Tactical Marketing Part 1 – Product, Price
-----------------------------------------------------------------------------------------------------------------------------------------Instructor: Joeanah Branzuela
Group Assignment
Group # 1
Block A2
Leader Salve, Charemy
Busa, Deanna Noelle
Deratas, Apryl Sheka
Members
Ranario, Dorothy Kay
Tajanlangit, Matthew Bryan
Company Name Ecosane
Name of Member
Contribution to this
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Date and Time
Member uploaded
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General Comments (use red font for
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1. Charemy T. Salve
Product Dimensions
Product Appearance
Date: 10/05/2021
Time: 8:35 a.m.
Good, On Time, Complete
2. Deanna Noelle Busa
Product Mix Table
Price List
Date: 10/05/2021
Time: 11:30 p.m.
Good, On Time, Complete
3. Apryl Sheka Deratas
Price Strategies Product
Width
Date: 10/05/2021
Time: 2:45 p.m.
Good, On Time, Complete
4. Dorothy Kay Ranario
Price List
Product Length
Date: 10/05/2021
Time: 9:00 p.m.
Good, On Time, Complete
5. Matthew Bryan
Tajanlangit
Price Strategies Product
Line
Date: 10/05/2021
Time: 2:45 p.m.
Good, On Time, Complete
RUBRIC
Product Strategies Product Mix
Figure 1. Ecosane’s Product Mix Table
Product Width
For Ecosane's product width, we have four different product lines that we offer to the
market, respectively; (1) takeout and meal boxes, which are great for take-out food such as rice
meals, dry noodles, as well as pastries such as cookies and brownies. They're also ideal for
selling take-out food at kiosks, convenience stores, and restaurants. (2) Bowls and cups, which
are ideal for serving signature soups and stews, steamed vegetables, and burrito rice. It can even
be used for cold foods such as ice cream, yogurt, and sorbet. Its classic, round shape makes it
easy to hold and carry on the go. It's an excellent choice for delis, markets, and salad bars. Aside
from that, it's ideal for serving condiments, dips, and sauces, as well as small sides. (3) Utensils
and cutlery that are a cost-effective alternative to traditional disposable cutlery in take-out
restaurants, hotels, cafes, coffee shops, wineries, office break rooms, or catered events.
Consumers in restaurants or any eatery can simply throw these utensils away, removing the need
for restaurant staff to devote their valuable time to extensive cleanup. (4) Lastly, straws, which
are a great alternative to plastic straws that are made from bagasse.
Product Length
Ecosane offers takeout and meal boxes, bowls and cups, cutleries, and straws. For the
takeout and meal boxes product line, it’s divided into three types, the paper boxes, bagasse boxes
and the clamshell boxes. For the bowls and cups product line, it’s divided into two product types,
the Bagasse bowls and the Bagasse sauce cups. For the cutlery product line, it only has one
product type and that is the wooden cutleries the same with the Straw product line which only has
the product type of Sugarcane straws.
Product Depth
As for the product depth of Ecosane, it only differs on the sizes of the containers and
various cutleries offered by the business. For the first product line, which is the takeout and meal
boxes, we have three subcategories namely: paper boxes, bagasse boxes, and clamshell boxes.
The paper boxes include 500mL, 700mL, and 1000mL boxes. As for the bagasse boxes, Ecosane
offers 1000mL 2-compartment oval box, 1000mL 2-compartment rectangular box, and 1400mL
rectangular box. Moreover, Ecosane also provides 450mL and 850mL clamshell boxes. For the
next product line, which is bowls and cups, the business offers 450mL and 750mL bowls while it
only renders a 2oz cup. Now for the third product line, which is the cutlery, it includes a 160mm
(6”) wooden knife, wooden spoon, and wooden fork. And lastly, for the last product line, straws,
only offers the regular-sized sugarcane straws.
Product Dimensions
Good Strategy
Description
To improve the quality of our products, we will be using the following quality
strategies:
1. Improving Product Durability and Reliability
a. Ecosane will improve will implement tight quality control measures through
post-production inspection. Several tests shall be conducted before the
products will be shipped to the customers.
2. Total Product Quality Management:
a. Ecosane will implement a set of management practices to ensure that
the whole organization consistently meets customer requirements. This
will place a strong focus on process measurement and controls as
means of continuous improvement.
b. Ecosane will follow the PDCA (Planning, Doing, Checking, and Act) Cycle.
Quality
3. ISO 9001 and 14000 Standards
a. Ecosane will work to meet these international standards for quality
management systems and quality assurance.
4. International Awards and Certifications
a. Ecosane aims to be recognized as a reliable brand by receiving the TÜV
Rheinland Philippines Certification, Forest Stewardship Council Certification,
and Food and Drug Administration Approval.
5. Benchmarking
a. Ecosane plans to examine the process of the companies that it aspires to
be like in the industry such as Ecolutions, Econest, and Orera Technology.
Warranties
Packaging
Ecosane will offer a full warranty to its customers, meaning that it will permit the
replacement of the product during the specified warranty period (2 to 6 weeks).
The packaging will focus on the objectives of protecting the product.
1. Protective Packaging
a. Ecosane will apply this type of packaging in its products because using the
appropriate protective packaging greatly increases the probability of a quality
unboxing experience for the customer. The package is also more likely to
survive the rigors of transportation, warehousing, and the delivery service of
choice.
Table 1. Product Strategies for Ecosane
To further explain the details above, specifically in the quality control measures to be
taken to ensure the durability and reliability of Ecosane products, the tests included upon the
post-production inspection are:
a.
b.
c.
d.
e.
f.
Color Fastness Test
Water and Oil Resistance Test
Environmental Stress Crack Resistance
Drop Test
Leakage Test
Compatibility Test
Furthermore, for the Total Quality Management part, the PDCA Cycle will be explained in
the following lines. Ecosane will follow the PDCA (Planning, Doing, Checking, Act) Cycle. This
cycle consists of different steps that will be undertaken by the company.
a. Planning Phase
In this phase, Ecosane’s employees have to identify different problems and queries which
need to be addressed. Various challenges they face in their day-to-day operations will be
brought up to the table and also an analysis of the problem’s root cause will be conducted.
b. Doing Phase
In the doing phase, employees must initiate a solution for the problems defined in the
planning phase. Strategic plans are devised to subdue the challenges faced in daily
operations. Pre-testing and evaluation of the effectiveness of the solutions are done in this
phase.
c. Checking Phase
In the checking phase, employees will conduct a comparative analysis of before and after
data to authenticate the effectiveness of the processes and measure the results.
d. Acting Phase
In the acting phase, employees will chronicle their results and prepare themselves to
address other problems.
Moreover, as mentioned above Ecosane targets to meet the ISO 9001 and 14000
Standards. The ISO 9000 is a set of international standards, established by the International
Organization for Standardization, as the basis for quality management systems and quality
assurance. This is beneficial to Ecosane because it can help satisfy its customers, meet regulatory
requirements, and achieve continual improvement. On the other hand, the ISO 14001 sets out the
criteria for an environmental management system and can be certified. It maps out a framework
that a company or organization can follow to set up an effective environmental management
system. Obtaining the ISO 14000 certification can be considered a sign of a commitment to the
environment, which can be used as a marketing tool for Ecosane. It may also help Ecosane meet
certain environmental regulations. Moreover, it can also be beneficial in being able to sell products
to companies that use ISO 14000–certified suppliers. Aside from that, meeting the ISO 14000
standards can help reduce costs, as it encourages the efficient use of resources and limiting
waste. This may lead to finding ways to recycle products or new uses for previously disposed of
byproducts.
It was also mentioned that Ecosane aims to receive international certifications from the
TÜV Rheinland Philippines, Forest Stewardship Council, and Food and Drug Administration.
Ecosane aims to receive the TÜV Rheinland Philippines Certification as it is a mark of distinction
that serves as excellent marketing tools, enhancing the value of our brand and inspiring greater
confidence among our business partners and end-users. Furthermore, Ecosane aims to receive
the Forest Stewardship Council Certification as it leads to better-performing processes,
increasingly skillful talent, consistent and compliant supply chains, and more sustainable customer
relationships delivering profitable competitive advantage. FSC certification ensures that products
come from responsibly managed forests that provide environmental, social, and economic
benefits. Lastly, Ecosane aims to receive FDA certification because receiving the approval of the
FDA means Ecosane’s products have been through rigorous product quality testing and various
enhancement processes before being submitted to the FDA for review.
Ultimately, Ecosane plans to examine the process of the companies that it aspires to be
like in the industry such as Ecolutions, Econest, and Orera Technology. This will allow the team
to compare results, establish best practices and identify areas in which the business can improve
its own processes. Likewise, Ecosane can compare internal departments to determine best
practices for the company as a whole.
Product Appearance
Product Appearance
Top View
Description
Product Name: Takeout Meal Deep Box
Variations
Item Number
Front View
DP-500
Size
500ml
Top
15 × 10 × 3.9 cm
Down
13.5 × 8.5 × 3.9 cm
Color
Natural
Item Number
DP-700
Size
700ml
Top
16.8 × 11.8 × 4.5 cm
Down
15 × 10 × 4.5 cm
Color
Natural
Item Number
DP-1000
Size
1000ml
Top
17 × 13.6 × 5 cm
Down
15 × 12 × 5 cm
Color
Natural
Side View
Packaging
Ecosane’s packaging for its takeout and meal boxes,
clamshell box, bowls, and cups is a sturdy box that is
capable of holding the capacity of the items for a long
time. This ensures the quality of the product even after
it has gone through the delivery and distribution
process.
Table 2. Product Appearance of the Takeout Meal Deep Box
Product Appearance
Top View
Description
Product Name: 2-Compartment Rectangular box
Item Number
2CB-1000
Size
1000ml
Top
22 x 15 x 5.5 cm
Down
8.66 x 5.9 x 2.16 in
Color
Natural
Front View
Side View
Packaging
Ecosane’s packaging for its takeout and meal boxes,
clamshell box, bowls, and cups is a sturdy box that is
capable of holding the capacity of the items for a long
time. This ensures the quality of the product even after
it has gone through the delivery and distribution
process.
Table 3. Product Appearance of the 2-Compartment Rectangular Box
Product Appearance
Description
Product Name: Oval Box
Top View
Variations
Item Number
Front View
OB-750
Size
750ml
Top
22 x 12 x 5.5 cm
Down
8.66 x 4.72 x 2.28 in
Color
Natural
Item Number
2OB-750
Size
750ml
Top
22 x 12 x 5.5 cm
Down
8.66 x 4.72 x 2.28 in
Color
Natural
Side View
Packaging
Ecosane’s packaging for its takeout and meal boxes,
clamshell box, bowls, and cups is a sturdy box that is
capable of holding the capacity of the items for a long
time. This ensures the quality of the product even
after it has gone through the delivery and distribution
process.
Table 4. Product Appearance of the Oval Box
Product Appearance
Top View
Description
Product Name: Bowl
Variations
Front View
Item Number
B-450
Size
450ml
Diameter
4.75”
Height
2.5”
Color
Natural
Item Number
2OB-750
Size
750ml
Diameter
6.30”
Height
2.55”
Color
Natural
Side View
Packaging
Ecosane’s packaging for its takeout and meal boxes,
clamshell box, bowls, and cups is a sturdy box that is
capable of holding the capacity of the items for a long
time. This ensures the quality of the product even
after it has gone through the delivery and distribution
process.
Table 5. Product Appearance of the Bowls
Product Appearance
Top View
Description
Product Name: Sauce Cup
Item Number
SC-450
Size
55ml
Diameter
2.75”
Height
1.2”
Color
Natural
Front View
Side View
Packaging
Ecosane’s packaging for its takeout and meal boxes,
clamshell box, bowls, and cups is a sturdy box that is
capable of holding the capacity of the items for a long
time. This ensures the quality of the product even
after it has gone through the delivery and distribution
process.
Table 5. Product Appearance of the Sauce Cups
Product Appearance
Top View
Description
Product Name: Clamshell Box
Variations
Item Number
C-450
Size
450ml
Top
15 x 15 x 8.4 cm
Bottom
Front View
86 x 6 x 3.3 in
Color
Natural
Item Number
CB-600
Size
600ml
Top
15 x 15 x 8.4 cm
Bottom
7 x 5 x 2.75 in
Color
Natural
Side View
Packaging
Ecosane’s packaging for its takeout and meal boxes,
clamshell box, bowls, and cups is a sturdy box that is
capable of holding the capacity of the items for a long
time. This ensures the quality of the product even
after it has gone through the delivery and distribution
process.
Table 6. Product Appearance of the Clamshell Box
Product Appearance
Front View
Front View
Front View
Front View
Packaging
Description
Product Name: Spoon
Item Number
SP-160
Size
160mm
Height
6”
Color
Natural
Product Name: Fork
Item Number
FO-160
Size
160mm
Height
6”
Color
Natural
Product Name: Knife
Item Number
KN-160
Size
160mm
Height
6”
Color
Natural
Product Name: Straw
Item Number
ST-160
Size
160mm
Height
6”
Color
Natural
Ecosane’s wooden cutlery packaging is a rectangular
box that holds all the 100 pcs. cutlery. This sturdy box
protects the products from potential damage as it
undergo through the delivery process. Each pair are
placed inside a paper-based small packaging.
Table 7. Product Appearance of the Spoon, Fork, Knife, and Straw
Pricing Strategies
Pricing Strategies and Policies
Pricing Strategies and
Description
Policies
Ecosane considers this pricing strategy because as a new entry
in the market, it is the business’ goal to accomplish the same
amount of brand recognition and customers as its competitors,
competitive pricing will help Ecosane to convert customers from
their competitor's products to theirs. Moreover, the demand for
Ecosane’s products is price elastic. In accordance to
microeconomics, if demand is elastic, raising the price will result
to a decrease in total revenue. Thus, maintaining a price that is
affordable for the customers is necessary.
1. Competitive Pricing
Strategy
Disadvantages:
• Risk of diminishing profit margin
• Low chance of recovery from the sunk cost
To avoid the disadvantages mentioned above, Ecosane shall:
• Lower manufacturing costs before lowering market
prices
• Research multiple competitor's pricing options for
similar products
• Know when to use a different pricing strategy
Ecosane considers this pricing policy because it aims to enter a
new competitive market which is the green industry. Ecosane
plans to enter the market at a lower price point to generate
demand and a consumer base and then increase prices once it
is established. This is beneficial for Ecosane because
penetration pricing can increase the volume of sales to offset
the risks of a low price. Price-sensitive customers are more
likely to switch, and potentially promote the product through
word-of-mouth marketing.
2. Penetration Pricing
Policy
Disadvantages:
• Less customer loyalty
• Narrow margins
• Aggressive Competition
To avoid the disadvantages mentioned above,
Ecosane shall:
• Establish strong relationships before increasing prices
• Promptly build loyalty in customer base
• Conduct a break-even analysis
Ecosane considers this pricing strategy because most
customers will likely be attracted to this because the products
will be offered at a discounted price as compared to buying the
products individually at full price. The company can also pair the
bestseller goods to the ones with low sales as it can be the best
strategic option to sell those low performer products fast.
3. Product Bundle
Pricing Strategy
Disadvantages:
• Cannibalization of the products
• Unwillingness to purchase additional bundles
To avoid the disadvantages mentioned above, Ecosane shall:
• Develop discount strategies
• Make use of Mixed bundling
• Advertise the benefits of the pack
Table 8. Pricing Strategies and Policies