FINAL EVALUATION ACTIVITY IN STRATEGIC MARKETING MANAGEMENT

Seylbowt Prime Ventures, Inc. (SPVI)

NAME: PAUL JOHN G. RACI

I. SITUATION AUDIT:

On its first full year of operations, Seylbowt Prime Ventures, Inc. (SPVI) revenue from
sales amounted to Php11,250,000.000. The company assumed that the sales will
increased to an estimated amount of Php62,000,000.00 on the present year.

On its liquidity analysis, there is 0.64516129 quick ratio, and debt ratio of 17.5.

II. PROBLEM STATEMENT:

The main problem is the lack of planning, specifically, in marketing planning -

separating outcomes from its existing products. According to the scenario, SPVI offered
S-4 ships. The said ship might affect the other ships/products especially to S-1 ships
because of its cheaper price.

Components such as product ideation, message testing, post-launch surveys, product

validation and market assessments play a major role in marketing and sales of the
product, which cannot be ignored by focusing on product’s merits alone. The success of
a product is widely dependent on these factors.

III. ALTERNATIVES/OPTION:

1. Engage on further research

New products need to undergo further research to know its feedbacks and effects
to existing products.
2. Develop people

IV. CRITICAL ISSUES:

1. Not hiring people to replace the resigned sales manager

2. Producing new product that might have a big effect on the existing product
3. SPVI was not able to plan distribution strategy effectively.
 V. ANALYSIS:

a. Financial Analysis – Sales Forecast:

Products First Year Present Year Proposed Plan

No. Ave. Price Revenue No. Ave. Price Revenue No. Ave. Price * Revenue
S-1 20 125,000 2,500,000 120 150,000 18,000,000 240 165,000 39,600,000
S-2 4 1,750,000 7,000,000 20 2,000,000 40,000,000 30 2,200,000 66,000,000
S-3 2 875,000 1,750,000 4 1,000,000 4,000,000 4 1,100,000 4,400,000
S-4 - - 40 1,000,000 40,000,000
Total 11,250,000 Total 62,000,000 Total 150,000,000
Revenue Revenue Revenue
* Estimated prices to cover anticipated
increases in costs

b. Break-even Analysis:
Manufacturing Variable Industry Pricing Standard
Product Cost Cost per Price Range Break Even Point
s Unit
S-1 150,000 97,500 125,000 175,000 934.5455 331.6129
S-2 2,000,000 1,300,000 1,350,000 1,500,000 514.0000 128.5000
S-3 1,000,000 650,000 1,550,000 1,700,000 28.5556 24.4762
S-4 1,000,000 650,000 1,750,000 over 23.3636

Fixed 25,700,000
Cost

c. Financial Structure: Product-line Strategy:

ASSETS LIABILITIES
Cash 1,000,000 Current Liabilities 31,000,000
Accounts Receivables 19,000,000 Short Term Debt 22,500,000
Inventory Long Term Debt 47,500,000
Raw Materials 10,000,000 Net Worth:
Parts and Equipment 10,000,000 Common Stocks (Priv. Held) 10,000,000
Partial and Completed Sailboats 15,000,000 Retained Earnings (6,000,000)
Fixed Assets 50,000,000

Total Assets 105,000,000 Total Liabilities & Net Worth 105,000,000

d. Liquidity Analysis:

Current Assets 20,000,000 Current Liabilities 31000000

Inventory 85,000,000

Quick Ratio 0.64516129

Debt Ratio: 17.5

e. Distribution:
1. Company President, Mr. Lou Lubog Lee-tao, first prioritized establishing
effective distribution channel for the sailboats, and compiled a list of potential
pleasure boat dealers along the Northern side of Region 1.
2. His next step was to persuade some of the most likely candidates to handle the
company’s product, invited each of the interested dealers to Bauang, La Union
to visit the factory and to evaluate the sailboats, and offered to sell them a S-1
on consignment.

VI. RECOMMENDATION:

The success of new product development depends on how effectively you plan. But
what matters the most is how well you have researched and brainstormed the ideas that
comprehend to needs of the target audience.

Moreover, the coordination among teams and vigilance throughout the development
phase will also play a key role in success. It will not only address the systematic approach
to the new product process but also unifies the team efforts throughout the process.