FDNMARK-1

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Scenario

In 2020, the global pandemic happened. Thousands of businesses were affected by the massive economic impact
COVID-19 brought in. Multiple large companies and SMEs shut down their operation due to the loss of customers and
bankruptcy. Millions of people lost their jobs resulting in worldwide hunger, economic instability, and social disparities.

However in the Philippines, we have seen the rise of thousands of Small and Medium Enterprises during the high time of
the pandemic. The rise of multiple TikTok, Shopee, and Lazada stores proved that Filipinos have this economic resiliency
- finding creative ways to seize the opportunity to earn money. We've also seen an increase in food stores, dropshipping
businesses, live sellers, OEM sellers, etc.

Business
Tutti Frutti Enterprise was founded during the high time of the pandemic. Its owner Jeng had founded the business with
the idea to have multiple business lines under the main enterprise. Currently, she only has one business under it – Jeng
Bakes – a homemade cake and pastry store that creates personalized cakes and pastries for its clients.

Given the easing of restrictions and businesses going back to normal, Jeng needs some help in identifying how she could
further expand her business and earn more out of the Tutti Frutti Enterprise.

Environmental Situation

1. Tutti Frutti Enterprise is a sole proprietorship type of business. Jeng only has PhP 25000 cash on hand to
start her new venture. She only has 1 employee who helps her with the business.
2. Jeng has a background in baking and pastry, food and beverage, hospitality, managing a resort, rice
dealership, product importation, and dropshipping.
3. Jeng lives in Alabang, Muntinlupa City, where hundreds of SMEs were present
a. Within the 5KM radius there are 6 small cafes selling coffee, tea, and pastries. 10 milk tea shops
b. Within the 10KM radius there are 11 dropshippers present – selling Shein apparels, OEM
products from China, Medical Supplies, and does some liveselling via Shopee and Tiktok. Their
products are also available via FB Marketplace.
c. The total population within Muntinlupa alone is around 600k individuals while the nearby
municipalities of Las Pinas has 800k residents, Paranaque with 900k residents, Bacoor Cavite
with 400k residents, and San Pedro Laguna with 550k residents.
d. Majority of the population belongs to the Millenials and Gen Z population.
4. Tutti Frutti Enterprise have several social media accounts with an FB page with 25,759 followers, IG account
with 4768 followers, and a Twitter account 449 followers. Jeng plans to launch the business Tiktok account
however she doesn’t have enough time to create video contents. An average cost to pay for a video content
creator for tiktok is USD18 per 3min video.

Coffee Shop Offerings Dropshipping/OEM Milk Tea Shops


Ave. Mark Up Rate - Ave. Mark Up Rate - Ave. Mark Up Rate -
1000% 600% 1300%
Hot/Iced Coffee Beverage (Cafe Latte, Ukay Ukay Bales - P2000 - Across all products - P80 - P120
Capuccino, Americano, Caramel P13000
Machiatto, White Chocolate Mocha, Flat
White, Cafe Mocha) – P120 - P220
Hot/Iced Non Coffee Beverage Face Masks - P1000 - P2500 per
(Teas, Chocolate) P140 - P240 500 boxes contains 100pcs per
box
Ice Blended Beverages - P160 - P240 Home Improvement products
- P10000 per box of 50 items.
Pastries - P60 - P120
The Ask

Prepare a mini marketing plan out of the information given to you.

● For FDNMARK Students - based on the information given, you may proceed with the crafting of
strategic approach and tactical plans.

1. Product Decision
a. Ideation to full implementation
b. Why this/these products?
c. Product strategy every time the product moves along the Product Life Cycle stages.
2. Pricing Decision
a. Pricing Objective to be used and why.
b. Introductory Pricing Strategy to be used and why. When will you change your product price?
What are your basis when changing product price?
c. Recommended discounts and allowances if applicable.
d. Pricing strategy every time the product moves along the Product Life Cycle stages
3. Placement Decision
a. Recommended distribution path model and why.
b. Who are your proposed intermediaries, why? Example: FoodPanda and Grab for food and
perishable products, Shopee and Lazada for Non Perishable items, Brick and Mortar store
if you want to engage traditional stores like SST, local groceries, convenience stores, etc.
c. What are your proposed tasks for your intermediaries?
d. Placement strategy every time the product moves along the Product Life Cycle stages
4. Promotion Decision
a. Recommended Promotion Mix. Why is there a need for such promotional activity? What are
your insights about your target market? What is your target market’s profile?
b. What is your tagline? Identify 3 statements supporting your tagline.
c. Plans for each promotional activity
d. Promotion strategy every time the product moves along the Product Life Cycle stages
Brief history

In the wake of the global pandemic of 2020, Tutti Frutti Enterprise became an exemplar of the resilient nature of Filipinos.
Jeng established the company in the midst of the pandemic with the intention of pursuing several business segments. Her
business is prominent to consumers as "Jeng Bakes," which specializes in custom cakes and pastries. In the Philippines,
Small and Medium Enterprises (SMEs) have increased despite economic difficulties; these businesses are a reflection of the
entrepreneurial spirit of the people, especially on platforms such as Shopee, Lazada, and TikTok. Moreover , Jeng custom
pastries prides itself on having a strong market position, a lean cost structure, the potential to realize scale benefits, great
brand value, and a strong bank sheet. Additionally , Jeng Bakes, pioneered in isolation, cannot be held responsible for the
extent of its win over its rivals. The success of the business depends critically on Jeng Bakes' capacity to recognize the
products that its consumers find valuable and provide those benefits at a reasonable cost. Low year-round products like “
buy 1 take one ” and 50% promo discounts were one of Jeng Bakes key marketing ploys to draw in consumers. Most
Filipino consumers purchase customized cakes and pastries due to its affordability . The sole proprietor places a lot of
emphasis on giving its consumers access to affordable, healthy food and design options. Using biodegradable packaging
and assisting regional farmers and communities, it also places a strong emphasis on social responsibility and sustainability.

Problem
As pandemic restrictions ease and normalcy returns to business operations, Jeng faces the challenge of strategically
expanding Tutti Frutti Enterprise with a limited budget of PhP 25,000 and only one employee. The diverse background of
Jeng, spanning baking, hospitality, dropshipping, and more, presents an opportunity for multifaceted growth. Identifying the
most lucrative avenues in the post-pandemic landscape becomes
imperative to maximize the enterprise's potential and growth.

1. Product Decision
Tutti Frutti Enterprise ought to broaden its range of products by providing authentic specialty customized cakes , working
with nearby dropshippers, and investigating the craze for sweets . This plan is in line with Jeng's experience and the taste
preference of Gen Z and Millennials in today's generation.

A main factor influencing the supply-demand level of customized cakes and pastries in the Philippines is the
growing health consciousness in the country, boosting the food industry. Surveys have shown that Filipino consumers have
become more health conscious when making food decisions. This will drive the market to purchase home made cakes
instead of unhealthier options such as cakes in restaurants or other sweets. Another factor is the Filipino’s disposable
income. Discretionary income is expected to improve for the majority of Filipinos in the present years. This is good news,
considering it would mean higher end custom cakes would become more affordable for the target market. Seasonal changes
affect both the buying habits and availability of raw materials for baked goods . In the Philippines, the demand for cakes and
pastries tends to increase during the summer months when temperatures are high, and people are more inclined to
consume refreshing sweets and for those holidays and special occasions. The availability of fruits, vegetables, and other
ingredients used in customized cakes can affect the supply and price of the products. As the market for baked goods gets
more saturated, it might be difficult to stand out from the competition, which leads to having to advertise. The level of
marketing and promotion will influence awareness and demand for baked products. Lastly, consumer preferences have a
part in the supply-demand level. The ability to adapt to changing trends and preferences are needed in order to maintain
demand.

2. Pricing Decision

3. Placement Decision
The primary goal of proper distribution of products is to make clients aware of the presence and placement of the
items. Media sites will be your best go to place to market, advertise, and reach out to your target audience. By using social
media such as youtube, tiktok and facebook can generate interest and generate sales by promoting the product and creating a
page can also receive more feedback from past and recent customers. In this way, Jeng Bakes’ business will slowly make a
reputation itself while also gaining trust from customers. Jeng Bakes’ website will have two ways to distribute the product.
First, it began by distributing the products through a house to house delivery process, to fulfill customer satisfaction and
avoid wrong deliveries. House to house delivery process will surely create advantages to those consumers like receiving a
good item, fast response to concern about the item and so on. Jeng Bakes is open for those consumers near our location.
Additionally, free shipping is included so that the business can be transparent with the customers and also no hidden charges
will be applied to the customers which will surely lessen their bills . Second way of distributing the items is through motor
delivery services ( such as lalamove, foodpanda, Grab PH) . In this method, the shop will have more time on preparing the
product; checking some errors or misinformation before delivering to customers. Customers will lessen their concern about
being far and unable to go to our shop because we will provide an excellent and fast delivery process which fulfill their
demand.
4. Promotion Decision- cortez

For a business owner to know what kind of promotion mix to use, one should familiarize themselves with the
business they own. Since Jeng’s enterprise, Tutti Frutti Enterprise, is active on social media platforms and lives in a place
where her chosen business is common, advertising and internet or digital marketing are two recommended promotion mixes
to help with business recognition. Promotion activity is a must since there are multiple similar businesses that people already
know about, especially in Jeng’s area. If Jeng would not promote her business, there would be low chances of getting
consumers and could lead to the failure of her business. To know a business’ target market, the business owner should know
what kind of product they are offering and who would buy those products. With this information, it would be easier to
promote the business in order to know the theme that would match the taste of the target market. Tutti Frutti Enterprise
intends on putting up businesses that relate to Jeng’s background in terms of baking and pastry, food and beverage, and
dropshipping. These businesses often attract consumers who are students, employees, and parents.

After identifying the target market, it is important to think of a catchy tagline that would live in the minds of the
consumers for a long amount of time. Jeng’s enterprise aims to create multiple businesses, which is why the tagline should
be appropriate and applicable to all its potential business lines. In order to come up with a tagline that makes sense, it is
essential to know the similarities of the products being offered. Tutti Frutti Enterprise currently offers baked goods under
Jeng Bakes, and has the possibility to enter industries involving food and beverage as well as dropshipping. The similarities
of these businesses are all of them are go-tos of the general public, especially the aforementioned target markets who are
students, employees, and parents. Next important thing to do is knowing the traits, personality, and state of the consumers.
All students, employees, and parents usually go home from a tiring day or would need a day off to spend more time with
their families. This is why the proposed tagline for this enterprise is:

Draft
Plans:

Before promoting the business, the business owner must first know the theme of the business and the right colors to use in
order to surely gain the recognition of the consumers. Then, start small by first promoting the product to people near you.
Advertising your business by giving away brochures or putting up flyers could be a great help in getting the attention of the
consumers near where your business is located. Once the people familiarize themselves with the products, it could gain the
attention of the target market with the help of word of mouth. To make sure you achieve business recognition further,
applying the internet or digital marketing could make this possible. This is because one could put their business up in ads
and would be recommended to the users who might be interested in the products being offered by the business. Social media
apps use trackers and observe behaviors of their users to get to know them better, which is why the recommended section
always gets one’s attention.
Strategy:

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