MARKETING

MARKETING
ASPECT

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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MARKETING ASPECT
A Marketing aspect determines the suitability of property for profitable development of a business and define
optimal products and amenities in accordance with projected market demand.

I.

The Company and its Location

Third Power Manufacturing and Distribution Inc. decided to allocate its plant in Namayan,

Mandaluyong City, Metro Manila. It has an area of 1,400 sq. meters. The designated location is chosen because it
is wide and suitable for a manufacturing plant and warehousing. It is also accessible in main commercial districts.
The city lies in the heart of Metro Manila and is the 18 th largest metropolitan area in the world. The city is said to be
fast progressing due to urbanization and modernization.

MARKETING, Figure 1, Third Power Manufacturing and Distribution Inc. Location Site

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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II.

Product

PRODUCT NAME: Cocube

PRODUCT DESCRIPTION:
Cocube is a soluble chocolate drink molded in a cube shape that weigh 12.5 grams each. Its a
ready-to-go kind of drink which can solute same with hot and cold water. Cocube is a combined pro-health and
energy drink. Cocube is made of pure cacao, oats and skimmed milk. Cocoa is composed of flavonoids which
acts as an antioxidants. Antioxidants is one of the bodys defense for free radicals. Cocoa helps reduce the risk of
heart attack and stroke, reduce the risk of high blood pressure and even the risk of cancer. Cocoa is also rich in
minerals like iron, magnesium, manganese, zinc and others.
Oats are rich in protein and dietary fibers which helps boost the immune system. It is also rich in
magnesium, iron and zinc. And skimmed milk can provide all the nutrients needed of a milk without the added fat
and is rich in minerals and vitamins. Skimmed milk is also a good source of calcium and high in protein.

MARKETING, Figure 2, 3 pieces of Cocubes

PRODUCT PROPERTIES
Appearance
-

Health Nutrients

Packaging

Taste

Cost

-It is a cube-like shape -

-All ingredients are

- 2 Cocubes is pack

-Cocube is a

-Cocube is

drink, mixed with oatmeal

especially chosen

in a pouch made

chocolate drink that

affordable despite

for a full boost energy.

because of their

with cellophane.

will satisfy the

of the complete

-Dark brown colored for

nutrient components

Each pouch with 2

consumers cravings

supplements that it

emphasizing the pure

which will help the

cocubes weigh 25

with enough taste of

can give to supply

cacao ingredient.

consumers to assure

grams. The Box

chocolate drink mixed the nutrients the

their health safety.

contains 48 pouch of

with milk and

cocubes.

oatmeal.

consumers need.

MARKETING, Table 1: Product Properties

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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III.

Industrial Analysis

INDUSTRY OVERVIEW
The Philippine tablea is defined as roasted, ground and molded nibs of fermented pure (100%)
cacao beans without added ingredients and additives. It is also a cocoa mass and cocoa liquor made from cacao
beans that are fermented, dried, roasted, ground then molded into blocks, balls, discs, or tablets.
It is traditionally used in the Philippines to make a hot chocolate beverage using a wooden mixing
implement or stirrer. The Cacao Industry Development Association of Mindanao estimated that around 2,000 tons
of cacao beans is processed to tablea.
The industry is composed mostly of smallholder farmers who supply dry cacao beans to the
processors/manufacturers. Manufacturers are mostly small to medium scale enterprises. Some of the larger players
are also into cocoa powder and cocoa butter.
The country exports and imports cocoa and cocoa products which includes chocolate
confectionery containing cocoa in various forms and sizes, other food preparations containing cocoa in various
forms and sizes, other than chocolate confectionery containing cocoa in various forms and sizes, and other than
chocolate confectionery containing cocoa in tablets or pastilles. The market opportunities for tablea and cocoa
products is growing, as there is an increasing number of cafes and restaurants offering chocolate drinks. Moreover,
the trend towards wellness and a healthy lifestyle is seen as another opportunity for cocoa, as it is being positioned
and marketed as a health food given its natural contents and health benefits. It is projected that by 2020, there is
an additional one million tons of cacao needed to meet global demand, while an additional 30,000 tons are
needed to meet local demand. As such, cacao growers and cocoa manufacturers in the country are wellpositioned to translate these market opportunities into a profitable reality.
The proponents thought of a new idea in transforming the cocoa tableau into a shape that people
will get fond of. In Korea, sugars are formed into different shapes but they mostly preferred a 3 dimensional shape
which is a cube. So the proponents found out that it was a unique idea to use in producing a chocolate drink in a
different form from the taste of the Filipino people they crave for but with a twist, since sugar and other powdered
beverages are easy to solute in water that ran through the right process.

IV.

Target Market Analysis

A target market is group of consumers that the business has decided to aim its marketing efforts and

ultimately the product itself. A well-defined target market is the first element to a marketing strategy.
The TPMDI plant and warehouse site is located in Namayan, Mandaluyong City of 1,400 sq. meters.
The households located along with the commercial districts of the 25 km radius from Mandaluyong and itself are
the target market. It will serve as the basis for the needed respondents. Locations that belong to the 25 km radius
from our plant location are NCR, Bulacan, Cavite, Laguna and Rizal. The data are gathered from the survey
conducted by the proponents.

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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TPMDI target market concentrate on a particular bracket specification of potential customers. It is produced for
both male and female aging 12 years old up to 65 years old. The products will be distributed in supermarket and
public market of selected municipalities of Laguna, Cavite, Rizal and Bulacan along with NCR.

MARKETING, Figure 3, Target Market Map

V.

Market Segmentation

Market segmentation is the breakdown of a large market portion into segments that identifies the needs, wants
and demand characteristics of the market. It aims to identify and design a market trend that will be present and
meet the expectations of the consumers to satisfy their cravings of a desirable.

Market Consumers Segmentation

-

Factors/ Variables

Variables Breakdown

Location of the

NCR is the center of

Target Market

culture, economy,

Geographic

Region

NCR, Bulacan, Cavite, Laguna, Rizal

Segmentation

education and
government of the
Philippines and it is the
most populous region of
the Philippines

Population
Density

-As of 2010, total population

The population of the

of

said areas composed of

NCR: 11, 855, 975

maximum numbers of

Bulacan: 2,924, 433

households

Cavite: 3,090, 691

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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Laguna: 2, 669, 847
Rizal: 2,298, 691
Capable of drinking
chocolate that wont
Demographic

Age

12 to 65 years old

Segmentation

affect their health like

diabetes for drinking
sweet beverages
Both gender can

Gender

Male and female

consume the product

It is non-seasonal, usually

Usage

every day you drink

Rate

Non- seasonal

Behavioral

chocolate for breakfast,

snack and etc. Usage

Segmentation

rate is high
The product is usually
Usage

Common

Status

consumed by end-users
mostly every day.

MARKETING, Table 2: Segmentation Variables and Breakdowns for the customers of the Cocube Chocolate Drink

VI.

Customer Analysis

CUSTOMER ANALYSIS
A customer analysis is the process of collecting and evaluating of data from a customer behavior
which helps in making key business decisions. It is a critical section of a companys business or marketing plan. It
defines the target consumers, their needs and how the product can satisfies these consumers.

WILLINGNESS TO USE THE PRODUCT

The target market total population is 14, 432,594. The researchers have conducted the survey from
the 400 respondents from the target market. According to the survey, 91% or 364 of the respondents are going to
patronize the product while 9% or 36 of them are not.

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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NO, 9%,
9%

YES,
91%,
91%
MARKETING, Diagram 1: Percentage of the Willingness of the respondents to buy the product.

Others, 5%, 5%

6-15 php, 15%,

15%

36-45 php,
38%, 38%

16-25 php,
20%, 19%

26-35 php,
23%, 23%
MARKETING, Diagram 2: Percentage of How much the respondents are willing to spend to buy the product.

VII.

Competitor Analysis
Competitor analysis in marketing and strategic management is an assessment of the strengths and

weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic
context to identify opportunities and threats. Profiling coalesces all of the relevant sources of competitor analysis
into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and
adjustment.
Competitor analysis is an essential component of corporate strategy. It is argued that most firms do
not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called
informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every
manager continually receives. As a result, traditional environmental scanning places many firms at risk of
dangerous competitive blind spots due to a lack of robust competitor analysis.

A. NESTLE PHILIPPINES INC.

Nestl Philippines, Inc. is a nutrition, health, and wellness company. The company provides food
products and beverages. It offers dairy health and nutrition solutions, coffee, beverages, liquid beverages and dairy

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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culinary, ice cream, chilled dairy products, breakfast cereals, confectionery products, infant nutrition products, pet
care products, and healthcare nutrition products. The company was formerly known as Filipro, Inc. and changed
its name to Nestl Philippines, Inc. in 1986. The company is based in Makati City, the Philippines. Nestl Philippines,
Inc. operates as a subsidiary of Nestl S.A.

B. TRIDHARMA MARKETING CORPORATION PHILIPPINES

Tridharma Marketing Corporation (TMC) is a member of the TAO Community of Companies, one of
the Philippines premier holding companies focused on supply chain services. TAO has grown to become a multibillion peso corporation with its core businesses ranging from consumer brands distribution, logistics management,
marketing and commodity trading.
Under its consumer brands distribution business is TriDharma Marketing Corporation, which is the first
national distribution company of TAO. Established in 2006, TMC has fast become the exclusive national distributor
of various multinational and local products.
PT Mayora appointed TMC as the exclusive national distributor in the Philippines in November 2005.
Product lines are Kopiko and Fres confectionaries, Kopiko Black coffee, Kopiko Brown Coffee, Kopiko Candies, Fres
Candy and Energen Cereal Drink. PT Mayora experienced momentous growth in its sales when it forged partnership
with TMC. Its success is a good subject of case study on a small unknown brand becoming a part of Filipino life.

C. AB FOOD AND BEVERAGES PHILS. INC.

Associated British Foods is a diversified international food, ingredients and retail group with sales of 6.8 billion
and over 85,000 employees in 43 countries. The group is one of Europe's largest food companies with a wide range
of successful brands and products in the food sector. It is also a significant supplier of branded and non-branded
grocery products and a leading textile retailer. In the Philippines, the company is known as AB Food & Beverages
Phils Inc. Our mission is to provide quality, distinctive and successful food & beverage brands that enhance the
quality of life and delight our consumers. There are 2 main brands in the Philippine portfolio - Ovaltine and Twinings.
Ovaltine is a delicious choco malt drink that has the unique Activ8 formula with Mind-enhancers (Iron,
Iodine, Folic Acid & Zinc) to help children become smart so they can do well in school and everyday situations. With
over 100 years expertise, Ovaltine has always maintained high quality standards in offering superior nutrition to its
consumers. Twinings is a premium tea brand with more than 300 years experienced in superior tea blending. From
classic black brews, flavored fruit blends, relaxing green teas, to zesty Infusions. Twinings wide range of flavors never
fails to enhance the taste, mood and soul of every moment.

D. COMMONWEALTH FOODS, INC.

COMMONWEALTH FOODS INC. Formed by the conglomeration of three pioneering food-manufacturing
companies, which were merged on September 30, 1968. Filipinas Biscuit Corporation Philippine Food Industries
Commonwealth Foods, Inc. Formed by the conglomeration of three pioneering food-manufacturing companies,

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which were merged on September 30, 1968. Filipinas Biscuit Corporation Philippine Food Industries
Commonwealth Foods, Inc.
The Cofi Division (Roasted and Instant Coffee products) Organized in January 21, 1951 and commenced
production of roasted ground coffee in 1952 in its own plant in Makati, Rizal. Put up the first instant and soluble
coffee manufacturing plant in the country and in Asia in 1956. Organized in January 21, 1951 and commenced
production of roasted ground coffee in 1952 in its own plant in Makati, Rizal. Put up the first instant and soluble
coffee manufacturing plant in the country and in Asia in 1956.
The Philfood Division (Cocoa and Chocolate products) Began operations in October 1956. First entity
in the Philippines to venture into cocoa and chocolate processing from its plant located at EDSA, Mandaluyong
City Umbrella brand name RICOA Exporting Cocoa butter since 1956 to major users in US and Europe. Began
operations in October 1956. First entity in the Philippines to venture into cocoa and chocolate processing from its
plant located at EDSA, Mandaluyong City Umbrella brand name RICOA Exporting Cocoa butter since 1956 to
major users in US and Europe.
The Fibisco Division (Biscuit products) Organized in January 23, 1959
and commenced production in 1960. Popularly known for its English Quality Biscuits Most of the items are
household names for both young and old. Organized in January 23, 1959 and commenced production in 1960.
Popularly known for its English Quality Biscuits Most of the items are household names for both young and old.

SWOT ANALYSIS OF COMPETITORS

SWOT diagram provides a good overall view of your business in a visual and concise manner. -Efficient use of
resources and improvement in operations. -Discovery of opportunities and management of possible risks. Competitive positioning.

A. NESTLE PHILIPPINES INC.

MARKETING, Figure 3, Nestle SWOT Analysis

B.

TRIDHARMA MARKETING CORPORATION PHILIPPINES

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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MARKETING, Figure 5, Energen SWOT Analysis

C. AB FOOD AND BEVERAGES PHILS, INC.

MARKETING, Figure 6, Ovaltine SWOT Analysis

VIII.

Market Share
A percentage of total sales volume in a market captured by a brand, product, or company. Market

share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over
the same period. This metric is used to give a general idea of the size of a company to its market and its competitors.

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Market Share

Chuckie

26%

Milo

15%

Ovaltine
7%

Ricoa

30%

7%

Energen

15%

Cocube

MARKETING, Diagram 3, TPMDI Market Share

Chuckie

29.75%

Milo

14.87%

Ovaltine

7.44%

Ricoa

7.44%

Energen

14.87%

Cocube

25.63%

MARKETING, Table 5, Market Share

The market share is computed by dividing the production capacity over the total sum from the
competitors and TPMDI itself. From the diagram shown above, Third Power Manufacturing and Distribution Inc.
owned 26% of the market shares based on the total production capability of TPMDI.
IX.

Demand Analysis
Demand analysis define and identify whos going to patronize the product, how many they might buy

and how much theyre willing to spend for purchasing it and as well as the other factors in considering when acquiring
the product.
Demand is an economic principle that describes a consumers desire and willingness to pay a price for
a specific good or service.
The demand to be considered to this study is the total numbers of population inside National Capital
Region, some part of Region 3 and 4-A. In order to determine the total demand of Cocube, survey was conducted to
the residents in the target market. The total number of respondent was calculated using the Slovens formula.

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Year

2014

Respondent (n)

400

Total No. of Population (N)

4, 299, 863

Marginal Error

5%

Percentage of Willing to Try

91%

Percentage of Willing to Try with Marginal Error

86%

MARKETING, Table 6, Demand scheduling basis

Historical Demand
Historical demand is computed using two methods. The arithmetic straight line and statistical straight
line. The proponents used the two methods to identify the lowest standard deviation in order to compute the
market share.
1. Arithmetic Straight Line Method
HISTORICAL DEMAND VALUES
Year

Yi-1

Yc

Y-Yc

(Y-Yc)2

2011

13,690,327.56

2012

14,413,175.96

722,848.00

13,690,327.56

14,413,175.56

0.40

0.16

2013

15,136,024.36

722,848.00

14,413,175.56

15,136,023.56

0.80

0.64

2014

15,858,872.26

722,848.00

15,136,023.56

15,858,871.56

0.70

0.49

2015

16,581,721.16

722,848.00

15,858,871.56

16,581,719.56

1.60

2.56

MARKETING, Figure 6, Historical Demand using Arithmetic Straight Line Method

2. Statistical Straight Line Method
HISTORICAL DEMAND VALUES
Year

X2

XY

Yc

Y-Yc

(Y-Yc)2

2011

13,690,327.56

13,690,327.56

12,967,479.21

722,848.35

13,690,327.56

0.00

2012

14,413,175.96

28,826,351.92

12,967,479.21

722,848.35

14,413,175.91

0.05

0.0025

2013

15,136,024.36

45,408,073.08

12,967,479.21

722,848.35

15,136,024.26

0.10

0.01

2014

15,858,872.26

16

63,435,489.04

12,967,479.21

722,848.35

15,858,872.61

-0.35

0.1225

2015

16,581,721.16

25

82,908,605.80

12,967,479.21

722,848.35

16,581,720.96

0.20

0.04

total

75,680,121.30

15

55

234,268,847.40

0.175

MARKETING, Figure 7, Historical Demand using Statistical Straight Line Method

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X.

SUPPLY ANALYSIS
Supply Analysis is a detailed review of the inputs and outputs of a process that is employed to assess
how the available quantity of a product is affected by changes in demand, input factors and production
techniques. Supply analysis is often used to make key policy decisions by manufacturing business managers
since it gives them insight into how shifts in production are likely to influence market supply.
Supply is the amount of a product or service that producers and firms are willing to sell at a given price all
other factors being held constant.

Historical Supply
Historical supply is computed using two methods. The arithmetic straight line and statistical straight line.
The proponents used the two methods to identify the lowest standard deviation in order to compute the market
share.
1. Arithmetic Straight Line Method
HISTORICAL VALUES
YEAR

Yi-1

Yc

Y-Yc

(Y-Yc)2

2011

10,198,573.17

2012

10,513,992.96

330,356.71

10,198,573.17

10,528,929.88

-14,936.92

223,111,495.44

2013

10,839,168.00

330,356.71

10,528,929.88

10,859,286.59

-20,118.59

404,757,663.59

2014

11,174,400.00

330,356.71

10,859,286.58

11,189,643.29

-15,243.29

232,357,890.02

2015

11,520,000.00

330,356.71

11,189,643.28

11,519,999.99

0.01

0.00

MARKETING, Figure 8, Historical Supply using Arithmetic Straight Line Method

2. Statistical Straight Line Method
YEAR

X2

XY

Yc

Y-Yc

(Y-Yc)2

2011

10,198,573.17

10,198,573.17

9,858,248.62

330,326.07

10,188,574.69

9,998.48

99,969,626.31

2012

10,513,992.96

21,027,985.92

9,858,248.62

330,326.07

10,518,900.76

-4,907.80

24,086,500.84

2013

10,839,168.00

32,517,504.00

9,858,248.62

330,326.07

10,849,226.83

-10,058.83

101,180,060.97

2014

11,174,400.00

16

44,697,600.00

9,858,248.62

330,326.07

11,179,552.90

-5,152.90

26,552,378.41

2015

11,520,000.00

25

57,600,000.00

9,858,248.62

330,326.07

11,509,878.97

10,121.03

102,435,248.26

54,246,134.13

15

55

166,041,663.09

354,223,814.79

MARKETING, Figure 9, Historical Supply using Statistical Straight Line Method

XI.

FORECASTING
A. Forecasting Demand
Forecasting is the use ofhistoric data to determine the direction of future trends. Forecasting is used by
companies to determine how to allocate their budgets for an upcoming period of time. This is typically based

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on demand for the goods and services it offers, compared to the cost of producing them. Forecasting also
provides an important benchmark for firms which have a long-term perspective of operations.
In order to get the forecasted demand, 2 methods were used. These are Arithmetic Straight Line Method
and Statistical Straight Line Method. The proponents used this two methods in order to get the market share by
getting the lowest standard deviation.

Compute the expected values, using this two methods:

A. Arithmetic Straight Line where

Yc= initial value (1st year)
Yn= final value (last year)
N= number of years
Yi= value for the year past

Yc= a+ Yi- 1
To find a:

a=
B.

Statistical Straight Line where

Yc= a+ bx +c
To find a & b:

a= x b
And

b= ()

Compute for the standard deviations of each method using the

formula:

()

NOTE : The method which yields the least standard deviation is likely to come up
with the best estimates.

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1. Forecasting Demand Using Arithmetic Straight Line Method
PROJECTED VALUES
Year

Yi-1

Yc

2016

722,848.00

16,581,719.56

17,304,567.56

2017

722,848.00

17,304,567.56

18,027,415.56

2018

722,848.00

18,027,415.56

18,750,263.56

2019

722,848.00

18,750,263.56

19,473,111.56

2020

722,848.00

19,473,111.56

20,195,959.56

MARKETING, Table 11, Historical Demand using Arithmetic Straight Line Method
2. Forecasting Demand Using Statistical Straight Line Method
PROJECTED VALUES
Year

Yc

2016

12,967,479.21

722,848.35

17,304,569.31

2017

12,967,479.21

722,848.35

18,027,417.66

2018

12,967,479.21

722,848.35

18,750,266.01

2019

12,967,479.21

722,848.35

19,473,114.36

2020

12,967,479.21

722,848.35

10

20,195,962.71

MARKETING, Table 12, Forecasted Demand Using Statistical Line Method

A. Forecasting Supply
1. Forecasting Supply Using Arithmetic Straight Line Method

PROJECTED VALUES
YEAR

Yi-1

Yc

2016

330,356.71

11,519,999.99

11,850,356.70

2017

330,356.71

11,850,356.70

12,180,713.41

2018

330,356.71

12,180,713.41

12,511,070.12

2019

330,356.71

12,511,070.12

12,841,426.83

2020

330,356.71

12,841,426.83

13,171,783.54

MARKETING, Figure 10, Forecasted Supply via ASLM

2. Forecasting Supply Using Statistical Straight Line Method

PROJECTED VALUES
YEAR

Yc

2016

9,858,248.62

330,326.07

11,840,205.04

2017

9,858,248.62

330,326.07

12,170,531.11

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2018

9,858,248.62

330,326.07

12,500,857.18

2019

9,858,248.62

2020

9,858,248.62

330,326.07

12,831,183.25

330,326.07

10

13,161,509.32

MARKETING, Table 14, Forecasted Supply via SSLM

XII.

Demand and Supply Analysis

Demand and supply is a relationship between the amount of goods or services that are available and

the amount that people want to buy especially when this controls prices. The table below shows the demand and
supply readings as well as the gap analysis.
Demand

Supply

Gap

Production Capacity

Market Share

17,304,569.31

11,840,205.04

5,464,364.27

3,970,560.00

0.2511

18,027,417.66

12,170,531.11

5,856,886.55

4,049,971.20

0.2497

18,750,266.01

12,500,857.18

6,249,408.83

4,288,204.80

0.2554

19,473,114.36

12,831,183.25

6,641,931.11

4,526,438.40

0.2608

20,195,962.71

13,161,509.32

7,034,453.39

4,764,672.00

0.2658

MARKETING, Table 15, Demand and Supply Analysis

XIII.

MARKETING STRATEGY
A marketing strategy defines the product and the market itself. It is a fundamental process of increasing

sales and achieving a sustainable competitive advantage beyond its competitors. It also defines how the organization
will successfully engaged customers, prospects and competitors in the market arena. A marketing strategy is the
foundation of a marketing plan. A marketing plan is a specified actions required to successfully implement a marketing
plan.
Third Power Manufacturing and Distribution Inc. sell its product at a very affordable price so that end
users can afford and enjoy the product.

TPMDI SWOT ANALYSIS

To ensure the success of a business, certain areas must be considered and evaluated to be able to know the
strengths, challenges, opportunities, and threats that the business would possibly encounter.

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Marketing, Figure 5, TPMDI SWOT Analysis

A. Advertising and Promotional Strategy

Advertising and promotional strategy is one way of gaining and increasing sales. The main goal of advertising
and promoting the product is to attract the consumers and subsequently persuade them to purchase the goods or
service. It is a way of communicating the benefits of your product to the target market. It is important to note that
people who have been pleased by your customer service or product offering are likely to pass on good comments to
others. By managing good relations with your customers you are effectively using them to advertise your business
through word-of-mouth. A key component of marketing strategy is often keep the marketing firm in line with a
companys overarching mission statement.
TPDMI will be using indirect communication media and interactive communication media in promoting its
products through social media, flyers and print ads. The company will communicate with its prospective consumers
giving them information about its product while simultaneously encouraging them to make a buying decision. Online
advertisements will greatly help the company and its product to be known in the market. Another tool to be used by
the company in product promotion is the World Wide Web wherein the company will have its own webpage to reach
its target market and allows the customer to learn more about the company and its product. The company will use a
free DNS that will serve as their domain, it will also utilize the use of social media networking such as Facebook, Twitter
and blogs targeting mainly NCRs household population, creating a fan page and inviting friends unto its account.
MARKETING, Figure 6, Design of flyers and print ads

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

Cocube Chocolate Drink

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MARKETING
B. Sales Strategy
To achieve in inviting the costumers from buying the product a well-planned sales strategy is one of the
significant factors in reaching the desired results. Planning and creating an effective sales strategy requires looking at
long-term sales goals and analyzing the business sales cycle, as well as meeting with sales people about their personal
career goals. Successful strategies help the sales force focus on target market customers and communicate with them
in relevant, meaningful ways. A successful sales strategy conveys this so that the sales force spends time targeting the
correct customers at the right time.
TPMDI sell its product through online purchasing in order for the consumers or clients to achieve an easy way of
buying a product without wasting time and expenses from traveling or visiting the location especially when they are
far from the vicinity where the plant is located. TPMDI also sell its product at a very affordable price compare to the
other local brands. Its not because it is made locally in the Philippines with local raw material distributors but right
consumers deserve it.

B. Pricing Strategy
Pricing strategy is an activity aimed at finding the products optimum price, typically including overall marketing
objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends.

A. DIRECT MATERIAL COST

Raw Material
Cocoa Tableau
Oats
Washed Sugar
Skimmed Milk
TOTAL

Supplier
BUDs Tableya
Shantou Yangyu Foodstuff Co., Ltd
Victoria Washed Sugar
AMALAC Skimmed Milk

# of kg
30
50
20
25

Cost
P6000
P1950
P1350
P4200
P13500

Cost/ kg
0.2
0.039
0.0675
0.168

FP/g
3.75
1.5
1.25
2.25

Total Cost
0.75
0.06
0.08
0.38

B. SUMMARY OF DIRECT MATERIAL COST

Cost per Batch

P13,500

1 Finished Product
1 Finished Product
1 Pack

12. 5g
P1.27
25g

1 Pack of Cocubes

P2.54

C. PACKAGING COST

1 BOX
1 BOX
COST/BOX
1 BATCH

Packaging breakdown of cost

96 Finished product
Cellophane packaging
48 packs
Box
20php
195 boxes/ day
Packaging Cost

0.94php/ pack
0.4167php/pack
1.3567php/pack

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

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MARKETING
D.

Mark Up:

.
.
.

SRP = 6.4945php/pack

XIV.

Channel of Distribution
Distribution channel is composed of chains of business operations starting from the product

manufacturer until it reaches the consumers. It shows the interconnection of the business starting from its main
producer to how the product was ordered and sold, how it is distributed to the wholesalers and bought by retailers
and how it reaches the end users of the product.

MARKETING, Figure 3, Distribution channel of Third Power Manufacturing and Distribution Inc.

THIRD POWER MANUFACTURING AND DISTRIBUTION INC.

Cocube Chocolate Drink

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