GROUP 6

GROUP 6

MarketIng Plan

Table of contents Background Analysis Mission Vision Objectives Executive Summary History Nature of the Industry Current Marketing Situation Lambanog Making Process Properties of the Product Product Quality

Benefits of the Product Major Users of the Product Marketing Program Situation Analysis SWOT Analysis Factors Affecting the Market Marketing Product Manufacturing Process Marketing Strategy Promotion Financial Projection Implementation Control

Background AnalysisMission An industry unified in its commitment to innovation and quality resulting in the production of world class wines in Philippines. Continuous improvement the quality and uniqueness of the product, enhancing its image and reputation with local, national and worldwide consumers.To provide satisfaction to customers. Also to prove that drinking Lambanog has a good effect on our bodies.

vision The El Batangueno Polding Special Purong Lambanog San juan Batangas industry will double its market share and reach measurable sales on a national level. To be the leading, most-trusted and most-efficient distributor of Lambanog creating distinctive, measurable and innovative value for our customers.OBJECTIVESImprove quality and uniqueness of El Batangueno Polding Special Purong Lambanog San Juan Batangas.

Enhance the image and reputation of El Batangueno Polding Special Purong Lambanog San Juan Batangas.

Expand the market share of El Batangueno Polding Special Purong Lambanog San Juan Batangas.Improve the profitability of the El Batangueno Polding Special Purong Lambanog San Juan Batangas. Maintain the rural character of the San Juan landscape through expansion of Lambanog industry.

Executive Summary

History Lambanog wine, also called coconut vodka, is an alcoholic beverage produced in the Philippines. It is a very popular alcoholic drink among men and women in the rural areas of the Southern Tagalog provinces, where it is widely produced. It is widely enjoyed by the locals and festive occasions are almost incomplete without it . It is free from artificial chemicals because it is made purely from coconut sap. Lambanog wine is produced in the Southern Tagalog region particularly in the provinces of Quezon, Laguna, and Batangas. The Quezon province produces most of the lambanog wine because of abundance in coconut plantations in the area.

Nature of the industry In 1996, the Philippines, Indonesia, and India accounted for 69.6% of the worlds coconut production of 9.6 million metric tons. About 25.4% of the Philippines arable agricultural land was planted with coconut in 1997 (Sarian 2010). Since then, efforts to increase countrys competitive share of the coconut market have been underway, including the push to plant more coconut trees, and to develop new coconut products.

The Philippine coconut industry is generally viewed as a monopoly, controlled by a very privileged few. Small time coconut farmers livelihoods are being threatened as an increasingly powerful United Coconut Planters Bank, has been buying out or absorbing most of the market share. In response, these farmers have become more organized and united over the past decade (Ravi, 2009). The lambanog industry, although it has been around for centuries, takes up a fairly small share of the overall coconut industry.

Current marketing situation In san juan, batangas,, drinking lambanog is usually a communal thing men sit around in a circle and tagayan will ensue. The men take turns drinking shots from a cup placed in the middle of the group. Usually, there is also someone singing and playing the guitar to add to the festivities; he takes his turn at drinking too, so the music gets more interesting as the drinking goes on. It was made an export product in 2001 and has attracted foreign markets. To attract the youth and expand its marketing possibilities, it is now marketed and sold in different flavors such as cherry, jack fruit, apple, orange, four seasons, mint, etc.Lambanog Making Process Every afternoon, themangangarit(the one who climb the trees to get the sap) would attach bamboo receptacles to the coconut flowers on which the sap would drip. The following morning, the mangangarit would climb the tree again to collect the bamboo receptacles with the coconut sap. The collected sap would undergo fermentation processto producetuba or coconut toddy. When tuba undergoes distillation, lambanog will be produced. Lambanog has alcohol content of80-90 proof.

PROPERTIES OF THE PRODUCT PRODUCT QUALITY As far as the environment is concerned, the lambanog industry does not pose any major threats, since it is in their best interests to encourage more tree planting. To achieve, quality product the business will ensure high customer satisfaction through the successful attainment of the product styles which will be done by the lambanog manufacturing. Both the product and the process do not include any harmful chemicals; in fact, it is being marketed as an organic product.

Benefits of the products Lambanog can be one of the best drinking beverages for socialization because the consumption of alcohol in moderate amounts can lead to certain psychological needs .Low levels of alcohol can trigger stress reduction, easy feelings of anxiety and help consumers to reduce tension. It is usually use as part of their Filipino celebration such as fiesta, birthday, etc. It can also be used in baking cakes, some baker uses lambanog in baking. It is widely enjoyed by the locals and festive occasions are almost incomplete without it.Major users of the Product

The major users of the product are those who consume alcoholic drinks and those who love to party and make lambanog as part of their celebration. It also has good benefits for the health because it is made from the coconut. Coconut water is good help for kidney and urinary bladder problems, as you may have notice, you urinate frequently when you drink coconut water.

Marketing Program Direct selling is the most common way to distribute the product. The processors use their own residences as the main point of distribution. Buyers go directly to their houses to purchase lambanog wine. Some have signage in front of their houses to attract more customers. Their products are distributed through different channels such as wholesalers, retailers, local consumers, and consumers from other towns and provinces. Straight forwardly, marketing the product to their potential consumers. It is a way to let people know about their product and to hold their interest long enough for them to know how their product can benefit them, without using the television or radio for advertising. The business venture will provide discount to customers during the holiday/season to attract more clients and have a greater demand. Product exhibit and sampling will be used as a part of product promotion. A taste-test campaign will also be conducted for product quality testing.Situation Analysis

StrengthsAmong the strengths include a relatively high quality of wine in terms of alcohol content, long and solid experience in lambanog wine processing, skilled labor in terms of tuba collection and distillation process, a low bargaining power of suppliers in terms of coconut farm which also contributes to the low production costs.It is not seasonalAffordable compared to other drinking beveragesGood market situation

Swot analysisWeaknessesThe industry suffers lack of tuba during rainy season which makes wine production relatively unstable during this period.There are many competitorsTime consuming in processing the productThe perception of some that lambanog are unhealthy and not good in taste. Other weaknesses that stem from wine operations are the use of traditional distillation process which may affect the overall quality of the wine and absenteeism among workers. The product is also undifferentiated in terms of taste, color, alcohol content, quality, and even packaging. OpportunitiesOpportunities Prospects for the lambanog wine industry is good as it has been identified by CITEM as an export potential and it enjoys support from the government. There is also a trend towards organically processed foods and beverages as more people have become health as well as environment conscious. There is also an unmet demand in nearby towns and provinces.It could maximize the use of coconut plantations in producing lambanogIt is needed occasionally

Threats Threats As alcoholic beverage is considered a luxury, a slowdown in economy affects the lambanog wine industry. In addition, competition from other wine and alcohol products is relatively high and buyers can easily switch from one product to another. Not all people are alcoholic drinkers.Well-known manufacturers within the same location will be the great competitors of the business.The business will be common in the market, it may not easily have good market standing and also it may encounter difficulty in terms of sustaining demand of the customers that may lead to its saturation point or declining stage.

ProblemsIgnoring the productsIt is not recognized by the customers because it is a simple drinking beverage compared to othersNegative feedbackIts physical appearance is very simple because it uses an ordinary bottle.SolutionChange the selling strategyThe used strategy is by giving the customers some flyers in the opening of the store but if that strategy wont work, we will be using another strategy, and it would be direct selling.Improve product qualityInnovation in packaging

FACTORS AFFECTING THE MARKET

CompetitorsThe prices are too high compared to our competitors.Lower PricingWe will compete in pricing of the products, we will make our prices lower than our competitors.MarketingProduct Lambanog is wine made from coconut. It is famous for its potency that normally carries about 80 to 90 proof variations. It has been passed down throughout generations of coconut plantation farmers. The process involves collecting the sap from the coconut flower, similar to rubber tree tapping. The sap is then cooked and fermented to become tuba, a popular coconut toddy. The tuba is then distilled to make lambanog.

Manufacturing ProcessI.CollectingCoconut sap is the liquid tapped from the unopened flower (spadex) of coconut tree. The sap when collected must be pearly white in color and sweet in taste and has the characteristic coconut sap smell.II.ReceivingCoconut sap packed in carbouys (20-L capacity) is received at the production area.III.Transferring to FermentationThe coconut sap is filtered and manually transferred to the fermenting container.IV.FermentingCoconut sap is allowed to ferment in large plastic drums. Fermentation period takes about 3-4 days to produce an alcohol content of approximately 7-8%.V.Transferring and HoldingThe alcoholic liquor is transferred to a holding tank that is usually located near or beside the distillation area. The alcoholic liquor stays in the holding tank until distillation set-up is ready for the next batch.

VI.DistillationThe traditional process of distillation is the batch type pot-still process with rice hull or wood as source of fuel. The alcoholic liquor is heated. The initial distillate (head or bating) which contains the undesired methanol and other components is separated and set aside for other purposes. It has a high proof of content (concentration: 110 proof). The succeeding distillates that are lambanog have lower alcohol content. However, as distillation proceeds, the desired alcohol content of 80-90 proof must be achieved. The distiller uses an alcohol meter (hydrometer) to check the alcohol content. It varies from 80 to 90 proof.The remaining liquor in the distillation vat, which is the tail, is discarded. It is composed of high alcohol like fusil oil that boils at higher temperature.

VII.PackagingThe product (alak) is transferred to different sizes of bottles and container in full capacity for delivery or storage.

VIII.Storing To put the lambanog in a place where it is available, where it can be kept safely.

Marketing Strategies To promote our product Lambanog we will put a twist to an ordinary lambanog by creating different flavors of it such as pineapple, cherry, mango, strawberry, blackberry, melon and even bubblegum. Creating a variety of flavors of Lambanog is not enough the packaging of it should also considered for it to become more appealing. As the product package considered as the silent salesman it speaks about the products quality and gives impression about the companys reputation.

For it to be known we have facebook page so for more information just visit the page El Batangueno-Polding Lambanog.

PRomotion

FinancialPROJECTIONInvestment costProduct Prices Implementation Control