Download - Marketing Plan (Handout)
MARKETING PLAN
Prepared by:
Alberto, DominicEnriquez, GrachelMacapagal, April
Yasol, LuellaRaagas, Brandon
Villa, ReygienDemontano, Shiela
I. EXECUTIVE SUMMARY
Infinitea Milk tea shop is a strong milktea shop which aims to provide customers with quality at
reasonable and just price. Our company targets the students and young professionals. As a
newcomer in the Milktea market, Infinitea seeks to come up with products that will distinct us
from our competitors, a product that provide satisfaction, quality taste and new variety of
Milktea. Thus we present Sorbetea, a taste beyond Milktea. Sorbetea is soft served ice cream
made from Infinitea’s Milktea this infuses the milk tea flavor that’s a craze among the younger
generation and the classic dessert ice cream. Infinitea wants to create a product that will help
survive the downfall of the trend of Milktea once it happens. Currently there is a tough
competition in milktea industry. As time passes and as the popularity of milktea grows many
competitors are entering the market. We at Infinitea, integrated and reviewed our past strategy
in able for us to exceed past performance and increase our efficiency. Sorbetea as a product will
bring consumer the new taste of the revolutionizing milktea. As a new product, Infinitea aims to
shift customer’s unawareness to awareness through advertising, to build up sales through our
new product and build and establish strong reputation in milktea industry.
The launching of Sorbetea aims to bring new and old customers to enjoy this product together
while generating profit to be used to innovate and improve the products being offered by
Infinitea.
II. THE CHALLENGE
Sorbetea is an ice cream made from Infinitea’s milkteas
This infuses the milk tea flavor that’s a craze among the younger generation and the classic
desert ice cream.
The product’s goal is to enhance the current reputation of infinitea and to bring a new
sensation that will be a new source of sales for the infinitea.
III. SITUATION ANALYSIS
COMPANY ANALYSIS
Mission
Our mission is to promote healthy lifestyles by selling premium teas and beverages with the highest quality. We will provide the highest quality and excellent value and service to our customers.
Vision
To provide consumers with tea that exceeds their expectation and gives them the ultimate satisfaction
Goal
Long Term Goals:
To be the largest Milktea shop in the Philippines To be the best well-known tea shop in the Philippines To branch out to other countries
Short Term Goals:
To develop a unique product that is not offered by the other competiors for not less than a year
Increase sales for the current year
FocusThe focus of Infinitea is to improve the taste and quality of their tea and be at par with the best tea brewers in the world
Strengths
At par with the quality service of other leading tea shops in the Philippines More variety of products available to consumers
Weakness
Information about the company is not readily available Brand name awareness among the customers is not strong
Positioning
High Quality Milktea made affordable for students without sacrificing the taste
The company’s strategy in achieving this positioning knows what the target consumers’ needs and constantly improve the product while innovating to cut down the cost. The targets markets of Infinitea are students and young professionals who look for great tasting tea and an
atmosphere to match. Since one of our target markets are students, we need to give always consideration on how much is a student’s allowance. Infinitea is a shop that provides good quality food and service to customers who are looking for place to socialize with each other without burning a hole through their pockets. If compared to other Milk tea shops, Infinitea’s prices are much lower. It also includes the pearls in its beverage price in contrast with other milk shops that separates it from the beverage price. Infinitea offers you a Milktea with pearls for an amount that will cost you in other tea shops for just their medium drink without pearls. Lastly, Infinitea will offer you the same great taste, in cases even greater, for the lesser price. Infinitea wants to be close to the students’ heart that is why it choose its positioning statement that its products will be low cost but high in quality
CUSTOMER ANALYSIS
Number
There are 3,500,000 people in the NCR that fits that target market of Infinitea of 13-25 years old
Type
Customers of Infinitea are mostly students and young professionals
Value Drivers
Price and Quality of Milktea
Decision Process
Size, taste and influence of friends
COMPETITOR ANALYSIS
SERENITEA
Marketing Position
It is one of the elite Milk Tea shops in the Philippines. It also has the most number of branches locally.
Strengths
Large Volume of Branches (In and out of Metro Manila) Brand name has already a strong impact in the market
Has good promotions and advertisements
Weakness
Their price is high when benchmarked with the other competitors Less variety of products when compared to competitors
Gong-cha
Market Position
Gong cha was established in 2006 in Taiwan. Since then it has been branching out to Singapore, China, Macau and lately the Philippines. Therefore, Gong cha is one of the most experienced tea makers out there. In addition, Gong cha values high quality milk tea.
Strengths
Has the most experience in the tea market compared to other competitors in the Philippines.
It has branches in other countries It values its freshness of tea severely. Unsold tea is thrown away every four hours
Weakness
Less branches compared to other competition Lacks advertisements
Chatime
Market PositionChatime was established in 2005. It targets health conscious and face paced youth.
Strengths
It has branches internationally Offers a variety of products
Weakness
Prices of toppings are doubled when benchmarked with the competition Branches in the Philippines are few
CLIMATE
Political and Legal EnvironmentThe government has implemented substantial trade and investment policy reforms during the last two decades following a three-track approach involving unilateral,
regional and multilateral modalities towards freer trade and investment. The reforms resulted to improvements in domestic resource allocation, increased productivity, increased competitiveness of manufacturing industries, expansion of exports and the increased integration of the country in the global market. Yet the growth of the industry sector, particularly manufacturing, has not been as robust as many had expected, leading some sectors to question the reforms. This requires some hard thinking but at the same time pose a great challenge to policymakers.
Economic EnvironmentThe GDP of the Philippines increased by 6.8% in the last quarter of 2012 compared
to last year’s 3.7% growth. It is higher than what is expected by the market players,
economists, and the government. The growth is profited from the benign inflation
and from the Services sector, particularly from Trade and Other Services.
It was much higher than the local and international economists prediction of 5.4 percent.
Social and Cultural EnvironmentFilipinos are not typically found of the bitter tea. But since it became a hit in the countries and Filipinos love to copy international trends, they adapted Milktea. It started to boom around late 2011. After that Milktea shops started to sprout everywhere.
Technological EnvironmentIn a fast paced society, innovations and new technologies are very present. They can positively and at the same time negatively affect a business, an organization and or a product. For Infinitea, it can be an opportunity for us to improve and enhance it. Use of transportation, can play a role in expanding the Infinitea, it can be delivered
into different places and be more known to other consumers, and also, through the
use of transportation there will be an easy access to buy the ingredients. New mix of
ingredients, we can open Infinitea to new flavors and other varieties for customers
to choose from.Social networking sites, one of the tools in making Infinitea be
known by everyone. Almost everbody has a facebook and twitter account. It can
spread like a wildfire and invite more customers to try our product. Communication
through mobiles, internet, avp commercials, it can help capture more attention to
the consumers and will leave them to curiousity to buy Infinitea.
SWOT ANALYSIS
Strengths
Great Variety of Products
Weaknesses
Brand Name Awareness is not
strong
Lack of knowledge of Employees
about the Company
Opportunities
Popularity of Milktea in our
generation that complements
that climate in the Philippines
Launch a “product line” that will
complement the climate in the
Philippines
Implement promotions that
target the student population
Threat
Tight Competition in the Market
Experts say Milk tea is a “fad”
Launch a product that combines
Milk tea flavors with Classic
Filipino Favorites
Focus on Marketing Promotion
IV. MARKET SEGMENTATION
GeographicRegion NCRCity or metro size 12,000,000Density UrbanClimate Tropical
Infinitea’s target market is within the region of NCR. In particular it wants to target locations near schools. It has an urban density with a tropical climate.
DemographicAge 13-25Family Size AnyFamily life cycle Young , single ; Young, marriedGender Male and FemaleIncome P300/ DayOccupation Students ; Young ProfessionalsEducation AnyReligion Any
Race AnyGeneration Y , ZNationality AnySocial Class Class A and B
Infinitea’s target markets are people, both male and female, between the ages of 13 and 25 years old since the main target of Infinitea are students and young professionals. The Young are the target market of Infinitea. The amount P300/day is the typical daily allowance of a student belonging in the middle class. The occupations of the target market are students and young professionals. It is the target occupation because students and young professionals are the ones who buy drinks and food that complements their taste. Typically, they prefer sweet foods and drinks. Infinitea targets students and young professionals who love to eat/drink while they are taking a break from the stresses of school life or work life. Religion and Race can be addressed to all. The Generation Y (80’s to early 90’s) are in their early 20’s or middle 20’s which is the target age of Infinitea. Generation X (Late 90’s to present) is in their teens which also fall in the target age. The Philippines has a lot of foreigners around and Infinitea does not prefer any nationality. They will give good quality product and service whatever their race might be. The Social Class being targeted in the Middle and Upper Class because lower class will not feel the necessity to buy Infinitea’s product. Also, income of the Lower Class might not meet the price set by Infinitea.
V. Alternative Marketing Strategy
Sorbetea will be offered through delivery, ice cream trucks and partnership with other restaurants.
Sorbetea will not be sold directly and will be distributed through restaurants.
VI. Selected Marketing Strategy
Product
SORBETEA LOGO
Sorbetea is soft served ice cream made from Infinitea’s milktea
This infuses the milk tea flavor that’s a craze among the younger generation and the classic
desert ice cream. Infinitea wants to create a product that will help survive the downfall of the
trend of Milktea once it happens.
Sorbetea will be offered first in five flavours composing of Okinawa, Wintermelon , Caramel,
Green tea, and Oreo
Pricing
The cost of this product will consist of the prices of raw materials, add-ons and additional
delivery fix charges. In able to achieve efficient cost, we must be able to specify the
measurement of each materials and resources that will be using in long-run. Breakdown of cost
is furthermore elaborated below:
COST PER OUNCE (MILK TEA ICE CREAM ONLY)
3.52
Please refer to Appendix 1 for the computation of the cost allocation per ingredient.
Measurement Cost Allocation
Milk 12 oz. P23.22
Sugar 1.0 oz. P1.7
Black Tea 1.5 oz. P19.55
Heavy
Cream
2.67 oz. P16.65
Total 17.34 oz P61.12Cost Per Piece
Cups P1.6
Spoon P0.95
Cost per serving Price
Sprinkles P3.92 5
Cookies P3.5 5
Chocolate chips P4.06 5
Mallows P3.22 5
Chocolate Syrup P2.50 5
Stick-o P3.09 5
SMALL ( 4 OUNCES) MEDIUM ( 6 OUNCES) LARGE (10 ounces)PRICE 29 39 59COST 16.63 23.67 37.75
Selling Price per Ounce P6
Comparison with Competitors
Characteristics Sorbetea Tutti Frutti CaliforniaBerry
Mochiko Selecta (Magnum)
Nestle (Heaven)
Product a wide variety of tasty and refreshing authentic pearl milk tea ice-cream for
a revolutionary self-service model that allows customers to get a good-size cup and
Our luscious, mouth-watering yogurt is a growing craze across the world and sure to be a
A Japanese dessert made out of special technique. It was there that we learned
Magnum is an ice cream brand that originated in Denmark.
Nestle Heaven Ice Cream is a line of premium ice cream with different flavors you probably have
all you fanatics out there.
serve themselves as many yogurt flavors as they want
popular menu item for you.
to use only the best ingredients and that is why our mochis are chewy and smooth.
never tried before in commercial ice cream brands.
Price 10 per ounce and the price of add ons depends on their chosen toppings.
20 per ounce Small- original:70 personal:75Medium-o:95 p:100Large-o:125 p:130
- 90 grams 70php each.
-P50 for 4.23 oz
-P37 for 5.07 oz
Advantage New product offering and wide MilkTea taste in a Ice-cream
Dispense Delicious Frozen yogurt
They use 100% non-fat milk
Offers Unique variety of Dessert in PH
The Top leader when it comes to ice-cream
Nestle is an international company and interconnected with its Parent headquarter
Disadvantage Information about the company is not readily available
The price per oz is high.
The stores are limited.
The price per scoop is high.
The price is too high for its quantity.
Its ice cream is easy to melt than the other brands.
Approach
The approaches to be used are Value based pricing and Competition based pricing. Since Sorbetea is new in the market it doesn't a reputation for being a high quality ice cream. The price is set low compared to the other competitors so that we can penetrate the market and also taking into consideration. As stated above, the price set by Infinitea is substantially lower than its competitors. We also took into consideration the price that a student will be willing to pay for an ice cream.
Distribution
One of the most important and critical factors in one’s business is the location. Location is the
key for the business’ success for it attracts the customers to purchase the product.
ESTABLISHMENT OF KIOSKS/ STALL IN THE FOLLOWING LOCATIONS:
1. In Schools and Universities like San Beda College Alabang, Ateneo De Manila
University, Miriam College, etc.
Placing booths or stalls inside schools and universities around Metro Manila will be a
good start for Sorbetea. The youth and teenagers are one of the target markets of
Sorbetea since the younger generations today are very fond of sweet foods.
2. In Malls inside Metro Manila like Glorietta, Megamall, Market-Market, etc.
Setting booths or stalls inside malls will give convenience to the customers.
Malls have the most volume or number of people especially during weekends.
These people that are seen inside the malls are from the different walks of life
and ages that can definitely afford and will surely love Sorbetea.
3. Beaches like in Boracay, Puerto Galera, etc.
Setting booths or stalls in beaches like Boracay is a perfect way to increase the
number of customers. Sorbetea is a perfect drink in beaches, especially in
Boracay and Puerto Galera where most of the people nowadays go to relax and
have a break from all the stress left in their homes. It is a perfect drink in
beaches because it is very refreshing and it gives extra healthy benefits to the
customers.
Promotion
Our promotion will focus on advertising, which is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as newspapers (local, national, free, trade), magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus sides).
Integrated Marketing Communication Tools 1. Free Taste
Schools – Infinitea choose this as one of our selected places because our main target markets are the kids up to the young adults. For school this is the place where children go to learn, it compromises preschool up to college, which are target market are. But if InfiniTea are to be more specific of which level, college schools or universities would be our main spots for this. Why? Because our target market and target audience are both present at this place, teenagers and some parents are enrolled here. They are also the ones who are always at the malls, mostly after class, so that they would relieve their stress or have a break from school works. And they have higher allowances compared to elementary or high school students. That is why they would be able to buy or afford our products more often if they crave for it, unlike for lower batch’s student budget.
Grocery Stores – This is a good idea because when the parents are done with their grocery shopping, they usually look for a treat (pasalubong) for their children who are left at home. When we offer our free taste and it suits their preference, they might buy our product. This is a great opportunity to reach out and build our name to adults and children.
The weight of the ice cream will be giving away will be just 2 ounces only and a limit of 300 ounces per day.
2. Student Discount
Students may get a 10% discount on all Sorbetea ice cream only. This discount can be applied on the total amount of Ice cream that they buy. It cannot be applied on every item. So for example, if their ice cream totaled to an amount of Php500, they will automatically have a Php50 discount. They will only pay Php450.
Other stores also offer this 10% discount to their students. One example is Dairy Queen. So what we did is we patterned our discounts to them. We didn’t make it lower than 10%, because students will compare Infinitea discount offer to other stores who offer the same product. We didn’t also make it higher than 10% because if we will make it, then it will be too much or too high. Yes it will attract students but it can only generate less profit.
The valid date of discount is subject to an extension. It will be based on company’s decision.
The target of student discount is the students. Our target segment is the students. That is why Infinitea wants our message to be really communicated
well with them. The objective of this promotion is to get their attention by offering them a discount. We want them to be aware of the product.
3. Web PageInfinitea’s current site lacks the vital information the consumer normally looks for. Therefore, a major reconstruction must be done to its further cater to the information needs of its consumers and strengthen their promotional efforts with the use of the web page.
Infinitea’s website will also be utilized in promoting the free taste of our product. We will establish a logo where it will lead them to a printable coupon that gives them a free taste of Sorbetea.
4. Print Ads
These print ads will be posted at
Infinitea Stores Malls
Target Audience Students Parents Regular consumers of Infinitea
The posters will be strategically placed in places where people typical wait. Terminals are where also where people from work wait. Usually, these people are stressed from work or school. Infinitea aims for them to see this poster and receive the message we are promoting. When you are stressed, sorbetea is here to alleviate it.
VII. Short and Long Term Projections
SHORT TERM PROJECTION
Sales Revenue will increase
Recognition of the Infinitea brand will increase
Number of Flavors being offered will increase
LONG TERM PROJECTION
Sorbetea will be the leading milk tea ice cream
Sorbetea branches will increase specifically in Provinces
Sorbetea will go international
Sorbetea will be offered in tubs in grocery stores
VIII. Conclusion:With all of this being presented, we have decided to first distinct ourselves to our competitors by offering a distinctive milktea which is the Sorbetea. In order to penetrate the market the price is set lower than the normal selling price. We also have to focus on our target markets by giving them incentives and focus the advertising on them. In order to achieve the short term goal, the market planning talks about building a strong foundation of the company by strengthening the menu offering of the Infinitea. This plan is also about providing the alternative for Infinitea in case that the popularity of the milktea will not be so booming as now and also to create the image of Infinitea as being an innovative milk tea shop among its competitors.
APPENDIXAppendix 1:
BLACK TEA
MTEA-LICIOUS MILK TEA SUPPLIER
BLACK TEA 500g = P230.00
230/500 = P.46/gram
1 ounce = 28.35 grams
Cost Allocation for Milk Tea=(28.35)(1.5)(0.46)= P26
SUGAR
Victoria refined sugar 250g = P15
15/250 =P.06/gram 1 ounce = 28.35 grams
Cost Allocation for Sugar =(28.35)(1)(.06) = P 1.7MILK
Alaska 1 Liter =P64.50
64.50/1liter=P64.50/liter 1 ounce = 0.03 liter
Cost Allocation for Sugar =(.03)(12)(64.50) = P 23.22
Heavy Cream
Nestle cream 300 g
65/300g =P0.22/g 1 ounce = 28.35 grams
Cost Allocation for Sugar =(28.35)(2.67)(0.22) = P 16.65