V.

MARKETING FEASIBILITY
5.1 Market Description

Mangifera Company operates mainly in Barangay Tulat, San Jose City, Nueva

Ecija, the target market of the business are the merchandisers like Save More and

Friendship, and other retailing store such as 7 eleven that is located in the city. Due to the

rising consumption of snack food consumes by Filipinos, the current population and the

economic condition of San Jose City, Mangifera Company chose the city as their location

of business operations and at the same times their market, to ease up the distribution and

practice the movement of the products and its acceptability. As per Municipality of San

Jose City, from 2,730 registered retail stores in the past 2013 to currently 4,805 registered

retail stores last 2017, retail stores are only growing, signalizing Mangifera Company a

booming economy. The economy in San Jose City is a perfect start for the Mangifera

Company as it target retail stores and large grocery stores such as NE Bodega, Magic

Mall 1 and 2, SaveMore, Friendship and 4 outlets of 7/11. Being able to reach these

stores and compete with other brands will keep Mangifera Company in operations and

grow making it easier to tap other markets and other places. What makes Mangifera

Company unique is that it is a local brand competing with international and other local

brands but it is the only brand using fruits, mango specifically, as main ingredient and

making it purely organic compared to unhealthy products of competitors. Other than that,

Mangifera Company will piggyback-ride it’s retail stores by using them to connect to the

end users or final consumers making the market larger as Mangifera adds other retail

stores.
5.2 Demand Forecasting

Based on the City Population Office of Municipality of San Jose City, Nueva

Ecija, a total of 4, 805 retail stores have legal permit to operate their business. As retail

stores are our market, it will lead us to total market penetration. Kantar Worldpanel’s

table shows the demand for snacks by Filipinos, they revealed that among Filipinos

allocation in the snack food category has risen from PHP4,524 in 2015, Filipino

households spent PHP4,904 on snack food in 2017.

Kantar World panel, which tracks the in-home shopping behavior of 3,000 homes

in urban and rural areas across the country, adds that Filipinos spent 10% more on snack

food per trip, with a range of PHP29 to PHP32, while shopping 3x per month on the

average during the three-year period.

As stated on Kantar World panel’s research, Snacks are the second most bought

food by Filipinos following the biscuits but has higher growth percentage meaning that it

may surpass biscuits in the next couple of years given the data available. Snacks grew

21% in two years making it the most frequently bought snack food at roughly six times

per month.
Figure 7. Most Demand Snack for Filipinos

Source: Kantar Worldpanel

This shows us that Alamangga Chips can have a growth rate of 21% in the

Philippine Market. Mangifera Company used a statistical straight line method to forecast

demand. With this method, the researchers foresee that the demand would be at 5,230.6

by the year 2018.

Table 8. Registered Retail stores in San Jose City

Year Total number of Retail Stores (Y)
2013 2,730
2014 3,365
2015 3,653
2016 4,169
2017 4,805

Table 9. Past Demand Data of Mangifera

Year Total number or 𝑿 𝑿𝟐 𝑿𝒀
Retail Stores (Y)
2013 2,730 ˗2 4 ˗5,460
2014 3,365 ˗1 1 ˗3,365
2015 3,653 0 0 0
2016 4,169 1 1 4,169
2017 4,805 2 4 9,610
ΣY= 18,722 𝟐
𝜮𝑿 = 10 ΣXY= 4,954

As illustrated in table 9, Mangifera’s projected demand was computed with the

use of the formula, 𝑌𝑐 = 𝑎 + 𝑏(𝑥). For instance, year 2018s projected demand is

5,230.6.
Table 10. Projected Demand Data of Mangifera
Year 𝑿 𝒀𝒄 = 𝒂 + 𝒃(𝒙)
2018 3 5,230.6
2019 4 5,726
2020 5 6,221.4
2021 6 6,716.8
2022 7 7,212.2

Where: 𝒀𝒄 = 𝒂 + 𝒃(𝒙)

𝒀 𝟏𝟖, 𝟕𝟐𝟐
𝑨=𝜮 = = 𝟑, 𝟕𝟒𝟒. 𝟒
𝒏 𝟓

𝐗𝐘 𝟒,𝟗𝟓𝟒
𝐁 = 𝚺 𝚺𝐗 𝟐 = = 495.4
𝟏𝟎

Therefore:

𝟑, 𝟕𝟒𝟒. 𝟒 + 𝟒𝟗𝟓. 𝟒(𝟑) 𝟑, 𝟕𝟒𝟒. 𝟒 + 𝟏𝟒𝟖𝟔. 𝟐 = 𝟓𝟐𝟑𝟎. 𝟔

5.3 Supply Forecasting

The researchers gathered information and data from the indirect competitor of

Mangifera Company which is the Profood International Corp that supplies organic chips

like Ampalaya and Malunggay Chips in the big supermarkets like SaveMore, NE
Bodega, Friendship, Magic Malls and other merchandising store in San Jose City. The

blank company cannot give enough information and data to compute the supply for the

past five years from 2013 to 2017. So the team decides to base their data from the

percentage of increase in numbers of registered retailing store and large supermarkets in

San Jose City.

As stated earlier, the blank company cannot give enough data to compute their

actual supply, in order to complete the data the researchers used the percentage of the

supermarkets in San Jose City where the blank company can possibly supplies their

products and compute its increase over the past five years from 2013-2017. With this

data, Mangifera forecasted the demand for the next five years of operation from 2018-

2022 using the method of statistical straight line to compute the future supply.

Table 11. Estimated Supply of Mangifera

Year No. of existing Reseller of Chips Percentage Increase of Registered
Retailing Store

2013 15 -
2014 16.5 10.8%
2015 17.8 7.8%
2016 19.9 12.3%
2017 22.5 13.2%
Table 12. Past Data Supply of Mangifera
Year Actual Value Based on Target Customer X X2 XY
(Y)
2012 -2 4
15 -30
2013 16.5 -1 1 -16.5
2014 17.8 0 0 0
2015 1 1
19.9 19.9
2016 2 4
22.5 45
∑ 𝑌 = 91.7 ∑ 𝑿𝟐 = 𝟏𝟎 ∑ 𝑿𝒀 = 18.4

As illustrated on Table 9, the projected demand was computed with the use of the

formula, Yc=a+b(x). In the year 2018 for instance, the projected demand is23.86–which

is the sum of 18.34 and the product of 1.84 multiplied to 3.

Table 13. Projected Supply Data of Mangifera

Year X Yc = a+b(x)
2018 3 23.86
2019 4 25.7
2020 5 27.54
2021 6 29.38
2022 7 31.22
Where:

Yc = a+b(x)

𝒀 𝟗𝟏.𝟕
A = ∑𝒏 = = 18.34
𝟓

𝑿𝒀 𝟏𝟖.𝟒
B = ∑ ∑ 𝑿𝟐 = = 1.84
𝟏𝟎

Therefore:

18.34+ 1.84(x)
5.4 Demand Supply Analysis

The first step to identify the percentage of the unsatisfied market of a specific year

is to subtract the supply from the demand and the difference or what we called gap shall

be divided to the demand figure of the same year. Finally, the quotient shall be multiplied

to 100 to come up with a percentage.

The table shows that there’s a great gap between demand and supply. There’s a

great demand in the market of San Jose City, and an insufficient supply to satisfy the

market. It also illustrates that the percentage of unsatisfied market is increasing every

year because the demand grows faster than the supply. From 2013 to 2017 the demand

increased by 76%, while the supply only increased by 50%. In the years 2018 to 2022,

the demand and supply are still increasing, but slower than the previous years. The

percentage of unsatisfied market is still increasing.

This analysis shows that there’s a great opportunity for the Mangifera Company

to have a great market share, because the market is not yet saturated by the competitors.

This is also a challenge to Mangifera Company, because there’s a big percentage of

unsatisfied market needs to be supplied.

Table 14. Demand-Supply Gap
Year Demand Supply Demand-Supply Gap Percent Unsatisfied
Past
2013 2,730 15 2715 99.45%
2014 3,365 16.5 3348.5 99.51%
2015 3,653 17.8 3635.2 99.51%
2016 4,169 19.9 4149.1 99.52%
2017 4,805 22.5 4782.5 99.53%
Projected
2018 5,230.6 23.86 5206.74 99.54%
2019 5,726 25.7 5700.3 99.55%
2020 6,221.4 27.54 6193.86 99.56%
2021 6,716.8 29.38 6687.42 99.56%
2022 7,212.2 31.22 7180.9 99.57%

5.5 Sales Forecast

Table 15. Sales Forecast for Dried Unripe Mangoes

DRIED UNRIPE
MANGOES

TOTAL NUMBER OF TARGET

YEAR PRICE RETAIL STORES CUSTOMERS REVENUE

2018 2,150 5,231 30% 3,373,995

2019 2,150 5,726 30% 3,693,270

2020 2,150 6,221 30% 4,012,545

2021 2,150 6,717 30% 4,332,465

2022 2,150 7,212 30% 4,651,740

TOTAL
REVENUE 20,064,015
Table 16. Sales Forecast for Dried Ripe Mangoes

DRIED RIPE MANGOES

TOTAL NUMBER OF TARGET

YEAR PRICE RETAIL STORES CUSTOMERS REVENUE
2018 2,150 5,231 30% 3,373,995
2019 2,150 5,726 30% 3,693,270
2020 2,150 6,221 30% 4,012,545
2021 2,150 6,717 30% 4,332,465
2022 2,150 7,212 30% 4,651,740
TOTAL
REVENUE 20,064,015

Table 17. Sales Forecast for Mango Jam

MANGO
JAM

TOTAL NUMBER OF RETAIL TARGET

YEAR PRICE STORES CUSTOMERS REVENUE

2018 1,700 5,231 30% 2,667,810

2019 1,700 5,726 30% 2,920,260

2020 1,700 6,221 30% 3,172,710

2021 1,700 6,717 30% 3,425,670

2022 1,700 7,212 30% 3,678,120

TOTAL
REVENUE 15,864,570
Table 18. Sales Forecast for Mango Wine
MANGO
WINE

TOTAL NUMBER OF RETAIL TARGET

YEAR PRICE STORES CUSTOMERS REVENUE

2018 2,450 5,231 20% 2,563,190

2019 2,450 5,726 20% 2,805,740

2020 2,450 6,221 20% 3,048,290

2021 2,450 6,717 20% 3,291,330

2022 2,450 7,212 20% 3,533,880

TOTAL
REVENUE 15,242,430

Table 19. Sales Forecast for Alamanga Chips

ALAMANGGA

TOTAL NUMBER OF TARGET

YEAR PRICE RETAIL STORES CUSTOMERS REVENUE
2018 3,250 5,231 30% 5,100,225
2019 3,250 5,726 30% 5,582,850
2020 3,250 6,221 30% 6,065,475
2021 3,250 6,717 30% 6,549,075
2022 3,250 7,212 30% 7,031,700
TOTAL
REVENUE 30,329,325
5.6 Evaluating 4 P’s of Competitor

Profood International Corporation is the largest Philippine based dried fruit

producer and the standard bearer of world class processed fruit products from the

Philippine Islands.

From the small company that once catered only to the local market, Profood

International Corporation has grown to become the leading producer of various dried

fruit, preserves, purees, concentrates, and juices. Its products are available all over the

Philippines including San Jose City, and exported on many countries in Asia, Middle

East, Europe, North, Central, and South America, the Caribbean, and Oceania.

Product

The Profood International Corp. offers different varieties of products like dried

fruits, IQF (individual quick freezing) products, consumer packing, industrial packing,

juices and nectars, jams, nata de coco, noodles and other products like otap, cookies and

more.

Price

Their products prices ranges from P 175.00 to P 1,300.00

Place

Their main headquarters are based in Cebu, Central Philippines. This makes it

strategically accessible to source mangoes year round from throughout the country. At

present, the company has four manufacturing sites located in the north, central, southern,
and western parts of the Philippines to be close to the sources of various regionally grown

fruits.

Promotion

Profood recently open a Profood Gallery to promote Philippine tourism by giving

the tourists more reasons to come to Cebu. Aiming to be another tourist spot in Cebu, this

gallery is initially open to foreign Korean tourists. Other foreign and local tourists will

follow when the gallery’s amenities are complete.

The gallery aims to bring in tourists who are curious about the Philippine mango,

especially the world-renowned Philippine dried mango, by having exhibits on mango

growing and other interesting qualities of the fruit. It also educates people about Profood

International Corporation in general: its history, the products it offers, and an overview of

how these products are made through exhibits and a factory tour. For a minimal

admission fee, the tourists also bring home a beach bag full of goodies

They also have their own website and a facebook page to reach their other

customers through social media.

 Figure 8. Facebook Page of Profood International Corp

Figure 9. Promotional Campaign of Profood International Corp

Ocean Fresh Tahong Chips (Manufacturer)

Another competitor for Mangifera Company is the Ocean Fresh Tahong Chips

Manufacturing Company. It is a manufacturer of non-essential business in Bacoor

Cavite. They can possibly impose a big threat for Mangifera Company because they offer

the same type of product which is chips.

Product

Ocean Fresh Tahong Chips is a single proprietorship company that processes sea

based product. It’s most popular product is the Tahong Chips (Asian green mussels)

which is made from green mussels’ meat, seasoned with flour and special spices but with

no added preservatives.

Ocean Fresh Tahong Chips. This is an ideal pasalubong or food-gift and has

gained great popularity among the balikbayans. It is rich in iron, iodine, calcium and is a

great alternative to commercial junk foods. The rich-tasting and crunchy chips are ideal

for snacks, side dish, toppings or for use in any healthy food recipe. It is packed with a

specially-made (Arengga) vinegar. It is ready to eat but may also be used as an additive

to any recipe.

Adobong Tahong, Lumpiang Tahong, Crispy Tahong, Other Tahong Products.

Veggie Chips offered by Profood International Corporation are Malunggay,

Ampalaya, Kalabasa, Carrots, Saluyot, Onion, Ginger, Garlic, Banaba, Sambong and

Lagundi Chips.

Price

Table 20. Price list of Ocean Fresh Tahong Chips products

Product SRP Wholesale Price

Tahong Chips Small (45g) P 25.00 P 18.00
Tahong Chips Medium P 60.00 P 45.00
(100g)
Tahong Chips Large (200g) P 110.00 P 85.00
Crispy Tahong (100g) P 150.00 P 125.00
Veggie/Herbal (70g) P 45.00 P 30.00
Veggie/Herbal (tumbler) P 25.00 P 18.00
Veggie/Herbal SUP (100g) P 85.00 P 60.00
Malunggay Chips (200g) P 150.00 P 120.00
Ampalaya Chips (200g) P 150.00 P 120.00
Sinamak Organic Vinegar P 70.00 P 45.00
(375ml)

Place

The factory of Ocean Fresh Tahong Chips Manufacturing Company is currently

located at 162 Navarrte St., Sineguelasan, Bacoor, Cavite, Philippines

Promotion

They use social media as one of their advertising tool to promote their product.

They have their own Facebook page named as “Ocean Fresh Tahong Chips”. All of the

products they offer are posted on their Facebook page altogether with its information.
Figure 10. Facebook Page of Ocean Fresh Tahong Chips
 Table 21. SWOT Analysis of Mangifera

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• First to offer • Few product • Can offer new-to- • Strong brand of the
Alamangga Chips Variation and market product competitors
product product
assortment • More promotional • Government
• Promotional instruments and programs (train law)
allowance given to activities
the retail stores

• Raw materials are in

low

• Strategic place

• Social Media page

specifically facebook
page wherein the
customer may get
updates and may give
their comments and
suggestions
Strengths

Mangifera Company is the only company who will offer the Alamangga chips,

this product is new to the market. Promotional allowance will also give to the distributors

specifically to the retail stores. The raw materials used in producing product are low cost

but with good quality. The location of the Mangifera is also strategic since it is large

enough and it is not too far to the main supermarket of the city. Strength of the company

is its facebook page because customers can see updates and they can give comments,

suggestions and feedback to the products.

Weaknesses

The Company’s weaknesses are few in product assortment and product varieties

since the Company only offers dried mangoes, chips, jam and wine.

Opportunities

Since the company will offer Alamangga which is new-to-the-market product so

that there is big possibility that we still make and produce another is new-to-the-market

products

Threats

The threats that may face by the Mangifera Company are: the competitors of the

company has already a strong brand and also the train law is also a threat since this may

affect the operation of the company in terms of the product price and production cost.
 5.7 Evaluating 4 P’s of Mangifera

Using the marketing mix strategy, the company may ensure that its product will

satisfy the needs of the market and this product will be put in the right place, will be sold

at the proper price and will be promoted effectively. This marketing mix strategy will be

using the evaluation of 4Ps: the product, the price, the place and the promotion.

Product

The Mangifera Company is already offering different varieties of quality

processed mango products and these are already offered in the market. The products of

Mangifera Company are:

• Dried Mangoes

These are mangoes naturally dried under the sun. The company is offering two

types of dried mangoes – the dried ripe mangoes and the dried unripe mangoes.

Figure 11. Actual photo of Alamanga Chips

• Mango Jam

Aside from ripe mangoes and sugar, the Mango Jam offered by the Mangifera

Company uses honey for its additional flavor.

Figure 12. Actual photo of Mango Jam

• Mango Wine

Mangifera Company also offers Mango Wine which is made of fermented

mangoes.
 Figure 13. Actual photo of Mango Wine

Price

The price charged to the product has a large impact on the company sales. If the

product has a smart price then the customers’ willingness to pay will be maximize. If

more customers are willing to pay for the product then it means more sales. Mangifera

Company uses cost-plus pricing strategy in which the price will get through calculating

the cost and adding mark-up. To arrive at the price of the product, the company will add

the fixed costs, variable costs which have gone into making a product such as raw

materials and labor and then the profit margin.

Table 22. Product List and Their Prices

SUGGESTED RETAIL PRICE PER BOX

PRODUCT
PRICE (for retail stores)

Dried Unripe Mangoes 40.00 per 120g 2,150 (60 PCS)

Dried Ripe Mangoes 40.00 per 120g 2,150 (60 PCS)

Mango Jam 80.00 per 240mL Jar 1,700 (24 PCS)

Mango Wine 230.00 per 500mL Bottle 2,450 (12 PCS)

Alamangga 60.00 per 150g 3,250 (60 PCS)

Place

The main location of Mangifera Company is in Barangay Tulat, San Jose City,

and Nueva Ecija, Philippines. On the ten years of its operation, Mangifera Company is

already distributing its products on different retail stores at San Jose City, Nueva Ecija,

Philippines. The company chose this location because it is a good location since this

business also needs a storage center aside from the office and factory. Aside from its

size, this location is also strategic since it is not too far from the main supermarket of the

city.

Promotion

Mangifera Company has a sales team who are responsible of communicating to

the different retail stores, closing deals and engaging in a sales contract. The company’s

uses both push and pull strategy. Push strategy in which we promote our product to the

channel members specifically to the retail stores. To be specific the company has sales
agents who are responsible on the promotion of the products to different retail stores. We

chose this strategy because the retail stores will be responsible in promoting our products

to the final consumers.

However, we are not totally sure that our product will be promoted effectively so

that our company will be giving each retail stores a promotional allowance that may

motivate retail stores to promote our product. Aside from this, there is a distribution

supervisor who is responsible for monitoring the distributors of the Mangifera Company.

The company also uses pull strategy in which promotion is directly given to the

final consumers so that the retail stores will be motivated to offer the product if the

consumers already demand for it. To be specific, the company promotes the product to

the consumers by conducting free taste. The company will be conducting free taste most

especially for the new-to-market products.

Aside from the push and pull strategy, the company has already facebook page,

“Mangifera Company”. This page includes the information about our company such as

contact number, address and the products we offer. The Marketing department operates

the facebook page; they are responsible of uploading company updates and answering

customers’ questions.
 Figure 14. Facebook Page of Mangifera Company

Figure 15. Facebook Page of Mangifera Company

5.8 Proposed Marketing Program

Marketing is everything a company does to acquire customers and maintain a

relationship with them. The ultimate goal of marketing is to match a company's products

and services to the people who need and want them, thereby ensuring profitability.

Mangifera Company is also using some promotional and marketing strategies to ensure

that products are being sold and customers are being satisfied.

The target market of Mangifera Company are those who like to eat mango

products, specifically the Filipino market. The goal of the company is to provide mango

products even during off season and to make these products positioned in the minds of

the people as something that can be consumed on daily basis.

The table below shows the strategies of Mangifera Company per month to ensure

profitability.

Table 23. Marketing Program of Mangifera for one year

Month Marketing Strategy

January • Round-shaped packaging of products for New Year (promote

through social media and advertisement board located in San
Jose City)

February • Valentine’s day inspired packaging print (promote through

social media and advertisement board located in San Jose City)

March • “Free Delivery” for retailers who will order 200 pcs or more. (to
encourage display of the goods on the store shelves and/or
stocking large quantities)

April • Assorted powder flavour of mango chips in one packaging,

some chips included will not taste so pleasant to have some fun
guessing which taste good and not in April Fools. (promote
Table 23. Continue…..

through social media)

May • Survey done through Facebook page, customers will be asked

what their requests on the products are.

• The requested product will be prepared.

June • New requested product will be available for sale (limited to 500
orders)

July • Free taste through brick and mortar retailers (to remind them of
the products and to attract new customers)

August • Buy more save more! promo for resellers

Minimum order of 80 pcs and as the quantity increase, the

discount also increases.
September • Buy 1 take 1 promo for products (available for sale in retail
locations)

October • Promotional Activities done to increase orders:

Discounted price for the first 50 resellers (minimum order of 50
pcs)
Table 23. Continue…..

Free taste through the brick and mortar retailers

Promotions done through the social media platform
November • Halloween inspired packaging print (promote through social
media)

December • Christmas inspired packaging print (promote through social

media)

• Christmas bundle

Mangifera Company products will be available for sale through retail locations

and social media. Our promotional goals are to continuously increase the awareness

about the existence of the product and to make people crave for the mango products

regardless of seasons. The marketing activities of the company also focus on establishing

good relationship and business with the retailers (and/ or resellers). Throughout the year,

the company is continuously trying to serve products that will satisfy both the retailers

and the final consumers.

The packaging of the products will be customized to match Halloween,

Christmas, New Year, Valentine’s Day, and the product itself will have some twist to it

on the month of April. For the month of March, free delivery is available for the retailers

(and/or resellers) who will order 200 pcs or more products. Survey will be done on May

to gather information about the requests of the customers on the products, and for the

month of June, the new requested product will be available for sale, limited to 500 orders

only. For the month of July and October, promotional activities are done, such as free

taste through the brick and mortar retailers to attract new customers, promotions through

social media, and discounted price for the retailers (and/or resellers).
Table 24. Gantt Chart For Marketing Aspec

GANTT CHART FOR MARKETING ASPECT

Market Description Completed All Resources

Demand

Supply

Projected Sales Forecast

Proposed Marketing
Program

Gantt Chart