Don Honorio Ventura State University

Graduate School Department

A Marketing Plan for

Submitted by:
Calma, Aaron
Mendiola, Amylou

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1. Executive Summary 4-5
2. Situation Analysis 5
2.1 Market summary 5-6
2.1.1 Market Segmentation 6
2.2 SWOT Analysis 6
2.2.1Strengths 6
2.2.2 Weaknesses 7
2.2.3 Opportunities 7
2.2.4 Threats 7
2.3 Competition - direct and indirect competitors 7-8
3. Objectives 8
3.1 Marketing objectives (Sales Volume, Price, Distribution, Marketing 8
Communications)
3.2 Financial objectives (Peso Sales, Profit) 8-9
4. Marketing Strategy 9
4.1 Target market 9
4.2 Positioning
4.2.1 Attributes Positioning
4.2.2 Price and Quality Positioning
4.2.3 Benefits Positioning 10
4.2.4 Competitor Positioning 10
4.3 Marketing Programs 10
4.3.1 Product/Brand 10-11
4.3.1.1 Source of Raw Materials 11
4.3.1.2 Quality Control and Food Safety 11
4.3.1.3 Tools and Equipment 12
4.3.1.4 Production Process 13
4.3.1.5 Label and Packaging 13
4.3.2 Price/Value 14
4.3.2.1 Pricing Objectives 14-15

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 4.3.2.2 Pricing Method/s 15
4.3.2.3 Pricing Strategy 15
4.3.3 Distribution/Value Chain 16
4.3.3.1 Place 16
4.3.4. Marketing Communications 16-17
4.3.4.1 Advertising 17
4.3.4.2 Sales Promotion 17
4.3.4.4 Public Relations 17-18
4.3.4.4 Word-of -Mouth 18
5. Financials 18
5.1 Sales Forecast and Projected Income Statement 18-21
6. Controls 21-22
6.1. Implementation 22-23
6.2. Contingency Plans 24-25

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Executive Summary
The plastic straws are one of the top 10 items found in our ocean. These straws
are non-biodegradable and over time it breaks down into tiny particles known
as microplastics that are 5 millimeters or smaller in length, making them difficult to clean
or filter from the ocean. It is polluting the oceans all over the world, interfering with
underwater ecosystems, killing sea animals, and more. If this crisis continues to happen
then we will be also next in line (Hirsh, 2019). In order to address the situation, the
House of Representative passes House Bill 9147 Single - use Plastic Products
Regulation Act which prohibits the production, import, and sale of many single-use food
packaging products. If this bill becomes a law, products such as straws and stirrers, will
be phased out within one year (Parkinson, 2021).

Increasing environmental concerns, joined with rising awareness of consumers

towards the ecological benefits of reusable straw have resulted in the surge in demand
both local and international. Based on the strict implementation of national and local
government regulations against the consumption of single-use plastic. Sip N’ Grow is an
eco-friendly alternative biodegradable straw that is plantable after usage for a
reasonable price.

The Sip N’ Grow aims to capture a large market share in the biodegradable straw
industry most specially it’s the one and only producer of biodegradable and plantable
straw in the Angeles City and even in the entire country. The strong brand quality and
affordable price puts the product into competitive advantage among existing suppliers in
the market. The selling price per piece amounts Php. 2 which the company uses
penetration pricing strategy to capture the market.

Sip N’ Grow uses firmographic segmentation wherein the target market is

determined by classifying business establishments in terms of 1. Type of industry such
as restaurants, fast-food chains, milk tea shops, coffee shops and street food stalls, 2.
barangay location, this includes the 33 barangays in Angeles City, 3. Size, whether
micro, small, medium and large enterprise. This practice can help guide marketing,

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advertising, and sales by providing deeper business insights and ultimately lead to more
focused and effective campaign strategies.

The marketing strategy of Sip N’ Grow will be focusing on establishing product

awareness among its segment by optimizing different marketing efforts highlighting the
information, benefits and competitive advantage of the product that can turn into
generated sales and attaining the goals of the business

2.0 Situation Analysis

The market growth for drinking straw is driven by the blooming food and
beverage industry in the Angeles City with the ever-changing consumers preferences
and tastes which has led to the customization of the food and drinking business. Market
is witnessing the increase in the number of both local and international restaurants,
hotels, milk tea shops/kiosks, fast food chains and coffee shops which are increasing
the demand for drinking straws.
Growing concerns regarding the usage of the environment friendly products are
increasing the demand for eco-friendly, natural & organic and reusable straws. Angeles
City Mayor Carmelo Lazatin Jr. has ordered the reduction in the use of plastic products
and bags in the city to help save the environment and in relation to the "Refill
Revolution" program of the Department of Environment and Natural Resources–
Environmental Management Bureau (DENR-EMB), which was delegated to the City
Environment and Natural Resources Office (CENRO) (Navales, 2019). Sip N’ Grow
Company is offering an innovative solution by introducing a biodegradable straw that
can be planted after use first in the city and country. The Sip N’ Grow provides safe and
natural straws to serve individuals enjoyment in drinking their cold beverages and at the
same time lessen plastic pollution and promotes a sustainable ecosystem.

2.1 Market Summary

The Sip N’ Grow company is a start-up enterprise planning to operate in
Angeles City to provide consumer convenience along with environmental sustainability.
Angeles City is known for its gastronomic wonders brought about by the diverse food &

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beverage establishment. The company would like to provide eco-friendly straws
combined with stylish trends for freestanding and inside the mall restaurants, coffee &
milk tea shops, and fast-food chains.

2.1.1 Market Segmentation

Market segmentation is a business practice that divides their target
market into smaller, more manageable groups of people with similar characteristics to
which their marketing, advertising, and sales efforts are focused (Tow, 2021).
Sip N’ Grow uses firmographic segmentation wherein the target
market is determined by classifying business establishments in terms of 1. Type of
industry such as restaurants, fast-food chains, milk tea shops, coffee shops and street
food stalls, 2. barangay location, this includes the 33 barangays in Angeles City, 3. Size,
whether micro, small, medium and large enterprise. This practice can help guide
marketing, advertising, and sales by providing deeper business insights and ultimately
lead to more focused and effective campaign strategies.

2.2 SWOT Analysis

The SWOT Analysis is a tool the company can use in order to evaluate the
competitive advantage of the organization by determining the strength, weakness,
opportunity and threat.

Strengths
⮚ Product Price & Quality. The product per se is a strength of the business
for its new and superb quality with affordable price.

⮚ Promotional Strategies. With respect to the business’s competitors, the

firm could safely say that its promotional activities are far better than the
others. As it will be performing its marketing activities both in traditional
and modern ways specially optimizing the use of different social media
platforms.

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 ⮚ Distribution Channels. The company uses different distribution channels
such as social media, couriers, partner stores and partner stores to cater
to the target market.
⮚ Store Location. The business operates in the location near the target
market.
Weaknesses
⮚ Low product awareness. The product is only new to the market hence the
product awareness is still low.
⮚ Limited market. Related to the low product awareness, there may be a
limited market who would want to consume such a product.
Opportunities
⮚ Selling in Online Selling Platforms - With the advent of technology and
shifting paradigm for online shopping it will be a great opportunity to sell its
product to the major online selling platforms known by the market it
serves.
⮚ Changing customer preference - With a lot of alternatives that consumers
are considering, it will help the business to capture the changes in their
preference when it comes to their choice of biodegradable straw.
⮚ Expanding the Market Reach - Opening new stores to other cities that will
enable the business to capture additional consumers.
⮚ Government Regulation - Passing the House Bill 9147 Single - use Plastic
Products Regulation Act into law will increase the demand for the product.
Threats
⮚ Possible new entrant in the market - Since it is perceived to have an
increase in demand.
⮚ Availability of substitute products -there were a lot of substitute products
available in the market.

2.3 Competition
The competition section of a marketing plan is a vital component to
demonstrating viability. It shows a company's awareness of its competitors and

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understanding of the marketplace. Sip N’ Grow recognizes the demand and stiff
competition in the biodegradable straw and reusable straw.
2.3.1 Direct Competitors and Indirect Competitors
Sip N’ Grow is a new product in the market and it has no direct
competitors in terms of producing biodegradable and plantable straw in the city but
there are a lot of local and online suppliers that offers biodegradable and reusable straw
such as paper straw, hard plastic straws, aluminum straws, bamboo straws, silicone
straws and edible straws. These suppliers also offer alternative product for using straw
like cups with slipping lids.

3.0 Objectives
3.1 Marketing Objectives
Sip N’ Grow’s marketing objectives are made up of smaller and shorter-range
steps to reach the longer-term and goals of marketing which includes the following:
➢ To raise awareness to target & potential market through social media advertising
and traditional promotional strategies.
➢ To sell a total of.1,000 packs per month for the starting one-year operation.
➢ To increase sales up to 10% every month.
➢ To create awareness to nearby cities and provinces through different social
media platforms.
➢ To tie-up with 2 online sellers and every month

3.2 Financial Objectives

Sip N’ Grow’s financial objectives thrive not only to improve a company's
financial well-being but also guide its efforts and ensure it has enough funds to
operate smoothly. These goals can be classified into several categories, such as
profit maximization, value maximization, increased sales and more which includes
the following:
➢ To generate a total sale of 100,000 pesos with a net profit of 30,000 for the first
month of operation.
➢ To increase sales up to 10% for the succeeding years

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 ➢ To increase 10% of the net profit every month for Year 1
➢ High returns on investment capital
➢ Bigger Cash flow

4.0 Marketing Strategy

The marketing strategy of Sip N’ Grow will be focusing on establishing
product awareness among its segment by optimizing different marketing efforts
highlighting the information, benefits and competitive advantage of the product that can
turn into generated sales and attaining the goals of the business.

4.1 Target Market

Sip N’ Grow aims to address the growing concerns regarding the usage of
the environment friendly products and increasing the demand for eco-friendly, natural &
organic and reusable straws. The target market would include the following restaurants,
fast-food chains, milk tea shops, coffee shops and street food stalls located in the 33
barangays of Angeles City, Pampanga.

4.2 Positioning
Sip N’ Grow product contains three A’s namely Accessibility, Affordability
and Availability which satisfy the demand for environment friendly biodegradable and
renewable products with innovation to address the alarming crisis regarding climate
change and water pollution brought about by single use plastic straw.

4.2.1 Attributes Positioning

Sip N’ Grow is an environmentally friendly biodegradable, durable
and renewable product with innovation. The product offers a solution for today’s crisis
regarding water pollution which is brought about by single use plastic straw. It has a
variety of seeds such as tomato, lettuce and spinach that can be planted right after
using it.

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 4.2.2 Price and Quality Positioning
The company uses penetration pricing which is setting the price
lower than the competitors to gain a market share. Sip N’ Grow offers upscale and
affordable products first in the city and country which gives the company a competitive
advantage among the existing products out in the market.

4.2.3 Benefits Positioning

Sip N’ Grow serves individuals enjoyment in drinking cold
beverages and at the same time removes the guilty feeling in being a contributor to
plastic pollution of our country and It also promotes sustainable ecosystem by planting
the straw after using it.

4.2.4 Competitor Positioning

Using competitors as a reference to differentiate a product is
another type of positioning. Positioning a product against competitors is an obvious
challenge on quality and asserts that the product is superior and with a competitive
edge. This is where Sip N’ Grow boost its unique product features that not only lessen
plastic pollution but also promotes ecological sustainability by the grow feature of the
biodegradable straw.

4.3 Marketing Programs

Marketing programs are the set of activities designed by the company to achieve
their goals for their business. Marketing programs should be well designed and carefully
planned to fit the company’s goals and objectives. For Sip N’ Grow the most effective
strategy is the one that could help achieve their goals as cost-effectively as possible.

4.3.1 Product/ Brand

Sip N’ Grow is a company that aims to help in the elimination of waste
management by designing an eco-friendly product. Its main goal is to make the
disposable into plantable. For their first product, they will be selling biodegradable
straws that are plantable after use at a reasonable price. The biodegradable straws are

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made from discarded rice husks and straws, bound together by cornstarch and
melamine for waterproofing and safe consumption. To make the straws plantable,
approximately 5 seeds will be added in each straw. The straws are at a reasonable
price to reach a wider range of consumers especially the students. To grow their
business, the company is planning to produce more variations of plantable products.

4.3.1.1 Source of Raw Materials

Rice husks are the outermost layer of rice grains which are
separated during the milling process. The company will be looking for a farmer or
farmers primarily in Nueva Ecija that could directly supply them the rice husks needed
for the production of the straws. The company is planning to use tomato seeds, lettuce
seeds, spinach seeds, they will be looking for a partner like the city agriculture office
that could give them the best quality of these types of seeds. For the corn starch,
melamine, straws and food color, these materials are available in the local supermarket
or the company can look for direct suppliers also for lower costs.

4.3.1.2 Quality Control and Food Safety

A good product depends on the quality of its raw materials. Sip N’
Grow will make sure that the raw materials being handed to them by the suppliers are of
good quality. The company will also prepare a written or documented manufacturing
process for the production of straws for consistency.
As we all know we are currently in the pandemic, the company will
make sure to follow the health protocols and guidelines to ensure safety for the workers
and the consumers.

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 4.3.1.3 Tools and Equipment

Extrusion and
Cutting Machine

Hydraulic Press

Rice Husk Powder

Making Machine

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 4.3.1.4 Production Process
1. Grinding of rice husks with the help of the powder making machine.

2. Put the powdered rice husk, corn starch, melamine, food coloring and
seeds in the hopper of the making machine. The making machine will mix and mold
these raw materials to form straws. The molten straws are squeezed out through a
series of small holes at the other end.

3. For the last steps, the finished products will be put in a hydraulic press
for packaging.

3. Lastly, the straws will be placed in a hydraulic press for individual

packaging.

4.3.1.5 Packaging and Labeling

Label

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 Packaging
Packaging and design are one of the keys to attract consumers to
buy your straws. The eco-friendly straws itself will either be green or black in color. But
the straws will be individually packed in a paper-based packaging. In the lower back of
the paper-based packaging is the instructions on how to plant the straws afterwards.
Written also there are their social media accounts for their queries and additional
information.

4.3.2 Price/ Value

Price has a direct effect in a business, this can contribute to the success
or demise of a specific product. The price of a product must cover all the costs incurred
during the production. Pricing is very important, because this is one of the factors that
consumers consider in buying a certain good or service.

4.3.2.1 Pricing Objectives

The pricing objective of Sip N’ Grow is to offer the straws at a
lower price compared to their competitors. Being new to the market, it is very important
for Sip N’ Grow to promote and be known to the public. To achieve this, the company
will be offering their straws at a lower price to the restaurants and food and drink
providers for them to be convinced in trying the new straws. While convincing these

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restaurants, the company also makes sure that their low-cost products are not low in
quality, in fact their products are of good quality with good purpose.

4.3.2.2 Pricing Methods

Table 1

Note: 1 pack contains 50 pcs of eco-friendly straws

4.3.2.3 Pricing Strategy

The Cost- Plus or Markup is the pricing strategy that Sip N’ Grow
will use in pricing its products. The markup is based on the cost of goods sold which
includes direct costs, indirect costs and overhead costs. Since the company is just
starting and gaining its position in the market, the company will add a markup cost of
30%. When the company is established and was able to gain the trust of their
consumers, the company will increase the markup cost. The higher markup will help the
company expand and think of new variations of plantable products.

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 4.3.3 Distribution and Value Chain
Distribution Channels are the path that the goods take from their
manufacturers or providers to the consumers. Companies use different types of
distribution channels so that their products can reach the consumers as soon as
possible. A company has a choice to provide their products directly to their consumers,
or they can look for partners that will help them distribute these products. Distribution
partners can be the wholesalers, retailers or brokers.
Sip N’ Grow will have a physical store wherein the consumers can buy
their products. Aside from their physical store, the company will also use indirect
distribution channels namely social media, partner stores, wholesalers and retailers.
The company will be posting their products in their different social media accounts to
reach online buyers and the products will be delivered through the courier JRS express.
Sip N’ Grow will also look for partner stores, primarily the eco-friendly stores.
4.3.3.1 Place

4.3.4 Marketing Communications

Marketing Communications are the techniques used by businesses to
communicate and promote their products or services to the market. Businesses use a
lot of strategies or different types of marketing communications on how to promote their
products and convince the consumers to buy them. Good marketing communications is

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a big factor for the company to earn more sales and be known to the public. For Sip N’
Grow, the company will use Advertisements, Sales Promotion, Direct Selling, Public
Relations and Word-of-Mouth

4.3.4.1 Advertising
Advertisement is the most effective way of promoting your
products. Sip N’ Grow will advertise its eco-friendly straws through social media and
online stores. Social media nowadays is one of the most effective ways in promoting
your products. Through their Facebook account, Sip N’ Grow will be posting about their
eco-friendly straws, its use and purpose. The company will also pay for Facebook
Advertisements to reach a wider range of consumers. Sip N’ Grow will also take
advantage of YouTube, wherein they will be looking for famous vloggers to review, try
and review their eco-friendly straws.
Sip N’ Grow will also use online stores like Lazada and Shopee to
make their products public known. These online stores provide an online selling
platform to endorse your products. Sip N’ Grow will take advantage and try this platform
to promote their products and reach a bigger and different types of consumers.

4.3.4.2 Sales Promotion

Sales promotion is a strategy wherein the company uses short term
campaigns to get the attention of the consumers. Sip N’ Grow as a starting company
can use this technique to attract the consumers to try on their product. The company will
use the following sales promotion:
● For the restaurants and drink providers, the company will be giving free
samples and will give these establishments a discounted price for their first
purchase.
● 5% discount for the individuals who will buy 3 more packs of straws.
● For the first three months, Sip N’ Grow will be giving a free delivery with a
minimum spend of 500 in their online stores.
● Flash sale in Lazada and Shopee
● Giveaways for the first 10 Facebook users who shared their Facebook Page

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 4.3.4.3 Public Relations
Public Relations is marketing communication used by businesses
to maintain a positive reputation of the brand and maintain a good relationship
with the public, prospective consumers and partners. Sip N’ Grow will
continue to spread their advocacy in eliminating waste management and
promoting sustainability. The company will also join Eco and Sustainability
Organizations in the Philippines. Lastly, Sip N’ Grow will continue supporting
the local farmers of the Philippines.

4.3.4.4 Word-of-Mouth
Customer Reviews are one of the biggest factors that could
influence the decisions of the prospective customers. Through their social media
account, Sip N’ Grow will be posting the feedback of their previous customers as well as
the reviews and comments from their online store (Lazada and Shopee).

5.0 Financials
Financial Forecasting is the process of estimating and predicting on a how
company will perform in terms of income and expenses. Financial forecasting helps the
company in planning their next steps and often reduces business risk. Sip N’ Grow will
make use of their projected financial statements to measure their actual performance.
Through this Sip N’ Grow will now if they were able to achieve their goals and if not they
can think of new strategies to improve performance.

5.1 Sales Forecast

Sales forecasting is the process of estimating the future revenue by
predicting the cost of materials, cost of labor and quantity of the products to be sold.
Sales forecast is a projected measure of how a market will respond to a company’s go-
to-market efforts.

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 Table 2 FOR YEAR 1
SALES FORECAST
Quantity Selling
Month Total
(Packs) Price
November 47 100.00 4,700
December 52 100.00 5,170
January 57 100.00 5,687
February 63 100.00 6,256
March 69 100.00 6,881
April 76 100.00 7,569
May 83 100.00 8,326
June 92 100.00 9,159
July 101 100.00 10,075
August 111 100.00 11,082
September 122 100.00 12,191
October 134 100.00 13,410
Total
Sales 1,005 100.00 100,506

Note: 1 pack is equal to 50 pcs eco-friendly straws

Table 2 illustrated the sales forecast formulated by Sip N’ Grow. Sip N’

Grow’s sales forecast is based in their marketing objective to sell almost 1000 packs of
straws for the first year. For their first month the company sold 47 packs of straws, and
this increases approximately by 10% for each succeeding month. For the first 12
months the company will earn 1005 packs of straws. With the selling price of P100, the
company will earn P100,506 for their first year of operations.

Table 3

Sip N' Grow's Projected Sales from Year 1 to Year 3

Year 1 Year 2 Year 3
No. of Packs Sold 1,005 1,155 1,386
Selling Price 100 115 120
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Total Sales 100,500 132,825 166,320
 Table 3 shows the projected sales of the company for three consecutive
years. As mentioned, for their first year in the market, the company will approximately
sell 1005 packs of straws. The number of packs sold will increase by 15% for the
second and third year. The selling price of one pack of straw will also increase by 15
pesos for second and third year to cover additional expenses. The company predicted
that in case the prices of their raw materials increased because of inflation, they have
the means to avail and cover additional expenses. The increase in selling price will also
help the company to expand and think of new ideas to produce more plantable
products.

Table 4

Sip N' Grow's Projected Cost of Goods Sold

Year 1 Year 2 Year 3
Units Sold 1,000 1,155 1,386
Direct Materials
35,730 41,268 49,522
@35.73 per pack

Direct Labor
15,000 17,325 20,790
@15 per pack

Overhead
17,000 19,635 23,562
@17 per pack

Packaging
@9.20 per pack
9,200 10,626 12,751

Total Cost of Goods

76,930 88,854 106,625
Sold
Table 4 is the illustration of Sip N’ Grow’s cost of goods sold for the first
three years. Cost of goods is composed of the Direct Materials, Direct Labor, Overhead
and Packaging costs the company will incurred in producing their eco-friendly straws.
The Direct Material cost the total amount of the raw materials; 0.03 for 400 grams of rice
husks, .05 for 305 grams of corn starch, 50 pesos for the straws and 300 pesos for the
seeds.

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 Table 5

Projected Income Statement for Sip N' Grow from Year 1 to

Year 3
Year 1 Year 2 Year 3
Sales 100,500 132,825 166,320
Less: Cost of Goods Sold 76,930 88,854 106,625
Gross Profit
Less: Operating Expenses 10,560 10,700 10,950
Net Income 13,010 33,271 48,745

For the table 5, this shows the Projected Income Statement of Sip N’
Grow. Income statement is a financial statement that shows the income and expenses
of the company. For Sip N’ Grow, with 1005 packs of straws the company will earn a
gross sales of 100, 500 and a net income of 13,010. Net income is the result when the
cost of goods sold and operating expenses are deducted in the gross sales. Operating
expenses includes are the expenses that Sip N’ Grow will incur for its normal
operations. For the second year the company’s income statement will increase by 155%
due to the increased price and increase in the number of the products sold. And for the
third year the sales increased by only 46% because of the lower increase of selling
price compared to the first and second year.

6.0 Controls
Goals and objectives are the desired outcome and specific actionable targets
that a company wants to achieve. Setting goals is important for a company, because
these goals will set as a guide for the whole organization on what path they are going to
take. The goals and objectives of the company will be the basis on what kind of
strategies they need to design and how to implement them. For Sip N’ Grow, they have
set clear goals and objectives and that is to provide a straw that could help the
environment and promote sustainability.

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 To be able to achieve their goals and objectives, Sip N’ Grow adopted a
marketing control process that could help them measure their performance and
marketing activities. The main purpose of these marketing controls is to keep Sip N’
Grow’s activities on track with their goals and objectives. Through marketing control the
company will know if they were able to achieve their desired goals and if not, these
controls can help the company apply the corrective measures to improve performance.
Below is the control process that Sip N’ Grow adopted.

6.1 Implementation
Marketing implementation is the part wherein the ideas and visions will
turn into reality and actions. It is the process of forming a team or group to execute the
marketing plan. A perfectly designed marketing plan has no use without good
implementation strategies. Without the implementation strategies, the team will have no
idea on what tasks to implement, how to implement them and when these tasks are
due. Below are some of the Implementation strategies that Sip N’ Grow will use to help
them successfully execute their marketing plan.

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 ● Setting Realistic Goals: The goals of Sip N’ Grow cannot guarantee their
success, instead these goals will only serve as a guide for them to achieve
success. Sip N’ Grow made sure that they designed realistic and
achievable goals and objectives. These realistic goals can help their whole
company, especially the workers to be more efficient and motivated to
achieve those goals.
● Reliable Resources: Sip N’ Grow will be looking for local farmers that
could regularly supply them the best quality of materials they need in
making their eco-friendly straws. Aside from the suppliers, the company
will also look for competitive workers to maintain the quality of their straws.
Lastly, to be able to sustain the company and be able to expand, Sip N’
Grow will be looking for investors that are willing to take risks in their
advocacy.
● Monitoring Progress Regularly: Regular monitoring is one of the
strategies that Sip N’ Grow will apply. It involves tracking the progress of
the company; if they were able to achieve their quota or target sales.
Monitoring includes also checking if the employees are effective and were
able to perform their assigned tasks on the given timeline or deadline.
Through this the company will know if there needs to be improved.
● Customer Feedback: One of the keys to success of Sip N’ Grow is
through the feedback, opinions and suggestions of their consumers.
These feedback could serve as a guide for the company to do better and
improve their performance. In cases, wherein the company received a
complaint, the Sip N’ Grow will make sure to take corrective actions to fix
the matter. These complaints must not be neglected, because these could
give the brand a bad impression.
● Adaptive: Not all the time Sip N’ Grow will achieve its goals or target
sales. The company must be able to adjust and adapt new ideas on how
to market their product to increase sales. Also, with the changing demand
of the consumers Sip N’ Grow must be able to give what the consumers
need and want in order for them to continuously patronize the products.

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 Sip N’ Grow should learn how to innovate and think of new ideas to adapt
to the needs of the customers.

6.2 Contingency Plan

Contingency planning is a proactive process of creating coordinated
courses of action to help the company address identified risks or problems in the future.
These plans shouldn’t only focus on unlikeable situations, these plans also apply to
scenarios favorable to the company. Contingency plans consist of the strategies that the
company uses during the good and bad times. Below are the contingency plans that Sip
N’ Grow formulated to help their company.
● Natural Disasters: Natural disasters like typhoons can greatly
affect the operations of Sip N’ Grow, since most of its raw materials
are agricultural products. Typhoons have the tendency to destroy
the crops of the local farmers, because of this the farmers will not
be able to supply the raw materials needed by the company. Sip N’
Grow will look for alternative suppliers that could give them the
materials needed in times like this.
● Dissatisfied Customers: Sip N’ Grow knows that they cannot
please every consumer, there will be times wherein the customers
are not satisfied. To deal with unhappy customers, Sip N’ Grow will
make sure to adjust to the wants and suggestions and try to give
what the customer wants. The company can make compromises to
turn the unhappy customers to happy and contented customers.
Sip N’ Grow will make sure not to neglect customer feedback for
this are their guide and opportunity to learn, innovate and improve
their brand.
● Human Resource: Employees are the best asset of the company;
a company should make sure to consider the needs of their
employees. It is important that the employees are happy and

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 content with their work. Unhappy employees are unproductive and
may affect the whole organization. In cases wherein some
employees have a problem with their specific role in the company,
Sip N’ Grow will form a team to handle this kind of situation. The
company will make sure to hear out their employees’ side and take
corrective actions, because Sip N’ Grow treasures their employees
and these employees are one of the keys to their success.
Competition: To deal with their competitors, Sip N’ Grow will
make sure to provide the best quality and unique type of straws at a
reasonable price. Aside from this Sip N’ Grow will boost its
advertising methods through the help of Social Media. Also, the
company will give promotional discounts to attract more customers.

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