MARKETING PLAN OF LUMPIANG CHEESEDA

AESQUIVEL, JACKIELYN C.

PORNILLOSA, KRIS-ANN KYLA R.

PEREZ, RAMON

PABELLANO, MCREY

QUILINGAN, ROYCE ROINNE E.

I. Target Market

The target market of Lumpiang Cheeseda includes male and female children,

youth and adults in the age range of 5 years old and above who are living in Pagbilao,

Quezon. This market belongs to lower class having a combined family income of

P11,914.50 and below and middle class whose combined family income is P11,915.00

to P49,526.00. Lumpiang Cheeseda will be launched in the market to replace unhealthy

snack food. This is because people today become conscious of their health.

II. Market Segment Size and Trends

The total population size of male and female children, youth, and adults in the

age range of 5 years and above who belong to lower and middle classes is 35,758

(source, year). Almost 60% of them are employed having an income starting from Php

4,000.00 - Php 5,400.00 per month. The remaining 40% is unemployed because they

are mostly children and youth who are still studying.

The market size is determined by considering the population data of the target

market and market acceptability of the product. Table 1 below presents the market

acceptability level of LumpiangCheesda.

Table 1

Market Acceptability Level of Lumpiang Cheesda

Frequency (f) %
Will buy 313 79%
Will not buy 83 21%
Total 396 100%
 Based on the results of the survey, 313 or 79% of this market is willing to avail

the product. The other 21% said that they will not buy the product. Hence, the total

market size is only 28,249 customers including those who live below poverty line, which

is derived from multiplying the population size of the target of 35,758 with the market

acceptability level of 79%.

One of the noticeable trends in this target market is shared by Agostoni,

Brambilla, Ciappolino, De Cosmi, Parazzini, & Scaglioni (2018) as stated that foods

provide nutrients and energy that is essential for human health. According to them,

nutrients, foods and dietary patterns play an important role as an implication in order to

prevent and develop chronic diseases such as cardiovascular diseases and cancers.

This is the main reason why children and adults are encouraged to eat healthy food.

Through this, they are able to prevent getting such diseases through monitoring the

food they eat. Most infants and children prefer sweet and salty flavours. It is important

for them to introduce variety of fruits and vegetables as an important strategy to improve

their healthy lifestyle.

On the other hand, NPD Group, Inc. (2019) claimed that people who are 22

years old and above tends to purchase food that will certainly benefit their health. Also,

they tend to buy something new and convenient at the same time. In addition Gustafson

(2018) stressed that millennials are leading the charge by making health promoting diet

and lifestyle choices a priority. This means that as they grow they tend to eat food which

can benefit their health and they prefer unique and convenient to prepare.
 Furthermore, French, Mitchell and Wall (2010) stated that people purchase food

depending upon the cost and availability. Following this thought, people who belong to

lower income groups have poorer quality diet. They tend to consume fewer fruits and

vegetables. They purchase a cheaper version of food items rather than an expensive

one. They consider the product they will purchase if it is not expensive and set aside if

they can avail it. Moreover, middle and high income groups spent their money buying

vegetables, fruits and sweet snacks. They spend their money buying both healthy and

unhealthy food.

These trends in the target market offer favourable impact on producing and

selling Lumpiang Cheeseda. This is an opportunity for the proponents to establish the

business as its market provides potential for the product to be viable as an offering.

III. Projected Demand

Demand refers to the quantity of the goods that the buyers will take from the

market given the price of the product. The demand for Lumpiang Cheeseda is

determined by considering the market size and average availment per year. Table 2

provides the data on average availment.

Table 2

Frequency of Availment of Lumpiang Cheeseda

Frequency (f) Multiplier Availment

Every day 228 365 83,220
Once a week 115 52 5,980
Once a month 53 12 636
Total 396 89,836
Computation of Average Availment Per Year:

89,836
Average Availment/Year = ------------------- = 226.86 or 227 /year/customer
396

As shown in Table 2 and supporting computation of average availment, 228 of

the respondents will buy the product everyday. 115 of them will buy Lumpiang

Cheeseda once a week. The remaining 53 will buy the offering once a month. With

these figures on frequency of buying Lumpiang Cheeseda, the number of pieces that

will be availed by the target customers is 89,836 in a year. By dividing the yearly

availment of 89,836 by the number of respondent-customers of 396, the average

availment per year is 227 pieces per buyer.

The demand for Lumpiang Cheeseda, then, can be determined as shown in

Table 3.

Table 3

Computation of Projected Annual Demand

Population of Individual (5 years and above in lower and 35,758

middle income groups)
Less: Poverty Incidence (30%) 10,727
Market Segment Size 25,031
Multiply by Market Acceptability (79%) 19,774
Multiply by Number of Availment 227
Total Demand 4,488,809

The total population of individual is 35,758 and these are male and female five

years old and above who belong to lower and middle income groups in Pagbilao,

Quezon. The poverty incidence of Pagbilao is about 30% (source, year). This poverty

incidence rate of 10,727 will be subtracted from the total population of 35,758 because

these individuals have no buying power. They are not potential customers. This results
to market segment size of 25,031 individuals. In order to get the projected annual

demand of Lumpiang Cheeseda, the market segment size will be multiplied to the

market acceptability level and the average availment per year. The total annual demand

of Lumpiang Cheeseda is 4,488,809 pieces.

IV. Estimated Market Share

The estimated market share is 20℅ of the total annual demand of 4,488,809 is

897,762 pieces of Lumpiang Cheeseda. The company will only assume that market

share which it will intend to initially serve in the first year and will gradually increase by

5% every year.

V. Competitive Analysis

Each business has their own uniqueness because it has its distinct features. To

make the business competitive, it has to make its product more unique compared to

their rivals. There is always competition both in small and large market. This is the

challenge that all businesses have to face.

Some of the competing products of LumpiangCheeseda are instant noodles,

canned goods, chips, candies and soda crackers which are conveniently found in sari-

sari stores.

Native delicacies vendors are also considered competitors of the company as

they sell products which offer nutritional benefits. These products are better known

compared to Lumpiang Cheeseda, which is at its point of initial launch in the market.
However, the proponents’ interview of potential customers indicated that only few

vendors are selling such delicacies in the local place.

Ambulant vendors selling street food are taken as direct competitors of Lumpiang

Cheeseda. Street food often reflects traditional local cultures and exists in an endless

variety. Street food is likewise better known compared to Lumpiang Cheeseda. These

kinds of food are popular among children but it is not good for their health. It is unsafe to

eat because the products are exposed to various contamination agents and the

sanitation issue with these kinds of food are very evident as these businesses are not

usually registered with the appropriate agency of the government.

Taking a look at this information, Lumpiang Cheeseda has its competitive

advantages in terms of sanitary protection, nutritional benefits and stable supply in the

local place.

VI. Projected Supply

Table 4

Direct and Indirect Competitors of Lumpiang Cheesda

SUPPLIERS QUANTITY ANNUAL %

DIRECT:
Tita Nit's Canteen 300/day 109,500 9.96%
Tita Marie's Canteen 35 /day 12, 775 1.16%
Jun's Canteen 50/day 18, 250 1.66%
Magkasalo Eatery 20/day 7, 300 0.66%
Perla' s Carinderia 130/day 47, 450 4.31%
Nana Santa's Canteen 32/day 11, 680 1.62%
INDIRECT:
Daran's Sari-sari Store 200/day 73, 000 6.64%
Marie's Sari-sari Store 75/day 27, 375 2.49%
Mel's Sari-sari Store 135/day 49, 275 4.47%
R.J's Sari- sari Store 32/day 11, 680 1.62%
Karen's Sari-sari Store 35/day 12, 775 1.16%
Menard's Sari-sari Store 80/day 29, 200 2.66%
Jojo's Sari-sari Store 100/day 36, 500 3.32%
Alcance's Sari-sari Store 55/day 20, 075 1.82%
M.J's Sari-sari Store 100/day 36, 500 3.32%
Minda's Sari-sari Store 30/day 10, 950 0.99%
Mercy's Sari-sari Store 60/day 21, 900 1.98%
Lita's Sari-sari Store 43/day 15, 695 1.43%
Ambulant vendors 1000/dayU 365, 000 33.2%
Delicacies vendors 500/day 182, 500 16.6%
TOTAL 1, 099, 380 100%

Table 4 presents the direct and indirect competitors of Lumpiang Cheeseda. It

can be noted form the table that direct competitors of Lumpiang Cheeseda are mostly

canteen, carinderia or eatery. Sari-sari stores provide the big bulk of indirect

competitors of Lumpiang Cheeseda. Ambulant vendors and delicacy vendors are also

indirect competitors in the local place.

Canteens, carinderias or eateries are considered as direct competitors because

they offer the same product which is lumpia. The indirect competitors of Lumpiang

Cheeseda are the sari-sari stores, ambulant vendors and street vendors. Although they

do not sell lumpia, they are still considered as indirect competitors because they offer

snacks that can replace the Lumpiang Cheeseda. Table 4 shows that Tita Nit’s

Canteen have the highest supply of lumpia. The main indirect competitors of Lumpiang

Cheeseda are the ambulant vendors which have the highest supply of street foods

compared to sari-sari stores and delicacy vendors.

VII. Demand — Supply Gap Analysis

To determine if there is really demand for the product, a demand – supply gap

analysis is done by the researchers using the next page.

 Demand — Supply = Unseved Market
4,488,809 — 1,099,380 = 3,389,429 pieces of Lumpiang Cheeseda

In order to get the unserved market, the proponents get the total demand and

subtract the total supply from it to come up with the demand-supply gap of 3,389,429

pieces of Lumpiang Cheeseda. This unserved market serves as the basis of setting the

market share.

VIII. Projected Sales in Unit

Quantity x Price per unit = Projected Sales for the first year

897,762 x Php 7.00 = Php 6,284,334.00 for the first year

Thereare 3,369,544 unserved market. But the market share that the business will

intend to initially serve is only 20% of the projected deamand of 4,488,809 pieces which

is equivalent to a quantity of 897,762. Hence, its projected sales in the first year is Php

6,284,334.00 which is expected to increase by 5% in the succeeding years.

IX. Marketing Strategy

A. Product Strategy

Lumpiang Cheeseda is the proposed product. To make it more delicious, the fish

has been mixed with cheese that is why it is known as Lumpiang Cheeseda. The

product is rich in vitamin A, B12, B6, C, D and E. It also contains zinc, iron, and

selenium. Fish as the main ingredients contains unsaturated fats which help to

decrease rates of cardiovascular diseases.

 Figure 1. The Product “Lumpiang Cheesda”

In order to capture the attention of the potential buyer, the proponents create a

brand name and logo for the product. Its logo shows a simple yet attractive and artistic

design. The logo contains the contact number of the business as well as the brand

name. It has the picture of lumpia and a fish. The nutritional facts of the product are also

placed as part of the product label. The brand name speaks of itself as a product which

is a lumpia made of fish. Lumpiang Cheeseda will surely be recognized as it has unique

taste and benefits that other food cannot provide. Its unique taste will get the attention

of the customers and it is expected that they will give positive feedbacks because of its

health benefits.
 Figure 2. The Product’s Brand, Logo and Label

Since the proponents will deliver the lumpia to the final consumer, the

proponents will contain the Lumpiang Cheeseda in a banana leaves inside the ‘bilao’

which is covered by plastic wrapper to protect the product from contamination and to

preserve its freshness. It will be less

expensive if the proponents will use

this kind of packaging as it lessens the cost

of the packaging materials. The

proponents come up with this idea

because most of the people just throw

the container after they eat the food. With

these, the proponents think of something that will be more practical and economical way

that also considers environmental issues since banana leaves can be decomposed after

using and the “bilao” may be recycled for use.

 Figure 3. Product Packaging

B. Pricing Strategy

Cost-based pricing approach is utilized in order to determine the price of the

product. The process of applying the principles of this general pricing approach is

shown next page:

Direct Materials
Galunggong/Mackerel Scad (20 kls.) Php 2,400.00
Cheese (20 pcs.) Php 600.00
Carrots (7 kls.) Php 600.00
Lumpia Wrapper (25 packs) Php 625.00
Black Pepper Php 200.00
Onion Php 300.00
Oil Php 300.00
Garlic Php 250.00
Magic Sarap Php 100.00
Salt Php 50.00
Vinegar Php 100.00
Chili Php 100.00
Flour Php 50.00
Water Php 200.00
Indirect Materials
Bilao Php 200.00
Label Php 100.00
 Plastic Cover Php 80.00
Banana Leaves Php 50.00
Labor Cost
Direct– Production Staff Php 2,036.00
Indirect– Supervisor Php 914.00
Maintenance Staff Php 491.00
Overhead Cost
Cleaning Supplies Php 100.00
Plastic Gloves Php 50.00
Hairnet Php 60.00
Kitchen Tools Php 150.00
Water Php 100.00
Electricity Php 650.00
Repairs and Maintenance Php 300.00
Depreciation Php 200.00
Manufacturing Cost Php11,256.00
Divided by Units Produced 2,500
Cost per unit Php 4.50
Cost desired Php 4.50
Mark up (40%) Php 1.80
Selling Price Php 6.30
Suggested Selling Price Php 7.00
==========
The general pricing approach has been used to ensure that all production and

overhead costs are covered. Also, this leaves enough margins to make a profit. The

proponents also used the approach under the cost-based pricing which is the cost-plus

pricing wherein they added the standard mark up to the product’s cost.

C. Place (Distribution) Strategy

 Distribution channel is an essential part on how the proponents will deliver their

product to their final customers. It helps them to identify the method to use to reach the

consumers.

In order to distribute the Lumpiang Cheeseda, the proponents will use the direct

marketing channel wherein the producer is also the distributor. There are no

intermediaries involved in model of distribution strategy. The producer is the one that

brings their product to the final customers. The proponents use this as their channel so

they can directly interact with their potential customers. The proponents will sell the

Lumpiang Cheeseda in door to door basis. Also using the direct marketing channel,

they donot need to pay the middlemen so the profit will go only to them. Although this

channel will be hard to adopt, especially when disposing the product to the intended

market, the proponents are ready to exert extra effort in order to attain the desired

goals.

PRODUCER CONSUMER

Figure 4. The Zero Channel Model of Distribution

D. Promotional Strategy

Good promotion can build brand awareness of the potential customers. In order

to promote Lumpiang Cheeseda, the proponents will use the free tasting of the product

in its initial offering and word of mouth communication strategy regularly. With these, the

proponents will have to create a product that will be remarkable and will leave positive
impression to the customers. If they experience the distinctive taste of Lumpiang

Cheeseda, consumers will promote the products through their positive feedbacks to

other customers. When other customers heard it, they would not hesitate to buy it.

Hence, the number of customers will grow, the brand will be known and consequently

the business will succeed. In addition, the business can connect directly with the

customers to know their feedbacks about the product. It will help them to immediately

take an action if there is a problem.

ANALYSIS OF SURVEY DATA

Demographic Profile

Figure 1: Age of people in Pagbilao, Quezon

5-9 = 4% 30 - 34 = 11%

10 - 14 = 13% 35 - 39 = 13%

15 - 19 = 20% 40 - 44 = 6%
20 - 24 = 8.5% 45 - 49 = 6%

25 - 29 = 8.5% 50 - 54 = 10%

Sex

Male Female

Figure 2: Percentage of Sexes in Pagbilao, Quezon

 Status

Single
Married
Widow

Figure 3: Percentage of Statuses in Pagbilao, Quezon

Job

Employed
Unemployed

Figure 4: Percentage of Employed and Unemployed inPagbilao, Quezon

Survey Questions:

1. Anonguri ng lumpia ang gusto

mongbilhin?

Karne(baboy) (51%)

Isda (38%)

Iba pa ( 11%)

2. A. Kung karnengbaboy,

magkanomonabibili ang

isangpirasong lumpia?

5 - 10 ( 61%)

8 - 10. ( 31%)

ibapa ( 8 %)

B. May nagtitindabasainyo ng

maramihang lumpia

nagawasaisda?

Meron( 46%)

Wala ( 54%)

C. Kung merongaanokadami

1 - 5( 54%)

6 - 10( 27%)
 11 - 15 (14%) H. Kung buwan-buwanilangbeses?

Iba pa ( 5 %)
1-2( 20%)
D. Ilan ang kadalasanglaman ng
3-5( 23%)
maramihang lumpia
6-8. ( 38%)
nagawasakarne ng baboy?
iba pa ( 19%)
5 - 10 ( 41 %)
I.Paanomobinibili ang
11 - 15 ( 58%)
lumpianggawasakarne?
iba pa ( 1 %)

E. Gaano ka kadalasbumibili ng Tingi ( 64%)

lumpianggawasakarne? Maramihan ( 36%)

Araw-araw ( 45%)

Lingo-lingo( 22%)
3. A. Kung isda, anonguri ng isda ang
buwan-buwan ( 23%)
gusto mongilahoksa lumpia
F. Kung araw-arawilangbeses?

1-2 ( 33%) Galunggong. ( 35%)

3-5 ( 25%) Tamban( 15%)

6-8 ( 35%)
Tulingan ( 14%)
Ibapa ( 7%)

. Tambakol ( 13%)
G. Kung lingo-lingo ilangbeses?

. Gulyasan ( 14%)
1-2 ( 29%)

3-5 ( 30%) Iba pa. ( 9%)

6-8 ( 36%)
B. May nagtitindabasainyo ng
Iba pa ( 5%)
Lumpianggawasaisda? Plastic ( 36%)

Meron. ( 19%) Paper Plate. ( 22%)

Wala ( 81%) Iba pa ( 10%)

C. Kung meron,ilan? 6. Anonguri wrapper ang gusto

mongibalotsa lumpia?
1-5 (51%)

Ordinary wrapper ( 59%)

6-10 ( 21%)

Egg roll wrapper ( 31%)

11-15 ( 17%)

Iba pa ( 10%)
Iba pa. ( 11%)

7. Anong sauce ang gusto mong

4. Gaanokabigat ang isangpirasong

Sawsawan ng lumpia?
Lumpia?

Suka ( 33%)
18 grams ( 39%)

Mayonnaise ( 13%)
19 grams ( 24%)

Mayonnaise at ketchup
20 grams. ( 18%)
(23%)
Iba pa ( 19%)
Iba pa. ( 9%)
5. Anong gusto monglalagyan ng
8. Paanomogustongbilhin ang
Lumpia?
Lumpia?
Dahon ng saging ( 32%)
Luto ( 69%)
 Hindi-luto. ( 31%) Fishball ( 31%)

9. Paanomogustongbilhin ang kikiam ( 20%)

Lumpia? Siomai. ( 36%)

Pang-ulam. ( 47%) Iba pa. ( 23%)

Pang-meryenda. ( 53%) C. Kung sa delicacies vendors, ano ang

10. Saan ka bimibili ng meryenda? Kadalasanmongbinibili?

Sari-sari Store ( 55%) Pilipit ( 43%)

Ambulant vendors ( 21%) Palitaw. ( 30%)

Delicacies vendors ( 14%) Sapin-sapin ( 14%)

Iba pa ( 20%) Iba pa. ( 13%)

11. A. Kung sari-sari store, ano ang D. Gaano ka kadalasbumibilisa sari-sari

Kadalasanmongbinibili? store?

Softdrinks ( 32%) Araw-araw ( 61%)

Junk foods ( 42%) Lingo-lingo. ( 18%)

Candies. ( 11%) Buwan-buwan. ( 21%)

Iba pa. ( 15%) E. Gaano ka kadalasbumibilisa

ambulant vendors?
B. Kung ambulant vendors, ano ang

kadalasanmongbinibili? Araw-araw ( 27%)

 Lingo-lingo. ( 54%) Matamis. ( 28%)

Buwan-buwan. ( 19%) Medyomaalat. ( 16.5)

F. Gaano ka kadalasbumibilisa Iba pa ( 16.5%)

delicacies vendors?
15. Gaano ka kadalasbibili ng

Araw-araw ( 23%) lumpianggawasaisda?

Lingo-lingo ( 45%) Araw-araw. ( 58%)

Buwan-buwan. ( 32%) Lingo-lingo. ( 29%)

12. Bibili ka ba ng Buwan-buwan. ( 13%)

lumpianggawasaisda?
A. Kung araw-araw, ilangbeses?

Oo ( 79%)
1-2. ( 33%)

Hindi. ( 21%)
3-5. ( 40%)

13. Bakit ka bibili ng

6-8. ( 25%)
lumpianggawasaisda?
iba pa ( 2%)
Mura ( 23%)
B. Kung lingo-lingo ilangbeses?
Bagong lasa ( 63%)
1-2 ( 33%)
Iba pa ( 14%)
3-5 ( 38%)
14. Anong gusto monglasa ng lumpia?
6-8. ( 18%)
Medyomahalang ( 39%)
Ibapa.( 11%)
C. Kung buwan-buwan, ilangbeses?

1-2 ( 25%)

3-5. ( 17%)

6-8 ( 51%)

Iba pa. ( 7%)

Number of Availment

Once a day 228 83, 220

Once a week 1155, 520

Once a month 53 638

39689, 376