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CROCHETYARN

ABM RUBLE (GROUP 5)

Leader:

Alyssa Watimar

Members:

Margareth Malazarte

Stephanie Malazarte

Junalin Predis

Kashmin Tabucanon

Marjun Tahanangit

Charles Villacorta

Jan Reinan Toyong

Subject Teacher: Ms. Melody Joie

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TABLE OF CONTENTS

Introduction ………………………………………………………………………. 3

Company Analysis ………………………………………………………………. 4

Market Definition Potential and Beyond ………………………………… 6

Swot Analysis ……………………………………………………………………. 7

Marketing Objectives and Goals …………………………………………… 9

Marketing Strategy ……………………………………………………………… 10

Implementation and Control ………………………………………………… 14

Conclusion ……………………………………………………………… 16

INTRODUCTION
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Crochetyarn is a handicraft business situated in Ormoc City Plaza as the top

tourist destination. We provide the best quality handmade crocheted products

such as keychains and accessories that are personally customized to customers’

preferred designs. The best part of this business is all the products are 100%

handmade and will ensure all our works will perfectly fit customers’ tastes and

choices will earn their satisfaction.

Many people love crafts and other handmade products as part of their lifestyle

because of their significance in the social, emotional, and psychological aspects.

That is why we choose this line of business; to offer the customers a valuable

product while maintaining a healthy and helpful environment. We aim to give the

best artistic, innovative, and unique quality handmade crocheted at a reasonable

price while giving them the best service. Furthermore, we will always put efforts

into their product that rest beautiful and meaningful which will be appreciated.

Crochetyarn will all times demonstrate commitment to its objective by providing

unique and good quality handmade crochets in the City of Ormoc, We are bound

to create a joyful atmosphere centering on the art of crochet by giving them the

happiness they deserve and satisfaction while purchasing our product

Crochetyarn will ensure that we will hold its brand to good reputation and high

standard by meeting customer needs.

COMPANY ANALYSIS
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Demographic profile

It is up to the customer who wishes to purchase or obtain a Crochetyarn

product to determine whether its products satisfy their preference due to their

curiosity, and they will be encouraged to purchase its products due to their

quality and uniqueness. It is not as expensive as its competitors. There has been

an average of 15–18-year-old students who prefer to spend their money on

products that are both affordable and worthwhile. There are also teachers

between the ages of 20 and 55 who are interested in purchasing products from

their students.

Psychographic Profile

Teenagers, because of their backgrounds and desires, are a good fit for the

product Crochetyarn has to offer because they want to show the other customers

how eager they are to buy it. They also prefer products that are fashionable,

affordable, and well-priced.

Customer Behavior

Good quality products or styles that can attract Crochetyarn

customers to avail its product and give them value premises and most
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importantly satisfaction through which Crochetyarn can make intimate

relationships with its customers, which Crochetyarn calls customer relationships.

Target Market Opportunity

Crochetyarn will begin where it sees an opportunity, as this will be the best way

for the company to succeed. Second, Crochetyarn must determine the amount of

capital required. Lastly, Crochetyarn will pursue its chosen opportunity and

successfully run the business.

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MARKET DEFINITION POTENTIAL AND BEYOND

A Handy Crafty Company is a business that sells a variety of crocheted products

and accessories. In Ormoc City, the headquarters were successfully established

around 2022 at Ormoc City Plaza. The term "Handy Crafty" was derived from the

word "handicraft," which means a handcrafted item. The brands are now

available in three cities: Ormoc, Tacloban, and Cebu City. The company's main

marketing goals include improving customer communication through good

promotions and expanded advertising.

The market size is estimated based on the number of locations where our

organization/business could potentially sell our products. We already sell our

products in three places, giving us a large potential audience of people who

enjoy crocheted items. This is our key to market expansion and, eventually,

market potential. Our company caters to people of all ages, particularly those

who appreciate handcrafted items

SWOT ANALYSIS
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We were able to engage some of the best business consultants in Ormoc-Manila

to look over our business concept, and together we were able to analyze the

prospect of the business and ourselves to ensure we have what it takes to run a

standard souvenir shop that sells handmade crocheted keychains that could

compete positively with other leading brands in the handicraft industry. As a

result, we were able to assess the strengths, weaknesses, opportunities, and

threats that we will most likely face if we decide to open a souvenir shop in

Ormoc-Manila. Here is an example of what we studied from our company's

critical SWOT analysis.

Strength

We have the finances, facilities, and a competent workforce to compete in the

industry in a highly competitive location in some places of Manila. Another factor

that works in our favor is our Chief Executive Officer's background; she has

extensive industry experience as well as solid academic credentials to back up

her experience, which has placed her among the top-flight professionals in some

other countries. We are not ignoring the fact that we have formed a partnership

with a handicraft artist who will ensure that we have a steady supply of handicraft

souvenirs.

Weaknesses
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The fact that we are opening a souvenir shop in a city with other souvenir and

card retail outlets may make it difficult for us to break into the already crowded

market in Ormoc-Manila. In essence, our chosen location could be a source of

weakness. North

less, we intend to make a big splash when we launch. We are confident that we

will be able to make a favorable impression, and that we will be able to capitalize

on previously established momentum.

Opportunities

The opportunities that are available to us are limitless. More tourists are

expected to visit Leyte, particularly Cebu City, increasing industry demand.

Travel by more people has increased, increasing demand for industrial products.

Many people want to buy a franchise and open their souvenir shop; our platform

will be ideal for them to achieve that goal.

Threats

The threat that we will face is that we will be competing with already established

souvenir businesses in Ormoc City, as well as other entrepreneurs who will likely

launch similar businesses in our location. As supercenter and discount store

chains expand, competition from discount retailers will increase. Naturally, they

will compete with us for the available market. Unfavorable government policies

and, of course, the economic downturn are other potential threats. Typically, an

economic downturn has an impact on purchasing and spending power

MARKING OBJECTIVES AND GOALS

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We have identified a few initial key marketing goals in our first year to build

our brand reputation and position ourselves in the minds of our target market to

gain market share in any market.

Our goal is “ To be an innovative business and the best provider of high crochet

products that will increase customer engagement in purchasing crochet yarn in

Ormoc City by the year 2024”

The following are our objectives to achieve our goals

 Developing product offers and merchandising format that will increase

sales

 Develop future sales opportunities in many markets that allow continued

growth of the business

 Develop services that enhance customer experience

 Train and develop sales associates to effectively service the customer

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MARKETING STRATEGY

Product and Services

Crochetyarn is a handicraft type of business where yarn is the

primary material used to make a pattern by looping it with a crochet hook. The

business will sell crocheted keychains and accessories made with different

yarns; acrylic, wool, and cotton. They can select the yarn’s type, thickness, and

color as well as choose between the yarns they want.

•Acrylic yarn is a replica of natural yarn, it's long-lasting and has a variety of

colors. Aside from that, it is also non-allergic and washable.

•Wool is a natural yarn, absorbent and tough

•Cotton yarn is soft and supple but strong, durable, and has excellent water

absorption properties.

If their chosen product is personalized, they need to give us time to make the

product. The duration of the process depends on the type and size of the

product. Alternatively, the company discussed making crocheted products

beforehand to display in the stall and we can also deliver the product once it's

done making them. Moreover, the customers are guaranteed that our business

has fair return policies and is knowledgeable enough to make the product. We

will ensure that our products have excellent quality and give customer

satisfaction.
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Target Market

When it comes to the sales and delivery business, there is indeed a wide range

of available customers. In essence, our target market is restricted to just a group

of people, but all those who reside in the location where we intend to open our

shop including students, people who love handicraft items, adults, and elders.

Brand Positioning

The location of our market is compatible with the product we offer and our target

market. They will mainly purchase our product as it gives benefits to each

individual in every aspect. Our product also gives a significant impact as it makes

our community more productive by promoting the local product in the market.

Pricing Strategy

The business partner develops a crochet pricing method to determine the price of

each item to e sold to a customer. If the buyer will directly purchase our product

we will use cost-based pricing to control its pricing. But if they will purchase

online thru Shopee or on our Facebook page we have conducted a formula.

• Cost of supplies /Raw materials+Labor Cost+Other Expenses X 50% Mark up

=Retail price
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• Cost of supplies/Raw materials+Labor Cost +Other Expenses x 30 %Mark up

=Wholesale price

-Cost of supplies includes the yarn and crocheted tools

- Labor cost

-Distance of location, delivery charges /shipping fee

Distribution Strategy

Our customers will buy our product at our location. However, we anticipate a

significant amount of mail-order sales in order or exceed our sakes forecast We

will receive orders by mail and online process them immediately, and ship the

goods via a courier service. In the future electronic commerce with a secure

website will be thoroughly investigated our feasibility, but for now, all orders will

be handled by phone and with various payment options (bank transfer, G cash,

and COD)

Advertising and Promotional Strategy

The proponents’ way of advertising their product is through utilizing flyers and

social media via Facebook. The proponents will be handing out flyers to passers

and will be posting their advertisements on each proponent’s timelines to

introduce their product faster and maybe go beyond their current market.
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The logo of their business, the logo of the product (CROCHETYARN), the tagline

of the company, the product’s price, the proponents’ Facebook accounts, and

their contact numbers are all included and printed on their flyers.

In the product’s advertisement, the product was prominently featured in a city

which exhibits how the product is accepted by its target market.

For our promotional strategy, the business will establish a Facebook page

for advertising products, posting relevant information about the products,

designs, ready-made items with corresponding prices, and customer feedback.

Messenger will be used to cater to customers’ questions, complaints, and

suggestions.
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IMPLEMENTATION AND CONTROL

Marketing Implementation

As Crochetyarn’s current and future products required extensive customization to

maintain client needs it’s necessary to organize the marketing function by

customer groups. This will allow Crochetyarn to focus marketing effort

exclusiveness on the needs and specifications of each target customer. Each

group will have full decision-making authority and frontline salespeople will be

empowered to make decisions that will better satisfy our clients

Implementation activities are to begin at the start of the next year’s first month of

January. All activities are the responsibility of the manager Ms. Alyssa Watimar.

 On January 1, the company will task a position of manager. This chosen

manager will serve as the project leader of a new business analysis team.

 On January 30, the company will assign some members of the analysis

team and group them as two. Each group has its projects and these are
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(1) researching potential designs for products and new clients and (2)

designing a customer survey project

 By February 20, the two groups will report the results of their analysis and

the whole business team will review all the recommendations

 By March 1, develop a new marketing information system to monitor

client’s patterns and customers satisfaction

 By March 20, analyze and report all the results of all customer satisfaction

surveys and evaluate new products.

Evaluation and Control

The following performances standards and financial control are suggested

 The total budget for the new product research and customer survey will be

equal to 40percent of the annual promotional budget for the coming year

 Each project team is responsible for reporting all financial expenditures

including personal salaries for their segment of the assigned project

 The manager is responsible for adherence to the project budget and will

report every week

 A new product offering will be evaluated every quarter to determine its

profitability. Product development expenses will be distributed over a year

peri and will compare with gross income generated.

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CONCLUSION

Therefore, after describing all of the plans, we would like to state that "Handy

Crafty" is a brand with authentic and one-of-a-kind products. We will provide the

best quality to maintain the best customer relationship in the long run. We will

make every effort to keep every promise we make to our customers. Some other

important aspect is that our company contributes to society. We will empower

women through our business and thus assume corporate social responsibility. In

the future, we hope to expand our market and operations to every district in the

Philippines, as well as export our products to other countries.

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