Vernal Incorporated ( Cattleya ® Yellow Ruled Pad )
Marketing Plan
Prepared for: Prof Andal
Prepared by: Pier Angelie E. Salvia
B-223 BSBA-MM
I. Executive Summary
Today’s educational system is becoming increasingly competitive on both student and on the school supplies/stuffs that they are using and will be using. Cattleya is known for its good quality product when it comes to paper. Students nowadays are more willing to learn in the easiest way. They don’t want to be troubled in their studies, especially on the things that they are using in their studies, that is why I have introduced the new sizes of yellow ruled pad of Cattleya’s of Vernal Incorporated to produced different sizes like ½ crosswise and lengthwise and ¼. As what I have noticed to college students whenever they have a quiz or seatwork teachers ask them to bring out ½ lengthwise of a yellow pad paper and other sizes of it, because yellow pad has only one size which is the whole pad students are troubled to produced this kind of size. Our product is designed for the students to experience a more convenient way of learning in terms of our new yellow pad paper.
II. Core Competencies
Cattleya seeks to use its core competencies to achieve a sustainable competitive advantage, in which competitors cannot provide the same value to consumers that Cattleya does. We already developed core competencies in offering a high-quality, branded product whose image is recognizable by consumers and developing a reputation among retailers as a reliable manufacturer, delivering the requested number of products on schedule. The company intends to build on these competencies through marketing efforts that increase the number of products offered as well as distribution outlets (National Bookstore). By forming strong relationships with consumers, retailers, and supplier of paper trees, Cattleya believes it can create a sustainable competitive advantage over its rivals. No other paper company can say to its customers with as much conviction “Brand of Quality and Confidence !”
III. Current Marketing Situation
Cattleya is planning to focus again on paper industry. The marketing environment for our new product has an overwhelming opportunities. It also contains some challenges that the firm believes it can meet successfully. Cattleya’s Yellow Pad Paper of Viral Incorporated is a new product and has no existing clients, projects or history to account for. However, the proprietors are experienced in the industry and have the financial capacity to conduct business successfully. Cattleya will provides different sizes of yellow pad paper such as ½ crosswise, ½ lengthwise, and ¼ pad paper as part of our existing product which is the whole yellow pad paper. All of the materials that will be used will be of best available quality that used on our existing product, the whole yellow pad paper to ensure the quality of the new product that were going to produce. Cattleya’s new product will be available on different bookstores (National Bookstores, Bestsellers ETC.). It will allow the consumers to check this new product conveniently.
IV. Threats and Opportunity Analysis (SWOT Analysis)
STRENGHTS:
Cattleya have a number of marketing strengths, including:
• good quality
• dedication of the staff
• financial resources
• ability to respond to the needs of the market
• business is located within the target market
WEAKNESSES:
Cattleya has identified areas where improvements are required, including: • has many competitors
• same place of competitors distribution
• lack of research and development facilities
• proprietors have limited security with which to raise finance for future growth and development
• business is principally dependent on one person during the formative stages
OPPORTUNITIES:
There are ample opportunities for Cattleya’s new product in Cities specifically malls which is why Cattleya is distributing this product in that areas. The key opportunities available are:
• rapidly growing market due to a rural community
• poor reputation and poor quality of many existing paper businesses • large number of paper business within the target market location • availability of casual staff
• availability of display and manufacturing premises within the area • high disposable income within the target market
Threats:
Cattleya will need to be aware of and try to overcome the following threats: • potential for economic downturns
• existence of competitors within the industry
• increasing cost of materials, that were used in the product • difficulties of getting and retaining suitable staff and reliable supplier • possible government regulation
• geographically diverse market
V. Objectives And Issues
Cattleya’s goal is to be the leading producer and marketer of yellow pad papers in new sizes here in the Philippines. Cattleya wants to inspire students to be more serious in their studies because of the convenient that are product can offer. In addition strives to preserve our natural environment in producing our new product. We also obtain financing to expand manufacturing capabilities, and increase distribution. During the next five years, Cattleya seeks to achieve the following goals and objectives: Goals:
1. Obtain financing to expand manufacturing capabilities, increase distribution and introduce the product worldwide 2. Increase revenues by
at least 50 percent each year
3. Introduce new product shops
4. Enter new geographic markets
Objectives:
1. Develop a successful Internet site, while maintaining strong relationships with retailers. 2. Develop its own conservation program aimed at helping communities raise money to purchase open space.
VI. Marketing Strategy
Cattleya will introduce a new product, the different sizes of yellow pad paper, using penetration pricing, extensive advertising, and expanded distribution in order to increase our revenues and growth rate. TARGET MARKET:
The target market for Cattleya products is students, specifically college students. These consumers represent a demographic group of teenagers and individuals; they are single. These consumers are price conscious and consistently seek value in their purchases. Regardless of their age (whether they fall at the upper or lower end of the target range) . They are somewhat status oriented but not overly so. They like to be associated with high-quality products but are not willing to pay a premium price for a certain brand. Current Cattleya’s customers tend to live cities or rural areas. However, one future goal is to target consumers in the province or urban areas as well.
VII. Action Programs
Product:
The Cattleya has strong product benefits compared to current market offerings. Our product will serve as the first paper brand who offers different sizes of a yellow pad paper. Its target market will surely responds as soon as this product is launch because only Cattleya offers this kind of product. Price:
To achieve our objectives we will offer our unique product in at a suggested retail price of Php 99.75 (One set- 2 pad ½ lengthwise, 2 pad ½ crosswise
and 1 pad ¼ of yellow pad paper)
Distribution:
This time we will expand our distribution to access other retail store channel that can offer our product. Promotion:
There are several marketing priorities that are crucial to ensure a successful penetration into the markets with our new product. The first priority is to build awareness of its brand’s new product within the different retail segments. This will be accomplished through advertising in leading paper industry magazines. This and poster, billboards and television advertising will be scheduled two-thirds in the first six months of the launch of our new product. To achieve consumer awareness in the first year, our advertising voice share will be considerably higher than the other paper business leaders. VIII. Budgets
Cattleya current plan does not anticipate closing sale, as its main focus is penetrating into the paper industry. In order to gain exposure the allocated marketing expenses are Php 1,000,000. If sales were achieved in the penetration period, Php 2,500,000 in sales would be required to breakeven against the marketing budget. One of the important trends that this marketing budget is the steady increase in sales of Cattleya. It would have to take additional risks in order to meets the market demand for the product. Another one is as Cattleya gains transactions by this new product, marketing expenses should decrease as word mouth and referrals become the primary source of marketing. IX. Controls
Control activities must be in place in order to monitor quality and costumer service satisfaction so Cattleya can respond immediately to any problems. Once contracted relationships will be managed using reviews, costumer satisfaction surveys, problem resolutions, and continuous improvement. The following performance control should be implemented:
CONTROL ON SALES:
Number of produced products
Number of retained consumers
Amount of revenue
Amount of recurring revenue
Competitive knockouts
CONTROL ON MARKETING:
Costumer Satisfaction
CONTROL ON DISTRIBUTION SERVICE:
On-time delivery
Orders shipped
Space utilization
Claims ratio
Monthly optimized cost savings
