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Pamantasan ng Lungsod ng Pasig Alcalde Jose St.

, Pasig City


Submitted to: Professor Seigfred Sapang Product Management MM-106

Submitted by: Aban, Robert Louis Ecat, Jessely Espiritu, Rochele Macuja, Angelita Manaog, Ericka Jan Permison, Nora Sibayan, Cherielyn Villa, Nikka

August 01, 2012

VISION: To dominate charcoal industry

MISSION: To create brand that would retain in the mind of the consumer


Charcoal, a form of amorphous carbon, is produced when wood, peat, bones, cellulose, or other carbonaceous substances are heated with little or no air present. Most charcoal is used for recreational, restaurant, and home cooking in the form of charcoal briquettes. A small amount of charcoal is used in certain metallurgical processes and as a filter to remove organic compounds such as chlorine, gasoline, pesticides, and other toxic chemicals from water and air. Before the advent of briquettes, charcoal was used in lump form, often screened to remove pieces smaller than one-half inch. This practice left behind a large volume of unusable fines. It was the accumulation of charcoal fines, the desire to produce a uniformly sized product with uniform burning rates, and the need to supply a cleaner product for home and recreational markets that led to the production of charcoal briquettes. Moreover, government discourages cutting of trees to make charcoal because of environmental issues. The proponents decided that carbonized charcoal briquette made from agricultural wastes (e.g. corn cobs, dried leaves-dried water lily, coconut husks, rotten and the peel of vegetables and fruits) would be a great alternative. In Pasig City, where more than 600,000 residents lives (according to 2007 census of National Statistics Office) that produces 300,000 kilos of garbage a day is a great source of raw materials. According to studies of TAO Shelter-Magazine for Sustainable Human Settlement, each person in Metro Manila generates an average of half of a kilogram of waste every day. Carbonized charcoal briquette when burned, emit a steady heat with low clean flame and therefore environment friendly fuel alternative for cooking and other industrial uses. It is also easy to ignite and burns completely in at least 50 minutes. The technology of making charcoal briquettes was developed by the DENR through its research arm, the Ecosystems Research and Development Bureau (ERDB).


With the advent of technology, majority of household user of charcoal comes from the province Industry users of charcoal includes restaurants and fast food stores who offer grilled products like Mang Inasal, Chick-Boy, Jollibbe, Chowking and other high end and nonbrand diners.

Charcoal in the Philippines, unlike in the United States do not carry manufacturers brand, this is because the industry is not well developed and mostly confined in the backyard of small farmers in the provinces

With the growing awareness of healthy lifestyle, people now begin to patronize grilled based food And with convenient lifestyle, comes fast food who include grilled meats (chicken, pork, fish) into their menu


SLD Company is a manufacturing company dedicated to converting agricultural waste into commercially viable products. We intend to: To achieve sales of Php 3,744,000 by penetrating Jollibee Food Corporation(who owns 70% of Mang Inasal, Jollibee, and Chowking) and different supermarkets and grocery stores over the next 12 months To increase profit by 95% offering small packed charcoal to different market stalls, community stores and small grocery stores over the next 12 months To create the pioneer brand name of charcoal briquette in the Philippines by providing quality products over the coming years To expand our market globally by supplying the product to the well-known brand over the next 1-2 years To develop and innovate charcoal related products by research and development and alliances with charcoal related companies (e.g. grill maker, clinics and spas, water purifying company) over the next 2-3 years


PROBLEMS Competition with commercially improved fuel and modern technology Inadequate source of agricultural waste supply Lack brand equity Stiff competition with global brands

Steps to minimize risk 1. Charcoal cannot compete head on with the use of LPG- liquefy petroleum gas and electricity but it still has functions in the household and business like grilling and barbecuing. And some households prefer to use charcoal as their fuel because of low price and small retail packaging. 2. Direct supply to restaurants, fast foods and hotels 3. Partnership with government agencies who manage waste disposal. Agricultural wastes that are pre segregated from major markets can be delivered in our company site. 4. Creating brand name and printing it in our packaging to introduce brand awareness. Collaborating with related product such as matches and lighter companies to offer it in conjunction with charcoal. For instance, a sack of charcoal briquette with one free lighter or match. 5. Intensive research in global markets. Supplying to different restaurants, hotels, burger stands and non-brand conscious part of the market.

OPPORTUNITY 1. High cost of petroleum products 2. Free advertising with government partnership 3. New environmental consciousness that highlights conservation and emphasis on reusing of waste products. 4. Globalization

SALES FORECASTS/GOALS The future trend in charcoal used domestically is difficult to forecast with precision due to inadequate statistics especially in the Philippines and other developing countries. But the steady growth of population and the rising price of oil and gas based energy causes the demand for charcoal in the Philippines and other developing countries to expand constantly. As per the statistics of Department of Energy the percentage share of household and businesses using charcoal as fuel is 1.5%, and that is 1,350,000 of the entire population of 90,000,000 (projected population of the Philippines as of 2012 as per National Statistics Office). And households used at least 3kgs of charcoal per day. The demand for the entire country is 4,050,000 kgs per day. SLD Company will be able to supply only 624,000kgs per month which will increase by 5% every year. This is base on the capability of the company to supply the demand of the market. Table 1 Sales Forecast
UNIT SALES (KGS) 2012 7,488,000 10.00 2013 7,862,400 10.00 2014 8,255,520 10.00 2015 8,668,296 10.00 2016 9,101,711 10.00


74,880,000.00 78,624,000.00 82,555,200.00 86,682,960.00 91,017,108.00

Table 2 Cost of Good Per Piece

Plastic Sticker Utilities Tapioca Flour Chemical Labor Php Per piece 0.15 0.2 0.02 0.8 5 0.14 6.31

MARKETING OBJECTIVES 1. To increase profit by 95% by partnering with different fast food chain company 2. To increase sales by 5% every year by offering charcoal in small packaging 3. To create brand recognition for charcoal products

MARKETING PROGRAM 1. POSITIONING STATEMENT General Marketing Objective(s): To build good image, increase product awareness and inform consumers about the effectiveness and benefits of the SLD carbonized charcoal briquettes.

Rational for objective(s): For the product to be trusted and to gain loyal consumers, the product must have to build good reputation and fully inform and aware the consumers about its existence.

Positioning Statement: To household and business, SLD is the brand of carbonized charcoal briquettes that is cost-effective due to it is cheaper, comes in small packs suited for daily earners budget and burns longer and more steadily.

2. TARGET MARKET(S) Primary market: Household dominates the whole population, price conscious population segment due to priorities and expenditures prefer buying in retain than in bulk. Secondary market: Food and Beverage Industry Includes restaurant which uses charcoal in grilled products Includes liquor manufacturers in filtration and purification Profit oriented Price sensitive

Metal Industry Price sensitive Profit oriented Uses charcoal for electroplating and metal purification processes Environmental sector Service oriented Environmental sensitive Aims to promote green environment Uses charcoal in spill cleanings, air and water purification, ground water treatment and large scale water filtration system.

3. PRODUCT STRATEGY Carbonized charcoal briquette is a fuel and was used blast furnaces until the advent of coke. Today most charcoal is used for recreational, restaurant, and home cooking in the form of charcoal briquettes. A small amount of charcoal is used in certain metallurgical processes and as a filter to remove organic compounds such as chlorine, gasoline, pesticides, and other toxic chemicals from water and air. Product Objectives o Carbonized charcoal can be developing to use as beauty ingredients in spas and salon. EX. Ponds facial wash with carbon o Water filter

4. PRICING STRATEGY o Brief Description The company will use market penetration as a pricing strategy and retail pricing strategy to satisfy the customer in buying carbonized charcoal in lower price and at the same time to maximize the companys profit. o Strategy Market Penetration Pricing Strategy The price is set at a lower level to serve as an instrument for penetration mass market.

Retail Pricing Strategy The company will offer retailing strategy to encourage customer to buy carbonized charcoal. And also has a lower price that the customer can avail to products.



BRIEF DESCRIPTION The company use to advertise carbonized charcoal briquettes on the other on the National Public to attract the customers attention through the use of Media and Print Advertising.

OBJECTIVE Portray the companys goal and product for an attractive factuality.

STRATEGY Radio Advertisement Since charcoal is an industrial product the company used to advertise the product the company used to advertise the product in a radio so that there will be a large number of possible customer that will patronized the product. Newspaper The company tried to use the newspaper because the companys target market preferred to use the newspaper as a result there would be a greater possibility that it will increase the customers awareness.

Online Advertising Since the company undergoes global expansion, it is important that the product should be advertised globally through the use of the internet.

RATIONALE To reach greater number of customer

To attract customer awareness To enter the global market


Broadcast Advertising Print Advertising Online Advertising

3 months 3 months 3 months

B. COOPERATIVE ADVERTISING offers small businesses the ability to reach a wider audience through partnerships with other businesses. By combining ad funds and ad creative, several small companies can purchase an advertising block that would normally be out of their individual price range. Advertising co-ops are typical among similar companies. For example, a hair salon might go into an ad co-op with a spa. Agreement between a manufacturer and a member of distribution chain (distributor, wholesaler, or retailer) under which the

manufacturer shares a certain percentage of the member's advertising and promotion costs, or contributes a fixed sum. Agreement between two or more marketers with complementary products (such as cosmetics and toiletries) or different seasonal sales cycles (such as raincoats and winter coats) to promote or sell each other's products with their own.

C. TRADE ADVERTISING - In order to attract clients SLD Company will begin to contact organizations. Our sales representatives will be travelling at 4 conventions across the country within the 1st year of operations where we will be have booths to advertise our product.

The following are the trade shows that our company will be joining. Green Philippines Convention, Manila to be held on August 16-18, 2012 at SM Mall of Asia SMX

Protobex Asia to be held on March 20-22, 2013 at Philippine International Convention Center, Manila


OBJECTIVE To initiate strong awareness about the launch of carbonized charcoal briquettes.

STRATEGY Carbonized charcoal / SLD Company advertise in yellow pages, newspaper, radio and govt publicity throughout the states. Incentives as an extra incentive for consumer and potential customer to remember carbonized charcoal. Word of Mouth Brochures


MEDIA Radio Commertial * 1st wave * 2nd wave E-Commerce * 1st wave * 2nd wave * 3rd wave Newspapers * 1st wave * 2nd wave Sept. 2012 Oct. Nov. Dec. N.Y. 2013

8. DISTRIBUTION STRATEGY Objective: To establish direct contact with the target market

Strategy: Direct selling/Producer-ConsumerThis indicate that the company will built a store that directly sell to the consumer Producer to retailer This indicates that the company will sell to different retailer store then retailer will sell the product to the consumer. 9. PRODUCT SUPPORT Objective: To gain customers loyalty To establish good company reputation and image Strategy: Giving free matches/lighters for every kilos of charcoal Free delivery for large amount of charcoal purchases by retailers and businesses Discount for advance payment

TRAINING REQUIREMENTS For Employee: 1. The company will conduct a seminar to employees for them to have an idea and knowledge regarding the product, included the rules and regulation of the company. Train them efficiently on how to product charcoal fastest but still in good quality 2. Joining seminars that will help the company to be more skillful and productive, also to build strategic alliances. 3. Social responsibility to have a strong relationship to customer

MARKETING RESEARCH SLD Company will conduct market research every year: To identify the market range To know the consumer buying behavior changes To enhance company competitive advantage To improve quality of the products To improve the distribution channel

Sales Revenue Less: Cost of good sold Gross margin Marketing Expenses Advertising Promotions Trade shows Training R&D Marketing Expense Other Expenses Permit & Registration Sales forcecast Rent Expense Depreciation ExpTrucking Depreciation ExpMachine Administrator Miscellaneous Total Expenses Net Income 2012 74,880,000.00 47,249,280.00 27,630,720.00 150,000.00 125,000.00 125,000.00 115,000.00 600,000.00 1,115,000.00 50,000.00 4,680,000.00 180,000.00 40,000.00 32,000.00 6,240,000.00 50,000.00 11,272,000.00 15,243,720.00 50,000.00 4,680,000.00 180,000.00 40,000.00 32,000.00 6,240,000.00 50,000.00 11,272,000.00 16,569,506.00 157,500.00 131,250.00 131,250.00 120,750.00 630,000.00 1,170,750.00 2013 78,624,000.00 49,611,744.00 29,012,256.00

JOB TITLE ACCEPTING ORDER ACCOUNTANT PRODUCTION ADS AND PROMOTION OFFICE STAFF Jessely Ecat and Nora Permison Cherielyn Sibayan and Rochelle Espiritu Robert Louis Aban Ericka Jan Manaog and Nikka Villa Angelita Macuja SCHEDULE Regular basis; 8 hours a day Regular basis; 8 hours a day Regular basis; 8 hours a day Regular basis; 8 hours a day Regular basis; 8 hours a day