2.

0 MARKETING PLAN

2.1 Service

Dinah & Fred Auditing Services will be offering quality and reliable

auditing services to Small-Medium Enterprises (SMEs) and is to be

located in the City of San Fernando, La Union. According to Section 3 of

Republic Act No. 8289, SME is any business activity or enterprise

engaged in industry, agribusiness and/or services, whether single

proprietorship, cooperative, partnership, or corporation whose total

assets, inclusive of those arising from loans but exclusive of the land on

which the particular business entity’s office, plant and equipment, must

have falling under the following categories:

Micro Less than P 1, 500, 001

Small P 1, 500, 001 to P 15, 000, 000

Medium P 15, 000, 001 to P 60, 000, 000

2.2 Demand/Supply Analysis

2.2.1 Demand Analysis

The researchers gathered the historical population of Small-

Medium Enterprises in the City of San Fernando, La Union’s Local

Economic and Business Development Office.

 Using the Slovin’s formula, a total number of 355

respondents that represented the population of Small-Medium

Enterprises was derived. Questionnaires were prepared and floated

to these SME-respondents.

The average consumption rate was derived from the number

of respondents who answered how often they avail auditing

services which is annually equivalent to one (1).

The computed historical demand in table 1 shall be used in

the determination of the best applicable method for the demand

projections.

Table 1

HISTORICAL DEMAND OF SMALL-MEDIUM ENTERPRISES

Average
Year Historical Annual Consumption Historical
Population Consumption Rate Demand

2014 2,302 1 57.18% 1,316

2015 2,348 1 57.18% 1,343
2016 2,536 1 57.18% 1,450
2017 2,770 1 57.18% 1,584
2018 3,192 1 57.18% 1,825
Source: Dinah and Fred Auditing

Services: A Feasibility Study

 Table 2 shows the projected demand of Dinah & fred

Auditing Services using the Statistical Parabolic Method because it

has the lowest Standard Deviation.

Table 2

PROJECTED DEMAND OF 3,912

2021 4,526
2022 AUDITING
DINAH & FRED 5,204
2023 5,948
Source:
SERVICES02020 Dinah and Fred Auditing Services:

A Feasibility Study

2.2.2 Supply Analysis

At present, Dinah & Fred Auditing Services has eight direct

competitors in the City of San Fernando, La Union. Table 3 shows list

of auditing firms.

Table 3

LIST OF AUDITING FIRMS OF SAN FERNANDO, LA UNION

Name of Competitor Address

Deleña, Gil Gen. Luna St., San Fernando City, La

Union
Del Rosario, Felix Carlatan, San Fernando City, La

Union
Galvan, Nellie San Fernando City, La Union
Licup, Erlindo Catbangen, San Fernando City, La

Union
 Licup, Nazareno Catbangen, San Fernando City, La

Union
Purugganan, Jocelyn Rizal Avenue, San Fernando City, La

Union
Reyes, Rosabel Ilocanos Sur, San Fernando City, La

Union
Viloria-Cacas, Tricia Poro, San Fernando City, La Union

Source: City of San Fernando, La Union Bureau of Internal Revenue

Table 4 shows the historical supply of auditing services by

the competitors of the proposed business. The annual supply is

based on the monthly transactions by direct competitors and

which sum for each year was derived through an interview being

conducted.

Table 4

HISTORICAL SUPPLY OF COMPETITORS (CLIENTS)

Year Historical Supply

2014 344
2015 360
2016 390
2017 434
2018 448
Source: Dinah and Fred Auditing Services:

A Feasibility Study

Table 5 shows the projected supply of Dinah & Fred Auditing

Services using the Statistical Parabolic Method because it has the

lowest Standard Deviation.

 Table 5

TOTAL PROJECTED SUPPLY OF DINAH & FRED FOR AUDITING

SERVICES

Year Projected Supply

2019 589
2020 626
2021 665
2022 705
2023 747
Source: Dinah and Fred Auditing

Services: A Feasibility Study

2.2.3 Demand Supply Analysis

There is an unsatisfied demand as shown in Table 7. Only 54

clients for 2018 or equivalent of 1.95% of the unsatisfied demand

shall be catered by Dinah & Bhandamme Auditing Services. Table

6 shows the market share of the proposed business for the next

years.

Table 6

MARKET SHARE

Market
Projected Projected Unsatisfied Share
Year
Demand Supply Demand
% Clients
2019 3,364 589 2,775 1.95% 54
2020 3,912 626 3,286 1.73% 57
2021 4,526 665 3,861 1.55% 60
2022 5,204 705 4,499 1.40% 63
2023 5,948 747 5,201 1.27% 66
 Source: Dinah and Fred Auditing Services: A

Feasibility Study

2.3 Existing Market Situation

Auditing service is offered to Small-Medium Enterprises (SMEs|) in

the City of San Fernando, La Union. There are eight suppliers of auditing

service in the said place who are considered to be Dinah and Fred

Auditing Services’ competitors. They are considered competitors of Dinah

& Fred Auditing Services because they provide the same service to the

similar target market. The competitors have an edge to the proposed

business because they have already been established and are already

known to the customers.

The competitors located in the City of San Fernando La Union offer

a competitive market price.

Table 7 shows the price list of competitors. Five out of eight

(Deleña, Gil, Del Rosario, Felix, Licup, Nazareno, Viloria, Tricia,and

Licup, Erlindo) were not able to disclosed such information because it

was deemed confidential.

Table 7

PRICE LIST
Competitors Price per Auditing fee (Php)
Galvan, Nellie 40,000-50,000
Purugganan, Jocelyn 40,000-50,000
Reyes, Rosabel 40,000-50,000
2.4 Own Market Plan

2.4.1 Service

Dinah & Fred Auditing Services will provide Audit of Financial

Statements to Small-Medium Enterprises. They will conveniently offer to

its clients auditing services to cater their needs. Auditing services will

ensure that the client’s financial statements are prepared in accordance

with applicable financial reporting framework. Furthermore, it will help

the client to have audited financial statements as a requirement of

Bureau of Internal Revenue in filing their annual income tax return. Its

mission is to provide professional, reliable and trusted auditing services

that will assist clients in their business.

2.4.2 Place

The business will be located at the 2nd floor, room 301 of DNCP

Building, above Villarica Pawnshop, City of San Fernando La Union.

2.4.3 Promotion

Dinah & Fred Auditing Services will establish its name through

referrals of their service with the help of their families, friends and co-

workers.
 2.4.4 Price

The business will use a competition-based pricing in valuing its

service by gaining information about competitor’s pricing. According to

www.accountingverse.com, competition-based pricing is a pricing method

that makes use of competitors’ prices for the same product/service as

basis in setting a price.

Table 8

PRICE OF DINAH & FRED AUDITING SERVICES

Service Fixed Price (Php)
Audit of Financial Statements 35,000

The rate of Php 35,000 will be applied to all clients.

2.5 Projected Sales

2019 2028 2021 2022 2023

No. of 54 57 60 63 66

Clients

Rate P 35, 000 P 35, 000 P 35, 000 P 35, 000 P 35, 000

TOTAL P 1,890,000 P 1,995,000 P 2,100,000 P 2,205,000 P 2,310,000

SERVICE

REVENUE

Source: Dinah and Fred Auditing Services: A Feasibility

Study

2.6 Marketing Function/Responsibilities

 Dinah and Fred Auditing Services markets its service through

referrals thus, there will be no responsible personnel in marketing its

service and no commission and transportation will be incurred.

2.7 Total Marketing Cost

Dinah and Fred Auditing Services will incur no cost in marketing

its service since its service is marketed only through referrals.