picnic basket proposal edited

8/2/2019 Picnic Basket Proposal Edited

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I. EXECUTIVE SUMMARY

Picnic Room Company is a corporate entity that focused on native baskets primarily

concentrating in innovations of baskets, making it more acceptable in todays generation

of market. It never stops thinking and developing its products for delivering the needs

and wants of customers. The company creates products that will make the market

realize their needs for it even before it comes to their own minds. And it devotes it in

making the customers family activities easier and more comfortable.

Summer is approaching and Picnic Room Company respects Filipinos culture and

traditions during this season. And the most common activities Pinoy do are outings,

mountain hiking, resorts hopping, and travelling. Families desire for more bonds and

outings, those professionals crave for vacation and relaxation, friends make time to get

together and enjoy different amazing tourist destination in our country.

This marketing plan aims to form a proper and better way of planning a specific

product that will suit the market needs; it is either by a product innovation or by a new-

product development.

The passion of the business to present a well thought-out product will help them to

have properly arranged things for their outings or picnics.

I. CURRENT MARKETING SITUATION

A. Market Description

Geographic

Country: Philippines

Region: Luzon (National Capital Region)

Population Density: Urban

Season (Climate): Summer

Demographics

Age: Any

Gender: Any


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Family: Young, Married

Family or Group Members: 3-5

Income: P15000-P30000

Religion: Any

Industry: Baskets

Psychographics

Social Class: Middle

Lifestyle: Family, Groups

Activities: Outgoing (Going out: Swimming, picnics, camping, sports)

Values: Loves quality time with family & friends

Personality: Organized and Outgoing

BehavioralOccasion: Summer (Picnic, Swimming, Camping)

B. Product Review

The website everythingpicnic.com offers variety of picnic baskets. It is a

foreign product and it shows the same features for being organized. The pricing

of the products are also in dollars. Shipping is the way of distributing their

products to their buyers.

The Philippines is known as one of the manufacturers of picnic baskets.

The basket features are different from other picnic baskets that are seen in the

market today. Our companys picnic basket is for the organized persons. The

basket has compartments for different things to be brought in the picnic.

The company reviews other picnic baskets of other company. Most of the

picnic baskets are sold online. The picnic basket has its own styles, there is a

design that looks like a chicken or rooster and there is also the typical design of

the basket. Most of the baskets sold in the internet do not have cover because

this is the latest design of a basket. Since, picnic baskets are all over the world,

the pricing strategies differ from each other. The Philippine made picnic baskets

sold in the internet are priced in dollars because most of the products are

ordered by the foreigners.


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There are picnic baskets located in Quiapo, Manila which the company

reviewed. There are lots of store that offers variety of picnic baskets. The store in

the place is namely: Magsino Native Products, Filipinas Handicrafts, Int Native

Crafts and General Merchandise, and a lot more. The products they are offering

are the following: picnic baskets, coin baskets, flower baskets, fruit baskets, anda lot more. Their products are all native and every product has its own concept

and styles. There are also products like trays and other native home decorations.

The picnic baskets that are sold there are made of nito, rattan, wicker, and buri

split (combination of rattan poles and tilob fibers). The products are mostly from

the province of Pampanga which is brought in Manila to be sold. In terms of their

pricing, you can get discount of 50-100 pesos in their products.

In SM Megamall, the store Kultura and Regalong Pambahay also offers

baskets that are made from abaca, nito and wicker. The baskets are coming formVisayas. Their baskets are rectangular with handle and there are also round

baskets. There are also baskets without handle and without cover. Every

product has its own design and styles that makes it unique with each other. Since

the baskets are from Kultura, one of the stores in most SM malls, it is priced high.

In terms of buying, when you are in Quiapo you can have a discount in every

time you buy but in the mall, you can have discount if there is sale in the mall or

in the store.

The sales of picnic baskets in summer season may rise because manypeople, especially families are going out to have picnic. The baskets are salable

in any occasions but in terms of picnic baskets, there are many competitors that

can defeat the native picnic baskets which are discussed in the next part.

C. Review of Competition

The picnic basket industry in the Philippines is not as demandable

compared to other country. Since the Philippines, a third world country, only a

few would spend on this product. Most of the Filipinos are practical buyers and

would spend less on such. So as to make the product be demandable, the

product price should be flexible.

Most of the considered competitors of our product are those who advertise

online. A lot of entrepreneurs as well as companies have been investing their


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efforts on this. Many people are time-savers and would want less effort on

shopping and this is an edge of them on which our company would be planning

on. Price range from simple styled basket that costs Php 300-500, and those that

have lids, medium to large costs Php 700-5000. The competitors will include

those that are sold on mall outlets.

The following are current and prospective competitors of Picnic Room

Company. It is also stated here, the information and strategies of the said

companies.

Primary Competitors

A&R Craft Philippines (14 Natividad Street, SFDM QUEZON

CTIY)o A single proprietorship

o Local supplying, trading, subcontracting, direct

manufacturing, then later on exporting

o Belongs to the Small and Medium Enterprises of the country.

o Can handle mass production with good quality and shipment

on time.

o Complete and strictly comply with the Customer's quality

standards

o Serves and manages active foreign accounts mostly fromthe United States, North America, Canada, Paris, London,

France, Kuwait, Japan, and other Asian countries

o A Young and Energetic Manufacturer and Exporter of

Philippine Giftwares and Decorative Craft Products

specializing in the production of Novelties and Craft Items,

Christmas and Halloween decors, Packaging and Functional

products, utilizing different indigenous materials and natural

resources abundant in the country.

o Products are man-made, hand-made of natural materials

and vary slightly from piece to piece; hence tolerance points

are always expected.


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Kultura Filipino

o The largest Filipino lifestyle retail chain in the country

offering a definititve shopping experience for Philippine

culture and crafts.

o Creates world class Filipino products sold at reasonableprices.

o It evolved into a lifestyle retail store showcasing a wide

range of furniture, house wares, home decor, wearable

fashion, souvenir items and food.

o It became an affiliate of SM Incorporated.

o It is located in major mall outlets - SM Megamall, SM Makati

Annex, SM Mall of Asia Main Mall, SM North Edsa The

Block, SM Cebu North Wing, and selected department

stores.

Secondary Competitors

Coleman

o Famous and successful manufacturers of camping

equipment and outdoor recreational products.

o The Coleman Company makes what it takes to be a happy

camper.o A leading manufacturer of outdoor recreation gear, it

produces coolers, backpacks, tents, sleeping bags, air

mattresses, lanterns, grills, life vests, and floats, among

other items, which are sold under the Aerobed, Coleman,

Campingaz, Exponent, Hodgman, Mad Dog Gear, Sevylor,

and Stearns brands.

o Coleman operates sales offices and distribution facilities

worldwide and sells its products mainly through mass

merchandisers, home centers, and other retail stores, as

well as through its website and a network of about a dozen

Coleman Factory Outlet stores.

GIPICOM PLASTIC INDUSTRIES


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o The company positions itself as a supplier of high quality

BIODEGRADABLE plastic bags.

o Producing plastic products customized to the needs of its

institutional clients.

D. Review of Distribution

The Philippines is the second largest world producer of handicrafts, mainly

baskets out of indigenous materials.

Many Filipinos are engaged in handicraft businesses. Handicraft-making

has become a means of livelihood for them. Many handicraft owners are

exporting their products to Japan, United States, Canada, Australia, Hong Kong,

Singapore, and other countries around the world while many handicraft items arealso sold on the local market.

Although the industry has experienced some difficulties specially in the

shortage of raw materials in the past years, it has kept the respect of the high-

end markets in the United States, European Union, and Japan and although it

lost some of its market in China, our main competitor.

Over the years, Philippine handicrafts have evolved through innovative

changes in designs strengthen by different choices and combination ofindigenous materials. There is however still a room for improvements and

innovations which means there is still a room for the new company of people that

will enter in the industry.

II. THREATS AND OPPORTUNITIES ANALYSIS

Strength

Comes with either one or two handles for ease of carrying

The largeness afforded by BASK IT means you can pack a fine

quantity of materials, foods and assorted items for the picnic.

The basket comes with dividers that serve as compartments for the

materials which would make the basket more organize.


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The basket has a space for small coolers which would serve as

container for ice, beverages, and to maintain the temperature of cold

foods.

Coolers help keep food at ideal temperatures for long periods of time

and can help to keep food from spoiling. The materials used are of high quality and there is assurance of lasting

longer than the ordinary.

Weakness

Not all Filipinos are fond of using baskets in outings and picnic.

Some Filipinos prefer foreign made products.

Picnic baskets seem to be old fashioned.

Opportunities

Participation in basket industry which is generally quite steady in terms

of sales.

Offers an opportunity to revive the industry of rattan and the like.

The challenge of using baskets instead of plastics which is the most

common.

Threats

The entry of same product line competitors.

The industry is attractive, in part, because of its simplicity, creating an

incentive for new entrants into the market.

III. OBJECTIVES AND ISSUES

OBJECTIVES

Mission

Picnic Room Companys mission is to create the finest picnic baskets

available. We exist to attract and maintain customers. Our products and

services will exceed the expectations of our customers.


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Business Objectives:

1. To be able to apply marketing trends and updates such as:

a) Product innovation, business improvement and adopt other relevant

marketing strategies;

b) To be able to fully advertise the business using some non-

traditional campaign and;

c) To be able to conduct sales promotion campaign to be adopted for

the whole-year round.

2. To be able to provide innovative products that definitely answers and

reaches specific needs and problems.

Marketing Objectives

Increase repeat customers by 7% per quarter.

Decrease the marginal per customer acquisition costs by 8% per

year.

Financial Objectives

Profitability by the end of year one. Increase sales enough to warrant hiring an employee.

ISSUES

Picnic Room is a start-up business. Its critical issues are:

How to control the start-up expenses.

Expanding in size only when it is no longer possible to fulfill orders

of the customers. It is important to do this carefully because if the

business is expanded and demand suddenly falls, Picnic Room

could be subjected to severe financial distress.

Generate awareness and customer loyalty for repeat business and

referrals.


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IV. MARKETING STRATEGY

The company desires to create a better way to connect and communicate the

value and importance of this picnic baskets innovation.

A. Identifying the Target Market

TARGET MARKET PROFILE

Name: Sheryll M. Cruz

Age: 34

Gender: Female

Occupation: Professional

Civil Status: Married

Social Class: Upper Class C

Likes & Interests: Going out with family (picnics, vacation trips)

Name: Alejandrina G. Espinosa

Age: 42

Gender: Female

Occupation: Housewife

Civil Status: Married with 3 childrenSocial Class: Class C

Likes & Interest: Spending quality time with family and relatives (family

reunions, swimming)

Name: Joseph Rey O. Dela Paz

Age: 26

Gender: Male

Occupation: Single Professional

Civil Status: SingleSocial Status: Class B

Likes & Interest: Travelling and going out with colleagues and friends


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B. Marketing Mix

The following outlines the details of the proposed marketing mix for BasKit

products:

Product Strategy

BasKit Baskets offers high-quality picnic baskets and picnic baskets with

coolers to its customers. These baskets offer more space for customers things

such as foods, drinks, and other items that they might need for their outing like

picnic blankets and gaming materials. The other product that BasKit offers is not

only a basket but a basket with cooler. This picnic basket with cooler not just

stores food and drinks but can also preserve and make drinks cold. Picnic basket

with cooler is great for those people who brings beverages and want it to be cold

when they drink it. The product strategy of bringing a cooler inside a picnicbasket will address the problem of those individuals who bring a cooler aside

from their picnic baskets. Having a picnic basket with cooler eliminates the need

of bringing a cooler in picnics.

Another way which BasKit plans to expand its product line is to offer picnic

basket with cooler and a drawer. This drawer is great for customers who have

extra belongings such as plates, bowls, etc.

Our Product


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Distribution Strategy

BasKit Baskets primary target will be Metro Manila because it is the place

where most people have the money to buy. BasKit will be marketed through

specialty shops in Metro Manila such as SM Department Store where the

company will offer 40-45 percent discounts for handling BasKits products.

Over the next three years, BasKit seeks to expand distribution to retail

specialty shops through the nation focusing on Cebu, Davao, and Central Luzon

regions. The firm has not yet decided if it would be beneficial to sell BasKit

baskets through national chains such as Kultura Filipino and Balikbayan

Handicrafts, as these could be considered competitors.

In addition, BasKit plans to sell its products through Internet so customers

could order customized products from the stores.

Promotion Strategy

BasKit will communicate with consumers and retailers in many ways.

Information about BasKit and its products will be available via the Internet, in its

website.

The company relies with SM Department Store to establish the products in

their stores. In order for the consumers to be aware of BasKit products, the

company developed its websites where interested customers will be available tosee clearly the pictures of our products. The company also produced a brochure

featuring BasKit products that will be distribute to targeted retailers. These

brochures will be distributed to interested consumers through retailers.

Other marketing methods that require little cash and a lot of creativity are

the perfect for BasKit promotions. The company is still small but through its

creativity, it is able to implement ideas like giving discount coupons and even

giving free baskets at summer camps. The company plans to engage in the

following marketing efforts:

Sponsor a camping event in the summer.

Hold a BasKit design contest, selecting a winning slogan and logo

to be added to the customized line.


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Pricing Strategy

BasKit Company provides good quality baskets for reasonable price that

consumers can afford. The price of BasKit baskets are in the price range of

P1999-P2499. The company offers a discount of 50% for the third product if a

customer buys 2. Customers who buy at its website can use their credit card inpaying.

V. ACTION PROGRAMS

Picnic Room Company provides the action needed to meet the specified needs

of customers based on the given current situation and to deliver and implement the

stated strategies:

Making it very available on stores

Advertisements through companys active website

Creating advertisements on social networking sites such as facebook

and twitter

Exploring and entering worldwide web stores such as multiply,

sulit.com

Since this generation has been aware of the technological advancements, the

corporation decided to have a website from the time the product has been launched. It

will be handled by the advertising department with the collaboration of the marketing

department to make the system more efficient.

Another reason for this is that most of the stores here and abroad have been

using the web as another store to offer their products as well as other services.

Moreover, the site will cost lesser than putting up a lot of advertisements on tri-

media but the idea of it will not be disregarded by the company.


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VI. BUDGETS

(This is production plan and target sales for the business to continue the

operation and to launch its marketing activities)

Production/manufacturing cost:

Based on every picnic basket

Materials: Price in Peso

Wicker picnic basket P1, 200.00

Bamboo-made division 250.00

Cooler 270.00

Basket for drawer 130.00

Total Material Cost P1, 850.00

Add: Manufacturing and Transportation cost

(Including labor and taxes) 120.00

Product Cost P1, 970.00

Selling price:

Product Cost P1, 970.00Add: Mark-up 80.00

Factory Price P2, 050.00

Add: 1st hand retailers (distributors) 20.00

2nd hand retailers (stores) 30.00

Market Price P2, 100.00

Production:

(If base in monthly production and it also the target sales quota per month)

1st production:

Selling Price P2, 050.00

Multiply by: No. of pieces produced 120

Target Sales P246, 000.00

2nd production


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3

rd

productionSelling Price P2, 050.00



4th production



Target Sales P1, 968, 000.00

5th production




6th production




7th production




8th production




9th production




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10th production


Multiply by: No. of pieces produced 61440Target Sales P125, 952, 000.00

11th production




12th production

Selling Price P2, 050.00Multiply by: No. of pieces produced 245760


From the 1st production we will use P246,000.00 worth of production cost to

produce the 120 pieces (1 pieces costing P1,970.00) and after 12 th production or end of

the year, we produce 245,760 pieces that market worth of P 503,808,000.00 and the

production cost of it is P484,147,200.00. Therefore the net revenue for the year will be

P19, 660,800.00.

In the 2nd year of business operation, we will expand in Visayas particularly in

Cebu. The same process of production will apply, also in the business expansion in

Mindanao in the 3rd year.

SALES AND EXPENSES FORECAST

The Picnic Room Company monthly target sales shown above are the sales

forecast. It is a positive view of the company that the production grows monthly.

Aside from the fixed assets that the company has invested, the materials and

supplies used to make picnic baskets is part of the expenses of the company. Another

additional expense is the advertisements and sales promotion that was is written in the

4Ps. The expenses must not be higher than the sales. The expected expenses must be

10% of the revenue.


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VII.CONTROLS

Picnic Room Company makes sure that the activities of the entity are strictly

monitored. As the business continuously run, the company focuses on monitoring how it

will endure the pressure and how will it manage to handle the uncertain events that

could occur.

The following are the provided ways of the company to have a strong control on

the business itself and its performance in the market:

Has a consistent monitoring of performance from every department

particularly to the production team and marketing department. Supervises constantly services provided by the selling store where the

product is located.

Provides a clear and apparent financial report.

Monitors how the competition plays in the battlefield.

Directs properly the pricing policy.

picnic basket proposal edited

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