OLIVAREZ COLLEGEGRADUATE SCHOOL1st Semester S.Y. 2013-2014

Marketing Plan

Submitted to:Dr. Anabelle Bughao-Jamin

Submitted by:Abelyn C. Bugayong

EXECUTIVE SUMMARY:Ham and Herbs is a food enterprise created by a Licensed Nutritionist Dietitian who envisions an opportunity to develop a unique product and in search for independence and economic growth in terms of employment for high school graduates who are out school and hone their skills in Entrepreneurship. While this vision started with solid ideas to form a new venture on home business, the founder is confident that from having long years of educating and providing skills to different types of people on Food Preservation, it is now necessary to transform these ideasABOUT THE PRODUCT: For a small business like this Ham product its uniqueness in taste coupled with the use of high quality medicinal herbs and spices that aids in speeding digestion, relieves flatulence, good in nervous disorder, high- in calcium and is a natural antiseptic is rather new in the market. Culinary herbs and spices are the main ingredients chosen by the founder for the reason that such flavors delight the palate, dances in the taste buds and because its color represents health. A great majority of respondents or 80% of them that will surely patronize the product are not aware of the blending of herbs and spices not only taste good but with the use of such plants which has natural sodium properties which becomes the salt substitute. The permissible levels of curing salt that was used as preservative in approximately 1/16 tsp. or less than 2 gms/ 10 kilos of meat. Adding such to the food product prevents Clostridium botulism, bacteria that can kill a human being when ingested. Having curing salt in the meat product not only gives meat a reddish hue color but it also creates a distinct flavour. Despite the benefits of Nitrite (curing salt) when these compound are heated and combined with acidic stomach juices they may form nitrosamine compounds which are found to be carcinogenic. The use of different herbs and spices counteract the reaction of nitrite compound in the stomach by way of encouraging better production of balanced and sufficient gastric juices, harmonize food combinations and fight out toxic foods. Surprisingly, Nitrite is also formed in the body and is found naturally in vegetables like cabbage, cauliflower, carrots, celery, lettuce, radishes, beets and spinach. TARGET MARKET: Taste the intimate blend of flavors The new food enterprise is offering to the public the unique taste of its Ham and Herbs product. Unlike the traditional ham product that was found salty and dry, our product uses aromatic vegetable substitutes to increase zest and improve the flavor of the cured meat. This ham product is offered all year round to all customers at an affordable price. MANAGEMENT: Behind Ham and Herbs management are of food preservation experts and trained professionals from the government who seeks livelihood activities for income augmentation as well as mothers in the community for livelihood projects in order to increase food purchasing power of their families. Abelyn C. Bugayong, Founder and Owner, has been in the community service as Head of Public Health Nutrition for twenty six (26) years in the Government of Paranaque. Her experience providing consultancy services to small businesses engaged in food processing inspired the formation of this food enterprise. Alfredo C. Bayudan, The companion for twenty seven (27) years of the founder, who currently functions as an experienced product development enthusiast. Christine Marie A. Lara, a fellow Nutritionist Dietitian of the founder, who has been her critique, product analyst for the past twenty five years and serves as her financial adviser. ORGANIZATIONAL STRUCTURE:

FINANCIAL SUMMARY: The market for Ham and Herbs food enterprise is enormous with a population of 46, 700 the estimated number of households is 9,340. Initially, the three founding members intend to work part time on this venture while maintaining a full-time job in their present post. We determine how best to enlarge our operation by considering expanding the food business into a medium scale company.

KEYS TO SUCCESS: Uniqueness of the ProductThe Ham and Herbs food enterprise focuses on the uniqueness of its product and maximizes its potential for success. The blending of different herbs and spices which creates a distinct taste separates us from the traditional taste the food consumers experience when eating ham by:(1) Focusing on blending Herbs and Spices. Our Mission is to be consistent on the overall palatability of the product and become the leading brand in Paranaque City. (2) Keeping the Food Product clean and Safe to eat. Through the use of fresh meat, as well as to the use of safe ingredients that are within the permissible levels set by the Food and Drug Administration. Lastly, by proper handling of raw materials during processing of the meat.(3) The ham product demands to be of high quality, prepared in hygienic ways and yet affordable in price.OBJECTIVES: The Food Enterprise has a small capital compared to the giant competitors, but the uniqueness of the product in the world of small business like this plays a significant chance to become the best quality ham with a number of potential clients in the city. BUSINESS DESCRIPTION: Ham and Herbs food enterprise is a new business that responds to the clients need for a different taste of ham product. The innovative use of Herbs and Spices in the meat product that surely creates a distinct taste and aroma are now the preferred taste of the consumer as reflected in the results of the survey. COMPANY ANALYSIS: The Food Enterprise has identified the real business opportunity of producing a product which possesses a strong taste, safe to eat and not costly (within the budget of average income earners) SWOT ANALYSIS: Below, are the identified opportunities and threats in the environment, as well as the particular strengths and weaknesses of the food enterprise that will either hinder or enable us to succeedThe Food Enterprise have identified and analysed the market and believes that real opportunity exist to provide services to different sectors of the society and enables it to favorably compete in the market.The following diagram summarizes how the SWOT ANALYSIS defines the Key Success Factors of the market and distinctive competencies of the Food Enterprises. It weaknesses are addressable and it will be improved over time.

STRENGTHS WEAKNESSES

Small business focus High Quality of ingredients Safe to eat Available all year round Affordability Possesses medicinal properties of Herb and Spices used Founder working full time in Government office Few people initially limit serviceable market Seasonality of Ham product Popularity of the product Building reputation requires funding

OPPORTUNITIESTHREATS

Increase value of sales during holiday season Provides employment Growth of local community Focus on Profit Established and well- funded competitors Small budget for operation cost Inflationary factors of raw materials Proliferation of different supermarket offering use of credit cards

DISTINCTIVE COMPETITORS KEY SUCESS FEATURES

Large company or Leading Brand Skills Using technology (machineries) for mass production results to unemployment. Minimal fixed costs which allow us to keep prices low while remaining profitable Small business focus Local presence in major market Core strengths in marketing/ strategy Maximize production over minimize cost

MARKET PLANNING and ANALYSIS: Deciding how to present such innovative ideas to the market is critical. However, since the founder is known within the vicinity of the targeted market area, the profession itself can vouch and its maker, There are a small group of people belonging to economically disadvantaged families but a large percentage of families who resides in the area encompass the market. MARKET SEGMENTATION: Environmental FactorsThe following factors define the environment in which Food Enterprise hopes to succeed:(1) PHYSICAL- A different food business proliferates in the target market everyday(2) LEGAL- The creation of the limited liability for a small food enterprise should be observed (3) ECONOMIC- Current economic conditions are continuing to challenge the investors views regarding potential return on investment (4) SOCIAL- Socio-cultural patterns such as life style, values, and beliefs are changing more quickly. The food enterprise must be seen on the current trends of the external environment,(5) TECHNOLOGY- It has a tremendous impact on our own life-styles, our consumption pattern and economic well- being. The food enterprise having injected herbs and spices in their meat product gives the innovative idea on edge over traditional ham produced by Big Companies. MARKET ANALYSIS:

Target Market Segment StrategyThe target market is defined by the customer wants and needs that creates the market, such as Buyer Power, threat of conventional competitors (these firms have established reputation), supplier power, threat of substitute (capitalist could engage in more advertisement on their product)

MARKET GROWTHAt Barangay San Antonio, having a population of 46, 700/ 9,340 households, the proliferation of different supermarket does not bar the customers from patronizing the public market where most of the commodities are found fresh and can be bought at minimal cost/ small grams or packed. The strategy and availability of the market is the segment for any food commodity where customers flock during Saturday and Sundays. Market Size- is an important factor; it does help to ensure that there will be initial customers available to patronize the product.Potential Profit- the potential for profit in the Ham business is high, based on the overwhelming number of would-be clients versus the size of the market with limited offers of homemade food products, likely any competitor can fair in the market in the near future.VALUE PROPOSITION: For small and emerging business like the Ham product, the food enterprise focuses on small production unlike the traditional ham that we used to eat thereby giving its best in the quality of the ham without sacrificing its affordability.

Marketing Strategies:Pricing StrategyHigh quality product and yet affordable price will be offered to the customers. Our product has a lower price compared to leading brand because it is a home based business no capital needed, the kitchen of the owner serves as its production unit, where equipment and utensils can be found too. Pricing structure of production men (3) will be based on P50/2 Kilo of meat they injected and tie. A total of P150 kilos/ week of cured product are the expected output of the group. FINANCIAL ASPECTInitial Capital requiredPork (Pique/ Kasim)P 180.00/ KiloCuring SolutionP 240.00/ PackIngredient for dry mixtureP 120.00Herbs and SpicesP 100.00Pineapple JuiceP 47.00/ CanCost and return analysis of curing a 10 kg Batch of ItemEstimated IncomeTotal Yield of 12.5 kg HamP 700.00/ kiloOr selling price of Less Estimated ExpensesPork (10kg) (180.00/kilo)P 1,800.00/ 10 kilosCost of IngredientsP 507.00ToolsP 680.00Packaging and LabellingP 1000.00Contingency (18%)P 717.00P 4717.00Total ExpensesUnit CostP 471.00Mark Up= Rate x Unit Cost = 50% x P 471.00Selling Price = P 706.50/Kilo

Promotion StrategyHanging of Tarpaulin in front of the house of owner will be the initial information dissemination campaign. Distribution of fliers among office mates and to the different offices of the City Hall will be done in order to create awareness of the new product available at the local market. Distribution StrategyIt is anticipated by the owner that during period less production will be made as these coincide with the demand. First come First serve policy will be observed. Placing of orders should be made two (2) days ahead prior to pick up of foodstuff.

DISTRIBUTION CHANNEL

Suppliers

H and H production Unit

Retailers/ Customers

PRODUCT FLOW CHART

Inject into meat 100cc pumping solution/1 kilo

Rub all over the surface with dry mixture

Put in a plastic container with cover. And place in a well-ventilated room in 3 days without refrigerator or in middle part of the refrigerator if one week ham is desired.

Cooking of cured meatFINANCIAL FORECASTINGPhp. Kg175,000

140,000

105,000

70,000

35,000

0

SOCIAL ASPECT:The future of Ham and Herbs Food Enterprise will depend on how consumers patronize the product. If in the event the company thrived and turn out to be a success. The owner plans to allocate (5%) of its earnings to help the marginalized group specifically by setting up a feeding program for undernourished mother and children ages (6-12 mos.) until such time these group reach their normal nutritional status, or to be fully rehabilitated after a span of 6 months. After which, another batch of malnourished children will be prioritized those belonging to below normal to very low group. Food Supplementation Program will start at Barangay San Antonio Valley 1.CONCLUSION: Having an affirmative feedback amongst respondents as regards to the ham product, the founder as a Licensed Nutritionist- Dietitian in a government institution spanning three (3) decades is now excited to endeavour into the world of food business. That being said, the founder is fully aware that a novice business enterprise as such will surely face stiff competition against the leading and giant competitors like Pure foods, CDO etc. Though that may be the case, the founder assures the consumers that by giving her best concerning the science and art of food business it will enable the food enterprise to have that competitive edge against the Giant Brands.