Princess Cherry Pie Santos

 JMJ MARIST BROTHERS NOTRE DAME OF MARBEL UNIVERSITY GRADUATE SCHOOL Master in Business Administration (MBA) Program A Marketing Plan On Your Hub – Koronadal City Branch As Partial Fulfillment of the Requirements in BA256 (Marketing Management) Jennifer Seridon Era, CPA, MBA Professor Princess Cherry Pie E. Santos MBA – 1 TABLE OF CONTENTS I. INTRODUCTION-------------------------------------------------4 A. Introduction to Business-----------------------------4 B. Target Market-------------------------------------------4 C. Location-------------------------------------------------5 II. MISSION AND VISION----------------------------------------7 III. PRODUCTS------------------------------------------------------8 A. Product and Services---------------------------------8 B. Store’s Concept----------------------------------------9 C. Box Rental Prices-------------------------------------10 IV. TARGET MARKET--------------------------------------------11 V. COMPETITION-------------------------------------------------13 A. Box Café-------------------------------------------------13 B. Walk In Closet------------------------------------------13 VI. MARETING GOALS------------------------------------------14 VII. MARKETING STRATEGIES--------------------------------17 A. Loyalty Card--------------------------------------------17 B. Online Post----------------------------------------------18 C. Training Program--------------------------------------18 D. Direct and Personal Selling-------------------------19 VIII. PRICING, POSITIONING, AND BRANDING-----------20 A. Pricing----------------------------------------------------20 B. Positioning-----------------------------------------------20 C. Branding-------------------------------------------------21 IV. MARKETING PLAN BUDGET----------------------------------23 A. Budget for Loyalty Card------------------------------23 B. Budget for Social Media Boosting-----------------27 C. Budget for Direct and Personal Marketing------27 List of Tables TABLEPAGE Table 1 Box Rental Pricing-----------------------------------------------10 Table 2 Sales Breakdown------------------------------------------------14 Table 3 Projected 5- Year Sales Increase---------------------------15 Table 4 Customer Increase----------------------------------------------15 Table 5 Foot Traffic Increase--------------------------------------------16 Table 6 SWOT Analysis---------------------------------------------------21 Table 7 Budget for Loyalty Card----------------------------------------23 Table 8 Budget for Social Media Boosting---------------------------27 Table 9 Budget for Direct and Personal Marketing-----------------27 List of Figures FIGUREPAGE Figure 1 Your Hub’s Store---------------------------------------------------4 Figure 2 Location Map--------------------------------------------------------5 Figure 3 Store’s Concept-----------------------------------------------------9 Figure 4 Store’s Concept-----------------------------------------------------9 Figure 5 Your Hub’s Logo----------------------------------------------------21 Figure 6 Your Hub’s FB Page-----------------------------------------------23 Figure 7 Sample Budget for FB Page Boosting------------------------25 Figure 8 Sample Audience Reached through FB Page Boosting-25 Figure 9 Sample Budget and Duration for FB Page Boosting------26 Figure 10 Benjamin Franklin’s Quotation--------------------------------28 INTRODUCTION Figure 1: Your Hub Store A. Your Hub, is a concept store offering a variety of beauty products, trendy clothes, bags, organic medicines, pasalubong goods and souvenirs. It is owned and operated by Ms. Cherry Mae Urbano. It was established in April 2018. The store is open from 9:00 AM to 6:00 PM, Mondays to Saturdays. It is Located at Pantua Village, Brgy. Zone 3, Koronadal City (beside Salon de Marbel). B. Given that the location was near schools and boarding houses, that gives the shop an advantage to reach the target market which are students, young professionals, middle-aged and tourists from different city, regions or even countries. Location Map of Your Hub Figure 2: Location Map Your Hub gives opportunity to every small seller to gain profit through displaying their products in box type rack rental and in return of monthly rent but in reasonable and low cost than the others. This gives an opportunity to other sellers that have no physical store. The shop was used to pick-up and drop off of items sold in social media. Also, the products are very affordable. Product prices range from 10 pesos to 2,500 pesos. However, the shop also faced a decrease in sales from March to end of April where consumers allotted more budgets on another important spending, like school requirements, graduations and vacation plans. These affect the sales because clients withdraw from buying products from Your Hub to give priority to their needs. Mission and Vision Mission Statement: YOUR HUB aims to provide an opportunity to those aspiring entrepreneurs who want to start a business without shelling out a huge amount of money. To offer High-Quality products and services the most affordable price for our valued customers. Vision Statement: To be the leading box Rental Company in Mindanao by 2030 thru establishing box rental in every city and municipality, supplying the most effective and affordable products in the market. Product A. Your Hub offers Fashion, Beauty, Health and Wellness products. Products were augmented every time to suit the market’s tastes and preferences and to make sure the products were not outdated in trends and of season. This includes Beauty product, trendy clothes, shoes, bags, organic medicines that help burned fats and increases the immune system. Your Hub is the place where beauty, wellness and fashion meet. This explains that we should take care of ourselves inside and out or being beautiful inside and out because the company firmly believes that beauty outside starts inside. Your hub sticks on the concept of being elegant and healthy in an affordable way. Clients were well accommodated making sure to help them throughout their journey in Your Hub. They’re also given tips and guidelines as on how to use and prepare the products. The products aim to help customers to boost their confidence through being beautiful and fit on their unique way. The price of the product is highly competitive wherein, the product is way cheaper than those beauty, fashion and health products from other shops. Product ranges from 10-2,500 pesos and if the customer buys bulk orders, sellers could give an extra discount. B. The store’s concept: Figure 3 & 4: Store’s Concept C. The rent per box was identified whether Upper box, Middle box, Lower Box, Eye level box and Hanger rack. Table 1: Your Hub Box Rental Prices Rack Quantity Price/Serving Total Sales Monthly Yearly Sales Upper box-,000 12,000 144,000 Middle box-,000 15,000 180,000 Lower box 15 500 7,500 7,500 90,000 Eye Level Box 15 1500 22,500 22,500 270,000 Hanger Rack 3 1200 3,600 3,600 43,200 TOTAL 60,600 60,600 727,200 Target Market The target market of this business are students/young adults, young professionals, middle aged, beauty and wellness enthusiasts. They’re people living within City of Koronadal, nearby municipalities and cities or people visiting the city. The target market has income or allowances level of at least 5,000 and up per month. The occupation was not clearly stated for the target market that has jobs and for business persons. The age range of the costumers is 15-60 years old, mostly female. Though men also visit the shop, products offered now are for female only. The reason for buying are: Price-50%, Brand/ Product- 23%, Proximity to place- 20%, Attractive merchandising/Advertisement-7%. This survey is based on 200 respondents only. The percentage of the target market of Your Hub are 50% students/ young adults, 20% young professionals, 20% Middle Aged, 10% tourists from different municipalities & nearby cities around South Cotabato. The business has targeted for the upper part of the lower class, middle class, upper-middle class, and lower part of the upper class of the society. Other target market was found in social media specifically through Facebook since Your Hub has no active Instagram, Twitter and Pinterest accounts yet. They were reached through posts, shared posts and tagged by a friend of friends. This is a shop build for resellers and online sellers that has no physical stores of their own. This will give them an opportunity without spending thousands of moneys on building their own. Competition Your Hub is not the only one offering similar services when it comes to box type rack rental. The nearest competitors were BOX CAFÉ and WALK IN CLOSET who offers the same products and services. These are also competing shops who were focused into offering beauty, health and wellness products that are located near Your Hub. But in terms of the pricing with other competitors, products offered by YOUR HUB was way cheaper because the sellers have direct contact with suppliers. They have a lower price based on what the owners have surveyed with the competitors since they are offering product starting from 10-2,500 pesos. The store’s major competitor is Box Café. It is located beside Notre Dame’s Pantua Gate. Nearer to boarding houses, students, offices and small businesses compare to Your hub. Box Café, compare to Walk In and Your Hub also offers food, entertainment and free use of board games. However, the competitive advantage of Your Hub is that compare to its competitors, Your Hub is offering products that are not available on others like branded clothes and branded bags, souvenirs, shoes. Your hub is also spacious and more comfortable compared to our competitors. A. BOX CAFÉ offers food services and games entertainment which is very creative in showcasing its products. B. WALK IN CLOSET offers the same variety of products but compare to Your Hub it has a limited display. Marketing Goals The shop aims to grow as times goes by in connection with its vision that by 2030, Your Hub will be the leading box rental company in Mindanao thru establishing box rental in every city and municipality, supplying the most effective and affordable products in the market. It aims to increase market share resulting to 30% increase in sales through opening another line of products- men and children’s apparel, adding boxes and hanger rack available for rent and opening another branch in Alunan Ave. or GenSan Drive. Current Income of Your Hub: The rent per box was identified whether Upper box, Middle box, Lower Box, Eye level box and Hanger rack. Table 2: Sales Breakdown Projected Sales at 30% increase yearly if this marketing plan will be implemented strictly and consistently is shown below: Table 3: Projected 5- Year Sales Increase YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 RACK U BOX 115,000 149,500 194,350 252,655 328,451 M BOX 180,000 234,000 304,200 395,460 514,098 L BOX 90,000 117,000 152,100 197,730 257,049 EL BOX 270,000 351,000 456,300 593,190 771,147 HANGER RACK 28,800 37,440 48,672 63,273 82,255 TOTAL 683,800 888,940 1,155,622 1,502,308 1,953,000 PROJECTED CUSTOMER INCREASE The projected customer increased is 10% per based on the shop’s 2- year operation. Table 4: Customer Increase - MONTH January- February- March- April- May- June-,064.8 July-,089 1,197.9 August 1,000 1,100 1,210 1,331 September 1,100 1,210 1,331 1,404.1 October 1,200 1,320 1,452 1,597.2 November 1,400 1,540 1,694 1,863.4 December 1,600 1,760 1,936 2,129.6 10,330 11,363 12,499 13,689.23 Table 5: Foot Traffic Marketing Strategies Your Hub has a big potential compare to its competitors. Although it does not have strong marketing strategies yet but it is always open to expand to the bigger market through wide range advertisement, exposure, and interactive marketing strategy. Below are the suggested marketing strategies that Your Hub can use in order to increase its sales and market share. A. Loyalty Card – Your hub will be offering a stamp card and collect at least 5 stamps to receive a free gift from the seller. Coupon last for a limited time only. Mechanics: *Available only from March-May yearly (1 month before, during and after the month-long anniversary celebration *First to fill the 5-loyalty stamp will be awarded of the free product worth 500 Weekly Step 1: Buy any P200.00 worth of products per transaction per day and receive a loyalty card for free Step 2: Present your loyalty card when paying to the cashier in order to gain another stamp until the loyalty card has been filled up. Step 3: Present the filled-up loyalty card to the cashier to get your free products from us worth P500.00 B. Online post – Product and services were posted online through Social Media Platforms like Facebook. Your Hub will also open an active account on Instagram, Twitter and Pinterest to offer products and services in the bigger market. Prices were not posted to create curiosity with buyers for them to inquire through personal message and seller can build a relationship with the client allowing them an opportunity to properly introduce and market the product giving them proper information and usage. The product posted were complete in details to create awareness of the market. C. Training program- Conducting a Monthly meeting with other sellers to plan out a strategy on how to increase sales and foot traffic. For Instance, assign someone to organize events and promotional activities that fit on the monthly theme of the shop. In this way, the sellers who’s renting in this shop will be a part of the growth of the business and achieve the so called “Win-Win” Situation. The moment this project will be a success everybody can benefit towards the outcome. Meeting will be held every 2nd week of the month to plan out marketing strategies, promos and theme for the following month. Meeting will take place at the store at a fixed time of 3:00 PM to 5:00 PM monthly. Meeting Flow: The monthly meeting will start with a prayer and will be followed by welcome statement from the owner. After the welcome statement from Ms. Cherry, sellers are encouraged to get to know each other to build relationship through chatting and sharing their selling experiences. The moment sellers inside the Hub are all settled, the agenda of the meeting will be discussed. Agenda are composed of sales update and planning. After the meeting was adjourned, snacks and drinks will be served. D. Direct and Personal Selling Sample Materials – Customer may avail the free make up, make up tutorial and test the product the shop is offering before even buying. Pricing, Positioning and Branding A. Pricing The price offered in the shop is the same price that the sellers are offering in online posts. They have a mark-up of 50% of the cost, for the reason of that they must save at least 25% of the income for the business to have a vast collection of funds to be used in emergency cases and for re-investment also. Compared to other company that offers similar products and services, Your Hub’s pricing is way cheaper and affordable. In terms of credit policies, customers pay in cash upon buying the product they order. B. POSITIONING As the box type rental business starting to condensed the market with in the city, Your hub is eager to position its competitive advantage over its competitors. Table 6: SWOT ANALYSIS Strength Meta space where in target market can transact through Social Medias and in the actual store Advantageous location Weaknesses Lack of trainings & Seminars provided for sellers Inconsistent implementation of Promotional Activities & Techniques Opportunities Maximization of space Open a new market for children and men’s apparel Threats Aggressive Competition between Box Café C. Branding Figure 5: Your Hub’s Logo Your Hub is a place where beauty, health and fashion meets. The tagline shows that the shop could offer diverse product, a one stop shop where one could shop make up, dresses and more. The shop wants to give a chance to their customers to become more confident and healthier in a natural way. The Font and color of the shop which is green represents comfort and refreshment to clients. This will add a positive response to the shop’s target markets. MARKETING PLAN BUDGET A. Loyalty Card Table 7: Budget for Loyalty Card Materials Amount # of Pieces Weekly Expenses Monthly Expenses Photo Paper- Printing 200 200 800 Reward 500(Cost of Product is only-,000(6,000 total rewards for the 3- month promo Communication Exp. 750 750 TOTAL 3,750 Social Media with Boosting Figure 6: Your Hub’s FB page According to PSA.GOV.PH, As of August 1, 2015, the population of Koronadal City alone is 174,942. The total population of Koronadal City accounted for about 19.11 percent of the South Cotabato province population in 2015. The 2015 population is higher by 16,669 compared with the population of 158,273 in 2010, and higher by 41,156 compared with the population of 133,786 in 2000. With this data, we can say that only 1% of the population of Koronadal City was reached by Your Hub’s FB Page and there is a huge opportunity loss there. Therefore, we come up with a plan to make accounts of Your Hub on social sites where they can offer products through posting. Unfortunately, Ms. Cherry Mae, the owner and manager of Your Hub doesn’t have the log in details of their FB Page, her friend is the one managing and posting on their page. To give an idea as to how and how much to boost a post in social sites like Facebook, we tried using the page of our groupmate’s family business, the SEER’S OIL, a gasoline station located at Lebak, Sultan Kudarat. They may not be offering the same product and not found in the same area but to give you a visual presentation of boosting, please see below photos: Figures 7 & 8: Sample Duration and Audience Reached for Boosting Figure 9: Sample Budget and Duration for Boosting Table 8: Budget for FB Page Boosting Materials Amount # of People Reached Weekly Expenses Communication Expense 750 750 Boosting Expense-pax 7633.95 TOTAL 1,004.65 1,513.95 B. We recommend a weekly boosting, at least one post weekly and will run at least 3 days every week. The budget will be provided by Ms. Cherry Mae since she is the one running the box type rental and this is also her help to boost her seller’s sales. C. Direct and Personal Marketing Table 9: Budget for Direct & Personal Marketing Particular Amount Yearly Expenses Product per seller (10 Existing sellers 1,000 worth of products for sampling (Cost of products is only 500) 10,000 TOTAL 1,000 10,000 Our group strongly believes in this quotation from Mr. Benjamin Franklin because in every business, consistent and strictly implemented plan will lead to victories and successes of one’s business. Figure 10: Benjamin Franklin’s Quotation THANK YOU AND GOD BLESS.