Feasibility Marketing Plan – Lumber Business

MARKETING PLAN OF MADERA SAN JOSEmerchandising Tools Madera San Jose, from the name itself, go forth offer forest products specifically hardwoods or walk that would be further apply for production of varied products such(prenominal) as wood article of furniture, residential or commercial structures, and etc. Madera is the Spanish word for wood. Madera San Joses hardwood products go forth be expounded on in the next part of the study the marketing be after of the proposed occupancy. This part of the feasibility study determines the different types marketing programs prevalent in the tone industry that stand serve the Madera.Given that the proposed line is a medium-scale beat commerce in the obligation of Pampanga, the province of Muebles San Jose and also the proposed province for the location of Madera San Jose, the free radical gathered few and simple but remedy effective marketing programs that atomic number 18 implemented by owners there to make their business k nown. They can also be considered as more(prenominal) of marketing tools. Firstly, the businesses give free merchandise such as calendars, face towels and shirts. These materials bear the logo or name of the business as well as its location.Mostly the merchandise is given to twain potential and liege patrons for them to maintain and spread awargonness of the business. This practice has been by not just in Pampanga but in other places, too, and not just by lumber business owners but by other business owners, too. Except for the calendars, that argon given just once a family, other merchandises are given depending on the owners disposal or whenever the owners want to, and how everydayly they want to. It is proven effective because most businesses that deal d adept it are the long-running ones compared to others that have not.The costs associated with these merchandises are as follows Merchandise Price & Quantity Calendars Php 10. 00 per 1 pc. for 30 pcs. (in a bulk) Face towel Php 15. 00 per 1 pc. for pcs. (in a bulk) Shirts Php 80. 00 per 1 pc. for 100 pcs. (in a bulk) Secondly, businesses in Pampanga patronise basketball teams in town leagues. quality businesses there have done it, too. In exchange, their logos are seen on the basketball players jerseys. hoops leagues are held more than once annually, sometimes at very frequent intervals. In these events, usually many people come to watch.Aside from basketball jerseys, there are also banners characterisation the businesses logos and locations. These are seen by owners as opportunities for the business to be recognized so they sponsor. Lumber businesses in Pampanga have done so, too. In Pampanga, the total cost for sponsoring a team is Php 10,000. 00. Following is the breakdown of express amount that will be paid in case Madera sponsors a basketball team. Expenses Price Basketball jerseys Php7,200. 00 (Php 600. 00 x 12 jersey sets) Banners or Posters Php 2,000. 00 Miscellaneous Php 800. 00The third and the last marketing tool employ by most business owners in the area as well as large(p) one peso discounts. This practice has long been used by business owners from large department stores to local lumber business owners. The practice gives exerciseers the mentality that they get to save more while at the uniform time, not affecting much the costs of incurred by the business for that certain item considering that there were mark-ups added. Marketing rumple (4 Ps) The marketing plan mainly e drudgeates on the 4 Ps of a business the merchandise, Place, Price, and Promotion.These 4 Ps are also considered the marketing mix of the business that determine what the business has to offer and what are the impart for this offer to reach the consumers. In this part of the study, the said principles are expounded on in the context of Madera San Jose. Product Usually, the low gear principle of the 4 Ps tackled in marketing plans is the Product. Madera San Jose will offer lumber to be specific, hardwood products. In the simplest sense, lumber is wood in any stage from the time it is cut from a maneuver through its use in construction or paper, (What is Lumber Homepage, 2013).Lumber is cut from a tree through a process called felling. After it is cut and shipped, it is supplied either rough or finished. Finished lumber is primarily used in the construction industry. Most finished lumber is cut from softwood trees such as pine, fir, or cedar. Some rough lumber includes hardwoods for use in high-grade wood floors (What is Lumber Homepage, 2013). Rough lumber is raw and uncut to standardized measurements. It is used for furniture or specialty manufacturing where custom cutting and shaping is required.Given that Muebles San Jose concentrates on furniture making custom-made or otherwise Madera San Jose will mainly sell rough lumber in the form of hardwoods. The hardwood lumber products to be offered by Madera are Lauan, Yakal, Teak, Gmelina, Malabuaya, Narra, Ma hogany, Apitong, and Antipolo. interchangeable the competitors, Top Lumber and Angeles LCM Construction Supply, Madera San Jose will get most of its woods from the suppliers in Tarlac. on a lower floor are the illustrations of the different hardwood products to be sold by Madera San Jose. Lauan YakalTeak Gmelina MalabuayaNarraMahoganyApitongAntipolo These lumber products, as mentioned, are to be polished further for production of more products such as trimmings for structures and more especially, furniture. Place The second P stands for Place. Madera San Joses wood warehouse and store itself is to be established in Angeles City, Pampanga. Pampanga is the home of Muebles San Jose. However, be that as it is, Muebles is in Mabalacat, not Angeles City. Angeles City was chosen due to its close proximity to Mabalacat Mabalacat borders Angeles City in the last mentioneds northern part.Secondly, it is considered as a first-class highly urbanized city in the country, with its legion(pr edicate) residential areas as well as commercial ones such as restaturants, malls, universities and even tourist descry such as ancestral mansions and houses. These structures require a lot of wood both for the building itself as well as the furniture. Since the site is a highly industrial part of Pampanga, it is accessible to its suppliers from both Tarlac and capital of the Philippines MARSSE Timber Suppliers, Tarlac and Mango and Timber Plantation, Manila the latters office is located in Taguig.Each supplier supplies 3,000 board feet of wood monthly. The exact location of Madera San Jose in Angeles City will be in Brgy. Pandan. The proposed business will actually be located at Pandan Road, Brgy. Pandan, Angeles City, Pampanga. There are about nine puroks laid in Barangay Pandan. These are Old Pandan, Land Tenure, San Ignacio Subdivision, Springside Subdivision, Citicenter A, Citicenter B, Magalang Avenue Extension, Jaovil Compound, and Saint Ignatius Subdivision.There are al so several establishments furniture shops, schools (public and private), barangay hall (of Pandan and of other nearby barangays) that are relevant to the business. The exact location where the proposed business will be launched is watchably located on a main road and is situated in a commercial-residential area. This is intend such that the business will be highly accessible to the chance buyers and to the greater market, specifically businesses indoors the vicinity and residents living in the area, who may have probably become the clients of Madera San Jose.The lot measures 300sq. m. and the lumber business is expected to occupy 280sq. m. Originally, the location was a bare land. It was acquired it years before by Mr. Manabat for the purpose of expanding his first business. Price The price for the lumber of Madera San Jose was also gathered from the standard prices of woods per board foot in Pampanga. Following are the prices Hardwood Price Per Board Foot Lauan Php30. 00 Yakal Php40. 00 Teak Php60. 00 Gmelina Php26. 00 Malabuaya Php30. 00 Narra Php85. 00Mahogany Php30. 00 Apitong Php30. 00 Antipolo Php35. 00 One will notice that these prices are also the same as those of the competitors. This is because of the fact that the owners want to use competition-based pricing. Competition-based pricing is the strategy used when a firm uses the competitors prices as benchmarks. In Maderas case, since there are merely two (2) competitors nearby that also offer hardwood lumber Top Lumber and Angeles LCM Construction Supply, and both have the same prices, Madera used their prices.Same prices are used to get more people from the competitors pool of patrons, and no decreases are made either, so that Madera an establish stability since the business is new and so that there will be allowance for possible future discounts. Also, other lumber dealers sell at the same prices and the customers are used to the standard. Since Madera San Jose will be a new addition, the busin ess will also use the same prices to establish its place in the market. Promotion Promotional tools used by lumber businesses in Pampanga have been mentioned already in the first part of this portion of the study.Going back, the three tools are 1) giving of printed merchandise, 2) sponsorship of basketball leagues, and 3) one-peso discounts. The group recommends Madera San Jose to use the first and second tools printed merchandise and basketball league sponsorships. Giving printed merchandise such as calendars, face towel, and shirts is not something new in the small to medium industries but they are helpful in spreading knowledge of the business. For instance, buildings whether private of public, large or small that display the calendars will help in making the new business known.It is also an ensample way because calendars are displayed and looked at all year round. As for shirts and towels, people who wear or use them are mostly people from the manual labor sector. These peop le tend to move and work a lot in the local community. Without spreading data on the business verbally, these people display the business just by moving around. It will help that the printed discipline not just contains the business logo and name but the business address as well. The second tool is the team sponsorship in basketball leagues.As mentioned, basketball leagues are hugely-crowded events. Some people from other towns even visit to watch. In the basketball leagues, aside from banners that can be displayed around the court, Madera can cod exposure through basketball jerseys with the business logo printed on them. Aside from having huge crowds to whom Madera can be exposed to, basketball leagues are held more than once a year even more ofttimes if the area has many playing teams. Madera will have more exposure time. One might interview why the third tool was not applied.This tool is the one-peso discount strategy. It would be good for the business. However, it is also d eemed ideal if this strategy will not be applied in at present when the business is still new in the industry. Customers should be accustomed first with the actual prices before being given the discounts. Marketing Plan Conclusion In sum, unlike other industries, the lumber businesses in Pampanga do not highly focus on marketing. If one will notice in this study, this marketing part does not typify much information compared to other aspects such as the operational plan and financials.This is so because first and foremost, the lumber industry in Pampanga mainly relies on word-of-mouth as the major marketing agenda. Owners, aside from giving free merchandise and some basketball leagues do not use famous media such as the television, radios and magazines. Some even do not have a marketing strategy at all, or if they do, they do not practice it for the long run. They just rely on word-of-mouth. In short, the most certain and fool-proof way of gaining more customers for Madera San Jos e is based on its products and how these will make the customers satisfied enough to spread information about them.