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Place Strategy

For a business that caters to the medical needs of its customer, Ginhawa is to be
strategically located in the parameter of the hospital and health centers. This will offer
convenience to the demands of its target market which are the healthcare workers,
patients with medical equipment needs. This is strategically located in the downtown
proper of Tacloban City, Leyte because it is the middle ground of the big hospitals in
Tacloban City like Eastern Visayas Regional Medical Center (EVRMC), Saint Paul’s
Hospital, Tacloban Doctors Hospital, Ace Medical Center, and others.
Above picture is terrain map of the City Proper of Tacloban.

Above picture is the landscape of City Proper of Tacloban.

There will be a retail store manager that will oversee its operation in sales and
storage inventory. As to its supply, the warehouse will also be located near its store for
the convenience of transportation.

Above pictures is the retail store and storehouse of Ginhawa.

Distribution Flow Chart


One traditional framework that has been used to express the channel mechanism
is the concept of flow. These flows reflect the many linkages that tie channel members
and other agencies together in the distribution of goods and services. From the
perspective of the channel manager, there are five important flows.
i. Product flow
ii. Negotiation flow
iii. Ownership flow
iv. Information flow
v. Promotion flow
The product flow refers to the movement of the physical product from the
manufacturer through all the parties who take physical possession of the product until it
reaches the ultimate consumer. The negotiation flow encompasses the institutions that
are associated with the actual exchange processes. The ownership flow shows the
movement of title through the channel. Information flow identifies the individuals who
participate in the flow of information either up or down the channel. Finally, the
promotion flow refers to the flow of persuasive communication in the form of
advertising, personal selling, sales promotion, and public relations.

Product Flow Negotiation Flow Ownership Flow Information Flow Promotion Flow

Manufacturer
Manufacturer Manufacturer Manufacturer Manufacturer

Advertising Agency
Transportation Transportation
Medical Institutes and
Practictioners
Storehouse Storehouse Storehouse Storehouse
Storehouse

Retail Store Retail Store Retail Store Retail Store Retail Store

Consumers Consumers Consumers Consumers Consumers

People Strategy
Employees are important assets to the business, so Ginhawa need to make it a
point to attend to the employee’s safety and satisfaction. This will help plan how to
utilize its employees and making sure that its objectives are achieved. This part of
planning the people strategy will strategically help establish a more systemic
organizational.
Sales Associate Task
In a business that caters on the medical necessities of its customer it needs external
help that will optimize workforce to ensure that CliniCalc can saturate the market, thus
establish a brand that the market will recognize. The function of the sales agents will
also efficiently traverse the product distribution to its target market among hospitals,
clinics, and other medical institutions. They will be sent out to the target locations for
product introduction and distribution:
 Medical doctors and assistants in hospitals and clinics as they are the one who
are in need of the functions of CliniCalc
 Individual with medical needs, including those with private nurses and in-house
care
 Barangay health centers that are initiating household health programs
 Non-government offices that facilitate medical and outreach missions for
partnership
 Kiosk in the public places to help spread the information regarding the CliniCalc
with product demonstration, infographics, and leaflets.
 Attend to the sales made by the customers online and assist the shipment
 Check the emails for the sales requisition of the customers, confirmation from
the suppliers, and the other concerns that are sent through the e-mail accounts
of the business.
Sales Associates Skills
The following are the qualifications that need to be possessed by the sales associates:
 Good interpersonal skills. Being a sales associate, interactions with different
kinds of people they need to be apt in terms of their communication skills both
verbal and non-verbal means. They also need to be able to create social relations
in order to properly execute the tasks that they are given. This will also create
impression of the products itself; once the agent is an effective and excellent
communicator. It would be a good option if the sales associates can be
 Organizational skills. Being able to remember customer’s preferences,
keeping track of inventory and documenting needed paperwork is essential.
Having a set system and schedule is helpful when it comes to one’s
organizational skills in the workplace.
 Problem-solving skills. Knowing how to problem-solve shows the sales
associate is capable of quickly responding and solving obstacles when they arise.
Being a great problem solver will help in situations when customers have
complaints or concerns.
 Time management skills. Sales associates are often pushed and pulled in
different directions because of the high volume of customers they encounter.
Effectively managing one’s time can help manage multiple demands effectively
without feeling overwhelmed. This is a great way that the sales associate is
capable of being productive in a timely manner. It also lets the sales associates
able to prioritize daily tasks, focus on what’s important and that they can adhere
to a set schedule to ensure deadlines are met.
 Product knowledge. In order to be a great sales associate, one need to know
everything there is to know about the item they’re selling. Understanding the products
will provide the sales associates with the ability to answer customer questions, provide
them with accurate information and point them in the right direction. A good
understanding of product knowledge will also build customer trust. 
 Retail software skills. Along with being technologically savvy, the sales
associates need to understand the specific software that the future company
uses. This company may require one to work with an electronic register or credit
card processor.
 Team leadership skills. Regardless of one’s experience level, having great
leadership skills is a must. This business is looking for sales associates that can
be an effective leader when needed. As with any other position, an effective
leader is one who not only interacts well with others but can also take charge
when problems arise.
 Numeracy. While it can be easy to depend on retail software, it’s also important
to be a good mathematician in a sales associate position. Should the computers
have a glitch, their ability to manually calculate prices, discounts and transactions
will be a valuable asset. While you may be up-to-date on the latest technology,
your numeracy skills must be up-to-speed as well.

Costs of the Marketing Activities

Marketing Activities Estimated Annual Costs Estimated Increase


to Sales in (%)
Leaflets P5,000.00 5%
Customer Impression (Word-Of- P1,000.00 15%
The-Mouth)
Tarpaulin Signages P15,000.00 5%
Promotion Kiosk P100,000.00 6%
Commercial Merchandise P50,000.00 6%
Product posts on social media sites P4,320.00 18%
TV Advertisement P100,000.00 15%
Google Ads P2,000.00 15%
Sponsorship on Events P5,000.00 5%
Public Relations P120,000.00 20%
Printed Ads P10,000.00 5%
Outsourcing of Products P86,400.00 15%
Conference and Seminars P48,000.00 12%
Automated Emailing P180,000 5%
Telemarketing Management P8,400.00 4%
Search Engine Optimization P900,000.00 22%

Pricing Strategy
Contribution Based Margin is a pricing strategy which works without any mention
of gross margin percentages. It maximizes the profit derived from a company's
assortment, based on the difference between a product's price and variable costs (the
product's contribution margin per unit), and on one's assumptions regarding the
relationship between the product's price and the number of units that can be sold at
that price. The product's contribution to total operating income is maximized when a
price is chosen that maximizes the 'contribution margin per unit X number of units sold'.
Theoretically, contribution margin per unit is the difference between the price of
a product and the sum of the variable costs of one unit of that product. Variable costs
are all costs that will increase with greater unit sales of a product or decrease with
fewer unit sales (as opposed to fixed costs, which are costs that will not change with
sales level over an assumed possible range of sales levels). Examples of variable costs
are raw materials, direct labor (if such costs vary with sales levels), and sales
commissions. The contribution margin per unit of each product multiplied by units sold
equals the contribution to profit from sales of that product, and the total of
Contributions to Profit from all a firm's products minus the firm's fixed costs equals the
firm's operating income.

Selling Price − Buying Price Per Unit = Contribution Margin Per Unit (cm)

Contribution Margin Per Unit x Units Sold = Stock Keeping Unit's Contribution to Profit (CM)

Contributions to Profit From All SKU's − Firm's Operating Expenses = Total Firm Profit

Therefore, using the simplified example of a single-product firm, a firm would


maximize profit by determining the price that maximizes contribution to profit (i.e.,
contribution margin per unit multiplied by the number of units sold), since the fixed
costs that will next be subtracted will, by definition, be a constant regardless of the
number of units sold. Due to the relative differences in order size and the efforts that a
retailer or distributor have to make, different industries have different typical
distribution margins.
Assuming an inverse relationship between price and sales volume, as is the case
for most products since a lower price will generally induce higher unit sales, the firm
would assume likely unit sales levels at various price levels, calculate the contribution
margin per unit for the product at each of those price levels, multiply the number of
units by the corresponding Contribution Margin Per Unit at that price level and choose
the highest Contribution to Profit to maximize profit.
Ginhawa will use this pricing strategy as it is seen fit to accommodate the need
of the target market’s demand for lower cost of medical needs that will reciprocally
generate profitable margins in accordance to its cost of operations. The standard level
of markup is at 10 percent maximum and not exceeding. This is to work on the
prevailing market value of the active market and industry of the products that the
business offers. Relatively, upon imposing promotion activities for the products offered
by the business the applicable percentage of its discount will run maximum of 2 percent
and will not exceed more. In excess to this may further compromise the cost of the
business’ operations.

Product Regular Prices Promo Prices


CliniCalc P129,00.00 P126,000.00
Karman Ergonomic Ultra Lightweight P47,850.00 P46,893.00
Wheelchair
Featherweight's 13.5 lbs wheelchair P30,195.00 P29,590.00
Medacure Pressure Redistribution Foam P16,225.00 P15,930.00
Hospital Bed Mattress P3,135.00 P3,075.00
OxLife Independence Portable Oxygen P120,780.00 P118,360
Concentrator System
Hamilton G5 Ventilator P1,530,000.00 P1,499,999.00
Cynamed Surgical Set P21,199.95 P20,774.95
Becton Dickinson (BD) Syringe P650.00 P630.00
SURGITECH Suction Machine P4,795.00 P4,699.95
Ergobaum 7G Crutches P10,950 P10,730.00
Coleman All Purpose Mini First Aid Kit P1,363.45 P1,200.00

Promotion Strategy

Promotional Tool No. of Units Unit Price Est. Annual Costs


Leaflets is a printed and readable 1,000 P5.00 P5,000.00
advert that is smaller than flyers and
brochures but is strategically made to
outlast due to the fact that it is made
of high-quality paper.

Customer Impression (Word-Of- P1,000.00


Mouth) is when a consumer's interest
in a company's product or service is
reflected in their daily dialogues.
Essentially, it is free advertising
triggered by customer experiences—
and usually, something that goes
beyond what they expected. Word-of-
mouth marketing can be encouraged
through different publicity activities set
up by companies, or by having
opportunities to encourage consumer-
to-consumer and consumer-to-
marketer communications.

Tarpaulin Signages is signage that is 1,000 1,500.00 P15,000.00


generally defined as any kind of
graphic display intended to convey
information to an audience, this also
made of vinyl products in order for it to
be outstand weathering.

Promotion Kiosk is the new place for 2 50,000.00 P100,000.00


guests to engage with our sales
associates with our products and
promo offers, unifying all loyalty

program guest service functions into a


simple, self-service solution. The kiosk's
control panel makes using the
promotional platform intuitive for your
staff and your guests.
Commercial Merchandise refers to 1,000 50.00 P50,000.00
any type of goods, including personal
or commercial products, as well as
commodities that are given away free
by the company aiming at cultivating
loyalty.

Product Posts on Social Media P4,320.00


Sites is simply a creative social media
post ideas for all the major social
media platforms advocate for the
company’s products or services during
social media campaign.

TV Advertisement is a span of 30 Seconds P100,000.00 P100,000.00


television programming produced and Video
paid. It conveys a message promoting, Advertisemen
and aiming to market, a product or t
service.

Google Ads is an online advertising P2,000.00


platform developed by Google, where
advertisers bid to display brief
advertisements, service offerings,
product listings, or videos to web users.
It can place ads both in the results of
search engines like Google Search and
on non-search websites, mobile apps,
and videos.

Sponsorship on Events is the act of P5,000.00


supporting an event, activity, person,
or organization financially or through
the provision of products or services.
The individual or group that provides
the support, similar to a benefactor, is
known as the sponsor.

Public Relations promotes the 5 P126,000.00 P630,000.00


transfer of goods and services from the
producer and provider to the
consumer. Public relations help an
organization and its publics adapt
mutually to each other. Marketing's
immediate goal is sales.
P10,000.00

Printed Ads means advertisements


that are printed in hard copy in
publications (newspapers, magazines,
journals) likely to be read by your
target audience. Every advert bought in
a magazine with a big circulation will
increase the likelihood that the
company will reach a wide audience.

Outsourcing of Products means that $30 per P86,400.00


a company can buy a product rather hour
than produce it itself. It allows a
company to share risks, reduce
operating costs; free tied-up resources
minimize hard to manage processes or
functions, improve its market focus and
keeps the company flexible.

Conference and Seminars. A 36 target P5,000 per P180,000.00


conference refers to a large formal seminars month
gathering of several people or say,
members, to talk about a specific topic
or subject of common interest. A
seminar is an instructional event,
wherein one or more experts
communicate some information,
through lecture or general discussion.

$300 per P180,000


month

Automated Emailing referred to as


triggered email or behavior-driven
email, is any message automatically
sent from your email service provider
(ESP) in direct response to an
individual user's specific actions made
(or not made) on your website or web
app.

Telemarketing Management refers 12 month P700 per P8,400.00


to coordination of staff working in a call month
center. Their duties include recruiting
sales personnel, managing teams,
training staff, setting sales targets,
developing sales strategies, maintaining
customer relationships, and
implementing CRM systems.
Search Engine Optimization is the 12 month $1,500 per P900,000.00
process of improving the quality and month
quantity of website traffic to a website
or a web page from search engines.
SEO targets unpaid traffic rather than
direct traffic or paid traffic.

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