I.

Current Marketing Situation

Food Industry, It is the largest industry in the Business world. Chicharoom

promotes health and health has a major impact in the society today because people
demand food that has minimal bad factors such as cholesterol. Oyster mushrooms
are low in production cost that is profitable to the researchers. Mushroom cultivators
use argo-waste as substance materials in growing mushrooms and it is organic and
cheap. The Philippines is perfect for growing tropical mushrooms because of its
warm climate and has argo-climatic regions.

A. Market Description

The researchers target market for their product are the residents of Dagupan
City. The type of market segmentation the researchers decided to use is the
demographic segmentation because they want to develop the local market so that
the researchers could gain a large portion of the market. Chicharoom aims to give
their consumers quality, healthy, and delicious products in order for the customer to
recommend the products to others, and that they will buy again.The specific market
segments that Chicharoom will target are the students, health conscious, and
parents. The chicharon mushroom will be sold at distribution channels such as
restaurants, pasalubong center, and etc.

B. Product Review

Mushroom Chicharom is a kind product in the food industry that provides nutritious

element for the costumers compare to its competitors. For the consumer to satisfy
their cravings, Chicaroom produces various flavors such as cheese, barbeque, sweet
and spicy, sweet corn and house blend to maximize its deliciousness and aroma.
The researchers considered how to attract customers by providing high-quality
packaging of the product to manifest the crispiness. The packaging is made to
secure foods from other harmful substances done by a proper seal and double cover
internally. The products’ price is Php 99.00 per pack. This business aims to sustain
the cravings of the costumer by having a delectable and affordable product.

C. Competitive Review with Segment Analysis

Chicharoom found a way so that the typical chicharon is still irresistibly delicious
whilst having good nutritional values for the consumers. Although new, we have a
few competitors that have the same target market which are the restaurants and
malls alongside Dagupan City.

PAVIA’S Chicharon Mushroom

A Chicharon Mushroom that only has one flavor of chicharon located at CSI’s
grocery store. The package is around 150 grams that is worth 100 pesos.

Fish Skin Chicharon

This product is made of fish skin dried and fried with flavor found at SM Dagupan
in their grocery store.

Madel’s Chicharon Shop

 This company has different types of chicharon that can be bought in Lazada, an
online selling platform.

D. Distribution Channels and Logistics Review

The business will distribute the product to other businesses who want to resell
the Chicharoom. The company decided to expand its distribution channels to
restaurant and convenience store in Dagupan city monthly. In the first month,
Chicharoom will be distributed in three locations, namely A&A Convenience Store,
JG’s Restaurant and Kuya Max. Accordingly, the researchers plan to expand and find
resellers every month. Through out the first year of mass production, Chicharoom
aims to have a total of 30 resellers.
E. SWOT Analysis

Strengths

1. Nutritious. Chicharoom serves delicious and healthy food specifically their

chicharon mushroom which has many health benefits.
2. Flexibility. Flexibility gives small businesses the advantage of making and
implementing decisions faster than large businesses and corporation.

Weaknesses

1. Lack of reputation. One problem Chicharoom has is that it isn’t yet well known in
the market so the consumers might be hesitant to buy their products.

Opportunities

1. Health conscious. The researchers wanted to give the market a healthier

alternative of pork chicharon as health-oriented goods and services are enjoying
growing popularity in the Philippines
2. Online selling.The researchers want to join in on this new online platforms so that
they could tap into a larger customer base.

Threats

1. Lack of experience. The researchers being new to the business world doesn’t
have as much experience as their competitors do.
2. Price wars. Larger more established businesses may start price wars in order to
drive away competitors and gain larger share of the market.

II. Marketing Objectives

Chicharoom has set achievable objectives. The business aims to have a return
on investment of Php 534,600. The business aims to be the no. 1 oyster mushroom
chicharon supplier in Pangasinan. Also, it aims to produce oyster mushroom
chicharon a healthier alternative to pork chicharon in Pangasinan. Creating marketing
strategy to achieve goals for the business. The business also will continue to
implement promos and promotion of product as time pass by to provide more
satisfaction to the customers. The researchers will also create marketing strategies
that is suit and relevant than the other competitors for the business.
III. Marketing Strategy
A. Positioning
Chicharoom gives a healthier benefit which will give customers vitamins and
minerals to give them a good product which will bring business a positive feedback.
Regarding the positive feedback of customers, the company also offers penetration
pricing wherein the price of the product is initially low to lure customer and incentivize
to buy the product.Moreover, the company also have flavors that other competitors
don’t provide. Chicharoom is made into crunchy light chicharon and intensified with
exotic and mouthwatering flavors such as barbeque, cheese, sweet and spicy, sweet
corn and house blend spices.

B. Product Strategy
The main ingredient of Chicharoom is mushroom chicharon and it contains
nutrients that gives a healthier and tastier snack choice. Instead of deep frying it in
oil, the chicharon will be baked as when mushroom are being baked in a microwave,
the content of polyphenol and antioxidant activity increased significantly, and there
are no significant losses in nutritional value of the cooked mushrooms. Moreover,
Chicharoom has different flavors such as barbecue, cheese, sweet and spicy, sweet
corn, and house blend spices.

C. Pricing
The direct cost of the Chicharoom product have an average cost of Php 42.19 in
each different flavors which sets the company’s product price floor. It includes the
direct materials used to make Chicharoom such as the main ingredient, flour,
flavoring powder, seasonings and packaging. However, in the survey conducted by
the researchers, respondents chose between the price range of Php 71-100 and Php
101-125 on what do they expect to pay for the product. Thus, having a price ceiling of
Php 125.

D. Distribution Strategy
Chicharoom will be using the “business to business” strategy. The researchers
will offer the product to convenience stores and restaurants like Ciudad Elmina,
Silantro, Dad Joe’s breakfast all day that will can increase the sales volume of the
product. Also, another strategy that the researchers will use is “online selling”. Online
selling can help the product to increase product recognition and so that the
researchers can reach out to potential customers.

E. Marketing Communication Strategy

The marketing communication strategy of Chicharoom is to create strong
relationship with costumers through selling their products as a better alternative over
pork chicharon. Chicharoom wants to focus in two areas in terms on Marketing
Communication Strategy.
Online and Mobile Marketing
The business will create page and communicate with people through online to
know the best of our business by other people from other places who likes to visit or
tour in Pangasinan.
Trade Promotion
Chicharoom serves nutritious food specifically their chicharon mushroom which
has many benefits. Customers will buy the product and in return the product will give
the customers various benefits, the researchers consider the print media advertising
through flyers wherein they will distribute flyer with attached coupon

F. Marketing Research
To remain consistent in promoting our product, as well as having interviews and
surveys that will effectively reach target customer. The researcher’s will be promoting
their product through online discussion. The researcher’s will promote their product
as a healthier alternative from the usual pork chicharon because this product has
less cholesterol than pork chicharon. Furthermore, for future development of the
researcher’s product, the researchers will be expanding the Chicharoom’s production
and selling through other cities.

IV. Action Programs

In the first year, the reserchers will first handle the certifications and legal
requirements to operate the business. On the second year, the machinery and
equipment will undergo maintenance and repairs so that it can’t be easily worn out
and increase the useful life.On the third year, the researchers will buy new
equipment. The fourth year will start off with improving the quality of the product by
having zero defects at final quality control inspection and will upgrade the facilitiesIn
the fifth year, the researchers will work on the Facebook advertisements. Also, the
company will launch new flavors of the product.

V. Budgets

A. Sales Goals

In the first quarter of the year Chicharoom expects that there will be slow
increase of demand for their product since the business has not yet established the
distribution channels such as the restaurants, pasalubong centers, and the online
shops that will sell their product, but in the succeeding quarters the researchers
expects that sales will increase by 20-30% due to the increase of their distribution
channels, and also because of their promotional activities, such as the trade fairs and
online marketing that will increase website traffic to the researchers social media
page, and online shop. In order to achieve the 2000 pieces sold in the end of the first
year goal the researchers has set monthly goals on how many pieces they must sell.
B. Product Cost

Product cost includes the direct materials used in the making of the actual
product. In making chicharoom, it includes oyster mushroom, all purpose flour,
flavoring powder, ground pepper, salt, olive oil and packaging. Thus, having Php
37.50 product or variable cost

C. Contribution Margin
In the first year of company’s production, the sales goal is Php 994,950 with
10,050 quantity of products sold. Thus, having a sales per unit of Php 98.96 per unit
by dividing the total of quantity sold to the sales. However, in the variable cost per
unit is the direct materials used to produce a single unit of Chicharoom. Thus, cheese
flavored Chicharoom is Php 55.25 per unit of contribution margin with a contribution
margin ratio of 55.81%. Barbecue is Php 54.90 per unit of contribution margin with a
contribution margin ratio of 55.45%. Sweet and spicy is Php 52.50 per unit of
contribution margin with a contribution margin ratio of 53.03%. Sweetcorn is Php
54.30 per unit of contribution margin with a contribution margin ratio of 54.85%. And
lastly House blend spices is Php 66.89 per unit of contribution margin with a
contribution margin ratio of 67.57%.
D. Break-Even Point Analysis
Break-even analysis helps the business determine the cost structures, and the
number of units that need to be sold in order to cover the cost or make a profit. In the
first year of Chicharoom production, the fixed cost were as follows: salaries expense,
indirect overhead and equipments. Each has a cost of Php 13,879, Php 120,000,
Php 125,503 respectively with a total of Php 259,382. Thus, cheese flavored
Chicharoom is 4,695 units with a sales of Php 464,759.00. Barbecue is 4,725 units
with a sales of Php 467,776.38. Sweet and spicy is 5,583 units with a sales of Php
489,123.14. Sweetcorn is 4,777 units with a sales of Php 472,893.36. And lastly
House blend spices is 8,088 units with a sales of Php 383,871.54.
E. Proforma
The net sales is obtain by subtracting the sales return and allowances which
resulted to the net sales of Php 850,297.50. The cost of good sold is from the
variable cost of the product multiply to the quantity sold in the year. Thus, having a
gross margin of Php 476,538.50. In marketing expense includes sales expense,
promotional expense and freight with a total of Php 185,259. However in the general
and administration expenses which includes general expenses and indirect overhead
with a total of 133,879. With these expenses, the net income before tax is Php
157,400.50

VI. Controls

To maximize the return on a marketing plan, there need to be controls in place to

monitor the plan's progress. By continuing every process in the company,
Chicharoom will make sure to monitor the supply of mushroom wherein we make
sure to have a backup supplier in able to do so. One control in a marketing plan is
the monitoring customer feedback and satisfaction through polls and surveys. With
that plan, we can reach customers indirectly by hosting online polls on the Internet
that ask specific questions about our marketing plan. In the budgeting and monitor
spending, we will monitor the expenses or outflows of the company. By examining
expenses, we are able maintain our budget and see exactly where spending
increases come from.