B.

Market Segmentation and Justification

Market Segmentation is the research that determines how the organization will divide its
customer or group into smaller groups based on characteristics such as, age, income, personality
traits, or behavior. These segments are essential in business organizations because it can later be
practiced to optimized products and advertising to different customers. Wherein market
segmentation helps to create subsets of a market based on demographics, needs, priorities,
common interest, and other psychographic or behavioral, and technographic segmentation are
used to better understand the target audience. Understanding your market segments would be
beneficial in identifying what would be the best sales and marketing strategies the company can
do to achieve a competitive advantage. To better understand the market, and to know what
would be the best strategy that they can use, the proponents have decided to use demographic
segmentation to enable them to divide the market based on demographic variables like age,
gender, income, and occupation, demographic segmentation is seen almost in every industry like
automobiles, beauty products, mobile phones, apparels, and technological products and is set on
premise that the customer's buying behavior hugely influenced by their demographics they also
have decided to use, behavioral segmentation, to understand the behavior, usage, preferences,
choices, and decision-making process of their customer. Wherein the segments for behavioral
segmentation are usually divided base on the knowledge and usage of the product. The
knowledge and use, of the product, will affect the buying decision of an individual, wherein the
audience can be segmented those who know about the product, those who don't know about the
product, and potential users of the product. Another segmentation that the proponents have
decided to use is the psychographic segmentation, it divides the audience based on their
personality, lifestyle, and attitude, and this segmentation process works on-premise that
consumer buying behavior can be influenced by, his lifestyle and personality. A personality and
lifestyle influence the buying decision, and habits of a person to a great extent. One of the best
examples of this is a rich person may consider buying an innovative product to ease their life as a
need, whereas a person living in the same city may consider buying innovative products as a
luxury. The last segmentation that the proponents have decided to use is technographic
segmentation it is a method of consumer analysis that was developed to measure and categorize
consumers based on their ownership, use patterns and attitudes toward information,
communication, and technologies, The proponents believe that these are the pertinent market
segmentation that we can use to better understand our target market, and be able to know what
would be the best strategy that we can use to achieve a competitive advantage.

F. General Marketing Practices

 Product Strategy

The usefulness and uniqueness of the product are one of the criteria that the customer is
looking for before they purchase a product. That's why the proponents have decided to develop
an innovative product that will help them to ease their life, a product that can surpass a similar
product that we have in the market because of the innovativeness of the product. A portable
water heater with a temperature controller is an innovative product and upgrade of the typical
vacuum flask tumbler that we have in the market because it offers a lot of added features that
don't exist on the typical vacuum flask tumbler. The innovative aspect and features of the
product that surpasses the functionality of the existing product are the following, all-day
temperature control, wherein you don't have to worry about drinking your coffee or tea or heat
your water anything less than its perfect temperature ever again. Thermuze battery pack
provides power for all-day temperature control, it also allows you to choose your favorite
temperature, it has four heating modes, hot, extra hot, brew, and boil, it is a perfect companion
for travelers and individuals who love outdoor activities wherein you can use it for cooking,
water sterilization, or if you just want a good hot beverages for weekend excursions. The
product is highly durable because it is made of high-quality raw materials.

 Pricing Strategy

The proponents have decided to use a cost-plus pricing strategy for them to derive the best
possible price for their product and this strategy could help the company to maximize the sales
on the product without overpricing, cost-plus pricing strategy recommends adding a markup to
the cost of goods to arrive at a selling price. Under this approach, the company needs to add
together the direct material cost, direct labor cost, and overhead cost of a product, and add it to a
markup percentage to determine the ideal price of the product.
  Place Strategy

The place is one of the essential factors that you have to consider in establishing your business
wherein you have to recognize how your product be placed in the market. The proponents have
decided to sell and to market their products throughout the malls and supermarkets in the City of
San Fernando to reach potential customers who like to buy products at the mall and supermarkets
mostly middle and high-class customers, Since they are still a startup business the proponents
have decided to locate their business in HTP Bldg., Mc Arthur High way, City of San Fernando,
Pampanga the location is near to malls and supermarkets in the City of San Fernando wherein
they can easily supply products without acquiring to much transportation cost, wherein they just
have to pay stocking fees in malls and supermarket ranging from Php 800 to around Php 2,500
per stock-keeping unit per store, both new and existing suppliers are obliged to pay these fees in
exchange for a shelf space in every malls and supermarket.

Place of Distribution

 Malls, Supermarket

Malls/Supermarket Stock Keeping Fee ( Stock Space )

SM City Pampanga 1,650
SM San Fernando Down Town 1,650
SM Telebastagan 1,650
Robinson Starmills Pampangan 1,650
Robinson Supermarket (St. Jude San 1,650
Fernando)
Walter Mart ( San Fernando Pampanga) 1,650
Vista Mall Pampanga 1,650

800+2500 = 3,300 / 2 = 1,650

 Online Shopping
The proponents also have decided to use online shopping platforms to sell and market their
products customers can process orders using these online shopping platforms and deliver the
product to their home. This method is for those individuals who prefer online shopping.

 Promotion Strategy

Having a great promotional and marketing strategy is necessary for every business organization
because it is the voice of your company which sends out your brand's message loud and clear to
your audience. Which is why every business must possess a solid promotional and marketing
strategy that could help them to acquire a sizeable market every business can use various media
platforms like television, radio, shopping outlets, billboards, magazine, and social media to
promote their company and brand, these various promotional strategies can be used to promote
and market your business depending on the goals, objectives, and priorities of the company.
Without marketing promotions, your company, brand or service could not acquire the attention
that they want, promoting your brand will help you in many different ways, It can help you to
increase the brand awareness for your product, it also provides the appropriate information of
your product that the customer needs to know, and it also formulates sales and profits that's why
it is very important to every business organization.

These are the Promotional Tools that the proponents have decided to use:

 Flyers
 Tarpaulin
 Social Media Ads
 Facebook Page
 Online Shopping Ads

Description Quantity Size Unit Price Total cost

Tarpaulin 50 2x4 meters 150.00 7,500.00
Flyers 2000 Short bond 1 2,000.00
paper
Total - - 9,500.00

G. Propose Marketing Programs

A Marketing program is a coordinated, thoughtfully designed set of activities that help you
achieve your marketing objective. Were your marketing objectives are strategic sales goals that
fit your strengths and are good ways to stretch your business in its current situation. To build
strong customer relationships and maximize your sales, you need to put every possible marketing
tool to work for you. Marketing is a broad field, encompassing elements as diverse as
advertising, which includes brand and logo design, sales calls, web sites, brochures, packaging,
shows conferences and other events, and so on. The more tools that you have the better, that’s the
reason why having a reliable marketing program is vital to every business organization.

The Marketing programs that the proponents have agreed upon are the following:

 They will Create a classified advertisement for their product using different media
platforms like Facebook, Instagram, Lazada, and Shoppee to ensure that we can reach the
target audience for our product and inform them about the functionality and benefits of
our product.
 The Proponents have decided to create conferences and events to establish a good
relationship with the consumer of their product and inform them about the new products
that they will offer soon.
 They will develop a customer loyalty program that can help them to retain customers.
Wherein in every two purchases of our product, they will get a free planner notebook and
a cup with our logo on it.
 They will create a classified advertisement for their product using different media
platforms like Facebook, Instagram, Lazada, and Shoppee to ensure that we can reach the
target audience for our product and inform them about the functionality and benefits of
our product.
 The Proponents have decided to create conferences and events to establish a good
relationship with the consumer of their product and inform them about the new products
that they will offer soon.

H. Proposed Yearly Marketing Budget