I.

Executive Summary
Hibiscus Hair Care is a start-up business situated in Iloilo City. The
company’s goal is to be recognized as one of the sought after brands of hair care
products. Our product called “Hibiscus shampoo and conditioner” shampoo bar offers
2-in-1 benefits in one product. Our market are the local buyers in Iloilo but we
specifically target the hair-conscious individuals, organic consumers, and the youth.
The price of our product is very affordable with the amount of just P80.00. It is based
on the cost of production and the customer's perceived value. ​The place of distribution
will be in Iloilo City. The distribution channels that we will use will be through direct
marketing channels that include social media and resellers as an indirect form of
marketing channel. ​Hibiscus shampoo and conditioner has several strengths that can
be used to differentiate with other products. It differentiates itself from others by
utilizing a low cost pricing strategy, by being a 2-in-1 product, and by having a
unique and reusable packaging.

II. Business Review

The history of shampoo bars began when Lush co-founder Mo Constantine and
cosmetic chemist Stan Krysztal invented it more than 20 years ago. The inventors of
shampoo bars realized that shampoo bars are a great base for all kinds of natural ingredients.
This is the reason why there are a lot of varieties to shampoo bars that customers can choose
from.

Hibiscus Hair care is a spin-off company, which means that its operation is
independent and outside of Lush’s concern. It has its own management structure, assets,
resources, sales, liabilities, and other administrative concerns. Hibiscus shampoo and
conditioner shampoo bar is a product created by Hibiscus Hair care, originally formed in
Iloilo City, to provide a new form of hair care product to the people of Iloilo.
Company Logo

Figure 1: Hibiscus Hair Care Logo

Hibiscus Haircare’s logo is a creative representation of a Gumamela flower. Proper

use of color was observed as well as appropriate use of space. This is to catch the attention of
the consumers - so that they may be able to read the company name clearly. The colors used
were simply red and white. These colors are reflective of the natural hues of the flower. The
color is represented to be emotionally intense, pure, and safe.

Tagline - “Bloom your Glory”

There are a lot of shampoo products existing in the market, most brands already
established themselves and are patronized by a lot of customers. These businesses participate
in the overwhelming competition in the market. In line with this, the company wants to
benchmark Gumamela as a shampoo and conditioner bar to build a unique competitive
advantage against competitors. The name of the product itself makes you imagine how it
looks and how it is presented as a shampoo and conditioner product. “Bloom your Glory”
because according to ​www.flowermeaning.com​, in China, Hibiscuses symbolize the fleeting
and beauty of fame or personal glory. It is given to both men and women - and this is why the
company promotes inclusivity. Hair, as the crowning glory, must bloom healthy and strong.

Goals and Objectives

The ultimate goal of this marketing plan is to make organic shampoo and conditioner
bars readily available to the market. This is to enter into a new business venture and present
the product to the target consumers as well as to local pasalubong distributors and outlets.

The specific goals and objectives of this business plan are:

Goal one: ​Ensure production of high quality shampoo and conditioner bar.

Goal two:​ Establish a distributor relationship between local pasalubong centers in Iloilo.

Goal three:​ Introduce and maximize organic farming.

III. Product Review

Years ago, only one company distributed shampoo bars in the Philippines. Shampoo
bars have become one of the best eco-friendly alternatives and travel companions. With the
current trend of climate change awareness, people now opt for products that produce less
plastic waste and shampoo bars and conditioner bars therefore its marketability is quite
favorable. Currently, many companies already ventured into this product but in Iloilo City
only a few are aware that such a product exists and there’s no physical store that offers such.

What are shampoo bars? Shampoo bars are just like your ordinary liquid shampoos
but in a solid form. Shampoo bars are designed to clean the hair without damaging it. It is
suitable for all kinds of hair, may it be curly, straight, frizzy, treated or colored hair.

Hibiscus Shampoo and Conditioner bar offers an all-natural hair care product. This is
a combination of a shampoo and conditioner in one bar where consumers can get the benefits
of having both in just one product. Our product highlights the main ingredient; the Hibiscus
or commonly known as Gumamela and its benefits for the hair. Hibiscus flower has many
benefits unknown to many people. It is one of the most renowned ingredients that is used for
hair growth.It is also a remedy for hair fall and premature graying of hair.

Raw Materials

Hibiscus (Gumamela) Flower

Popularly known as ​Gumamela ​in the Philippines, Hibiscus grows rampantly in many
gardens of Filipinos. Numerous local but older varieties of hibiscus grow wild in many of the
hills leading up to the interior of this island as in others some of which remain unidentified.

Finished Product

Hibiscus Shampoo and Conditioner Bar

Hibiscus Shampoo and Conditioner bar is a 2-in-1 hair care product that comes in a
new form. It is a combination of both shampoo and conditioner to give your hair the ultimate
care that it needs without damaging it. Shampoo bars are new to the market and it is not that
popular to the public.

Figure 2: Hibiscus Shampoo and Conditioner Bar

Figure 2 is a graphic illustration of how the product, Hibiscus Shampoo and

Conditioner Bar is presented. The bar is covered in wax paper and a sticker is located at the
top containing a catchy design.
 Benefits

Hibiscus flowers can promote the growth of thicker and stronger hair. The powder
made from sun-dried Hibiscus flowers prevents split ends, controls dandruff and reduces hair
fall to a great extent.

The brightly hued Hibiscus flowers are rich in nutrients such as amino acids that are
necessary for producing keratin, the building blocks of the hair. These flowers are capable of
stimulating hair regrowth even from dormant follicles and bald patches.

Leaves and flowers from the plant are moisturizing due to the high amount of
mucilage content in them. In addition, it has astringent properties, which helps reduce the oil
gland secretions and excessive oil secretion of the scalp. This property of the flower helps
cool and soothe the scalp to prevent itchy scalp and dandruff.

Rich in vitamin C and amino acids, the flower improves the blood circulation under
the scalp to stimulate healthy hair growth. Hibiscus is full of antioxidants and vitamins
necessary for the production of melanin, the pigment that gives the hair its natural color. In
result, it delays the premature greying of the hair. Along with that, amino acids add strength
and elasticity to the hair, making it strong.

Product Packaging
 Figure 3: Proposed packaging and design layout

Product packaging is an integral aspect of any brand because it is the primary tangible
and part of the product that consumers will first encounter along the market. The packaging
that will encase the product will be a small box. Given our brand identity of being pro-health
and pro-environment, the box is biodegradable which will make a plus in customer appeal. In
addition, the purpose of using a box is to protect the quality of the product. The packaging
also includes the company’s tagline and logo.

Prices

Hibiscus Shampoo and Conditioner bar can be purchased at a much cheaper price
compared to its competitors since the bar’s production and raw materials only incurs lower
costs. The pricing is primarily based upon the cost of the production.

Shampoo bars that are available in the market today are mostly sold online by
different established brands that offer a wide range of products. Price ranges from P65.00 to
P600.00 not to mention that most of these companies are based in Metro Manila and shipping
fees would cost another P60.00 - P150.00.

Based on the current market share of existing shampoo and conditioner on the
national rates, it can be concluded that this product is starting to gain more attention and more
customers. With the growing trend of environmentalism, global consumers are shifting their
buying habits and they are looking for companies that are environmentally-conscious to
support. This makes our product more attractive and more profitable.

Marketing Mix

In order to achieve the goals of the company particularly in entering the market in an
influential way resulting in a healthy flow of sales running into the business up until the end
of its first year, the following strategies are hereby presented. The marketing mix is primarily
concerned in positioning the product into the market and involves multiple areas such as
price, timing, location or sales channels and the like. These will mainly comprise this section
of the product.

● Product

The primary product is Hibiscus Shampoo and Conditioner Bar. The said
product will initially come in one product variant— 1 bar per box (110 grams). As
soon as the customer opens the package from the top, the first thing to be seen is a bar
covered in 1 layer of wax paper. 1 bar will be the standard for each package; total
mass amounting to 110 grams including the packaging.

The company is also set to come out with other sizes in packaging as soon as
the first year of operations has ended.

● Price

We determined the price based on the customer’s perceived value and based
from the competitors. ​We offer our product on the price range ​of P80​.00 to P100.00​,
which makes it reasonable based on the benefits of using our product. The prices are
primarily based on the costs incurred in the manufacturing and production of the
product.

● Place

The place of distribution will be in Iloilo City. The distribution channels that
we will use will be through direct marketing channels that include social media and
resellers as an indirect form of marketing channel.

● Promotions

To promote our product, we will use promotional tools such as advertising and
sales promotion. Advertising can be done through social media channels like
Facebook, Instagram, and Twitter because our target market also includes young
individuals that are fond of using the internet. Sales promotion can also help boost our
 sales by offering discounts and promos and giving out free samples so that consumers
can try them at home and assess the quality of the product.

IV. Review of Competition

There are existing and established companies that sell shampoo products which are
already known in the market and the target consumers might be patronizing over these certain
products already. Since competitors have entered the market earlier, they could have
established a strong relationship with the consumers and target suppliers as well.

● Direct Competition

Direct competition is a situation where two companies have the same product or
service offerings and compete for the same market. ​The direct competitors of the product
are the companies that also offer organic shampoo bars. There is a low number of
establishments that sell pure organic hair care products thus, there are no known direct
competitors present in Iloilo City.

● ​Indirect Competition

Indirect competition is also a situation where two companies have products or

services that are not alike but it could satisfy the same consumer need. ​The indirect
competitors of the product will be the well-established and famous shampoo brands such as
Palmolive, Head and Shoulders, Dove, and many more. These brands manufacture bottled
shampoos in liquid form and impose a strong indirect competition against the said product.

Positioning Strategy

Shampoo market is a place where competition is strong because there are lots of
companies that have already established their brand and customer loyalty. In order for us to
compete with these companies, we have to know what we are and what we are going to do by
positioning our company with our competitors. Hibiscus shampoo and conditioner has several
strengths that can be used to differentiate with other products.
 ● Low Cost Pricing Strategy
The main ingredient of our product is locally available and can also be
cultivated here in the Philippines. There is no need to import materials that are
needed to manufacture the product.
● 2-in-1 Product
Our product offers the benefits of having a shampoo and conditioner at the
same time. Consumers can save money by getting two products at a low price
compared to buying a commercialized individual shampoo and conditioner.
● Reusable Packaging
The packaging for our product will be a tin can where buyers can reuse it and
it contributes to the portability of the product which allows them to bring it
everywhere they go.

V. Review of Distribution

There are two ways to distribute our product: Direct Marketing and Indirect
Marketing. Hibiscus shampoo and conditioner will be distributed in both channels but
it will be mainly through indirect marketing. ​Our initial distribution strategy will involve
third-party distributors like resellers so that the product will be easily marketed to the
customers and for faster sales.To market our product effectively, the best channel that should
be used to reach our target customers and potential customers is through social media since a
lot of buyers find online shopping more convenient.
VI. Environmental Analysis

SWOT Analysis

Strengths

● First in making Hibiscus shampoo bar in Iloilo

Hibiscus is the first to commercialize Hibiscus shampoo bar in Iloilo. There is

no existing company found that manufactures the same product. Thus, it will
enjoy a number of customers.

● Contains all natural ingredients and does not contain harmful chemicals

Shampoos and conditioners contain a harmful ingredient known as

“​methylisothiazolinone (MIT)” that can contribute to cancer, liver disorders,
and neurological damage. However, our product only contains organic
ingredients that don't damage the hair upon usage.

● Lasts longer compared to liquid shampoos and conditioners.

The standard sized shampoo bar typically lasts longer than commercial
shampoos in a bottle and it can be used for 60 to 80 washes.

● Cheaper production costs

The required manufacturing skills and equipment are simple. The simplicity of
the production process allows the company to manufacture the shampoo bar
with ease and with lesser costs.

● Locally available main ingredient (Hibiscus)

Iloilo is surrounded by a number of large manicured gardens that showcase

numerous tropical and other flowering plants.
 ● Uses no single use plastic waste

Shampoo bars are biodegradable and the packaging doesn't use plastic
materials.

Weaknesses

● Not yet known by consumers

Hibiscus might have difficulty in catching the attention of consumers to try the
shampoo bar because there is not enough information about the product
available to the public.

Opportunities

● Having a new concept of hair care products

People tend to try new things in the market as long as it is attractive to the
eyes of potential customers.

● Growing demand of organic products as people become health-conscious

With pressing issues about global warming, people would now prefer products
that are eco-friendly.​ ​Organic products are now in demand to the public as the
issues of toxic chemicals found in commercial products.

● Opportunities to help local farmers

The flower industry in Iloilo had become unrecognized and got overshadowed
by the emerging tall buildings and infrastructures in the city. Local flower
farmers can be helped through this product because it will give them another
chance to revive the dying flower industry in the province.
Threats

1. Lot of established competitors can make similar product

The threat comes with producing these products is that bigger companies can
produce larger quantities and attract more companies using their popularity as
a more established brand.

Established competitors can be a big threat to the company because they all
have sufficient funds to create a new product that also offers the same benefits.

2. Tight competition in the hair care industry

Hair care industry is one of the most condensed industries in the world of
business. The market share is now limited since a lot of hair care brands are
existing, locally and internationally.

There are lots of established brands that have been on-going on the business
for so many years. It is hard to compete with companies that already have
established an image on the consumers minds and create a strong relationship
with them.

3. Customer choice

Most customers prefer buying more established brands of shampoo and

conditioner since it has been around the market for a longer time and already
built its image to the public.

Brand loyalty plays a part in the customer’s choice. It is hard to change their
decisions when they already have a product and mind that they know that will
give them the value that they should receive in exchange for the price that they
pay.
PEST Analysis
PEST or PESTLE Analysis gives light to the adverse or advantageous effects of
external factors such as Political, Economic, Social, Technological, Legal and Environmental
aspects that may affect Hibiscus Shampoo and Conditioner bar and to the future endeavours
of the company.

● Political
The proponents deem political factors as advantageous to the product. Business
ventures like the production of Hibiscus Shampoo and Conditioner Bar benefit from
the support of government agencies like DTI. The Department of Trade and Industry
accreditations and permits also come in handy for small scale enterprises.

● Economic
Iloilo City is one of the fastest growing cities in the Philippines attracting investors
and customers towards the city of love. This is an opportunity for the product to be
recognized on a wider scale. Local and international tourists come and go in the city
and Hibiscus Shampoo and Conditioner Bar may attract customers with its unique and
environment friendly features promoting organic materials and local flower industry.

● Socio-cultural
Filipinos are fond of beauty products, may it be skin care or hair care. In this modern
world where beauty and popularity comes with a price, introducing a new and
efficient shampoo and conditioner would be a very attractive offering to the public.
Hibiscus is also known and are proven to be beneficial to the body. Hibiscus
Shampoo and Conditioner Bar can be the initiator to transforming liquid shampoo and
conditioner to another form of hair care in the Philippines.

● Technological
The advancement of technology in terms of cosmetics has evolved, enabling us to
create a more healthy and toxic-less form of products for the public. Technology
opens the door for the development and improvement of the kind of products that we
use to our body.
 ● Legal
The firm should watch out for existing laws and ordinances related to the safety of the
product and the health of the consumers. Accreditations and permits from agencies of
the government must be secured to avoid future conflicts with the law.

● Environmental
Since the product uses raw materials that are organic and grown by local flower
farmers, the proponents see no future conflict with environmental concerns.

VII. Market segments

Hibiscus Shampoo and Conditioner bar employs a market strategy called mass
marketing. To back the company’s marketing goal of making it available or known to the
market, product awareness is a need, especially for a new market entrant, it must first target
the whole local market.

Hibiscus Shampoo and Conditioner bar’s target market includes:

● Hair-conscious individuals – Hibiscus Shampoo and Conditioner bar targets hair

conscious individuals because of the product’s health benefits. This target market
buys Hibiscus Shampoo and Conditioner bar as a healthy alternative to common
shampoos offered in the market.
● Local buyers – this potential target market generally includes students and
professionals who are based locally. This target market buys Hibiscus bars for
personal consumption.
● Organic consumers - This includes the people who are looking for alternatives that
could help in cutting down plastic consumption.
● Youth - Iloilo has a huge population that consists mainly of young individuals. This
young population is always open to experiencing new things which makes them a
good opportunity to market our product. We will focus more on attracting female
 teenagers because they are the consumers that are most likely to be attracted to these
kinds of products.

VIII. Marketing Objectives

Vision

The vision of Hibiscus Shampoo and Conditioner Bar is to be recognized as one of

the sought after brands of hair care products.

Mission

We are dedicated in bringing a new form of shampoo and conditioner to the market
that offers more than just hair care but also cares for the environment by using less plastic
waste and promoting organic ingredients. Through developing this product, we can provide
people with an option that uses less chemical content and thus ensuring that no side effects
will harm the consumers health.

Objectives

● To boost market presence of the product through physical and virtual

promotional campaigns.
● To introduce a new kind of hair care product that is convenient, chemical-free
and pro-environment to the market.
● To increase brand awareness in Iloilo within the first 3 years, in Panay within
five years and on national level in the following years.

IX. Continuously Satisfying Customer Strategy

In order for us to identify what strategies to implement to satisfy the target

market, we will use the STP (Segmentation, Targeting, and Positioning) model. STP
stands for the three steps that will help us analyze our product offering and how we
 would communicate the benefits to our customers. First is to segment the market,
second is to target the best customers, and lastly, position the offering. This model is
very helpful in segregating the market and it helps us identify the most valuable
customers and then develop and improve the current product to suit their needs.

Since Hibiscus Shampoo and Conditioner bar is a new entrant in the market,
its strategies will be based primarily in the new product development and market
entry strategies. Before the execution of the chosen strategies, the company will be
conducting a preliminary background check of its business environment using the
SWOT and PESTLE analysis to evaluate important matters such as internal strengths
and weaknesses and macro-environmental factors present in the market that may
likely affect the company’s operations and marketability of the product.

Soon after these careful assessments of the business environment, Hibiscus

will outline the product’s planned value proposition. This will include designing
various product, pricing, place, and promotion strategies that would convince
potential consumers to buy and patronize the product. Since the company aims for
sustainability, these assessments will take place from time to time in order to adjust to
the fast-changing market environment.

X. Sales Force Performance Strategy

Promotional Marketing Measures
● Product Sampling
Hibiscus is going to reach out to local organizers of trade fairs and join in their
activities. There are already existing trade shows in Iloilo like DTI-organized
fairs for SMEs or privately organized Produkto Lokal by businesses and
organizations. In these trade fairs, Hibiscus will set up a kiosk and give out
limited free samples of its products. A sales representative should be present to
effectively build up a hype for the product. Hibiscus will also display packed
products which can be directly bought from these kiosks. It is essential for the
company to establish a connection with local SMEs to be updated on the
different activities of organizations, to easily identify which activities the
 company should join in.

● Tie up with pasalubong centers

Efforts should be undertaken to tap pasalubong centers around Panay and other
possible outlets not just as part of the distribution channel, but more
importantly as a marketing strategy. Displaying products in different stores
would create a bigger market base and would close the gap of geographical
difficulty since there are pasalubong centers located in different parts of Panay.
This would also be strategic since Panay has a lot of tourist destinations which
means that a lot of people can be reached by the product.

● Digital Marketing
The revolutionary influence of social media in creating a buzz in the market is
one of the reasons why Hibiscus’ marketing campaigns are directed to creating
creative and informative content about the product. Utilizing social media
marketing strategies is way cheaper than mass media marketing and traditional
marketing methods, and it is easier to monitor traffic and reach in social
media, so marketing collaterals could be adjusted depending on the results and
market interactions. Hibiscus is to create an account on different social media
platforms and generate marketing content that may appeal to the public. One
of the most popular strategies in marketing a product is social media
marketing. Many consumers have access to social media and they use it on a
daily basis. Social media is a powerful tool that we can use to increase our
scope and our reach to target customers. It is the best strategy to use to engage
with customers and promote the product to target market online.

XI. Marketing Execution and Controls

Developing a comprehensive marketing strategy is essential in any business.
Without one, the management’s plan to attract customers and extend the scope of the
 product in the market will be inefficient and disorganized. Therefore, the focus of the
strategies should be towards customer demands and expectations and developing
long-term and strategic relationships with stakeholders.
The measures below are the guides to what marketing activities will be
implemented by the proponents. The marketing implementation of the company
involves three phases, mainly: Awareness Phase, Lead Generation Phase and Nurture
Phase. This section of the paper will explain each phase and the corresponding
activities and actions involved.

● Awareness Phase
This phase is the most crucial part of the marketing implementation since this
will be the starting point in which the product will be introduced to the public. This is
particularly important because the product must make an impression in the market and
generate a lasting buzz that people will talk about. This phase will utilize the power of
the Internet and social media. The proponents envision active participation of netizens
● Lead Generation Phase
In this phase, Paho Republik’s objective is to attract and convert strangers and
prospects into consumers who have indicated interest in its product – Hibiscus
Shampoo and Conditioner Bar . The awareness phase makes people conscious of the
existing product in the market and the lead generation phase encourages people to buy
the product. The lead generation phase would start at the second year, once the
company has already launched the product and established its brand in the market.
 ● Nurture Phase
In this phase, the company mainly aims to protect and maintain the image of the
product. This allows the retention of consumers to the product offering of the
company. Same marketing actions will be implemented, but not as intensive as the
first year. The company would decide to expand and reach the market in a national
level in this phase.
In this phase, Hibiscus Shampoo Bar and Conditioner should already have established
networks of pasalubong centers and also support from concerned government
agencies. This would build and nurture the brand image and identity of Paho
Republik.
To encourage retention, Hibiscus Shampoo Bar and Conditioner should constantly
generate a more creative content which would attract a larger market. Outlets should
also be spread all over the locality. Nurturing brand image would also mean
incorporating the business with social responsibility, to build a better public relation.

XII. Financial
Sales Projection
The selling price per unit costs ​P80.00 and the forecasted sales per unit will be
at least 300 units in one month. The projected sales per month will be P24,000.00. It
is not a special product that has peak season because it is a daily necessity for
Filipinos since we have a daily habit of taking a bath.

Fixed Costs
Fixed costs are costs that are incurred with or without production. The fixed
costs included in manufacturing the product will be the electricity used in production,
utilities and rent expenses.
Variable Costs
Variable costs are costs that vary and it is based on the level of activity. The
variable costs in creating the product will include salaries and wages of labor workers,
raw materials, and other expenses incurred in production.
Loan Activities
 Capital is needed to start the operations of the business. In order to acquire
funds, the business will make loans to the bank that costs P200,000.00 to buy the
necessary equipment, supplies needed such as raw materials and packaging for the
product, and payment for business permits.

XIII. Appendices

(Ericka) Journal Title: Hibiscus in the Philippines - Pearls in the Orient. By Carlos C.
Quirino, Jr. Volume 4, Number 4. Hibiscus International. October-December 2004.
http://www.internationalhibiscussociety.org/hibint/hiv1n21.pdf

(Ericka) Journal Title: Hibiscus Flower Promotes Hair Growth; Here're 8 Benefits Of
Hibiscus Flower For Gorgeous Hair. ​By ​Neha Gargi​. BollywoodShaadis.com. ​Last
Updated: Nov 7, 2017.
https://www.bollywoodshaadis.com/articles/8-benefits-of-hibiscus-flower-to-avoid-gr
ey-hair-7474

The Nielsen Company (2019). Retrieved December 6, 2019, from Nielsen:

https://www.nielsen.com/us/en/insights/article/2018/global-consumers-seek-companie
s-that-care-about-environmental-issues/

Anh, S. (2009). ​Hibiscus Shampoo. Retrieved from PB Works:

http://ecop.pbworks.com/w/page/18520615/Hibiscus%20shampoo%20-%20c
onditioner%200809
Hibiscus Shampoo and Conditioner Shampoo Bar
Marketing Plan

As a Partial Fulfillment to Management 170

Submitted By:
Arboleda, Alliah D.
Baldevia, Ericka Kirsten T.
Salbivia, Relyn

Submitted To:
Prof. Nathaniel Samson