PANGASINAN STATE UNIVERSITY

Senior High School

Lingayen Campus
A.Y 2018-2019

MARKETING PLAN:
SONIA’S BAGOONG

Members:
Alcovendas, Erika Joy
Batayen, Shiera Mae
Genese, Joana Syl
Mondala, Mary Joy
Tucay, Blanche Kaitlin

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 TABLE OF CONTENTS

I. MARKETING BACKGROUND
A. OVERVIEW OF THE INDUSTRY*
A.1 MARKET SIZE*
A.2 MARKET TRENDS*
B. MARKET PROFILE*
C. ENVIRONMENTAL ANALYSIS
C.1 OPPORTUNITIES AND THREATS*
II. ANALYSIS OF COMPETITION
A. COMPETITIVE POSITIONING*
B. MARKET SHARES/ SALES VOLUME/ SALES AND PROFIT TRENDS*
C. STREGTHS AND WEAKNESSES OF COMPETITION*
III. COMPANY BACKGROUND
A. COMPANY PROFILE*
B. COMPANY/BRAND STREGNTHS AND WEAKNESSES ANALYSIS*
C. BRAND CONSUMER PROFILE*
D. PRESENT MARKETING STRATEGY
D.1 SEGMENTATION, TARGETING AND POSITIONING
D.2 MARKETING MIX
D.3 COMPETITIVE STRATEGIES EMPLOYED*
IV. IDENTIFIED MARKET OPPORTUNITIES*
V. DESCRIPTION OF THE PROPOSED TARGET MARKET*
VI. MARKETING OBJECTIVES*
A. OVERALL MARKETING OBJECTIVES*
B. SPECIFIC OBJECTIVES AND TARGETS*
VII. OVERALL MARKETING STRATEGY*
VIII. MARKETIG MIX
A. PRODUCT STRATEGY*
A.1 PRODUCT DESCRIPTION/ FEATURES/ UNIQUE SELLING PROPOSITION*
B. PRICING STRATEGY*
C. DISTRIBUTION STRATEGY*
D. PROMOTIONS STRATEGY AND SPECIFIC ACTIVITIES*
IX. THREE-YEAR FINANCIAL FORECAST*
A. SALES VOLUME/ VALUE PROJECTIONS*
B. DETAILES MARKETING BUDGET AND MARKETING TIMETABLE*
C. INCOME STATEMENT
X. ATTACHMENTS AND APPENDICES

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I. MARKETING BACKGROUND
 OVERVIEW OF THE INDUSTRY
Bagoong, also known as fish paste or shrimp paste, is a popular condiment that is made from fermented
fish or shrimp and salt. The fermentation process also yields patis, or fish sauce, another popular condiment. In the
Philippines, the bagoong industry is found around the country. But the most popular bagoong products come from
the thriving industry in Lingayen, Pangasinan. The province is actually synonymous to bagoong: it is said that the
salinity and humidity in Pangasinan makes it the perfect place to create bagoong. The fish that is used to fuel the
industry is mainly from the Lingayen Gulf, Bicol region and Quezon province. Bagoong does not only add lavour to
certain dishes, but is also a good source of protein. As a source of protein and minerals, shrimp can be a unique
source of antioxidant and anti-inflammatory carotenoid nutrient astaxanthin. Bagoong is the most used sauce or dip
in different towns here in the Philippines and even to some countries known about the goodness of bagoong.
Bagoong is an encompassing term for Philippine condiments made from fish or tiny shrimps that are salted and
fermented for several weeks. The color varies from light pink to dark brown, the texture from firm to watery. In
general, the shrimps produce a firmer, more colourful paste, while bagoong made from fish is liquid and darker.
 MARKET SIZE
The business has two branches: Aguilar and Bugallon, Pangasinan. Aguilar has a population of 41, 463
(2015 census), 56% of the population (23,219 people) is assumed to be the market size which includes employees,
tourists, businesses who need suppliers, and other interested groups. Bugallon has a population of 67, 348 (2015
census), 65% of the population (43,776 people) is assumed to be the market size which includes employees,
tourists, businesses who need suppliers, and other interested groups.

Appendix A. Market Size of Food Industry in Aguilar and Bugallon, Pangasinan

Market Size
Market Size

56% 68%

Aguilar Bugallon

 MARKET TRENDS
Food Industry is the prime industry in the Philippines and Bagoong Industry is included. Demand for food
and even for condiments in the country is yearly increasing.
Appendix B. Food Retails Sales Value in the Philippines

Food Retail Sales Value in the

Philippines from 2011-2017 (in Bil-
lion US Dollars) Food Retail Sales
50% Value in the
Philippines from
40% 2011-2017 (in Bil-
30% lion US Dollars)
20%
10%
0%
2011201220132014201520162017

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  MARKET PROFILE
The market of Sonia’s Bagoong is minimum wage earners, tourists, small businesses who need supplier, and
interested groups.
Appendix C. Market Profile In Aguilar, Pangasinan

Market Profile in Aguilar

Employees Tourists
Businesses who need suppliers Other Interested Groups

25%
35%

20%

20%

Appendix D. Market Profile In Bugallon, Pangasinan

Market Profile in Bugallon

Employees Tourists
Businesses who need suppliers Other Interested Groups

15%

45%
20%

20%

ENVIRONMENTAL ANALYSIS

OPPORTUNITIES
 Rising customer demand
 Flexible government regulation
 Cheap labor rate
 Availability of raw materials
 Expansion
 Product Innovation and Development

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 THREATS
 Competitors
 Pollution
 Unexpected Natural Events
 Low level of technology
 Price Instability
 Imitation
 New Entrant in the Industry

II. ANALYSIS OF COMPETITION

Appendix E. COMPETITIVE POSITIONING

COMPETITIVE POSITIONING

BRAND STRATEGY

AFFORDABLE PRICING HYBRID DISTRIBUTION

CUSTOMER ACQUISITION

PLANNING

SALES PROCESS CAMPAIGN PLANNING MARKETING PLAN

TRADITIONAL MODERN MANAGEMENT

 Word of Mouth  Internet Marketing Business Development

 Flyers  Reward Cards  Sales Management
 Tarpaulin  Operations Management
 Special Events  Administrative
 Newspaper Management
Advertisement  Manufacturing
 Radio Advertisement Management

MARKET SHARE
Market share is the percentage of a market accounted for a specific entity. The number one (1) condiment being
used by many people is the salt that is why it has the highest percentage, it is very affordable and can use as alternative to
all condiments. Second, the bagoong or fish sauce is very famous in Pangasinan and also in other places that is why it is
ranked second. Third is the soy sauce and lastly, the ketchup.

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 Appendix F. Market Share of Bagoong Industry

Market Share
Bagoong (Fish Paste) Soy Sauce
Salt Ketchup
18% 27%

35% 20%

STRENGTHS
 Affordable Price
 Quality Product
 Good source of income
 Well- trained manpower

WEAKNESSESS
 Unpleasant smell of the product
 Shelf life of the product
 Diminishing of fishes
 Budget constraint
 Heavy focus on International Market

III. COMPANY BACKGROUND

COMPANY PROFILE

Sonia’s Bagoong is a business owned by Mrs. Sonia Alcovendas who works in Bagoong Industry for
almost 20 years. The business offers are (a) fish sauce or patis (b) shrimp paste or alamang (c) fish paste or
bagoong. The raw materials are being sold during Wednesday and Saturday from different suppliers like FJB,
EMARS, and MM: these 3 suppliers are located at Maniboc, Lingayen, Pangasinan. The products were being made
by Mrs. Alcovendas and her husband, Mr. Erlindo Alcovendas. The location of the business varies in the market
days of two municipalities: Aguilar and Bugalllon, Pangasinan. The business opens from 6:00 am- 1:00 pm during
Monday and Thursday at Bugallon Public Market and Tuesday, Friday, and Sunday at Aguilar Public Market. The
business supplies 10 other small businesses: 6 businesses in Bugallon and 4 businesses in Aguilar.

COMPANY/BRAND STRENGTHS AND WEAKNESSES ANALYSIS

The company’s strengths are:
 Good Relationship between customers/ Consumer Loyalty
 Reliable Suppliers

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  Consistent and Effective Operating Hours
 Promos for Special Events
The company’s weaknesses are:
 Existing Competition
 Limited Manufacturing Space
 Costs rising due to increases in food costs
 Pricing Power of Competitors

BRAND CONSUMER PROFILE

Consumers of Sonia’s Bagoong are usually normal residents of Aguilar and Bugallon,
Pangasinan. Since bagoong is a condiment, it is a must for all the residents in the municipalities to have
this kind of product at their homes.
 Demographics
- Age: 18 yrs old and above
- Sex: Male or Female, but usually female
- Municipality: Aguilar and Bugallon, Pangasinan
- Composition of the Household: (a) pre-family or no family (b)
family (c) third-age (d) retired
 Socio-economic Attributes
- Educational Attainment: n/a
- Occupation: n/a
- Neighbourhood: (a) Street (b) Barangay (c) Subdivision
- Household Income: Low to Minimum Wage Earners
 Generation
- Old and Modern Generation
PRESENT MARKETING STRATEGY

Appendix G. SEGMENTATION, TARGETING AND POSITIONING

PRODUCT PRICE
SEGMENTATION
 Fish Paste  Ranging Php
 Employees/Families  Fish Sauce 10.00 – Php
 Tourists  Shrimp Paste 35.00
TARGETING
 Other Interested Group
 Employees/Families
POSITIONING
DISTRIBUTION
 One of a Kind
 Hybrid Distribution Condiments

PROMOTION

 Traditional
 Modern

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 MARKETING MIX
 Product: Sonia’s Bagoong
 Price: Ranging from Php 10.00- Php 35.00
 Place: The business is located at Aguilar and Bugallon, Pangasinan. The products will be
distributed using the hybrid distribution wherein direct (house-to-house, setting up stall, online
selling) and indirect selling (retailers, wholesalers, distributors) will be used.
 Promotions:
- Traditional
o Word of Mouth
o Flyers
o Tarpaulins
o Radio Announcement
o Newspaper Article
- Modern
o Internet Marketing
o Reward Cards
COMPETITIVE STRATEGIES EMPLOYED
The business will be using Cost Focus Strategy wherein, we will focus on our target market and
will offer them the lowest prices available. The business will look on the competitors’ prices and will offer
lower prices to customers. The business will also be using Differentiation Strategy wherein we will rely on
the quality and taste of the product in order to market it.

IV. MARKET OPPORTUNITY ANALYSIS

Appendix H. Market Opportunity Analysis

Transportation of Products to places too far from the public market

Sonia’s Bagoong is for all

Customer

Quality Product

Good Customer Relationship

Competition
Special Event Promos

A trike for delivering the products

Enterprise A trike for buying raw materials

Permanent Branch

Manual Production
Technology Reliable for Technology Development

- Internet Marketing

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V. DESCRIPTION OF THE PROPOSED TARGET MARKET
The target markets of Sonia’s Bagoong are minimum income earners, tourists, and those co-
businesses who need supplier. The target market’s demographics are the following: (a) age: 18 years old and
above (b) sex: both male and female (c) Municipality: Aguilar and Bugallon, Pangasinan (d) Civil Status: Single,
Married, Widowed. The Socio-economic status of Sonia’s Bagoong are (a)Educational Attainment: Not
Required (b) Occupation: Not Required (c)Neighbourhood: Street, Barangay, and Subdivision (d)Household
Income: Low to Minimum Wage Earners, Private Employees, and Government Employees.. In general, Sonia’s
Bagoong is for all.
VI. MARKETING OBJECTIVES
OVERALL MARKETING OBJECTIVES
Fish Paste is a well-known product in Pangasinan as it is considered as one of the main product
of the province and is used as condiment for different recipes. The objectives of the marketing plan are:
 To expand the business
 To develop and innovate the products
 To increase sales
 To strengthen the business’ position in the market
 To provide opportunities and employment to fellow countrymen
 To help the community by providing livelihood programs
 To develop the skills of the workers
SPECIFIC OBJECTIVES AND TARGETS
Specific objectives and targets of the business are:
 To provide quality products to the market
 To become one of the main business who sells and supplies bagoong in the market.
VII. OVERALL MARKETING STRATEGY
The business’ value propositions are best price and best product. Sonia’s Bagoong offers the best
price because it is very affordable and it is for everyone. It has the same price offerings with its competitors, but
the business provides some rewards or bonus for wholesale buyers. It also offers the best product because the
quality of the product is a priority, packaging (product logo, nutrition facts, benefits, ingredients, location) is well-
organized that information needed by the customers are being provided and the product is surely secured.
VIII. MARKETIG MIX
PRODUCT STRATEGY
PRODUCT DESCRIPTION/ FEATURES/ UNIQUE SELLING PROPOSITION
Sonia’s Bagoong offers a bagoong or fish paste, patis or fish sauce and alamang or shrimp paste.
Bagoong and patis comes with 320 ml (24 pcs. per box) and 1000 ml (12 pcs. per box). While alamang
comes with 1 cup, 432 grams and 1 bucket. The odor of bagoong, patis and alamang is unique and smells
strongly fish. Bagoong has the appearance of a pureed food that is thick in texture, patis is a liquid
condiment that has been coated in salt and alamang is made from small shrimp and salt.

Manufacturing Process of Fish Paste

1. Wash assorted species of fish to remove the undesirable dirt;
2. Grind fish to facilitate hydrolysis of the protein constituent;
3. Place ground fish into clean bowls with stirrer;
4. Add exact amount of salt and mix uniformly to prevent the growth of microorganisms during
fermentation;
5. Put enzymes obtained from microorganisms of plant and animals to enrich the natural endoenzymes
present in the fish. Stir the mixture;

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6. Adjust the requirement of the particular enzyme used; and
7. Ferment of 13 days. Clean the digested mash by filtering. Bottle the clear reddish brown liquid as patis
(fish sauce)and the residue containing some insoluble protein as bagoong (fish paste).

Manufacturing Process of Shrimp Paste

1. After the shrimp are caught and brought to market, they’re promptly mixed with salt and left to sit in a
container for 2 days;
2. The mixture is then dried under sunlight for 1-2 days;
3. It is pounded up and pulverized in a same way that a mortar and pestle smashes things together;
4. The paste is placed in a concrete tank; and
5. It is left to ferment for 6 months, after which is becomes shrimp paste.

PRICING STRATEGY
Sonia’s Bagoong are priced with the competition in mind. The business is not concerned with
setting high prices to signal quality. By offering lower prices, quality is included. Value pricing is practiced
so that customers feel comfortable purchasing products for their recipes and also for substitute condiment.

DISTRIBUTION STRATEGY
The company will be using hybrid distribution wherein both indirect distribution (when the product
reaches the end customer through numerous channels like (a)retailers (b)wholesalers (c) distributor) and
direct distribution, wherein the company directly sells the product to end customer by (a) house-to-house
distribution (b) setting up stalls (c) online selling. This kind of distribution strategy helps our company to
gain and build relationship to the customers and also to the fellow businesses. It will also help the company
in maximizing profit.

PROMOTIONS STRATEGY AND SPECIFIC ACTIVITIES

Promoting the business is one of the important task in order for the product to be known by many
people. Since bagoong is one of the main product of Pangasinan, it is well-known by many people and
there are many people engaged in bagoong industry. To promote the business, traditional and modern
techniques will be used by the owner. The techniques are:
 Traditional Technique
- Word of Mouth/ Direct Selling
- Flyers
o Flyers will be distributed through (a) give- away in store (b) hire distributor or
personally give flyers (c) distribute during events (d) posting in different legal places.
- Tarpaulin
o Flyers will be posted in front of the public markets of Aguilar and Bugallon,
Pangasinan. The tarpaulin content includes the name, logo, location of the business
and address and contact number of the owner
- Special Events
o Special Events like (a) anniversary (b) speacial holidays and (c) regular holidays,
there will be programs and raffle draws for the loyal customers.
- Newspaper and Radio Advertisement
 Modern Techniques
- Internet Marketing

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 oCreating Facebook, Instagram, and Twitter Accounts will be very helpful in
promoting the business. Also, Official Website will be created for business purposes
(business partnership or collaboration).
- Reward Cards
o Reward Card will be given to customers from the opening and it’ll be an instrument
for them to collect points that they can use during special events of the business.

IX. THREE-YEAR FINANCIAL FORECAST

SALES VOLUME/ VALUE PROJECTIONS
The monthly net income of Sonia’s Bagoong is Php3, 200 and receives Php38, 400 net income for
the year 2018. We assume that the income will increase at 15% yearly on the next three (3) years. Since
the 2018 annual net income of Sonia’s Bagoong was Php38, 400 and Php5, 760 is the 15% of it making
the Php44, 160 as the forecasted net income for 2019. And Php44, 160 has 15% of Php6, 624 and making
the Php50, 784 as the forecasted net income for 2020. Lastly, Php7, 617 is the 15% of 2020’s forecasted
net income which is Php50, 784 resulting to Php58, 401 as the forecasted net income for the year 2021.
We assumed that the income will increase for the next years because (a) increasing population (b)
increasing demand (c) technology development (d) expansion (e) quality product development
Appendix I. Sales Forecast of Sonia’s Bagoong

Sales Forecast of Sonia's Bagoong (in

Php)
70000
60000
Sales Forecast of Sonia's
50000 Bagoon (in Php)
40000
30000
20000
10000
0
2019 2020 2021
MARKETING BUDGET
Appendix J. Marketing Budget of Sonia’s Bagoong

Marketing Budget (in Php)

Tarpaulin Flyers Internet Website
Social Media Accounts Radio Announcement Newspaper Article
Reward Cards Special
7% Event
7%Promos
7% 4%
4%

11%
22%

37%

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MARKETING TIMETABLE
Appendix K. Marketing Timetable of Sonia’s Bagoong

Marketing Tool Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Worksite /
Flyers / /
Tarpaulins / /
Internet / / / / / / / / / / / /
Website
Social Media / / / / / / / / / / / /
Accounts
Radio / / /
Announcemen
t
Newspaper / /
Articles
Promos / /

INCOME STATEMENT
Sonia’s Bagoong
Income Statement
For the year 20x8 Ended December 31, 2018
Revenues
Sales Revenues Php 500, 000
Cost of Goods Sold 192, 800
Total Revenues Php 307, 200
Expenses
Utilities Expense 8,000
Selling Expense
Advertising Expense 5, 000
Commissions Expense 5, 000 10, 000
Administrative Expenses
Supply Expense 250, 000
Total Expenses Php268, 000
Net Income Php34,800

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X. APPENDICES

Appendix A. Market Size of Food Industry in Aguilar and Bugallon, Pangasinan

Appendix B. Food Retails Sales Value in the Philippines
Appendix C. Market Profile In Aguilar, Pangasinan
Appendix D. Market Profile In Bugallon, Pangasinan
Appendix E. Competitive Positioning
Appendix F. Market Share of Bagoong Industry
Appendix G. Segmentation, Targeting and Positioning
Appendix H. Market Opportunity Analysis
Appendix I. Sales Forecast of Sonia’s Bagoong
Appendix J. Marketing Budget of Sonia’s Bagoong
Appendix K. Marketing Timetable of Sonia’s Bagoong

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