ZAGU

Marketing Plan

Final Examination

This is presented to the

Hospitality and Tourism Management Department
College of Management
Dr. Carlos Lanting College
Tandang Sora, Quezon City

In partial fulfillment of the requirements for the

Tourism and Hospitality Marketing
THC09

THIRD YEAR – Hospitality Management /Tourism Management

Barbadillo, Jayson E.
Peralta, Christine Joy Y.
Villocillo, Melgen C.

December 11, 2020

I. Situation Analysis

The Company

It took several months of experimentation, product sampling and planning

before the first ZAGU store was launched in April of 1999. ZAGU was pioneered by
Genevieve Lim a young entrepreneur who had a degree in Food Science from the
University of British Columbia in Vancouver, Canada.

To this date, Zagu has blended millions of pearl shakes, a pretty good
number for something that was widely predicted as a passing fad. Now, ZAGU has
grown from tiny kiosk to current network of over 400 outlets nationwide. Zagu has also
gained recognition locally through awards such as the National Consumers Quality
Awards.

From these humble beginning to its present success, ZAGU Corporation has
proven that is not a passing fad, 85% of our current stores have been occupying the
same leased space for more than three years. ZAGU foods can be found in malls,
supermarkets and roadside location. Behind the success of every ZAGU store is our
professional management team and dedicated employees committed to putting the
customer first and achieving excellence in everything.

Mission and Vision

Mission
To provide the best quality, most innovative and reasonably priced products
in the beverage industry and to continuously generate awareness, interest and desire
for our products resulting in frequent or repeat purchases.

Vision

The vision of providing fun, deliciously appetizing, uniquely enchanting food

and beverage products while maintaining our commitment to uncompromised quality at
economical rates with the heartening purpose to cater to society’s needs, tastes and
 preferences; rather than simply convincing our customers to try and like whatever
products we develop.

The Project

The primary product of Zagu Corporation is pearl milkshakes and as innovation

goes as time passed by, Pearl Milkshakes improved have created different toppings.
Customers can choose from the list of available flavors:

Pinoy Desserts
Prices
Baby Z Regular Grande
Buko Pandan 43 50 63
Ube 43 50 63
Quezo Royal 43 50 63
Fruit Salad 45 53 63
Zagu't Gulaman 58 63 75
Halo-Halo 50 56 70
Philippine Mango 70 75 95

Zagu Delights
Prices
Baby Z Regular Grande
Strawberry 43 50 63
Watermelon 43 50 63
Melon 43 50 63
Pearl Milk Tea 43 50 63
Café Latte 43 50 63
Taro 43 50 63
Hazelnut Cappuccino 43 50 63
Black Forest 43 50 63
Cookies & Cream 43 50 63
Chocolate 43 50 63
Four Seasons 60 65 85

Add-Ons
Prices
Crystals 8
Rice Crispies 8
Corn Kernels 8
Pearls 8
Fruit Bits 8
We choose to innovate the product of Zagu’s shakes and flavorings because we think
that it’s easy to innovate and can only consume a short period of time during innovation.
We also aim to provide new flavors like Malunggay, Avocado, Calamansi or Lemon,
Papaya, Kalabasa, Carrot, Banana, Mangosteen and etc. These flavors may attract
more customers specially those customers who have a healthy lifestyle.

The Competitors

Our competitors in this segment are any stalls/kiosk within our area. In our
location, there are Buko Maxx, Supreme Hotdogs, Siomai King, Tempura King,
Dumpling King and Sam’s Everything on Sticks.

Buko Maxx

In 2011, Buko Maxx was established by Happy Recipe Food Enterprise &
Co. It is a foodcart business wherein offers varieties of refreshing beverages, from
simple buko juice to delightful buko shakes. The company aims to promote healthier
lifestyle by bringing the “coconut” or also called the “tree of life” to the public through
coconut-based beverages.

Supreme Hotdogs

In 2010, Supreme Hotdog was started. They serve hot dogs in a very variety
of great-tasting flavors. Supreme Hotdogs is your quick fix for every extreme hotdogs
made more scrumptious with tasty toppings zesty cheesemelt, bacon bits, chili beef,
sweetened ham, mushroom, and more at everyday prices.

Siomai King

In 2004, Bernabest Food Products Inc. established Siomai House. It has

captured the hearts of many patrons because of its mouth-watering steamed pork and
shrimp siomai, matched with banana cum pandan flavored gulaman.
 Tempura King

In 2016, Tempura King was founded it offers incredibly great, tasty and crisp
tempura for everyone, served in our uniquely prepared delicious and tangy tempura
sauces.

Dumpling King

Dumpling King, the latest concept in the line of food cart franchise business
of KJA GLOBAL Franchising Company Inc. It offers pork dumplings, shrimp dumplings
sharksfin dumplings and kani crabstix dumplings.

Sam’s Everything on Sticks

Sam’s Everything on Sticks offers unique beef-flavored sauces, crystal-clear

gulaman, and tasty Filipino favorite food items like pinoy fishball, chickenball, squidball,
kikiam, crab nuggets, tukneneng and etc.

ZAGU SWOT Analysis

Strengths
• Affordable offerings –a wide variety of choices for their shakes, and sort’s of add on like
pearls, crips, and corns chips.
• New strategy – innovating new products for new offerings in terms of flavorings by
adding healthy flavors for those customers who have a healthy lifestyle.
• Location is accessible to the target market.
• Wide variety of choices for their shakes.
• Special offers/promos

Weaknesses
• Competitors – imitating our product.
• Having slow customer service.
• Lack of product innovations.
• The product is seasonal.
 Opportunities
• Possible delivery services.
• Additional products in the future.

Threats
• Global warming – high usage of disposable cups and straws.
• Changing customer demographics
• Large number of indirect competitors

Competitors SWOT Analysis

Strengths
• Complimentary- offers wide variety of products.
• Distribution channels – they have many retail outlets including larger supermarket
chains.
• Price- budget friendly.
• Location is accessible to the target market.

Weaknesses
• High usage of disposable cups.
• Unhealthiness of the product.

Opportunities
• Most of them are very well known to the customers.
• Consumer spending habits.

Threats
• Intense competition between direct and indirect competitors.
• Changing of customer demands and preferences.
 Objectives

A Zagu Corporation is famous with their products that have shake and pearls on it.
Since the location of Zagu stall is in the terminal outside of SM North Edsa, it aims to:

• To promote the product by using advertisement to be well known.

• Protect and maintain the image of Zagu when it comes to the quality of their product
and services.
• To innovate the product at least one product per year to continuously generate
awareness and the desire of the consumers in our products that resulting in frequent or
repeat purchases.
• To make sure that each staffs provides high quality products following safety protocols
and offer excellent service to customers.
• To provide fun, delicious, appetizing and healthy shakes to our consumers

Strategy

Zagu Corporation offerings are not just an ordinary pearl shakes that we usually
buy anywhere but they offer captivating, original and freshly shake drink that is not
loathful in customer taste. Zagu is a refreshing drink that will satisfy the thirst of every
customer and aside of giving a refreshment for the customers it also provides nutrition
for the customers own benefits. Zagu offers a wide variety of flavors to satisfy the
cravings of their target market which is the passerby or commuters waiting in the
terminal.

By innovating Zagu’s product it can gain more customers. They can try our
innovated flavors that can fill their thirst such as Malunggay, Avocado, Calamansi or
Lemon, Papaya, Kalabasa, Carrot, Banana, Mangosteen and etc.. These flavors might
attract customers specially those who have a healthy lifestyle or the customers who
loves to discover new things. Through the use of special offers/promos (buy 1 take 1)
and advertisement (flyers, website; facebook page; online delivery) we believe that we
can attract the consumer to consume our product. We came up with strategy to
determine the benefits our product to our customers, the advantage of our product to
our competitors and its unique features. Competitors are always there but we see it in a
positive way. Competition can serve as inspiration to us to make ourselves to be more
diligent and productive to innovate our product.

Target Market

Our target market were the people who are passerby or commuters waiting in the
terminal outside the SM North Edsa. The target market will vary by age from teens and
adults (16-40 years old) since because of the pandemic, there is an age limit who can
go outside.

Zagu already establish their brands identity in the industry, it will not be hard to
introduce the product to its customers but still there are difficulties that we might
encounter and that is by how we persuade the public to try the new product invented for
Zagu. Trust is really hard to gain; you must work hard for you to gain it. Adults were the
one who have more ability to go outside so we will focus first on how to encourage
them to try our product, then if we saw that they are satisfied with it, rumors will spread
out and with that we will going to use advertisements to strengthen the news about the
product that we innovate. Recommendations will also be one of our strategies to boost
their curiosity and encourage them to try it so we will be enlighten whether the product
does meet their expectation and gain satisfaction upon tasting the product.
Market Size

Market Size

10%

20%

70%

Commuters Passerby Others

The figure above shows the Market size of Zagu store, the estimated number
of customers they serve is about 100 persons per day. But the number of product they
sell exceeds the number of customers they cater because it depends on the quantity a
customer orders. There are times that one customer purchase more than one. Zagu
were built outside the mall these are the percentage of target customers: (70%)
commuters, (20%) passerby and (10%) others. Zagu is an ideal drink for customers
who wants to re-freshen while waiting on the terminal.

Market Needs and Wants

Market needs and wants plays a significant role in the preferences of the
customer of a certain business or organization.

In market needs, customers in this generation are seeking for trendy yet
affordable for their convenience. Consumers also look for refreshments to quench their
thirst in an affordable price and convenient location. Since Zagu can be found almost in
every mall here in our country, no wonder that Zagu has become one of the best
milkshake provider in the Philippines. Also, since preferences of customers change from
time to time, Zagu provides different flavors that match the need of their customers. In
addition to this, factors like technology, climate, and known brand in the industry can
provide good selling opportunities to a business. Zagu Corporation is the first shake
provider in the Philippines. It is much known for its quality and affordable price that can
quench the need for refreshments of the customers. By this, customers who are in a
budget but still needs aliments from a hot and tiring day can avail Zagu shakes

In market wants, Zagu offers variety of shakes that the customers expected to
be. But we are trying to improve our products and service by conducting a survey and
asking opinions from our customers. So that we can able to satisfy our customers by
providing the products and service they want.

Marketing Materials

We will use different types of promoting tools for our business. First,
advertisement through facebook this is one way to promote our business since lots of
people are media literate; loves to surf through internet, loves to enjoy and try new
things in their life, so when they see our advertisement it will catch their attention and try
it. We will put our tarpaulin and give some flyers and we will make sure that the design
and the output of our flyers will also catch the attention of consumers.
Timeline
• Create a new tagline. • • To attract the customer
Include the tagline • January 2021
in every poster, and for them to easily
• Fresh. post, flyers, remember the product.
Nourishing. tarpaulins, and
Lifestyle. other visual
• Feel the advertising.
freshness, satisfy
yourself.
• Crave the taste,
reburst d’ thirst.
Creating a Promo • Feb-ibig • A way to promote our
treats: • February 2021
Zagu’s buy 1 take 1 product and attract the
advertisement. customers.
• Zagu Craze: Creating •a Promoting • To satisfy the customers
Zagu’s • March-June
mobile game for Zagu’s product through a by giving them 2021
customers game. entertainment and
refreshments as their
rewards.
• • Promoting
Creating Custom Bingo • To
Zagu’s raise • July
awareness & August
Game product through a about the Zagu’s 2021
game. product or increase its
appeal.
• Make the • Create a new layout
product’s • To attract and satisfy the
• September 2021
packaging unique. design for customers to buy the
packaging. product.
• Promote • Accepting
business • To showcase the Zagu’s
local • October &
through events. sponsorship product to the different November 2021
invitations from companies and to be
different events. open for potential
investors.
Social • Jingle
Media • To
Making easily • December 2021
gain
Advertisement Contest participants that will
• Selfie with Zagu spread the name of the
shakes contest. business.

Action Plan: Create a New Tagline Time table: January 2021

By the first week of January Zagu should choose three taglines that they will use for the
new franchise. It should be unique and catchy to customers. We came up with these
taglines (1) Fresh. Nourishing. Lifestyle. (2) Feel the freshness, satisfy yourself. (3)
Crave the taste, reburst d’ thirst. January 20, 2021 will be the deliberation for the
chosen tagline. Then by end of January there should be a final output of tagline
including the design and background.

Action Plan: Create a promo Time table: February 2021

By February, Zagu targets to create a buy 1, take 1 promo and it will called a “Feb-ibig
treat”. We came up in this idea since valentines day is one of the special occasions we
celebrate, and we want to grab that opportunity for our sales.

Action Plan: Creating a mobile game Time table: March-June 2021

for Zagu’s customers

By March, we decided to create a mobile game called “ZAGU SHAKE-SHAKE CRAZE”,

since in this generation we’re more relying on technology. It’s also a way of our
marketing and in order to our customers to stay loyal with our product. The game has a
three categories: first category will be called “zagu treats”, second category will be
called “slide the shakes”, and lastly, the third will be called “shake it, zagu”. In this game
they must accomplished a mission on their chosen category by targeting a certain
points stated in order to claim their gifts from us. But it has a redemption period, they
can only claim it from Monday to Wednesday, 12pm-5pm.

Action Plan: Creating a custom bingo game Time Table: July&August 2021

By the month of July, we will distributing a Zagu bingo game, they must pay 10 pesos
for the bingo card. They need to buy a certain shakes stated on their cards, in every
purchase we will put a sticker to make it valid. After they accomplished it they can claim
their gifts.

Action plan: Improve packaging Time Table: September 2021

On September 2021, we will also start on improving the Zagu packaging. We'll start on
choosing the best and high quality plastic cup for our product. Since some plastic cups
doesn't already have its design, we will customize its outside design. We will introduce
some limited edition of packaging related to whatever is trending. We will stay updated
about those trends and will incorporate it into our package and label design. But on the
other hand, we will keep it simple and hassle free. The package as well as its label will
be clean and simple, lastly we will never forget the original responsibility, it's keeping the
product safe. We'll innovate but will also make sure that this does not affect the product
itself in a bad way.

Action Plan: Promote the business Time Table: October&Novermber 2021

through local events

By the first week of October, the company will be accepting invitations from local events
where Zagu will expand their customer volume. The main reason for accepting local
invitation is to make a name for the business and specifically acquire potential investors
for the improvement and development of the company. The company will be doing two
local sponsorships per week for the next two weeks. And in the 4th week of October, if
there are no potential investors that are open and willing to invest, the company will
expand their strategies more. Since November's first week is full of holidays, there are a
lot of local opportunities that will invite Zagu as their local sponsor; this is also an
opportunity to expand the company's volume and an advantage also because the
company has the chance to attract potential investors for the business. Halloween
themed cups and flavors will surely affect Zagu's impact to its customers. Until
November 3rd week where Halloween is already over and Christmas Holiday is fast
approaching, they can change again their cups where they can get attention for
potential customers and investors. At the end of November, the company should gain at
least reliable and resourceful investor for the development of the business.

Action Plan: Social Media Advertisement Time Table: December 2021

As December 2021 begins, Zagu will start implementing its tactic in Social Media by
creating Jingle Making Contest. First the contestant will make a social media account
(not necessary if they already have an account), at that point Zagu had to wait until the
like of our page increases to guarantee that numerous individuals will see the page and
also to ensure that a lot of people are willing to join the contest. Zagu will posts updates
about the Jingle Making Contest and these updated contains information like what will
going to happen and when will be the last submission of the Jingle made. These
updates also contain prizes that can be won by joining and winning the contest to
encourage them to do their best. Of course Zagu have to post it 2-3 weeks before the
contest so that the participants have their time to prepare. There will be particular
criteria so that the participants are aware of what they are going to do, Zagu will also
provide exciting prizes for the winners for them to join the contest, Zagu will also give
consolation prizes to those people who joined. By the last week of December, Zagu
going to check all the entries submitted and will decide which group won and the group
who won will receive the corresponding prize plus their jingle will be our signature tune
Marketing Budget

Marketing Budget per year

Online advertising strategies

 Facebook sponsored ads 60,000.00

Total online advertisements 60,000.00

Offline advertisement strategies

Flyers 51,000.00

Tarpaulin 1,080.00

Total offline advertisements 52,080.00

Promotion
Discount 26,704.00
Total promotion 26,704.00

Overall advertisements 138,784.00

Financial Projection

Income Statement for Zagu Corporation for the year ending 31st of December 2023

2021 2022 2023

Projected sales 15,528,202 26,097,570 42,625,389

Variable expenses

Marketing and other 138,784 138,784 138,784

Fixed expenses
Rent 144,000 144,000 144,000

Payroll 1,260,360 1,260,360 1,260,360

Utilities 60,000 60,000 60,000

Total operating expenses 1,464,360 1,464,360 1464360

Gross profit 13,925,058 24,494,426 41,022,245

Taxes 4,144,153 7348327.8 12306673.5

Net profit 9,780,905 17,146,098 28715571.5

References:
Zagu (zagushakes.com)
Zagu | Menu Board (zagushakes.com)
Zagu | Mision / Vision (zagushakes.com)