PRINMAR Project Phase 3

MARKETING STRATEGIES (PRICE, PROMOTION AND PLACE)

SUBMITTED BY:

Cabugao, Frances Jarmine C.Surigao, Anale –

Vega, Charmine Hazel

PRINMAR TAOH

SUBMITTED TO:Ms. Evangeline B. Mina

November 26, 2012

I. POSITIONING STRATEGY

Value Proposition

Our value proposition is an offer that gives a high-quality, healthy fast sandwich at a reasonable price. Our facilities are clean and our food is tastier than that of our competitors. The ambiance of our facilities contributes to customers' desire to eat their meals in a comfortable, healthy environment.

Positioning Statement

For people desiring for a fast, friendly, and tasty sandwich, we produce a quick small meal.  Our seating area will be clean and the overall ambiance of the place will be pleasing to the senses.  The food will be good and the service, friendly and fast.

II. PROMOTION STRATEGY AND PROGRAMS

Free taste

This is the strategy that we will use because our respondents have chosen this kind of promotion.

Before we officially sell our product to the customers, we will have this strategy first so that we could attract more customers.

Possible Promotion Strategies

1. Plan a distribution program for our promotional item during the event which should answer the following questions:

a. How can your target market find or get attracted to your location (booth) during the event?

b. How can you effectively distribute your corporate giveaway?c. How can you deliver your message (sales pitch) or gather

information from your target market (contact details) during the distribution process?

2. Create a system to organize all gathered information

In this step, we will ensure that we all gathered the information during the free taste event to make it systematic. We will ask

feedbacks from the actual or potential buyers to be able to make changes or improvements regarding our product.

3. Design a lead follow-up program from the gathered information.

After gathering all the information, we will call and follow-up the needed or to be improved matters.

Policies to be Implemented

1. Prioritize those people who are really underweight since they are our target market.

2. Only 1/4 slice of bread is to be given.3. The person can only take 1-3 slices of bread.4. Attract and persuade the person to buy the product after he/she

had tasted it.

III. Poster Lay-out/Design

The picture shown is the poster-layout of the product, where in there are sample pictures of the product itself, price, name of the product, ingredients and contact information.

The color combination was chosen in order to attract people to buy food. The product is a food, and psychologically speaking, colors red and yellow mutually persuade people to eat.

We also gave emphasis on the price of the product because since the target market is of less privileged families, it is a known matter that they highly consider the price whenever they buy. With less disposable income, they carefully choose what to make of it. That is also one of the reasons why we placed the ingredients of the product on the bottom part. Another reason is that, one of the rights of consumers is the right to be informed. They have the right to know what opportunity benefit they would get for every opportunity cost.

Aside from this information about the product, we also placed on the upper-left corner the contact number of the sellers and the place of production. This is if ever they would have any inquiry about the product.

IV. Place Strategy and Programs

Distribution Strategy

We plan to distribute our products direct to customers, without the use of a separate channel of distributors.

We also want direct distribution to customers to build relationship and make them satisfy.

Distribution of the Product

DIRECT FLOW OF DISTRIBUTION

At the same time, it helps you to give direct reasons for customers to buy your product and of course, it will help you to build up relationship.

On the other hand, this idea will be richly rewarded you because you will gain revenues and also the customer intelligence. Direct channel lessen the mark up cost because there are no middlemen needed. Lastly, many customers appreciate the opportunity to give profits

SELLER BUYER

directly to producers or sellers. It has more control on the distribution of its products.

In this way company can maintain its finance and route of marketing directly.

V. Suggested Selling Price

PRODUCTION COST

PACKAGING COSTItem PriceSticker Php25.00Sandwich Plastic Php5.00Print for the Stickers Php10.00TOTAL Php40.00

Final Computation:

Production Cost Php150.00Packaging Cost Php40.00Mark-up Cost Php10.00TOTAL Php200.00

Selling Price/piece Php10.00The computations shown are computations of the ingredients and materials’ prices needed in making the product. The amounts specified in the computation are good to produce 20 pieces of the product – Bread Cliff. Since the total cost plus mark-up is equivalent to Php200.00, it is divided into 20 – number of products to be produced – which brings Php10.00 as the selling price per sandwich.

The price range, which is voted by the majority of the sample, is Php8.00-Php10.00. We chose to set Php10.00 as the selling prince in order to at least get profit from the selling the product. In that way,

Ingredients PriceLoaf of Bread Php60.00Bread Crumbs

Php15.00

Ham Php40.00Egg Php20.00Cabbage Php20.00Cooking Oil Php5.00TOTAL Php150.00

both parties will benefit. Sellers will earn, while customers will get satisfaction in return. Another reason is that, this price (Php10.00) will make the transaction faster because, it wouldn’t take much time when giving change to the customers.

Sources:

http://www.bplans.com/franchise_sandwich_shop_business_plan/market_analysis_summary_fc.php

http://answers.yahoo.com/question/index?qid=20080714200547AAdlEbq