Bauan Technical High School

CHAPTER II
MARKETING PLAN

Product Description
Vanilla Scented Coconut Oil is a new business in the market that produces new
scent of an essential coconut oil for the people of Bauan, Batangas. Several studies have
shown that coconut oil has anti-inflammatory properties, once again due to the high lauric
acid levels. This makes coconut oil a good choice for relieving painful joints and muscles,
and of course, for treating body pains.T
he team considered coconut oil as a product as it is an organic and natural
essential oil, by also Changing the scent of this specific oil may outstand the other
essential oils in the market. The scent that have chosen is the vanilla scent. Vanilla scent
can relieve stress thus for a innovative essential oil. Its scented can have a wonderfully
calming influence on the mind, largely due to the positive associations most people have
with the scent. The smell of Vanilla tends to trigger happy memories – often from childhood
– which can elevate the mood and promote a general sense of well-being. The business’
goal is to provide an effective and affordable product for the target consumers.
We decided to use refined coconut more than unrefined, Virgin (unrefined) Coconut
Oil boasts a delicious, tropical coconut scent and flavor, While Refined Coconut Oil has a
neutral scent and flavor. By making this product we concluded many possibilities on how to
use them, Coconut oil is famous of being an effective oil that can lessen body pains and
even headaches, it can enhance the mood and revitalize the body of customer by applying
and enhailing the scent of Coconut oil. While vanilla aroma is one of those scents that are
natural and have a good smell. Since vanilla is a tropical spice, it goes with tropical fruits
just like coconuts. Vanilla Scented Coconut Oil is an essential oil that has mixtures of
vanilla beans and coconut oil.
The product will be available in two sizes, a 30mL and 50mL bottle of an essential
Int coconut oil. The scent will be only one also, the vanilla scent, and in the succeeding
years, the business will decide whether to add another scent of coconut oil, depending on
the results of the financial analysis of the business through the years.
Customers can use the product in massaging the body, and with the vanilla aroma,
the smell will be long-lasting in the part of the body where the oil was applied because the
product in an oil-based. In conclusion, the business will sell a new scent of an essential
coconut oil in a 30mL and 50 mL bottle with a pure organic ingredients that is effective and
affordable for the consumers.
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To make Vanilla Scented Coconut Oil, the business will be needing these
ingredients:
1. Vanilla beans
2. Coconut
3. Water

Target Market

The initial target market of our product which is the Vanilla Scented Coconut Oil are
the residence of Bauan, Batangas. Specifically those who prefer organic products since it
has no age limit and good for all. Based on the 2020 census, the population of Bauan,
Batangas is approximately 90,819. This municipality is known for embracing the culture
especially to their products and markets as the elders and teenagers are the consumers.
This means that there is a significant market for the business to tap into.
The business aims to appeal in this market by providing an effective, organic, and
affordable essential coconut oil. To create more detailed customer profile, the business
conducted a research about the buying behavior and preferences of the consumers in
Bauan, Batangas.
We have identified several key characteristics and behaviors of our target market in
Bauan, Batangas:

• Active Social Media Users. This factor can be a greatest asset when it comes to
selling of our product. It maybe through Facebook, Instagram, Tiktok, or any other
social media platforms.
• Prefer organic products. Most elders inside the municipality are fond of organic
and natural products (those products that are made from plants).
• Prefer pleasant scent. Because of this factor, we decided to make a new product
that can satisfy their preferred scent especially those teenagers and elders that are
choosy when it comes to scents.
• Budget-conscious. Since our product is made of raw materials such as coconuts
and vanilla, the estimated price will not be too much pricey.
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By studying these factors and key characteristics, we believe that this product will
be preferred by many.

To summarize, Vanilla Scented Coconut Oil’s target market is the people of Bauan,
Batangas, specifically those who prefer organic and effective products. They want a good
scent and affordable products that can ensure by the business.

Demand and Supply Analysis

In order to determine the feasibility of the business, it is important to analyze the

potential demand and supply for an essential oil like vanilla scented coconut oil for the
people of Bauan, Batangas. The demand and supply analysis will help the business
understand the opportunities and challenges that the business may encounter. This section
aims to provide a comprehensive analysis of the demand and supply for the product.

• Potential Demand for the Vanilla Scented Coconut Oil

The demand for vanilla scented coconut oil in Bauan, Batangas is expected to
be high since this is an essential oil for everyone. People are always looking out for an
effective pain reliever and good oil for massaging. The popularity of an essential
coconut oil helps the business to have a great potential demand. The number of
population in Bauan, Batangas is 90,819 based on the 2020 census which presents a a
significant market opportunity for the business to tap into.

• Current Supply in the Market

The supply for an essential coconut oil in Bauan, Batangas is relatively low, a
great advantage for the business. However, there are other businesses that sells and
produce other essential and pain reliever oils that will be the competitors of the
business. Those businesses include Virgin Coconut Oil (VCO), Aceite de Manzanilla,
and other essential oils.

There is a gap on a new scent of coconut oil in the market that the business can fill
by providing an essential coconut oil with vanilla aroma for the people of Bauan, Batangas.
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In terms of pricing, the products will be affordable for the customers since it is only
for sixty pesos for a 30mL vanilla coconut oil and eighty pesos for a 50mL vanilla coconut
oil while the amount or the price of the existing essential oil products are high compare d to
vanilla scented coconut oil.

• Conclusion

The demand for the product is expected to be high since it is essential for
all. The supply for a new scent of coconut oil in Bauan, Batangas is relatively low,
this presents that there is still a gap in the market that the business can fill by
providing an effective and organic essential coconut oil with vanilla aroma.

SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a

SWOT analysis is a technique for assessing these four aspects of our business.

SWOT Analysis is a tool that can help us to analyze what our company does best
now, and to devise a successful strategy for the future. SWOT can also uncover areas of
the business that are holding us back, or that our competitors could exploit if we don't
protect ourself.

A SWOT analysis examines both internal and external factors – that is, what's going
on inside and outside our organization. So some of these factors will be within our control
and some will not. In either case, the wisest action we can take in response will become
clearer once we’ve discovered, recorded and analyzed as many factors as we can. Here's
the SWOT Analysis of our product:

Strength:
Strengths describe what an organization excels at and what separates it from
the competition: a strong brand, loyal customer base, a strong balance sheet, unique
technology, and so on. The strongest parts of our business model and our most
effective selling points. The core competencies of our team and our investments.

• Low Price Product. Because raw materials are the only needed in making the
product, the price is not too high and affordable for the consumers.
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• Strong Brand Quality. The quality of our product is different from other essential
coconut oils because of its scent.
• Ability to sell online. We will provide a page in social media flatform were every
customer can order Vanilla scented product.
Weaknesses:
Weaknesses stop an organization from performing at its optimum level. They
are areas where the business needs to improve to remain competitive:
It is a limitation, fault, or defect in the organization that will keep it from
achieving its objectives.

• Limited Product Recognition: Since our product is new to market, there are
possibilities that we will have a hard time selling our product.
• Limited Product Offering: The process of making of our product is not through the
use of machines that's why it will be hard to produce and offer many of our
products.
• A weak brand.
• New in the industry.
• Competitors can offer similar product quickly.

Opportunities:

A result from our existing strengths and weaknesses, along with any external
initiatives that will put us in a stronger competitive position. These could be anything
from weaknesses that we’d like to improve or areas that weren't identified in the first
two phases of our analysis.

• Online Selling. This type of selling can help us advertising our product on every
social media platform such as Facebook, Instagram, Tiktok, etc.
• Growing markets. The increase of consumers or purchasers in the market can be
a big help to make profit through our product since oils are essential to everybody.
• Prices of raw material.
• Increase product range.
• Add new support service.
• Affiliate relations with related vendors.
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Threats:
It is external factors that may produce a negative impact on an organization.
Businesses often have limited control over such factors, but they can create systems
for managing them, should they arise.
Weakness are areas with the potential to cause problems. Different from
weaknesses, threats are external and out of your control. This can include anything
from a global pandemic to a change in the competitive landscape.

• Many competitors. Because of this factor, we will be needing to put such efforts in
order to improve and sell our products.
• Changing consumer preferences. People don't stick to one product and they
used to try others that's why these changes on their preferences can be a big factor
in our business.
• Increases in price input will affect the pricing.

Projected Sales

This section provides an estimate of the total cost of the project based on the assumption
of the business.

Start-Up Expense
• Research and Development – PHP 50,000
• Raw Ingredients and Materials – PHP 19,000/month;PHP 228,000/year
- Coconut – PHP 3,000
- Vanilla Bean – PHP 7,000
- 30mL bottles – PHP 3,000
- 50mL bottles – PHP 3,000
- Packaging – PHP 3,000
• Marketing Cost – PHP 65,000
• Salaries – PHP 240,000
• Rent Expenses – PHP 24,000
• Utilities – PHP 24,000

Total Start-Up Expense for a year: PHP 631,000

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Start-Up Asset:
Start-Up Cash – PHP 230,000
Long Term Investment – PHP 40,000
Kitchen Tools and Equipment – PHP 10,000
Total Requirements – PHP 280,000

Marketing Program/Strategies

In order to successfully introduce, promote, and advertise the product, the business
must promote a comprehensive marketing plan that aligns with their business’ goals and
objectives. This includes identifying the most effective marketing channels, tactics, and
strategies for their target market, as well as allocating proper and appropriate budget to
execute those strategies.

Based on the target market analysis, the most effective marketing channels for the
business is through social media platforms such as Facebook, Instagram, and TikTok, and
the use of online marketplaces such as Shopee and Lazada for those consumers who are
used to ordering online. For those adults who are not fond of online marketing, the
business will have a house-to-house strategy to introduce and promote the product.

Social media is an important tool in reaching out consumers like teenagers and
some of the adults. Platforms such as Facebook, Instagram, and TikTok can be a big help
in advertising and promoting the product through creating pages and accounts for the
business to share contents of the products such as videos and pictures. These platforms
may also use in gathering feedbacks from the consumers about the business and the
product itself. Online marketplaces like Shopee and Lazada are also an effective way in
promoting and introducing the product as they have a large customer base. These online
marketplaces are helpful for the business to have more consumers. Doing house-to-house
strategy for the people who are not used to ordering online will also help the business to
introduce and explain what are the importance and effectiveness of the product. Also,
through this strategy, the business can utilize flyers that are all about the business and its
products. This strategy can create a strong bond between the consumers and the business
although the business will be allotting time, effort, and money to this kind of tactic or
strategy.
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The following are the effective marketing plan for the Vanilla Scented Coconut Oil:

Social Media:

• Creating social media accounts on Facebook, Instagram, and TikTok

• Posting/Featuring different pictures and videos of the product through these social
media accounts

• Engaging with the target market through comments and personal messages

• Monitoring social media accounts everyday to gather feedbacks Online

Marketplaces:

• Creating accounts on Shopee and Lazada

• Offering discounts to attract customers

House-to-House Strategy:

• Having a house-to-house strategy on the target market’s households

• Explaining and utilizing flyers on different houses in Bauan, Batangas

• Creating a strong bond between the customers and the business

The business must monitor all of its accounts and websites to avoid conflicts and
measure the effectiveness of each marketing activity. The business must adjust its
marketing tactics accordingly to optimize its marketing efforts and achieve its business
goals.

Finally, the business must prepare a contingency plan in case the marketing plan
does not achieve the desired results. The business must identify its potential risks and
challenges that may face and develop a plan to mitigate them.

For instance, if the marketing strategies in online platforms didn’t meet the desired
results, the business may allocate other strategies and pursue the house-to-house strategy
with much efforts. The business must be flexible and know how to adjust in every changes
in the market and in the customers’ preferences.
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In conclusion, in order to successfully introduce, promote, and advertise the
product, the business must promote a comprehensive marketing plan that aligns with their
business’ goals and objectives. By identifying the target market, understanding their needs
and preferences, and implementing an effective marketing strategies, the business can
achieve its goals. The business must regularly monitor the operation and must be flexible
and know how to adjust in every changes in the market and in the customers’ preferences.

CHAPTER III
OPERATIONAL PLAN

Operation Description
The production process of the Vanilla Scented Coconut Oil involves a series of
steps, including the making of coconut oil, the infusing of vanilla aroma, and the
transferring of the final product into the containers. The production will require various
resources, such as raw materials, equipment, and personnel to produce the products.
The production of the proposed product will be six times a week. The estimated
production schedule of vanilla scented coconut oil will be based on the proposed
production capacity of 480 bottles of 30mL essential coconut oil and 480 bottles of 50mL
essential coconut oil per month.

Production Process

Vanilla Scented Coconut Oil’s production process involves a series of steps that
begin with producing oil from coconut and end with the final product. This section will
discuss the detailed steps involved in creating the proposed product.

Step 1: Making coconut oil

The first step in the production process is to make coconut oil. The business has its own
location for manufacturing the product. Using the equipment for de-shelling the coconut
and hacksaw for cutting it, the coconut will ready to use. Using kitchen tools such as pots,
spoons, mixing tools, and gas stove, the team can create oil out of coconut.

Step 2: Infusing the vanilla aroma to the coconut oil

Add water to a pot or broiler, then place the jar of coconut oil onto it. Make sure that the oil
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has its cover. Then, add the vanilla bean that has been cut into halves to the oil and stir it
for about 20-30 minutes. After that, place the pot or broiler in a cool, dry place.

Step 3: The transferring

After making sure that the oil is cool, transfer it to the 30mL and 50mL bottles. Make sure
that the bottle is properly sealed to avoid problems. Place it in a wide space of inventory to
assure the safety. When delivering the product, the oil will be properly sealed in a small box
with a logo of the business on it.
The entire production process will take 2 hours to be finished. This production
process is efficient, effective, and safe. It enables the business to produce a new scent of
coconut oil into the market.

Plant Location
The plant location is an important factor in order for the business to succeed. The
location must be located in an area that is accessible for the suppliers and customers, and
an area with a good supply of raw materials needed.
There are included expenses in terms of plant location such as rent expense,
electricity, and water expenses.
The table shows the amount per month of those plant location expenses.
Plant Location Expenses Amount
Rent Expense PHP 2,000
Electricity PHP 1,000
Water PHP 1,500
Note: The amount is estimated and may vary according to the actual usage of the utility
providers.

Plant Layout
The production area of the business will be divided into two sectors, the production
and manufacturing area, and the inventory. On the manufacturing area, the products will be
made there. The making of the vanilla scented coconut oil and the transferring of the
products into the containers or bottles. On the other hand, the inventory area is where the
final products that are already sealed are located. The business will make sure that the
products are safe on that area and will not harm people.
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Equipment Requirement

To develop and produce the proposed products, the business will be needing
machines to be easier for them to produce and manufacture products.

Equipment/Supplies Quantity Price per Unit Amount

De-shelling Machine 1 PHP 8,000 PHP 8,000
Gas Stove 2 PHP 2,500 PHP 5,000

Therefore, the business will be needing two equipments in order to produce the proposed
product.