TABLE OF CONTENTS

I. Executive Summary Name of the Business Business Tagline Business Logo

II. Situational AnalysisII.1. Market SummaryII.2. SWOT AnalysisII.3. CompetitionII.4. Product OfferingII.5. Distribution

III. Marketing StrategyIII.1. Marketing ObjectivesIII.2. Target MarketIII.3. PositioningIII.4. StrategiesIII.5. Marketing MixIII.6. Marketing Research

IV. FinancialsIV.1. Advertising ExpenseIV.2. Sales ForecastIV.3. Break-even Sales

V. ControlsV.1. ImplementationV.2. Marketing Organization

Chapter 1

Executive Summary

Earthquake Freeze is a pearl shake business that offers different kinds of refreshing and healthy shake drinks with a wide variety of flavors. It offers new, unusual, attractive, and unique shake drink with the aspects of playing through customization. Almost the entire age bracket in the population of Quezon City is considered as target market of the company.

The company will first create a strong product awareness through advertising and other promotional activities. The company will also provide its consumers a fun, delicious and healthy shake drink products with the right pricing techniques. By that, the company will achieve an increasing number of loyal consumers and will maintain a positive and strong growth of the company each year. Lastly, the company is also aiming to be the top market leader in the pearl shake industry.

Name of the Business

The name of the business is the image of the product in the market. It is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product. The name should create a strong impact and appealing to the consumers.

We named it earthquake because of the intensity produced by the blend when shaken and freeze because of the ice. Literally, Earthquake Freeze means “shake the ice”.

Business Tagline

“Be Refresh, Be Healthy, Be Different, Be Yourself...” is our business tagline. The idea behind the tagline is to create a memorable phrase that will sum up the tone and premise of the products we are offering. It is also a way of reinforcing the consumer’s memory about our products.

Business Logo

The business logo is used as a foundation member of the business’ marketing structure. Without a recognizable face for the company it is difficult to advertise a business to potential consumers. The logo serves as its face. Customer recognition is one of the key segments in marketing a product and a unique logo design serves this purpose.

Earthquake Freeze logo is an image of a pearl shake container with a symbol that indicating the intensity of an earthquake. We choose blue as the color as it represents the coolness of the ice.

Chapter 2

SITUATION ANALYSIS2.1Market Summary

Market Size

Geographic The company’s concentrated target market is the population

within Quezon City. Demographics

There is an almost equal ratio between men and female consumers.

The market will consist the following segments; kids (below 12yrs.), teenagers (13 and above) and adults.

They are the students (in elementary, high school and college), adults (employed or unemployed) and senior citizens.

Those who have budget or money of at least 80 pesos. Behavior Factors

Consumers that are health conscious. Consumers who are involve in fitness activities. Consumers that seeks convenience and coolness in such

drinks. Consumers who seeks and wants to try something new and

something different.

Market Needs - The product will cater to both physiological needs (hydrating and nutritional value) and social needs (perception of a social, fun drink with a sense of belonging within peer consumer groups). We will serve the product in an outstanding customer service which will result to a stable and continuous growing of customers. We will satisfy their wants and desire by serving them a well prepared shake drink through proper sanitation and with the taste they will sure to love again and again.

Market Trends – The current trends include the shift away junk foods and carbonated drinks, a growing interest for healthier / beneficial products for the mind and body, the trend towards the availability of easy to go products for those with an active lifestyle, as well as the trend for personalization through variety seeking in a wide introduction of pearl shakes flavors.

Market Growth - Filipinos are known for being an ice lover. It is probably because of the warm weather we have here. That’s why many entrepreneurs and marketers seize this opportunity to open a pearl shake business within the country. They offer different kinds and flavors of shakes. They also create innovations in the product that is proven to suit the unique taste of Filipino consumers. Today, you can almost see anywhere a stall or carts that offer shakes and drinks. It may be in the mall, roadside, supermarkets and etc.; as long as there are consumers who are not just enjoying the great taste of pearl shake but even indulge their selves in the coolness and relief given by a drink such as pearl shake.

2.2 SWOT Analysis

It captures the key strengths and weaknesses within the company and describes the opportunities and threats facing.

Strengths

Brand Strength and uniqueness The company’s brand name is original and attractive to the

customers.

New variety of flavors to choose from The company is not concentrated in a particular flavor of shake but

rather it offers different kind of shake in a variety of flavors.

Products that tend to make consumers lifestyle healthy The product contains nutritional benefits for the consumers.

Strong existing distribution channel This kind of product usually distributed through stall or carts.

Weaknesses

Reliant upon particular pearl shake drinks The Earthquake Freeze is considered as a newbie in the pearl

shake industry. There may be some instances that the company is just reliant upon the existing pearl shake businesses.

Lack in generating brand and product awareness Because it’s new in the industry people are not that familiar or

aware about the brand name and the company’s product offerings. Company need to strive hard to attain the maximum product awareness.

The product is seasonal The product is intended for summer season and because of that

company should expect that during rainy season shake drinks is not that in demand and probably volume of sales will decrease.

Opportunities

Introduction of new pearl shakes flavors The company added some innovations and twist that we want to

share or introduce to the target market.

Brand is attractive to consumers The product’s colorful and unique name seems to be attractive to

the consumers.

Threats Strong competition

The company is not alone in this kind of business there are lots of company in the same field that might become a big threat and strong competition among this businesses may emerge.

Health issues The company is in the field of beverages industry. It offers a

products that the customers intake. There are some instance that a issue concerning health may arrived but to avoid it the company rest assured that the process and preparations are clean and safe.

2.4 Competition

“Earthquake Freeze“ top 3 competitors are:

Zagu

It took several months of experimentation, product sampling and planning before the first Zagu store was launched in April of 1999 by a young enterprising lady with a degree in Food Science from University of British Columbia in Vancouver, Canada.

To this date, Zagu has blended more than 40 million pearl shakes, a pretty good number for something that was widely predicted as a passing fad. Now, Zagu has grown from a tiny kiosk to a current network of over 290 outlets nationwide. From its humble beginning to its present success, ZAGU has proven that it is not just passing fad. 85% of the stores have been occupying the same leased space for more that three years. ZAGU foods can be found in malls, supermarkets and roadside locations. Zagu also accepts franchise of their product to anyone who is interested to be a franchiser. Behind the success of every ZAGU store is a professional management team and dedicated employees committed to putting the customer first and achieving excellence in everything.

Orbitz Orbitz, a subsidiary of Metro Grind Corporation, was founded by a group of

young entrepreneurs. Orbitz has already opened over 100 branches in major shopping malls and key establishments in and around the Metro. The company is gearing up to penetrate the International Market and further strengthen its presence in the Philippines.

Orbitz is an entrepreneurial project of Filipinos which matches the best of Eastern and Western management culture with a delectably innovative quality product to perfectly suit the standard and taste of the local market. Orbitz is a cool flavored drink mix with dark, spherical, chewy balls made from yam and tapioca called Pearls. They are currently offering 20 different flavors to suit the unique taste preference of the local consumers.

Fruitas Fruit Shakes

From a humble beginning of just a single cart in Manila in February 2002, Fruitas — one of the core brands of Lush Group of Companies (LGC), founded and owned by young entrepreneur Lester Yu — has become one of the most promising fruit shake businesses in the country.

The growth of Fruitas is phenomenal as well as inspiring for everyone. According to Lester Yu, it is all the fruit of hardwork, passion, and integrity — three values he holds dearly. Now, with over 400 outlets nationwide, obviously outnumbering the outlets of its direct competitors, Lush Group of Companies is more than proud to see a lot of fulfilled entrepreneurs who have partnered with them. The company currently has more than 100 partners and franchisees, and more than 600 employees. These individuals are manifestations of business success stories amidst the current economic downswing. Business is indeed booming and network profitability is excellent.

2.4 Product Offering

The company offers different kinds of refreshing and healthy pearl shakes with a variety of flavors ready to serve among our target markets.

It is not like the usual and existing pearl shake drink. Using creativeness and desire to be unique in the pearl shake industry, we added some innovations and twist to the product.

The following are the flavors of pearl shake drinks that “Earthquake Freeze” offers:

The Classic Shake Chocolate Vanilla Cookies and Cream Leche Plan

* These are the common or usual flavors of shake ideal for everybody. It is made from ice, sugar, milk, and flavored powder. Pearls / sago in the bottom part. Skim milk, Chocolate syrup, strawberry syrup and vanilla ice cream on the top.

Tutti Frutti Candy Shake Strawberry Apple Mango Dalandan Melon

Ube Pineapple Four Seasons Bubble Gum

*These are the fruity flavor shakes that kids and teens will surely love. It is made from ice, milk, sugar and flavored powder. Pearls /sago in the bottom part. Candy sprinkles, kisses, mini mallows, mini nips, skim milk and ice cream on the top.

Caffeinated Shake Mocha Cappuccino Coffee Caramel Creamy Coffee Chocó coffee

*Kind of coffee shake best prescribe for adult workers. It is made from ice, sugar, milk and flavored powder. Top with chocolate syrup, grated chocolate and ice cream.

Vegan Fruit Shake Pineapple-Strawberry Shake Banana-Strawberry Shake Strawberry-Apple Shake Chocolate-Banana Shake Mango-Melon Shake Orange-Lemon Shake Papaya-Carrot Shake Carrot-Strawberry Shake

*These are the healthy shake flavors made from real fruits and vegetables ideal for those who are involved in fitness activities, vegetarian and health conscious. It is made from ice, real fruits and veggies, sugar, and plain yogurt. Pearls / sago are optional in this product.

“Earthquake Freeze Halo-Shake” It is based on the traditional halo-halo in the Philippines. Instead of using

plain ice we will use the flavored shake itself. It is just like the process of layering the ingredients with the flavored shake.

An order slip is provided here. The customer will just choose in any flavors and ingredients available.

Sugar and evaporated milk are the fixed ingredients in halo-shake.

An order slip example:

"Earthquake Freeze Pearl Shake"Order Slip

 "Halo-Shake"

Choose (1) one flavor:

Choose ingredients:

1st layer _Vanilla __Sago_Chocolate __Gulaman_Strawberry __nata de coco_ Apple __mais_Mango __saging_Pineapple __kaong_Ube __monggo_Four Season __kamote_Melon __beans  __pinipig  __langka  __ube  __leche plan

 __ice cream

__ macapuno  __ I WANT ALL! :)

All of this are available in different sizes of plastic cups with dome lid: Petite – 12 oz. Mediana – 16 oz. Gigantic – 22 oz.

2.5 Distribution

The company will use a direct to consumer distribution by establishing stalls or carts in the target area.

Chapter 3

MARKETING STRATEGY

The key to the marketing strategy is focusing on the different taste of the different segments of the consumers whose desires are always changing. They tend to seek for something new and different to what was usual. The company can cover about 90 percent of the pearl shake market because it offers innovations and twist in the product that will meet the demand towards different market segments. The company almost occupied all the segments in the market because it also offers product customization. Customers can customize their own pearl shake that will surely one way to meet the real desire of our consumers.

3.1 Marketing Objectives

1. To create a strong product awareness.2. To provide fun, delicious, appetizing, healthy and uniquely enchanting shake

drink products while maintaining the commitment to our consumers.3. To achieve an increasing number of loyal consumers.4. To maintain a positive, strong growth of the company each year.5. To become the top market leader in that particular product and segment.

3.2 Target Market

Together with the wide range of consumers of pearl shake, the company aims to expand the target market of such product. And so, new different flavors are introduced to widen the scope of market segments that the company will serve. And because of these new flavors, almost the entire age bracket in the population is the target market of the company. It offers flavors for the kids with ages 12 and below either male or female. Teenagers are also a target market, ages 13-19 either male or female. Those adults who are health conscious either employed or unemployed, male or female ages 20 and above. Senior citizens are also included as a target market.

3.3 Positioning

Earthquake Freeze will position itself as the only shake company that offers a wide variety of pearl shake flavors to the wide range of market segments. It offers new, unusual, attractive and unique shake drink experience with the aspects of play through customization. The company doesn’t just refresh its consumers but also provides nutrition for the consumers’ own benefits.

3.4 Strategies

Product Strategy

The Core Benefit: A shake drink that refresh your mind and soul while making your body strong and healthy.

Actual Product:

Branding: Colorful and Prominent “Earthquake Freeze written in front of the packaging.

Brand Personality: Cool, Original, Funny, healthy Expected Product: Delicious and Clean pearl shake drink.

Pricing Strategy

The company’s pricing objective is to survive and then get the maximum market share as possible.

The company will use the cost plus pricing strategy. It is used primarily because it is easy to calculate and requires little information.

The unit cost is calculated first and then includes an additional amount (mark-up) to present profit.

Cost of Product

Additional Amount

(Mark-up)

Selling Price with Profit

The best feature of this strategy is simplicity and easy to administer and tends to stabilize markets.

The company will also implement a price discounts for our loyal consumers. Providing them a quantity discount known as “Barkada Package”. Consumers can get additional one pearl shake if they avail a dozen of pearl shake. Seniors citizens can also avail a discount. Seasonal discounts may be also implemented particularly on rainy seasons.

Promotion Strategy

The company’s promotional objectives will fall under the combination of informative and persuasive advertising. We will first inform or give knowledge to our target markets about the product and then persuade them to like and purchase the product.

Earthquake freeze is a newbie in the pearl shake industry with a large number of competitors, that’s why the company will set an enough budget to promote the product and to establish strong brand awareness within the target market.

The promotional outputs will convey the clear message that the “Earthquake Freeze is a shake drink that refresh your mind and soul while making your body strong and healthy.” We will also incorporate the company’s positioning; “Be Refresh, Be Healthy, Be Different, and Be Yourself”.

The company will promote and advertise the product through the following mediums:

Television Ads Print Ads (Magazines, flyers, tarpaulins to be posted in selected areas like

campuses, transportation, etc.) Internet (Company’s own website, face book fan page, and other social

networking sites.) Public Relations (Sports events, school events, mall events and other

sponsorship activities)

The stated strategies will surely produce a great impact to our target markets. By then, giving them the enough knowledge and information about the product they will also share that information to those who are not yet familiar or aware with the product, this strategy is also known as Buzz Marketing. We give information, they receive it then they’ll share it.

Place Strategy

The company will distribute its products directly to the consumer also known as direct-marketing channel by establishing carts or stalls in the target area. It is because

the company offers perishable goods that cannot be store in a longer period of time. It should be prepare on the time after the consumer order it and afterwards serve to them immediately.

3.5 Marketing Mix

Activities/Programs Duration Persons Involved

Location Outcome

Well-thought advertisement will be launch

Before and during the operation

Advertising Staff/Personnel

Target Area Brand Popularity and wide variety of customers

Training of sales persons

Before operation

Management Office Quality customer service and care

Fair pricing to customers

During operation

Management Office Company will gain more customers and be more competitive

Research and development

Before Operation

Management Target Area A well distributed and best selling product

3.6 Marketing Research

Pearl shake although seasonal is very appropriate in a tropical country like the Philippines. So, it will be very fortunate for the company to launch a product that will cater the needs of the Filipino consumers. It has been proven that the hot weather in the country made the pearl shake industry on the top of the market. Consumers desired this product earnestly for its refreshing effect.

Chapter 4

Financials

4.1 Advertising Expense

Advertisements Cost Quantity Total Cost

TVcommercial (abs-cbn) Php120,000/30sec.

Twice a day,thrice a week,

and for 4 consecutive

months

Php2,880,000

Flyers Php0.65 2000pcs. Php1,300

Tarpaulin Php40 30pcs. Php1200

TOTAL ADVERTISING EXPENSE: Php2,882,500

The usual pearl shake business does not need to over advertise that’s why we decide to have TV commercials for just 4 consecutive months for the purpose of launching the product and consumer’s awareness.

Yearly Sales Forecast

2010 2011 2012 2013 2014

Php2,307,000 Php2,537,700 Php2,791,470 Php3,070,617 Php3,377,679

Assumption: Annual Sales will increase up to 10% each year.

4.3 Break-even Sales

FORMULA: BES=¿cost

Price−VariableCost

The Classic Shakes:

Fixed cost – P40, 000 / 5 = 8,000

Variable cost - P43.00

Unit Price – P56.00

BES=8,00056−43

=615 units

Tutti Fruitti Candy Shake:

Fixed cost –P8, 000

Variable cost – P39.00

Unit Price – P51.00

BES=8,00051−39

=667units

Caffeinated Shake:

Fixed cost – P8, 000

Variable cost – P34.00

Unit Price – P44.00

BES=8,00044−34

= 800 units

Vegan Shake:

Fixed cost – P8, 000

Variable cost – P34.00

Unit Price – P44.00

BES=8,00044−34

= 800 units

Halo Shake:

Fixed cost – P8, 000

Variable cost – P63.00

Unit Price – P82.00

BES=8,00082−63

= 421 units