CHAPTER II

MARKETING ASPECT

The marketing aspect encompasses the various activities involved in

promoting, selling, and distributing a product or service. It includes developing effective

strategies to raise awareness among consumers, ensuring the products are easily

accessible for purchase, and implementing promotional campaigns to attract customers.

This aspect also involves product development, pricing strategies, selecting appropriate

distribution channels, and executing marketing plans to achieve business goals.

PRODUCT NAME

The product name “Tofu Balls” was chosen to highlight the main ingredient

and the form of the product. “Tofu” indicates that the product is made from tofu, which is

a healthy, protein-rich soy product. The term “Balls” describes the shape of the product,

suggesting that it is bite-sized and easy to eat. The proponents chose this product name

because it’s easy to remember and its not to long to pronounce.

PRODUCT DESCRIPTION

Tofu Balls are bite-sized, measuring approximately 1.5 inches in diameter.

They have a crispy exterior and a soft center infused with fresh carrots and green onion

leaves. Fresh tofu is blended with finely chopped carrots and green onion leaves,

season with spices and herbs, shape into balls, fry until golden brown and crispy, They

offer a delicious blend of freshness and crunch in every bite.

QUALITY DIMENSION

The Tofu Balls are tasty snacks in the texture of crispy surface and a soft

inside. They’re made from fresh tofu blended with carrots and spring onions, seasoned
just right. These tofu balls are rich in protein and fiber, making them perfect for a quick

and satisfying snack. When refrigerated, they last 2-5 days. Cooked Tofu Balls can be

reheated by baking or frying until heated through, while uncooked tofu balls can be

cooked by frying or baking until golden brown and crispy.

USES OF THE PRODUCT

Tofu Balls are made to satisfy people’s food cravings. They’re great for a snack

when you want to try something new during your break. You can also enjoy Tofu Balls for

breakfast or as an afternoon snack. Additionally, they are suitable for dietary and

vegetarian preferences.

USER OF THE PRODUCT

The consumers of the product come from different segments of society. People of

all ages can enjoy the product as an alternative dietary or afternoon snack. The

proposed product is particularly suitable for budget-conscious consumers who seek a

high-quality, tasty, and healthy snack.

GEOGRAPHICAL DISTRIBUTION

The Tofu Balls is perfect snack on the go or enjoying with friends and family,

these tofu balls are surely to satisfy while supporting local producers. The geographical

distribution of the proposed product will be the residents of Lemery Batangas.

CHANNEL OF DISTRIBUTION

A distribution channel is a pathway or route through which goods or services

more from the manufacturer to the end consumer. It encompasses the various

intermediaries involved in the process, such as wholesalers, retailers, and distributors.

This channels can be direct, where the product goes from manufacturer to the consumer

or indirect, involving intermediaries.

The proponents choose the direct channel, where the manufacturer sells

directly to the consumer, because it offers greater control over product distribution and

customer interactions. In this approach, the proponents are allowed to gather direct

feedback from consumers, helping them understand preferences and improve products

or services accordingly.

Manufacturer Consumer

Figure 1.

Channel of Distribution

DEMAND AND SUPPLY ANALYSIS

Demand and supply analysis is a fundamental concept in economics used to

understand the behavior of markets. It examines how the quantity of a good or service

demanded by consumers and the quantity supplied by producers interact to determine

the market equilibrium price and quantity. The proponents conducted a survey in the

towns of Lemery and Taal, Batangas. The proponents find selected stores useful for

assessing the marketability of their product.

 TABLE 1.

GEM PARTNERSHIP

HISTORICAL DEMAND FOR STREET FOODS

NAME OF STORE 2019 2020 2021 2022 2023

LEMERY

Medy’s Food Stall 35,280 14,868 40,320 52,080 63,186

Miss Manos Shack 29,280 16,560 33,120 41,280 51,840

Pirates of Kariyan 25,536 15,792 27,216 40,992 54,432

(Citimart)

Salio’s Food Stall 26,880 15,456 28,896 39,648 46,704

SSF Food Stall 22,512 15,120 21,504 25,862 38,640

TAAL

Jess’s Food Stall 28,560 16,800 29,568 40,656 58,800

(Night Market)

Bea’s Snack Food 29,280 12,000 42,240 49,920 61,440

Ernesto Stall 19,740 11,280 47,520 57,600 79,200

Len’s Food Stall 36,288 11,542 32,542 47,376 64,512

Venus Stall 43,008 12,096 39,648 49,728 68,544

Rone Stall 30,720 7,680 22,320 35,040 41,760

TOTAL 327,084 149,194 364,894 445,142 629,040

Table 1 shows the historical demand for Street Foods for the years 2019-2023.

The respondents reveal that the estimated demand for the year 2019 was 327,084,

which gradually increased to 629,040 in the year 2023.

 TABLE 2.

GEM PARTNERSHIP

AVERAGE INCREASE DEMAND FOR SIMILAR TOFU BALLS

Year Demand Increase in Unit Percentage Increase

2019 327,084 0 0

2020 149,194 (177,890) (54,39%)

2021 364,894 215,700 144.58%

2022 445,142 80,248 22%

2023 629,040 183,898 41.31%

TOTAL 301,956 153.5%

AVERAGE INCREASE 75,484 38.4%

Table 2 shows that demand for similar Street Foods increased by 38.4% , with an
average increase of 75,484.

TABLE 3

GEM PARTNERSHIP

HISTORICAL VALUE OF DEMAND FOR SIMILAR TOFU BALLS

2 XY
Year Y X X

2019 327,084 1 1 327,084

2020 149,194 2 4 298,388

2021 364,894 3 9 1,094,682

2022 445,142 4 16 1,780,568

2023 629,040 5 25 3,145,200

TOTAL 15 55 6,645,922
 Table 3 presents the historical value of demand for Similar Tofu Balls with
corresponding value of 327,084 in 2019, 149,194 in 2020, 364,894 in 2021, 445,142 in
2022 and 629,040 in 2023.

TABLE 4

GEM PARTNERSHIP

PROJECTED DEMAND FOR TOFU BALLS

Year A B X YC

2024 113,112 89,986 6 653,028

2025 113,112 89,986 7 743,014

2026 113,112 89,986 8 833,000

2027 113,112 89,986 9 922,986

2028 113,112 89,986 10 1,012,972

Table 4 shows the projected demand for Tofu Balls for the next five years with

constant value of a= 113,112 and b= 89,986.

Computation:

b = n ∑XY - ∑X∑Y a = ∑Y – b ∑X

n∑X² - (∑X) ² n-n

b = 5(6,645,922) – (15) (1,915,354) a = 1,915,354 – 89,986 (15)

5(55) – (15) ² 5 5

= 33,229,610 – 28,730,310 = 1,915,354 –1,349,790

275 – 225 5 5

= 4,499,300 = 383,070 – 269,958

a= 113,112
 50
b= 89,986

TABLE 5

GEM PARTNERSHIP

HISTORICAL SUPPLY OF STREET FOODS

NAME OF STORE 2019 2020 2021 2022 2023

LEMERY

Medy’s Food Stall 24,528 10,836 32,526 39,984 48,048

Miss Manos Shack 17, 520 11,760 22,560 28,320 31, 680

Pirates of Kariyan 13,776 10,416 16,128 25,872 32,592

(Citimart)

Salio’s Food Stall 17,808 11,424 20,832 29,568 31,920

SSF Food Stall 10, 752 8, 400 12, 096 13, 776 16, 800

TAAL

Jess’s Food Stall 15,120 10,080 20,160 23,560 31,920

(Night Market)

Bea’s Snack Food 17,760 9,600 36,480 43,200 52,800

Ernesto Stall 13,020 11,520 36,000 48,000 60,000

Len’s Food Stall 20,160 7,560 21,840 25,872 26,880

Rone Food Stall 19,200 4,800 15,600 21,600 26,400

Venus Stall 29,568 6,720 26,208 32,560 33,600

 TOTAL 199,212 103,116 260,160 310,712 392,640

The historical supply for Street Foods for the years 2019–2023 can be gleamed in

Table 5. The respondents revealed that the estimated supply for the year 2019 was

199,212, which gradually increased to 392,640 in the year of 2023.

TABLE 6

GEM PARTNERSHIP

AVERAGE INCREASE SUPPLY FOR SIMILAR TOFU BALLS

Year Supply Increase in Unit Percentage Increase

2019 199,212 0 0

2020 103,116 -(96,096) -48.24%

2021 260,160 157,044 152.30%

2022 310,712 50,552 19.43%

2023 392,640 81,928 26.37%

TOTAL 193,428 149.8%

AVERAGE INCREASE 48,357 37.47%

Table 6 shows that supply for similar Tofu Balls increased by 37.47%, with
an average increase of 48,357 units.
 TABLE 7

GEM PARTNERSHIP

HISTORICAL VALUE OF SUPPLY FOR SIMILAR TOFU BALLS

Year Y X X
2 XY

2019 199,242 1 1 199,212

2020 103,116 2 4 206,232

2021 260,160 3 9 780,480

2022 310,712 4 16 1,242,848

2023 392,640 5 25 1,963,200

TOTAL 1,265,840 15 55 4,391,972

Table 7 shows the historical value of supply for Chicken Veggie Dumplings with

corresponding value of 199,242 in 2019, 103,116 in 2020, 260,160 in 2021, 310,712 in

2022, and 392,64 in 2021.

 TABLE 8

GEM PARTNERSHIP

PROJECTED SUPPLY FOR TOFU BALLS

Year A B X YC

2019 74,833 59,445 6 431,503

2020 74,833 59,445 7 490,948

2021 74,833 59,445 8 550,393

2022 74,833 59,445 9 609,838

2023 74,833 59,445 10 669,283

Computation:

b = n ∑XY - ∑X∑Y a = ∑Y – b ∑X

n∑X² - (∑X) ² n-n

b = 5(4,391,972) – (15) (1,265,840) a = 1,265,840 – 59,445 (15)

5(55) – (15) ² 5 5

= 21,959,860 – 18,987,600 = 1,265,840 –891,675

275 – 225 5 5

= 2,972,260 = 253,168-178,335
 50

b= 59,445

Table 8 shows the projected value of supply for Tofu Balls for the next 5 years

with constant value of a=74,833 and b=59,445.

TABLE 9

GEM PARTNERSHIP

PROJECTED DEMAND – SUPPLY GAP FOR TOFU BALLS

2024 2025 2026 2027 2028

Projected Demand 653,028 743,014 833,000 922,986 1,012,972

Less: Projected 431,503 490,948 550,393 609,838 669,283

Supply

Projected Demand 221,525 252,066 282,607 313,148 343,689

and Supply Gap

Market Share 45% 99,686 113,430 127,173 140,916 154,660

Market share in 19,937 22,686 25,435 28,183 30,932

tubs

Competitor Share 121,839 138,636 155,434 172,231 189,029

55%
MARKETING STRATEGY

Tofu Balls marketing strategy revolves around fostering strong customer

relationships, aiming to enhance satisfaction and promote the product. This involves

actively collecting and incorporating feedback to continuously improve both the product

and customer experience. Additionally, leveraging marketing communication channels

such as flyers and social media platforms like Facebook allows for effective exposure to

the target market, maximizing potential profits. The commitment to customer satisfaction

ensures loyal support, while strategic marketing efforts capitalize on social media’s reach

and engagement capabilities. Through these strategies, Tofu Balls aims to establish a

robust brand presence and cultivate lasting connections with its customers.

ADVERTISING

Advertising is the process of promoting products, services, or brands to a target

audience through various channels such as television, radio, print media, social media,

and online platforms. Its primary goal is to attract potential customers, generate sales,

and build brand awareness and loyalty. The proponents chose to use food cart and

social media for advertising their product because it’s easy and reaches many people.

Flyers offer a tangible, eye-catching way to convey information or promote a message in

a local or targeted area. Food carts offer a direct interaction with potential customers,

allowing for immediate feedback and engagement. Utilizing a food cart ensures that the

product is prominently displayed for customers to see. The food cart has an Height 6

feet, width 3.5 feet, and scale width 2 feet. Meanwhile Social Media Platform offer a
convenient way to showcase their product to a broad audience, engage with potential

customers easily, and reach a large number of people quickly. This strategy aims to

showcase the tofu balls and attract potential buyers effectively.

Fig

ure 2. Social Media Figure 3. Food Cart

 Figure 4. Flyers

PROMOTION

Promotions are activities designed to attract attention to a product or service

and encourage people to buy it. They often involve special offers, discounts, or events

that make the product more appealing to consumers. Promotions aim to increase sales

and build brand awareness by persuading customers to choose a particular product over

others.

The proponents have chosen the “Buy 1 ‘5 pcs Tofu Balls’ and get free 1

piece Tofu Balls” promotion as part of their marketing strategy. This deal is specifically

targeted at the first ten customers who visit the establishment. By providing an incentive

for customers to make a purchase, the proponents aim to attract more people to their

business and encourage repeat visits. The proponents are also offering free tasting

samples on May 15,2024, from 8 am to 10 am in the morning. This limited offer aims to

attract customers to experience their product firsthand.

 Figure 5. Promotional Material

PACKAGING

The proponents have chosen for a Kraft foil-coated clamshell as the packaging

for their product, tofu balls. This choice aligns with their sustainability goals, as Kraft

clamshells are often considered more eco-friendly than plastic alternatives. Additionally,

its dimensions—6 inches in length, 2 inches in width, and 2.5 inches in height—are likely

sufficient to hold an appropriate portion of tofu balls. The decision to use Kraft foil-coated

clamshells may also appeal to environmentally conscious consumers who prioritize

reducing plastic waste.

PRICING

The price of Tofu Balls is estimated to be 45 pesos for 5 pieces of tofu balls. This

means that the 45 pesos covers everything needed to make and sell the tofu balls,

including the raw materials, the workers' wages, the packaging materials, and other

operating costs.