CHAPTER 2

MARKETING ASPECT

2.1 Marketing Objectives

This section tackles the presentation of the market situation specially the market

research, market plan, and market strategies. Specifically, under the marketing

component, Shangheart Manufacturing Enterprise. identified the following objectives:

1. To position itself as the leading manufacturer of lumpiang shanghai in Lemery

Batangas;

2. To offer an excellent and an innovative product lumpiang shanghai to the

customers;

3. To provide an authentic lumpiang shanghai to the locals of the municipality

and to the neighboring areas in Batangas; and

4. To create a product that will maximize the customer’s value for money.

2.2 Market Description

At the initial phase of operation, Shangheart Manufacturing Enterprise. will

produce the “Shangheart Meat and Tuna Fish.” Lumpiang Shanghai is basically a

known product in the municipality; however, it is given value addition by using a tuna

fish and meat for the shanghai to add more flavors and be incredibly unique to the

market. Therefore, the product will be a tasty one.

Shangheart Manufacturing Enterprise came up with this innovative product

because it aims to mainstream once again the ordinary lumpiang shanghai not just in
the municipality but also to other neighboring areas in the province by introducing the
different ingredients to be added in the product, as well as intending the use of this
product to inform people that they can use a tuna fish in making this kind of product.
The business does not only look into generating income, but it also desires to innovate
and make a unique product that will introduce our municipality and how the people of
Lemery are creative in efficiently using its’ resources.

2.3 Company’s Vision

Shangheart Manufacturing Enterprise envisions itself to be the leading enterprise

in Batangas that produces authentic signature home-based food products.

2.4 Company’s Mission

It is the mission of Shangheart Manufacturing Enterprise to establish a socially-

responsible enterprise that produces high quality food products to satisfy customer

preferences and maximize the customer’s value for money.

2.5 Values

1. Quality: Foster high level of quality in its products

2. Innovation: Open to creativity and innovation

3. Value Creation: Maximize value for money creation to customers

4. Integrity: Strong inclination to doing what is right when no one is looking

5. Socially responsible: Advocates for sustainable development

6. Continuous Development: High regards to improvement

7. Employee friendly: Support the well-being of the employees

2.6 Methodology

The proponents decided to use ingredients such as the combination of meat and

tuna fish which is less expensive and tastier than the ingredients used in the common

lumpiang shanghai existing in the market. Additionally, it will have other ingredients to

be added, the secret seasonings to be specific, which aims to produce a delicious

shanghai that will give you the feeling of fall in love again. In love by how this shanghai

mouthwatering is. Meanwhile, the proponents of this business plan used the ordinary

face-to-face conversation interview (following the safety protocols), and online meeting

with their friends and other students to know the market needs and wants. They also

conducted researches about existing seller of the Lumpiang Shanghai to have a

comparative analysis and learn about the different processes needed to establish the

proposed business.

2.7 Historical Demand

YEAR POPULATION % OF DEMAND DEMAND

2017 90,105 55% 49,558
2018 91, 204 60% 54,722
2019 93,003 65% 60,452
2020 93,186 70% 65,230

The population used as basis for demand was gathered from the census-record of
the Municipality of Lemery, Batangas in accordance with Wikipedia. The % of demand is
based on result of the survey and is being multiplied to the population to arrive at the total
demand.

2.8 Projected Demand

YEAR POPULATION % OF DEMAND DEMAND

2021 93,200 60% 55,920
 2022 94,628 65% 61,508
2023 95,072 65% 61,797
2024 97,179 65% 63,166
2025 100,223 70% 70,163

 From the population, the proponents got the average percentage of increase in population
per year then apply it to the present year up to the projected year to get the population for
projected demand. The % of demand is based on result of the survey which is being
multiplied to the population to arrive at the demand per year.

From the data of historical population, the proponents got the average percentage of increase
2.9 HISTORICAL SUPPLY

YEAR POPULATION % OF DEMAND DEMAND

2017 90,105 55% 49,558
2018 91, 204 60% 54,722
2019 93,003 65% 60,452
2020 93,186 70% 65,230

 From the data of historical population, the proponents got the average percentage of
increase in population per year then apply it to the present year up to the projected
2.10 PROJECTED SUPPLY
year to get the population for projected demand. The % of demand is based on result
of the survey which is being multiplied to the population to arrive at the total demand
per year.

2.10 Projected Supply

YEAR POPULATION % OF SUPPLY SUPPLY

2021 100,480 85% 85,408
2022 102,999 85% 87,549
2023 103,393 85% 87,884
2024 104,932 85% 89,192
2025 106,789 85% 90,771
.
 From the population, the proponents got the average percentage of increase in
population per year then apply it to the present year up to the projected year to get the
population for projected demand. The % of demand is based on result of the survey
which is being multiplied to the population to arrive at the demand per year.
Table 2.11 Projected Sales

YEAR POPULATION AMOUNT SALES

2021 85,408 Php 10.00 854,080

 From the population, the proponents used year 2022 since the current year is
2021. The price of Shangheart is amounting to Php 10.00 per piece The
proponents have the power to meet these projected sales.

2.12 Marketing Plan

The proponents come up with this kind of products in business world because

they wanted something unique in this world of business although Shangheart Meat and

Tuna Fish may be a common product but the company gave it a twist. The concept of

this is based on the customers wants and needs to help them eat more nutritious

product. The main objective of this study is to create a new product to offer in customers

to be able to surpass their own needs and wants. This study also shows the

presentation of the financial and income statement to clearly show the resources of the

business and its capital. The researchers also show on how to establish a good pricing

strategy to be affordable to customers. The researchers also show the SWOT analysis

to discuss the strength and weaknesses of the business.

2.13 Marketing Strategies

The Shangheart Manufacturing Enterprise will use flyers as well as used different

social media to persuade customers and present their product. They will create a page

on Facebook because most of the target markets were using it. Through this, it will

catch the attention of the customer/consumer at affordable cost. The proponents

believed that having good communication with the prospective customers should be

established, and in doing so making use of networking sites will be of big help in

promoting the business.

2.14 SWOT MATRIX

STRENGTHS WEAKNESSES
SHANGHEART
MANUFACTURING - strong relationships with - access to additional
ENTERPRISE suppliers that offers operating capital;
flexibility, and response to -revenues in the industry
special requirements; are cyclical; and
- ingredients are reachable - lack of formal training of
and easy to find; the entrepreneurs
-it requires a low capital for
the production of the
product; and
-possess healthy
ingredients.
OPPORTUNITIES Strengths and Weaknesses
Opportunities and Opportunities
- increase in higher income
of target market; S1, O1- The company will W1, O1- The company will
- sales tied to economic rapidly increase its make promotional ads to
growth; production to meet the penetrate the market.
- gain more recognition in demand. W2, O2- The company will
the market; and S4, O2- The company can conduct research and
- great chance to innovate sustain the needs of the development for the
the product consumer. product improvement.
S2, O1- More consumer
patronizes the Shangheart
Meat and Tuna Fish due to
 its health benefits.
S3, O1& O2 – Due to its
competitive prize it will get
a higher market share from
its expected shares.

THREATS Strengths and Threats Weaknesses

and Threats
- Local and emerging T1, S1- The company will
competitors improve its marketing T3, W2- The partners will
- Addition of other related strategies to get the target focus on managing the
potato balls products market. business operation and
T2, S4- The company will foster their knowledge on
improve the production managing it.
process of the company.
2.15 PORTERS ANALYSIS
 Threat of New Entry
Not too expensive to enter
the industry experience
needed, but training easily
available some economies
of scale some cost benefits
if in the business for some
time no technology
protection low barrier
entry

Buyer Power
Supplier Power Competitive Rivalry
Few, large supermarkets
Moderate number of Very many competitors may be co-operatives?
commodity products low
supplier suppliers large switching cost low Very large orders
Similar products able to customer loyalty high homogeneous product
substitute neutral supplier cost of leaving market extreme prove sensitivity
power overall ability to substitute high
buyer power

Threat of Substitution
Some cross-product
substitution ability to
import jewelry some
substitution.

Figure 2.1
2.16 TARGET MARKET

The target market of the Shangheart Meat and Tuna Fish is mainly the locals and

vicinity of the municipality of Lemery. Since lumpiang shanghai is a well-known product,

it is view that the people will also have a high acceptability for this new develop

lumpiang shanghai. Plus, the market of Shangheart Manufacturing Enterprise includes

the neighboring municipalities of Lemery in the area like Taal, Calaca, San Luis, etc.

2.17 ADVERTISING MATERIAL

BUSINESS LOGO

Figure 2.2

2.18 Business Card

CONTACT US!
09975225496
[email protected]/[email protected]
Address: Rajah Matanda St. Bagong Sikat, Lemery,
Batangas
 Figure 2.3

2.20 BUSINESS TAG LINE

“FELL IN LOVE WITH SHANGHEART”

2.21 PROPOSED SHOP SITE

(lagyan nyo na lang pic ng kahit kaninong bakuran ng bahay senyo)

Figure 2.4

Since the Shangheart Manufacturing Enterprise is a start-up business, the proposed

shop site will be located at the vicinity house of one of the partners of the business. This

will be a great way to lessen expenses and achieve the target sales of the proposed

business plan.
2.22 BUSINESS PRODUCTS
 Figure 2.5

2.24 Business Product Quote

Figure 2.6
2.25 Business’ Flyers