Cabiles, Juvylyn

Miñoza, Christopher
Ramos, Aldrin
Silva, Bianca
Villar, Brigette Joy

PRODUCT MANAGEMENT
TARGET MARKET

CAMIRASIVI is offering Splendor 3-in-1 shoe shiner. It will focus its marketing
activities on reaching the students, employees, and head of the family in City of Santa
Rosa, Laguna that are most likely to buy and use shoe shiner. Since almost everyone
uses leather shoes, there will be bigger target market for Splendor 3-in-1 but the
company will focus on the target segmentation below:

• Students - These are the children and teenagers who uses black shoes or leather
shoes, probably in the age of 7-24 years old. Included in this age bracket are
elementary, high school, and college students, male and female, with parents working
and supporting their finances.

• Employees - These are the ones who uses black or leather shoes for their work, such
as office workers, with an income of more or less P8000, ages 24 above, male and
female.

• Head of the family / Parents - These are people who wanted safe and better shoe-
shiner for their family. Since Splendor 3-in-1 is non-toxic, parents or head of the family
will be encouraged to buy the said product. These can be anyone who supports finance
of family or anyone who has children that are users of shoe shiners.

The following shows the total number of students and households in Santa Rosa City,
Laguna:

City of Santa Rosa (2012)

7-9 y/o 10-14 y/o 1 5 - 1 9 y / o 20-24 y/o
School-Age Population 16 824 2 6 6 8 6 2 6 9 9 1 3 1 5 7 5
T o t a l 102 056
source: santarosacity.gov.ph
 CAMIRASIVI will also have the retailers in Santa Rosa City as its target market
since it will be using level 0 and 1 for its distribution channel.

• Retailers (Essential) - these are retailers that sell necessary things needed in everyday
life such as food, water, and other household needs.

• Retailers (Non-essential) - retailers that sell things that are not needed to be bought
everyday, since Splendor 3-in-1 can be purchased once a month, it can be sold by
these retailers.

Below is the total number of retailers in City of Santa Rosa, Laguna on the year 2012:

R e t a i l e r s 2 0 1 2

E s s e n t i a l 4 8 3

N o n - e s s e n t i a l 9 0 0

T o t a l 1 3 8 3

source: santarosacity.gov.ph
COMMUNICATION PLAN

CAMIRASIVI presents Splendor 3-in-1, an all-in-one shoe polish in town. The

product’s tagline, ‘’Will shine your shoes from door-to-door, that indicates that your
shoes will have long-lasting shine from your home to either your school , your office or
simply your shoes will maintain the shine from one place to another when you apply the
Splendor 3-in-1.

CAMIRASIVI will use posters

and give away flyers where they can
see the unique benefit of the shoe
shiner. Flyers will be given to
potential customers and posters are
being used in public demonstrations
and may also be given to potential
retailers who will sell the product.
Because many people are involved
in online world, the company will
use the social networking sites like
Instagram, Twitter and creating a
page on Facebook so we can easily
reach out our target customers.

Music can add joy and excitement to the product and its appeal. Through music
we can raise awareness to many people about our product. CAMIRASIVI come up in
composing a song. This will be played on our public demonstrations. The song
introduces Splendor 3-in-1 and its lyrics convey the benefits of the product. The song
presents the Splendor 3-in-1 shoe shiner and the tagline on the first stanza with the
unique benefit of being all-on-one with a shoe polish, a brush and a cloth in a handy
container. On the second stanza, being non-toxic and natural of the shoe shiner, the
long-lasting shine and the effectiveness of Splendor 3-in-1 for an affordable price are
being mentioned.
 CAMIRASIVI will also conduct several
public demonstration in a place where there
are many potential customers. We may also
conduct demonstrations on retailers for them
to know the product and sell the product
effectively by knowing the benefits of the
product. We are planning to conduct public
demonstrations near the market, plaza or
near the stations wherein a lot of people can
be involved. In conducting the public
demonstration, we will stand posters in the
place and we will be using the music, the
song we composed to attract people. We will
also sending out fliers during the demo.

The flow of the public demonstration is

on the beginning we will present the
Splendor 3-in-1. After that we will inform the
people what is the product and the features
of the shoe shiner, an all-in-one with brush
cloth and shoes polish. The benefits of being
natural and non-toxic shoe shiner will also be
explained. After the explanation of the
product is the application in leather shoes
which we provide and shows how Splendor 3-in-1 works. We will also
ask a person who wears leather shoes to try the product by himself for
the customer to see by themselves the unique benefit when they buy and
use the shoe shiner.

Product positioning is how to provide your product or service brand identification

because it makes an impact on the ultimate purchase decision. By this communication
plan that provides product positioning strategy on our product. CAMIRASIVI’s Splendor
3-in-1 will be distinguished from competitive products and will be known for its unique
benefits.
Marketing Mix (4P’s)

 Product

“Splendor 3in1 Shoe Shiner” is an all in one shoe shiner that contains
shoe shiner, a brush and a cloth all in one product. This is best to be used
especially by people who loves convenience in everything they do. Unlike other
shoe shiners present in the market, Splendor 3in1 is non-toxic and all-natural.
This contains natural shoe shining products and with no harmful chemicals that
might be bad for your family.

This shoe shiner is a mix of olive and lemons which are natural shining
agents for shoes. By that we can say that this shoe shiner was truly harmless to
the users unlike the present shoe shiner and shoe polish in the market. This is
also long lasting because you don’t need to squeeze a lot from it when shining a
pair of shoes because it is really effective even if you spread it evenly to your
shoes.

Splendor 3in1 shoe shiner contains 150ml shoe shining solution that can
be availed to a much lower price compared to the other. Like what was said
earlier, this also come with a brush attached on its cap and a cloth on the bottom
part of the bottle. The brush was made of authentic shoe shiner brush that will
not damage your shoes and is also not easy to deteriorate unlike other brushes.
Along with that, the cloth is made of cotton that it is very good to be used in
spreading the shoe shiner on your shoes and in wiping away unwanted dirt on
your shoes before polishing.

Compared to the leading brand which offers wax for shoe polish, Splendor
is much more in the liquid state. But that doesn’t mean that it is thin as water,
Splendor 3in1 is just on the right texture for it not to overspill when it is at use.

CAMIRASIVI also came up producing it in a bottle and not like the other
brands that offers shoe shiners in a round container for it to be more recognized
and to induce much easier use by it being handy.
 Place

The place where our company is located and also the place where we
decided to focus on selling is in Santa Rosa, Laguna. Rizal Blvd, Brgy Market
Area, City of Santa Rosa, Laguna is the exact address of CAMIRASIVI and that
location is where our product, Splendor 3in1 Shoe Shiner is being made.
The place is a big factor in order to promote your product but you must
also not forget to give an eye to the people on the area, who was really the target
of the business in order to make them avail the product and generate revenues
and income.
By mentioning that Santa Rosa City, Laguna is our location and our target
market are office workers and students or simply people who uses leather shoes
almost everyday, we will be promoting and selling our products nearby schools
and other establishments, markets around the city, waiting shed that most
parents and others wait and take a stop while waiting for someone, terminals
where people usually go for a ride to their schools and workplaces and to retail
stores that can be interested in buying and reselling our product.
We are focusing our promotions to consumers and retailers which can be
a very large potential market that is also easy to reach. So we are going to
develop two (2) distribution channels in order to distribute and sell our products
to a much bigger market that might also come up to a better profitability.

CAMIRASIVI Consumers (office

Splendor 3in1 workers and
Shoe Shiner students and/or all
Level Zero Distribution Channel leather shoes users
(Direct Channel) in Santa Rasa City,
Laguna)

CAMIRASIVI Retail Stores in Consumers

Santa Rosa (leather shoes
Splendor 3in1 City, Laguna. users who
Shoe Shiner
prefer buying
in retailers
Level One Distribution Channel
nearby them.)
(Retail Channel)
  Promotion

Market Testing and Full Commercialization –SPLENDOR 3-in-1 will be used in

conducting market demonstrations. This will be done at areas where potential
customers can be found. During the said demonstrations, a self-composed song will be
played. This will also kindle consumer interest. The song can also be played on our
website (www.camirasivi.net) and youtube channel (www.youtube.com/splendor3-in1).
Market Testing and commercialization can be done through surveys and public
demonstrations at groceries and supermarkets. Our product that passes the prototype
development must be exposed to the ultimate consumers in some reasonably realistic
market environment. This is the learning and fine-tuning period as the total offering will
be tested in the market to ensure that all dimensions are working together. Through this
we will be able to know the awareness level, trial purchase level, repeat purchase level,
purchase size, frequency, and sales volume and market shares. This will also inform the
market about our product. Sample poster to be seen during Market demonstrations.

Use of outdoor media advertisement through leaflets, informative brochures,

posters and tarpaulins. The following will provide necessary information about the
product to the consumers. Demonstration does not only focus on consumers but also on
retailers as they are also considered as our target market.

Creation of informative and beneficial product story through local publishers and
also through "word of mouth" to attract consumers. We can also exploit stories about
overuse of petroleum wax shoe polish can eventually damage leather shoes. There are
numerous information about the toxicology of petroleum materials in books and in the
internet. These will lead consumers to purchase our product.
Consumer Promotion Tools
 Promotions like price deal and discounts will be offered to our consumers. There
will also be offers like buy 1 get 1 promos, patronage rewards for loyal customers
and even tender samples. These tools will be used according to its usage.
  PRICE

 Below shows the costing of SPLENDOR 3-in-1.

INGREDIENTS/MATERIALS UNIT PRICE
LEMON ₱ 5.00
OLIVE OIL ₱ 7.00
CONTAINER ₱ 3.00
BRUSH ₱ 0.50
CLOTH ₱ 0.50
ADHESIVES ₱ 1.00
LABEL & PACKAGING ₱ 3.00
TOTAL VARIABLE COST ₱ 20.00 / unit


₱ 20.00 Variable Cost
+ 30.00 - Labor Cost and Expenses
10. 00 - Mark-Up (17%)
₱ 60.00 / Unit

Our pricing has the dual marketing function of making products affordable to its
target market and at the same time, reflecting the value of the product. As new entrant,
we lowered our prices compared to the leading brand. The product price was broken
down from the variable cost, expense and the mark-up.
In comparison to the price of the leading brand which is ₱159 for 79ml of wax polish,
SPLENDOR 3-in-1 is much more affordable which is 1/3 of the price of the leading
brand. Another comparison would be KIWI's complete kit of shoe polish with buffer and
cloth costs ₱701.00 is undeniably costlier than SPLENDOR which also consists brush
and cloth.
SPLENDOR 3-IN-1 KIWI
₱159.00 / 79 ml
PRICE ₱60.00 ₱701.00 / complete kit
I. FINANCIAL ANALYSIS

PLANNED PERFORMANCE STANDARD OF SPLENDOR 3-IN-1

SHOE SHINER

Awareness Level : 50 %

Trial Purchase Level : 30 %

Repeat Purchase Level : 20 %

Purchase Size : 1 Bottle

Purchase Frequency : Monthly

Sales Volume : 36,741 bottles

Market Share : 36%

BUILD UP MODEL FOR PROFITABILITY

Sales Volume 36,741

X Pricing 60

Sales Revenue 2,204,460

Less: Costing 734,820

Gross Profit 1,469,640

Less: Expenses 1,132,788

Profitability 336,852
SCHEDULE A- SALES VOLUME

DESCRIPTION
Market Potential 102,056 people
Awareness Level 50 %
No. of aware market potential 51,028 people
Trial Purchase Level 30 %
No. of aware market potential who bought
15,308 people
the product
Repeat Purchase Level 20 %
No. of aware market potential who bought
3,062 people
the product with repeat purchases
No. of products purchased per Client 1 bottle/month
No. of products purchased monthly 3,062 bottles
No. of Months 12 months
Sales Volume 36 741 bottles

102,056 x 0.50 = 51,028 people (Aware Market Potential)

51,028 x 0.30 = 15,308 people (Market Potential Who Bought the Product)
20,412 x 0.20 = 3,062 people (Repeat Purchase)
3,062 x 1 = 3,062 bottles (Purchased Monthly)
3,062 x 12 (months) = 36,741 bottles
Sales Volume = 36,741 bottles

SCHEDULE B – MARKET SHARE

Sales Volume / Market Size 36,741 / 102,056

Market Share 0.36 or 36%
SCHEDULE C – COSTINGS

Sales Volume 36,741 bottles

x Variable Cost
Lemon 5.00
Olive Oil 7.00
Container 3.00
Brush 0.50
Cloth 0.50
Adhesives 1.00
Label and Packaging 3.00
Total Variable Costs x P 20.00
COSTINGS P 734,820

SCHEDULE D – MONTHLY OPERATING SCHEDULE E – ANNUAL OPERATING

EXPENSES EXPENSES

Operating Expenses
Internet P 999 P 11,988
Utilities Expense P 1,200 P 14,400
Rent Expense P 5,000 P 60,000
Salaries Expense P85,200 P1,022,400
Advertising Expense P 2,000 P 24,000
TOTAL MONTHLY EXPENSES P 94,399 TOTAL ANNUAL EXPENSES P1,132,788

SCHEDULE F- NET INCOME / PROFITABILITY

Gross Profit P1,469,640

Less: Operating Expenses
Internet P 11,988
Utilities Expenses P 14,400
Rent Expenses P 60,000
Salaries Expenses P1,022,400
Advertising Expenses P 24,000
TOTAL P1,132,788
Net Income P336,852