MINI- MARKETING

PLAN PRESENTATION

Submitted by:
Jumela Faye G. Durin

Submitted to:
Ma'am Gean Rose L.Co
SWEET MINION
Banana Chips'

Marketing Plan
 I. EXECUTIVE SUMMARY

Bananas are vigorously growing, herbaceous plants growing in every

humidtropical region. Edible bananas are believed to have originated in
the Indo-Malaysian region reaching to northern Australia. They
constitute the fourth largest fruit crop of the world, following the grape,
citrus fruits and the apple. World production is estimated to be twenty-
eight million tons—sixty-five percent from Latin America, twenty-seven
percent from Southeast Asia, and seven percent from Africa. One-fifth
of the crop is exported to Europe, Canada, the United States and Japan
as fresh fruit. India is the leading banana producer in Asia, followed by
Indonesia and then by Philippines. The Philippines produces about one-
half million tons, exporting mostly to Japan.

The Philippines, being one of the contenders for the title, “Banana
Capital of the World,” has innumerable banana plantations scattered
across Mindanao.Biggest producing region is Southern Mindanao
capturing almost half of the country's total production. Production of
banana is mainly concentrated in Mindanao where thebiggest banana
producing provinces of Davao del Norte, Davao del Sur and Davao City
of Southern Mindanao region. Outside Mindanao, the biggest
producing provinces are Iloilo in Western Visayas and Isabela of
Cagayan Valley. Most of the 337,082 hectaresof banana are mostly
backyard or smallholder operations

According to a study conducted by World Bank, the few commercial

plantings are located in Mindanao where there are about 28,000
hectares of Cavendish bananas being produced for export.

Banana has many uses especially in the human diet. Utilization of

banana as food can be in many ways -- from simply being peeled and
eaten out of-hand to being sliced and served in fruit cups and salads,
sandwiches, custards and gelatins; being mashed and incorporated into
ice cream, bread, muffins, and cream pies. Ripe4bananas are often
sliced lengthwise, fried in cooking oil, and re-cooked in sugar caramel.
Banana puree is important as infant food and can be successfully
canned by the addition of ascorbic acid to prevent discoloration.
Because of seasonal gluts and perishability and the tonnages of
bananas and plantains that are not suitable for marketing or export
because of overripeness or stained peel or other defects, there has
been tremendous interest in the development of modes of processing
and preserving these fruits. Unripe banana has many food uses as well.
In Zamboanga City, greenunripe bananas, boiled in skin and served with
“haleia” or coconut milk caramel, arepopular. Sun-drying slices of
unripe fruits and pulverizing make banana or plantain flour or powder.

One of the most popular unripe banana products is banana chips.

Commercial production and marketing of banana chips has
beenincreasing in various parts of the world over the past 25 years and
these products are commonly found in retail groceries alongside potato
chips and other snack foods.

'Carinosa' and 'Bungulan' bananas are favored for chip-making in Latin

Amerca.

II. STUDY BACKGROUND

Brief History of the Company

In the Philippines, the ‘Saba’ and ‘Cardava’ varieties are chosen for this
purpose.This paper proposes a banana chips production business in
Catubig. The idea stemmed from the proponent’s fondness for the
product and the prodigious source of banana in the area. The business
and its initial product shall be named SWEET MINION COMPANY
respectively. The banana chips shall be distributed mainly to the
canteens of the different primary, secondary, and tertiary schools in
Catubig. Sweet Minion Company will deliver to the grocery stores as
well as the canteens or offices in the city.5

Mission

Sweet Minion Company manufactures honey-dipped banana chips and

distributes them to the different school canteens, office canteens and
grocery stores in Catubig.

Vision

In seven to eight years, Sweet Minion Company will be the biggest

banana chips manufacturer in Northern Samar and will contribute to
the Philippines banana chips export market.

Product/Service Offerings

Sweet Minion Company offers affordable price for each pack of banana
chips. Each pack will cost P6.00, and if a customer wanted to buy 10
packs, he/she will get 2 packs for free.

The company also deliver into houses through calling to it's hotline
09091134652.

III. Macro- environmental Analysis

Economic Factors
 Inflation is a problem of all businesses. Although inflation does affect
the business in the costing of the raw materials and pricing of the
finished goods to a great extent, it significantly affects the purchasing
power of the money given to students as allowance.6

Political Factors

The Local Government of Catubig are supportive to entrepreneurs and

the whole business sector. The current political issue regarding COVID-
19 does affect the business directly or indirectly.6

Socio-cultural Factors

Sweet Minion banana chips product competes with other snacks in

capturing thetaste and preference of students who are the end
customers of its market. These other snacks include the potato chips of
Jack and Jill Corporation, cheese curls and other junk foods. They are
often preferred by students. 6

Technological Factors

Training on banana chip production in the future, can open doors to

the use of technology in the business. Technology, automation can
increase the efficiency of the production, in volume an quality and can
therefore pave the way to banana chips export.

IV. OPPORTUNITIES AND THREATS

Opportunities:

− There are more and more schools that are being put up in the city.
− A supportive government indicates that there is a bright future for the
firm in the export market.

Threats:

− The preference of students and young people to eat junk foods.

− The prices of cooking oil, sugar and honey are increasing.

V. MICRO-ENVIRONMENTAL ANALYSIS7

The Company

The business, a sole proprietorship, shall initially employ only two

employees.The project proponent shall be the first and the manager
and shall be responsible for thepurchase of raw materials and supplies,
delivery of finished goods, dealing with customers and prospective
customers, and managing the finance of the business.

The second employee shall be responsible for the production: cooking

in themorning and packaging in the afternoon. He shall maintain the
cleanliness of the kitchen, the utensils and cooking wares and the
production process in general. He must be:

- knows cooking

- able to work with minimum supervision

- clean and neat in looks and ways

- willing to undergo training

- willing to work and receive per piece wage

- observant and patient8

Supplier

The business shall buy its weekly supply of seven and a half bunches of
bananas from the farmers in San Vicente, a barangay in Catubig . The
contact person in the area is Mr. Cecilio Quimbo, a relative of the
business proponent. She resides in the area and knows the residents of
the barrage.

Marketing Intermediaries

The business shall operate from Monday to Saturday, from 8 A.M. to

5:00 P.M.Purchase of raw materials and supplies shall be made every
Saturday before the production week. Banana chips produced during
the day shall be sold in the following8day. Products completed during
Fridays are made so for distribution to non-school canteens and retail
stores during Saturdays. This is because very few schools operate on a
Saturday. During semester breaks and school holidays, the business
shall intensify selling efforts to non-school canteens and retail stores.

Collection from school canteens shall be made on the following

delivery, that is, on the following day. To encourage non-school
canteens and retail stores, however, collection from these customers
shall be made on the next Saturday of delivery.

Customers

The customers are children,students and adults nearby areas where

Sweet Minion banana chips is accessible.
The following are schools/canteens which committed to buy the
product, withtheir corresponding population and location:

Schools/Canteens Location
San Vicente Elementary School Brgy. San Vicente, Catubig
San Vicente National High School Brgy. San Vicente, Catubig
Catubig Valley National High Brgy. 1 Poblacion, Catubig
School
Sta. Fe Elementary School Brgy. Sta. Fe, Catubig
Anongo Elementary School Brgy. Anongo, Catubig

Competion

The competitors of Sweet Minion Company are those banana chips

vendors in a particular area who make hand-made products but doesn't
have packaging or market presentation hence popular to customers
because of accessibility.

Publics

Sweet Minion Company emphasizes the need in evaluating company's

relationship with customers, community, institutions, media,
government, and society .The business also requires very minimum
number of personnel to run and its organization need not be complex.

VI. STRENGTHS AND WEAKNESSES

Strengths:
− With know-how in the manufacturing of banana chips

− Unique in Catubig because bananas are sweetened with honey before

frying

− The snack product is nutritious. Its nutritional contents include

potassium and protein

Weaknesses:

− Lacks access to grocery stores and office canteens

− No established supplier of honey in Catubig10

VII. THE MARKET

Market Size

The schools and convenience stores were chosen for their large
population and the nearness from another. The market place will
generate efficiency in the delivery and collection of payment. 10

Market Needs
Sweet Minion banana chips is providing its customers with a wide
selection of high-quality chips dishes and salads that are unique and
pleasing in presentation, offer a wide selection of health conscious
choices, and utilizes top-shelf ingredients.The company seeks to fulfill
the following benefits that are important to their customers.

· Selection. A wide choice of snacks and dessert options.

· Accessibility. The patron can gain access to the store with minimal
waits and can choose the option of dine in or take out.

· Customer service. The patron will be impressed with the level of

attention that they receive.

Market Trends

The market trend for stores is headed toward a more sophisticated

customer. The store patron today relative to yesterday is more
sophisticated in a number of different ways.

· Food quality. The preference for high-quality ingredients is

increasing as customers are learning to appreciate the qualitative
differences.

· Presentation/appearance. As presentation of an element of the

culinary experience becomes more pervasive, patrons are learning to
appreciate this aspect of the industry.

· Health consciousness. As Americans in general are more cognizant

of their health, evidenced by the increase in individuals exercising and
health club memberships, patrons are requesting more healthy
alternatives when they eat out. They recognize that an entree can be
quite tasty, and reasonably good for you.

· Selection. People are demanding a larger selection of foods, they

are no longer accepting a limited menu.

VIII. MARKETING OBJECTIVES

Objectives

 Produce the best tasting banana chips in Catubig.

 Distribute to 50% of the school canteens in Catubig.
 Gain access to the office canteens and the grocery stores in
Catubig.
 Distribute products to other places.

IX. MARKETING STRATEGIES

Product/Service

The Sweet Minion banana chips are delicious, crispy, and healthy
snacks. The banana chips have a sweet taste. They are made from the
Filipino banana of the Saba and Cardava variety. Smooth delicious
bananas are picked in their mature green stage, peeled, thinly sliced,
honey sweetened and then fried in vegetable oil. They are a nutritious
snack because of the honey content. They do not contain artificial
additives. They are a nutrient-dense food, contributing to a healthy diet
by providing not only potassium but also calcium, carotene, vitamin C,
and vitamin B6.Each chip has an average size of 25-30 millimeters in
diameter and thickness of 3-4 millimeters. The thin chips are deep-fried,
and naturally cooled before packaging restoring the product’s
crispiness. The banana chips are packed by 50 grams in plastics. The
label indicates the business and product name, ingredients, weight, and
business address and number.Each pack is well-sealed to maintain the
product’s crispiness.

Target Market
Catubig, an inland town, lies on the banks of Catubig River, a waterway
that implies near Rawis and the traditions passage to the town. This is
also Cagninipa (after an aquatic palm). Catubis is located in South
Palapag. The municipality of Catubig is a third class municipality in the
province of Northern Samar, Philippines.Catubig is politically
subdivided into 47 barangays, some does have high school and others
have lementary schools.Some schools have canteens and these are
owned by a cooperative of teachers and staff members.However, another
target market are the convince stores and grocery store located in the
town - Catubig.

Pricing Strategy

Each pack of 50 grams of banana chips is priced at P6.00. This is

because the desired gross profit margin is 75%. A unit cost of P2.18 with
a gross margin of this rate will result to a rounded off-price of P6.00.
The price of the Sweet Minion banana chips is not greatly different from
the price of the products of the competitors. In fact, the wholesale price
of the Member Food Dealer and Guiwan Special Banana Chips, which
distributes to retail and convenience stores, is also P6.00. Prices of
other competitors range from P6.50 to P10.00. Such differences in the
prices, however, shall have the least significant effect inthe competition.
Price is neither the competency nor strategy of the proposed
business.14

Distribution Strategy
Raw Materials
Inventory
Sweet Minion banana chips will be distributed through a takeout model
where customers can call in their order and come to the store to pick it
Peeling place
up, come into the store, of Bananas
the take out order and wait for it to be
completed, or come in and dine at the store.

Advertising and Promotional Strategy

Slicing of the Bananas

The business shall be promoted by word of mouth and through personal

selling efforts of the business proponent. Packaging and labeling will be
enhanced more to further promote the product.
X. TACTICAL IMPLEMENTATION

Organizational Plan

14

14
 Soaking in honey and sprinkling
sugar

XI. MARKETING BUDGET

Cooking in vegetable oil
Financial Plan

A. Unit Costing
Cooling
Unit cost is derived from the batch cost divided by the number of units
each batch produces. Unit cost is as follows:
Packaging

Finished

Goods

Inventory
B. Fixed Assets
The following the fixed assets to be used in the conduct of the business
and their corresponding acquisition cost, useful life, annual
depreciation:17

C.Project Cost and Financing

Initial project cost is estimated at P 29,207.33 and shall be financed

through a cash gift from parents upon graduation of the
proponent.Working capital of one (1) month is allotted for both
production cost and operation expense. The cost to acquire
manufacturing equipment and the necessary down payment and
installment payment for the first month for the delivery equipment are
also factored as a capital expense. Pre-operating expenses include
deposit on rental of the business area and licensing cost. A breakdown
of the initial investment is shown below.

18
 19XII. FEEDBACK AND CONTROL

The business has a market and will grow in the future. Its honey content
makes it unique and thus be patronized by the target market. The target
markets of Sweet Minion Company are school canteens and retail
stores. There are numerous schools existing and being put up and
canteens of these schools shall be the market of the business and at the
same time its network of distribution links. The Sweet Minion banana
chips shall only be priced at P6.00, very affordable for school canteens
who shall sell the same products to students and other customers at
mark-up of one to two pesos.

Operationally, the proposed business is viable. Banana chips are easy to

make and it does not require highly technical equipments.

The business also requires very minimum number of personnel to run

and its organization need not be complex.

Financially, it is feasible considering its low project cost and it

profitability. Within a period 1.29 years, the business capitalist can
recover its initial investment of P 29,207.33 The business’ cash flows
obtain a positive net present value adding P 327,280.02 to the initial
investment and its internal rate of return is 145%. These figures further
conclude that the business is financially feasible. Most importantly, the
business will contribute to the society by making available a healthy
product and employing unemployed individuals. It may start with only
one, but when it will grow, it will make a significant impact on the
society.

XIII. FINANCIAL PROJECTION

Capital Budgeting Analysis

 For the purpose of capital budgeting analysis, net future cash inflows of
the business shall be matched with the initial project cost of P
29,207.33. The following cash flow20table shows the short payback
period, positive net present vale and a high internal rate of return of the
proposed business:
CAPITAL BUDGETING CASH FLOW SCHEDULE

For the years 2021-2025

(In Philippines Peso)

Pre - 2021 2022 2023 2024 2025

Operating

Initial Investment 29,207.33 20

Amortization Vehicle 21,362.31 27,698.65

Net Income after taxes 28,839.16 74,398.65 109,751.70 143,798.22 178,628.64

Add: depreciation 6,476.06 6,476.06 6,476.06 6,476.06 6,476.06

Add: salvage value of 32,380.29

motor

Net Cashflow 29,207.33 13,952.91 53,176.43 116,227.76 150,274.28 217,484.99

Cash Balance 15,254.42 37,922.01

Payback Period = 1. 29

Net Present Value = P 327, 280.02

Internal Rate of Return = 145%

* 25% is the most likely rate of return and the computed rate of return on investment.