How To Make A Marketing Plan

University of the Philippines
Visayas Iloilo City Campus

College of Management
I.
CURRENT SITUATION
A. INTERNAL ANALYSIS: THE COMPANY
COMPANY PROFILE
Ruchels bakeshop is a family business owned by the Villanueva family located at Bolilao
Mandurriao, Iloilo City. It has been operating since 2006 until the present. The person who is in
charge with handling the people and operations of the bakeshop is the owner herself, Mrs.
Ruchel.
Before this bakeshop was built, there was only one bakery at the Barangay so there was
only one competitor. This other bakery was located at the other end of the barangay while
Ruchels Bakeshop was placed at the middle area of the barangay. The products offered by this
bakeshop are the traditional Filipino breads such as pandesal, hopia, buns, and the like. It also
caters personalized pastries such as cakes and cupcakes.
After a few years the owner decided to integrate a sari sari store and a carenderia to
increase profit and cater to the other needs of their customers. As of now, the number of products
made and the customers continue to grow.
CURRENT POSITION OF THE COMPANY/BRAND IN THE MARKET
Ruchels Bakeshop currently sales an estimated amount of 10,000 pieces of bread daily
out of the 15,000 pieces of bread produced. The demand for bread is constant throughout the
year and does not show any trend since bread is a daily necessity of a common Filipino citizen.
But the demand for personalized pastries such as cakes and cupcakes increase during Christmas
season since people tend to order more for the celebration of Noche Buena and New Year.

COMPANY/BRAND STRENGTH AND WEAKNESSES ANALYSIS

The advantage of this bakeshop is that is does not offer only bread but also cakes and
other personalized pastries. Also, there is a sari sari store and carenderia within it and this helps
the bake shop cater other needs of the consumer.
A weakness of the bakeshop is that there is no division of labor when it comes to
management because the owner is the only one who handles most of the operations in their
business and this may cause confusion and errors.
BRAND CONSUMER PROFILE
The identified market segments of the bakeshop is through geographic, demographic,
demand size, growth potential, and the target market description. Geographically, the bakeshop
considers the neighborhood which is barangay Bolilao and the owners friends and the other
connections of their family. Demographically, they consider those who are stay at home people,
the SM City Iloilo workers since Bolilao is filled with apartments where most of these workers stay,
and lastly the students around. The demand size of this bakeshop is only small scale based on the
volume and sales because they do not have a big target market and so far, they do not have
plans to expand. Their possible growth potential is through word of mouth like referrals for
example. Lastly, their target market description are those people who are working, low to middle
class people, aged 15-45, and the people within the neighborhood.
The bakeshop addresses the physiological need of the consumers since it offers the basic
need of people which is food. In this case, consumers buy bread in a daily basis but mostly during
early mornings for their breakfast and late afternoons for their snacks.

PRESENT MARKETING STRATEGY

Its target market of Ruchels bakeshop are the local people around the barangay roughly
aged 15 -45 (low to middle class, within the neighborhood, working people)
The point of parities of this bakeshop and other competitors is selling a common product which is
bread while the point of differentiation of this bakeshop from its competitors is that it sells cakes
and other special pastries. Also, it has a sari-sari store and carenderia with it.
In order to be a competitive organization, Ruchels bakeshop considers the affordability of
their products and of course the quality of their product. They make sure that the orders of the
people are given on time and that there are no delays in the operation as much as possible. Also,
they accept deliveries of other sari-sari stores who retail the bread of Ruchels Bakeshop.
Before the owner decided to put up this business, she considered the factors that may improve or
affect this bakeshop. They took into consideration the product they were going to produce, if the
people in the barangay need it or not. In this situation, there was only one bakery before Ruchels
bakeshop was put up so there is only one competitor. The place where it was put up was also
thought of. Since this other competitor was located at the other end of the barangay, the owner
decided to put up her bakery at the middle area of the barangay so that it may become
accessible to almost everyone around the barangay.

B. EXTERNAL ANALYSIS
1. MACRO ENVIRONMENT ANALYSIS
a. POLITICO-LEGAL
1) Republic Act No. 7581 (THE PRICE ACT)
The Republic Act No. 7581 which states an act providing protection to consumers
by stabilizing the prizes of basic necessities and prime commodities and by prescribing
measures against undue price increases during emergency situations like occasions.
This is a threat since, if the prices of the products exceed the suggested retail
price, consumers tend to consider buying in competitors which will affect the sales the
business.
b. ECONOMIC
1) Inflation (Price Hike)
This is a threat because when prices of primary raw materials used in pastries and
bread increased; the prices of the products that will be available to market will
also increase, thus affecting consumer preference in buying certain product.
c. SOCIO-CULTURAL
1) Filipino Tradition especially celebrating special occasions
It is already a part of Filipino tradition to celebrate occasions with their families,
so it is considered an opportunity for the business to increase sales by selling
products such as cakes and other pastry products.

2) Bread has been considered a primary commodity for Filipinos

Bread has been a part of the daily lives of Filipinos. This is an opportunity for the
business since bread is already considered a commodity; people will always
patronize bread despite certain factors.
d. TECHNOLOGY AND NATURAL ENVIRONMENT

1) Global Warming
This is a threat because the prices of raw materials will increase. Since global
warming results to climate change, the growth of crops which is primarily used as
inputs for bread.
2) Natural Calamities
This is a threat and also an opportunity. It is considered a threat because prices of
goods will increase. It is also an opportunity because as prices of basic commodity
(e.g rice) increases, the demand of bread which is a substitute commodity for rice
will increase.
3) Machineries and Equipment
This is a strength because production will increase as machineries and equipment
are deemed efficient than manual laborers.
2. MARKET ANALYSIS
a. DEMAND ESTIMATION
For our estimated and segmented demand size, we used the Chain-Ratio Method which involves
multiplying a base number by chain of adjusting percentage.
Chain-ratio method= n * q * p
5

Chain-ratio method = number of potential buyers in the market * Average purchase quantity
per year * price of an average unit.
Since the target markets of the business are the residents of Bolilao Manduriao, the population
was used to estimate the demand of the products.
Annual Estimated Demand in Peso:

Year
Solution
Result
2011
3, 600,000* 6461*5
116,829,800,000
2012
3, 600,000* 6461*5
116,829,800,000
2013
3, 600,000* 6461*5
116,829,800,000
2014
3, 600,000* 6461*5
116,829,800,000
b. MARKET TRENDS
Ruchels Bakeshop has a constant market trend, since it has constant demand from
2011 to 2014. Since bread is a necessity, the demand does not significantly change. Even if
prices would increase due to inflation, its demand is still elastic, which means price does not affect

the demand of the product. In contrast, demand for pastry only rises when there are special
holidays such as Christmas and New Year.
c. GROWTH POTENTIAL
Given that Ruchels Bakeshop has no plans of expansion, and their ways of promoting their
product is by word of mouth, growth potential of the bakeshop is minimal however, due to the
fact that its sales are constant, the trend of growth potential is increasing but not significantly.
3. CONSUMER ANALYSIS
a. CONSUMER NEEDS
Filipinos consider bread with the likes of pandesal, and pande leche as a basic necessity
regardless of what status you are in. The bread store was built up in the first place in order to
satisfy that need of the consumers in that area with convenience. Without the bread store, it
wouldnt be convenient for the people in their area for them to acquire bread since (1) they will
have to go to the nearest bread store which is in SM City, (2) they will have to wait for the bread
vendor who roams around the city, or (3) they would have to create their own which will be more
costly if the purpose is for their own consumption.
b. BUYING SITUATION
Customers who are accustomed with the store always go back because of the variety of food the
store offers. Compared to other bread stores, Ruchels bread store has a carinderia and
convenience store that provides the people a great amount of choices what to buy.
Buying bread is already a habit for Filipinos since bread is considered a necessity thats why
7

people buy bread any time of the day everyday but mostly early mornings and late afternoons.
In addition, pastries such as cakes and cupcakes are already a part of a traditional Filipino
celebration.
Fig.1
Source:http://www.rappler.com/move-ph/issues/hunger/88174-top-food-products-commonlyconsumed-filipinos
c. FACTORS THAT AFFECT HUMAN BEHAVIOR
The different factors affecting the business would be majorly on the cultural aspect. Regardless of
age, income bracket, sex and gender, as long as the person is a Filipino or someone who was
exposed to the Filipino culture, consuming bread such as pandesal, hopia, and the like for
breakfast and meryenda and buying cakes for special occasions such as birthdays, anniversaries,
Christmas and many more is not just a mere want but a necessity.

4. COMPETITORS ANALYSIS
a. COMPETITIVE POSITIONING
Ruchels bread store has two direct competitors in the market. They were considered as
competitors since (1) they have the same primary market which is the neighborhood, (2) they sell
exactly the same product which is bread, (3) and if ever there are changes in the quality of the
product, the difference would be in a minimal or simply if you are to eat both products, you
wouldnt know the difference. With the current situation, it will be up to the Place, Price, and
Promotions to keep the business competitive.
The edge of Ruchels breadstore compared to others is that it has a convenience store and a
carinderia or a small canteen with it which would make things more convenient for the consumers.
Having a one stop shop establishment near the vicinity would really help a person save time and
energy.
b. MARKETING STRATEGIES
a. TARGET MARKET
i.
TOTOYS PANADERIA
The market of Totoys Panaderia would be those in the neighborhood regardless of age,
gender, etc. It is presumed that basing on the success of Ruchels Breadstore, the owner enters the
market in order to gain from it.
ii.
CORTEZ BAKERY
The target market of this competitor would be the same since it is situated in the
neighborhood.

iii.
Tibiao Bakery
Although competition is indirect, Tibiao Bakerys target market would be the general
public who are knowledgeable of this bakery. Tibiao Bakery has branches all over Iloilo affecting
even those in the neighborhood. They would also sell their product to famous convenience store
such as 7/11 and Go Mart in order to reach the public even more.
iv.
Angelinas Bakeshop
The competition would remain the same with Tibiao Bakery. Its target market is the
general public and not only in Iloilo but in the entire Region 6. However the distribution of their
products is through retailing by partnering with supermarkets.
b. BRAND POSITIONING
i.
Points of Parity
1. First Competitor
The product is the same, the quality of the bread is the same, and the pricing is
competitive. The main target market is the same as well.
2. Second Competitor
The product is the same, the quality of the bread is the same, and the pricing is
competitive. The main target market is the same as well.
3. Tibiao
Offers same kind of bread and has a restaurant-like set up which means they offer meals
and different snacks aside from bread.
10

4. Angelina
Ruchels Bakeshop also delivers to other sari-sari store for retailing just like the strategy of
Angelina Bakeshop.
ii.
Points of Difference
1. First Competitor
Ruchels offer more products such as a different variety of bread, it has a carinderia or
canteen that offers meals, and a sari sari store for the convenience of customers.
2. Second Competitor
Ruchels offer more products such as a different variety of bread, it has a carinderia or
canteen that offers meals, and a sari sari store for the convenience of customers.
3. Tibiao
Ruchels produces cakes and cheaper bread compared to Tibia due to commercialization
however Tibiao has an effective and efficient marketing since its simple yet attractive. It also has
different branches in Iloilo and extends to famous convenience stores.
4. Angelina
Ruchels offer more products such as hopia, and other native bread. Angelina focuses more
on its no-hole bread which Ruchel doesnt have. Promotion of Angelina exceeds far comparing to
the promotions of Ruchels which solely relies on the word of mouth.
11

c. MARKETING MIX
TOTOYS PANADERIA
Product
Price
Traditional Filipino bread
suggested by DTI( suggested retail
freshly baked
Place
price)
Promotion
Front of Motorcycle station
Customer relation
Other side of the neighborhood
CORTEZ BAKERY
Product
Price
Traditional Filipino Bread
suggested by DTI( suggested retail

price)
Place
Promotion
Near Ruchels Bread store
Word of mouth
After water station

Center of neighborhood
12

Tibiao Bakery
Product
Price
Wide range of quality products
affordable Value added products
known brand
excellent packaging
Native delicacies
Place
Promotion
establish branches on different
Print ads
Billboards
provinces in Panay
Well-ventilated and fresh warehouse
Radio ads
Angelina Bakeshop
Product
Price
Unique textured products
discount on bulk orders
good packaging
Place
Promotion
Main manufacturing firm located at
Print ads
Radio
Chinatown
well ventilated warehouse
13

B. STRENGTH AND WEAKNESSES OF COMPETITION

All of the competitors almost had the same target market, which are ilonggos. In
terms of the products that they offer, they only vary with their creativity and unique
recipes. Their common products is in competition on who have the cheaper product while
still having the same satisfaction. Another thing is that, direct competitors dont engage or
even try to invest in promotion. Ilonggos are fond of saving their money and will just spend
on something with greater value. Consecutively, for this small time businesses, promotion
and advertising are expensive luxury because in fact, major media or channel for ads are
very costly.
Tibiao bakery and Angelina bakeshop are just two of the indirect competitors of
Ruchels bread store. Even though they are known name in the city, people living away
from their branches will search other alternatives. Ilonggos will not travel for more than 20
minutes just to buy bread or delicacies. Small bread stores will be the alternative for this
problem, and with additional creative ideas, people will have no other choice but to be
loyal on them.
14

II.
STRENGTH, WEAKNESSES, OPPORTUNITIES, and THREATS ANALYSIS and

CRITICAL ISSUES
A. SWOT ANALYSIS
Strength
-also operates as a carenderia and sari sari
store
Opportunity
-offers personalized pastries
-loyal customers
-taste of the products
-Filipino tradition
-price of the product

-location
Threat
Weakness
-located nearby SM City
-solely managed by the owner
-establishment of new competitors in the
-lack of promotion
neighborhood
One of the unique characteristics of Ruchels bread store that separates it from others is
that it does not only sell bread but also functions as a carenderia. They offer a variety of
traditional Filipino meals that satisfies the taste buds of hungry costumers with in a budget
friendly price range. Aside from the meals, the local bread store is also a small sari sari store that
15

sells the daily commodity needs of the customers. And because of these, costumers often choose
Ruchels bread store than other nearby bread stores. As a customer, why would you buy bread
from another bread store then go somewhere else to look for a sari ari store and buy a sachet of
shampoo when you can do both in one transaction? Ruchels bread store reduces the needed time
and effort of the customers. Unlike other bread stores, Ruchels bread store also accepts orders
for personalized pastries such as cakes for different occasions in accordance to the designs
requested by the customers. One of the reasons why customers also keep on going back to buy
bread from the bread store is because of the taste of its products. Mrs. Villanueva keeps in mind
that the prices should be reasonable and cheap but without the need of compromising its quality.
The products sold are also assured that they are fresh and newly baked. In the circumstance that
the breads are not sold, they are being reused and baked as pudding and more so that it will not
go to waste. The location of the bread store can also be considered as an advantage since it is
located at the center of Bolilao therefore easily accessible by its surrounding neighbors.
Mrs. Ruchel Villanueva, the owner of Ruchels bread store manages all operations
concerning the bread store. All decisions are made by her. Such as how much inventory of raw
materials should be bought and stored. Who should they hire and she chooses the designation of
work such as who does who. She is also responsible for computing the sales, expenses and other
financial concerns and also counting of the money. Most of the times she also personally mans the
bread store and helps bake orders. Though it is good for the owner to have a hands-on on the
business, sometimes doing everything by herself can cause confusion and errors. There is no third
person to verify and correct the work and in the absence of Mrs. Villanueva, there is no one to
take over. Since the bread store is considered a small scale business, it has doesnt yet have
16

proper marketing strategy or any promotion tactics and simply relies on the word of mouth for
their products to be known, therefore it limits its potential of expanding their target market.
Ruchels bread store is one the pioneering bread stores in the neighborhood, therefore has
already established a name and has proven the quality of the product. This led to a continually
growing number of loyal customers and even though new competitors rise, customers still looks for
the taste of Ruchels bread. The local bread store does not have any marketing strategy but it
became popular simply through word of mouth. Loyal customers are the bread stores best
marketing team. And since bread will always be a part of a Filipinos breakfast or afternoon
snack. It has been a long time tradition for Filipinos to wake up in the morning and enjoy a newly
baked pandesal partnered with hot coffee or enjoy a peaceful afternoon with a sweet bread
and a glass of juice. This Filipino tradition is one of the reasons why the bread store still stands
until today.
Ruchels bread store is located at Bolilao, Jaro, Iloilo City and is in front of SM City thats
why the mall is considered an indirect competition. People going to SM City would often choose to
buy bread from the mall before going home for lesser hassle and more convenience rather than
find time to go to the bread store. But a bigger threat for Ruchels bread store would be its direct
competitors or other local bread store in the neighborhood and would sometimes be a cause for
people living farther away from the bread store to choose another local bread store selling the
same type of bread that is closer to their vicinity. Since the bread stores sell almost the same
types of bread, there is only a little advantage that each store has over the other.
17

B. CRITICAL ISSUES
What is the market gap or need to be satisfied?
Being the first bread store in the area, it can be presumed that Ruchels Bread Store was
founded in order to provide fresh and delicious bread for the neighborhood and to make the
acquisition of the latter more convenient. So rather than waiting for the bread vendor who roams
around the city with no assurance that your favorite bread is still in stock or making your stomach
wait early in the morning and hoping for the vendor to come, neighbors and those concerned could
just walk a couple of meters in order to satisfy their or the households need of consumption of
bread.
Values that are important to target market
Filipinos do not like hassle in their everyday activities, especially when doing errands which
would result in going around the vicinity and all. Ruchels Bread Store knows that fact and wanted
to help the target market. The store doesnt just sell different varieties of bread; it actually provides
customers with different crops such as sweet corn, cooks different meals and dishes for daily
consumption, retails different products from hygienic to school materials to junk foods which are
another Filipino necessity, and many more.
The bread store also accepts feedbacks from the customers and that they treat these
comments seriously for the benefit of the bread store. This is one way to enable to adjust the
different products to the satisfaction of the customers. It could be one factor on why the store is able
to sustain through the years.
How to effectively differentiate your value-offer from competition?
The bread store, as stated in the Target Market, aims to satisfy the people in the
neighborhood and others who are concerned such as friends, referrals, etc. We could say that
18

acquiring bread early in the morning is a necessity for traditional Filipinos but acquiring hot and
fresh bread is a want that every Filipinos would demand. This is just one of the specifications that
the bread store could offer but however specifications would differ from the product such as the
case of the pandesal vs cake where cake could be specified in a lot of ways. Ruchels Bread Store,
if demanded, would provide those goods and specifications for the customer.
Filipinos are also thrifty in some ways moreover; those in the neighborhood are not mostly
members of those higher income brackets. Thats why Ruchel Bread Store has breads priced in the
most optimal and affordable way there is in order to attract the market and to keep up with
competition.
What are the key factors to success?
The business is successful, and every time a business becomes successful, it will always attract
competitors into opening the same business, with same or even more things to offer for the market.
Ruchel Bread Store for instance has two competitors in the Neighborhood which is already a threat
given that their markets are in common which would mean competition will take place. Bread will
always be the same, competitors bake bread with the same quality but what gives the edge to
Ruchel Bread Store is the convenience (having a one stop shop), variety (different bread are sold),
location (strategically located in the center).
What types of core competencies must be developed to be successful?
What makes the bread store alive are the suki or loyal customers of the bakery. They
remain as customers for the reason that they love the bread and that they continue to love it because
of the consistent quality of the bread. Another factor could be that the store offers affordable
products which would mean that mark ups are in the optimum. And the loyal customers just keep
growing and growing due to word of mouth by friends and loyal customers. The bread store
19

innovates as well by increasing the different varieties of the product as well in order to be able to
compete in the market.
However, the bread store lacks promotions with its product especially to their specialized
cakes. The only available way for them to promote, is through the word of mouth. They have the
place, the price and the product but they lack the promotional aspect of the Marketing Mix. It could
be in any form like through flyers, signs, improved packaging. Completing the 4 Aspects of the
Marketing Mix would increase the opportunities of the business. Who knows what the business can
actually be capable of?
What critical issues likely to affect the attainment of objectives and which must be addressed
in the Marketing Plan?
Of all the issues stated above, what is needed to be tackled is the promotional aspect of
the business. Moreover, we also have to retain or improve the others such as being able to respond
to feedbacks, catering to the needs and values of the market and so on. Since it is already assumed
that when the 4Ps combines and works together, it will make the market of the business even bigger.
This Marketing Plan will focus on creating promotional activities for the business, make it grow and
continue to retain the other values.
III.
IDENTIFIED MARKETING OPPORTUNITY
1. Grow Customer Base Not Just Consumer Base

Given the limited resources to promote the bakery and its products due to its small size, the
best way to reach more consumers and earn more is by growing the business together with
customers. These customers are also small businesses that will make the products of Ruchels
Bakeshop available to different locations without necessarily putting up new bakeries and
20

manpower. This can be achieved by catering to a new market: school canteens or cooperatives in
Iloilo City.
A consignment strategy can be used as a distribution technique to make the products of the
bakery available to a larger consumer base: students and teachers. The agreement is simple, the
new customer base which is the school canteens or cooperatives will be able to profit from retailing
bread from the bakery and in turn, Ruchels bakery will also gain revenue from each piece of bread
sold. However, part of the agreement is that once the bread will not be sold at the end of the day,
Ruchels bakeshop will have to take the inventory back. It is the same as asking somebody to sell
your products for you allowing them to profit from selling it at a higher price. In this way, it will be
a win-win situation for the customers and they will likely partner with the bakery. Although Ruchels
bakery will still be faced with the risk of having bread not sold for the day, at least it will be able
to penetrate a wider market other than its current target market.
In general, this is an opportunity for Ruchels bakery to create sustainable relationships with
customers and as a result, grow its customer base.
2.
Innovation
Innovation can be a potential catalyst for the growth and success of Ruchels bakery and help
it adapt and grow in the market. One way to apply innovation is to consider a major change in the
value proposition of its products and take advantage of the market trends and consumer
preferences.
All other competitors can address the need of the consumers which is providing them their daily
bread needs for breakfast or merienda. But the thing that can set Ruchels bakery apart from thr
competitors is providing not only consumers need but what the consumers want. This want can be
derived from the current market trend evident in the food industry: the healthy trend.
21

Consumers are becoming more health-conscious and are pressingly concerned about what
they are eating. Today's consumers are increasingly driven to local, natural, organic and sustainable
offeringsand are willing to pay more for them. This is the reason why restaurants offering healthy
food charge more expensively compared to ordinary restaurants it is not about product cost but
it is about health. Consumers are buying health compared to the product itself. We can leverage
on this insight by being the first in the vicinity to offer healthy bread at an affordable price.
3. High quality products at reasonable prices
4. Leveraging on taste: Bread Flavor
IV.
PROPOSED TARGET MARKET
Our target market is people and their satisfaction. To achieve this target, the term can be
explained in the following ways.
SEGMENTATION
Geographic Segmentation
The immediate target market is the residents of Bolilao Mandurriao. There

are roughly 6461 people who are residing in this Barangay. And from this
population, Ruchels Breadstore will target only those who are wage
earners who seek to a Bakeshop which offers a wide range of bread and
pastry products.
22

Demographic Segmentation
In the demographic segmentation, Ruchels Breadstore classified the
costumers in the following parameters.
o Income
o Age
o Gender
o Family Life Cycle
The above mentioned parameters will respond in the following situations:

Parameter
Description
Income
All ranges of wage
Age
All ages
Gender
All Genders
Young adults, single, large and small sized
Family Life Cycle
family
23

Psychographic Segmentation
Ruchels Breadstore offers variety of bread and pastry since costumers
have different preference.
o Lifestyle
o Personality
o Social
Parameter
Description
Lifestyle
Personal Interest, activities, opinions
All classes
Social Class
Personality
V.
Sweets and food lover
FINANCIAL AND MARKETING GOALS / OBJECTIVES
A. FINANCIAL OBJECTIVES
The objective of this Marketing Plan is to increase the sales and profit of Ruchels Bakery
through promotion. Since the Sales of this bakeshop has been constant for the past years, it seems
like there is no improvement or progress happening, and if there is, it is not visible in their profits.
24

Since there is already a given estimate of the sales, let us go back to what was discussed
earlier. We have used this equation to find out the Annual Estimated Demand of this bakeshop.
Chain-ratio method= n * q * p
Chain-ratio method = number of potential buyers in the market * Average purchase quantity per
year * price of an average unit.
With this equation we were able to come up with the value of 116,829,800,000 annually.
Since the objective of this marketing plan is to increase the sales and profit by at least ten to fifteen
percent annually. If this happens, there is a possibility of an increase of 11,682,980,000 to
17,524,470,000 in the annual demand of this bakeshop. The question here now is how we are able
to successfully increase the demand of the products of Ruchels Bakeshop. This will be discussed in
our marketing objectives.
B. MARKETING OBJECTIVES
Ruchels bread store is a small scale family business and the owner, Mrs. Ruchel Villanueva
does not have any plans to expand therefore marketing strategies and proper promotions are
not in her priorities. The bread store simply relies on the word of mouth and customer relations for
their promotion. Thus we aim to create a marketing strategy that will aid in the breads store
promotion. These strategies will be designed in order for the increase in brand awareness of the
product and will expand their target market beyond their neighbourhood. Only a few people
know about the personalized pastry making service of the breads store and since they do not
display the pastries such as the cakes, cupcakes and cookies and all are made to order, people
are not informed of this unless they personally make inquiries. Since the breads being sold in the
bread store are nearly identical if not identical at all with each other thus people do not have
25

any distinction of the products. With taste alone, costumers have difficulty in differentiating the
products. Thus, we aim to make a marketing strategy that will separate Ruchels bread store from
that of others, and therefore establish a brand distinction. Of course, the aim of every business is
to gain profit, thus by creating and implementing a proper marketing strategy will lead to a
larger target market, increase in brand awareness, establish a brand distinction and will lead to
an increase in sales volume. If Ruchels bread store has proper branding, an increase in number of
customers will thus increase the bread stores profit.
VI.
MARKETING STRATEGY
A. ANSOFFS MATRIX
a. Market Development
Ruchels breadstore is situated only in Bolilao Iloilo hence the main target
market of the entity is only the people who lives there. Moreover in order to reach
more markets, Ruchels Breadstore would have to expand its operations but given
the workforce that the entity has, expansion would be hard unless they would
increase the human resources.
Given the situation, one way that the store can actually expand without the
expense of increasing human resources, is to consign their products to other
establishments such as canteens like in the UPV or caf like moonleaf. This way, the
products of Ruchels Breadstore can actually reach other market segments such as
students in different levels and also professionals who actually have the buying
capacity. This can also serve as promotion for their products because consumers will
be able to know the branding.
26

Another that Ruchels can take advantage of is the social media such as
Facebook, Twitter, and Instagram. In this way Ruchels can actually reach greater
markets given the network that the social media provides. Ruchels can actually
create a social media account for them to market their product like posting their
delicacies, pastries, and many more; and would actually receive orders in the
internet which makes things even more efficient.
b. Market Penetration
Ruchels breadstore has loyal customers. As an entity, these customers should
remain loyal and the number of loyal customers should increase as well. However,
due to the risk of increasing competitors direct and indirect, loyal customers could
easily switch brands. Ruchels can offer tie ups like buy 10 get 2 offer or buy 5 get
1 during special occasions for loyal customers, or offer free newly released products
during special occasions so that loyal customers would feel that they get more value
than what they paid for and it would eventually promote these products. When they
like it, they would continue to buy it.
Ruchels could offer delivery services for orders worth a certain price just like
in the case of McDonalds, with this, Ruchels increase its reach to its consumers,
Ruchels going to them instead of them going to the store especially with bulk orders
is a good way to increase penetration in the existing market.
If Ruchels will have to consign to other establishments, in order for the
product to look appealing, Ruchels can provide a certain packaging suited in the
eyes to the younger customer base. Increasing capture rate is another key in
penetrating the market.
27

c. Diversification
Ruchels breadstore does not only produce native bread. They also produce
different kinds of cake and pastries. The selling of bread however overshadows the
cake and pastries given that human resources are more focused in producing the
different native bread. In order to diversify the entity, Ruchels can convert their
ordinary bakery into a caf just like Maridels in Plazuela Iloilo that offers different
variety of cake, although Maridels target market are those that are high end
consumers due to the fact of high prices, Ruchels would continue to serve the masses
and its target market which is the neighbourhood which means prices would remain
as is or simply that would make it affordable for the neighbours. Ruchels can
actually follow this since Maridels is somehow successful and continues to operate. In
this way as well, Ruchels actually can take advantage of this generation given that
cafs are in demand especially with students who actually want a peaceful place
to study and professionals who would do business meetings on such a place. Native
breads will still be served but on a lower scale.
d. Product Development
Ruchels breadstore offers one of the most affordable bread in town. Its
competitors also offer one of the most affordable bread in town. Quality is
optimized with price. It is already a presumption that as quality increases so will
price and vice versa. Quality is the same with competitors. Changing the quality of
the product would mean increasing the price which would mean making it not
28

competitive in the market. What Ruchels can do is to produce more variety of bread
that can only be located in Ruchels.
Ruchels can also take advantage of the seasonal trends and would offer
certain products on those seasons only. Like during Valentines, Ruchels would offer
heart shaped pastries or bread since these kinds of things are usually bought, during
Halloween, play with Halloween colors and designs for pastries, during Summer,
offer sun shaped or designed cookise, etc.
e. Results
Basing on our analysis and given the condition of the company today, the Product Development
and the Market Development are the most feasible among the 4 since it presents less risk and
more benefits for the company and if cost-benefit analysis was used, Product Development and
Market Development are more favorable.
B. BRAND POSITIONING
a. Target Market
The target market of Ruchels bakeshop is the masses within and outside the
neighbourhood who are looking for cakes and pastries especially bread as a daily
necessity.
b. Competitive Frame of Reference
In the breadstore market, Ruchels Bakeshop does not only compete with
other bakeries in the neighbourhood. It also competes with cafs in terms of pastry
offerings, grocery stores and convenience stores in terms of non-pastry good
offerings and fast food restaurants in terms of meal offerings.
29

c. POD and POP

Ruchels compared to other competitors believes on service that is not only
convenient but also affordable at the same time. Malls and other convenience store
may be convenient (parity) but prices are rocket high (difference) and nearby
breadstores may be affordable (parity) but they are not convenient (difference).
d. Value Proposition
Ruchels bakestore creates affordable and fresh bread daily. They serve it
as how the customer likes it and when customer enjoys their products they can enjoy
some more with the other services Ruchels has to offer.
e. Support or Reason to Believe
Availability of cakes and pastries in product portfolio and low cost Products.
Specialized cakes are done through orders which can be assumed baked after
requested.
C. MARKETING MIX
i. PRODUCT STRATEGY
1. Product Objective
To improve the quality of the products
To introduce the products into a larger market
To highlight the pastry products without shadowing the current

traditional breads
30

2. Product Strategy
a) Components of the Market Offering
Since the bread that is offered by Ruchels bread store is closely identical
to those of the other bread stores, the current traditional breads taste and flavor
should be enhanced in a way that prices will not drastically change or increase
beyond the willingness to pay of the customers.
One of the major advantage of Ruchels bread store over the other
competitors is its personalized pastries services therefore this advantage should be
heightened. This service is not well known to the people since those who purchase
this are usually only the relatives or close friends of the owner. We plan to
promote this service to a bigger target market and make more of these pastries to
sell in a daily basis or weekly basis.
Introducing a new set of product such as the seasonally trending pastries
where in pastries are specifically made for a particular season or occasion such as
heart shaped cookies for Valentines, Christmas themed cakes or Halloween themed
cupcakes will put Ruchels bread store above others. This product is expected to set
a trend in the bread store business and thus increase income.
b) Branding Objective and Strategy
To have proper distinction from other local bread store
To be known by a bigger target market
To establish a proper brand
In order to achieve the branding objectives, a proper marketing plan

should be implemented by Ruchels bread store. Promotions for the improved
31

products and new products should be established well. For products that will be
consigned, a packaging for the products that will show the brand and make
people notice and remember Ruchels bread store should be made. The bread
stores logo and tagline should be included in the packaging and in the other
medium of promotions such as posters, banners and social network pages.
ii. PRICE (COST) STRATEGY
a) Pricing Objective
To make the prices affordable for the customers
To maintain the budget friendly price of the products
b) Consideration in setting the price
The target market
The quality and quantity of the products
The raw materials used
The marginal propensity to consume of the customers
The willingness to pay of the customers
c) Pricing Strategy
To ensure the affordability of the products, both quality and price of
raw materials are considered. The most cost efficient materials that will result in
optimizing the taste and quality of the products will be used for the making of the
products. Food establishments that are most well-known but asks for the smallest
amount of percentage for the consignment will be chosen. Since Ruchels bread
32

store hasnt established a well-known brand yet, it is vital to ensure that its loyal
customers will not be greatly affected by the change of prices and will further
increase the number of customers thus increasing income.
d) Price Adjustment Strategies
For the consignment and new products, introductory prices will first
be implemented so that customers will have more chances to taste the products and
will garner a bigger number of customers. If the demand increases, so will the
price and until the bread store has not yet properly established its brand, it is wise
to keep the prices at an affordable level.
Gradual increase in prices will also be made to the current
products if ever there is a need when there qualities are further improved. This
gradual change will help the customers cope up easier to the increase in price
rather than abruptly increasing the prices and risk losing the bread stores current
customers
iii. PLACE
a) Place Objectives
To find food establishments whose target market are consumers

with buying capacities
To find food establishments that is located conveniently and is

accessible to the majority of the target market
To enhance the current exterior and interior design of the bread

store
33

b) Criteria used in evaluating channels
Location
Target Market
Cost of consignment\
c) Types of intermediaries or channels used
Consignments- Ruchels bread store will partner with a current

Food establishment in order for their products to be sold in their
organization
Deliveries- Ruchels bread store currently delivers their

traditional breads to customers who buys in bulks and the
breads are also roamed around the neighborhood or nearby
places for better distribution. We plan to have a door to door
delivery of the personalized pastries as to decrease the
inconvenience for the customers.
Pick up- if the customer wishes to pick up the pastries or bulks of

bread from the store is also within the customers discretion if it
is the more convenient way for them.
Display- a variety of pastries and bread will also displayed in

the bread store for customers to see and for them to be able to
buy the bread or the pastry at that exact moment. Being able
to display products that are at hand and customers are able to
buy immediately will decrease the amount of time needed to
prepare the order for both the customer and the bread store.
34

d) The responsibility of the intermediary/channel
It is the responsibility of the consignee to ensure that the

products are well promoted to their customers to ensure the
optimization of sales and also to avoid the destruction of the
products while it is under their care. It is also their responsibility
to show proofs of payment and make a financial statement that
will ensure the accuracy and credibility of the profit made.
e) Incentives given to the channels to motivate them
The consignee will be given a percentage of the sales they

have made or of the products they have sold.
iv. PROMOTIONS (COMMUNICATION)

PULL STRATEGY
Our marketing communication mix would be a combination of advertising, direct
marketing, personal selling, and public relations. All of these would help promote Ruchels
Bakeshop.
Advertising would make the bakeshop known to more people. Not just in their
neighborhood but also outside their neighborhood. Personal Selling and Public Relations
would create good relationships between the customer and the seller that would build trust
between them.
Examples on how the bakeshop would advertise itself is through posters with complete
details so that people may know about them. Also, they may put stickers on the packages of
their products with contact details and address so that the people who would discover their
pastries would be able to contact them easily. How they would work on personal selling and
35

public relations may be through personal deliveries and through the sellers relationship with
their customers.
PUSH STRATEGY
Our push strategy would be similar with our pull strategy. Since what the bakeshop is
selling is basically a need of the people, it would be easy to encourage them to buy our
products. The only difficulty we may encounter here is probably the competitors around.
v. PEOPLE
The people targeted by this bakeshop are the ones around the neighborhood. The target
market would now expand to a larger scale if the bakeshop would promote itself to attract
more people and gain more customers.
VII. ACTION PROGRAM AND IMPLEMENTATION SCHEDULE

WHAT WILL BE DONE?
The activities that will be done would be more on promoting and advertising the products
of Ruchels Bakeshop. Also, a bit of improvement on how employees converse and deal with the
bakeshops customers.
WHEN WILL IT START AND END?
After proposing the marketing plan, as soon as the bakeshop approves it, the said plan
will be taken action as soon as possible. Since this plan focuses more on promoting and
advertising the product, it doesnt really end. Every month or year, the bakeshop should prepare
a new set of promotions and advertisements in order for it to grow and grow every day.
36

HOW MUCH WILL IT COST?

The planned ways of promoting this bakeshop is not too costly. The allotment of an
estimated budget of 50,000 to 100,000 pesos would probably be enough for the bakeshop
since the proposed activities for this bakeshop only allots money for printing posters and stickers.
VIII. FINANCIAL FORECASTS

Given that our target unit sales for the year 2016 is 4,000,000 units and our percentage growth
is 10% we now forecasted the sales in the preceding 4 years.
Our forecasted sales in 2016 is 20 million php and increases by 2 million php per year.
Year
2016
2017
2018
2019
Target unit sales
4,000,000
4,400,000
4,800,000
5,200,000
Forecasted sales
20,000,000
22,000,000
24,000,000
26,000,000
IX. CONTROLS
Controlling, in general, is the process of monitoring activities to ensure that they are being
accomplished as planned and of correcting any significant deviations. Marketing control is used
by business owners to monitor and evaluate the current marketing strategies to identify needed
adjustments and set guidelines for the future to achieve marketing and business goals. The control
process starts with measuring actual performance, then comparing actual performance against a
standard, and lastly, taking action to correct deviations or inadequate standards.
37

Customer Feedback. Marketing is designed to persuade consumers to purchase a product or

invest in a service. One control put into place in any marketing plan is the monitoring of customer
feedback through polls and surveys. Customers can be reached indirectly by hosting online polls
on the Internet that ask specific questions about the latest marketing plan. Conversely, surveys can
be done with marketing groups or via individual interviews by phone or in person. Adjust the
marketing plan according to the results of the research. The strategies used that are not effective
must be eliminated to improve the performance of the company.
Budgeting. A marketing budget is a balance between the cost of generating the materials and
the revenue created by the marketing plan. Costs being incurred by the company must be
monitored in order to know if the company is using the resources efficiently. All of these costs need
to be closely monitored to minimize spending and maximize profitability. By examining expenses,
the company is able maintain the budget and see exactly where spending increases come from.
Competitor Analysis. A company needs to know how the products, services and marketing
strategy compare to local, regional, national and international competitors to retain existing
customers and attract new ones. Competitor analysis involves checking out the new products or
services offered by the competitors, examining their marketing strategies and determining
whether they are succeeding or failing with their businesses. The company must use this
information to adjust your strategies accordingly.
Customer Analysis. Another way to monitor and evaluate the marketing is to perform an existing
customer analysis to provide a detailed picture of the types of customers buying the products or
services. The company might consider gathering data about the consumers like their lifestyle, their
age, social class where they belong and other information that might help the company segment
its customers.
38

39

How To Make A Marketing Plan

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

How To Make A Marketing Plan

Загружено:

Авторское право:

Доступные форматы

University of the Philippines

Visayas Iloilo City Campus

University of the Philippines

COMPANY/BRAND STRENGTH AND WEAKNESSES ANALYSIS

University of the Philippines

PRESENT MARKETING STRATEGY

University of the Philippines

University of the Philippines

2) Bread has been considered a primary commodity for Filipinos

d. TECHNOLOGY AND NATURAL ENVIRONMENT

University of the Philippines

Annual Estimated Demand in Peso:

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines

Traditional Filipino bread

suggested by DTI( suggested retail

Front of Motorcycle station

Other side of the neighborhood

Traditional Filipino Bread

suggested by DTI( suggested retail

Near Ruchels Bread store

After water station

University of the Philippines

Wide range of quality products

affordable Value added products

establish branches on different

Unique textured products

discount on bulk orders

Main manufacturing firm located at

University of the Philippines

B. STRENGTH AND WEAKNESSES OF COMPETITION

University of the Philippines

STRENGTH, WEAKNESSES, OPPORTUNITIES, and THREATS ANALYSIS and

-offers personalized pastries

-taste of the products

-price of the product

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines

IDENTIFIED MARKETING OPPORTUNITY

1. Grow Customer Base Not Just Consumer Base

University of the Philippines

University of the Philippines

PROPOSED TARGET MARKET

The immediate target market is the residents of Bolilao Mandurriao. There

University of the Philippines

The above mentioned parameters will respond in the following situations:

University of the Philippines

Personal Interest, activities, opinions

Sweets and food lover

FINANCIAL AND MARKETING GOALS / OBJECTIVES

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines

University of the Philippines