HILARIO, MA.LUISA D.

BSBM/A32(am)

1. Answer all exercises question in looking into consumer demand

chapter.
2. Answer the case#3 Universal cigar and Cigarette Corporation using the
case format.
I.
History and its Background
II.
Identify the problem
III.
Alternative courses of action
IV.
Summary, Conclusions, Recommendation
V.
Reference, Bibliography (APA)
3. Answer Product Management in Action Issues
4. Answer all exercises in Product Management.
5. Answer the case study#4: Dynamic Sportswear
6. Answer the case study#5: Consolidated Brewery Corporation
7. Buy a book

Looking into Consumer Demand

1. Is a TV set used in an office such as an advertising agency producers

good or a consumers good? Under what circumstances is it one or the
other? What is the relevance of the distinction to a TV set
manufacturer?
- Producers good because it will become consumer good if its use by an
individual consumer.

2. Why are products classified into durable or nondurable? Of what use is

the distinction?
- Because durable goods tend to have a long useful life for example
jewelry, appliances, furniture and cars while nondurable goods is
immediately used by a consumer or which has an expected lifespan of
three years or less for example foods and clothing.
3. If sales of G.I sheets are based on derived demand, how would you go
about forecasting G.I sheet sales over the next five years?
-

4.

The Philippine cement industry is considered by many to be an

oligopoly. Explain why this is so. How would this situation affect your
marketing strategy if you were the marketing manager of, say,
Bacnotan Cement?
Oligopoly is basically a market which is dominated by a small number
of large firms selling either homogeneous or differentiated product
because of their fewness, oligopolies have considerable control over
their prices but must nevertheless consider how its rival will react to
any change in its price, output or advertising. This is the reason why as
compared to other market structure.

5. Some say that the demand for cigarettes will change over the long
term because of the cancer scare. Others are not so sure, because
the linkage between cigarette-smoking and cancer is still being

debated by the medical profession. Which side do you think is correct

and why?
The demand for cigarettes will not change even they know the side
effect of smoking they still use it because they have it as a habit and
we all know that its hard to stop.

6. Why do you think a businessman should worry not only about direct
competitors but also about substitutes?
- Producers are the competitors and the products are the substitutes.
Businessman should aware not only on the competitors but also on the
substitute because once that the substitute satisfy the customer the
customer will return and they buy again.

7. Name two products whose demand curve is likely to be elastic and two
products whose demand curve is likely to be inelastic. Define your
answer.
- Elastic goods are the movie tickets and jewelry because if the price of
those products went up, the consumer dont have to buy it so they
reduce the demand while Inelastic goods are the rice and the water bill
even though the price went up they continue to buy because consumer
need it.

8. Salesmen tend to be overoptimistic. Their sales forecasts arent worth

a damn! Do you agree or disagree? Explain your answer.
- I agree because as a salesman we need to be a positive thinker and
also we must learn to understand everything but we know that all
surpluses is bad and because of this behavior theres a possibility that
they cant accept your mistake.

9. Make a brief demand analysis of one of the following products: candy,

jeans, cosmetics, lingerie, high-fashion shoes, watches, TV sets, cars,
and computers.
- A cosmetic is a consumer goods and its a nondurable product. People
need it for a purpose just like for example when you apply in a
company.

10.
Prepare a forecast for a manufacturer of cocoa powder using the
method of moving averages. Historical data are:

1970 - 100,561 cases

1971 108,320 cases
1972 106,587 cases
1973 112,020 cases
1974 115,061 cases
1975 119,863 cases
1976 121,354 cases
1977 135,671 cases
1978 146,833 cases
1979 152,938 cases
1980 148,865 cases
Explain what the method of moving averages does to the historical data.
-

We clearly see the movement of the demand for cocoa powder and we
also notice that the time series analysis of cocoa powder is changing to
up and down.

11.
Explain why forecasts using historical data need to be analyzed
with a generous dose of judgment. What could go wrong?
- Forecasting uses historical data to forecast future performance of the
company but past performance is not a necessarily a good indicator of
future performance. Historical data need to analyzed carefully and
have a fair amount of judgments, since historical patterns do not
always hold true for future events.

Universal Cigar & Cigarette Corporation

I.
History and its Background
- Cigarettes are also known as Tobacco. It was introduced by the Spanish
conquistadores when the galleon San Clemente, plying the ManilaAcapulco galleon trade, brought in 50 kilos of Cuban tobacco seeds in
1592. As early as the 17th century, Philippine-made cigars better
known as Manila cigars were being celebrated in Europes smoking
salons. Cigars as large as eggplants became a Filipino family affair.
Even young children puffed. That prompted the Spaniards to sneer that
the Indios learned how to smoke before they learned how to think.
Because of cigars popularity, the authorities imposed a tobacco
monopoly in 1780. Only the colonial government may plant tobacco,
manufacture and sell cigars. The idea was to make the colony
independent from subsidies that had to be shipped in from New Spain
(present-day Mexico), then a Spanish possession. In a twist of fate,
tobacco contributed to the downfall of Spanish colonial rule. The
monopoly caused poverty and corruption and, eventually, resentment.
Filipinos were angered because they had to buy their smokes, whereas
before they could plant tobacco in their backyards and roll their own
cigars. Violators were punished with lashings, imprisonment and, in
some cases, death.

II.

Identify the problem

The problem is about launching new brands of cigarettes, especially

Dunhill cigarettes, a foreign product and very prestige and well known
all over the world.

III.
Alternative course of action (ACA)
The Company need to study it first and look out very carefully. They
may use customer demand analysis in forecasting the profitability of
the new product

IV.
Summary, Conclusion and Recommendation
- Mr. Alfredo Borromeo, the owner and president of Universal Cigarette
Corporation wants to launch a new brand of cigarettes which is the
Dunhill cigarette. The regional manager said that they would willing to
give us a license to manufacture and sell Dunhill locally.

V.

Reference, Bibliography

http://www.philstar.com/business-usual/754678/tabacalera-130-years-cigarsand-philippine-history

Exercises

1. How can you say that a product cant be all things to all men? Take a
rice as an example, Its for everybody! what would your reaction to
this statement be?
- For me rice is for everyone but in some cases people cant afford to
buy rice so they end up using the alternative substitute like corn and
sweet potato.

2.
-

Determine the market segment for one of these brands: Oil of Olay;
Toyota Tamaraw; Pure foods hot dogs; Citizen Watches.
Pure foods hot dogs you are the one who classify the sex, age bracket,
socioeconomic class like upper-income, middle-income, lower income,
geographic considerations in order to know the most user purefoods
hot dogs and the dominant psychological characteristics of some
gender that eat pure foods hot dogs.

3. Give one or two examples of dominant psychological characteristics

that affect consumer demand for certain brands, such as cigarettes or
a perfume brand. Defend your answer.
- For the perfume brand the dominant psychological characteristics are
like of feeling fresh every time you use it and you become more
confidence because of this product.

4. Give one example of contradictory tendency among Filipino

consumers.
-

5. Since income is concentrated among Class AB and consumers,

there is no point in aiming at Class D and E consumers. Discuss the
statement.

6. Take one specific brand and indicate at what stage you think it is in
its product life cycle. Defend your answer.

7. Suppose your company has two products, both of which are at the
stage of maturity in their life cycle. What should your company do?
What could be the constraints that would prevent your firm from
doing what it wants to do?

- If the products are on the maturity stage the action we can do was
to re-launch it and innovate the product into a better one by adding
some features. The action was availability of resources, creativity,
and the market condition for that industry

8. You are marketing manager of company A, a food processing firm,

and your companys president has restricted you to get cracking
on developing a new brand of soup. How would you go about it?

9. The administrative of a hospital in your city or municipality has

decided to develop a paediatric care unit to take care of childrens
diseases. How does he determine whether it will be economically?

10.
The head of the Boy Scout organization in your community has
told you theyre not doing very well. New memberships are down,
and the current members are indifferent. What strategy would you
recommend

Dynamo Sportswear Incorporation

I.

History and Its Background

The study was about the Dynamo Sportswear owner and general manager
he was planning to add a new product, they want to sell bathing suits.
But there are some conditions that need to take. Joe Santos who was
their marketing expert will plan this for 6 months .

II. Identify the problem

- How to become successful in putting a new product line? Becoming
success introducing a new product line. The owner and general manager of
Dynamo Sports Inc. Mr Gerardo Cruz is planning to add a new product line in
the company which is the new female line of bathing suits. He is not sure
whether to aim at the upper bracket to download or to do it in reverse. What
the Mr Cruz wants is to make sure they succeed and become dominant in
this new product. The company does not have any difficulty and have
nothing worry with the seasonality of their new product since their
manufacturing facilities could produce year round.

III.
Alternative course of action
Test the market ability, pricing and timing
Understand the customer values and attitudes

IV.
Summary, conclusions, recommendation
- Mr Gerardo, owner and general manager of Dynamo Sportswear Inc.
called his companys manager to discuss the business project. Joe
Santos is the brand manager was hired from the multinational
company engaged in the manufacture and promotion of jeans. Mr
Gerardo is planning of putting out a new line of bathing suits he would
like Joe to plan the specifies of how we should go about it. It is the time
for us to diversity a bit and makes a crack at the female market. Mr
Gerardo state that he is not sure whether they should aim at the upper
bracket first, then go downward later, or the lower bracket first, then
go upwards or maybe both simultaneously. But Mr Gerardo was not
sure of this so you are the one who to plan this thing very, very
carefully Joe. I dont care about the money but to make sure that we
succeed and become more dominant in this new market. Joe worried
about the seasonality of the new product. Mr Gerardo is want to
success in launching this new product line because their success will
there to other things.
V.
Reference, bibliography
www.studymode.com/essays/Dynamo-Sportswear-Case-55025589.html
www.studymode.come/essays/sleep-easy-motel-38789806.html

Marketing Management in Philippine Settings by Edgar Del Val, Chapter

4 page.53-54

Consolidated Brewery Corporation

I.
History and Its Background
- The chairman of Consolidated Brewery Corporation, Mr. Carlos Lim was
listening with some amount of amusement to the heated exchange
going on at the conference table among his executives. The sales
manager was Joe Pineda, finance manager was Peter Go Liao,
production manager was David Tiu, and market research manager was
Mario Benitez. They want to launch our new brand of MACHO beer and
well really put the screws on San Miguel. Well have a Macho light beer
to match Lagerlite, a Macho regular pitted against the regular San
Miguel, a Macho Dark to fight Cerveza Negra, and export-quality Macho
to compete with their export product.

II.
Identify the problems
- To launch new brand of MACHO beer and well really put the screws on
San Miguel.

III.
Alternative course of action
Focused on group interview
Survey of the consumer attitudes
Test the market

IV.
Summary, Recommendation, Conclusion
- Mr. Carlos Lim was the Chairman of Consolidated Brewery Corporation
was heated in the conference table among his executives. The sales

manager and an export-quality Mr Joe Pineda was adamant were going

to launch our new brand of MACHO beer and well really put the screws
on San Miguel. Well have a Macho light beer to match Lagerlite, a
Macho regular pitted against the regular San Miguel, a Macho Dark to
fight Cerveza Negra, and export-quality Macho to compete with their
export product. Let do things right, lets find out what this beer market
is really all about: whos drinking it and why, how much hes drinking
and when. We should do the market research in order to know who the
individual who drink San Miguel Beer are. We make the basic steps
focused group interview, consumer attitude survey, and test market.
I recommend they must apply the alternatives action in order to know
that they sure about the launching the four new brand of San Miguel.
My conclusion the different manager was agreed to the suggestion of
Mario Benitez in order to know the basic process when they succeed or not
or to make some another solution to their problem.

V.

References, Bibliography
Marketing Management in Philippine Settings, Chapter 5 page .69-70