NATIONAL UNIVERSITY

COLLEGE of BUSINESS and ACCOUNTANCY

PRODUCT MANAGEMENT

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Choco Mallow
Malunggay
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A Marketing Plan Presented to the

Business Administration Department of the National University

Submitted by:
Elijah Daniel Torres

Raniel Delos Reyes

Eduard Kimwell Morales

Kenth Viray

Submitted to:
Mr,Steve Chow

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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I. Executive Summary

Malunggay mallows is a marshmallow that is filled and coated with chocolate that has
blended malunggay in it.

Choco Mallows Malunggay captures the curiosity and taste buds of adults and children.
Marshmallow lovers have been waiting a long time for a tasty, fluffy treat that is both gourmet and
organic. Choco Mallows Malunggay brings forth the solution with the ultimate gourmet treat made
with the super food Malunggay.

The overall goals and objectives include a successful entry into the organic gourmet
marshmallow market by gaining market share, increasing brand awareness, and creating a solid
distribution channel to retailers and an online presence in order to increase sales volume. Melanie
is eager to capture three percent of the overall gourmet marshmallow market in Metro Manila.

The strategy elements include effectively identifying the demographic in order to target
sales efforts for the product. Additionally, the product design and packaging is an essential strategy
for appealing to the target market. The uniquely crafted product adds value and a competitive
advantage. The competitive pricing was set to appeal to the type of customers Choco Mallows
Malunggay wants to attract and gain profitable margins. An online presence is to be implemented
in order to further generate brand awareness, engagement,

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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II. Situation Analysis

a. Market Summary
i. Market demographic
Choco Mallows Malunggay will be distributed to different schools and hospital canteens
in metro manila.

Geographic

 Below 15 population In manila – 3,729

 Total population of manila 1,652,171

Demographics

 Men and Women

 Children
 Age 15 – 35
 Elementary Student
 Pregnant
 Are Cognizant about health
 Chocolate Lovers

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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Behavior Factors

 Kids in elementary schools ages 6-15 who loves anything sweet will one of our main
target.
 Healthy living person who loves to enjoy delicious snacks but they prefer to eat
healthy foods. They can now enjoy delicious snacks while not worrying about the
nutrition facts about the food.
 Chocolate lovers who wants to taste different kind or unusual kind of chocolate.
Chocolate lovers are adventurous and always want to try something new.
 Pregnant woman always crave for chocolate it’s the sign of their early pregnancy.
They can now crave for food in healthy way

II. Market Needs

There are one market need that we want to focus to fill. That is satisfy the customers with
our delicious gourmet and satisfy them with the healthiest way. Choco Mallows Malunggay is
providing its customers with a delicious, unique, and offer a health conscious choices, and
utilizes top-shelf ingredients. Choco Mallows Malunggay seeks to fulfill the following benefits
that are important to their customers.Our product will be affordable but will be rich in nutrients
and flavor.

To address this we need to provide the best ingredients that we can have. The procedure
needs to be on time to make our product fresh and available anytime. Our product, Choco Mallows
Malunggay is made fast and irrelatively inexpensive, considering the quality of our product.

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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III. Market trends

Market Trends
The market trend for chocolate marshmallows is headed toward a more sophisticated
customer. The snacks patron today relative to yesterday is more sophisticated in a number of
different ways.

 Food quality. The preference for high-quality ingredients is increasing as customers are learning
to appreciate the qualitative differences.
 Presentation/appearance. As presentation of an element of the culinary experience becomes
more pervasive, patrons are learning to appreciate this aspect of the industry.
 Health consciousness. Filipinos in general are more cognizant of their health, evidenced by the
increase in individuals exercising and health club memberships, patrons are requesting more
healthy alternatives when they eat out. They recognize that an entree can be quite tasty, and
reasonably good for you.

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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IV. Market Growth

Domestic market for organic products was valued at US$6.2 million in 1999, based on DTI
estimates (Pearl 2 Report).

According to Canono (USDA GAIN Report, 2000), the Philippines’ organic industry/market
is estimated at P250 M or US$6.2 M. Of this value, domestic organic industry is about P100 M
while imports of organic products are estimated at P150M. The trade estimates that the domestic
organic industry is expanding by approximately 10-20% annually but growth could be accelerated
with government support. The same report estimated that demand for organic products would
outpace local production, while potential for increased imports particularly for processed food
products clearly exist.

There is market potential for different organic products. Surveys done by Upland Marketing
Foundation, Inc. (UMFI) show that 0.58% of consumers are organic rice users. However, another
survey by UMFI shows that 20% of the consumers prefer and buy premium rice (but not
necessarily organic), accounting for 3.56 million cavans. Since organic rice is the premium of all
premium rice, organic rice has bigger market potential apart from its niche market (Guarin, 2005).

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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B. SWOT Analysis

Strengths
 Unique product
 Healthy Snacks
 Affordable
 Always Available

Weakness

 Lacks of Brand equity

 Strong competitors
 Low brand awareness

Opportunities

 Growing market with a significant percentage of the target market still not aware
that Choco Mallows Malunggay
 Growing amount of people who are health conscious
 The ability to spread overhead over multiple revenue centers.
Threats
 Strong brand name of competitors
 Growing amount of new competitors
 Products of competitors are out in many market

C. Competition

National Competition
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COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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 Wiggles Choco-coated Mallows

 Soft, fluffy marshmallows enrobed in thick, rich
chocolate. Each choco-twisted mallow is
individually wrapped.
 Wiggles Mocha-coated Mallows
 Soft, fluffy marshmallows enrobed in thick, rich
chocolate. Comes in choco-coated and mocha-
choco flavored twisted mallow in individually
wrapped.
 Fibisco’s Choco mallows
 Are Chocolate-covered marshmallow biscuit
individually wrapped in aluminum foil.
Local Competition
 Graham balls
 Are desserts bits made of graham cracker crumbs,
condensed milk and cream.

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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D. Product Offering
Choco Mallow Malunggay is a dessert that is different and superior to competitors. Customers
can taste the quality and freshness of the product in every bite. The following are characteristics
of the product:

1. Fresh from the garden malunggay

2. Chocolate is imported
3. Marshmallows are imported.

E. Key to success

Target market and our product is our key to success in our business. Our product can stand out in
the midst of the competition because of its uniqueness. Our target market children and pregnant
woman loves a lot of chocolate so they will love to have many chocolate that they can have. As of
our product we have no direct competitors because were the only who serve this type of product.

F. Critical Issues

Our Choco mallow malunggay is still in the speculative stage as a retail product. Its critical issues
is:

 Continue to build brand awareness which will drive customers to existing stores as well as ease
the marketing efforts of future stores.

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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V. Marketing Strategy

A. Mission

We seek to produce high quality healthy product

at competitive price using highly fresh ingredients
to provide high satisfaction to the customer

B. Marketing Objectives

 Maintain positive, steady, growth each month.

 Experience an increase in new customers who are turned into long-term customers.
 Realize a growth strategy of one store per year.

C. Financial Objectives

1. A double-digit growth rate for each future year.

2. Reduce the overhead per store through disciplined growth.
3. Continue to decrease the variable costs associated with food production.

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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D. Target Market

 Children ages 6-15

 Pregnant woman
 Healthy living person
 Person who loves chocolate

E. Positioning
Choco mallow Malunggay will position itself as a reasonably priced, upscale, healthy dessert.
Consumers who appreciate healthy food will recognize the value and unique offerings of Choco
mallow malunggay. Patrons will be children, pregnant, healthy living person, and chocolate lover.

Choco mallow malunggay positioning will leverage their competitive edge:

 Product. The product will have the freshest ingredients including fresh from the garden
malunggay, imported chocolate, and imported high quality marshmallow. The product will also
be developed to enhance packaging, everything will be aesthetically pleasing.

By offering a superior product, coupled with superior service, Sigmund's will excel relative to the
competition.

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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F. Marketing Mix
Choco mallow malunggay marketing mix is comprised of these following approaches to
product, pricing, distribution, advertising and promotion.

 Product. Choco mallow malungay is unique and affordable.

 Pricing. Choco mallow malungay pricing scheme is that the product cost is 30% of the total
retail price.
 Distribution. Choco mallow malungay food will be distributed in school s canteen and hospital
canteen. It can be available in any possible store.
 Advertising and Promotion. The most successful advertising will be social media like
facebook, twitter, and Instagram. The way we advertise will help us lessen the cost and to save
more.

G. Marketing Research

During the initial phases of the marketing plan development, several focus groups were held to
gain insight into a variety of choco-marshmallows product These focus groups provided useful
insight into the decisions, and decision making processes, of consumers.

The source of market research is competitive analysis/appreciation. Sigmund's will continually

patronize local chocolate marshmallow product for two reasons. The first is for competitive
analysis, providing Choco mallows malunggay with timely information regarding other
restaurant's service offering. The second reason is that local business owners, particularly
restaurant owners, are often part of an informal fraternal organization where they support each
other's business.

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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VI. Financials
a. Sales forecast
The sales in the first 3 months is low compare in the following months. Sales will
gradually increase because the sale in direct and indirect seeling will increase. We
limit our production to 50pcs in individuals and 100pcs to stores, but in the
December we doubled our production because its Christmas season.

Chart Title
12000

10000

8000

6000

4000

2000

0
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Series 1 Series 2

Sales 1st year

Direct Selling Php, 29, 500
Indirect Selling Php, 57, 500
Total Php, 87, 000

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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B. Expenses forecast

The only expense we will have is for the raw materials. So our expense will depend on
our production. Because our advertising is only in social media and it is free.

Series 1
4500

4000

3500

3000

2500

2000

1500

1000

500

0
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Series 1

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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C. Breakeven Analysis

Units Sold Sales Revenues Variable Costs Fixed Costs Operating Profit
0 Php0 Php0 Php1,500 Php-1,500
12 625 250 1,500 -1,125
25 1,250 500 1,500 -750
37 1,875 750 1,500 -375
50 2,500 1,000 1,500 0
62 3,125 1,250 1,500 375
75 3,750 1,500 1,500 750
87 4,375 1,750 1,500 1,125
100 5,000 2,000 1,500 1,500
112 5,625 2,250 1,500 1,875

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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VII. Controls
a. Implementation

Implementation Milestones
The following milestones identify the key marketing programs. It is important to accomplish
each one on time, and on budget.

Advertising Start Date End Date Budget Manager

Marketing plan completion 9/1/2016 9/1/2017 Php0 Raniel

Total Advertising Budget Php0

PR Start Date End Date Budget Manager

Other $0

Other $0

Total PR Budget $0

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 NATIONAL UNIVERSITY
COLLEGE of BUSINESS and ACCOUNTANCY
PRODUCT MANAGEMENT

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B. Marketing Organization

Eduard Kimwell Morales Raniel Delos Reyes Elijah Daniel and Torres Kenth Viray are the
owners of the Choco mallow malunggay so they divided the work to be effective and
efficient. Raniel delos Reyes Is responsible for the advertising, Eduard is for the making
the product, Elihiah is respondisble for selling the product to individuals and Kenth’s job
is to sell the product to the stores.

C. Contingency Planning

Difficulties and risks:

 Problems generating visibility.

 Overly aggressive and debilitating actions by competitors.
 An entry into the Chocolate market of an already existing, Brand like fibisco and robina.

Worst case risks may include:

 Having possibility to lose to competitors

 The product cannot satisfy the consumers.

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