MARKETING PLAN

PawnshopsA business that offers secured loans to

people, with items of personal property used as collateral.

Makes loans based purely on the intrinsic value of the collateral.

Lucky ZAM Pawnshopestablished since 1986 and up to date has

been one of the premiere pawnshops trusted and existing in the Lipa City.

Started by Engr. Efren Dimaculangan and Mrs. Marilou Semondac (Husband & Wife).

Started with a capital of Php 600,000.00 Located at Block 4 Simeon Luz St., Lipa City

(City Proper).

Industry Studythe number of pawnshop in operation in the

Philippines falls around 5,931 establishments and 6,177 different branches.

At Lipa City, pawnshop establishments and branches fall around 40+ in the market.

More and more pawnshop establishments are opened every year.

Industry Study• the usual customers of pawnshop

establishments are segmented based on their buying power (Demographic – C,D,E/ 18-45 years of age/on a minimum income bracket)

• The significant buying habits of the customers are usually transitional.

• In terms of growth and decline patterns of the industry, pawnshop has an ever-changing characteristic.

Industry StudyMost of the customers have peaked loaning

behavior on a season where it is usually high school and college enrollment are concerned.

Current Product/Brand SituationMarket Segmentation• The customers on the course of demographic

understanding are aged 21 and above and the usual income classification falls around type C,D and E.

• Also accommodates type A and B customers as to income classification.

Past Marketing Strategies• Building customer’s relationship and trust.• To further customer’s satisfaction, txt messages,

email message, snail mail, phoning of customers are also added to their services.

Competitive Situation• The direct competitor of Lucky ZAM Pawnshop

are the pawnshop establishments that are famous already because of advertising and promotion like Cebuana Lhuillier, Villarica, Tambuting, ML Lhuillier.

• the selling proposition of Lucky ZAM Pawnshop far grows more than advertising and promotion since what they offered was loyalty and trust to customers

• On a market entry barrier, a large proportion of wealth has to be invested in order to put up a business. Documentation and licenses has to be acquired in a lot of government offices.

SWOT AnalysisStrength• Reputation of the company has been well established

tracing back from decades of existence and pro active involvement in the community.

• The company offers flexible loan to customers as what the competitors can offer because of economies of scale and financial flexibility.

Weakness• Even years of existence, Lucky ZAM Pawnshop has not

clearly elicited branching which only isolates the area on a specific scale only.

• Lucky ZAM Pawnshop hasn’t devised other customer related activities such as Western Union, Pera padala which limits their activities in to pawnshop loaning only.

SWOT AnalysisOpportunity• An opportunity that Lucky ZAM Pawnshop can

grab is to build more trust on frequent customers as management hasn’t changed even from the start. The credibility and assurance to the customers can be considered as a front line type of investment.

Threats• The existence of newly established pawnshop

business has diminished the number of customers because of 4P’s that has been made available to them (Product, Price, Place and Promotion)

Goals and ObjectivesAs to attain maximum loans and increase

profit turnout:To assert a suitable marketing mix to attract

more customers.To present the management of Lucky ZAM

Pawnshop of the benefits of implementing the studied marketing program.

Marketing Mix Strategies and Programs

Product Development/Innovation Program• Feeding advertising tools would hence lead to more

loans as to minimize the need of branching out.• Implementing a centralized computer system that

would generate faster transaction systems enabled by proprietary software such as Accounting Information System and Database and warehousing system.

• Implementing new services such as Western Union and GCash services

Marketing Mix Strategies and ProgramsMarketing Communication Program• The possible service features applicable for Lucky

ZAM Pawnshop in terms of Advertising the establishment and services would be Newspaper clip, Commercial from a local news station, and tarpaulin and sticker materials visible to people who are in a radial diameter to the establishment.

Market Targeting• the only advent that would lead to target a new

market is when Lucky ZAM Pawnshop would plan to branch their pawnshop business into different locations, that of which would require a different approach on customer segmentation and market targeting.

Investment PlanBranching out and Widening the targeted market

segment:• the cost of implimentation would fall at Php 3,000,000.00

(does not include the cost of operation)

Product Development/Innovation Program• Php 150,000.00 – Php 300,000.00 for the said Accounting

Information System and Database Warehousing system. The price could then be lowered if the management would hire an independent systems engineer to produce the said program specific to them.

Marketing Communication Program• the cost can be estimated at Php 50,000.00 utilizing

Promotional Tools on the said proposed investment.(includes Tarpaulins which cost P800 a piece, Stickers which cost 100 a piece, and the other miscellaneous advertising materials)

Estimates of ProfitabilityLucky ZAM Pawnshop’s Yearly IncomeP 1,200,000

Estimated Increase in Profits through Advertising and Implementation of Computer softwares Yearly(Gain)

21% = P1,452,000

Estimated Increase in Profits through branching out Yearly (Gain)

80%= P2,613,000

Evaluation of ResultsIn terms of Marketing Communication:• advertising tools should be used on prior peaked

loaning time (before enrollment) to properly utilize the said benefit.

• For newspaper print and stickers, make sure that the printing company would be reliable and that the target market would clearly view the said advertisement. (For example: stickers would be posted on the passenger seat of the tricycle motors)

• The succession of timely advertisement should be detrimental to the need. As soon as the need arises, then is the time to advertise. Frequent advertisement should also be considered as it may be costly when done all the time.

Evaluation of ResultsIn terms of Product Development/Innovation

Program(implementation of Computer Systems) :• Make sure to transact only with reliable programmers that

could even help you in times that the system may malfunction

• Do prototyping first and make sure that no discrepancy would be seen from normal transactions, normally prototyping and implementation takes around a month or two

• Encourage training with the program, set dates on how to personally troubleshoot the system

• If possible do parallel implementation, which may take around 2 months to be done

• Make sure to inform government offices of the upgrade of the said transactions, usually computerized system would mean a change in official receipt which should be followed up with Bureau of Internal Revenue of the Philippines.

Evaluation of ResultsIn terms of extended services:Transact with the head office onlyAssert time for daily bank deposits and

clearances, western union offices usually transact through bank wiring.

Inform customers of the said services