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Page 1: Marketing Aspect
Page 2: Marketing Aspect

Introduction Major Assumptions Definition of Ratings Knowledge of the Market Analysis of the Knowledge of the Market Methods of Projection Set of formula use in demand computation Demand Analysis Analysis of past and projected demand summary Analysis of Line-Fitting of Past and Projected demand

Supply analysis

Analysis of past and projected supply summary

Line-Fitting of past and projected supply Analysis

Past demand-supply gap analysis

Past demand-supply bar graph analysis

2009 market share analysis

2011 market share analysis

Product planning

Product planning analysis

Channel of Distribution

Channel of Distribution analysis

Sales Force and Management

Analysis of the Sales Force management

Customer relation and after sales

Page 3: Marketing Aspect

Customer relation and after sales analysis

Promotions and advertisement

Analysis of promotions and advertisement

Pricing

Competitor’s Pricing

Pricing Analysis

Packaging

Packaging Analysis

Marketing audit overall ratings

Marketing audit overall rating analysis

INTRODUCTION

Page 4: Marketing Aspect

"Marketing is the activity, set of institutions, and

processes for creating, communicating, delivering, and

exchanging offerings that have value for customers, clients,

partners, and society at large." 1 It generates the

strategy that underlies sales techniques, business

communication, and business development. 2 It is an

integrated process through which companies build strong

customer relationships and create value for their customers

and for themselves. It is used to identify the customer, to

keep the customer, and to satisfy the customer.

Marketing is a significant aspect of any business

organization in today’s highly competitive world. It is a

vey important aspect in business since it contributes

greatly to the success of the organization. Successful

marketing creates value for two or more parties so that each

is satisfied.

Satisfaction of both parties is an implicit aspect in

the exchange relationship. It must understand both the

needs and wants side of the parties and the product, ideas &

1

1. "Definition of Marketing". American Marketing Association. Retrieved 2009-10-30.

2 . aKotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2008). "Marketing defined". Principles of marketing (5th ed.). p. 7. . Retrieved 2009-10-23.

2

Page 5: Marketing Aspect

services side. It must also effectively communicate the

details of each in order to successfully bridge the gap

between the two.

The marketing functions helps to analyze and asses the

company’s knowledge of the market, product planning, sales

force management, distribution channel, building customer

relations, promotion, pricing and packaging, all of these

are considered in this audit valuable to the organization.

In this aspect, the proponents will determine the

marketing practices carried out by Khofeet’s Collections. An

assessment and evaluation are also given based on its

current situation in terms of marketing issues. Audited

items are shown here as well as their strengths and

weaknesses. Furthermore, proposed options and benefits are

also stated. These aims to help the company to come up with

a better plan and give them ideas to be competitive in the

immense Shoe Industry.

MAJOR ASSUMPTIONS

Page 6: Marketing Aspect

The basis for the projection of demand and supply for

the next five years is the Statistical Parabolic Curve.

The three (3) direct competitors of Khofeet’s

Collections are: Detasie, Sammyr’s shoes and Neikie’s

Sandals.

There were twenty-three (23) shoe-producing industries

that are considered as the competitors including the

three direct competitors.

The data for the supply of the competitors were based

on personal interviews.

The computation for the supply is based from the

twenty-three (23) registered shoe-producing industries

that are found in Carcar including the importers.

It is assumed that the frequency of purchase for

sandals that is considered in this study is only once

because of the known quality of products produced by

these industries.

DEFINITION OF RATINGS

Page 7: Marketing Aspect

Satisfactory (3.26 - 5.0)

These items represent the strong points of an

enterprise. Attention to these points is to be maintained as

long-term issue.

Reasonable (2.51 - 3.25)

Prevailing conditions are such that improvement cannot

be expected to lead immediately to tangible result as

compared to the effort to be made.

Improvement Desirable (1.76 - 2.50)

Improvements are expected to result in cost savings,

additional or tangible result.

Improvement Necessary (1.0 - 1.75)

An immediate action is considered urgent.

DEMAND

Demand refers to the amount of a particular economic

good or service that a consumer or group of consumers will

Page 8: Marketing Aspect

want to purchase at a given price. 3It is one of the bases

in determining the availability of the product or services

that the customers need. Therefore, demand is greatly

important in starting a business.

When a customer desire for something and willing to pay

for it, the demand will exist. Obviously when there is

demand, business will occur. Demand is one of the

considerations before a business or firm will operate.

In the case of , the proponents

have determined its demand through having the data of the

total population of Carcar City, Cebu City, Lapu-Lapu City,

Mandaue City and Cebu Provinces including local tourists

from the National Statistics Office. The data was used in

calculating the past and projected demand of the subject

company of this study.

PRODUCT DESCRIPTION

3 http://economics.about.com/cs/economicglossary/g/demand.html

Page 9: Marketing Aspect

Sandals are an open type of outdoor footwear,

consisting of a sole held to the wearer's foot by straps or

thongs passing over the instep and generally, but not

always, around the ankle.

It is a common understanding that a sandal leaves most

or all of the foot exposed. Aside from the fact that people

wear sandals in warmer climates or during warmer parts of

the year in order to keep their feet cool and dry, People

may choose to wear sandals for several reasons. Among them

economy (sandals tend to require less material than shoes),

comfort in warm weather, and as a fashion choice.

Table 16

Page 10: Marketing Aspect

DEMAND COMPUTATION

Table 17

TOTAL POPULATION DEMAND

Year Demand

2005 3,756,016

2006 4,084,664

2007 4,448,768

2008 4,851,508

2009 5,298,125

ANALYSIS OF DEMAND

Page 11: Marketing Aspect

Khofeet’s Collections demand is based on the total

number of population because their product caters to people

of all ages. Sandals are considered a thing almost everybody

possesses possibly. The data considered are the population

of Carcar City, Cebu City, Lapu-Lapu City, Mandaue City and

Cebu provinces. Data were gathered from the internet and

National Statistics Office. To get the actual demand,

potential demand is multiplied to the percentage of those

who are willing to avail the company’s products which is

sandals.

With the great fact that population is vastly

increasing, it is certain that the shoe industry would

remain to excel in the market and never lose its status as a

basic need.

METHODS OF PROJECTION

Page 12: Marketing Aspect

Forecasting is the process by which companies ponder

and prepare for the future. It involves predicting the

future outcome of various business decisions. 4 A forecast

is a prediction of what will occur in the future. It is the

basis for most important planning decisions. Accurate

forecasting is critical for managing and planning. Business

must understand and use forecasting in order to answer

important questions vital for the business success. This

helps the company prepare for the future. Thus, care should

be taken in choosing the right method of projection.

To forecast the demand and supply for the years 2005 to

2014, mathematical models were used for computation.

The methods of projection used are the following:

Arithmetic Straight Line (ASL)

Arithmetic Geometric Curve (AGC)

Statistical Straight Line (SSL)

Statistical Parabolic Curve (SPC)

4 http://www.associatedcontent.com/article/200360/why_is_forecasting_important_to_an.html

Page 13: Marketing Aspect

Computations were made on the four projections, and from

this the selection of the best method of projection was

made. The chosen method of projection will be used as the

data for demand and supply. Three factors considered in the

selection of the appropriate method of projection. It was

based on the following:

Standard Deviation

- The one which yields the smallest standard

deviation is most likely to give the most reliable

forecast.

Average Growth Rate

- The least average growth rate most likely to give

the most reliable forecast

Law of Conservatism

- The growth rate of the projection should be closer

or if possible lower to the growth rate of the

past demand of the target market.

Page 14: Marketing Aspect

COMPUTATION OF PAST AND PROJECTED DEMAND

Table 18

YEAR Y a Y-1 Yc Y-Yc (Y-YC)²2005 3,762,016 - - - - -2006 4,090,664 385527 3762016 4147543 -56879 3,235,249,0812007 4,454,768 385527 4147543 4533071 -78303 6,131,281,5062008 4,857,508 385527 4533071 4918598 -61090 3,731,957,5552009 5,304,125 385527 4918598 5304125 0 0Total 13,098,488,142

standard deviation 51182.98

Projected ValuesYear A Yi-1 Yc

2010 385527 5,304,125 56896522011 385527 5689652 60751802012 385527 6075180 64607072013 385527 6460707 68462342014 385527 6846234 7231761

Table 19

Arithmetic Straight Line Method(historical data)

Page 15: Marketing Aspect

Arithmetic Geometric Curve(historical data)

YEAR Y %inc (dec) Yi+1 1+r Yc Y-Yc (Y-Yc)²2005 3,762,016 - 4,295,194 1.09 3,941,704 -179,688 32,287,755,4882006 4,090,664 8.74 4,680,385 1.09 4,295,194 -204,530 41,832,603,0742007 4,454,768 8.90 5,100,120 1.09 4,680,385 -225,617 50,903,171,7172008 4,857,508 9.04 5,304,125 1.04 5,100,120 -242,612 58,860,675,8562009 5,304,125 9.19 - - - - -

Total 183,884,206,135standard deviation 191772.89

Projected Demand

YEAR Yi-1 1+r Yc2010 5,304,125 1.09 57797972011 5,779,797 1.09 62981262012 6,298,126 1.09 68629392013 6,862,939 1.09 74784052014 7,478,405 1.09 8149065

Table 20

Statistical Straight Line

Page 16: Marketing Aspect

(historical data)

YEAR Y X X² XY A b Yc Y-Yc (Y-Yc)²2005 3,762,016 1 1 3,762,016 3338498 385,106 3,723,604 38,412 1,475,497,1092006 4,090,664 2 4 8,181,328 3338498 385,106 4,108,710 -18,046 325,658,1162007 4,454,768 3 9 13,364,304 3338498 385,106 4,493,816 -39,048 1,524,761,9232008 4,857,508 4 16 19,430,032 3338498 385,106 4,878,922 -21,414 458,576,5272009 5,304,125 5 25 26,520,625 3338498 385,106 5,264,029 40,096 1,607,721,293Total 5,392,214,968

standard deviation 32839.66

Projected Demand

YEAR a b X Yc

2010 3,338,498 385,106 65,649,13

5

2011 3,338,498 385,106 76,034,24

1

2012 3,338,498 385,106 86,419,34

7

2013 3,338,498 385,106 96,804,45

3

2014 3,338,498 385,106 107,189,56

0

Page 17: Marketing Aspect

Table 21

Statistical Parabolic(historical data)

Projected Demand

YEAR a B X C X² Yc2010 4,454,591 385,106 3 19612 9 5,786,4222011 4,454,591 385,106 4 19612 16 6,308,8152012 4,454,591 385,106 5 19612 25 6,870,4332013 4,454,591 385,106 6 19612 36 7,471,2762014 4,454,591 385,106 7 19612 49 8,111,344

Table 22

Past and Projected Demand Summary

YEARPAST

DEMAND ASL AGC SSL SPC2005 3,762,016 2006 4,090,664

YEAR Y X X² X⁴ XY X²Y A B c Yc Y-Yc (Y-Yc)²2005 3,762,016 -2 4 16 -7,524,032 15,048,064 4,454,591 385,106 19612 3,762,828.66 -813 660,4122006 4,090,664 -1 1 1 -4,090,664 4,090,664 4,454,591 385,106 19612 4,089,097.57 1,566 2,453,6982007 4,454,768 0 0 0 0 0 4,454,591 385,106 19612 4,454,591.34 177 31,2082008 4,857,508 1 1 1 4,857,508 4,857,508 4,454,591 385,106 19612 4,859,309.97 -1,802 3,247,101

2009 5,304,125 2 4 1610,608,25

0 21,216,500 4,454,591 385,106 19612 5,303,253.46 872 759,587Total 7,152,006

standard deviation 1195.99

Page 18: Marketing Aspect

2007 4,454,768 2008 4,857,508 2009 5,304,125

2010 5689652.

3 5779797 5,649,135 5,786,421.80

2011 6075179.

5 6298126 6,034,241 6,308,815.00

2012 6460706.

8 6862939 6,419,347 6,870,433.062013 6846234 7,478,405 6,804,453 7,471,275.97

2014 7231761.

3 8149065 7,189,560 8,111,343.74Std. Dev. 51182.98 191772.89 32839.66 1195.99AGR (%) 8.97 6.18 8.97 6.21 8.81

Page 19: Marketing Aspect

ANALYSIS ON PAST AND PROJECTED DEMAND LINE FITTING

In the previous page, it gives a clear visualization to

the readers on the difference of the four methods being used

in projecting the supply for five years. The line fitting

using the line graph is one of the ways in choosing the best

method of projection. Different colors of the lines show the

distinction of the four projected methods while the past

supply is also being plotted in the same figure.

There are lines in the figure which cannot be

seen clearly due to the close difference of the four methods

with regards to the standard deviation. The BLUE-VIOLET

2005 2006 2007 2008 2009 2010 2011 2012 2013 0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

LINE FITTING PAST AND PROJECTED DEMAND

Past ASL AGC SSL SPC

YEAR

SU

PP

LY

Page 20: Marketing Aspect

color signifies the flow of the projected demand using the

Statistical Parabolic Curve (SPC) which is the best method

of projection.

Based on the figure above, using visual analysis,

by just following the trend of the past as well as the four

projections, the proponents come up with a conclusion that

SPC and AGC has the most similar trend as that of the past.

But with considering the average growth rate, the

standard deviation and the Law of Conservatism, it supports

the SPC as the best and most accurate method of projection.

Page 21: Marketing Aspect

SUPPLY

A fundamental economic concept that describes the total

amount of a specific good or service that is available to

consumers is called supply. In our economic system,

resources are allocated through the exchange of goods and

services between producers and consumers. Each good or

service command a price5.

To be able to determine the supply for this study, the

proponents gathered data from the different three major

direct competitors which are Detasie, Sammyr’s Shoes and

Neikie’s Sandals. The chosen direct competitors are those

having the same product line and are located within the

vicinity of the target market.

Also, a list of competitors is provided in the

succeeding page because these competitors are part of the

competition in the shoe industry’s market and could be a

threat to the existence of the subject company in study.

The data was obtained from the different competitor

companies and were used as the basis for supply computation.

These data are the supplies for the year 2005-2009 of the

chosen three competitors.

5 www.businessdictionary.com

Page 22: Marketing Aspect

Table 23

LIST OF COMPETITORS

Detasie

Sammyr shoes

Danny’s Shoes

J’ferson Shoes

Chudray shoes

Jebiley shoes

Ariel shoes

Mary Grace footwear

Lirus shoes

Lidebeth shoes

Lady Carol

Lynette’s shoes

Melenolls shoes

JRE footwear

Kevin’s Collection

Janray’s footwear

Footwer shoemaker

Coat world shoemaker

Charkeys Shoe making

Shoes and Sandals

Neikie’s Sandals

Gyro Basics

Importers

Page 23: Marketing Aspect

Table 24

SUPPLY TABLE

Company 2005 2006 2007 2008 2009

Detasie 199,367 239,141 286,850 344,080 412,724

Sammyr’s shoes

38,403 42,436 46,892 51,816 57,257

Neikie’s Sandals

49,730 55,325 61,550 68,475 76,179

Total 287,500 336,902 395,292 464,371 546,160

Table 25

Total Population Supply

Year Supply Others Total Supply

2005 287500 1365625 1653125

2006 336902 1600285 1937187

2007 395292 1877637 2272929

2008 464371 2205763 2670134

2009 546160 2594260 3140420

Page 24: Marketing Aspect

ANALYSIS OF SUPPLY

The supply was obtained using the three major,

competitors, Detasie, Sammyr’s Shoes and Neikie’s Sandals.

The three competitors supply were determined through the

market survey. The market surveys were given to the

company’s respective competitors for us to be able to know

their supply every year from 2010-2014. Among the twenty

three competitors, these three chosen three are located

within the vicinity map of Carcar.

Page 25: Marketing Aspect

Table 26Arithmetic Straight Line Method

(historical data)

Projected ValuesYear a Yi-1 Yc

2010371824 3,140,420 3512244

2011371824 3512244 3884068

2012371824 3884068 4255891

2013371824 4255891 4627715

2014371824 4627715 4999539

Table 27

YEAR Y%inc (dec) Yi+1 1+r Yc Y-Yc (Y-Yc)²

20051,653,125 - 2,190,850 1.17 1,866,129 -213,004 45,370,685,511

YEAR Y a Y-1 Yc Y-Yc (Y-YC)²

20051,653,125 - - - - -

20061,937,187 371824 1653125 2024949 -87762 7,702,124,763

20072,272,929 371824 2024949 2396773 -123844 15,337,212,492

20082,670,134 371824 2396773 2768596 -98462 9,694,814,675

20093,140,420 371824 2768596 3140420 0 0

Total 32,734,151,930

standard deviation180925.82

Arithmetic Geometric Curve(historical data)

Page 26: Marketing Aspect

20061,937,187 17.18 2,572,074 1.17 2,190,850 -253,663 64,344,718,921

20072,272,929 17.33 3,019,635 1.17 2,572,074 -299,145 89,487,807,004

20082,670,134 17.48 3,140,420 1.04 3,019,635 -349,501 122,150,680,154

20093,140,420 17.61 - - - - -

Total 321,353,891,589

standard deviation50.68

Table 28

Statistical Straight Line(historical data)

Projected Supply

Projected Supply

YEAR Yi-1 1+r Yc2010 3,140,420 1.17 36868772011 3,686,877 1.17 43284222012 4,328,422 1.17 50816002013 5,081,600 1.17 59658372014 5,965,837 1.17 7003938

YEAR Y X X² XY a b Yc Y-Yc (Y-Yc)²

20051,653,125 1 1 1,653,125 1222498 370,754 1,593,252 59,873 3,584,824,028

20061,937,187 2 4 3,874,374 1222498 370,754 1,964,005 -26,818 719,221,215

20072,272,929 3 9 6,818,787 1222498 370,754 2,334,759 -61,830 3,822,948,900

20082,670,134 4 16 10,680,536 1222498 370,754 2,705,513 -35,379 1,251,652,414

20093,140,420 5 25 15,702,100 1222498 370,754 3,076,266 64,154 4,115,684,393

Total 13,494,330,949standard deviation 128.42

Page 27: Marketing Aspect

YEAR a b X Yc2010 1,222,498 370,754 6 34470202011 1,222,498 370,754 7 38177742012 1,222,498 370,754 8 41885282013 1,222,498 370,754 9 45592812014 1,222,498 370,754 10 4930035

Table 29

Statistical Parabolic(historical data)

YEAR Y X X² X⁴ XY X²Y a B c Yc Y-Yc (Y-Yc)²

20051,653,125 -2 4 16 -

3,306,2506,612,500 2,272,772 370,754 30994 1,655,238.89 -2,114 4,468,513

20061,937,187 -1 1 1 -

1,937,1871,937,187 2,272,772 370,754 30994 1,933,011.66 4,175 17,433,488

2007 2,272,929 0 0 0 0 0 2,272,772 370,754 30994 2,272,771.71 157 24,739

2008 2,670,134 1 1 1 2,670,134 2,670,134 2,272,772 370,754 30994 2,674,519.06 -4,385 19,228,726

2009 3,140,420 2 4 16 6,280,840 12,561,680 2,272,772 370,754 30994 3,138,253.69 2,166 4,692,918

∑ 11,673,795 10 34 3,707,537 23,781,501 45,848,383

standard deviation 3.13

Projected Supply

YEAR a b X C X² Yc2010 2,272,772 370,754 3 30994 9 3,663,976

Page 28: Marketing Aspect

2011 2,272,772 370,754 4 30994 16 4,251,6852012 2,272,772 370,754 5 30994 25 4,901,3812013 2,272,772 370,754 6 30994 36 5,613,0652014 2,272,772 370,754 7 30994 49 6,386,736

Table 30

Past and Projected Supply Summary

YEARPAST

SUPPLY ASL AGC SSL SPC2005 1,653,1252006 1,937,1872007 2,272,9292008 2,670,1342009 3,140,4202010 3512243.75 3686877 3,447,020 3,663,975.602011 3884067.5 4328422 3,817,774 4,251,684.802012 4255891.25 5081600 4,188,528 4,901,381.292013 4627715 5,965,837 4,559,281 5,613,065.062014 4999538.75 7003938 4,930,035 6,386,736.11

Std. Dev. 80,912.49 253,516.82 51,950.61 3,028.15AGR (%) 17.40 9.23 17.40 9.36 14.91

Page 29: Marketing Aspect
Page 30: Marketing Aspect

PAST AND PROJECTED SUPPLY ANALYSIS

The summary of the past and projected supply of

Khofeet’s Collections is shown above. With the use of the

four methods of projections which are: Arithmetic Straight

Line (ASL), Arithmetic Geometric Curve (AGC), Statistical

Straight Line (SSL) and Statistical Parabolic Curve (SPC),

the supply for the next five years from 2010 to 2014 is

determined.

Based on the three conditions of selecting the best

method of projection, it shows that Statistical Parabolic

Curve (SPC) excel from the rest. Compared to the four

methods of projection, SPC ranks first in the least standard

deviation, third in terms of least average growth rate, and

it ranks the second with regards to its conformance to the

Law of Conservatism. SPC wins against all the three methods

of projection based on the three conditions.

Thus, comparing to all methods of projection, it is

Statistical Parabolic Curve which yields an ideal and

realistic forecast. From this, the proponents selected SPC

as the method of projecting the future supply of KHOfeet’s

Collections.

Page 31: Marketing Aspect

LINE FITTING OF PAST AND PROJECTED SUPPLY

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

LINE FITTING PAST AND PROJECTED DEMAND

Past ASL AGC SSL SPC

YEAR

SU

PP

LY

Page 32: Marketing Aspect

ANALYSIS ON PAST AND PROJECTED SUPPLY LINE FITTING GRAPH

In the previous page, it gives a clear visualization to

the readers on the difference of the four methods being used

in projecting the supply for five years. Different colors of

the lines show the distinction of the four projected methods

while the past supply is also being plotted in the same

figure.

There are lines in the figure that are

overlapping and cannot be distincted clearly due to the

close difference of the four methods with regards to the

standard deviation. The BLUE-VIOLET color signifies the flow

of the projected demand using the Statistical Parabolic

Curve (SPC) which is the best method of projection.

Based on the figure above, using visual analysis,

by just following the trend of the past as well as the four

projections, the proponents come up with a conclusion that

SPC has the most similar trend as that of the past.

Aside from considering the average growth rate,

the standard deviation, and the Law of Conservatism, the

line fitting using the line graph is one of the ways of

choosing the best method of projection in which supports the

SPC as the best and most accurate method of projection

Page 33: Marketing Aspect

as also being describe by the rest of the ways of

determining the right method of projection.

As shown above, SPC gives more realistic

approximation of the past supply trend. So therefore SPC is

the best method of supply projection.

Page 34: Marketing Aspect

2009 MARKET SHARE COMPUTATION

Demand = 5,304,125

Supply = 3,140,420

Formula:

Market Share = (Supply/Demand) x 100

Khofeet’s Collections

Market Share = (28,080/5,304,125) x 100

= 0.53%

Detasie

Market Share = (412724/5,304,125) x 100

= 7.78%

Sammyr’s shoes

Market Share = (57,257/5,304,125) x 100

= 1.08%

2005 2006 2007 2008 20090

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

PAST DEMAND AND SUPPLY BAR GRAPH

Demand Supply

YEAR

2010 2011 2012 2013 20140

1,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

PROJECTED DEMAND AND SUPPLY BAR GRAPH

Demand Supply

YEAR

Page 35: Marketing Aspect

Neikie’s sandals

Market Share = (76,179/5,304,125) x 100

= 1.44%

UNTAPPED MARKET

Untapped Market = (5,304,125-3,140,420) x 100

5,304,125

= 40.79%

OTHERS

= 100% - (40.79%+ 1.44%+1.08%+7.78%+0.53%)

= 48.38%

Page 36: Marketing Aspect

2009 MARKET SHARE PIE-CHART

2009 Market Share

Khofeet's CollectionsDetasieSammyr’s shoesNeikie’s sandalsOthersUntapped Market

Page 37: Marketing Aspect

ANALYSIS OF PRESENT MARKET SHARE

To have a better visualization on the percentages of

the market share Khofeet’s Collections, Detasie, Sammyr’s

shoes and Neikie’s Sandals the Untapped market, and other

competitors, the values are being plotted on the pie chart.

Based on above figure, Khofeet’s Collections got a

0.53% share in the market. While Detasie, Sammyr’s Shoes and

Neikie’s Sandals got 7.78%, 1.08% and 1.44% respectively.

There is 40.79% for the untapped market and 48.38% share of

the pie for the other competitors.

Page 38: Marketing Aspect

PROPOSED MARKET SHARE COMPUTATION FOR 2011

Demand = 6,308,815.00

Supply = 4,251,685

Formula:

Market Share = (Supply/Demand) x 100

Khofeet’s Collections

Market Share = (28923/6,308,815) x 100

= 0.46%

Detasie

Market Share = (593829/6,308,815) x 100

= 9.42%

Sammyr’s shoes

Market Share = (69913/6,308,815) x 100

= 1.11%

Neikie’s sandals

Market Share = (96145/6,308,815) x 100

= 1.52%

UNTAPPED MARKET

Untapped Market = ( 6,308,815 - 4,251,685 ) x 100 6,308,815

= 32.61%

OTHERS

= 100% - (32.61%+ 1.52%+1.11%+9.42%+0.46%)

= 54.88%

Page 39: Marketing Aspect

2011 MARKET SHARE PIE-CHART

2011 Market Share

Khofeet's CollectionsDetasieSammyr’s shoesNeikie’s sandalsOthersUntapped Market

Page 40: Marketing Aspect

ANALYSIS OF PROPOSED MARKET SHARE

To have a better visualization on the percentages of

the market share Khofeet’s Collections, Detasie, Sammyr’s

Shoes, Neikie’s Sandals, the Untapped market and other

competitors, the values are being plotted on the pie chart.

Based on above figure, Khofeet’s Collections got a

0.46% share in the market. While Detasie, Sammyr’s Shoes and

Neikie’s Sandals got 9.42%, 1.11% and 1.52% respectively.

There is 32.61% for the untapped market and 54.88% share of

the pie for the other competitors.

Page 41: Marketing Aspect

AUDIT AREA: Marketing

AUDIT ITEM: Knowledge of the Market

RATING: Improvement Desirable (1.96)

I. FINDINGS:

A. STRONG POINTS

The industry sales can be protected for

the next five years.

The companies maintain and keep their

customers files.

The company is updated with the new

fashion and style of sandals in our

society.

The company’s target market penetrates

in Carcar city and provinces.

They publicized their product through

their sales representatives by

personally showing sample products to

their market.

B. WEAK POINTS

The company does not monitor and follow

market trend.

The company does not keep track and way

of all the competitors’ promotional

activities.

Page 42: Marketing Aspect

Lack of sales representatives, which

could penetrate more in their market

sales.

C. OPPORTUNITY

Forecast the demand for the next five

years

There is market penetration through Cebu

City.

D. THREATS

The company should not be able to

achieve competitive advantages.

II. RECOMMENDATION:

The company should maintain and improve

strong points.

The company must study, evaluate and

monitor their standing in the market;

the market trend and their share in the

place.

III. BENEFITS:

Better planning in the utilization of

the marketing resources.

Increase sales, which could increase the

market share of the company.

Page 43: Marketing Aspect

KNOWLEDGE OF THE MARKET

ANALYSIS:

A market is place goods and services are offered for

sales, buyers those of offerings. However, the company of a

physical trading place is no longer enough to encompass

every area where a exchange is possible. There are lots of

points of contacts between the supplier and potential

customers and all of those are part of marketing. Therefore,

it is useful to broaden the idea of a market to include the

complete market space occupied by a group of suppliers and

their customers.

The proponents rated knowledge of the market as

reasonable based on the following findings: the industry

sales can be projected for the next 5 years, and the

companies maintain and keep their customers file. They are

updated with the new fashion and style of sandals in our

society. But still, the company does not monitor keep track

and way of all the competitors’ promotional activities.

In order for the company to increase sales, which would

increase the market share of the company and better

utilization of marketing resources, the company must

maintain and improve its strong point. The company must

Page 44: Marketing Aspect

always monitor the market and improve their share in the

market place by indulging in extensive promotional

activities.

Page 45: Marketing Aspect

Audit Area: Marketing

Audit Item: Product Planning

Rating: Improvement Desirable (1.83)

I. Findings

A. Strength (s)

The company is updated with new style

and fashion of their sandals.

They are often to customer suggestion

regarding on what style/design they

needs.

The company follows new trends in the

market regarding on the products with

high demand.

B. Weakness (es)

The company’s raw materials and finished

products are not properly arranged.

C. Opportunity (ies)

The company might gain their sales.

The company has the idea on what

products.

D. Threat (s)

Regarding to their products they might

have many competitors.

Page 46: Marketing Aspect

Workers will not be reminded and

acquainted of the company’s quality

standard procedure.

II. Recommendation (s)

Maintain and improve strong points.

The company must establish a written

procedure for quality.

III. Benefit (s)

The company might gain a good reputation

as top producer of sandal product with

quality standards that satisfies

customers need.

Can attract more customers.

IV. Cost (s)

Page 47: Marketing Aspect

PRODUCT PLANNING

ANALYSIS:

Product Planning involves all the decisions a business

makes in the production and sale of its goods and services.

Which product to carry is major decision other decisions

involve product packaging, labeling and branding. This

comprises to plan on how to improve the design of the

product and find a way to satisfy the customer’s wants and

needs.

The proponents rate the company’s product planning as

improvement desirable based on the findings their raw

materials and finish products are not in proper arrangement

and we suggest having their proper storage with regards to

their raw materials and finishing products.

Page 48: Marketing Aspect

Audit Area: Marketing

Audit Item: Channel of Distribution

Rating: Improvement Desirable (2.07)

I. Findings

A. Strong Points

The company has an efficient channel of

distribution.

The company was able to penetrate the market.

Provide a display center near their factory.

B. Weakness Points

Retailers are not available or used to

distribute the company’s product.

C. Opportunities

They are able to sale products and help

promote or distribute or ultimate consumer.

The gap between the company and the target

market will be connected.

D. Propose options

Maintain and improved the strong points.

Add more sales and representatives.

Engage in trade shows inside the malls.

Page 49: Marketing Aspect

Caravan’s sale during special occasions like

fiestas and festivals.

E. Cost-Benefits

Selling of goods makes more efficient.

There will be effective distribution

coverage for sandals.

Can directly distribute their items.

Page 50: Marketing Aspect

CHANNEL OF DISTRIBUTION

ANALYSIS:

The channel distribution consists of a chain of

intermediaries, each passing the product down the chain to

the next organization, before it finally reaches the

consumer or end-user. Each of the elements in these chains

will have their own specific needs, which the producer must

take into account, along with those of the all-important

end-user.

Khofeet’s company in channel of distribution has been

rated as improvement desirable due to the following

findings. It has efficient distribution channel because of

the nature of its product. It can sell to their ultimate

consumers. Because of these, Khofeet’s company was able to

distribute their sandals only at the vicinity area that’s

why the proponents proposed that the company should go

through retailers for the distribution so that they can

cater more customers.

Page 51: Marketing Aspect

CHANNEL OF DISTRIBUTION (PRESENT)

KHOfeet’s

collections

Wholesaler

Customer

Page 52: Marketing Aspect

CHANNEL OF DISTRIBUTION (PROPOSED)

KHOfeet’s

collections

Wholesaler

Retailer

Ultimate Customer

Page 53: Marketing Aspect

AUDIT AREA: Marketing Audit

AUDIT ITEM: Sales Force Management

RATING: Improvement Necessary (1.56)

I. Findings

A. Strength(s):

No cost is incurred in managing the business to

increase its sales.

They have a sales clerk in their display center.

B. Weakness (es):

The company only waits for their customers.

Their sales clerk was lack of training on how to

handle the customers.

Doesn’t have a sales representative to its

respective areas.

C. Opportunity (ies):

Hire a sales clerk which is effective enough.

D. Threat (s):

Lots of potential buyers

Page 54: Marketing Aspect

II. Recommendations

Company should provide a sales representative.

Conduct training to their sales clerk and sales

representative.

III. Cost-Benefit

Can cater more customers.

Increase of sales.

There will be a good relationship between the

company and their business consumer.

Page 55: Marketing Aspect

AUDIT AREA: Marketing Audit

AUDIT ITEM: Customer Relations and After Sales Service

RATING: Reasonable (2.66)

I. Findings

A. Strength(s):

Target date of finishing product usually met.

The company replaced those defect products.

The company has copy/files of their customers.

B. Weakness (es):

In case of return products, there are no agreement

between the company and the customer.

C. Opportunity (ies):

Attract more customers

D. Threat (s):

Doesn’t tend to promote their product and so the

market will not aware of the product they are

producing.

Page 56: Marketing Aspect

II. Recommendations

There should be promotional tools in order to have

a relation to their customers.

There should be written or documented policies on

returned defect products.

III. Cost-Benefit

Customers’ loyalty and trust of the company and

its products.

Good relation between customer and the company.

CUSTOMER RELATIONS AND AFTER SALES MANAGEMENT

Page 57: Marketing Aspect

ANALYSIS:

Customer relationship management (CRM) is a widely-

implemented strategy for managing a company’s interactions

with customers, clients and sales prospects. It involves

using technology to organize, automate, and synchronize

business processes—principally sales activities, but also

those for marketing, customer service, and technical

support. The overall goals are to find, attract, and win new

clients, nurture and retain those the company already has,

entice former clients back into the fold, and reduce the

costs of marketing and client service.[1] Customer

relationship management describes a company-wide business

strategy including customer-interface departments as well as

other departments.[2]

___________________

http://en.wikipedia.org/wiki/Customer_Relationship_Management

Audit Area: Marketing

Audit Item: Promotion and advertisement

Page 58: Marketing Aspect

Rating: Improvement Desirable (1.32)

I. Findings

A. Strength (s)

The company saves cost because they do not

engage in any promotional program.

The company gives discount for the customers

who would buy a large volume of their

products.

The company had their displayed center for

their products.

B. Weakness (es)

The company does not engage in any

promotional program.

C. Opportunity (ies)

The company might attract more customers.

They have great chances to be recognized in

the market.

D. Threat (s)

The company is not very recognized to the

customer.

The company might loss the opportunity to be

recognized in the market.

Page 59: Marketing Aspect

More customers will transfer to other

competitors.

II. Recommendation (s)

The company should engage in any promotional

strategies to be able that their products

will be recognized in the market.

The company can promote their products in

free websites or maybe they can create their

own.

Engage in the trade shoes inside malls.

III. Benefit (s)

Can attract more potential consumers/

customers.

May recognize in the market.

Sales will be increased.

IV. Cost (s)

FREE WEBSITES

Brochure

Signboards

Newspaper

PROMOTIONS AND ADVERTISEMENT

Page 60: Marketing Aspect

ANALYSIS:

Promotion and Advertising is any form of communications

use to inform, persuade, or remind people about a business

product. Promotion is also use to improve a firm’s public

image. The TV and Radio commercial you see and hear are form

of advertisement. Advertisement serves as an encouragement

towards the consumer that would lead to the growth and

development of the organization.

Since the Khofeet’s company does not engage in any

promotional program/ tools that could somehow promotes their

products and able to recognize in the market. The

proponent’s rate for promotion and advertisement is

improvement desirable. They must engage in promotional

program for them to be recognized and this would help them

to facilitate their customers about their product.

Audit Area: Marketing

Audit Item: Packaging and Product Identification

Rating: Improvement Desirable (2.09)

Page 61: Marketing Aspect

I. Findings

A. Strength (s)

The product maintains its good quality

because of packaging.

There is an identification of product

through its size, color and stock number.

The name of the company is placed on each

finished product.

B. Weakness (es)

The product was directly placed into a

carton or box.

C. Opportunity (ies)

Easily identification of the item or

product.

The quality still remains.

Protection of the product is present.

D. Threat (s)

Page 62: Marketing Aspect

The company doesn’t use cellophane for

wrapping the product before placing it in a

carton or box.

II. Recommendation (s)

Maintain and improve strengths

The product should be wrapped with

cellophane before placing it in a carton or

box.

III. Benefit (s)

Maintaining the quality of the product.

IV. Cost (s)

Cellophane=Php45.00/100 pieces

Page 63: Marketing Aspect

Figure

Existing Packaging of the Product

PACKAGING

ANALYSIS:

The packaging component of a product refers to any

container in which it is offered for sale and on which label

is an integral part of the package and typically identifies

the product or brand, who made it, where and when it was

made, how it is to be used, and package contents and

ingredients.

For the Khofeet Shoes’ packaging and identification

labeling of the product was done properly yet there are some

area of packaging needs to be improve. The proponents

recommend the company to use cellophane to wrap the item

before putting it into a carton or box for the purpose of

maintaining the quality of the product.

Page 64: Marketing Aspect

Audit Area: Marketing

Audit Item: Pricing Scheme

Page 65: Marketing Aspect

Rating: Reasonable (2.75)

I. Findings

A. Strength (s)

The company product price is less compared

to the competitors.

The price was based on the different soles.

The company gives discounts to their

business customers who have a large number

of orders.

B. Weakness (es)

The company doesn’t have a definite mark-up

for their pricing.

C. Opportunity (ies)

Their price are very competitive and in good

quality.

More customers will be interested in buying

their product.

D. Threat (s)

There is no definite mark-up will create

loss profit for the company.

Page 66: Marketing Aspect

II. Recommendation (s)

The company should have a definite mark-up

in order to gain profit through its pricing

scheme.

III. Benefit (s)

The company will have an increase of profit.

Based on price, product becomes competitive.

PRICING SCHEME

ANALYSIS:

Page 67: Marketing Aspect

Price is the amount of money charged for a product or

service or the sum of the values consumers exchange for the

benefits of having or using the product or service.

Khofeet Company has its good pricing scheme which is very

competitive enough to their competitor. Even though they are

competitive in terms of price, yet they are not using a

standard mark-up which could help the company. That’s why

the proponents recommend the company to use a standard mark-

up for the price so that the company will have an increase

of profit.

Table 31

Prices of Sandals in different Competitors(in Peso)

SUPPLIERS Men

Female Children

Detasie 595 295 150

Sammyr 300 160 100

Neikie’s sandals 220 160 130

Page 68: Marketing Aspect

Table 32

SUMMARY OF FINDINGS

Item Proposed Options Benefits Cost

Knowledge of the Market

The company should maintain and improve strong points.

The company must study, evaluate and monitor their standing in the market; the market trend and their share in the place.

Better planning in the utilization of the marketing resources.

Increase sales, which could increase the market share of the company.

Product Planning

Maintain and improve strong points.

The company must establish a written procedure for quality.

The company might gain a good reputation as top producer of sandal product with quality standards that satisfies customers need.

Can attract more customers.

Php.

Channel of Distribution

Maintain and improved the strong points.

Add more sales and representatives.

Engage in trade shows

Selling of goods makes more efficient.

There will be effective distribution coverage for sandals.

Page 69: Marketing Aspect

inside the malls.

Caravan’s sale during special occasions like fiestas and festivals.

Can directly distribute their items.

Sales Force Management

Company should provide a sales representative.

Conduct training to their sales clerk and sales representative.

Can cater more customers.

Increase of sales. There will be a good

relationship between the company and their business consumer.

Php.

Customer Relation and After Sales

There should be promotional tools in order to have a relation to their customers.

There should be written or documented policies on returned defect products.

Customers’ loyalty and trust of the company and its products.

Good relation between customer and the company.

Promotion and Advertisement

The company should engage in any promotional strategies to be able that their products will be recognized in the

Can attract more potential consumers/ customers.

May recognize in the market.

Sales will be

Php.

Page 70: Marketing Aspect

market. The company can promote

their products in free websites or maybe they can create their own.

Engage in the trade shoes inside malls.

increased.

Pricing The company should have a definite mark-up in order to gain profit through its pricing scheme.

The company will have an increase of profit.

Based on price, product becomes competitive.

Packaging and Product Identification

Maintain and improve strengths

The product should be wrapped with cellophane before placing it in a carton or box.

Maintaining the quality of the product.

Php45.00/100 pcs.

Page 71: Marketing Aspect

Table 33Individual Ratings

# Item Rated Considerations 1st 2nd 3rd 4th Average Individual

Rating

Ratings

1 Knowledge of the marketEfficiency 1.89 1.97 1.95 1.86 1.92 Improvement

Desirable (1.96)Effectiveness 2.0 1.76 1.90 2.3 2.0Average Group Rating

2 Product PlanningDocumentation 1.9 1.72 1.8 1.82 1.81 Improvement

Desirable (1.83)Appropriateness 1.8 1.89 1.9 1.79 1.85Average Group Rating

3 Channel of DistributionEffectiveness 2.2 2.08 2.02 2.1 2.1 Improvement

Desirable (2.07)Appropriateness 2.0 2.11 2.11 1.93 2.04Average Group Rating

4 Sales Force and ManagementEffectiveness 1.5 1.6 1.78 1.72 1.5 Improvement

Necessary (1.56)Efficiency 1.7 1.62 1.59 1.52 1.61Average Group Rating

5 Customer Relations and After-Sales ServicesCourtesy 2.6 2.59 2.57 3.0 2.69 Reasonable (2.66)Performance 2.7 2.54 2.6 2.51 2.59Responsiveness 2.8 2.67 2.65 2.64 2.69

Average Group Rating

6 Advertising and Promotions

Availability 1.6 1.53 1.43 1.35 1.48 Improvement Necessary (1.32)Appropriateness 1.4 1.34 1.29 1.24 1.32

Attractiveness 1.3 1.2 1.18 1.0 1.17Average Group Rating

7 Packaging

Durability 2.0 2.46 2.1 2.3 2.22 ImprovementDesirable (2.09)Attractiveness 1.9 1.79 1.76 1.8 1.84

Appropriateness 2.2 1.76 1.98 1.87 1.95Reliability 2.4 1.89 1.98 1.95 2.06Availability of Information 2.3 2.49 2.23 2.5 2.38

Average Group Rating

8 Pricing SchemeAffordability 3.1 2.58 2.77 3.25 2.93 Reasonable (2.75)Documentation 2.6 2.54 2.59 2.54 2.57

Average Group Rating

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