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PHINMA University of Iloilo

College of Management and Accountancy

This in partial fulfillment of the course requirements


in
MKT 002: Marketing Management

Marketing Plan

PARAGON Glass and Aluminum Works


Marketing Management

Prepared by:

MichA. Gaite
ArnielJ. Palma
Lester John T. Pusoc
MaylaB. Villaceran
Angelic S. Visayas

Submitted to:

Ms. Ruthelyn E. Munieza


Subject Instructor

October 17, 2018


TABLE OF CONTENTS

Company Name...................................................4
Company Logo...................................................4
Mission........................................................5
Vision.........................................................5
I.Executive Summary...........................................6
II. Introduction...............................................8
III. Situational Analysis. ...................................10
Strengths................................................10
Weaknesses...............................................10
Opportunities............................................11
Threats..................................................11
IV. Market Planning. .........................................12
Marketing Objectives.....................................12
Target Market............................................12
Market Segmentation .....................................12
Marketing Mix............................................13
Service Strategy.........................................13
Process Map..............................................14
Promotional Strategy.....................................15
Distribution Strategy....................................16
Pricing Strategy.........................................16
Market Research..........................................17
V. Financial Analysis.........................................21
Product Costing..........................................21
Sales Forecast...........................................22

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Expense Forecast.........................................23
VI. Action Plan...............................................25
VII. Implementation and Control...............................27
VIII. Conclusion..............................................30

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PARAGON GLASS
and ALUMINUM
WORKS

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Our Mission

To provide quality glass and aluminum services to the public, in

providing exceptional services through affordable and quality

products, establish good business relationships and achieve

customer satisfaction.

Our Vision

Leading the glass and aluminum industry with excellence in

service and variety of products available for customers.

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I. EXECUTIVE SUMMARY

This project’s goal is to present a Marketing Plan

initiating PARAGON Glass and Aluminum Works, a local glass and

aluminum company that will be based in Oton, Iloilo,

Philippines.

As we value customer patronage and retention, we aim to

offer excellent services through quality materials that are

safe and reliable. PARAGON Glass and Aluminum Works will be

offering a variety of glass and aluminum products for the

public that comes in style, different colors and

specifications.

We adapted strategies to meet our customer’s needs such as

the company’s process map and teaming up with architectural

and construction firms. We also established an alliance with

our partners in Batangas, Philippines, to help us with the new

product offerings from our manufacturers.

Initially, the focus of PARAGON Glass and Aluminum

Workswill be limited to one (1) geographical location but as

soon as it hits operational development, market coverage will

be expanded and more distribution strategies will be initiated

to support the goal.

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PARAGON Glass and Aluminum Works will continue to commit in

offering excellent services and will conduct trainings with

our partners and product familiarization for the continuous

improvement of service and practices of the company as the

company aims to sustain stability of operations.

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II. INTRODUCTION

Glass and aluminum has become the materials of choice for

windows, doors, shower enclosures, showcases, etc., and that’s

down to a number of basic advantages. The industry that was

once ruled by the traditional steel-type windows and wood-

based craftshas been taken over by aluminum. Aluminum-made

works are proven to be lighter and rust-proof, and more

complex designs compared to their steel counterpart. And due

to the strict policies and provisions imposed by the

government on logging trades, woods and lumbers became more

expensive and not an economic material to use.Also, aluminums

come in range of colors, sizes and styles, lightweight and

low-maintenance.

The glass and aluminum industry has been a long-running

industry. Several manufacturers had offered cheap but thin and

not reliable aluminum products. These types of aluminum

products have been widely used, mainly because of its lower

price compared to other brands.

We aim to establish our company in this industry, and this

marketing plan will provide us necessary details and

strategies to be adapted for a successful glass and aluminum

company. Our company also aims to offer reliable products and

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services and compete with the existing companies in the same

line of business.

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III. SITUATIONAL ANALYSIS

This SWOT analysis demonstrates the strengths and

weaknesses as well as the opportunities and threats of PARAGON

Glass and Aluminum Works.

STRENGTHS

 Well-trained personnel

 Locally manufactured materials

 Business partners in Luzon area (Batangas) which is

close to direct suppliers of glass and aluminum

products

 High customer retention

WEAKNESSES

 Competitors already established their company in the

market.

 Relatively small company compared to major glass and

aluminum suppliers and contractors.

 Prone to prospect sales being pirated by

competitors.

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OPPORTUNITIES

 Construction boom in the area which leads to a

number of prospect customers

 Newly opened subdivisions and housing projects in

the area

 Currently improving technologies and upgrading power

tools used in the industry

THREATS

 Recent bad economic conditions

 Labour shortage (skilled worker)

 Monopoly of major suppliers of raw materials

 Competitors

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IV. MARKET PLANNING

4.1 MARKETING OBJECTIVES

 Increase sales by 30% annually

 Build brand awareness

 Increase owner’s equity

 Improve stakeholder relations

4.2 TARGET MARKET

4.2.1MARKET SEGMENTATION

Geographic

PARAGON Glass and Aluminum Works will focus in one

geographical area as the company penetrates the

market, to boost and establish an aggressive starting

point.

Demographic

PARAGON Glass and Aluminum Works’ target market is

not limited on a specific income group but focuses on

all income bracket groups due to the company’s

affordable services.

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4.3 MARKETING MIX

The company aims and strives for success and is committed

in offering excellent service and quality products for the

community. It is the goal of the company to establish a

well coordinated firm and have good marketing activities.

4.3.1 SERVICE STRATEGY

PARAGON Glass and Aluminum Works aims to be known as

the best fabricator of glass and aluminum products. The

company will cater the demands of costumers in terms of

customizing their needs and wants to the finish product,

and provide a free mobile service, will come next to your

business, home, or desired location at no extra charge. The

company will ensure to imply the vitality of the process

map in monitoring the step-by-step process from designing

stage up to installation and after sales services.

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PARAGON Glass and Aluminum Works PROCESS MAP

CUSTOMER

CUSTOMER-OWNED DESIGN COMPANY’S DESIGN

COST & PRICE CALCULATION

IF NO IF YES

ADJUSTMENT OF DESIGN & GATHERING OF CUSTOMER


IF YES
MATERIALS INFORMATION

IF NO IF YES

HAND-OVER BROCHURE DOWNPAYMENT OF 50%

INSTALLATION

FULL PAYMENT

3 MONTHS WARRANTY

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4.3.2 PROMOTIONAL STRATEGY

PARAGON Glass and Aluminum Works will be using Push

Promotional Strategy and will use personal selling and

trade promotions. The team will connect with architectural

and construction firms and secures deals with them. This

will enable the company to have a ready available

transaction aside from the daily walk-in customers.

As social media is widely used nowadays, mobile

platform, promotional ads and product demonstrations will

be posted on social media as part of promotional strategy.

To increase sales, the company will offer incentives

to individuals who are able to refer and secure an

installation contract.

The company will also offer discounts on large

contracts to attract bigger projects and more customers.

This has been a proven factor which affects the decisions

of customer’s buying behavior.

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4.3.4 DISTRIBUTION STRATEGY

The company will commit to suppliers to establish

healthy partnership and ensure quality materials to better

satisfy the expectation of the company’s customers. From

the suppliers, the company will allocate certain area to

provide security and safety of the stocks. From the

company, the ready-to-install product will be delivered to

the costumer.

The company will use exclusive distribution. The

company will have exclusive distribution rights to carry

its own products within the territory. Desired location of

the shop should be near or with easy access from the

community, near the market, and preferably along the

national road. Also the company will secure a service truck

that will enable them to widen their market coverage.

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4.3.5 PRICING STRATEGY

PARAGON Glass and Aluminum Works will use the

Penetration Pricing Strategy,as there are already existing

companies who are engaged in the same line of business, to

be able to enter the market immediately.

In this type of industry, the basic pricing in windows

and doors is multiplying the area of the window or door by

square foot, to the price per square foot. Price per square

foot varies on what design and specifications, and

materials are chosen by the customers. For example, a

window’s dimension is 4 feet by 4 feet. The area will be 16

square foot (4feet x 4feet). The area will be multiplied to

the price per unit foot, in this case php260. So, 16 square

foot multiplied to php260 will be php4160.

In some products, Cost-Plus Pricing Strategy will be

used to cover the production cost, labor and mark-up as

well.

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4.4 MARKET RESEARCH

MARKET RESEARCH SURVEY

1. Do you prefer glass and aluminum as a material of choice for your


house windows, doors, etc?
YES NO

2. Are your current windows, doors, etc, is made of glass and


aluminum?
YES NO

3. Do you prefer to design your own windows, doors, etc?


YES NO

*TOTAL RESPONDENTS: 221


CATEGORY YES PERCENTAGE NO PERCENTAGE
Question 1 203 91.86% 18 8.14%
Question 2 88 39.82% 133 60.18%
Question 3 183 82.81% 38 17.19%

Table 1 Survey on Materials of choice on windows

400

200 YES
NO
0
QUESTION 1 QUESTION 2 QUESTION 3

The company made a survey to be able to distinguish

significant information that the company needs as entering

the first (1st) phase. The survey was held at the area of

Oton, Iloilo where the shop is located. QUESTION 1

respondents answered YES averaging 91.86%, and NO 8.14%.

This shows that the market prefer Glass & Aluminum as a

material of choice for their house’s windows, doors, etc.

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QUESTION 2 respondents answered YES averaging 39.82%, and

NO 60.18%. This shows that most of the houses of the market

currently are not made of Glass and Aluminum, and this

serves as a great opportunity for the company. Question 3

respondents answered YES averaging 82.81%, and NO 17.19%.

This shows that most in the market refers to design own

windows, doors, etc.

The result of the survey favored the goal of the

company and opens the possibility of achieving triumph in

the industry.

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Table 1.Respondent based on shop location:
Type of housing Frequency Percentage
location
Subdivision 87 39.37%
Urban housing 134 60.63%

Table 2 Locations of respondents

80.00%
60.00%
40.00% Subdivision
20.00%
Urban housing
0.00%
Respondent based
on shop location

The company made a survey reaching possible total

number of household, in Oton, Iloilo, which is the target

market. The segmentation was made, aiming to distinguish

which housing location should the company put more effort

of introducing and promoting the services. The RESPONDENTS

of SUBDIVISION were 87, averaging to 39.37% and the

RESPONDENT of URBAN HOUSING 60.63%.

The result showed that the company must not only focus

in one category of housing location. This once again, opens

the possibility of catering huge number of household and

achieving the company’s goal.

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Respondent based on income level:
Type of income level Frequency Percentage
Minimum wager 92 41.63%
Self-employed 71 32.14%
Professional 58 26.24%

Table 3 Respondents Income Level

60.00%
40.00% Minimum Wager
20.00% Self-Employed
0.00% Professional
Respondent based
on occupation

The company made a survey reaching possible total number of

household, in Oton, Iloilo, which is the target market. The

survey aims to know what income levels of a person are willing

to avail the services of the company. The RESPONDENT, MINIMUM

WAGER were 92, averaging 41.63%, SELF-EMPLOYED were 71,

averaging 32.14% and lastly PROFESSIONALS were 58, averaging

26.24%.

The data shows that respondent from different income level

who are the minimum-wage employees, self-employed and

professionals are willing to avail our service. The result

favored to the company in terms of market volume.

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V. FINANCIAL ANALYSIS

5.1 PRODUCT COSTING

Table 4.Product Costing Based on a 4feet by 4 feet dimension of

window

Description Unit Unit Price Amount

Double Sill 4 ft 20 80

Double Head 4 ft 32 128

Double Jamb 8 ft 25 200

Top Rail 4 ft 20 80

Bottom Rail 4 ft 27 108

Interlocker 8 ft 25 200

Lockstile 8 ft 25 200

Glass 16 sq. ft 32 512

Screw 12 pcs 2 24

Nylon Roller 4 pcs 10 40

Channel Glazing 24 ft 5 120

Sealant 2 130 260

Flush Lock 2 80 160

TOTAL 2112

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5.2 SALES FORECAST

Sales forecast for the first year of operation will be

understandably weak in performance as the company is still

being introduced in the market.

Table 5. Sales Forecast

2000000

1800000

1600000

1400000

1200000

1000000 Sales
Net Profit
800000

600000

400000

200000

0
2020 2021 2022 2023

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Table 6.Yearly Computation of Profit Based on number of 4x4

windows sold only

DATE Qty. sold No. of Sold Price Total Expenses Total

monthly months yearly Sales Profit

Jun2020-Dec2020 25 7 175 3520 616000 563578 52422

Jan2021-Dec2021 30 12 360 3520 1267200 1147584 119616

Jan2022-Dec2022 36 12 432 3520 1520548 1351593.2 168954.8

Jan2023-Dec2023 44 12 528 3520 1858560 1623763.2 234796.8

5.3 EXPENSE FORECAST

Table 7.Expense Forecast Based on a 4feet by 4feet dimension of

window

Expenses 2020 2021 2022 2023

Labor 70000 144000 168800 192000

Salaries and wages 45500 78000 78000 78000

Utilities 21000 54000 60000 78000

Materials 369600 760320 912384 1115136

Rent 35000 60000 60000 60000

Income tax 22478 51264 72409.2 100627.2

Total 538300 1147584 1351593.2 1543400

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VI. ACTION PLAN

First Quarter

 PARAGON Glassworks will construct an

organizational structure of the company.

 Budget for setting up the company will be

discussed.

 The company will create a team that will secure

the necessary paper works needed in setting up

the company. The same team will secure the

location of the shop.

Second Quarter

 The company will create an HR team what will be

assigned in hiring of personnel. Applicants with

knowledge in carpentry and glass and aluminum

business are preferred.

 The company will create a Promotional team that

will be in-charged in promoting the company. The

same team will go to architectural and

construction firms to establish an alliance with

the firms.

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Third Quarter

 The company will create a team that will be

assigned in purchasing the necessary tools that

will be needed for the operation of the company.

 The same team will be in-charged in purchasing

materials for the construction of the shop.

 Construction of the shop will initiate.

Fourth Quarter

 The company will create a team that will be in-

charged in purchasing stocks that will be used in

the operation of the shop.

 Series of training and workshop will be initiated

to enhance the personnel skills and secure of

providing the right talents will be applied to

customers’ desired design.

 Finalizing shop layout and start initiation of

operation.

 Implementation of monitor and control will be

initiated to ensure the company on achieving the

strategic objectives.

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VII. IMPLEMENTATION AND CONTROL

PARAGON Glass and Aluminum Works will ensure the

implementation of this marketing plan. A specific team will make

sure the company’s process map is being followed and the company

will conduct regular inventory of supplies and review of

financial conditions. Customer complains will be given proper

actions and feedback will be prioritized for improvements,

develop satisfaction and customer retention.

The company will invest in skillful employees, creating a

productive environment to enable for them to compete in the

industry. Training and team building activities will be

conducted with our partners, to initiate employee growth and

improvement in their work capabilities, and offer them fair

salaries and wages. Also, the company will secure a deal with

suppliers, establish good business relationship and loyalty to

achieve trade discounts and acquire favorable deals like

consignment deals.

In addition, the company will also conduct regular surveys

on customers’ choice of materials and choice of local

fabricators and evaluate the strengths of competitors. Moreover,

the company will commit in developing more strategies to compete

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well in the market and ensure the acquisition of its marketing

objectives.

Company Sample feedback form

Feedback gathering:

Question 1: Did you like our service?

Specify:

Help us grow! Please send us your comment and suggestion via

email PARAGONglwoton@gmail.com; or call us via mobile

09087878241/09067878341 or reach us, Facebook page PARAGON

glass & aluminum works.

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Sample Inventory format

Item number Item description Item Beginning Purchases Ending

cost inventory inventory

001 Double Sill

002 Double Head

003 Double Jamb

004 Top Rail

005 Bottom Rail

006 Interlocker

007 Lockstile

008 Glass

009 Screw

010 Nylon Roller

011 Channel

Glazing

012 Sealant

013 Flush Lock

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VIII. CONCLUSION

PARAGON Glass and Aluminum Works’ competitors had already

established their company in the industry. However, with the

aid of this marketing plan, our team is confident that we can

achieve our sales forecast and marketing objectives, and

establish our own customer base.

With opportunities, proper implementations and pricing

strategy, the team will be able to penetrate the market

aggressively, and expand our market coverage with our

partners. Hence, PARAGON Glass and Aluminum Works have the

potential to become successful and be recognized as one of the

leading glass and aluminum fabricator.

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