Madera San Jose, from the name itself, will offer wood products specifically hardwoods or lumber that would be further used for production of different products such as wood furniture, residential or commercial structures, and etc. Madera is the Spanish word for “wood”. Madera San Jose’s hardwood products will be expounded on in the next part of the study - the marketing plan of the proposed business. This part of the feasibility study determines the different types marketing programs prevalent in the lumber industry that can help the Madera.
Given that the proposed business is a medium-scale lumber business in the province of Pampanga, the province of Muebles San Jose and also the proposed province for the location of Madera San Jose, the group gathered few and simple but still effective marketing programs that are implemented by owners there to make their business known. They can also be considered as more 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 both potential and loyal patrons for them to maintain and spread awareness of the business. This practice has been done 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 are given just once a year, other merchandises are given depending on the owners disposal or whenever the owners want to, and how frequently they want to. It is proven effective because most businesses that have done 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 sponsor basketball teams in town leagues. Lumber businesses there have done it, too. In exchange, their logos are seen on the basketball players’ jerseys. Basketball 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 portraying 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 said 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 800.00|
The third and the last marketing tool used by most business owners in the area as well as giving one peso discounts. This practice has long been used by business owners - from large department stores to local lumber business owners. The practice gives customers the mentality that they get to save more while at the same time, not affecting much the costs of incurred by the business for that certain item - considering that there were mark-ups added. Marketing Mix (4 Ps)
The marketing plan mainly elaborates on the 4 Ps of a business: the Product, 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 channels 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 first principle of the 4 Ps tackled in marketing plans is the Product. Madera...