods Paper Cups(2oz) 50 pieces Php45

Tostillas 50 packs Php565

Total Php610

Product/Ingredients Quantity Price

Drink Paper cups 50 pieces Php45

Nestea 2 packs Php200

Ice Cubes 4 packs Php100

Straw 50 pieces Php100

Sugar 2 kilo Php200

Water 1 gallon Php35

Total Php680

A. Place of Distribution

One of the most important parts of putting up a business is having a

strategic location. A business that is highly influenced by its location greatly

affects the cost and revenues of the business. A location wherein there is a lot of

passers-by is ideal for selling products, in our case, (products). The MAR2MAS will

be located inside the Ateneo De Naga University campus. Other than having a

food stall, the company will also offer direct selling to the customers for it would

help in reaching the target market. Direct selling also gives the business owners

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points of improvement in the product or the comments that customers had given.

In this way it builds a direct relationship of the customer to the business. Having a

great location is crucial and must be well thought of because it can make or

break a business.

B. Promotion Tools

Promotion is significant in a business because it encourages customers to buy

from the business. This can also serve as a communication between the business

and customers because this can persuade to buy the product. MAR2MAS use the

modern promotional approach by promoting their product through social media

websites such as Twitter, Facebook, and the like.

Figure 6. Twitter Account of Figure 7. Promotion Poster of

MAR2MAS 1 MAR2MAS 1

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 VI. Sales Forecast

In the onset of the enterprise, the capital is expected to limit the number of

manufactured products. In order to curtail flaws and secure more profit for the

association, the disproportionate manufacturing of merchandises must be

established. MAR2MAS Company would advertise merchandises just suitable

for public demand alone, because of this. The association will appraise the

number of manufactured products for the first month to conclude if the

association should adjust the number of manufactured products per day, to

be competent to do this. In order to deliver excellent quality product for the

consumers Mar2Mas Corporation is open for constructive judgment and

proposals from the public.

Table 6. Projected Sales for the First Two Months and Years of Operation

Variables October 2019 November 2020 2021

2019
2SOME1 400 520 900 1,556
Quantity
Price Php 30 Php 30 Php 35 Php t40
Sales and Php 12,000 Php 15,600 Php 31,500 Php 62,240
Peso

Table 6 shows the projected sales of the product for the first two months of
the enterprise. Furthermore, the next two years of the enterprise is shown as
projection sales. For the onset months of the association in the year of 2019, 30%
was increased per month to the sum of 2SOME1. In the next years the 30%
increase continued for the quantity. Therefore, the sum of products produced is
the basis of the projected sales.

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