MARKETING STUDY OF A WOODEN MAZE SOUVENIR ITEM FOR

SOUVENIR SHOPS AND STALLS OF METROPOLITAN CEBU AREAS: A

PROPOSED PRODUCT LINE FOR B AND F WOODMASTERS

A Research Project in
DESIGN PROJECT
Presented to the Faculty of Industrial Engineering Department
Cebu Institute of Technology - University, Cebu City, Philippines

In Partial Fulfillment
Of the Requirements for the Degree
BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING

By
JEFFREY ANDOY
GREMORRI XENIN NABLO
MARY LINDY SASAN
MAE-ANE SUSTEVERIO
CARMELIE TELMO
May 2015

ACKNOWLEDGMENT
We would like to extend our deepest and most sincere gratitude to
the following people that made this research possible:
Mrs. Florencia Embalzado, owner of the B & F Woodmasters for
accepting and welcoming our request to conduct the study on their
company and also helping us gather the needed data.
Engr. Aries M. Rivero IE521 Design Project Instructor, for his
guidance on our study and never wailing patience to persevere on us.
Also, we would like to acknowledge his helpful ideas that greatly helped
shape our study.
To Almighty God, for his love and protection that kept us safe and
out of harms way. We thank God for the graces he showered upon us and
the food that we partook.
And lastly, to our Family and Friends who shared our burden and
helped us get through all challenges. Their financial support and
hospitality that served as fuel for our study to move forward. Our study
wouldnt have been successful if it werent for you all. Thank You!

DEDICATION

This is for my friends

and family Jef

I dedicate this study to my friends

who are always there to help me.
To my parents for their longest patience,
waiting for me to graduate Gex

I dedicate this study for everyone - Deedee

This is for my parents

for their unending support in
conducting this study Mae-Ane

I dedicate this to my ever loving parents

and to my supportive friends - Carms

TABLE OF CONTENTS
Title
Acknowledgment
Dedications
Table of Contents
List of Tables
List of Figures
List of Exhibits
THE PROBLEM AND ITS SCOPE
1.1
Introduction
1.1.1 Rationale of the Study
1.1.2 Conceptual Framework
1.1.3 Flow of Research Process
1.2 The Problem
1.2.1 Statement of the Problem
1.2.2 Statement of Assumption
1.2.3 Significance of the Study
1.3 Research Methodology
1.3.1 Research Environment
1.3.2 Research Respondents
1.3.3 Research Instruments
1.3.4 Research Procedures
1.4 Definition of Terms
PRESENTATION AND ANALYSIS OF DESIGN CONSTRAINTS
2.1 Beneficiary Community
2.1.1 Historical Background
2.1.2 Demographic Profile
2.1.3 Waste Management Practices
2.1.4 The Waste Material
Quantification of Excess Materials
Costing of Excess Materials
2.2 Structural Limitations
2.2.1 Space Constraints
2.2.2 Manpower Complement
2.2.3 Production Facilities and Equipment
2.2.4 Materials Inventory
COMPANY PROFILE AND ITS MICROENVIRONMENT
3.1 Company Logo and Location
3.2 Vision, Mission, Goals, Objectives and Values
3.3 Critical Success Factors and Strategic Approach
3.4 Business Model
Key Partners
Key Activities
Value Proposition
Customer Relationships
Customer Segmentation
Revenue Streams
Channels
Key Resources
Cost Structure
3.5 Microenvironment of the Company
Suppliers
Marketing Intermediaries

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Customers
Competitive Position and the Competitors
Public
PRODUCT DESCRIPTION
4.1 Product Concept
4.1.1 Name and Uses of Products
4.1.2 Market Preferences on Product Design
4.1.3 Pictorial Sketch
4.1.4 Exploded Drawing
4.1.5 Orthographic Drawing
4.1.6 Features and Benefits
4.1.7 Characteristics of the Products
Strength and Durability
Overall Customer Appeal
4.2 Materials Requirement Planning
4.2.1 Product Structure Tree
4.2.2 Materials Specification
4.2.3 Parts List
4.2.4 Bill of Materials
MARKETING ASPECT
5.1
Target Market
5.1.1 Catchment Area
5.1.2 Description of Industry
5.1.3 Segmentation Basis
5.1.4 Operating Characteristics
5.1.5 Purchasing Process and Approaches
5.2 Market Study Results
5.2.1 Qualitative Demand Analysis
5.2.2 Quantitative Demand Analysis
Demand Analysis
Supply Analysis
Market Share Estimation
Sales Projection
5.3 Marketing Mix Decisions
5.3.1 Product
Product Mix
Level of Product
Branding
Positioning
Packaging
5.3.2 Price
Factors
Policies and Approaches
5.3.3 Placement
Value delivery network and their functions
Channel design decisions
5.3.4 Promotion
Marketing Communications Mix
Promotion Budget
5.4 Life Cycle Strategies
5.4.1 Introduction Stage
5.4.2 Growth Stage
5.4.3 Maturity Stage
5.4.4 Decline Stage
BIBLIOGRAPHY

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APPENDICES
CURRICULUM VITAE

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LIST OF TABLES
Table
No.
1

Description
Research Respondents

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Costing of Excess Materials

Costing of Other Excess Materials
Tools and Equipments Needed
Raw Material Inventory
Components of Mission Statement
Strategic Approach
List of Suppliers
List of Competitors
Material Used in making Wooden Maze Souvenir Item
Parts List of Wooden Maze Souvenir Item
Bill of Materials per product
Total Overhead Cost per product
Total Labor Cost per product
Total unit cost per product
Geographic Segmentation
Interested and NOT Interested First Time Seller
Willing to buy and NOT Willing to buy First Time Seller
Number of Souvenir Shops and Stalls
Forecasted Number of Shops and Stalls- 1 of 2
Forecasted Number of Shops and Stalls- 2 of 2
Annual Market Demand- 1 of 2
Annual Market Demand- 2 of 2
Potential Market
Available Market
Capable to buy Market
Sales Projection of Mazeaya
Forecasted Annual Demand
B&F Woodmasters Existing Product Lines
Proposed Product Lines
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage

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LIST OF FIGURES
Figure No.
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2

Description
Conceptual Framework of Wooden Souvenir Item
Flow of Research Process

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Activity Map of Critical Success Factors

Business Model
Product Structure Tree
Percentage Distribution of the Target Market
Stages in the B2B Buying Process
Purchasing Process
Supply Analysis of Mazeaya
Forecasted Annual Demand
Life Cycle Strategy

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LIST OF EXHIBITS
Exhibit No.
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4

Description
Vicinity Map of B&F Woodmasters
Manufacturing Area of B&F Woodmasters
B&F Woodmasters Logo
Value Proposition

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Customer Segmentation
Probability Tree Diagram
Wooden Maze Souvenir Item
Exploded Drawing Top View
Exploded Drawing Bottom View
Exploded Drawing Isometric View
Orthographic Drawing Top View
Orthographic Drawing Isometric View
Catchment Area
Three Levels of a Product

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CHAPTER I
THE PROBLEM AND ITS SCOPE
1.1

Introduction

1.1.1 Rationale of the Study

As a tourist destination, the Philippines is loaded with the
attractions travelers dream of: lots of sun, gorgeous beaches, worldclass scenery, adventure opportunities, friendly outgoing locals,
fascinating history and lots of little-roamed territory (source:
http://travel.cnn.com/).

According to the Tourism Research and

Statistics Division (TRSD), the total earnings gained from tourism

activities for February 2015 amounted to Php 19.35 billion, higher
by 4.25% against the previous years receipts of Php 18.56 billion.
Visitor arrivals in February 2015 yielded to 456,526 which is 8.02%
higher than the February 2014 arrivals of 422,631. (source:
http://www.tourism.gov.ph/)

Souvenir items are any objects that recall the certain place,
occasion,

or

person;

memento

http://dictionary.reference.com/browse/souvenir) .

(source:

Souvenir items are

the representations of the culture and beliefs of the people in a

specific place. The tourists motivation of purchase is that they want
to be reminded of special moments of their lives and to hold
evidence of those special moments.
Souvenir brings big economy. Souvenir shop is important to
tourism. Shopping is a main or secondary factor for traveling, and is

very important to tourists. It is an important factor for whether a trip

is

successful

or

not.

(source:

http://extensiontourism.net/files/2012/08/CS2-E-3-Tseng-NET-2009.pdf)

According to the study of the Institute for Local Self-Reliance,

there are 41 tons of excess wood cuttings per day were generated
by the companies here in the Philippines in the year 2005. In the
year 2010, there is an increase in the number of excess wood
cuttings. It reaches to 46 tons per day.
Nowadays, the Philippines is starting to adapt eco-tourism to
promote environmentally friendly and sustainable end products to
the consumers. In fact, the Local Government Units has a National
Solid Waste Management Strategy 2012-2016. The strategy shall
serve as a road map to achieve an improved waste management
wherein a 50% diversion of solid wastes from waste disposal
facilities through reuse, recycling and composting activities and
other resource recovery activities have been achieved by 2016.
(Source:

http://www.emb.gov.ph/portal/Portals/38/NSWMC

%20Strategies/NSWM%20Strategy%202012-2016.pdf)

B and F Woodmasters is one of the companies which have

excess wood cuttings. This study aims to reduce the excess wood
cuttings generated by the B and F Woodmasters and transformed
them into

income-generating products. The study is not just

concern with the product development but also the marketability of

the product. The concept is to design a souvenir item, which is

associated with the culture and famous places in Cebu City.

The

product is not just promoting Cebu City but also serves as an

entertainment medium for maze fanatics.

1.1.2 Conceptual Framework

Figure 1. Conceptual Framework of Wooden Maze Souvenir Item

The

conceptual

assumptions,
comprising

framework

principles, and rules

a

is

defined
that holds

broad

as

theoretical

together

concept.

of

the ideas
(Source:

http://www.businessdictionary.com/definition/conceptual-framework.html)
The figure above shows the areas to be considered in developing for the
product concept, namely Design Constraints, Company Profile and its
Microenvironment, Product Description, Manufacturing System Design,
and Marketing Aspect.
For the Design Constraints, there are structural limitations that need
to be considered which includes the space constraints, Manpower
Constraints, Capacity Planning, and Facilities and Equipment Constraints.
These constraints were important in order to prevent or minimize delays
in producing the wooden maze souvenir item.
In coming up with the Company Profile and its Microenvironment,
the researchers will have to identify the Business Vision, Mission, Goals,
Objectives and Values, Critical Success Factors, Business Model, and its
microenvironment. These factors are necessary in leading the company to
its competitive advantage.
In the Product Description, one aspect to consider is the market
preference relative to the product design. In this phase, it shows the
detailed information about the wooden maze souvenir item.
Marketing Aspect shows the marketability of the designed product.
Determining the target market is the first step in this portion. Target
6

market is defined as a set of buyers sharing common needs or

characteristics that the company decides to serve (Kotler and Armstrong,
2010). The basis in designing a marketable product is the market study
results. It reveals the preferences of the market to the product. Marketing
Mix Decisions and Life Cycle Strategies are also to be considered.

1.1.3 Flow of Research Process

Source of Waste:
Characteristics and Volume
Excess Materials
Cost of Excess Materials
Beneficiary Company:
Availability of Materials
and Equipments
Manpower Complement
Materials Inventory
Space Constraints

of

Data Collection:
Interview
Observation
Document Analysis
Focus Group Discussion
Product Development:
Conceptualization
Product Prototype
Product Testing
Redesigning Product
Market Study:

Market Preference

Segmentation Basis

Strategic Approach

MARKETING STUDY OF WOODEN

MAZE SOUVENIR ITEM FOR
SOUVENIR SHOPS AND STALLS
OF METROPOLITAN CEBU: A
PROPOSED PRODUCT LINE FOR B
AND F WOODMASTERS

INPUT

PROCESS

OUTPUT

Figure 2. Flow of Research Process

The figure above shows the measurable inputs that should be considered in order to fully understand
the entire topic. Conducting an interview, Observation, Document Analysis and Focus Group Discussion are
the means in collecting

the data. After collecting the data, the researchers then develop a product
made from the waste woods of the company. In coming up with design,
the researchers conducted a market study which includes the Market
Preference, Segmentation Basis, and the Strategic Approach. The end
result of this study is having an additional product line for B and F
Woodmasters which would be beneficial to the company.

1.2

The Problem

1.2.1 Statement of the Problem

In conducting the study, it is to conceptualize and develop a product
out of waste materials, also conduct market study to know if the product
is sellable, and to design a manufacturing system to produce the product
considering the structural limitations of the available resources such as
manpower, machine, money, methods and materials.
Furthermore, this study aims to answer the following:
1. What are the materials needed to produce the product?
2. Who are the potential suppliers of the materials?
3. Who is the beneficiary community?
4. Who are the potential customers?
5. What is the market segment of the product?
6. What is the market preference?
7. What are the tools and equipment needed in producing the
product?
8. What are the structural limitations in producing the product?
1.2.2 Statement of Assumption
In conceptualizing the design and its manufacturing system,
assumptions are being made. The following are the list of assumptions:

10

1. Improvements in the existing setup of the company are not

part of the study yet creating an additional product line to the
company.
2. With regards to the provision of the excess wood cuttings, it
would be the responsibility of the company.
3. The location of the manufacturing for the proposed product
line will be the same with where the company is currently
located.
4. Workers are well-trained of the process.
5. The workers are already knowledgeable in handling machine
breakdowns and maintenance.
6. Downtime due to brownouts is considered.
7. The maze has different design and size.
8. Needed resources are always available.
9. The

responses

in

the

survey

(sample

population)

will

represent the whole population thus the results speak of the

general behavior of the whole population.
10.

Since the lists of souvenir shops and stalls given by the

City Treasurers Office of Lapu-Lapu City, Mandaue City and

Cebu City is in the year 2014, the researchers assumed that

11

the annual growth of the population is 2%. In computing for

the annual growth, it needs two years as basis.
1.2.3 Significance of the Study
The aim of the study is to produce a new product out of waste wood
which will be used in making a maze with the design of best of Cebu.
Upon conducting this study, long-term benefits of every end-user will be
realized. The following entities are the beneficiaries of the study:
The Beneficiary Company
The company will also benefit from the additional product line.
Having a product made out of waste woods can minimize the waste
generated by the company. Thus, increasing the income of the company.
The Government
By promoting the best of Cebu, the number of visitors will surely
increase. Therefore, it would be beneficial to the government in terms of
its tourism. If there is an escalation in the number of tourists visiting
Cebu, it is expected that there would be an increase in the tax collected
by the government due to their expenditures specifically in the souvenir
items.
The End Customers
Aside from having fun with the provided maze, the end consumers
will have the sense of belongingness in such a way that they had
witnessed the best of Cebu. As the consumers bought the product, it

12

would create and impact to them to be one of the catalysts for nature
conservation.
The Researchers
This study enables the researcher to provoke their conceptual skills
in designing a new product, positioning them into the market and creating
an effective manufacturing system. Also, the researchers will be able to
apply the IE tools and theories which they have studied for the past years.
Other Researchers
This study serves as a reference and guide for future researchers
who will conduct a similar study. As a reference, this study is subject for
revisions.

1.3

Research Methodology

1.3.1 Research Environment

The researchers conducted the study at Barangay Calidngan, Carcar
City, Cebu. The beneficiary of Market and Technical Study of Wooden Maze
Souvenir Item will be B and F Woodmasters. The product was made of
recycled woods from the company itself. The suppliers of woods are the
neighborhood barangays. Cebu Flamingo Inc. is one of the suppliers of the
company, but they will only supply for a specific type of wood named
Bayong.

1.3.2 Research Respondents

Respondents

No. of

Roles
13

Respondents
Owner

Production Workers

Shop/Stall
Owners or
Attendant
City
Treasurers
Office

Lapu-Lapu City
Mandaue City
Cebu City
Lapu-Lapu City
Mandaue City
Cebu City

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3
10
1
1
1

Main
decision
maker
in
the
manufacturing
area.
Working skills and
preferences
that
will served as a
consideration
of
constraints.
Answers
the
survey
questionnaires.
Gives the lists of
the souvenir shops
and stalls

Table 1. Research Respondents

Above table are the respondents who give the answers to the
researchers for the data needed in this study. The participants involved
are the workers in the company being interviewed in order to gather data
of the availability of the cut woods, and the manpower of the selected
beneficiary. Also, the owners of some souvenir shops if they want, willing
to buy and sell this kind of product in their shop that are found in Cebu
City and Lapu-lapu City. The researchers are still gathering the number of
souvenir shops within the Metropolitan Cebu Areas.

1.3.3 Research Instruments

The researchers used basic tools such as Interview, Observation,
Document Analysis, Time Study, Questionnaire and Focused Group
Discussion in gathering the data needed. The details of the methods
being used are the following:
Interview
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In order to get relevant information researchers conduct interview

to the research respondents that could help to analyze the data gathered.
Observation
The researchers observe and examine the different process in
making the product as basis in interpreting the data.
Document Analysis
This method refers to the interpreting and analyzing the available
documents that could help researchers to obtain information needed.

Questionnaire
One of the methods being used is conducting survey in able to know
if customers are willing to buy the product and gather relevant
information to complete this study. Through this survey respondents can
express their perception towards the product.
Focused Group Discussion
The researchers discussed what data will gather, how to analyze
and treat the data and interpret result in order to generate probable
solutions out of the result.
Time Study
This method used to determine the time involve in each process in
making the product, including the ideal cycle time to finish the certain

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product, how many products will be produced in a given period of time

and other time involve in the activity.

1.3.4 Research Procedures

In the attainment of research, the following steps were taken:
Gathering of Data
Prior to gathering of the data, the researchers first conceptualized
the possible product made out from waste materials generated by the
selected company. After the product conceptualization, the researchers
then identified the beneficiary community. The beneficiary community will
benefit from the study and they are the one to execute the job in order to
produce a product. The beneficiary community is the company itself. In
this study, the researchers considered the schedule of the existing
workers in the company to avoid job disruption. In order to get the needed
manpower, space allocation, and materials needed and other data for the
completion of the study, the researchers conducted an interview with the
personnel in the beneficiary company, observation, document analysis
and other means in gathering the data. The researchers sourced the lists
of the souvenir shops within the Metropolitan Cebu Areas from the
Department of Trade and Industry. Lastly, the market preferences were
put into consideration in developing a product and in designing the
manufacturing system.

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Analysis of Data
After gathering the data researchers will have thorough analysis
that would help the researchers to have further investigation to identify
possible solutions on how to improve processes involved in this study.

1.4

Definition of Terms

Beneficiary
-

A person who derives advantage from something, especially a

trust, will, or life insurance policy.

Catchment Area
-

The area from which people area allocated to a particular place.

Conceptual Framework
-

is an analytical tool with several tools variations and contexts. It

is used to make conceptual distinctions and organize ideas.

Demand Analysis
-

study of sales generated by a good or service to determine the

reasons for its success or failure, and how its sales performance
can be improved.

Eco-tourism
-

tourism

directed

toward

exotic,

often

threatened,

natural

environments, especially to support conservation efforts and

observe wildlife.
Manpower
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the number of people working or available for work or service.

Market Preference
-

measure of brand loyalty in which a customer will choose a

particular brand in presence of competing brands but will accept
substitutes if that brad is not available.

Market Segmentation
-

is a marketing strategy which involves dividing a broad target

market into subsets of consumers who are perceived to have
common needs, and then designing and implementing strategies
to target them.

Market Share
-

a portion of a market controlled by a particular company or

product.

Maze
-

a network of paths and hedges designed as a puzzle through

which one has to find a way.

Nationalism
-

becoming attached to ones nation.

Patriotism
-

cultural attachment to ones homeland. It is a set of concepts

closely related to those of nationalism.

Pricing
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decide the amount required as payment for something offered

for sale.

Product
-

is the item offered for sale. A substance that is manufactured or

refined for sale

Product Life Cycle

-

is the cycle through which every product goes through from

introduction to withdrawal or eventual demise.

Prototype
-

a preliminary model of something from which other forms are

developed or copied.

Souvenir
-

a thing that is kept as a reminder of a person, place, or event.

Waste
-

eliminated or discarded as no longer useful or required after the

completion of a process.

Waste Management
-

the collection, transportation, and disposal of garbage, sewage,

and other waste products. Waste encompasses management of
all processes and resources for proper handling of waste
materials

Workstation
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an area where work of a particular nature is carried out, such as

a specific location on a manufacturing assembly line.

CHAPTER II
PRESENTATION AND ANALYSIS OF DESIGN CONSTRAINTS
2.1

Beneficiary Company

2.1.1 Historical Background

B&F Woodmasters owned by Mr. Alex Boy Embalzado and Mrs.
Florencia Flor Embalzado is a subcontracting company of Cebu Flamingo
Incorporated. In 1997, due to the encouragement of a friend and the
couples curiosity, they started the wood crafting business at Sitio Saksak,
Barangay Calidngan, Carcar City. However, in the late 2000 when the
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Philippines economy prospered and the dollar exchange rate went down,
the orders also decreases that made the company set off. Nevertheless, in
2002 the business upswing and made B & F Woodmasters rise up having
seventeen workers. And to monitor the processes and manage the
business well the couple decided to set up the business near them at Sitio
Pinamuyakan, Barangay Calidngan, Carcar City.

2.1.2 Demographic Profile

Company Name : B&F Woodmasters
Company Owner : Mr. Alex Embalzado & Mrs. Florentia Embalzado
Company address
Type of industry

: Sitio Pinamuyakan, Calidngan, Carcar

: Manufacturing

Product Line

: Souvenir items (key chain, paper weight)

Number of Workers

: 17

2.1.3 Waste Management Practices

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B&F Woodmasters workers observe proper housekeeping after working

hours. Every worker is required to clean up and pile up wastes. The
company has the following wastes: excess wood cuttings, excess chemical
mixture, and wood dust.
For excess wood cuttings, the workers pile up the woods and use as wood
fuel. For excess chemical mixtures that hardened are placed in a sack and
thrown away. And, for wood dust are stored in a sack and are for sale.

2.1.4 The Waste Material

In this study, wastes generated by the company are considered as
recyclable wastes. B and F Woodmaster has been in the woodcraft
industry for how many years so the excess wood cuttings generated per
week has been identified. For the Maze Souvenir Item is a new product
line and has not yet been mass produced so its excess generated per
week is yet to be identified. Quantification and costing of excess materials
is as follows.

Quantification and Costing of Excess Materials

Waste

Generated per thrice a

month
Excess Wood Cuttings
900 kg
Table 2. Costing of Excess Materials

Cost per multicab

Php500.00

The table above shows the quantification and costing of excess

materials, the company buy their materials per small truck for Php500.00.
Other Waste

Generated per
week

Cost if bought

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Dust
To be studied further
To be studied further
Table 3. Costing of Other Excess Materials

The table above shows the other wastes generated by the company which
will be another potential product made out of excess materials generated
by the company. In this study, the main focus only is the excess wood
cuttings which will be used in producing wooden maze souvenir item.

2.2

Structural Limitations

2.2.1 Space Constraints

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Exhibit 1. Vicinity Map of B&F Woodmasters

The exhibit above shows the vicinity map of the B and F
Woodmasters. A positioning image illustrates the location of the business.

Dimensions of the Manufacturing Area

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Exhibit 2. Manufacturing Area of B&F Woodmasters

Total Area = 22 feet x 28 feet

Total Area = 616 square feet
The exhibit above shows the area consumption of the B and F
Woodmasters. The said area is where the wooden maze souvenir items
will be made. The workstation of the existing product lines of the B and F
Woodmasters will be the same with the wooden maze souvenir item in
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order to maximize the available area. The total dimension of the

manufacturing area of B and F Woodmasters is 616 square feet.

2.2.2 Manpower Complement

In this study, the existing companys worker will be the workforce to
create the wooden maze souvenir item. With regards to the original
schedule of the workers, the researchers asked the time availability of the
workers per day. It is important to get the schedule of the workers in order
to avoid job disruption. Therefore, the schedule for the manufacturing of
the proposed product is highly dependent to the time availability of the
workers.

2.2.3 Production Facilities and Equipment

In the production of wooden maze souvenir item, the process is how
to convert excess cut woods into a unique product. There are tools,
facilities and

equipment that are needed to produce the product. Some

of those are already available since the beneficiary is the company itself,
and some are not available that need capital to purchase that enable the
workers to make the product in the fastest way.
Facilities and
Equipment
Sanding Machine
Table
Chairs
Steel Tape
Air Brush

Functions
Used to polish/soften the
texture of the wood
Serves as working table
Serves as working chair
Used in measuring the
woods
Used in applying paint

Status
Available
Available
Available
Available
Not Available

26

color in the frame and the

design of maze
Facilities and
Equipment
Bins
Paint Container
Gloves
Safety Goggles
Face Mask
Storage Rack

Functions
Serves as a container for
finished product and WIP
Used when worker
consume only small
amount of paint
Used as PPE
Used as PPE
Used as PPE
Used as storage of raw
materials and finished
products
Table 4. Tools and Equipment Needed

Status
Not Available
Not Available
Not Available
Not Available
Not Available
Not Available

Above table are the tools and equipment that is needed in

producing the product, some are not available in the beneficiary company.
2.2.4 Materials Inventory
Material Inventory is one way of determining what materials are
needed in producing the wooden maze souvenir item and making the
design of the maze. The table below shows the overall inventory and
availability of materials in the site.
Material

Acrylic Glass

Display

Status

Not available

27

Wood Glue

Material

Available

Display

Status

Sand Paper

Available

Wood Stainer

Available

Excess Wood
Available
Cuttings

28

Paint

Not available

Table 5. Raw Material Inventory

The table presented above is the materials needed to produce the

wooden souvenir item and their status if its available in the beneficiary
company. Only the fiber glass that will be used as a cover and the paint
that is needed for the design are the materials that are not available in
the beneficiary company.

29

CHAPTER III
COMPANY PROFILE AND ITS MICROENVIRONMENT
The existing setup of the company is that they were not able to
establish company logo, also the vision, mission, goals, objectives and
values since they are a small scale business. Therefore, below are the
proposed company logo, vision, mission, goals, objectives and values:

3.1

Company Profile and Proposed Company Logo

Company Name
Company Address
Contact Person

:
:
:

B&F Woodmasters
Sitio Pinamuyakan, Calidngan, Carcar
Mr. Alex Embalzado & Mrs. Florentia

Embalzado
Current Product Lines
: Souvenir items (key chain, paper weight)
Number of Workers
: 17
3.1.1 Proposed Company Logo

Exhibit 3. B&F Woodmasters Proposed Logo

The word B&F with a flag on it symbolizes that the company

promotes Nationalism and also the best of Cebu. The company does not
envision itself just to operate herein Cebu but also in the entire Philippines

30

and overseas. The word Masters was colored green to emphasize the
action taken by the company in nature conservation considering raw
materials used which was made from waste.

3.2

Proposed Vision, Mission, Goals, Objectives and Values

Vision
A top manufacturing company striving for excellence on its product
designs and services that meet and exceed the customers requirements.

Mission
To produce high quality and unique maze souvenir items that promote
environmental consciousness with the use of waste materials as well as to
empower the employees that will serve as a reflection of the companys
continuous improvements and growth. Safety of the customers is one
consideration in the product design. The product will not cater only the
local market but also overseas by taking advantage of the available and
applicable technologies. Any confidential information that might ruin the
companys image will always be heeded.
Nine (9)
Components
Products
Customers
Market
Technology
Philosophy

Segment in the Mission Statement

High quality and unique maze souvenir items
Safety of the customers is one consideration in
product design
The product will not cater only the local market
but also overseas
Taking advantage of available and applicable
technologies
Continuous improvements
31

Self-concept
Concern for Public
Image
Nine (9)
Components
Concern for Employees
Concern for Survival,
Profitability and Growth

Environmental consciousness
Any confidential information that might ruin the
companys image will always be heeded
Segment in the Mission Statement
Empower employees
Reflection of the companys continuous
improvements and growth.

Table 6. Components of Mission Statement

Proposed Goals
As manufacturer of maze souvenir item made from excess wood cuttings,
the B and F Woodmasters aims to:
1. Increase and sustain market competitiveness
2. Promote recycling of excess wood cuttings to create environmental
awareness to the public.
3. Dominate as the supplier of maze souvenir items in the entire Cebu,
Philippines and overseas.

Proposed Objectives
The company intends to:
1. To produce high quality products and environmentally sustainable to
impress customer specifications;
2. To optimize usage of excess wood cuttings.
3. To provide quality service for customer satisfaction.
4. To create an impact to the end user of the product- may it
psychologically or mentally.

32

Core Values
Resourceful- the company finds quick and clever ways to overcome
difficulties
Eco-friendly
Unity

- they value the importance of the environment

- the company moves as a whole and is united as one

Sturdy

- tells that the company is solidly built and unlikely to

fall down
Ethical

- the company values the people in general not just the

tangible profit

33

3.3

Critical Success Factors and Strategic Approach

It is important to know the critical success factor in the business, in order to help the organization to

know the things that need to focus in the future.

The use 4 Ps: Product, Placement, Price & Promotion

Effective use of Marketing Strategies

Skilled empowerment
and Competitive Employees
Employees are well trained & flexible to engaged employee

Mutual Agreement between the company & its supplier

The Resources

Competitive Advantage:
Product Differentiation

Proximity to employees & suppliers

The Product

Selection of Location

The product is uniquely made out of excess cut woods

Good Production Processes

Standardized Processes

Figure 3. Activity Map of Critical Success

Factors

34

Figure above shows the Activity Map of the Critical Success Factors
of the company. It is important to know the main activities to determine
the future success. B and F Woodmasters have the following critical
success factors:
a.)

Effective use of Marketing Strategies- it is the use of 4 Ps of

Marketing; Product, Placement, Price and Promotion in order

b.)

to attained its competitive advantage.

The Resources- the effective use of manpower, machine,
machine, materials and methods as the inputs that will lead to
the company to its success. Also funds and capital are needed

c.)

as resources.
The Product- one of its competitive advantage is the product
itself, for it is new in the market. The company making sure
that the product has a reasonable price. The customer helps
the company in minimizing the waste by buying the product

d.)

for it is made out of excess woods.

Good Production Processes- having a standardized operation
will be an aid in achieving competitive advantage. Low cost

e.)

and has a quality in producing the product.

Selection of Location- the location is near to the employees,
suppliers and competitors yet existed.

Strategic Approach
Product Differentiation is the competitive advantage and
strategy in designing the product since the product is unique and
35

new to the market. What makes the product different is that the
main material is from excess woods which already a waste of the
company and design will promote the tourism of Cebu. Also give
entertainment to the end user.

Critical Success Factors (CSF)

Strategic Approach
Effective
use
of
Marketing In the entire Product Life Cycle
Strategies

the

The Resources

Price and Promotion will be use.

The employees will be trained
and

4Ps-Product,

engaged

Placement,

into

employee

empowerment.
Mutual agreement between the
company and the supplier in
delivering the raw materials.
Make sure the availability of the

The Product

raw material.
Offers only a unique product
which is the souvenir item with
Good Production Process

maze.
The
processes
making

Selection of Location

the

involved
product

in
are

standardized.
The availability of employees,
suppliers.
Table 7. Strategic Approach

36

3.4

Business Model
KEY
ACTIVITIES

KEY
Beneficiary Company
o B
and
Woodmasters

Suppliers
o Citi
Hardware
Carcar
o Gaisano Carcar
o Worldwide
Home

Product Design
o Coming up with a
design
considering
the
market
preferences
Marketing
o Targeting market to
serve
Production
o Creation
of
the
product
considering

CUSTOMER
Sensitive to the Voice of
Customer (VOC)
o The
voice
of
customer will be
basis in designing
product

CHANNELS
Wholesalers
Websites and other Media
Platforms

KEY
RESOURCES

Equipments and Facilities

Waste Materials
Qualified Workers
Capital

the
the
the
the

CUSTOMER
SEGMENTS

Demographic
o Souvenir Shops and stalls
Geographic
o Within Metropolitan Cebu
Areas
which
includes
Lapu-Lapu City, Mandaue
City and Cebu City
Psychographic
o Firms
that
promotes
nature conservation and
tourism
of
the
Metropolitan Cebu Areas
Behavior
o Maze Lovers (people who
enjoy playing maze)
o Interested and Willing to
buy

VALUE PROPOSITION
Benefits of Maze Game
Features of the Product
Psychological Effect to the enduser
Customization
Offering high quality product

REVENUE
STREAMS
Sales of Product
o Purchases of the Maze
Souvenir Item

COST
STRUCTURE
Variable Cost
o Cost of Material
Fixed Cost
o Labor Cost
o Utility Cost
o Equipment
Maintenance
Figure 4. Business Model

37

Key Partners
In this study, the key partners are the suppliers of the materials used
in making the wooden maze souvenir item namely Citi Hardware, Gaisano
Carcar and Worldwide Home Depot. Also, the B and F Woodmasters will be
the key partner since their workforce will be used in the production of the
proposed product. B and F Woodmasters will be the supplier of the excess
wood cuttings which are the primary raw materials used in the maze.
Key Activities
The key activities of the business are the following: Product Design,
Marketing, and Production. Product design is where the team will develop
profitable products considering the constraints, and preferences of the
market. In marketing, the team must decide of who are the people to serve,
may it be business-to-business segmentation or business-to-consumer
segmentation. In this study, the segmentation used was business-tobusiness. The market of this study is the souvenir shops and stalls of
metropolitan cebu areas. Lastly, the last key activity is the production. This is
the creation of the product.
Value Proposition

A value proposition is a promise of value to be delivered. Its the primary

reason a prospect should buy from you.
In a nutshell, value proposition is a clear statement that

38

explains how your product solves customers problems or improves

their situation (relevancy),

delivers specific benefits (quantified value),

tells the ideal customer why they should buy from you and not from
the competition (unique differentiation).

Source: http://conversionxl.com/value-proposition-examples-how-to-create/

Exhibit 4. Value Proposition

The exhibit above shows what comprises the value proposition of a

product or a service.
In conceptualizing the product, there are factors to be considered.
Listed below are the value propositions of the wooden maze souvenir item of
the B&F Woodmasters:

Features of the Product

Benefits of playing maze
Psychological Effect to the end-user
Open for Customization
39

 Offering high quality product

Customer Relationships
Customer relationship is increasingly an important aspect in running a
business. In order to maintain a good relationship with the customer, the
company must be sensitive to the Voice of the Customer. In coming up with
the designs of the maze, the voice of the customers has been considered.
Customer Segments

Exhibit xx. Customer Segmentation

In every business, one company must decide of who are to serve

considering that the market is broad. Segmentation is important in order for
the company to be more focused about their product considering the needs
of the specific market.
In this study, the researchers specify the market to be served. It was
segmented based on geographic, demographic, psychographic and lastly the
behavior of the market.

40

Revenue Streams
Revenue stream represents the cash a company generates from each
customer segments. Income generation will come from the sales of the
product or the purchases of the product.
Channels
Channels are important since it serves as a media in promoting and
selling the product. The channels of the wooden souvenir item are websites
and other media and also the wholesalers.
Key Resources
Key resources are the resources necessary to create value for the
customers. The key resources of the B&F Woodmasters are equipments and
facilities, waste materials, qualified workers and capital.
Cost Structure
Cost structure refers to the types and relative fixed proportions of fixed
and variable costs that a business incurs.

3.5

Microenvironment of the Company

Microenvironment of the company describes the factors that may

affect the success of the business. This includes the suppliers of the raw
materials, marketing intermediaries, customers, competitive position and
competitors and the public.

41

Suppliers
Needed Resource
Material

Prospect Suppliers

Remarks

Acrylic

World Wide Home

Depot

The number of fiber glass

to purchase will be
dependent
to
the
quantity ordered.

Wood Glue
Sand Paper
Wood Stained
Paint
Air Brush
Gloves
Safety Goggles
Face Mask
Bullet Balls

Gaisano Carcar
Citi Hardware Carcar
Citi Hardware Carcar
Citi Hardware Carcar
Citi Hardware Carcar
Citi Hardware Carcar
Citi Hardware Carcar
Citi Hardware Carcar
Citi Hardware Carcar

In ordering the items, the

worker will go directly to
the manager to request
for the replacement of
the
said
item.
The
workers will inform the
manager ahead of time
to avoid job disruption.

Table 8. List of Supplier

The table above shows the name of the suppliers of the raw materials
to be used in making the wooden maze souvenir item. The selection of the
suppliers was based on the proximity of the prospect supplier in the
manufacturing area of B&F Woodmasters.
Marketing Intermediaries
Citi Hardware
Citi Hardware is a do-it-yourself warehouse type retail outlet. Its
primary business is retailing of finishing construction materials. It carries
more than 20, 000 items sourced out from different domestic and foreign
suppliers. It offers a variety of world-renowned brands with the latest design
innovation. Since it opened its first branch in Davao City in 1998, Citi

42

Hardware has maintained its passion for excellent customer service and has
grown tremendously nationwide.
(Source: http://www.citihardware.com/aboutus.php).

Gaisano Capital
Gaisano Capital is a corporate organization founded and based on a
culture

of

unity,

solidarity,

discipline,

work

dedication,

cooperation,

teamwork, concern and misunderstanding in amongst its employees

together with management.
(Source: http://www.gaisanocapital.com/about/).

Worlwide Home Depot

Worlwide Home Depot had its humble beginnings in 1976 as a local
hardware store that carried an array of hardware, construction, and electrical
supplies. In 2001, worldwide interiors design center was established to cater
to the growing needs of the customers for local and imported tiles,
construction

and

finishing

materials.

(Source:

http://www.worldwidehomedepot.com/our-story/).

Customers
The most important part of the business is the customers. They are the
reason why the production exists. And they are the end goal of the business,
since they are the one who creates a demand and established the
43

requirements of the product. The customer uses the wooden maze souvenir
as a souvenir.

Competitive Position and the Competitors

Competitive Position
The company strives to deliver highly differentiated maze souvenir
item to the market and ensures that the delivery of the product is fast.
Competitors
Name of the Company
Cebu Ornamental MultiPurpose Cooperative, Inc.
EG
Cebu
Corporation

Manufacturing

Diana Multicraft

Business Type

Address
Office
of
the
Prov'l.
Governor, Cebu Capitol,
6000 Cebu City
Unit E Cebu Light and
Industrial Park, Basak LapuToys, Souvenirs, Gifts,
lapu
City
6015
Cebu
Jewelry and Decors
Philippines
Rm. 201 A. Geson Bldg.,
Corner Castilex Road & M.
L. Quezon St., Cabancalan,
Mandaue City 6014 Cebu
Philippines
Table 9. List of Competitors

Other competitors were not included since they offer different product.
However, may still have to serve the same market.
Public
The final aspect of the microenvironment is the public. They have a
significant impact on marketing activities that contribute to customers
44

satisfaction with the product. That categorized into government, local,

general and internal public.
Government public
The local government of Cebu would help the company resolves the
issues that regards the legality of the operations of the business.
Internal public
The owner and the workers have good relationships with each other.
CHAPTER IV
PRODUCT DESCRIPTION
In an interview with Ms. Nelia V. Flores Navarro, DTI Cebu Provincial
Director, DTIs product development programs are now geared towards
improving the products of souvenir makers, including export companies
within the Gifts, Toys and Houseware group. Navarro said that while the DTI
has already established Tindahang Pinoy, located at Bridges Town Square
along Plaridel Street in Mandaue City, to showcase Cebus export products,
Cebu still needs various souvenir items like miniature copies of Magellans
Cross and the Basilica del Sto. Nio and t-shirts showcasing tourism
attractions in various cebu towns (https://ph.news.yahoo.com/cebu-souvenir-industrydevelopment-urged-101452380.html).

Since, there is a demand in creating souvenir items, the researchers

came up with a concept of using excess wood cuttings as raw materials for
the maze souvenir items. In order to compete with other gifts, toys and
houseware items offered to the market, the product was designed not just for
display purposes but also to entertain the user of the proposed product. In
this chapter, the name and uses of products, market preferences, product
features, characteristics and benefits, material specifications, parts list and
the bills of materials were also included.

45

4.1.1 Name and Uses of Products

Product Name:

Mazeaya

Product Definition:
Materials
Mazeaya is a maze souvenir item made from excess wood
cuttings.

Usage
For the Cebu City, this souvenir item promotes the tourism
attractions in various Cebu towns by placing the images of Lapu-Lapu,
Butanding, Basilica del Sto. Nio and etc.
For the End-user, this is not designed for display purposes but
also to entertain. This would challenge the analytical thinking of the
user. As an impact, the consumers will have the sense of Nationalism,
Patriotism, and Environmental Awareness.
4.1.2 Market Preferences on Product Design
POTENTIAL
MARKET

AVAILABLE
MARKET

% Willing to
buy the
product

CUSTOMER
PREFERENCES

Design of the
maze

Price46

% Interested
to buy the
product

TOTAL
RESPONDENTS
% NOT
Interested to
buy the
product
4.1.3 Pictorial Sketch

Customizable
% NOT Willing
to buy the
product

Exhibit 6. Probability Tree Diagram

Exhibit 7. Wooden Maze Souvenir Item

4.1.4 Exploded Drawing

Top View

47

Bottom
Exhibit 8. Exploded Drawing-Top View

Exhibit 9. Exploded Drawing-Bottom View

Isometric

48

Exhibit 10. Exploded Drawing-Isometric View

4.1.5 Orthographic Drawing

Top View

Exhibit 11. Orthography Drawing-Top View

Isometric View

49

4.1.6 Features and Benefits

The
important

Exhibit 12. Orthography Drawing-Isometric View

distinction
concept

between

in

the

developing

terms benefits and features is

and

marketing

product

an
or

service. Features are characteristics that your product or service does or has.
Features

Challenging
Fun maze to experience and to solve
Customer could demand what design they want
Psychological Effect to the user since the product relays a message of
Nationalism to every Filipino, this product reminded you to be proud of
your Nationality.

Benefits
Keep the mind active and build new brain cells that enhance memory
and cognition
Improve a persons ability to concentrate, plan, and focus on attention
and detail
Improve mental flexibility
Improve reasoning skills
Affordable
4.1.7 Characteristics of the Products
50

Strength and Durability

There are different kinds of wood and kamagong is one of them.
Kamagong is a hardwood found in the Phillippines and popularly used
as woodcraft material. Kamagong is also known as Iron Wood
because woodcutters say that a brand new chainsaw can only cut two
fully grown kamagong thus the name Iron Wood. The kamagongs
compressive strength reaches 7,310 Pascals which means it really is
very durable.
Compressive Strength
The compressive strength is the capacity of a material to
withstand loads tending to reduce size. It can be measured by plotting
applied force against deformation in a testing machine.
Overall Customer Appeal
Kamagong is somewhat unique and durable in a way that its
attractive to the customers. Its smooth surface makes it a compatible
material used to toys for kids. Kamagongs durability is unquestionable
thus making it a very high quality material. Its what the customer
wants because of its unique attractiveness in terms of uniqueness,
quality, and most importantly the cost is reasonable. The person who
will use the product will not just be reminded of that place he/she had
visited but also be entertained.
4.2

Materials Requirement Planning

4.2.1 Product Structure Tree
51

Product structure is an ordered breakdown of a product, typically

known as the Bill of Material (BOM). The bill of material is a list of the
parts or components, the description and quantity that are required to
build a product. The top level represents the finished product which is
the level 0 of the bill of material (BOM) and the items below or any
level is called the components or children.
A Product Structure is a representation of the way in which
the parts of a product fit together and interact, organized in levels of
detail based on structure. A product structure is used to manage
changes, testing, and problem resolution for complex products with a
large number of interdependent parts and functions.
Source:http://www.businessdictionary.com/definition/productstructure.html

52

Figure 5. Product Structure Tree

Figure above is the Product Structure Tree it is a hierarchical decomposition in making one unit
of Wooden Maze Souvenir Item, known as Bill of Material (BOM) referring to the level of product
assembly. It also shows the different parts and subassemblies in order to make the product. There
are three levels in this structure tree, Level 0 indicates the final product; level 1 applies the
subassemblies and components that is directly needed in the final product and level 2 and 3 are the
components needed to assemble the level 2.

53

4.2.2 Materials Specification

Material

Specification

is

set

of

requirements

and

essential

characteristics that the material needed. It contains necessary details about

the specific requirements, for quality inspection.
Part Name
Wooden

Material
Code
EW02

Material
Used
Excess

SP01
WG03
FG04

Woods
Sand Paper
Wood Glue
Acrylic
Epoxy

Flatform
(WF01)
Transparent
Cover (TC02)
Wooden
Edge (WE03)

Wooden
Partition
(WP04)
Packaging

EA05

1/8 gong

Make, Buy
or Collect
Make

1 pad
473 ml
1 sheet

Buy
Buy
Buy

Quantity

1 paint

Buy

EW02

Adhesive
Excess

1/8 gong

Make

SP01
WG03
WP07
EW02

Woods
Sandpaper
Wood Glue
Wood Paint
Excess

1 pad
473 ml
1 liter
1/4 gong

Buy
Buy
Buy
Make

WS03
SP01
WG03
PC01
AT02

Woods
Wood Stainer
Sand Paper
Wood Glue
Carton
Adhesive

1 liter
1 pad
473 ml
1 pieces
1 roll

Buy
Buy
Buy
Buy
Buy

Tape
Table 10. Material used in making Wooden Maze Souvenir Item

4.2.3 Parts List

Parts list is a list that provides the component parts used in making the
product. It shows the part name, part code, quantity needed each part. It is
where the make or buys decision found.
Part Name
Wooden Flatform
Transparent

Part Code
WF01
TC02

Quantity
1
1

Make or Buy
Make
Buy
54

Cover
Part Name
Wooden Edge
Wooden Partition

Part Code
WE03
WP04

Quantity
4
176

Make or Buy
Make
Make

Table 11. Parts List of Wooden Maze Souvenir Item

4.2.4 Bill of Materials

Bill of materials is referred to a structured part list, as it contains the same
information as a part list and information on the structure of the product like
the parts and raw material units necessary to manufacture one unit of the
product of interest.
Part Name

Material
Code

Price

Quantity

Wooden Flatform

EW02
SP01
WG03
FG04

200 per gong

19.76 per pad
41.50 per 50g
1090 per 24 feet

1/8 gong
1/2 pad
16.66 g
0.64 sq.

EA05
EW02
SP01
WG03
WP07
EW02
WS03
SP01
WG03
PC01
AT02

sq.
270 per 1 liter
200 per gong
19.76 per pad
41.50 per 50g
270 per 1 liter
200 per gong
118.70 per 1 liter
19.76 per pad
41.50 per 50g
10 per piece
50 per roll

(WF01)
Transparent Cover
(TC02)
Wooden Edge
(WE03)
Wooden Partition
(WP04)
Packaging

1/8 liter
1/8 gong
1/2 pad
16.66 g
liter
1/8 gong
liter
1 pad
16.66 g
1 piece
1 roll
Total
Table 12. Bill of materials per product

Material
Cost
(Php)
25
9.88
13.83
29.49
33.75
25
9.88
13.83
67.50
25
29.68
19.76
13.83
10
50
376.43

Overhead Cost

55

Type

Equipment

Power
(kw)

Qty

Electricit
y Rate
(kw/hr)

Electricit
y Rate
(kw/min)

Usage
Time
(min)

Electricit
y
Cost/day

Productio
n
Equipmen
t

Motor

.40

10.37

.17

85 min

Php 14.45

Airbrush
Compressor

.12

10.37

.17

40 min

Php 6.80

Total

Php
21.25

Table 13. Total overhead cost per product

The table above shows that there is an overhead cost amounted to

Php21.25 in making the wooden maze souvenir item.
Labor Cost
Process

No. of Worker

Rate per piece

Total product
per day

Labor Cost

Pattern
Cutting
Sanding
Assembling
Base Forming
Attaching
Painting
Ball Placing
Packing

100

100

Total

Php 100

Table 14. Total labor cost per product

The table above shows the labor cost in making wooden maze souvenir item.
The total product to be produced by one worker was assumed to be one (1)
per day considering that although the design is simple but there are
processes that is tough to execute.

56

Total Unit Cost

Material Cost
Labor Cost
Overhead Cost
Total

Cost
376.43
21.25
100
Php 497.68
Table 15. Total unit cost per product

Table 1, 2, 3 and 4 shows the bill of materials, overhead cost, labor

cost and the total unit cost per product. Assuming the product that will take
1 day to assemble, for it has tiny pasts that will take longer time to
assemble.

Source:http://www.nationalbookstore.com.ph/school-office-supplies/tapesadhesives.html?
p=1

57

CHAPTER V
MARKETING ASPECT
This chapter of the study presents the result of the market study in
order to obtain the preferences of the target market. These preferences were
then considered as the basis in developing a product. The markets of the
study are the souvenir shops and stalls within Metropolitan Cebu Areas which
includes Lapu-Lapu City, Mandaue City and Cebu City.
5.1

Target Market
The target markets of the business are interested and willing owners or

attendants of souvenir shops and stalls located at the Metropolitan Cebu

Areas Lapu-Lapu City, Mandaue City, and Cebu City.
5.1.1 Catchment Area

58

Exhibit 13. Catchment Area

The exhibit above shows the different catchment areas of the business
composing the three highly urbanized cities in Cebu province.

5.1.2 Description of Industry

Key players

Buying centers are groups of people within organizations who make

purchasing decisions. Large organizations often have permanent
departments that consist of the people who, in a sense, shop for a
living. They are professional buyers, in other words. Their titles vary. In
some companies, they are simply referred to as buyers. In other
companies, they are referred to as purchasing agents, purchasing
managers, or procurement officers. Retailers often refer to their buyers

as merchandisers.
Users are the people and groups within the organization that actually
use the product. Frequently, they initiated the purchase in the first
place in an effort to improve what they produce or how they produce it.
Users often have certain specifications in mind for products and how

they want them to perform.

Influencers are people who may or may not use the product but have

experience or expertise that can help improve the buying decision.

Gatekeepers are the people who will decide if and when you get
access to members of the buying center. These are people such as

59

buying assistants, personal assistants, and other individuals who have

some say about which sellers are able to get a foot in the door.
The decider is the person who makes the final purchasing decision.

5.1.3 Segmentation Basis

Demographic Segmentation
Demographic segmentation is often used in market segmentation for
the reason that the variables are easy to identify and measure. The
demographic variables are associated with sale of many products and
services and finally they provide a description of the target customers so
media buyers and others can target a desire target market. In this study, the
demographic

segmentation

variable

focuses

on

the

location

the

geographical location of the target market.

Geographic Segmentation
Geographical
Location
Cebu City
Lapu-Lapu City
Mandaue City
Total

Number of
Store/Shops

Percentage

Stratified
Sample

34
27.42%
10
72
58.06%
42
18
14.52%
3
124
100%
55
Table 16. Geographic Segmentation

Total
Questionnaire
s
10
42
3
55

60

Percentage Distribution of the Target Market

15%

27%

Cebu City
Lapu-Lapu City
Mandaue City

58%

Figure 6. Percentage Distribution of the Target

The FigureMarket
above shows the distribution of the target market. It implies
that the City of Lapu-Lapu comprises 58% of the total market in this study.
Then, it is followed by Mandaue City which has 27%. Lastly, the Mandaue
City which is 15% of the total market. In an interview with the City Treasurers
Office of Mandaue Personnel, the number of souvenir shops and stalls are
minute since Mandaue City is not more on souvenir shops and stalls but
more on heritages.
Behavioral Segmentation

City
Cebu City
Lapu-Lapu
City
Mandaue
City
Total

Total
Respondent
s
10
42
3

Wooden Maze Souvenir Items

First Time Seller
Interested
Percentage
Not
Interested
9
16.36%
1
36
65.45%
6
3

5.46%

55
48
87.27%
7
Table 17. Interested and Not Interested First Time Seller

Percentage
1.82%
10.91%
--12.73%

61

City
Cebu City
Lapulapu
City
Mandaue
City
Total

Wooden Maze Souvenir Items

First Time Seller
Total
Respondent
Willing to
Percentage Not Willing
s
buy
to buy
10
7
12.73%
3
42
30
54.54%
12
3

3.64%

Percentage
5.45%
21.82%
1.82%

55
39
70.91%
16
29.09%
Table 18. Willing to buy and Not Willing to buy First Time Seller

Psychographic Segmentation
Psychographic segmentation is to define a market segment. This is
similar to behavioral segmentation. Psychographic segmentation also takes
the psychological aspects of consumer buying behavior into accounts. In
psychographic

segmentation,

buyers

are

firms

that

promote

nature

conservation and tourism of the Metropolitan Cebu Areas.

5.1.4 Operating Characteristics
How transaction is made is defined by the operating characteristics, what
they offer, and preference in terms of suppliers. Souvenir stores provide
souvenir items that kept as a reminder of a place you visited or event you
have been. Most of these stores accept supplies from a number of suppliers
depending on the kind of the item. However, there are some stores receive
supplies from their exclusive suppliers only.
5.1.5 Purchasing Process and Approaches
Stages in the B2B Buying Process
A need is recognized

The need is described

and quantified

62

Potential suppliers are

searched for
Qualified suppliers are asked to
complete responses to requests
for proposal (RFPs)

The proposals are evaluated

and supplier(s) selected
An order routine is
established
A postpurchase evaluation is
conducted and the feedback
provided
to the vendor
1. A need is recognized.
Someone
recognizes that the organization has a
need that can

Figure 7. Stages in the B2B Buying

Process
be
solved by purchasing a good

or service. Users often drive

this stage.
2. The need is described and quantified. Next, the buying center, or
group of people brought together to help make the buying decision, work to
put some parameters around what needs to be purchased. In other words,
they describe what they believe is needed, the features it should have, how
much of it is needed, where, and so on. For more technical or complex
products the buyer will define the products technical specifications. Users
and influencers come into play here.
3. Potential suppliers are searched for. At this stage, the people
involved in the buying process seek out information about the products they

63

are looking for and the vendors that can supply them. Most buyers look
online first to find vendors and products, then attend industry trade shows
and conventions and telephone or e-mail the suppliers with whom they have
relationships. The buyers might also consult trade magazines, the blogs of
industry experts, and perhaps attend Webinars conducted by vendors or visit
their facilities. Purchasing agents often play a key role when it comes to
deciding which vendors are the most qualified.
4. Qualified suppliers are asked to complete responses to requests
for proposal (RFPs). Each vendor that makes the cut is sent a request for
proposal (RFP), which is an invitation to submit a bid to supply the good or
service. An RFP outlines what the vendor is able to offer in terms of its
productits quality, price, financing, delivery, after-sales service, whether it
can be customized or returned, and even the products disposal, in some
cases. Good sales and marketing professionals do more than just provide
basic information to potential buyers in RFPs. They focus on the buyers
problems and how to adapt their offers to solve those problems.
Oftentimes the vendors formally present their products to the people
involved in the buying decision. If the good is a physical product, the vendors
generally provide the purchaser with samples, which are then inspected and
sometimes tested. They might also ask satisfied customers to make
testimonials or initiate a discussion with the buyer to help the buyer get
comfortable with the product and offer advice on how best to go about using
it.
64

5. The proposals are evaluated and supplier(s) selected. During this

stage, the RFPs are reviewed and the vendor or vendors selected. RFPs are
best evaluated if the members agree on the criteria being evaluated and the
importance of each. Different organizations will weight different parts of a
proposal differently, depending on their goals and the products they
purchase. The price might be very important to some sellers, such as
discount and dollar stores. Other organizations might be more focused on
top-of-the-line goods and the service a seller provides.
6. An order routine is established. This is the stage in which the actual
order is put together. The order includes the agreed-upon price, quantities,
expected time of delivery, return policies, warranties, and any other terms of
negotiation. The order can be made on paper, online, or sent electronically
from the buyers computer system to the sellers. It can also be a one-time
order or consist of multiple orders that are made periodically as a company
needs a good or service.
7. A postpurchase evaluation is conducted and the feedback
provided to the vendor. Just as consumers go through an evaluation
period after they purchase goods and services, so do businesses. The buying
unit might survey users of the product to see how satisfied they were with it.
Some buyers establish on-time performance, quality, customer satisfaction,
and other measures for their vendors to meet, and provide those vendors
with the information regularly, such as trend reports that show if their
performance is improving, remaining the same, or worsening.
65

Purchasing Process
Purchasing a product, customer usually demand and the manufacturer will
deliver the product. the souvenir stores will contact the manufacturer when
buying the product. In buying the product, the necessary negotiation will be
done which affect the marketing mix in different product life cycle stage.

Figure 8. Purchasing Process

Figure above shows the process in purchasing a product.

Purchasing Approaches
Purchasing approach is a criterion of the establishments to choose
from with regards to which supplier they are going to consider. They also
consider suppliers with sense of urgency with regards to delivery and
service.

5.2

Market Study Results

66

The researchers conducted its survey to the three most highly

urbanized cities in Cebu which includes Lapu-Lapu City, Mandaue City, and
Cebu City since the target markets are its souvenir shops and stalls. The
researchers used stratified sampling.

City
Lapu-Lapu
Cebu
Mandaue
Total

Number of
Souvenir
Stratified
Percentage
Shops and
Sampling
stalls
72
58.06%
42
34
27.42%
10
18
14.52%
3
124
100%
55
Table 19. Number of Souvenir Shops and Stalls

Total
Questionnaire
s Distributed
42
10
3
55

The number of souvenir shops and stalls were based from the lists
given by the City Treasurers Office of Lapu-Lapu City, Mandaue City and Cebu
City.

Formula for Computing Forecast Population

PF= Pn + (Pn x PR)
Where:
PF = Forecasted Population

PR = Annual Growth Rate

Pn = Population in the Base Year

Sample Computation (Lapu-Lapu):

67

PF 2014
PF 2014

= 72 + (72 x 2%)
= 73.44 74 souvenir shops

CITY

LAPU-LAPU
MANDAUE
CEBU
TOTAL

CITY

LAPU-LAPU
MANDAUE
CEBU

CITY

TOTAL

Forecasted Years
2014
2015
2016
2017
Number of
Number of
Number of
Number of
Souvenir
Souvenir
Souvenir
Souvenir
Shops and
Shops and
Shops and
Shops and
Stalls
Stalls
Stalls
Stalls
72
74
76
78
34
35
36
37
18
19
20
21
124
128
132
136
Table 20. Forecasted Number of Shops and Stalls- 1 of 2

2018
Number of
Souvenir
Shops and
Stalls

Forecasted Years
2019
2020
Number of
Number of
Souvenir
Souvenir
Shops and
Shops and
Stalls
Stalls

2021
Number of
Souvenir
Shops and
Stalls

80
38
22

82
39
23

84
40
24

86
41
25

2018
Number of
Souvenir
Shops and
Stalls

2019
Number of
Souvenir
Shops and
Stalls

2020
Number of
Souvenir
Shops and
Stalls

2021
Number of
Souvenir
Shops and
Stalls

140

144

148

152

2022
Number
of
Souvenir
Shops
and
Stalls
88
42
26
2022
Number
of
Souvenir
Shops
and
Stalls
156

Table 21. Forecasted Number of Shops and Stalls -2 0f 2

The forecasted number of souvenir shops and stalls would be use in

identifying the sales projection of Mazeaya.

5.2.1 Qualitative Demand Analysis

68

Demand is very important in any business activity, it would help to

give the business organization what product to produce in the market that
can generate impact and if this product is feasible to the market.
Business organization decided to offer this kind of product to promote
the tourism of Cebu particularly to the foreign tourists. Customers are
considered to buy the product since it is new and eco- friendly since it is
made out of excess woods that are already a waste of the company. These
are the descriptive evaluation that the product can penetrate in the market
and patronize by consumer:

Low cost product;

The creativeness and uniqueness of the product;
The product give entertainment and belongingness of the end user;

and
The product promote that waste can be turn into a profitable product.

5.2.2 Quantitative Demand Analysis

Demand Analysis

No.

Name of Shop

Qty of Purchase
(units)

1
2
3
4
5
6

Stall A
Stall B
Stall C
Stall D
Stall E
Stall F

30
5
15
30
15
5

Frequency of
Buying
1Y
3M
2Y
2M
1Y
2M

Monthl
y
Purcha
se
(units)
2
15
2
60
1
10

Annual
Purchas
e
(units)
30
180
30
720
15
120

69

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Stall G
Stall H
Stall I
Stall J
Stall K
Stall L
Stall M
Stall N
Stall O
Stall P
Stall Q
Stall R
Stall S
Stall T
Stall U
Stall V
Stall W
Stall X
Stall Y
Stall AB
Stall AC
Stall AD
Stall AE
Stall AF
Stall AG
Shop A
Shop B
Shop C

No.

Name of Shop

35
36
37
38
39
40
41
42
43
44

Shop D
Shop E
Shop F
Shop G
Shop H
Shop I
Shop J
Shop K
Shop L
Shop M

15
10
5
20
30
3
15
20
15
10
30
5
15
15
30
10
15
30
15
15
15

1Y
1Y
2M
2M
2M
2M
2Y
2M
3M
2Y
2M
2M
2M
2M
M
2Y
2Y
1Y
2Y
1Y
2M

15
15
15
15
15
15
15

2M
2Y
2M
2M
2M
2M
3M

1
1
10
40
60
6
2
40
45
1
60
10
30
30
30
1
2
2
2
1
30

30
2
30
30
30
30
45
Monthl
Table 22. Annual Market Demand 1 of 2
y
Qty of Purchase
Frequency of
Purcha
(units)
Buying
se
(units)
30
2M
60
20
2M
40
15
2M
30
10
3M
30
30
2M
60
15
2M
30
100
2Y
16
5
2M
10
50
3M
150
5
2M
10

15
10
120
480
720
72
30
480
540
10
720
120
360
360
360
10
30
30
30
15
360
360
30
360
360
360
360
540
Annual
Purchas
e
(units)
720
480
360
360
720
360
200
120
1800
120

70

45
46
47
48
49
50
51
52
53
54
55

Shop N
Shop O
Shop P

15
10
15
Shop Q
5
Shop R
20
Shop S
15
Shop T
10
Shop U
10
Shop V
5
Shop W
15
Shop X
5
Total Annual Demand
Table 23. Annual Market Demand 2

2M
2M
M
M
2Y
2M
2Y
3Y
2M
Y
2M

30
20
15
5
4
30
2
3
10
2
10
1258

360
240
180
60
40
360
20
30
120
15
120
15,122

of 2

Shown in the Table 23 is the total annual market demand considering

all the respondents are willing to purchase the product. Refer to the Legend
below for the frequency of buying. The names of the shops and stalls were in
the coded form since it is confidential.
Legend: Frequency of Buying
M- Monthly
2M- Twice a Month
3M- Thrice a Month
Y- Yearly
2Y- Twice a Year
3Y- Thrice a Year

Average Annual Purchase

The average annual purchase will be useful for the projection of
the
annual demand thus, after determining the annual demand based from
the
result of the survey, the average annual purchase should be
determined.
Average Annual Purchase

= (total annual demand) / (total

respondents)
71

= 15,122 units / 55 shops

Average Annual Purchase = 275 units
5.2.3 Supply Analysis

Citi
Hardware
Cacrcar

Gaisano
Carcar

B&F
Woodmaste
rs

Souvenir
Shops and
Stalls

Worldwide
Home
Depot
Figure 9. Supply Analysis of Mazeaya

The figure above shows the suppliers of the raw materials to be

used by B&F Woodmasters in the production of Mazeaya. Then, B&F
will going to deliver the ordered Mazeaya to its market.

5.2.4 Market Share Estimation

The startup market share is being set predictably at 45%
considering the different factors; the product being offered is new to
the market, there is no direct competitor produce the same product
and there is small identified customers who purchase the product.
Potential Market
72

Interested
City
Cebu
Lapu-Lapu
Mandaue
Total

No. of
Responden
ts
10
42
3
55

Interested

Percentag
e

Not
Interested

9
16.36%
36
65.45%
3
5.46%
48
87.27%
Table 24. Potential Market

1
6
0
7

Percentag
e
1.82%
10.91%
--12.73%

Potential Market is the firm that is interested of buying wooden

maze souvenir item. It is identified by multiplying the total respondents
with the percentage of the interested respondents.
Potential Market = (total respondents) x (% of interested)
= 55 respondents x 0.9032
= 50 shops
Available Market
Available Market is the firm that is willing to buy the wooden
maze souvenir item. Below is the tabulated number of shops and stalls
that are willing and capable to buy the proposed product.

City
Cebu
City
Lapu-Lapu
Mandaue
Total

Willing to Buy
No. of
Willing to
Percentag
Responden
Buy
e
ts
10
7
12.73%
No. of
Willing to
Percentag
Responden
Buy
e
ts
42
30
54.54%
3
2
3.64%
55
39
70.91%
Table 25. Available Market

Not
Willing to
Buy
3
Not
Willing to
Buy
12
1
16

Percentag
e
5.45%
Percentag
e
21.82%
1.82%
29.09%

Capable to Buy
City
Cebu
Lapu-Lapu
Mandaue

No. of
Responden
ts
10
42
3

Capable to
Buy

Percentag
e

6
34
1

10.91%
61.82%
1.82%

Not
Capable to
Buy
4
8
2

Percentag
e
7.26%
14.55%
3.64%

73

Total

55
41
74.55%
Table 26. Capable to Buy Market

14

25.45%

In identifying the capable to buy market, the researchers based it

from the allocated budget of the shop and stall compared to the price
set by the researchers. The price of the wooden maze souvenir item is
Php497.68. According to the survey result, there are 4 in Cebu, 8 in
Lapu-Lapu and 2 in Mandaue that are considered as not capable of
buying since the allocated budget is below the price of Mazeaya. For
the computation of the price please refer to page 55.
Available Market = Potential market x % of willing x % Market
Perceived
Capable of Buying
= 50 shops x 0.9071 x 0.7455
= 34 shops
Market Share
Market share is the result of multiplying the available market
with the percentage of the market share. The 10% in the computation
is the assumption of the researchers.
Market Share

= available market x % of market share

= 34 shops x 0.10

Market Share

= 4 shops

Sales Projection
Year

Number of
Souvenir
shops and
stalls

%
Intereste
d
market

Potential
Market

2014

124

87.27%

108

2015

128

87.27%

112

2016

132

87.27%

115

%
Willin
g
Marke
t

70.91
%
70.91
%
70.91
%

Market
Capabl
e of
Buying

Availabl
e
Market

Market
Share
Percentag
e

Marke
t
Share

74.55%

57

10%

74.55%

59

12%

74.55%

61

14%

74

2017

136

87.27%

119

2018

140

87.27%

122

70.91
%
70.91
%

74.55%

63

16%

10

74.55%

65

12%

Table 27. Sales Projection of Mazeaya

YEAR

Forecaste
d Number
of Shops
and Stalls

Market
Share
Percentage

Market
Share

Annual
Average
Purchase

Annual
Demand

2014
2015
2016
2017
2018

124
128
132
136
140

10%
12%
14%
16%
12%

6
7
9
10
8

275
275
275
275
275

1670
1925
2475
2750
2200

Table 28. Forecasted Annual Demand

Forecasted Annual Demand

3000
2500
2000

Annual Demand

1500
1000
500
0
2014

2015

2016

2017

2018

Figure 10. Forecasted Annual Demand

The above chart shows the annual demand trend of the

Three-Layered Tire Planter for five years.

75

5.3

Marketing Mix Decisions

5.3.1 Product
B & F Woodmasters produces souvenir items like
keychains, paper weight, refrigerator magnet, mini dolls, and
the wooden maze. The wooden maze is the latest product line
of B & F Woodmasters made up of saw dust glued together. Its
colors

and design are customizable by the customers

depending on what preference they want.

Product Mix
Product mix refers to the total number of product lines
the company is offering to the market. B & F Woodmasters
specifically has 5 product lines including the latest wooden
maze. The company is to monitor the new produced product
mainly in terms of sales.

76

Existing Product Lines

B and F Woodmasters products also have different type
of product lines produced, these are:
Product Lines
Keychain

B AND F WOODMASTERS
Image

Description
The keychain design can
vary from wooden turtles,
fishes, tucans, etc.

Paper weight

The paper weights

purpose is to prevent
papers from being blown
away.

Refrigerator magnet

Used as beautification for

the refrigerator.

Mini dolls

The collectible mini doll is

a souvenir item. The
design can be changed
depending on the
customer.

Table 29. B&F Woodmasters Existing Product Lines

Proposed Product Lines

In order for the company to survive from tight
competition of souvenir item manufacturers, the researchers
then came up with profitable products which are still made
from the excess wood cuttings and saw dusts. Here are the
proposed products:
77

Product Lines

B AND F WOODMASTERS
Image

Saw dust as fuel

Mazeaya

Description
Saw dust put together and
used as fuel for heat
source

A
wooden
maze
for
children to play with and
used as a souvenir item

Table 30. Proposed Product Lines

Levels of Product

Exhibit 14. Three Levels of a Product

First Level - The Core Product

78

The core product is the benefit of the product that is

very valuable to the buyer. The core product of the wooden
maze is the stimulation of ones mind while being a tangible
reminder of a memorable event. It promotes creativity and
uniqueness.

Second Level The Actual Product

The actual product is the tangible benefit from a
product; or the product itself. Our actual product is the
wooden maze made from glued saw dusts and its features is
customizable depending on the customer.
Third Level The Augmented Product
The

augmented

improvement

of

product
product.

is

The

non-value

adding

non-value

adding

improvement of the wooden maze is the warranty of the

product. If the product gets destroyed or non-functioning due
to some factory defect, it is to be replaced by the company for
free.

Branding
The brand name for the new product line of B & F
Woodmasters is Mazaya. Mazaya is derived from the word
masaya which means happy and the word maze is
79

inserted. This name generally means the maze that gives

happiness. The maze gives happiness, in a way that it is
enjoyable when played and also gives pleasure as a form of
remembrance for somewhere memorable youve been to.

Positioning
The Mazaya is positioned towards the market that has
Low cost and High Quality. The Mazaya is very durable and
needs a great amount of skill to produce one. As to compare
the Mazeayas price to other souvenir items, it shows that
Mazeaya is low in price.

Packaging
B & F Woodmasters use plastic bag for the packaging of
its souvenir items and is also applicable to the wooden maze.

5.3.2 Price
The product pricing is one of the most critical part in
having a business. Deciding on a products price is influenced
by multiple factors such as total cost of the product, demand
of

the

product,

marketing

competition

strategy.

competitions

price

The
of

towards

price
its

may

product,

the
be

market,

based

penetration

and

on

the

which
80

introduces a product at a low price, then theres skimming

which is the opposite of penetration because it establishes
high price point.
Pricing should take into account the following factors:
1.
2.
3.
4.
5.

Fixed and Variable cost

Competition
Company Objective
Proposed positioning strategies
Target group and willingness to pay

(http://www.learnmarketing.net/price.htm)

These factors affect the pricing significantly and should

be taken into account. An organization can adopt a number of
pricing strategies, the pricing strategy will usually be based
on these factors.

New Product Strategy

The researchers used the cost-plus pricing strategy in
determining the Mazeayas specific price. The cost-plus
strategy is the setting of price at a certain profit margin added
to the production cost. The researchers decided to mark-up
the price at YY% of the product cost.
Sample Formula:
Selling Price = Unit Cost + (Unit Cost * YY%)

81

Pricing Policy/Rules
Pricing policy can strongly support in gaining a
good strategy. It also has its advantages and disadvantages in
determining the specific price for a product.
-

A good manufacturing design can minimize cost of

production and thus can set the price to its lowest

point, in a way that profit can still be achieved.

Discounts may also be possible when customers
purchase a very large amount of the products.

5.3.3 Placement
Placement is making the product more accessible for
the customers. The wooden maze can be bought in souvenir
shops and for customers to have more access to the Mazeaya,
there should be a store near the customer.

Value Delivery Network and their Functions

Value delivery is under the scope of supply chain.
Supply chain includes the marketing, distribution, production,
finance, and customer service for the different locations. B & F
Woodmasters is being supplied by private suppliers who
supplies wood which is the main raw material of the
companys products. Some of the waste material such as saw

82

dusts are also bought by some private entities to be used as

charcoal.

Channel Design Decisions

What the consumer wants for the Mazeaya is that it
must be durable and worth the pay. The company will make
sure the products be in excellent condition and no defects.
Another concern would be the accessibility of the shops that
will sell the product. Theres not much alternative that can be
tackled about accessibility but just to put the shops near to
where the majority of the customers are residing.
5.3.4 Promotions
Promotion of the product is generally to make all
potential customers and investors be informed about the
product.

Marketing Communication Mix

Some

of

the

useful

strategies

of

marketing

are

advertising, referrals from satisfied customers, public relations

and sales promotion. The amount of sales is significantly
dependent on the marketing of the product.
In the introductory stage of the Mazeaya, first the
company should spread the word by using printouts and
83

brochures. Having the potential customers see the product

can help them decide to buy. Next is to tell the people about
the Mazeaya through word of mouth and social media
because majority of the people keeps update on social media
statuses. These will help increase the sales and make B & F
Woodmasters improve economically by promoting their new
product.
Promotional Budget
The creation of brochures involve an addition to cost
and by making a brochure with 6 by 4 inches will cost each
copy Php 2.50. B & F Woodmasters will produce about 100
copies to be placed mostly on souvenir sites, and it will cost
Php 370 including the other materials to be used and the
transportation cost. The spreading of the word in social media
sites can be done without cost but the company decided to
put a budget of Php 50 for the cost of renting a computer in
computer shops.

5.4

Life Cycle Strategies

The product life cycle is an important concept in marketing. It

describes the stages a product goes through from when it was first
thought of until it finally is removed from the market. The main stages of

84

the product life cycle are introduction, growth, maturity and saturation or
decline stage.
The classic product life cycle has illustrated in the figure below:

Figure 11. Life Cycle Strategy

5.4.1 Introduction Stage

Introduction stage is bringing Mazeaya into the market. These
include marketing activity and promotion of the Mazeaya being
introduced to Cebu City, Lapu-lapu City, and Mandaue City creating
awareness by informing the benefits and features of the product.
This has a vital role for the economic success of the product since
the public awareness is whats at stake. B & F Woodmasters will use

85

brochures and online advertisement as means of spreading

information about the product.

Marketing
Mix

Product

Placement

Price
Promotion
s

Market
Characteristic
s
Offer product
flexibility

Strategy
Introduce improvement on the product
by adding more choices for color and
design.

Distribution point will be expanded so

as to seek other markets who will buy
the product.
Stabilize the buying power of the
Declining
customer. Price is made based on the
cost of the product then set it low.
Build awareness and interest to the
Moderate
customer by inviting and presenting
our product to the market
Table 31. Introduction Stage

Maximize
distribution

5.4.2 Growth Stage

This is where we maximize the profit. The objective is to
increase sales and growth, and because of higher competition B & F
Woodmasters aim to maintain growth and thrive in this stage.
Create more options in its features and constantly innovate ideas.
Increase public awareness to maximize possible market and can be
done by online advertisement and brochures.
Marketing
Mix
Product

Market
Characteristic
s

Strategy

Improve service

Improve service in terms of delivery

and discount for bulk orders.

86

Placement
Price
Promotion
s

Make the product accessible to all

possible customers.
The price is set to its highest possible
Maximize
profit to take advantage the growth of
the product
Constantly promote the product to
Constant
stick the product name to all
customers.
Table 32. Growth Stage
Constant

5.4.3 Maturity Stage

In this stage, the company is to improve the promotions by
having better advertising campaign and also to lower the price for
better sales. This is where price wars occur and thus its important
for B & F Woodmasters to be flexible in pricing to survive this stage.
Its best to introduce sales discount because competition will likely
increase significantly. Differentiating the product will make the
Mazeaya unique.
Marketing
Mix
Product
Placement
Price
Promotion
s

Market
Characteristic
s

Strategy

Mazeaya needs to constantly improve

its design and features.
Slow pace
Create distribution points.
Set the price close to the competitions
Unpredictable
price
Promotion of the product is best at this
Very high
stage
Table 33. Maturity Stage
Constant

5.4.4 Decline Stage

In decline stage profits and sales will significantly decrease
due to the possibility of irrelevancy of the product. The product will
87

no longer be important thus causing decrease in growth. B & F

Woodmasters strategy will be decreasing the cost and lessen
spending.
Marketing
Mix
Product
Placement

Market
Characteristic
s

Strategy

Decreasing

The less profitable products will likely

be phased out.

Selective

Price

Lessen

Promotion
s

Slow

Store availability are now shrinking

The price will be set to its lowest
possible size and profit will be the
least.
Keep the loyal customers only

Table 34. Decline Stage

88

Bibliography
BOOK:
[1] Jay Heizer, Barry Render, Principle of Operations Management, 4 th
ed. , Prentice Hall Inc., 2001
[2] William J. Stevenson, Operations Management, 8th ed., McGrawHill

Companies, Inc., 2005.

UNPUBLISHED THESIS:
[1] Ana Vera A. Degamo, Carah Mae S. Garnica, Jossie M. Magno,
Lovely Faith R. Placido, Fritz N. Sabella, (2013) Marketing Study of a
Three-Layered Tire Planter for Highly Urbanized Households of Cebu
using Scrap Tires and Metals: A Proposed Product Line for Rosario
Cala Tire Plot Manufacturing
ONLINE REFERENCES
[1] http://www.boomers-with-elderly-parents.com/maze-games.html
[2] https://www.boundless.com/marketing/marketing-channels/
[3] http://www.tourism.gov.ph/pages/industryperformance.aspx
[4]
http://travel.cnn.com/explorations/escape/philippines/whats-problem
philippine-tourism-918924

10

Appendix A
Research Proposal Form

11

12

13

14

PERSONAL BACKGROUND
Name
Address
Date of Birth
Mothers Name
Occupation
Fathers Name
Occupation

: Jeffrey G. Andoy
: Looc Locatha Lapu-Lapu City
: October 20, 1993
: Cleofe G. Andoy
: Housewife
: Lucas L. Andoy
: Deceased

EDUCATIONAL BACKGROUND
Elementary Education
School
: Madrid Central Elementary School
2000-2006
Address
: Madrid Surigao del Sur
Achievement :

Year:

Secondary Education
School
: Gun-ob National High School
Year: 2006-2010
Address
: Gun-ob Lapu-Lapu City
Achievement : First Honorable Mention
Tertiary Education
School
: Cebu Technological University
Year: 2010- 2013
Address
: M.J. Cuenco Ave., Cebu City
Degree
: Associate Industrial Engineering
School
2013- Present
Address
Course

: Cebu Institute of Technology-University

Year:

: N. Bacalso Ave., Cebu City

: Bachelor of Science in Industrial Engineering

AFFILIATIONS
Organization
Industrial Engineering
Council
Philippine Institute of

Position
Member

Year
2013-Present

Member

2010-Present
15

Industrial Engineers
Industrial Engineering
Leadership Expedition
Batch 8
Industrial Engineering
Leadership Expedition
Batch 8
PERSONAL BACKGROUND
Name
Address
Date of Birth
Mothers Name
Occupation
Fathers Name
Occupation

Vice-President

2013-2014

Alumnus

2013-2014

: Gremorri Xenin L. Nablo

: Alumnus, San Antonio Village, Cebu City
: January 7, 1991
: Jennifer Nablo
: Office Manager
: Graciano Nablo
: Senior Manager

EDUCATIONAL BACKGROUND
Elementary Education
School
1998-2004
Address

: LIDE Learning Center Incorporated

Year:

: LIDE Staff Housing, Isabel, Leyte

Secondary Education
School
2004-2008
Address

: LIDE Learning Center Incorporated

Year:

: LIDE Staff Housing, Isabel, Leyte

Tertiary Education
School
2009-2012
Address
Course

: University of San Carlos

School
present
Address
Course

: Cebu Institute of Technology University

Year:

: Talamban, Cebu City

: Bachelor of Science in Electronics Engineering
Year: 2012-

: N. Bacalso Avenue, Cebu City

: Bachelor of Science in Industrial Engineering

16

AFFILIATIONS
Organization
Industrial Engineering
Council
Philippine Institute of
Industrial Engineers

Position
Member

Year
2012-Present

Member

2012-Present

PERSONAL BACKGROUND
Name
Address
Date of Birth
Mothers Name
Occupation
Fathers Name
Occupation

:
:
:
:
:
:
:

Mary Lindy M. Sasan

Tuyan, City of Naga, Cebu
August 3, 199
Angelina M. Sasan
House Wife
Algerico C. Sasan
Employee

EDUCATIONAL BACKGROUND
Elementary Education:
School
Address

: Mary Help of Christians School (Inc.) Cebu

: 17km Tunghaan, Minglanilla, Cebu

Secondary Education:
School
Address

: Mary Help of Christians School (Inc.) Cebu

: 17km Tunghaan, Minglanilla, Cebu

Tertiary Education:
School
Address

: Cebu Institute of Technology - University

: N. Bacalso Avenue Cebu City

AFFILIATIONS
Organization
Industrial Engineering Council
Philippine Institute of Industrial
Engineers

Position
Member
Member

Year
2008-Present
2008-Present
17

PsychIE Sojourners

Alumna

2012-2013

PERSONAL BACKGROUND
Name
: Mae Ane B. Sustiverio
Address
: Lower Go Chan, Quiot, Cebu City
Date of Birth
: December 12, 1991
Mothers Name : Pernita B. Sustiverio
Occupation
: Teacher
Fathers Name
: Jury C. Sustiverio
Occupation
: Teacher
EDUCATIONAL BACKGROUND
Elementary Education
School
19982004
Address

: Sorosimbahan Elementary School

Year:

: Sorosimbahan, Esperanza, Masbate

Secondary Education
School
20042008
Address

: Santos E. Conag National High School

Year:

: Poblacion, Esperanza, Masbate

Tertiary Education
School
: Cebu Institute of Technology
University
Year: 2008-present
Address
: N. Bacalso Avenue, Cebu City
Course
: Bachelor of Science in Industrial Engineering
AFFILIATIONS

18

Organization
Industrial Engineering
Council
Philippine Institute of
Industrial Engineers

Position
Member

Year
2008-Present

Member

2008-Present

PERSONAL BACKGROUND
Name
Address
Date of Birth
Mothers Name
Occupation
Fathers Name
Occupation

: Carmelie R. Telmo
: Villa Oro Homes, Maribago,
Lapu-lapu City
: July 22, 1991
: Luzvisminda R.Telmo
:Deceased
:Cirilo T. Telmo
:Fisherman

EDUCATIONAL BACKGROUND
Elementary Education
School
1998-2004
Address

: Baroy Central Elementary School

Year:

: Poblacion, Baroy, Lanao del Norte

Secondary Education
School
2004-2008
Address

: Christ the King College de Maranding

Year:

: Maranding, Lala, Lanao del Norte

Tertiary Education
School
2008present
Address

: Cebu Institute of Technology-University

Year:

: N. Bacalso Avenue, Cebu City

19

Course

: Bachelor of Science in Industrial Engineering

AFFILIATIONS
Position

Organization

Member
present

IE Council

Year
2009 -

20