Executive Summary

Sapphire wallet is a new variety of item that will be out in the market. The idea of having a character wallet is what came up in our mind because of its uniqueness and the trending characters that we thought will suit our customers taste. This new item is targeting to reach the 80% of the market size to teenagers. Our desire is to share in the market the creativity of our company and to be able to serve a new type of wallet that can satisfy the whole market structure. Another idea came to us that we must not focus on teenagers only; we provide different design, colors of felt and materials that can match the ages and personality of adults instead. So that there would be an opportunity for them to experience the trending item that we offer to market. Hence, our product will surely be enjoyed by everyone. This wallet is not the typical wallet that we used now a day, its very unique and it is made from a hard felt cloth and so it wont easily absorb dirt. The two days Marketing Bazaar was successfully ended, where the future marketer had the opportunity to show their skills, and knowledge in handling a business. During the event MAGAR de pacho successfully achieved their target sales. The company strictly followed what is written in their Marketing Plan to make their work easy. MAGAR de pacho traded their products to different location inside the campus of Holy Angel University to reach their target market and to informed the people that they offered wallet that have unique designs that they can avail at a lower price. MAGAR de pacho was able to handle the flow of their operation, because they followed the entire plan efficiently. They implement all activities with responsibility to make sure they were in the right path in achieving their objectives competently that would bring the company on the top of success.

Situation Analysis
MAGAR de pacho is now operating on its third year in the field of business, the store has been well received, and the selling now of our product is critical to its continued success and future profitability because of the continuous increase in competition. The store offers a unique and attractive item to the market that considering the design desire of our valuable customers through the personalized items we offered. MAGAR de pacho is now on developing brand positioning in the mind of consumer by offering our new product the Sapphire wallet which made of quality materials. MAGAR de pacho will focus on its selection, accessibility of product, design services, and competitive pricing. The marketing objective is to actively support continued growth and profitability through effective implementation of the strategy.

Company Background
MAGAR de pacho was founded in year 2009 in the month of February by five college girls who are fond of creating personalized gifts for their friends and families. Theyre more on giving gifts personalized because they thought that it is more valuable to give a present to someone which is personally done. With the desire to share their talent to others and to earn money at the same time is what provokes them to establish a business. A business that produces personalized items. The company was named after the founders; MAGAR is the acronym of the founders which is Marielle, Amelia, Geneva, Angelyn and Regine. And adding the word de pacho which is a Spanish word means shop. The month of February is the month where they have decided to start theyre business because they grab the opportunity that the month February is for couples and the concept that couples want to give an extraordinary gifts to special someone in an extraordinary event.

MAGAR de pacho is now operating on its third year in the industry. Purchase of goods is in front of Holy Angel University which is our main retail store. Other stores are located in different area of Pampanga. They also accept orders through phone calls or by visiting their website.

Product History
High competition in producing similar to our product is the main reason why we came up in the concept of developing a personalized items like Sapphire wallet because we realized if dont execute innovation in our product there is a possibility that would yield a lower level of demand in patronizing our product since the competition is continuing to escalate. By doing brainstorming in the group, sharing of ideas and the creativity talent of our member we actually able to make the idea concrete and furthermore by considering the changes in fondness that we experienced when we buying, we luckily capable to formulate the thought more concrete.

Market Analysis
The rapid increase of high school and college student population by 30% higher compare to the past school years who studying in the area Angeles City, it seems they are good to be our focus target market that can generate positive impact to our company. These groups of people are easy to attract by knowing their perception and behaviors in terms of buying especially the girls.

Competitive Analysis
Our direct competitors are the store located in Nepo mall who selling different kinds of item for teenagers, and even though the competition is high where we operate we take it as a opportunity to differentiate our product from other competitors instead of seeing it as a barriers to our success. We decided to use felt cloth for Sapphire wallet that serve as advantages from the

other kind of wallet because this cloth wont easily absorb dirt that can maintain the outer look of our product attractive, and the different design that we have for our customers.

SWOT ANALYSIS Strengths

Great retail space that offers flexibility with a positive and attractive atmosphere. Excellent and stable staff. High customer loyalty. Good qualities of materials used.

Weaknesses
Challenge for fast production of our item. Little access to capital. Location is not in a heavily travelled area.

Opportunities
Large number of producers like our product, allows more innovation opportunities Gives greater freedom for creativity in the design, distribution, promotion and retailing choices and processes. An opportunity to be able to satisfy the wants of our customers.

Threats
Competition can easily increase by the other store with a greater financing. Once product resources enter the market it can be easily copied by other competitors. Competition of other product item like laptop case, bags, etc. with the same materials.

OBJECTIVES Marketing Objective

The marketing objectives of MAGAR de pacho are strategically to develop a unique and attractive product that can offer in the market with the intention of creating a distinct characteristic of product. To establish wide brand recognition through the capture of our target market so as to create a diverse place in the mind of the market to enhance its brand positioning, and to sell 300 units within the first 2 days of CBA event in the market compare to other competitor with the aim of placing our company to become the top market leader in the particular segment we operate.

Financial Objective
Achieving a double-digit growth rate for each future year is the main financial objective of MAGAR de pacho. To realize a net profit of P6, 876.00 at the end of two days bazaar and to able to reduce the overhead of our store through disciplined growth and keep on to decrease the variable costs associated with personalized items production.

Target Market
a) Demographic Our target markets are the high school and college students, typically ranging in age13 to 19 years old. Now a day, teens were fonder of having their thing as personalized because of their uniqueness and attractiveness. b) Geographical Our target markets are students from Holy Angel University located in Sto. Rosario St. Angeles City. All products are distributed through our different retail store located in the area of Pampanga. c) Psychographic Because of the uniqueness of our product, customers may see it as an opportunity to give their love ones a gift perfectly made for them. Another factor that customers may perceive in our product is that they can have it as a collection because we have different character designs.

Marketing Strategies Product Strategy

MAGAR de pacho is known of having high quality material and unique personalized designs, which one of the secret assets to be able to attract customers to patronize our items, and to achieve our desire target market share. Having our own designs us able to generate a distinctive competitive advantage over to the other competitors. Description of the product The product itself has its dominant and intricately designed in unique and attractive product, made in felt cloth with different cartoon characters work at its attraction. The different creative design is held in center of wallet, to give an appeal, yet it can be both masculine and feminine look. Where in you can put cell phone, money or any small stuff. This elegant product can place anywhere at your bag or pocket. The pouches wallet has latching lids to keep stuff and cell phone organized and makes them easy to store. Product Quality Sapphire wallet is actually made with felt cloth which is in compliance with the sewing machine to ensure high quality of our items. We provide our products with durable and qualitative at reasonable prices. To ensure that each and every requirement of the product is being met we doubled the stitches to guarantee the durability.

Product level Core Benefit Customer can use it as wallet It can be a coin purse It can serve as a cell phone case also

Basic product Unique designs

Expected product Customers can expect that our product is durable It has complete packaging

Augmented product There is a freebies once a customer purchase at least 2 wallet Distinctive designs compared to competitors

Potential product Creating much affordable product and providing more unique designs. More durable products for the future.

Brand name Magar de pacho came with distinctive brand name which is sapphire. Sapphire is a Latin word meaning most beautiful of things. We believe that our brand name represent our products on how the beauty and unique of it. By this name we believe that it can catch the attention of the customer.

Packaging Package our product with clear ordinary plastic that has our logo outside the plastic. It can easily to store and get the product and can protect from possible damages. Our package has convey what this product is about and the brand constantly look to use packaging in new and unique marketing ways that serves to us to use in powerful selling tool.

Label Our wallet is made up from a cloth called felt cloth. Felt cloth doesnt easily absorb dirt and it has variety of colors to make it colorful and attractive. Every wallet is

designed with different characters and we also have a collective wallet. The collective wallet is designed with different shade of ribbon and buttons.

Pricing Strategy
MAGAR de pacho is well known in producing variety of wallet like sapphire and character wallet which has distinct characteristic compare to the other producers. Sapphire wallet will cost for P40 and if you are the 50 first buyers who buy two you can get a free one. And P50 for our character wallet which is really affordable whoever patronize. Our company is not concern with setting high prices to gain high profit, but to achieve our goal by setting low prices but with high qualities of our product, so that our customer will satisfy. Magar de pacho is actually using maximum market share pricing strategy because we believe that if we able to produce higher production level it would lead it to generate much lower cost in terms of production. In this strategy we will able to sell our product in a lower price but with higher value that can surely benefit our customers. COST OF PRODUCTION Raw material 25 yards of felt cloth Cannon CRCHT 175m 48 yards ribbon 300pcs. Assorted buttons Packaging Logo printing DMC CRCHT Moving Eyes Needle Pagoda Folder Pattern Total Cost (Raw materials) Labor Cost of Collective wallet (P10 per unit) Labor Cost of Character wallet (P15 per unit) Total Cost Unit Cost (P8, 274.00 / 300 Pieces) = P27.58 Markup Pricing Collective wallet (27.58 x 1.47%) = P40.00 Character wallet (27.58 x 1.80%) = P50.00

P3,048.00 135.00 344.00 250.00 150.00 180.00 51.00 30.00 10.00 76.00 P4,274.00 1,000.00 3,000.00 P8,274.00

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Distribution Strategies Place

Sapphire wallet will be distributed through independent retail store. Our store is located in front of Holy Angel University where we can reach our customer specially the students studying there particularly the teenagers high school and college student. Our customer will surely enjoy visiting the location of MAGAR de pacho because of its designed that we based in the perception of teenagers about the colors, and designs that can normally attract their eyes and providing a large space that suitable for them when they visit our store. We also accepting phone orders (0935-423-0534 or 045 332-4358) and they can avail our product by placing their order through the use of internet by visiting our website (MAGARdepacho.com).

Promotional Strategies
Through direct selling to promote the uniqueness of our product is the first strategy that we will going to use to advertise our product in the market, and by using the internet to broadcast to the worldwide our creation, by tarpaulin so that customers may see our very unique creation, and lastly by going to our website that giving information about our company, the product we offer, the process how to avail our items, and the available promo that we have like giving a free limited little wallet for those first 50 person who can buy 2 pieces of our items. Use of sample which would be distributed in school/universities and supermarket that give a chance to avail our product in a lower price to able to know the reaction of our customer in terms of the design, colors, and materials we used to hear their suggestion and comment.

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Control
When in the actual bazaar and unfortunately we been not able to attract a lot of customer to purchase our product, then we will be deciding to do price decrease of 30% for the Collective Wallet which is from P40.00 to P35.00 and another 30% also for the Character Wallet which is from P50.00 to P40.00 until to the extent we dont earn net loss. If after the bazaar we were not able to sell all our products and since our product is not a food we will sell it outside the campus so that we will able to get back the capital we spend and to prevent losses in our part.

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Timetable of Activities
DATE ACTIVITIES PERSON IN CHARGE
July 27, 2012 August 22, 2012 Product conceptualization Product sampling The Group The Group

August 29,2012

Procurement of raw materials Submission of 1st draft, part I

Angie and Marielle

September 4, 2012

The Group

September 2-10, 2012 September 13-14,2012

Production of products Bazaar

The Group The Group

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Financials Part I

Projected Income Statement for Sept 13-14, 2012

SALES Character wallet (150pcs x 50) Collective wallet (150pcs x 40) COST OF GOODS SOLD ( 300pcs x 21.71) PROFIT LESS: EXPENSES ADVERTISING EXP (TARP) TRANSPORATATION EXP MISCELLANEOUS EXP (OTHERS) 250 150 250 P7,500 6,000 6,513 P 6,987

NET PROFIT

P 6,337

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IMPLEMENTATION
Product In the actual bazaar we absolutely complied with the specification of the product based on what we write in our marketing plan to make our work easy, so that we can properly handle the flow of our operation. During the event, our customers usually asked if we really made our product, and although we have competitor who offered same product in the bazaar we were able to captured our target market because of the several unique designs that we have. Buyers were focused on product quality, price, and different product designs which made us an asset for our goods to be sold promptly and we can declare that these things helps a lot to catch the attention of the potential buyers that our prospect. Price Consumers' opinion about pricing is important for us as it indicates how they value what they are looking for as well as what they want to pay. Our group decided to set our price based on the survey we took, which are Php40 and Php50. On our first day we followed the price indicated in the plan but during second day when we only having 2 hours left to sell our product we decided to offered buy two and get one free, and then buy1 take1, since we all know that we already achieved our target sales of P 10,000 two days and because we want to achieve our goal to sell all our product before the two days period given by our professor. The group decided to make some adjustment on our pricing strategy that persuaded the market to buy more because of our low price, thats why our products were all sold.

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Place During the two days bazaar we not only traded our product in the designated venue that they assigned, we decided to distribute our products in different locations inside the campus of Holy Angel University like in yellow canteen, pre-elem building, and in smh building where the high school are so that we can reach our target market. And it became more advantaged for our group to offered directly our product to customer than to wait to the customer to visit our booth because in that way we able to informed the people there that dont want to go outside their room that we offered wallet that have unique designs that they can avail at a lower price. Getting the right product to the right place at the right time create perfect distribution for us.

Promotion

Magar de pacho offer a freebie for the first 50 buyers which serve as an advantage to promote the product. It is our primary selling tool to accomplish our target aim. We also offer Buy One Get One Free where customers were encouraged to buy more; we decided to do it in our second day because in that time we were only having 2 hours left to sell our product and since we all know that we already attained our target sales for two days of P 10,000. We post our tarpaulin a day before in different location, it is our way to aware of the existence and availability of the product. Our promotional strategy provides information that assists the customers in making a decision to purchase our product. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables our group to develop and build up a succession.

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Learnings Marketing Bazaar was an amazing way to learn the real experience of being marketers for two days. With that event we were able to learn how to handle a business, how to use the different tactics in pricing and the most important is how to deal with our customers properly. We learned that business is all about managing your goods, taking care of your responsibility and the most important the accountability at the end of the bazaar. Through bazaar we also learned that earning money is not as easy as we expected. It is full of risk and as a team we experienced it because during the bazaar we have to promote our product and weve had a hard time doing it since before we dont really knew how to communicate our product to our target market. Before we were just customers and ignore the vendors in some malls, and now we are the one to do it and it feels like we are embarrassed because this time we are the one being ignored. From then we realize that we must appreciate the work of the sales ladies because its not that easy. As a group we need to improve our communication skills and improve our product by providing more personalized design and providing more freebies because the freebies is one factor that attracts our customers, and we need more preparation in organizing our booth. In order to reach our goals we need to follow our entire plan, and implement each activity with responsibility to be able to make sure that we can achieve our objectives in the right way.

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Recommendation Entering the industry is the feeling of anxious and excitement at the same time. Anxious because you feel like the product that you offer in the market might not hit it off and youll go home very exhausted yet the products were not sold out. Excitement because the fact that it is the first time that we manage our own business and we produced our own product. While we were in the industry we dont mind what other people say, whether we are very aggressive to earn money or whatever. The thing is that you enter the industry and you have the opportunity to give all the best that you can, so grab it! Cause at the end of the day when you didnt do it all, youll be the one to suffer because you were not able to practice it before. Another thing is that be kind to your customers, as the same saying goes customers are always right treat customers like kings and queens. If they have some demands let it be, because they are your primary stakeholders and they can have a big impact on your organization or team. And as a manager you have to be optimistic! Whatever plan you have in mind, you have to think that it will buzz to your customers dont ever think that it wont cause there can be a psychological effect on you and your product. Dont ever let negative vibes come in.

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Income Statement for Sept 13-14, 2012

Financial Part II

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SALES (character/collective wallet) COST OF GOODS SOLD (300x21.71) PROFIT LESS EXPENSES ADVERTISING EXP (TARP) TRANSPORTATION EXP MISCELLANEOUS EXP

P 12,480 6,513 5,967

250 150 250

NET PROFIT

P5,317

MAGAR de pacho attained the total sales of P12, 480 during the 2 day bazaar, which the company was successfully achieved their projected sales of P10, 000. The company totally spent P 650 for the advertising, transportation, and miscellaneous expenses in launching the product during the Marketing Bazaar and generates a net profit P 5, 317 at the end of the event.

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TARGET SALES PER MONTH Of Character Wallet

Month JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL

PROBABILITY (%) 150% 200% 100% 100% 100% 100% 100% 100% *100% 100% 100% 200%

QUANTITY (PCS) 6750 9000 4500 4500 4500 4500 4500 4500 4500 4500 4500 9000

PRICE (P) 50 50 50 50 50 50 50 50 50 50 50 50

SALES/MONTH (P) 337,500.00 450,000.00 225,000.00 225,000.00 225,000.00 225,000.00 225,000.00 225,000.00 225,000.00 225,000.00 225,000.00 450,000.00 PhP3,262,500.00

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Month

PROBABILITY (%)

QUANTITY (PCS)

PRICE (P)

SALES/MONTH (P)

JANUARY FEBRUARY

150% 200%

6750 9000

40 40

270,000.00 360,000.00

TARGET SALES PER MONTH Of Collective Wallet

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MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL

100% 100% 100% 100% 100% 100% *100% 100% 100% 200%

4500 4500 4500 4500 4500 4500 4500 4500 4500 9000

40 40 40 40 40 40 40 40 40 40

180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 360,000.00 PhP2,610,000.00

MAGAR de pacho launch its product in the market at the month of September which has 100% probability of sales, with the total quantity of 9000 pieces combination of collective and character wallet. In the month of December the company probability increases to 200% due to the people who are starting to buy Christmas gifts for their family and friends. Followed by 150% at the month of January and then 200% again at the month of heart February, while for the ordinary months the company have as a minimum 100% probability of the product.

Projected Income Statement for the year ended 2013

SALES Character wallet Collective wallet COST OF GOODS SOLD (43.42% of Sales)

P3,262,500 2,610,000 2,549,839.5

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PROFIT LESS: EXPENSES RENT EXP (6000/month) ADVERTISING EXP (1% of Sales) TRANSPORATATION EXP (600/month) MISCELLANEOUS EXP (OTHERS) SALARIES AND WAGES (24,000/month) NET PROFIT BEFORE TAXES

P 3,322,660.5

72,000 58,725 7,200 12,000 288,000 P 2,884,735.5

The projected sales of MAGAR de pacho for the year of 2013 are P 3,262,500 while the cost of goods sold is 43.42% of sales. The company total expenditures for the year ended are P 437,925 consisting of rental, advertising, transportation, miscellaneous, and salaries expense. MAGAR de pacho projected income for one year operation is P 2,884,735.5.

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