INTRODUCTION This chapter will determine different marketing strategies used to create the customer, to keep the customer and to satisfy the customer. Marketing is an integrated process through which companies build strong customer relationship and create value for their customers and for themselves it also generates the strategy that underlies sales techniques, business communication, and business developments. Marketing research involves conducting research to support marketing activities, and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge the nature of ‘SAKTO DONUTS’’ marketing environment, attain information from suppliers, etc. the marketing research process spans a number of stages, including the definition of a problem, development of a research plan, collection and interpretation of data and disseminating information formally in the form of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information. Market research pertains to research in a given market. The establishment may conduct research in a target market, after selecting a suitable market segment. Marketing research relates to all research conducted within marketing. Enable to complete our marketing research we conducted a survey to know the like and dislike of people about DOUGHNUTS, and then we made a tally to get the accurate information. 1 MARKETING ASPECT OBJECTIVES: Our objective is to be able to know the target market in our Business location. Also a part of the objective is to know what product is more acceptable for our customers. And to make sure that our products will be affordable for our customers and to meet their needs and to satisfy with quality service and product. In this chapter, it explains the following: 1. The product description, the types of menus and types of services that are offered. 2. The target market of SAKTO DONUTS will also be sited. 3. List of the demand and supply gap based on the competitor’s sales and expenses for the last five years. 4. Explain the market research and the market reaction as well as market share, distribution network and marketing strategies. 5. Computed the advertising expenses and determine the type of advertisement to be used. 2 PRODUCT DESCRIPTION SAKTO DONUT establishment presents different varieties of doughnuts; original recipes (condensed milk, cheese, honey, vanilla) common flavors (Bavarian, strawberry, chocolate, and sugar glazed). All doughnuts we have has a miniature product namely BULILIT SAKTO. Aside from doughnuts we also offer beverages. We have cold beverages (soda drink, juice, water); hot beverages (hot chocolate, coffee). 3 DEMAND AND SUPPLY Demand Historical population of Baranggays The historical population of the baranggays came from the population of the Tungkong Mangga for the last 5 years, Grace Ville for the last 5 years, Gaya-Gaya for the last 5 years and Gumaoc Central for the last 5 years. Table 2.1 Brgy. 2006 2007 2008 2009 2010 Tungkong mangga 7,815 8,209 8,603 9,015 9,447 Grace Ville 31,102 32,670 34,230 35,881 37,603 Gaya-Gaya 9,426 9,901 10,376 10,874 11,395 Gumaoc Central 3,238 3,401 3,564 3,735 3,914 TOTAL 51,581 54,181 56,781 59,505 62,359 NOTE: These figures are the population of our baranggays over the last years. Average Increase =𝐹𝑦 -𝐹1 /5-1 = (2010-2006)/5 = (62,359 - 51,581)/4 = 2,695 NOTE: these values signifies that our baranggays, Tungkong Mangga, Grace Ville, Gaya-Gaya, and Gumaoc Central increasing population over the last years that they are operating. 4 Demand Table 2.2 Project Year Average Increase Past Demand Projected Demand 2011 2,695 62,359 65,054 2012 2,695 65,054 67,749 2013 2,695 67,749 70,444 2014 2,695 70,444 73,139 2015 2,695 73,139 75,843 NOTE: These figures are the population of the baranggays over the last years. Supply Historical Population of Competitors The historical population came from the number customers of our competitors for the past years that they operating. Table 2.3 Competitors 2006 2007 2008 2009 2010 Mister Donut 12,627 13,589 14,235 15,008 16,728 Dunkin Donut 10,234 11,934 12,358 13,528 15,117 Julie’s 9,704 10,793 10,220 10,710 12,224 Happy Haus 13,945 11,435 12,023 12,775 14,340 Total 46,510 47,751 48,844 52,021 58,409 Bakeshop NOTE: These figures of the number of customers over the last years. 5 Average Increase =𝐹𝑦 -𝐹1 /5-1 = (2010-2006)/4 = (58,409 -46,510)/4 = 2,975 NOTE: these values signifies that our competitors, Dunkin donuts, Mister donuts, Happy-haus donuts and Julie’s Bakeshop have an increasing customers over the last years that they are operating. Supply Table 2.4 Year Ave Past Supply Projected Supply 2011 2,975 58,409 61,384 2012 2,975 61,384 64,359 2013 2,975 64,359 67,316 2014 2,975 67,316 70,291 2015 2,975 70,291 73,266 NOTE: These figures of the number of customers over the last years. 6 Demand and Supply Gap Projected Projected Projected Demand and Unsatisfied Year Demand Supply Supply Gap Demand 2011 65,054 61,384 3,670 6% 2012 67,749 64,359 3,390 5% 2013 70,444 67,316 3,128 4% 2014 73,139 70,291 2,848 4% 2015 75,843 73,266 2,577 3% NOTE: The decreasing of unsatisfied gap shows that Dunkin Donuts, Mister Donuts, happy-haus donuts and Julie’s Bakeshop have an decreasing unsatisfied customers for 2011-2012, consistent for the year 2013-2014 and still decreasing on 2015. DEMAND AND SUPPLY DEMAND Historical sales The historical sales of the Competitors came from the sales of the Dunkin donuts for the last 2 years, happy-haus donuts for the last 2 years, Mister Donuts for the last 3 years and Julie’s Bakeshop for the last 3 years. Table 2.1 Competitors 2006 2007 2008 2009 2010 Dunkin Donuts - - - 900,000 1,095,000 Mister Donuts - - 1,550,000 2,090,000 2,920,000 Happy-haus Donuts - - - 1,820,000 2,912,000 Julies Bakeshop - - 2,060,000 3,000,000 3,650,000 Total - - 3,610,000 7,810,000 10,577,000 7 NOTE: These figures are the sales of our competitors over the last years that they are open for operation. Average Increase: =𝐹𝑦 -𝐹1 /5-1 = (2010-2006)/5 = (10,577,000-3,610,000)/4 =1,741,750 SUPPLY Table 2.2 Project Year Average Increase Past Demand Projected Demand 2011 1,741,750 10,577,000 12,318,750 2012 1,741,750 12,318,750 14,060,500 2013 1,741,750 14,060,500 15,802,250 2014 1,741,750 15,802,250 17,544,000 2015 1,741,750 17,544,000 19,285,750 NOTE: These figures are the expenses of our competitors over the last years that they are open for operation. 8 Historical Expenses of Competitors The historical expenses came from the expenses came from the expenses of our competitors for the past years that they operating. Table 2.3 Competitors 2006 2007 2008 2009 2010 Dunkin donuts - - - 950,000 960,000 Mister Donuts - - 1,340,000 1,360,000 1,440,000 Happy-haus - - - 700,000 728,000 - - 53,000 55,000 60,000 - - 1,393,000 3,065,000 3,188,000 donuts Julie’s Bakeshop Total Average Increase =𝐹𝑦 -𝐹1 /5-1 = (2010-2006)/4 = (3,188,000-1,393,000)/4 = 448,750 NOTE: these values signifies that our competitors, Dunkin donuts, Mister donuts, Happy-haus donuts and Julie’s Bakeshop have an increasing income over the last years that they are operating. 9 Demand and Supply Gap Table 2.4 Projected Year Average Increase Past Supply Projected Supply 2011 448,750 3,188,000 3,636,750 2012 448,750 3,636,750 4,085,500 2013 448,750 4,085,500 4,534,250 2014 448,750 4,534,250 4,983,000 2015 448,750 4,983,000 5,431,750 NOTE: The increasing unsatisfied gap shows that Dunkin Donuts, Mister Donuts happy-haus donuts and Julie’s Bakeshop have an increasing income for 20112012 and consistent for the year 2013-2015. Projected Projected Projected Demand and Unsatisfied Year Demand Supply Supply gap Gap 2011 12,318,750 3,636,750 8,682,000 70.47% 2012 14,060,500 4,085,500 9,975,000 70.94% 2013 15,802,250 4,534,250 11,268,000 71.30% 2014 17,544,000 4,983,000 12,561,000 71.59% 2015 19,285,750 5,431,750 13,854,000 71.83% 10 SAKTO DONUTS SURVEY QUESTIONNAIRE Full Name: Age: Gender: ( ) Male Female ( ) Occupation: 1. How often do you eat doughnuts? a. Sometimes 2. b. Always b. Always What kind of packaging would you like your doughnut to be placed? b. Paper Bag b. Hot Choco b. W/out filling c. Plain d. Sugar Glazed b. Taste c. Aroma b. Snack Time c. Dinner How much do you usually spend to eat doughnuts? a. P 10-25 10. d. Juice (Tetra Pack) What particular time of the day do you usually eat doughnut? a. Morning 9. c. Soda What do you crave for in a doughnut? a. Appearance 8. d. Others What doughnut would you prefer to eat? a. With filling 7. c. Styro What drinks do you want to accompany your doughnut? a. Coffee 6. d. Never b. Cheese Donut c. Vanilla Donuts d. Honey Donut a. In a carton 5. c. All the Time What flavor of doughnut do you prefer? a. Condensed Donut 4. d. Never How often do you visit a doughnut store? a. Sometimes 3. c. All the Time b. P 26-40 c. P 41-50 d. Others What kind of add – ons would you like your doughnut to have? a. Marshmallow b. Sprinkles c. Milk Powder ………………………………………………………. SIGNATURE OVER PRINTED NAME 11 MARKET RESEARCH QUESTIONS Occupation Age CHOICES TALLY PERCENT Student 38 38% Worker/Businessman 42 42% Un Identified 20 20% 10-15 14 14% 16-20 30 30% 21-25 20 20% 26-30 13 13% 31-35 5 5% 36-40 6 6% 41-45 4 4% 46-50 3 3% 51-55 3 3% 56-60 2 2% a. Sometimes 71 71% b. Always 17 17% c. All the Time 6 6% d. Never 6 6% a. Sometimes 67 67% b. Always 17 17% c. All the Time 7 7% d. Never 9 9% a. Condensed Donut 20 20 % b. Cheese Donut 28 28% c. Vanilla Donuts 34 34% Survey Questions 1. How often do you eat doughnuts? 2. How often do you visit a doughnut store? 3. What flavor of doughnut do you prefer? 12 d. Honey Donut 18 18% 4. What kind of packaging a. In a carton 47 47% would you like your b. Paper Bag 37 37% doughnut to be placed? c. Styro 6 6% d. Others 10 10% 5. What drinks do you want a. Coffee 33 33% to accompany your b. Hot Choco 42 42% doughnut? c. Soda 23 23% d. Juice (Tetra Pack) 2 2% a. With filling 49 49% b. W/out filling 15 15% 6. What doughnut would c. Plain 15 15% you prefer to eat? d. Sugar Glazed 21 21% a. Appearance 12 12% 7. What do you crave for in b. Taste 70 70% a doughnut? c. Aroma 18 18% 8. What particular time of a. Morning 12 12% the day do you usually eat b. Snack Time 79 79% doughnut? c. Dinner 9 9% a. P 10-25 43 43% b. P 26-40 25 25% 9. How much do you usually c. P 41-50 22 22% spend to eat doughnuts? d. Others 10 10% a. Marshmallow 21 21% would you like your b. Sprinkles 47 47% doughnut to have? c. Milk Powder 32 32% 10. What kind of add – ons 13 INTERPRETATION The first question is about how often the respondents eat doughnuts. Seventy-one out of 100 people said, they eat doughnuts sometimes and among the four choices, it got the highest vote. Some answered always which got 17% of the votes and the remaining 6 % answered all the time and never. Second question shows that 67 people voted sometimes they visited a doughnut store and it gained the highest vote. Always was voted by 17 people, all the time was voted by 9 people. The remaining 7 people voted never visit a doughnut store. For the third question, we asked the people what flavor of doughnut they prefer. Among the choices, vanilla got the highest vote which grabbed the 34 % followed by the cheese doughnut which is 28 %. And for the remaining 20% grabbed by the condensed doughnut, and honey doughnut obviously got the lowest percentage. Fourth question shows that most of the respondents want their doughnuts to be placed in a carton which got 47 % votes. 37 % voted for the paper bag followed by the 10 % for the styro and for the remaining 10 %, respondents answered they want their doughnuts would be placed in their choice of container. For the fifth question, we asked the people what drinks do they want to accompany their doughnut, as a result, hot choco is the most preferred beverage having 42 votes which got the highest vote among the others. Coffee got 33 votes, 23 votes for the soda and the remaining 2 votes went for the juice. The sixth question is about what the respondents would prefer a doughnut with filling, a doughnut without filling, a plain doughnut or a sugar glazed doughnut. Out of 100 %, 49 % of the respondents answered a doughnut with filling. For the 15 % of the respondents answered they prefer a doughnut without filling and a plain doughnut and the remaining 21% answered for a sugar glazed doughnut. 14 The seventh question is about how the respondents crave for a doughnut. Out of 100% of the respondents, the taste collected the 70 % followed by the aroma which collected the 18% and the remaining 12% went to the appearance. The eighth question is about what particular time of the day the respondents do usually eat doughnuts. Snack time earned 79 % of the respondents out of 100 %. Morning earned 12 % which took the second place and the least, dinner which earned 9 %. The ninth question is about how much usually the respondents spend to eat doughnuts. Out of 100%, 43 % of the respondents answered they spend P10 to P25. Then the 25 % of the respondents answered they spend P26 to P40. Then for the 22 % of the respondents answered they spend P41 to P50 and for the remaining 10 % the respondents answered they spend P50 above just to eat doughnuts. The tenth question is about what kind of add-ons would the respondents like to have in their doughnuts. Among the choices, the sprinkles gained 47 % out of 100 % of the respondents followed by the milk powder which gained 32 % and the remaining 21 % gained by the marshmallow. 15 DISTRIBUTION NETWORK SUPPLIER SAKTO DONUTS COMPANY CUSTOMERS /CLIENTS Sakto donuts only gets its supply from Mayfair bakery and pastry shop to make our customers and clients sure that what they are consuming are of best quality. We make sure that our products are safe, clean, high quality and delicious. We also make sure that our ingredients has undergo in a food safety procedures and perfectly healthy. We are open for any suggestion and comments you have for us to be able to get their feedback to improve our service and become more efficient in serving you, our valued customers and clients. 16 MARKET STRATEGIES / PROMOTIONS PRINTING AND POSTING ADVERTISEMENT Sakto Donuts Company will be having a deal or contract with a printing press. This printing press will be our partner for providing leaflets, brochures and tarpaulins needed for the advertisement of our business and make the people aware about what our business offers. We will make convincing advertisement that will make people attempt and discover the quality foods, beverages and services that we offer. This type of advertisement will have impact for a new business like ours. WORD OF MOUTH Quality foods, beverages and services will be offered to customers and with this they can tell their colleagues, family members and co-workers as well about their experience. This will gain curiosity for the people to try our establishment. The business assures that customers will have a satisfying, enjoyable and fulfilling experience in eating our products. This strategy is cheap and considered a reliable way of advertising. 17 PROMOTIONS Our establishment will be having promotions to attract our customers. This would also help us to retain our regular customers. The promotions that we are going to implement will satisfy and give convenience to them. Promotions must be studied and analyze first before implementing for the assurance that we will attract customers and will not make our business to fall over. Our establishment will provide free trial of our product. The advantage of this is that it allows customers to try product without risk. On the other hand, the disadvantage of this is that it can be expensive. 18 ADVERTISING EXPENSE 1st Year Expense Banner/Tarpaulin P1,000.00 Leaflets: Opening P700.00 (3,000pcs.) : 3 Lean Months P500.00 (2,000pcs.) Opening: Balloons P1,400 TOTAL: P3, 600.00 2nd Year Expense Leaflets: 3 Lean Months P500.00(2,000pcs) Anniversary: Balloons P1,400.00 3rd Year Expense Leaflets: 3 Lean Months P590.00 (2,000pcs) Anniversary: Balloons P1,400.00 4th Year Expense Leaflets: 3 Lean Months P610.00 (2,000pcs) Anniversary: Balloons P1,300.00 5th Year Expense Leaflets: 3 Lean Months P630.00 (2,000pcs) Anniversary: Balloons P1,350.00 19