Executive Summary Fina’s Barbeque is a small enterprise owned and managed by Mr. and Mrs. Seda. It started on November 28, 2006. Fin: s Barbeque has a selling area of 10 Square Meters. It is located along the main road of Juana-Rosario Complex which is inside the vi ty of Barangay San Francisco of the town Bifian, Laguna. Fina’s is a fast growing barbeque business in the geographical area of Juana and Rosario les Complex. Though it was in the market for not more than three years now, its yearly revenue and profit continues to grow making the business” name immediately known in the area where it is located. Since pork barbeque is the best-seller of all barbeque produ: this marketing plan will focus mainly on Fina’s pork barbeque This marketing plan will thoroughly study by observation and interview the historical supply and demand of the barbeque market in Juana and Rosario Complex. This paper will also study the different environments present around the market of barbeque businesses. The competitor and customer will be analyzed by a thorough observation of the present situation in the market and from there, strategic planning will be done to help Fina’s achieve its marketing mission and objectives. A plan on distribution, product positioning, pricing, promotion and marketing research plemented to accomplish the goals and objectives of will be carefully and wisely Fina’s Barbeque. The Fina’s Barbeque is a small business prepared to enter into a plane of successes through a wise and customer-oriemted marketing that will be thoroughly explained in this paper. Its positioning strategy for distribution will help Fina’s achieve its three-year goal for its targeted sales revenue. Aside from distribution, the product positioning strategy ofBarbeque will also allow Fina"s achieve its mission to achieve their desired market share. The pricing and promotion will also help Fina’s get its target market share, revenue and profitability. The marketing research program will also help Fina’s attain the knowledge it needs to come up with the right posi joning strategy and a contingency plan Lastly, Fina’s positioning strategy will always be sensitive to the market in Juana and Rosario Complex. The marketing plan will be based on the needs and uends in the market so that the customers will be fully served and satisfied. If the strategic planning ‘won't accomplish the objectives of the business, Fina’s will immediately implement its contingency plan to be able to achieve its mission and objectives. IL. Situational Analysis ‘The market present in the barbeque industry around the area of Juana and Rosario Complex is shown in the Situation Analysis of Fina’s Barbeque. The competitors, company and customer analysis will help the management come up with the best strategic planning needed for the business. 2.1 Competitor Analysis Generally, Fina’s Barbeque competes in the arena of cooked food sellers. ‘Competitors in the same generic product-market are Atoy’s Porkchop, Donna Barbeque, J.E.E. Lapid’s Chicharon, Kyles Binalot, Hloilo’s Lapaz Batchoy, MYK food house, Don Robert’s Restaurant, Mae's Lechon Manok, Nemi Menk’s Inasal Bacolod, Mumsie’s Dine-in, Ministop, Rastapipap Ber and Grill, 17 St. Bar and Grill, Sinangag Republic, Country Chicken and other resident ‘barbeque sellers. These restaurants and food sellers are found around the area of Juana-Rosario Complex, where Fina’s Barbeque is located.‘A specific product type in which Fina’s would compete is grilled foods. ‘Competitors under this product type would be Donna Mae's Lechon Manok, Nemia’s Barbeque, Don Robert's, Menk’s Inasal Bacolod, Rastapipap Bar and Grill, and other resident barbeque sellers. All these enterprises sell grilled foods. Affordable and exotic outdoor foods such as chicken, ish, pork meat and other ‘chicken and pork parts are sold by Fina’s Barbeque. Under this product category, competitors are Nemia’s Barbeque and three other resident barbeque sellers. Nevertheless, along the main road of Rosario and Juana Complex, Nemia’s Barbeque is the key competitor of Fina’s Barbeque. Nemia’s Barbeque offers the same product variant, with same prices. It started on the year 2001 that’s why Nemia’s Barbeque has been in the market for more than seven years. Nemia’s Barbeque has achieved wide brand awareness and positioning among consumers of Juana-Rosario Complex because of its long ‘years of stay and experience in the market. Table 1 Competitor's Market Share (2007 to 2009) Nemia’s Fina’s Ones Year Barbeque Barbeque ne TOTAL Sellers 2007 73,000 2375 34,750 155,125 2008 109,500 63,875 54,750 228,125 2009 182,500 100,375 34,750 337,625, Market | 365,000 191,625 164.250 720875 Unit Price | P15 P1s P12 Sales P 5,475,000 | P 2,874, P 1,971,000 P 11,955,375‘Competitors’ performance will also b scen by their total sales from the year 2007 to 2009. We can see Nemia’s market share as the largest in the market for the ‘years 2007 to 2009. Table below shows favorably high sales of Nemia’s Barbeque ‘compared with other competing barbeque business. Nemia’s Barbeque. Barbeque and other barbeque sellers have the following sales for 2007 to 2009, Information from the researcher's interview with the competitors shows that for the past three years Fina’s had 28 percent of the total market sales. On the other ‘hand, other barbeque sellers show that they had 19 percent of the total sales of the market while Nemia’s sales are 53 percent of the total barbeque market share in the area of Juana-Rosario Complex for the three consecutive years 2007 to 2009. 2,874,375, 28% 11,971,000, 19% [ENemias s8a lmFina's 80 lDothertea seers 15,475,000, 53% Figure | Competitor's Market Share (2007 to 2009) Though Nemia’s Barbeque has taken over a larger number of market share, Nemia’s have a big cost for allowances and returns because they usually over stock their barbeques, not considering the growing market of barbeque sellers in Juana-Rosario Complex. Up until now, Nemia’s Barbeque is still the market leader in the barbeque market of Juana-Rosario Complex,2.2 Company Analysis Fina’s Barbeque is owned and managed by the Seda couple; Ms. Josefina and Mr. Ronel Seda. Located along the main road of Juana and Rosario Complex with selling area of 10 square meters, Fina's Barbeque belongs to the industry of small barbeque businesses. Fina’s Barbeque started last November 28, 2006; therefore. it has been in the food market for almost 3 years now. An image of Fina’s Barbeque stall from a front view is shown in the figure below. Figure 2 Image of Fina’s Barbeque Stall Fina’s barbeque is known for its flavorful, juicy and affordable barbeque: from the taste of their barbeques, sanitation is always observed in the sell which is 10 square meters. Also, the employees maintain good rapport with their omer brand awareness 7 months ‘customers. Fina’s has achieved 100 percent cus after the business started because many customers showed favorable response andlikelihood to its barbeque taste and price allowing Fina’s to increase its supply to 100 percent at the mid of year 2007. Fina’s market share for the last three years is 28 percent of the total market sales as shown Figure 1 of the competitor's analysis. Also, Fina’s Barbeque offers variety of barbeque products under the other outdoor food and product market of affordable outdoor grilled products drink as shown in the table below. Table 2 Products of Fina’s Barbeque Products Price Chicken Gizzard P5.00 Pork Skin P5.00 Pork Intestine P 5.00 Pork Liver P5.00 Gulaman Drink P5.00 Pork Ear P6.00 Chicken Skin P 10.00 Pork Barbeque P 15.00 Hotdog P 18.00 Quarter Chicken Barbeque P 35.00 Grilled Pork Liempo 35.00 Grilled Tilapia P50.00 Grilled Pusit P 55.00 ‘The best-seller in Fina’s Barbeque produets is pork barbeque which is currently priced at P 15.00 per stick. Aside from barbeques, Mr. and Ms. Seda use purified drinking water for their gulaman and barbeque sauces.2.3 Customer Analysis Since Fina’s Barbeque is located between the subdivisions of Juana 1, Juana 3, and Rosario Complex, the current customers of Fina’s Barbeque are residents of Juana 1, Juana 3 and Rosario Complex. Fina’s Barbeque serves the consumers who love eating grilled foods. Consumers who love tasty barbeques prefers to buy from Fina’s Barbeque because of Ms. Seda’s good relationship with their customers. These consumers are residents, students and professionals who commute and travel every day. Since Fina's is located in the main road of Rosario-Juana Complex, it is accessible for those who travel via the Southwoods ‘exit and Pacita Complex Road. ‘Customers patronize Fina’s Barbeque for their exquisitely delicious pork ‘barbeque. Customers also re-purchase Fina’s barbeque because of their tasty ‘barbeque sauces. Fina’s Barbeque’s brand awareness improved a year after the ‘business started beeause Fina’s Barbeque consistently offer tasty barbeques and ‘barbeque sauce in an affordable price. IIL. Target Market Description Fina’s Barbeque targets consumer in the area of Juana and Rosario Complex. Target consumers may be student, professionals and other residents in the area The target ‘market will be described further in the target market segmentation. 3.1 Segmentation ‘The target market will be segmented geographically, demographically, psycho ‘graphically and behaviorally. This segmentation will help Fina’s Barbeque clearly identify its target segment and the opportunities it can grab from the unserved need of the market foun the market segmentation.3d 313 Geographic Segmentation Consumers residing in Juana 1 and Juana 3 Subdivisions of San Francisco, Biflan and Rosario Subdivision in San Pedro, Laguna are the main target market of Fina’s Barbeque. Fina’s BBQ is located in front of a bus and jeep stop along Juana and Rosario Main Road, that"s why commuters who r ide in this area are also potential consumers. Demographic Segmentation Male and female minimum wage earners, professionals, high school students and college students from upper to lower class B families are the immediate market of Fina’s Barbeque. Since the owner and employees of this small business are all Filipino natives, literacy is not a matter, Every verbally literate r BBQ. Ages jent are able to buy from Fina’s of this market are 13-40 years old. Psychographic Segmentation Barbeque from Fina’ BBQ is a fast food business able to cater commuters taking the route of South Luzon Expressway via Southwoods Exit. These commuters are residents of Juana 1, Juana 3 and Rosario who may be students or workers that are busy. This market segment has hectic schedules almost every day and with their lake home works and study loads, fast and readily accessible and available food will help them lighten responsibilities at home. Also, target market of Fina’s BBQ are people who have taste for grilled meat of fish, chicken and pork which is commonly below the age of 41 because people above this age are mostly conscious about the dangerbarbeques can cause to human health, Carcinogens promote the development of cancer (N. Madison, 2009) while cholesterol, heart attacks (Frank Mangano, 2005). Behavioral Segmentation Residents who: look for convenient food which can be bought in an accessible and available area are one of the behaviors of the target market Fina’s Barbeque targets. Since Fina’s BBQ is located in front of the bus and jeep stop, which is just outside the entrance of Juana 3, Juana 1 and Rosario, it is accessible and convenient. Therefore, decision to buy would be easy for the target market. 3.2 Market Needs Since pork barbeque is Fina’s best. ling product, it will be the subject for strategic planning. The market needs will identify the historical supply and demand of Fina’s Barbeque and the market. Fina’s projected supply and projected demand computed through a forecasting model will help the management come up with its target market share. The details of the market needs will be discussed in the historical supply and demand. 32 Historical Supply Fina’s supply for the last three years was based on their daily supply of pork barbeque sticks multiplied by the 365 days and the unit price of pork barbeques. Fina’s Barbeque started with 50 pork barbeque for the first six months of the year 2007 and 100 sticks for the second half of the year. The management gave the figures shown in the table below as Fina’s historical supply for the past three years. The10 historical supply shows the number of pork barbeque that can be sold by Fina’s Barbeque yearly and the total sales Fina’s Barbeque is able to reach every year from the year 2007 to 2009. Table 3 Historical Supply for Pork Barbeque Year | Annual Qty. | Unit Price | Total Sales 2007 27,375 PIS P 410,625 2008 63,875 PIS P 958,125 2009 100,375 PIS P 1,505,625 The projected supply for the year 2009, 2010 and 2011 was forecasted using the time series forecasting model. The projected supply of Fina"s Barbeque after the computation of its time series regression, is shown in the table below. The projected supply is then multiplied with the unit price of pork barbeques to come up with the total yearly sales. Table 4 Projected Supply Year Projected | Unit Price Total Sales Supply. 2010 136,875 PIs P 2,053,125 2011 173,375 PIs P 2,600,625 2012 209,875 pis P 3,148,135a 3.2.2 Historical Demand ‘The historical demand of the barbeque market is based on the overall sales capacity of the market or the total number of barbeques that can be sold in the market yearly. A thorough observation and personal interview with the competitors was done by the researchers for the management to identify the market's total demand, Historical market demand shows a 47.06 percent increase upon entry of the year 2008. This market demand movement indicates the fast growing market of barbeque sellers in Juana-Rosario Complex. Historical data is shown in the table below Table 5 Historical Demand for Pork Barbeque Year | Total Demand | Ave. Unit Price | Total Sales 2007 155,125 Pld P 2,171,750 2008 228,125 Pld P 3,193,750 2009) 337,125 Pid P 4,719,750 In computing for the projected demand for the years 2009, 2010 and 2011, the time series regression technique was used. After computing for the regression time series of the historical demand for the year 2010, there is a projected 422,125 pork barbeques that can be demanded by the market, for the year 2011 a 513,125 barbeques and for the year 2012, 604,125 pork barbeques.12 The table below shows the po: j¢ market demand for pork barbeques based on the computed time series regression analysis for the years 2010, 2011 and 2012. The market demand is the total demand from the areas Juana 1, Juana 3 and Rosario Complex or the number of pork barbeques the market is willing to buy every year. Projected demand shows total market sales of P 5,909,750 for 2010, P 7,183,750 for 2011 and P 8,457,750 for 2012. Table 6 Projected Demand Qy. of Pork Year BBQs Ave. Unit Price Total Sales 2010 422,125 Pi4 P5,909,750 2011 313,125 Pid P 7,183,750 2012 604,125, Pld P 8,457,750 3.3 Market Trends ‘The market trend in the industry of barbeque sellers are flavorful and juicy ‘barbeques with a right blend of barbeque sauces. These factors are the trends in the market. Aside from it, since barbeque seller's target market is the class B population, the market wants barbeques that are affordable. Barbeques are fast foods. Aside from being flavorful and juicy, the market also wants convenience and accessibility when buying a food. Therefore, convenience, accessibility, flavor and well-blended sweet and spicy sauces are the nevessary factors for the market considers in buying barbeques13 3.4 SWOT Analysis, ‘The analysis of Fina’s Barbeque business’ strengths, weaknesses, opportunities and threats will help the management come up with a right strategic marketing plan, Also, this analysis will allow Fina’s to clearly the current opportuni ‘can target and focus its strategy into. ‘On the other hand, the weakness that will be discussed will be further improved ‘on the main strategic positioning plan of Fina’s Barbeque. This part of the paper is based on its current strength and weaknesses seen in its environment. The ‘opportunities and threats are based on the analysis of the competitors or the market's performance 3.4.1. Strengths The market sees Fina's Barbeque as a business with competitive pricing, taste and servicing. Aside from price and tas the owner together with their employees, has built good rapport with their daily customers. From November 2006, Fina’s Barbeque was able to gain loyal customers that have their brand preferences directed towards Fina’s Barbeque products. Summary of its strengths is shown below. * Affordable Prices * Tasty Barbeque Products © Best Sweet and Spicy Barbeque Sauces * Friendly employees + Owner directly manages the store + Loyal customers © Accessible34.2 3.4.3 34.4 14 Weaknesses The weaknesses Fina’s Barbeque currently have are its mediocre market performance, limited market offer, lower brand pret nce in the area compared to other competitors and an unrecognizable delivery number. Summary of it weaknesses is shown below, + Target market limited only to class B customers + Accommodates only takeout orders * Brand preference is low in neighboring Towns and Barangays + Unrecognizable hotline number Opportunities The opportunities Fina’s Barbeque sees in the market is summarized in the data below. These opportunities will help Fina’s come up with its strategic marketing plan for the next three years. + Catering dine-in customers by extending store area * Product innovation- Rice meal * Big market for future possible consumers + Increased brand preference by product innovation Threats Fina's Barbeque sees its competitors, most especially their key competitor as a major threat in the market. Their competitors offer products and services that cannot be offered by Fina’s Barbeque the same Way other competitors does to their customers15 The summary of threats Fina's Barbeque sees in the environment is shown below. * Other competitors in the barbeque industry * High class restaurants for sophisticated customers that may also cater whole selling for special events + Fast food restaurants with recognized hotline cumbers for instant delivery IV. Marketing Strategy The marketing strategy of Fina’s barbeque is focused on increasing customer’s brand awareness, preference, and loyalty towards Fina’s barbeques. The marketing mission and objective of Fina’s Barbeque shows its goals that would allow the management to come up with its strategic planning ‘The marketing strategy of Fina’s Barbeque is also focused on satisfying current customers and pr spect market by giving the best barbeque product in the market. ‘The target market share, based on the projected supply and demand is also shown in the marketing strategy. The target market is the portion of the market on which Barbeque will focus its strategic positioning plan on to. 4.1 Marketing Mission Fina’s Barbeque committed to providing affordable, tasty and quality-wi ‘barbeque products to its customers in Juana and Rosario Complex. Fina’s Barbeque is also committed in accommodating all customers with a friendly and warm service. Fina’s Barbeque will also continue to maintain cleanliness in its selling area and dining area for i16 4.2 Market Objectives ‘The management's objectiv for Fina’s Barbeque to be the most friendly and accommodating barbeque seller that provides the tastiest barbeque and barbeque sauce the neighboring Barangays of Juana and Rosario Complex. Through the marketing strategy, management desires to generate repeat purchase and as much as possible, attract new customers. Also, management desires to increase the ‘target segment’s level of brand preference to Fina’s Barbeque products by 135 percent by the year 2012 through implementing effective advertising and promotion, Fina’s Barbeque also desires to increase its market share to 60 percent and achieve sales revenue of P 4,257,900 by the year 2012. Generation of 74.25 percent gross margin is also expected to be implemented on Fina’s Barbeque selling price on 2012 to achieve a profitability margin of 33.70 percent at end of the business year 2012. 4.3 Target Market ‘The table below shows the total number of market share Fina’s Berbeque will focus its strategic marketing plan into for the years 2010 to 2012. 60 percent will bbe targeted by Fina’s by the year 2012 for it to be the market leader by that time. Table 7 ‘Target Market Year Supply] Demand Gap Wass aes Market_| Share 2010 136875 | 422,125 | 285,250 | 40% 114,100 2011 173,375, 513,125 339,750 45% 152,888 2012 209,875, 604,125 394,250 60% 236,5507 ‘The target market of Fina’s Barbeque is the consumers who are able and willing to buy pork barbeques and living in the area of Juana-Rosario Complex for the years 2010 to 2012. The excess or gap of the projected supply and projected demand for the year 2010 to 2012 is then multiplied with the target market share ‘of Fina’s Barbeque which is 40 percent for 2010. 45 percent for 2011 and 60 percent for 2012. 1g Program Positioning Strategy ‘The marketing positioning strategy will help Fina’s Barbeque achieve its marketing mission and objectives for the next three business years. The product positioning value chain or distribution, pricing, and promotion will be carefully and wisely planned and implemented for Fina’s to achieve its mission and goals for its market share, sales revenue and profitability in the next three-year period. 5.1 Product Brand Strategy Today, the size of Fina’s Barbeque stall is just enough for their employees to accommodate takeout orders. Fina’s selling area is around 10 square meters. Management's positioning objective is to create a bigger area to accommodate takeout orders and dine-ins at the same time. Top view of the store is shown. OoOO0°0 Dining Area OoOOO0 0 ‘Waiting Area Figure 3 ‘Tap view of Fina’s Barbeque Store18 ‘To fulfill this, management will provide tables, much like those found in convenience stores. The high table can accommodate an additional of eight ‘customers aside from the round table Fina’s Barbeque already have as a waiting area for takeout customers. This expansion will allow Fina’s Barbeque to cater a larger number of customers, at the same time allowing it to increase in its market share. The additional chairs and tables will help Fina’s to serve their target market share. The store expansion will also be helpful for the product positioning of Fina’s pork barbeque as a viand for rice meals. In this expansion, one additional personnel is needed to maintain the new dining area along with 2 other personne! inside the selling area. Additional plastic chairs would be worth 800 pesos each and tables for 500 pesos each. Details of the ‘budget for store expansion are shown below. Description Qy. Cost Total Cost Chair 8 P 300 P2400 Table z 300 1.000 ‘Construction 1 6,000 6,000 ‘Additional personnel 4 50,400 201,600 Total Cost P 211,000 ‘The management will build Fina’s Barbeque brand equity by gaining customer loyalty, perception of quality, awareness and increase market purchases. Aside from this, management will position its barbeque products as a delicious viand for rice meal, Management will provide rice meals in banana leaves on aative plates19 for dine-in customers and Styrofoam containers for takeouts. Through this, Fina’s Barbeque will be able to serve both dine-in and takeout customers. As part of product brand name positioning, brand logo will be printed in Fina’s Barbeque packaging. A recognizable delivery hotline number will be advertised together with 1a’s brand logo on plastic bags and Styrofoam containers. Figure 4 Fina’s New Logo ‘This logo will be the trademark of the business and will be registered and paid for as the business’ main logo. This will always inelude Fina’s hotline number, which bby its digits will help customers remember Fina’s Barbeque brand always. The ‘hotline number will also be a strategic plan to promote for Fina’s distribution and deliveries of wholesale orders. Budget for packaging and plates are shown below. Table 9 Packaging Budget Description Qy. | Unit | Amount” | Total Cost ‘Styrofoam and Printing | 20,000 Plastic and Printing 51,000 Native Plates 30 TOTAL20 Styrofoam units will be 20,000 every year and plastic bags will be 51,000 every ‘year for Fina’s to accommodate all its target market for the next years Most importantly, management will maintain friendly and warm service with ‘rained employees to build and maintain good customer relationship. Cleanliness will also be maintained inside the vicinity of the store for both dine-in and takeout ‘customers. ‘Through these product positioning programs, Fina’s Barbeque will be able to gain ‘better brand equity that will also allow Fina’s Barbeque to receive a perception of ‘quality, awareness and increased market purchase from its target market. 5.2 Distribution Strategy Fina’s Barbeque will use exclusive and direct distribution to the consumers of Juana and Rosario Complex. But since the store is located nearer Juara | and 3, a smaller retail kiosk will be placed at the end of Rosario Complex main road and will be operated by two part-time personnel for 4 weeks or one month during ‘Christmas and New Year seasons. For physical distribution, a motorcycle for transportation of wholesale orders will ‘be provided for delivery. There will be two additional personnel to do the deliveries who will be waged the same as the other personnel. If without delivery, ‘the drivers will help and assist in the dining area. Payment for wholesale orders may be done in partial or during delivery. ‘The expansion, retail and motor vehicle for delivery are necessary in accomplishing the target market sales and profit though Fina’s Barbeque have to allot budget cost for this program. The motor vehicle will assist Fina’s Barbeque21 in catering wholesale orders to extend its market share, Details of the seasonal retail kiosk and motor vehicle distribution budget are shown in the table below. Table 10 Distribution Budget Deana Retail Kiosk | Motorcycle | _ Total Cost (P 12,000) | (P 56,000) Cost (Depreciation) P 600 P 11,200 | P11,800 No. of Personnel 2 parti 2 regular Salary 8.400 100,800 109.200 ‘Advertising 2,600 1,000 3.600 Total Cost P 11,600 | P113,000 | P 124,600 5.3 Pricing Strategy Fina’s pricing strategy will be based on a cost-oriented pricing. The variable costs ‘of a pork barbeque comprise of pork, soy sauce, sugar, other condiments and stick. The total variable cost of producing each product would be P 10.33 multiplied with the profit margin to come up with the unit selling price. ‘Computation of unit selling price is show: Table 11 Unit Cost-Based the table below, Description 2010 2011 2012 Variable Costs P1033 P 10.33 P1033 Profit Margin 45.21% 54.89 % 7a25 % Selling Price P 15.00 P 16.00 P18.0022 ‘The profit margin for the unit selling price will increase to 74.25 percent by the ‘year 2012 to help the management reach its target revenue of P 6,228,900 by that ar. Nevertheless, the profit margin will still be enough to accommodate all the ne ssary business expenses and future variable costs inflation, but not putting aside the needs and expectations of the market 5.4 Promotion/ Integrated Marketing Communication Strategy Four tarpaulins of at least four square meters will be bought by the management to give brand awareness to a bigger population Juana and Rosario Complex. One will be placed at the plaza of Rosario, another at the intersection of Juana 1 and 3, and another along the main road of Juana 6, Tarpaulin d shown below. Pork Barbeque “Chicken Barbeque ‘Chicken Gizzard Pork Skin Pork Ear Pork Intestine Hotdog Pork Liver Grilled Pork | WHOLESALE ORDERS and DELIVERIES | ' Are accepted ' Figure 5 Fina’s Tarpaulin23 Direct advertising of Fina’s Barbeque logo stickers printed with Fina’s delivery hotline number will be distributed to publie vehicles that pass by the road of Juana and Rosario Complex. Stickers will be at least a quarter of a square meter in size. Promotion objective is to increase customers brand preference, sales and market share of Fina’s Barbeque. Promotion mix will also help Fina's generate repeat purchase and attract new customers. The promotion strategy will sllow Fina"s new rice meal gain positioning in the market and Fina’s barbeque will now be associated as a viand to rice meals. ‘Through this, dine-in customers will increase leading also to an inerease in its market share. Also, wholesale orders will have quantity discount. Deliveries will also be no-charge delivery so customers’ level of brand preference towards Fina”s wholesaling will increase and customers will be encouraged to continue in wholesale ordering for every special event To sum up the advertising strategy, promotional or advertising tools that will be nal used by Fina’s for the year 2010 are stickers and tarpaulins. These prom tools are for awareness and response from prospect consumers. Promotional ‘budget is shown in detail on the table below. Table 12 Promotion Budget Description Quy. Unit | Amount | Total Cost Tarpaulins 4 Sqm. | P25.00 P40 Stickers 100 Pe 22.50 2.250 TOTAL P265024 5.5 Marketing Research mm, a descriptive research om the Before the implementation of store expat perception of regular consumers regarding the said plan will be researched through interviews by Fina’s Barbeques personnel. A separate experimental research during the operation of the store expansion dine-in area will also be done ‘by the personnel for 3 months to measure the consumers’ level of pref the pork barbeque rice meal. ‘These researches will allow Fina’s to determine if the said strategie planning for ‘the product positioning and distribution is feasible or will be successful in the market. The research will be done by Fina’s personnel and during normal ‘operating hours to minimize costs. Sample respondents that will be used are the ‘regular customers of Fina’s Barbeque. VI. Forecast and Budget ‘The budget for the strategic implementation of Fina’s Barbeque marketing plan is shown in detail on thi part of the paper. Also, the forecasted sales and profit will be explained in the following pages. ‘The profitability will be analyzed by dividing the forecasted income with the forecasted sales. This will determine the success of the strategic plan prepared for Fina's Barbeque. ‘The cost and other marketing tools to be implemented will also be analyzed as to whether it will still yield profit for the business. Information of the projected budget, forecasted sales, forecasted income statement and projected profitability will be presented in tables.6.1 Projected Budget 25 Product positioning includes store expansion and Fina’s Barbeque packaging while distribution includes, retail and delivery. Promotion and other general details of the budget are shown in the table below. Table 13 Projected Budget Description 2010 2011 2012 Total Amount Store Expansion P 211,000 | P 201,600 | P201,600 | P6i4.200 Packaging 55,000 55,000 35,000 165,000 Distribution 124,600 121,000 121,000 366,600 Promotion 2,650 0 0 2630 Total Cost P 393,250 | P377,600 | P377,600 | 1,148,450 6.2 Sales Forecast Percentage of target market on the projected supply and demand zap showed Fina’s Barbeque target market shares as 114,100, 152,888 and 236.550 for the ‘years 2010, 2011 and 2012. Table 14 Sales Forecast 2010 2011 2012 Units Produced 114,100 152,888 236,550 ‘Selling Price per unit PIS PI6 PIB Total Sales P 1,711,500 | P 2.446.208 | P-4.257,90026 ‘The sales me from the target market share of the projected supply and demand ‘gap, multiplied with the strategic selling price of Fina’s Barbeque for the years 2010, 2011 and 2012. A chart of the forecasted sales (see on Figure 6) of Fina’s Barbeque shows that there will be an increasing amount of sales which Fina’s will ‘have on the next three years. The sales forecast for 2010 will increase by 44.10 ‘percent upon entry of the year 2011. and sales om year 201 1 will increase by 74.80 percent upon the entry of year 2012. 4,500,000. 4,000,000. 3,500,000. 3,000,000. 2,500,000. 2,000,000: sales 1,500,000, 1,000,000 500,000. o. 2010 2011 2012 Figure 6 Sales Forecast 6.3 Income Forecast ‘The income forecast will allow Fina’s Barbeque to see its target profit and costs ‘based on the strategies indicated on the positioning program of Fina’s barbeque. after tax of P 1,434,738.50 by the year 2012. This profit is expected to be achieved after a strategic implementation of the Fina’s Barbeque has a projected pro! positioning strategy of Fina’s Barbeque marketing plan.27 Forecasted Sales less cost of goods sold or variable cost shows the gross profit Fina’s Barbeque is able to achieve in the next three years. The gross profit is then subtracted with the projected expenses from the positioning program made by the management to come up with the projected net profit after tax. The Income statement forecast is shown in the table below. Table 15 Forecasted Income Statement 2010 2011 2012 Sales P 1,711,500 P 2,446,208 =| P 4,257,900 Less: COGS 1,178,653.00 1,579,333.04 2,443,561.50 Gross Profit 532,847.00 866,874.96 | 1,814,338.50 (Gross Margin) 31.13% 35.44% | 42.61% | Business Expenses: | Store Expansion 9,400 0 | 0 Packaging 55,000 55,000 | 55,000 Distribution Expense 15,400 11,800 | 11,800 Promotion Expense 2,650 0 | 0 Salaries: 6 regular 302,400 302,400 | 302,400 2 part time 8.400 8.400 | 8,400 | Total Expenses 393,250 377,600 | 377,600 | Net Profit 139,597 489,275 | 1,436,739 | | | ‘Less: Business and 2,000 2,000 | 2,000 License fees | ] Net Profit after Tax P 137,597.00 P 487,247.96 | P 1,434,738.5028 Improvement on Fina’s sales and net profit will be observed as the year progress. ‘As Fina’s Barbeque reach its third year of operation after implementation of it strategic positioning plan, we will find an increase in sales, margin and profit. A ‘chart showing the forecasted sales, gross profit and net profit that Fina’s will achieve by the year 2010, 2011 and 2012 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 41,500,000 1,000,000 500,000 ° 64 Profitability Analysis 2010 aon 2012 Figure 7 Forecasted Income Statement arbeque shown in the figure below. ‘The profit margin was computed by determining the profits’ fraction towards the yearly sales. Details of Fina's profitability for the year 2010, 2011 and 2012 are shown in the table given below. Table 16 Profitability Margin 2010 2011 2012 Net Profit P 137,597.00 P 487,274.96 P 1.434,738.50 Sales 1,711,500 2,446,208 4.257,900 Profitability 804% 19.90% BGVIL 29 Analysis of Fina’s Barbeque profitability for the years 2010, 2011 and 2012 shows an increase to 8.04 percent by the year 2010, 19.92 percent by the year 2011 and 33.70 percent by the year 2012. The profitability analysis shows that Fina’s Barbeque strategy over its projected yearly sales is increasingly profitable for the business, Contingency Plan 7.1 Firstly, if variable cost increases drastically, Fina’s Barbeque will put a delivery ‘charge on wholesale deliveries to accommodate the cost incurred by the busines: 7.2 But if variable cost decreases, an allowance for sales discounts will be allotted for wholesale orders and rice meals. This is to continually support and position Fina”s wholesaling and newly offered rice meals. 7.3 Secondly, if market share and profit will decrease by the first half of the strategic three-year operation, Fina’s will stop the operation of dine-in area and focus on take-out orders only to decrease total cost from cmployce’s salary. Also, deliveries will still be catered by the current employees of Fina’s barbeque but additional personne! will not be anymore considered. 7.4 Lastly, ifthe strategic plan for product positioning or the rice meal and dining -area operation is successful in returning profits to the business, further expansion ‘or renovations will be done to cater a greater number of.The comput the table below. Appen ty. of Projected Year | O° a b ne Pork BBQs Supply (atby) 2010 27,375 9125 36500, 136875, 2011 63.875 9125 36500, 173375, 2012 100,375, ~9125 36500 209875, The computation of Projected Demand the table below. 1g Time Series Regression Model is _ Projected Historical Demand Year | Demand | a b fatby) 2010 155,125 | 21,625 | 127,500 ‘331,625 2011 264,625 | 21,625 | 127,500 659,125 2012 | 410,135 | 2,635 | 137.500 786.625 30 mn of Projected Supply using Time Series Regression Model is shown in