Professional Documents
Culture Documents
BA 11 F Principles of Marketing
Buttercups Apparel
Submitted By:
Ballener, April Joy A.
Lampa, Blyn Lilac Joyce M.
Macas, Lorenz B.
Pahunang, Karen G.
Pahuyo, Cyra Elloise F.
Submitted To:
Mr. Edgardo Palasan, MBA, REB, REA
Date Submitted:
February 26,2016
TABLE OF CONTENTS
I. Table of Contents
II. Executive Summary
A. Organizational Chart
III. Company Description
IV. Mission and Goals
V. Core Competencies
VI. Situation Analysis
A. Strengths
B. Weaknesses
C. Opportunities
D. Threats
VIII. Competitors
IX. Marketing Mix
A. Product Strategy
B. Distribution Strategy
C. Promotion Strategy
D. Pricing Strategy
X. Budget, Schedule, and Monitoring
A. Breakeven Analysis
XI. Recommendation
XII. Conclusion
XIII. Appendices
A. Online Survey Questionnaire
B. Survey Results
C. Survey Analysis
D. Website Statistics
E. Executives Profile
F. Executive Meeting
G. The Website
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EXECUTIVE SUMMARY
One (1) year marketing plan for Buttercups Apparel has been established by its five (5)
founders to secure additional funding for growth and to notify employees of the companys
current standing and direction. Although Buttercups Apparel was commenced only 2 months
ago, the business has experienced beyond the projected demand for its products, and research has
indicated that the target market of mostly female consumers would like to buy clothes from wellestablished online shops; online shops that has already sold a lot of products to consumers. As a
result, Buttercups Apparel would like to extend its current product, advertise it more as well as
add new kinds of products. Furthermore, the business plan is to explore more opportunities for
online sales. Over the next year, Buttercups Apparel can increase its product distribution and
sales, suggest new products and gain new customers.
ORGANIZATIONAL CHART
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COMPANY DESCRIPTION
Buttercups Apparel was founded three months ago by the entrepreneurs April Joy
Ballener, Blyn Lilac Joyce Lampa, Lorenz Macas, Karen Pahunang and CyraElloise Pahuyo. The
entrepreneurs are currently on their second year on the field of Business Management. They're
friends since First Year College who decided to form online business apparel with a unique,
affordable, and trendy fashioned tops, dresses, shorts and pants for the ladies.
Buttercups Apparel is a product of the entrepreneurs love for clothing -- especially the
trendy ones for everydays OOTD -- which started since they got into college. The company's
products have a unique style and good quality cloth. The very core objective of the company is to
sell trendy outfits with the convenience of the customers at an affordable price.
Buttercups Apparel is currently on every social media accounts -- Facebook, Twitter and
Instagram -- to give everyone the chance to visit the store on their convenient time since it is an
online store. Its unique, trendy, high quality clothes are on the top choices of their customers
ranging from ages 16 onwards.
Buttercups Apparel would like to further explore, analyze and research through having
surveys online to be able to introduce new products, widen the distribution, entering to new
markets and also to help the community.
For the succeeding years, Buttercups Apparel seeks to achieve the following financial and
nonfinancial goals:
Financial goals
1. Obtain financing to build a physical store and introduce new product lines
2. Increase revenues by at least 10 percent each year
Nonfinancial goals
3. Introduce new product lines cosmetic products and shoes
4. Build a physical store
5. Maintain the Internet website
6. Maintain strong ties with the suppliers and customers
CORE COMPETENCIES
Buttercups Apparel seeks to use its core competencies to achieve a competitive
advantage among other competitors. Buttercups Apparel would like to develop and enhance
their core competencies which are the following:
(1) Low period cost which allows reasonable prices;
(2) An unrelenting desire for the highest quality product and service;
(3) Developing strategic alliances with supplier;
(4) Forming a strong relationship among consumers, to be able to gain trust and loyalty.
The Company intends to develop and build these competencies through marketing
efforts that will increase the number of sales and by also giving consumers more variety of
product offerings.
By offering high quality product at the most affordable price and by building strong
relationship with the consumers and suppliers, Buttercups Apparel believes that those points
mentioned above can create a competitive advantage over their rivals.
Easy access of the shop through different social media accounts (Facebook, Instagram&
Twitter)
Direct contact with the sellers through phone, email and website
Convenient shopping
Weaknesses
Opportunities
The company can achieve more consumer with their website and social media accounts
Fast and easy communications through the internet and mobile phones
Threats
COMPETITORS
TARGET MARKET
The target market of Buttercups Apparel products are specifically women who
are living in Cagayan de Oro City, between ages 13-35 years old; who like and love to wear
trendy clothing, in style, and in season yet very much affordable.
MARKETING MIX
Product Strategy
Buttercups Apparel offers high-quality apparel items including cotton shirts, trendy tops,
jeans and dresses. The business has researched that that people who shop online usually
prefer website that are linked to social media sites like Facebook and Instagram. Buttercups
apparel plans to expand the product line by providing incentives to those customers who will
buy 3 or more pieces of clothing.
Distribution Strategy
Currently Buttercups Apparel is marketed through the Internet using its main website,
which is http://buttercupph.weebly.com, also with the help of social media sites like
Facebook and Instagram for promotion. The mode of distribution for Buttercups Apparel is
through meet-ups since for now; we are only targeting customers who are within Cagayan de
Oro City. Meet-ups will be depending on the agreed time and place of the customers. In
addition, Buttercups Apparel plans to increase online sales by offering discounts and freebies
to keen customers.
Promotion Strategy
Buttercups Apparel engages with its customers and retailers about its products in a
variety of ways. Information about Buttercups Apparel, the company as well as its products
is available via the internet, through the online website of the company, direct messages in
Facebook and Instagram and also in person. To compete with other online businesses in the
market, the company needs to increase the social circle hence posting and updating the
website regularly and sharing it with others would really help.
Pricing Strategy
The products of Buttercups Apparel are priced within reach of any average person.
Singular purchase usually ranges from P200-P250 depending on the item. The firm is not
concerned with setting high prices to signal luxury or prestige but we are trying to achieve
the goals of offsetting low prices by selling large quantities of products. Customers could
benefit from this kind of arrangement.
Buttercups Apparel has experienced a rather reasonable number of sales since its first
introduction 3 months ago. First month sales of P15,600 will ensure that the company stays
profitable. An increase of sales in its second month by P10,800 was a big leap and a felicity
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for the owners. While the sales of P30,200 in the third month, the company is assuring the
customers an additional of new and better clothing products for the next batches.
Units
Amount
Selling Price/Unit
P200
84.21
P16,842
Variable Cost/Unit
105
84.21
8,842
Contribution Margin
Fixed Cost
95
8000
(8000)
-o-
We need to sell 84.21 units each month in order to cover the costs. Hence, it is an advantage
if we can sell much more than 84.21 units.
December
January
Monthly Sales
February
Units
Amount
Selling Price/Unit
P200
78
P15,600
Variable Cost/Unit
105
78
8190
Contribution Margin
Fixed Cost
(8000)
(590)
95
7410
Selling Price/Unit
Variable Cost/Unit
Contribution Margin
12,540
P200
105
95
Units
Amount
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P26,400
132
13,860
Fixed Cost
(8000)
4, 540
Units
Amount
151
P30,200
151
15,855
Selling Price/Unit
Variable Cost/Unit
Contribution Margin
14,345
Fixed Cost
(8000)
6,345
P200
105
95
RECOMMENDATION
Buttercups Apparel should increase the variety of their product line in order to capture more
audience; hence, it will increase their sales.
Buttercups Apparel should widen their target market, not just focusing women but also to
men, to enhance profitability.
Buttercups Apparel should try to promote and maintain social networking structure as a way
of communicating to the audience.
Buttercups Apparel should be consistent with their service and should gather more data for
expansion purposes.
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CONCLUSION
Buttercups Apparel has successfully managed their company in their past 3 months. It is
evident in their sales analysis, using breakeven analysis method, that they have covered their
cost. Hence, we can say that their business is operating well. Buttercups Apparel has also
made a strong relationship with their suppliers and they have received positive feedbacks
from their customers and their sales have increased in every month that has passed.
APPENDICES
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(2) Sex:
Male
Female
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(3) Age:
13-17
18-22
23-27
28 above
(4) How much do you earn (or is your allowance) per week?
P200 P399
P400 P699
P700 P999
P1000 above
(5) Where do you usually buy your clothes for your OOTDs?
Malls
Online Shops
Thrift Shops
Other
(8) How much are you willing to pay for a trendy top?
P199 P299
P300 P499
P500 above
(9) Suggestion:
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SURVEY RESULTS
Sex
Male
40%
60%
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Female
Age
13-17
18-22
23-27
40%
60%
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28 above
P200 - P399
12% 16%
P400 - P699
P700 - P999
16%
P1000 above
56%
Shopping Place
Malls
24%
Online Shops
Thrift Shops
52%
24%
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Others
59%
Onhand
20%
Preorder
80%
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8%
P300 - P499
28%
P500 above
64%
SURVEY ANALYSIS
With 25 respondents who are residents of Cagayan de Oro City, we found out that those
aged between 13-22 years old are the ones who are updated with the trend in terms of
fashion. According to the results,most women prefer shopping online; while, most men prefer
shopping in the mall. While it is true that malls are preferred more than online shops, almost
all of the respondents answered that, in an online shop, they prefer onhand items than
preorder items. Its also evident that people are willing to pay something at a minimum price,
and we believe that this is because of their allowance each week.
In sum, the results of this survey will help us manifest our strategic plan as to how we
will sell our items, covering all the costs, and have a profit.
WEBSITE STATISTICS
The website statistics shows the increase and decrease of sales for the past months. The
increase here indicates that the owners have sold a high number of units due to more number
of supplies from their suppliers. While the decrease in sales indicates that the owners were
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not able to accommodate well with their customers orders due to time constraints from their
studies.
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EXECUTIVE PROFILE
Karen Pahunang
General Manager
Business Administration Student 2
Major in Marketing
Financial Manager
Major in Finance
Marketing Manager
Major in Finance
Lorenz Macas
Sales Manager
Major in Finance
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Major in Finance
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EXECUTIVE MEETINGS
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THE WEBSITE
http://buttercupph.weebly.com
Products