marketing plan for treehugger world philippines
DESCRIPTION
A marketing plan presentation and product development plan for TreeHugger World products as proposed by Team Vavavoom of the BSBA Major in Marketing Management students (section: BSBA-MM 3-1) of the Polytechnic University of the Philippines, Sta. Mesa, Manila.TRANSCRIPT
1
COMPANY BACKGROUND
TreeHugger is a brand by Fernbelly Incorporated. The company was started in 2007 as part of a
thesis requirement for the course of Business Management with a Minor in Enterprise Development at the
Ateneo De Manila. Fernbelly Inc. began in the food industry and put up stalls in malls, schools and call
centers. Afterwards it expanded the business to providing general merchandise to large corporations.
After two years the humble venture has grown to an organization that has worked with numerous local
and international media corporations, petroleum corporations, schools and even manning agencies by
providing corporate giveaways. In early 2009, they ventured into the retail sector by providing Ateneo de
Manila University and De La Salle University with LED-enhanced Message Fans while donating a
portion of the sales to each school’s respective scholarship funds. By the end of 2009, Fernbelly Inc.
became suppliers for the Global Peace Festival and the Global Peace Convention and became a part of the
GPF’s drive to raise funds for world peace and the Education of the youth in Mindanao. From Here,
Fernbelly Inc. has found its calling of balancing financial and purpose-driven concerns in all its business
ventures. In 2010, TreeHugger was born.
The TreeHugger line is comprised of quality pens and highlighters, made out of recycled cartons
and biodegradable, corn-based plastic, and pencils, made out of perma-bound recycled newspapers. They
are available at your favorite bookstores at the same price range as every other pen and pencil, which
makes the product all the more attractive since most eco-products are sold at a premium price range.
Through Haribon Foundation, every pen and pencil you buy not only decreases plastic wastes and
saves trees through the use of recycled paper and biodegradable materials, they also contribute to the
reforestation of our country through the Give a Gift Tree Drive. TreeHugger products are based on an
idea for a Nationwide Environmental Movement anchored on awareness. The goal is very simple: Give
people the power to make an improvement on our environment, while maintaining absolutely 100%
of the convenience of their daily lives.
2
TREEHUGGER PRODUCTS
THE TREEHUGGER PEN
The TreeHugger Pen is a retract-action ball pen made almost entirely
of recycled or biodegradable material. The barrel is made from
recycled carton, while the peripheral parts are made from PLA corn
plastic. The TreeHugger Pen is available in black, blue and red
colors.
Blending environmental sustainability with product quality, the
TreeHugger pen is made through manufacturing standards of a
superior caliber.
THE TREEHUGGER "I WAS A NEWSPAPER" PENCIL
The TreeHugger "I Was A Newspaper" Pencil is made from perma-
bound newspapers from all over the world. Manufactured,
using a specialized perma-binding process, each pencil made up of a
newspaper page permanently wrapped around a stick of high-
quality graphite.
This means, you can still read the articles on the newspapers used to
manufacture the pencil! Each pencil is topped off with a high-
quality eraser top.
THE TREEHUGGER 2-IN-1 HIGHLIGHTER PEN
The TreeHugger 2-in-1 Highlighter Pen is a double-sided
highlighter stick equipped with a ball-point pen on the opposite end.
Like the TreeHugger Pen, it is made almost entirely of recycled or
biodegradable material. The barrel is made from recycled carton,
while the peripheral parts are made from PLA corn plastic. The
highlighter comes in both green and yellow colors, while the ball
point end comes in standard black.
Blending environmental sustainability with product quality, the
TreeHugger pen is made through manufacturing standards of a
superior caliber.
Finally, each product sold contributes to the reforestation of the Philippine forests through Haribon
Foundation's Give a Gift Tree drive.
3
SITUATION ANALYSIS
CURRENT MARKET SITUATION
TRENDS
In 2012, writing instruments is expected to record a relatively slow volume growth of 2%, just slightly
slower compared to the volume increase in 2011. Much of the slowdown is attributed to the rise in
computer use, although sales are buoyed on the other end by the government’s move to require
kindergarten attendance beginning in 2010. Whereas kindergarten attendance used to be optional, the
Department of Education (DepEd) has issued a regulation making kindergarten a required school
programme. In 2011, the DepEd released funds for public pre-schools earlier than required, as a show of
support for the new regulation, and has also moved to make the age of entry for first grade one year
earlier, at six years old. This will allow writing instruments to exhibit only a slight decline in growth rate.
COMPETITIVE LANDSCAPE
Throughout the review period, multinational brands have remained the dominant figures in writing
instruments in the country. In fact, the only local manufacturers that have made a mark in writing
instruments are Amalgamated Specialties Corp and National Bookstore Inc, which produces its own
private labels NBS Basics and Bestbuy. These private label lines mostly focus on offering a low-priced
portfolio of writing instruments, leveraging on the strong position of National Bookstore as a top
stationers/office supply store chain across the country.
PROSPECTS
Writing instruments is expected to post a CAGR of 2% in volume terms and 4% in constant value terms.
Whilst these figures are relatively slow, industry sources agree that dynamic shifts within different
categories will be the main drivers of growth for the category.
http://www.euromonitor.com/writing-instruments-in-the-philippines/report
MARKET SHARE
HBW 2000 25%
Panda 757-RP 23%
Faber-Castel LV-5 19%
Lotus 14%
Bic 8%
Stabilo 7%
Treehugger target Share
4%
4
SWOT ANALYSIS
STRENGTHS WEAKNESSES
1. Uniqueness and creativity of the product.
2. Has a competitive quality.
3. Advocate of making eco-friendly products.
4. Consumers understand the climate crisis
and are willing to influence the behavior of
businesses through their purchasing habits.
5. The use of these products and their
production don't damage the environment.
1. Lack of brand awareness from their target
market.
2. Not properly displayed.
3. In many cases, the products are more
expensive than other regular (non-eco-
friendly) products which can discourage
some shoppers from purchasing them.
OPPORTUNITIES THREATS
1. People start to become more concerned with
the environment.
2. Eco- friendly products is one of the new
trends in the market.
3. Changing consumer preferences.
4. Market demands for cleaner and greener
environments and products.
1. Increasing number of small manufacturers of
eco-friendly products.
2. Business rivals are becoming more
competitive and aggressive.
3. Constant increase in number of competitors in
a growing market.
5
What I like about eco- friendly pens:
For a good cause 95% Earth friendly (Sort of) cheap Light weight Quality ink
-katiepenny.blogspot.com SUNDAY, MAY 15, 2011
I remember a priest once tell me that a good pen is
Always something one should have at the ready
- And not just one pen, but one in every pocket!
-http://www.environmentphilippines.com
MONDAY, OCTOBER 17, 2011
CONSUMER INSIGHT
I’m looking for the perfect partner for my future BDJ.
I’m in a mood for eco-friendly pens. What makes them
so very special is that they are super friendly
and caring to the environment.
http://luckycitrine.blogspot.com
TUESDAY, OCTOBER 11, 2011
6
COMPETITOR’S ANALYSIS
DIRECT COMPETITOR
COMPETITORS STRENGTHS WEAKNESSES
NBS Eco-friendly Pens
1. Low-cost product
2. Manufacturer’s brand
3. Materials used are fully
biodegradable and not
harmful to the
environment
1. Poor quality of products
2. Super plain packaging
3. Have a tendency to be
less functional than their
conventional
counterparts
Small Manufacturer of
Eco-Friendly Pens
1. Low-cost production
2. Available in bulk-orders
3. Uniqueness of the
product
1. Poor quality of products
2. Has no brand identity
3. Tend to be less
functional than their
conventional
counterparts
INDIRECT COMPETITOR
COMPETITORS STRENGTHS WEAKNESSES
Faber Castell
1. Consistent quality of the
product
2. Brand Awareness
3. Attractive and eye-
catching packaging of the
pen
1. Not an eco-friendly
product
2. Delicate tint- becomes
blotted when pen is
dropped
Pilot
1. Fine quality of the ink
2. Prestige that the
customers feel when
using the product
3. Have loyal users
1. High cost of the product
2. Delicate tint- becomes
blotted when pen is
dropped
3. Not an eco-friendly
product
7
MARKETING OBJECTIVES
1. To increase brand awareness of the product.
2. To increase market sales.
3. To strengthen further their advocacy of saving the environment.
4. To improve existing products to a quality that will satisfy more customers through offering a
product that suits their preferences.
5. To offer the market a different experience using eco-friendly products.
TARGET MARKET
PRIMARY TARGET MARKET
The youth, aged 10-19 years old, especially students in the 4th grade of the primary level where
kids are starting to develop a mindset.
Environmental Advocates, who eagerly supports products and activities concerning the
environment
SECONDARY TARGET MARKET
Professionals specifically office employees who basically use pens to accomplish their works.
8
The target market of the product belongs to the following social class:
SOCIAL CLASS DESCRIPTION
1. Class B
Considered as the working rich.
They made up the 10 % of the population.
Some of them are credit card holders.
They can be impulsive buyers.
They purchase product regardless of the price.
2. Class C
They belong to the Working Class
They are the largest group, for they made up
40% of the population.
They are practical buyers.
They purchase product that has quality.
3. Class D
Blue Collared Workers
They made up the 25% of the population
They buy only what they need.
Price conscious.
POSITIONING
The whole idea is that when the brand TreeHugger is mentioned two things will come to people’s
mind, overflowing creativity and nature. A brand that promotes freedom of expression that people are
most familiar of, which is doodling .Adding doodles in the packaging aims to promote the idea of
unleashing creativity, at the same time contributing in the improvement of the environment through the
purchasing of the product. Furthermore, it shall instill in the mind of the public the importance being
responsible and taking part in even small activities that would cater them the said benefits,
9
MARKETING PROGRAM AND STRATEGIES
PRODUCT
The current TreeHugger products are made out of recycled materials. The TreeHugger ball pens and
highlighters are made out of recycled cartons and biodegradable, corn-based plastic. Now, this plan will
be concentrating in the development in the packaging of TreeHugger pens, namely the Gelfriend and 2-in-
1 Highlighters.
The corn-based plastic, located in both end of the pen, comes in different colors: black, blue, yellow and
red. The barrel, which is made out of recycled cartons, where the TreeHugger logo is also placed, comes
only in plain design.
PRODUCT PACKAGING
“DOODLE”
Doodle is the art or act of making shapes, forms or pictures by creating random scribbles of lines. When
we were younger, we use to draw things that come in different shapes and sizes. The idea of adding
doodles in the packaging aims to promote the idea of unleashing our creativity, at the same time
contributing in the improvement of the environment through the purchasing of the product.
The launching of the new themes for the products aims, not only to support their Earthly advocacy, but
promote the freedom of expression in a positive way by expressing what they truly feel that will also be
beneficial to everyone.
The plain old packaging will be substituted by different doodle theme lay-outs that endorse different point
of views towards life and the environment. The doodle will vary according to what theme you chose to
support. The following will be the “Front Liner Themes” for the product:
- Love
- Peace
- Nature
- Music
Additional themes will be added, laid-out particularly, to match the incoming events of the year. These
will be called “Seasonal Themes”.
- New Year (January)
- Valentine theme (February)
- Graduation( March and April)
- Summer (May and June)
- Freedom/ Independence (June)
- Halloween Theme(November)
- Christmas( December)
10
PRODUCT LAY-OUTS
PRODUCT SIZE
“FRONT-LINER THEMES”
1
Inch
3.9
Inches
11
“SEASONAL THEMES”
The caps will also being improved. An addition of logo of the TreeHugger in the stem of the caps
will be applied illustrating a man hugging a tree trunk.
The idea of imitating a man hugging the tree in the logo is to directly send to the public the
advocacy the TreeHugger has which is, to protect the environment and defend it against pollution and
other environmental destruction.
12
13
TreeHugger products that are being sold in the market are
placed in a display rack as we can see in the illustration.
Display racks are made to protect the product that re being
display in the shelf and for the people to easily recognized
and purchased the product.
The problem with the current display stand is that
when the stand is about to be emptied, pens started to
cluttered and scattered unless a merchandiser timely check
products and rearrange it.
The proposal of a new design for the display stand is suggested. The new lay- out aims to catch the
attention of the market with its new lay-out and motivates them even more to buy and patronize the
product.
14
A divider with holes in it was added
to prevent them from being slacked when the
rack is close to being empty and to sort out the
pens according to its theme. The Front Liner
Themed pens will be placed in three lots, each
having their respective concept. The
remaining lot slot will be for the Seasonal
themed pens.
The design was inspired by their advocacy
of saving the trees. The display stand was
decorated resembling a tree to represent its
purpose to others and to the world.
15
Pricing Strategy
TreeHugger products are currently being sold at the following price range:
TreeHugger Pens
Both Gelfriend and Retractable are being sold at Php 20.00
TreeHugger “ I Was A Newspaper” Pencil
Sold at Php 20.00/pack (5 Pieces/ pack)
TreeHugger 2-in-1 Highlighter
Purchased for only Php 30.00
In the regular time of selling, Value Marketing will be used where company attempts to gain the
maximum impact by persuading them to purchase its product with a streamlined, cost-effective marketing
approach. The products are being offered at the same price range as every other pen and pencil, which
makes the product all the more attractive since most eco-products are sold at a premium price range.
During the Sponsorship Projects, there will be a reduction in the price offered or simply saying cash
discount.
Place or Distribution Channel
TreeHugger products are being sold in the following stores:
National Bookstore
PowerBooks
Fully Booked
Papemelrotti
Office Warehouse
The following outlet let the product become easily purchased and locate by the market because of its
numerous branches available nationwide. Through the following channels the product can directly be
delivered to its end users.
16
Marketing Communications
Earth Fest 2013 Sponsorship Program
Event Title: Earth Fest 2013: Sports War against Climate Change
Date: April 7, 2013 (Sunday)
Venue: Filinvest Corporate City, Alabang, Muntinlupa
Main Objective: To create brand awareness and to strengthen their advocacy.
Target Audience: Sports enthusiasts and Environmental Advocates from different organizations, clubs,
and companies, who support their advocacy against climate change and restoration of the environment.
The event was organized by Sonshine Media Network International (SMNI), together with its partner
organizations, media affiliates and companies. This is a grand event to raise funds for Sonshine
Philippines Movement’s 7 major environmental programs and initiatives that help fight the adverse
effects of climate change today. The event will feature a Fun Run, a Bicycle Race, a Mountain Bike
Event, a BMX Competition, a Street Dance Battle and a Concert Night where this year’s Environmental
Heroes will be awarded and recognized. A grand sports and health bazaar will also be setup.
This is to serve as the start-up of the overall Marketing program. TreeHugger will be one of the main
sponsors of the event. Making a connection with other Environmental Groups and by becoming one of the
sponsors of the event is one way to promote the product and at the same time being one with them in our
advocacy that is to battle it out against climate change.
The Mileage contains the following (P 150,000 - Minor Sponsor):
Large logo at the backdrop
Two times acknowledgement by the Event Hosts (per hour)
Space for Booths
Included in Press Conference
Large logo in all Promotional streamers in strategic places in Manila like schools and campuses
Large logo at the Start/Finish Ark
Large logo at in EDSA (for 1 month before the event date)
Medium-sized logo in the jersey, singlet and staff uniforms
Logo at the official website, Facebook page, twitter and online invitations
Medium-sized logo inclusion in all newspaper ads (Broadsheets and Tabloids)
15 pieces banners at the Event Area (3’x9’ vertical)
Brand Specific Activities (Pakulo)
Two times per hour TVC at the Video Wall (per hour)
“In cooperation with…” Acknowledgement in TV and Radio Plugs (2 months)
Inside events:
1. Booth- provided in the sponsorship agreement, where products can be displayed, and offered to
the market.
17
Sales Promotional Plan
TreeHugger Sponsorship Promo
The TreeHugger will conduct this promo only during sponsorship and chosen activities to motivate the
market and to introduce them to those unfamiliar consumers.
Promo Title: Make your Doodle Do Buy 2-Take 1
This is a Buy 2 Take 1 promo where the product is sold at a conditional rate. People can purchase
products (GelFriend and Retractable only) for only Php 50.00.
Sales Promo Mechanics:
This promo is available to event participants who want to purchase the product during the event.
This sales promotional plan is applicable only during sponsorship
2. Introduction of the mascot “Treenie, the Tree”
A mascot will be introduced to the public. The mascot having a friendly face aims to further
attract the mass especially its primary market, the kids.
Mural Painting
Event Title: Mural Painting: Celebrating Mother Earth’s Colorful Day
Main Objective: To create brand awareness
Target Audience: Participating Barangay
Target Date: April 22, 2013 (Earth Day)
A beautification project will be launched on the chosen barangay. The mural aims to unleash the
creativity of the market with the help of another eco-friendly product, Boysen KNOxOUT, a product of
Boysen Paint Philippines, a revolutionary paint that converts noxious air pollutants into harmless
substances in an environmentally safe process called photo catalysis.
A mural painting is conducted to help them realize the value of a clean environment and pleasant
surroundings. The participation of the barangay officials especially the SK Officials is recommended for
them to serve as the role model of their community.
18
Mural: Celebrating Mother Earth’s Colorful Day
Back to School Tour 2013
Event Title: Back to School Tour 2013: “Make Your Doodle Do”
Target Date: In time with the Annual University General Orientation
Target School and Universities:
The following schools were chosen based on their student population, included in the list with the most
number of students; and location, these are places were floods easily arises when heavy rain pours.
University of Santo Tomas
Polytechnic University of the Philippines
University of the East
Objective:
1. To create brand awareness
2. To promote the product
3. To increase sales and profit
Target Audience: Students from the said universities
Yearly, universities held orientation to welcome their students for another year and orienting the
newly enrolled students.
This project aims to introduce the product to its original target market, the youth. Introducing to them in
the most familiar way they know through the most common thing they use, which is ball pen. Making
them realize
19
Inside Events:
1. Photo booth- students can take a picture with their friends and barkadas. To make it more
memorable, they can also have a picture with “Treenie, the Tree”, making them feel again and
letting them experience the things they used to do when they were a kid.
2. Booth- where products can be displayed, and offered to the students who want to purchase the
product and be in one with the advocacy right away.
20
PROMOTIONAL MATERIALS
VISUAL METHOD
1. Posters- to be posted during Campus tours and on the different store outlets, as well.
Back to School Tour 2013: “Make Your Doodle Do” Poster lay-out
This will be the lay-put of the poster for Campus Tours. The poster is specifically design to be colorful to
attract the market and to incline the feeling of fun and funky.
21
TreeHugger “Make Your Doodle Do” Concept
2. Audio Visual Presentation- a viral video that will be posted on their social media sites such as
YouTube, Facebook and Twitter.
22
AUDIO METHOD
1. Radio Advertisement- to be aired on the following chosen radio stations
These radio stations were chosen according to the type and number of listeners.
• 90.7 Love Radio
• Magic 89.9
• 97.1 Barangay LS
• Monster Radio RX 93.1
• Tambayan 101.9
Radio Ad Script
“Every ton of recycled of materials save two-point five cubic yards of landfill space Thirty-five
percent of it are papers and eleven percent are plastics. If we can at least reuse thirty-five percent of it, we
can do a greater help to the environment. TREEHUGGER…Saving the world together.”
SOCIAL MEDIA
Through the use of Social Networking Sites, this is now considered as an effective tool to promote.
Activity updates will be posted on their accounts to further reach the market where public can access
them anytime and anywhere they like.
23
FACEBOOK PAGE
TWITER ACCOUNT
24
25
FINANCIAL (BUDGET)
MARKETING COMMUNICATION
Print Ads
Inquirer Libre
½ Page size
o 7 cols. x 15 cm = Php 48,006.00/ week (Colored)
o ( Monday to Friday) 2 months Php 384,048
Philippine Daily Inquirer
¼ Page Size
o 4 x 30 cm = Php 32,928.00 (Colored)
o ( Monday to Friday) 2 months Php 258,624
Radio Ads
Over-all Selected Radio Station
o 30 Seconds (twice a day) = Php 18,500
o Thrice a week ( 2 Months)
Php 18, 500 x 24 days = Php 444,000
o Php 444,000 x 4 Radio Stations= Php 1,776,000
TOTAL MARKETING COMMUNICATION COST PHP 2,418,672.00
MARKETING PROGRAM
Earth Fest 2013 Sponsorship Program
Sponsorship Cost Php 150, 000
Mural Painting Food for Participants
Php 250/person x 30 persons = Php 7500
Miscellaneous Fees Php 10 000
Back-to-School Tour Poster
2x 3 size Php 100/ piece x 30 pieces = Php 3000
Tarpaulin with Standee
Php 350 x 15 pieces = Php 10 500
Booth
Php 125 000(inclusive of electricity)
Sound System
Php 25 000 x 3 Events = Php 75 000
TOTAL MARKETING PROGRAM COST PHP 381 000.00
26
PRODUCTION COST (based on the skin of the Prototype)
Product Quota: 1 million pieces
Duration: 6 months
Barrel
Raw Materials Php 95,244
Printing 428,574
TOTAL Php 523,818
Cap
Raw materials 166 698
Printing 9261
TOTAL 175,959
TOTAL PRODUCTION COST PHP 699,777.00
OVERALL TOTAL COST
Total Marketing Communication cost Php 2,418,672.00 Total Marketing Program cost 381,000.00
Total Production cost 699,777.00
TOTAL: PHP 3,499,449.00