Chapter 2

MARKETING PLAN

This chapter discusses the business target market, marketing

objectives, marketing strategies, table for program activity for promotions

distribution channel, marketing budget summary pricing strategy and

competition.

Target Market

The dominant target market for churrositea those people who are

working and students that don’t have enough time to cook for themselves.

Every business aims to gain more profits, the researchers also aiming to

gain that profit from our expected sources of target market.Personal and

expedient customer service at a competitive price is key to maintaining

the local market share of this target market.

Market Segmentation

1. Psychographic Segmentation-a method used to group

prospective, current or previous customers by their shared

personality traits, beliefs, values, attitudes, interests, and lifestyles

and other factors.

  Workers near the area- These are the people seeking for a

certain meriendaor snack during breaktime

 Students- who are searching for an extraordinary snack

that suit to their budget or baon.

 A selfie person- A photograph that one has taken of

oneself, typically one taken with a smartphone or webcam

and shared via social media. 'occasional selfies are

acceptable, but posting a new picture of yourself every day

isn't necessary

2. Demographic Segmentation- CHURROSITEA considers

 Age: From ages 3 and Up

 Gender: Male and Female

 Any Religion

3. Socioeconomic Segmentation-Churrositeaare looking for;

 People who has a stable job

 A loyal customer who can afford the said products

4. Product-related Segmentation-Churrositeaare all about getting

people together and enjoying each other’s company. We believe

that what we do can merge a fabric of positive relationships and

experiences that stretch from our café

  The highly demand of the people to the product

 Their eagerness to buy the product that we offer

 Customers who is seeking for relaxation

5.Geographical Segmentation-

Residential Areas:

Harmony Hills 1

Shelterville

Barugo

Academic Institution:

Kalayaan National High School

Kalayaan Elementary School

Escuela San Gabriel de Arcangel

Genesis Christian Academy of Caloocan

Christ Jeross Christian Academy

Remittance Center:

Villarica Pawnshop

CebuanaLhuilier

Sinag Pawnshop

Palawan Pawnshop
 Grocery Store:

PUREGOLD

KINGSMART

7/11

MINISTOP

Marketing Objective

Promoting to market the product with inexpensive advertising

material and strategy like flyers and etc. and achieve a market share of

more than 10% 12 months after the launching of the product and increase

sales quarterly to create an innovative restaurant name and logo that

becomes a household name.

 Create

Innovation is a cornerstone of pretty much any healthy

business. You not only need to be thinking of better ways to

promote your existing business but also how to further what you

already have. Make a list of things you would like to see your

business offer and to ask how this can be done. Answering that

enables a plan to take form.

 Maintain

A manufacturing plant that will produce your product or an

office that's designed to be the headquarters for your services

needs to be maintained. Office equipment, machinery, servers or

whatever tangible items you need for your business to thrive must

be monitored and optimized. Maintenance is also vital in the form

of key business relationships. Keeping customers, investors, board

members and employees satisfied is just as important. These

relationships can define your business.

 Retail

As the saying goes, a chain is only as strong as its weakest

link. When you have a well-oiled machine, take a look at those who

make sure it continues to run smoothly. Get an idea of which

employees are strongest in every department, as well as what are

their individual professional strengths and weaknesses. Analyze

how these people are best utilized and what it will take to keep

them working for you so that the produce exemplary results. If your

business produces products, take a look at your customer base

and get an idea of what it takes to retain them. Loyal customers

can make or break a business -- not only because they buy your
 product or service but also because word of mouth will always be a

powerful advertising asset.

 Invest

It almost goes without saying that financial health is

paramount to any business. Are your fiscal resources allocated

effectively in every department and in every area? Breaking down

the financial analysis by area and at regularly scheduled intervals

will ensure that the money your business makes and spends is

effective and proper. If your business objective is to grow your

company by attracting investors or expanding its physical

locations, then a healthy capital from a mix of investments and

cash reserves will do that.

 Educate

A constant cycle of learning and teaching keeps a business

alive. New ideas taught by experienced people -- both on an

internal level and on an external with your advertising and

customers -- are signs of growth.

  Expand

To get to where you want your business to go, determine

the methods best used to get there. Look honestly at the strengths

of your business as well as its weaknesses. There are always

opportunities to expand, as well as threats that may hinder your

business. By realistically viewing where you are and what is

around you, you can then form a plan on how to get where you

want and need to go.

Consider the objectives of your business often and always. That simple

mental task is the difference between being a leader in your industry or

being led around by other businesses similar to yours.

Marketing Strategy

1. Opening Promo- A grand opening makes full of curiosity and

excitement. Alots of promos and discounts.

2. Tarpaulin

One of the easiest and fastest way of promoting products or

services
Figure2.1 Tarpaulin

3. Facebook Page

Churrositeapromote our product by the help of social media

like facebook, which is the easiest way of marketing nowadays and

also we have flyers that spread in particular nearby places in our

business location.
 Figure 2.2 Facebook Page

4. Free Internet Access- Churrositea Management limits free WiFi

access. After you reached the maximum free Wifi access for

1hour, it will automatically disabled.

5. Sound System- Random playing of songs that will surely loved by

the customers. 2hours of playing random music, the company

jingle will automatically play and that’s a simple advertisement for

them to help the store to be well known as well.

6. Email Newsletters & Email Marketing not everyone has their

own social media account, but it’s a sure bet that someone has an

email address. This is what makes email marketing so effective.

The most effective means of utilizing email marketing is to create a

regular email newsletter that will go out to subscribers. Get

potential and recurring consumers to sign up to your newsletter by

offering discounts, promotional items, helpful tips, news updates

and more.

7. Flyers-a small handbill advertising an event or product.

Figure2.3 Sample Flyers
 The store will produce 100 flyers per day. These flyers will be

distributed three (3) times in a month.

The computation would be:

No. of Pcs. X Unit Price X No. of times per month

100 X 5 X 3 = Php.1500.0

8. Short-term sales promotions- market your product or service

using coupons, competitions and contests.

9. Gift Certificate-The first 20 customers that avail 500php of

churrositea product within 1st month of the grand opening will

receive 100php Gift Certificate from churrositea.

10. Word of mouthVirality is often times the first word that marketers

think of when it comes to harnessing the power of WOM

marketing. But the truth is, word-of-mouth marketing has

invaluable impacts on your brand beyond one-time viral marketing

campaign

Program Activity for Promotions

The goal of marketing is to stand out and be noticed. Good

marketing keeps drawing your customers' attention to your products

and services. Your clearly defined, well-packaged, competitively-

priced products and services are the foundation of your marketing.

The newer you are in your market, the harder you have to

work to attract and retain new customers. Many of your marketing

activities will focus on communicating to customers the features and

benefits of your products (i.e. compared to your competitors).

Consider which promotional activities will best meet your marketing

needs
 Table 2.2

Churrositea’s Program Activity for Promotions

Objectiv Activites/ Venue Person in Budget Time

es Strategie Charge Frame

Attract Buy 4 Store Manager March 15,

Custome Classic 2019 and

rs (Any June 15-

falvor) June 22,

churros 2019

for only

85php.

SAVE

P15.00

Attract Tarpaulin Around Manageme P200 April 1,2019

Custome North nt

rs Calooc

an

To reach Facebook Social Manageme P1,580/3m March 1-6,

people Page Media nt os June

1,Septemb
 er 1,2019

To attract Free Store Cashier Utility -

customer Internet Expenses

s Access

To attract Sound Store Manageme Utility -

customer System nt Expenses

Publicity Email Store Manageme April 15,

Newslette nt 2019

rs &

Email

Marketing

To gain Giving Around Manangem P1500 July 1-

more them fl4i North ent September

customer yers Calooc 30, 2019

s an

For Coupons Store Manageme June1-

Promotio nt August

n 31,2019

To Gift Store Manageme P2000 March 1-

maintain Certificat nt 31, 2019

loyal e

customer

To test Word of Store From our - -

the mouth service to

curiosity our valued

and customers

loyalty of to their

our colleagues

customer

s
Distribution Channel

Distribution channels in marketing are one of the classic “4

Ps” (product, promotion, price, placement or “distribution”). They are

a key element in your entire marketing strategy — they help you

expand your reach and grow revenue

Direct Distribution

Figure 2.6 Distribution Channel (Direct Distribution)

Marketing Budget Summary

Table 2.2

Marketing Budget Summary (Annual)

ACTIVITIES QTY COST PER PROJECT SUB-

UNIT TOTAL

ANNUALLY

Tarpaulin 10 P150 P1500

Fb Page Boosted P1580 P1580

Discount 300 P50 P17,500

Coupons

Flyers 300 P5 P1500

GC 20 P2000 P2000

TOTAL P24,080

Pricing Strategy

The Churrositea choose

 Penetration Pricing

To attract customers to a new product or service.

Penetration pricing includes presenting a low price for a new

product or service during its initial offering. The lower price helps to

lure customers away from competitors. This marketing strategy

 relies on the idea of low prices making a customer aware of a new

product. The price entices the customer to try the new product.

 Economy Pricing

This is a no frills low price. The costs of marketing and

promoting a product are kept to a minimum. Supermarkets often

have economy brands for soups, spaghetti, etc. Budget airlines are

famous for keeping their overheads as low as possible and then

giving the consumer a relatively lower price to fill an aircraft. The

first few seats are sold at a very cheap price (almost a promotional

price) and the middle majority are economy seats, with the highest

price being paid for the last few seats on a flight (which would be a

premium pricing strategy). During times of recession economy

pricing sees more sales. However it is not the same as a value

pricing approach which we come to shortly.

 Table 2.3

Pricing Strategy

Product Cost Mark up Seliing Price

ONION 10.9556 10.9556 25

CHURROS

GARLIC 10.8756 10.8756 25

CHURROS

CHILI 10.6056 10.6056 25

CHURROS

milk tea pearls 28.444 21.333 60

Dark chocolate 48.766 36.5745 100

milktea

Matchamilktea 31.1425 23.356875 65

Churrositea’s 10.778 8.0835 25

special sweet

soy dip

Garlic Cheese 20.638 15.4785 35

dip

Sour cream dip 15.0712 11.3034 30

Competitors

Competitors Profile

Figure 2.7Don’s Original Spanish Churros

Don’s Original Spanish Churros is just one of the few stalls that

can give you yummy sweet bites, perfect for good to take snacks.

The owner is a lover of Spanish restaurants that is why he

decided to come up with a kiosk that sells his favourite Spanish snack –

churros! Don’s makes eating churros convenient through its thoughtful

packaging. Choose from among their 4 variants of dips. You can have

Chocolate, Dulce de Leche, Strawberry, and Blueberry for your dips. The

dips are made from fresh fruit ingredients which make it more delicious.

Smell the aroma of this baked goody lingering around the place

and see how these churros are made as you wait for your order. With its

very affordable price, you will surely love this to-go snack that gives you a

sweet moment in every bite. Its dip container will guarantee you no spill!

You can definitely enjoy your churros and dip even while walking.
Figure 2.8 LA LOLA CHURRERIA

What started out as an experiment turned into long lines, 8

branches, a combi, and franchising We sat down with Andilasia Inc., the

restaurateurs behind Rambla and Las Flores, to brainstorm about their

latest idea. They had a name (La Lola Churreria) and a concept (hot and

fresh churros fried in 100% olive oil). But other than that, the concept was

open to interpretation.
Figure 2.9 WILD FLOUR CAFÉ + BAKERY

For back in the days, our house help made us baked goodies in

batches – muffins, cookies, and brownies. Even our pizza was

homemade! I instantly transformed into Santa’s little helper when it was

time to roll the dough for the crust. The dough smelled so good I was

tempted to bury my face in it and breathe deeply. But scared of being

scolded, I contented myself to rolling, rolling, rolling until it was thin and

circular and the edges were even. Arms crossed, I stared impatiently at

the oven, a reddish light illuminating my beautiful dough

Figure 2.10 ALQUERIA

Alqueria first came out with their coffee-churro combo back in june as

happy hour special their churro currently rank number 4 on SPOT ph’s
top 10 churros 2015 edition .The pastries are denser than the usual

,which you can pair with your choice dip: dark chocolate, White

Chocolate, or dulce de leche.

Figure 2.11 Dulcinea DESDE 1963

Dulcinea’s history actually began in 1961, when Señor Santos

Ruano decided to leave his grandparent’s pasteleria in Spain to travel to

the Philippines. Bringing with him his wits, experience, and the knowledge

of his grandparent’s recipes, Señor Ruano opened up the Dulcinea

Pasteleria y salon de Te and the rest, as we say, is history.

What began as a humble little pasteleria on Mabini Street in Ermita

has become one of the enduring names in Manila cuisine. Three

generations of Filipinos have walked through Dulcinea’s doors, a tradition

continued from parent to child, from family to family. Fifty years after the

dream, Dulcinea still remains an intrinsic part of the lives of many Manila

residents.
 Today, Dulcinea continues to uphold the tradition of serving

delicious food and sweet pastries set by its founder, and hopes that

customers would find their own slice of history dining in one of their many

outlets or catering events.

Figure 2.12 Sancho Churreria Manila

Sancho Churreria is a small trinket of light along a train of

restaurants in a simple street in Teacher’s Village. If you’re looking for an

alternative to a coffee shop where you can have intimate discussions with

your girlfriends, Sancho Churreria might be the venue for a change.

The place is a bit cramp though but very Spanish on the outside.

The interior is reminiscent of Dulcinea. I think some of their furniture might

be from Dulcinea.

Figure2.13 GONG CHA tea.coffee.juice

 Gong Cha's first Hong Kong store was established in 2006 by a

Hong Kong native who had lived in Taiwan for five years. As of 2012, it

had about forty-six stores in Hong Kong, mainly in MTR stations and

shopping centers but that number has dropped to five due to decreased

business from several health and safety scandals. Gong Cha serves a

total of about fifty-seven different drinks, which can be divided into seven

types: house specials, brewed tea, milk tea, "Creative Mix", coffee,

"Healthy Series", and ice smoothies. They also offer drinks in medium

and large sizes. The most popular one in Hong Kong is "Gong Cha Milk

Green Tea", containing a lower layer of brewed tea covered by an upper

layer of special creamer. Gong Cha also offers tea sets and tea in stores,

such as Bi-Luo-Chun Green Tea and Darjeeling Spring Tea. In some

locations they also offer food, a new recent addition being "Mochi

Waffles".

In January 2017, Gong Cha's main headquarters was inquisted by Gong

Cha Korea. CEO Kim Soo-Min has announced plans to reach out into the

Middle East and Latin America, while promising to "change everything but

the taste".
Figure2.14 Serenitea

Serenitea was established in 2008 by then partners, Peter Chen

and Juliet Herrera. The two thought of starting a business shortly after

their graduation and decided against establishing a coffee shop due to

them thinking that the industry is a saturated market in the Philippines

and considered opening a tea shop instead. Herrera and Chen went

to Taiwan to research on the tea making process before establishing

Serenitea's first shop. They also loaned a total of ₱800 thousand as

starting capital for their milk tea business.

Serenitea opened its first location in Little Baguio, San Juan

in Metro Manila on December 19, 2008. By November 2010, the milk tea

shop chain has opened three more branches, all within Metro Manila.

Serenitea continued to open new branches and by 2013, there are about

24 branches in Luzon. In the same year, Serenitea opened its first branch

outside Metro Manila at the Cebu IT Park in Cebu City. The store was

also the first branch under a franchise system. The second store outside

Metro Manila was opened in February 2013 in Davao City.

Figure 2.15 COCO Fresh Tea & Juice

CoCo Fresh Tea & Juice is founded in 1997 by our Chairman

Tommy Hung. Through 20 years of development, CoCo has became the

global leading brand in the bubble tea industry.

Through high standard of quality, consistency, and service, we

have established more than 2500 stores around the world. We provide

creative tea drink including: fresh tea, milk tea, fruit tea, yogurt drink,

coffee and other beverage products, to drink lovers around the world

As our franchisees seeks to provide drinks that give people sparks

of happiness and warmth, CoCo Fresh Tea & Juice support our partners

and franchisees worldwide with our professional training programs, well-

designed evaluation system, innovative products, and the assistance of

our highly experienced management team.

CoCo continuously dedicate ourselves in innovating and

progressing to build a sustainable and profitable business system. Up till

today, we never cease to develop new product lines, upgrade the

customer experience, and broaden the accessibility to our brand, thus

penetrating into the worldwide markets, and becoming the global leading

brand.
Figure2.16 Chatime

Chatime (Chinese: 日出茶太) is a Taiwanese

global franchise teahouse chain based in Taiwan. Chatime is the largest

teahouse franchise in the world. Its expansion and growth model is

through franchising. It operates 2500+ outlets in 38 countries. In 2006, it

opened its first store outside of Taiwan in California, United States and it

has since expanded to China, Malaysia, Canada, Indonesia, Philippines,

Cambodia, Thailand, Australia, New Zealand, India, United Arab

Emirates, Japan and South Korea, among others.

Chatime won the honor of being the first Taiwanese catering brand

to receive the "Brands of the Year" at the World Branding Awards in

2014.

Its parent company, La Kaffa International Co Ltd, debuted on the

Emerging Stock Market in December 2012 at NT$168 per share. It is

expected to list on Taiwan’s Gre Tai Securities Market in the second half

of 2013. It is the only public-listed bubble tea company in Taiwan.

 Table 2.4

List of Competitors near the Business Location

Business Name Product Name Price Promotion

Don’s Original Spanish Churritos, Php 85 for Social

Churros Filled Churros, 6 pcs Media

Oreo Churros, Php 85 for Tarpaulin

6 pcs

Php 85 for

6 pcs

LA LOLA CHURRIRIA Classic Churros, Php 110 Application

Churro Ice for 6 pcs Social

Cream Php 145 Media

for 4 pcs Flyers

Tarpaulin

Sancho CHURRERIA LenguaEstofada, Php 230 Social

MANILA Churros con Php 85 for Media

Chocolate 4pcs Flyers

Tarpaulin

Dulcinea DESDE 1963 Churros con Php 118 Social

Chocolate Media

Mango Crepe Php 185 Flyers

 Tarpaulin

ALQUERIA Churros Php 158 Social

Media

Flyers

Tarpaulin

Gong Cha Milk tea with Medium: 85 Social Media

Pearl Large: 100 Tarpaulin

Serenitea Hokkaido Medium: 95 Social Media

with nata Large: 105 Tarpaulin

sinkers,

Winter

Melon Milk

tea,

Okinawa

Passion Medium: 95 Social Media

Fruit Tea Large: 105 Tarpaulin

Burst,

Matcha

Slush with
Salty Cream,

Taro Milk

Tea

Pearl Milk Regular: 75 Social Media

Tea, Large: 85 Tarpaulin

Grass Jelly

Roasted Milk

Tea,

Red Bean

Pearl Milk

Tea