Chapter II

MARKETING PLAN

Marketing is a system of business activities designed to plan, price,

promote and distribute want-satisfying goods and services to present and

potential customers. It is considered as the lifeblood of every business

transactions because it is a strategic way on how to cope up to the needs and

wants of the costumers, finding opportunities regarding it, introduce and market

the product, achieve customer’s loyalty and patronage.

This chapter will show and discuss the demand, supply, demand and

supply gap, marketing strategies and projected sales.

Product Description

Maria’s Pancit Express’ products are Pancit Cabagan and Batil Patong.

These two varieties of pancit are just usually offered from their places of origin.

Based on the survey, majority of the respondents would like to try the said

varieties of pancit. The proponents would like to bring and offer Pancit Cabagan

and Batil Patong to Manaoaguenos and pilgrims.

Comparison of the Product with its Competitors

The following are the business’ competitors:

 Baloking Fastfood & Chinese Restaurant – a Cantonese restaurant

located at Manaoag. It caters noodle recipes and other dishes.

  Bamboo Coco Grill & Restaurant – A grill located at Manaoag catering

different dishes, desserts and also specializes in noodle recipes.

 Mang Inasal – Filipino fast-food chain catering chicken inasal as their main

product.

 Jollibee – Filipino fast-food chain catering spaghetti, fried chicken and

burger as their main products.

 Chowking – Chinese fast-food chain offering noodle soups, dim sum and

rice bowls with toppings.

Table 2.1

Comparison of the Product with its Competitors

Maria’s Competitors
Pancit
Express A B C D E
Pancit
Guisado, Guisado, Palabok,
Cabagan, Pancit Pancit
Varieties Canton, Canton, Lomi,
Batil Palabok Palabok
Sotanghon Sotanghon Mami
Patong
Price ₱65, ₱80 ₱120-130 ₱100-110 ₱56-90 ₱80 ₱75

Table 2.1 shows the product comparison of Maria’s Pancit Express to its

competitors. The data presented above were based on the research and

interview gathered by the proponents.

Location

Maria’s Pancit Express will be located at Megamart Manaoag Shopping

Center & Hotel Llamido St., Poblacion, near Manaoag church. The proponents
chose to situate the business inside the mall because it is accessible to our

target customers and its surrounding establishments are high schools, college,

gasoline station, canteens and town’s public market.

Market Area

Since the location of the proposed business is at the town proper, the

target customers are the household residents of the nearest four (4) barangays

of Manaoag and the devotees/pilgrims that visit the Minor Basilica.

Table 2.2

Number of Respondents

Barangays Computation No. of Respondents

Calaocan (2048/12460)*388 64
Licsi (1741/12460)*388 54
Poblacion (5764/12460)*388 180
Sapang (2901/12460)*388 90
Total 388
*Projected total population of each barangays in the year 2018
**Source Municipality of Manaoag

The proponents used the Slovin’s Formula to determine the needed

number of respondents.

Formula:

n= N

1 + (N * e2)

Where: n = the total number of respondents

N = the number of population in the area limit

e = the margin of error which is 5 %

 Solution:

N= 12,460 . = 388

1+ (12,460) (.05)2

Main Customers

Maria’s Pancit Express will be focusing on the residents of Manaoag and

the pilgrims/devotees/tourists that are visiting the Minor Basilica of Our Lady of

the Holy Rosary of Manaoag.

Demand Analysis

Table 2.3

Total Population of Barangays Calaocan, Licsi, Poblacion and Sapang

Name of 2014 2015 2016 2017 2018

Barangays

Calaocan 1841 1891 1942 1994 2048

Licsi 1565 1607 1650 1695 1741
Poblacion 5180 5320 5464 5612 5764
Sapang 2609 2679 2751 2825 2901
Total 11195 11497 11807 12126 12460
*Source: Municipality of Manaoag, Pangasinan

Table 2.3 shows the total population of Barangays Calaocan, Licsi,

Poblacion and Sapang. Shown in the table above is the total population of the

four barangays; 11,195 for 2014, 11,497 for 2015, 11,807 for 2016, 12,126 for

2017 and 12,460 for 2018.

 Table 2.4

Frequency Distribution of the Respondents as to Age

Age Frequency Percentage (%)

1-10 0 0
11-20 37 9.54
21-30 54 13.92
31-40 49 12.63
41-50 99 25.51
51-60 75 19.33
61-70 54 13.92
71-80 20 5.15
Total 388 100

Table 2.5

Frequency Distribution of Those Who Consume Pancit

Frequency Percentage (%)

Yes 364 93.81
No 24 6.19
Total 388 100

Table 2.6

Frequency Distribution of Those Who Would Like to Try and Buy Other

Varieties of Pancit

Frequency Percentage (%)

Yes 359 92.53
No 5 7.47
Total 364 100

Table 2.7

Percentage of the Respondents as to Preference of Variety

Variety Frequency Percentage (%)

 Pancit Cabagan 131 36.49
Batil Patong 228 63.51
Total 359 100

Table 2.8

Percentage of the Respondents as to Frequency of Consumption

Frequency of Consumption Frequency of Respondents Percentage

(%)
Once a week 206 57.38
Twice a week 105 29.25
Thrice a week 48 13.37
Four times a week 0 0
Total 359 100

Table 2.9

Historical Demand for Pancit Cabagan

Year Total no. of Population Historical Demand

2013 10,901 1,098,213
2014 11,195 1,127,832
2015 11,497 1,158,257
2016 11,807 1,189,487
2017 12,126 1,221,625

Table 2.10

Historical Demand for Batil Patong

Year Total no. of Population Historical Demand

2013 10,901 1,911,415
2014 11,195 1,962,965
2015 11,497 2,015,919
2016 11,807 2,070,275
2017 12,126 2,126,210
 2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2013 2014 2015 2016 2017

Pancit Cabagan Batil Patong

Figure 1. Historical Demand for Pancit Cabagan and Batil Patong

In Figure 1, it shows that the demand for Pancit Cabagan and Batil Patong

are consistently increasing. Arithmetic Straight Line Method was used for the

projection of data. From the method used, the formula used is as follows:

Average Annual Increase = (2017 Demand – 2013 Demand) / (Number of Years – 1)

Computation: (1,221,625 - 1,098,213) / (5-1) = 30,853 Pancit Cabagan

(2,126,210 - 1,911,415) / (5-1) = 53,699 Batil Patong

Table 2.11

Projected Annual Demand for Pancit Cabagan

Year Projected Demand Computation

2018 1,252,478 1,221,625+30,853
2019 1,283,331 1,252,478+30,853
2020 1,314,184 1,283,331+30,853
2021 1,345,037 1,314,184+30,853
2022 1,375,890 1,345,037+30,853
2023 1,406,743 1,375,890+30,853
 Table 2.12

Projected Annual Demand for Batil Patong

Year Projected Demand Computation

2018 2,179,909 2,126,210+53,699
2019 2,233,608 2,179,909+53,699
2020 2,287,307 2,233,608+53,699
2021 2,341,006 2,287,307+53,699
2022 2,394,705 2,341,006+53,699
2023 2,448,404 2,394,705+53,699

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2018 2019 2020 2021 2022 2023

Pancit Cabagan Batil Patong

Figure 2. Projected Demand for Pancit Cabagan and Batil Patong

 Supply Analysis

Table 2.13

Historical Supply of the Competitors

Year Competitor Competitor Competitor Competitor Competitor Historical

A B C D E Supply
2013 13,240 25,168 9,044 12,140 27,092 1,040,208
2014 13637 25923 9315 12504 27905 1,071,414
2015 14046 26701 9595 12879 28742 1,103,557
2016 14468 27502 9883 13266 29604 1,136,663
2017 14902 28327 10179 13664 30492 1,170,763

Historical Supply
1,200,000
1,170,763

1,150,000 1,136,663

1,103,557
1,100,000
1,071,414

1,050,000 1,040,208

1,000,000

950,000
2013 2014 2015 2016 2017

Historical Supply

Figure 3. Historical Supply Graph

Average Annual Increase = (2017 Supply – 2013 Supply) / (Number of Years – 1)

Computation: (1,170,763-1,040,208) / (5-1) = 32,639

 Table 2.14

Projected Supply

Years Projected Annual Supply Computation

2018 1,203,402 1,170,763+32,639

2019 1,236,041 1203402+32,639

2020 1,268,680 1236041+32,639

2021 1,301,319 1268680+32,639

2022 1,333,958 1301319+32,639

2023 1,366,597 1333958+32,639

Projected Supply Graph

1350000 1333958

1301319
1300000
1268680

1250000 1236041

1203402
1200000

1150000

1100000
2018 2019 2020 2021 2022

Projected Supply Graph

Figure 4. Projected Supply Graph

Market Shares

Table 2.15

Demand and Supply Analysis for Pancit Cabagan

Projected Projected Demand Percentage Market Share

Demand Supply Supply Unsatisfied
Gap (3)/(1)=(4)
Year -1 -2 (1)-(2)=(3) Target Percentage
Market (%)
2018 1,252,478 1,203,402 49,076 4% 29200 59%
2019 1,283,331 1,236,041 47,290 4% 29784 63%
2020 1,314,184 1,268,680 45,504 3% 30380 67%
2021 1,345,037 1,301,319 43,718 3% 30987 71%
2022 1,375,890 1,333,958 41,932 3% 31607 75%
2023 1,406,743 1,366,597 40,146 3% 32239 80%

Table 2.16

Demand and Supply Analysis for Batil Patong

Projected Projected Demand Percentage Market Share

Demand Supply Supply Unsatisfied
Gap (3)/(1)=(4)
Year -1 -2 (1)-(2)=(3) Target Percentage
Market (%)
2018 2,179,909 1,203,402 976,507 45% 80,300 8%
2019 2,233,608 1,236,041 997,567 45% 81906 8%
2020 2,287,307 1,268,680 1,018,627 45% 83544 8%
2021 2,341,006 1,301,319 1,039,687 44% 85215 8%
2022 2,394,705 1,333,958 1,060,747 44% 86919 8%
2023 2,448,404 1,366,597 1,081,807 44% 88658 8%
Selling Price

Table 2.17

Product Selling Price

Selling Price per Serving

2018 2019 2020 2021 2022
Pancit Php 65 Php 68 Php 70 Php 72 Php 75
Cabagan
Batil Php 80 Php 82 Php 84 Php 87 Php 90
Patong

Promotional Measures

The proponents will be having a promotion during the launching/opening

day. Maria’s Pancit Express will be giving gift certificates worth fifty pesos (50.00)

on the first day of operation of our business. The recipients of these certificates

will be the first 100 customers of our store. There will also be a promotion for a

customer who is celebrating his/her birthday; he/she will be given a 20% discount

on his/her total bill.

Marketing Strategies

Marketing strategy includes all activities aimed at the increase in sales

and a sustainable competitive advantage based on the selected marketing mix

that consists of 4Ps or product, price, place and promotion. A good marketing

strategy is essential to every business organization as it does not only include

measures that will provide the organization a large income but also building good

relationship with the customers.

Product Strategies
 People nowadays don’t view pancit as a dish only during festive occasions

but also as a snack, thus it will serve as a competitive advantage of the business

to penetrate to the market. The products of Maria’s Pancit Express are Pancit

Cabagan and Batil Patong. The products will be cooked in its original way in able

to maintain and preserve its authentic taste. Maria’s Pancit Express will also give

importance to its food preparation and presentation to attract customers as well

as to delight them by delivering customers safe and quality products.

Pricing Strategies

The proponents used cost plus strategy in setting the price of the

products. The computation would be:

Purchase cost + Operating cost + Mark-up = Selling Cost

Place Strategies

Maria’s Pancit Express will be located in the ground floor of Megamart

Manaoag Shopping Center & Hotel, Llamido St., Poblacion, Manaoag,

Pangasinan. The town of Manaoag is considered to be a strategic location for a

business because it is a fast-growing municipality and it caters thousands of

visitors every week because of the Minor Basilica. In line with this, there’s a big

possibility that the business’ customers will not only be the residents of Manaoag

but also the visitors and pilgrims.

There are also many establishments surrounding the location thus

providing enough accessibility to meet the needs of the target market. Moreover,

the location is near the town’s public market and other super markets where the
proponents can have easy access on raw and other materials that will be needed

for the operations.

Promotion

Maria’s Pancit Express will use posters, flyers and social media as

advertising tools to present the product and the business itself to the target

customers.

Posters will be placed in our store. The design of the poster will be able to

catch the attention of the customers because of the information provided on it.

Flyers can convey wide range of possible buyers for it can be brought to

other places. These flyers will be distributed twice a week or eight (8) times in a

month. Flyers will be given in the first three (3) months of the business until it will

get its loyal customers.

Nowadays, surfing the internet is one of the easiest ways to have quick

access. The proponents will be using social media sites such as Facebook in

order to reach wider range of possible customers. It will also provide good

communication relationship because the customers can also reach the

proponents regarding their concerns using their media page and can also give

comments and suggestions for product improvements.

Distribution

The proponents will distribute its products by selling it directly to the

customers.

Seller Consumer/Buyer
 Figure 5. Product Distribution

Marketing Budget

Table 2.15

Advertising Expenses

Particular Quantity Unit Cost Total Cost

(1) (2) (1)X (2) = (3)

Posters 50 60 3,000

Flyers 1,000 2.5 2,500

Gift Certificates 100 4 400

Total 5,900