activated carbon - proposal defense chapter 2: Marketing Plan

1. CHAPTER 2
MARKETING PLAN
This study will involve the process of gathering information about a potential market that
can be used in deciding what strategies would help the company yield maximum profitability,
and how the product is designed, delivered, priced and marketed. This will determine the current
demand and supply for the proposed product and identify the unattended demands that will
determine the company’s market share. Furthermore, this portion will also discuss the current
market analysis and the anticipated future market potential, the existing competitors, consumers,
opportunities and the competitive edge of the company.
I. Target market
Target market is a group of customers that Carbon Plus Corporation has decided to aim
its marketing efforts and its merchandise. They are customers who are likely to buy the product,
meaning, they are interested in the product, have all the resources to purchase it, and is allowed
by the law and other regulations to acquire the product. Carbon Pus Corporation’s target market
are businesses who manufacture and/or need activated carbon in their operation, environmental
advocates who adheres to a greener environment, medical institutions who aim to innovate their
products, legal and forensic institutions who in the course of their work, plans to operate
efficiently and all other sectors, be it public or private, that has the objective to decontaminate
polluted matters.
Carbon Plus Corp. targets those businesses or organizations that need activated carbon as
a part of their operation to clean and detoxify their products before selling it out to the market.

2. Since Activated carbon is more likely to be used by those who manufacturers, Carbon Plus Corp.
aim to reach those manufacturers especially those areas within and near the vicinity of Quezon.
However as the product popularity increases, the company will consider further expansion of the
market and the business operation. Gradual expansions in region 4, nationwide and even in
international market are considered by the company.
Specifically, the corporation will cater to both big manufacturers and small or medium
enterprises. Big manufacturers such as those in the field of food and beverage manufacture,
automobile manufacture, mining and agricultural industries use a humungous amount of
activated carbon. Small or medium enterprises on the other hand such as water refilling stations,
hospitals, chemists and medical enthusiasts, and the like needs activated carbon in their day to
day operation. Since there are still no manufacturer of activated carbon in Quezon, we can help
these enterprise in lowering their cost, thus, a direct market is built.
Generally, activated carbon caters to businesses such as, but not limited to the following:
1. Gasoline/fuel recovery 8. Sugar refinement
2. Automobile 9. Water refilling stations
3. Whisky distilment 10. Drinking water treatments
4. Tobacco industry 11. Factory waste disposers
5. Hospitals 12. Perfume industry
6. Pharmaceutical use 13. Gold Recovery
7. Makers of refrigerators 14. Personal household use

3. II. Market Size
Quezon
Quezon is a province of the Philippines in the
CALABARZON region. It is the 8th largest province in
the Philippines. Quezon Province is bounded on the
north by the province of Aurora, on the west by the
provinces of Laguna and Rizal, on the southwest by the
province of Batangas and on the southeast by
Camarines Norte and Camarines Sur.
Agriculture, Fishing, Eco-tourism and Food
processing are the major industries in Quezon. Thus,
Fig.2.1 Province of Quezon there are 2896 kinds of industries in Quezon.
Quezon is the country's leading producer of coconut products such as coconut
oil and copra. A large part of the province is covered in coconut plantations. Other major
crops are rice, corn, banana, and coffee. Fishing is also a large part of the province's
economy.1
Moreover, the Quezon has a vast industrial growth and the corporation sees a
large need for a manufacturing site of activated carbon in Quezon so as to help various
industries in it. Carbon Plus Corp. believes that Quezon is a significant province that will
suit the business operations well and will help the business grow its integrity as globally
competitive through the course of having a business in Quezon.

4. Quezon is subdivided into 39 municipalities divided into four districts as follows:
First District Third District
No. of Populat No. of Populati
City/Municipal Area City/Municipal Area
Baranga ion Baranga on
ity (km²) ity (km²)
ys (2007) ys (2007)
Burdeos 14 199.8 23,568 Agdangan 12 31.5 11,164
General Nakar 19 1344.8 24,895 Buenavista 37 161.4 24,798
Infanta 36 342.8 60,346 Catanauan 46 253.1 65,705
Jomalig 5 56.7 6,111 General Luna 27 101 23,379
Lucban 32 130.5 45,616 Mulanay 28 420 48,538
Mauban 40 416 55,866 Padre Burgos 22 69.1 19,877
Pagbilao 27 171 62,561 Pitogo 39 73.4 21,095
Panukulan 12 226.6 11,968 San Andres 7 61 29,216
Patnanungan 6 139.2 12,825 San Francisco 16 304 53,286
Polillo 20 253 27,912 San Narciso 24 263.6 39,828
Real 17 563.9 33,073 Unisan 36 124.2 23,600
Sampaloc 14 104.8 13,534 120.4
Macalelon 30 25,986
Tayabas City 66 231 87,252 5
Table 2.1 First District of Quezon Table 2.3 Third District of Quezon
Second District
No. of Populat
City/Municipal Area
Baranga ion
ity (km²)
ys (2007)
Candelaria 25 129.1 105,997
Dolores 16 62.6 26,312
Lucena City 33 80.2 236,390
San Antonio 20 172.9 30,023
Sariaya 43 212.2 128,248
Tiaong 31 168.4 87,707
Table 2.2 Second District of Quezon

5. Fourth District Guinayangan 55 214.1 39,074
Gumaca 59 189.7 63,778
No. of Populat
City/Municipal Area
Baranga ion Lopez 95 355.4 86,660
ity (km²)
ys (2007) Perez 14 57.5 11,022
Alabat 19 57.6 14,789 Plaridel 9 35.1 10,069
Atimonan 42 239.7 59,157 Quezon 24 71.2 15,011
Calauag 90 324.7 69,475 Tagkawayan 45 534.4 46,878
Table 2.4 Fourth District of Quezon
III. Market Share
The market share ratio will compute the market share of the company. This will
determine the annual budgeted supply to meet the annual market demand of the product. Other
factors to be considered in meeting the annual market demand are production capacity, demand
of the market, competitors, product, etc.
For the market share computation, the formula below will be used to determine the
market share ratio:
Annual Supply of the Company
Market Share
Ratio =
Annual Supply of the Competitors + Annual Supply of the Company
Carbon Plus Corp. do not have any direct competitor when it comes to Quezon for no
manufacturer of activated carbon is planted in Quezon. But we do have indirect competitors like
MAPECON headquartered in Laguna. MAPECON in Laguna is one of the toughest competitors
when Carbon Plus Corp. venture to CALABARZON for they already have the loyalty coming
from their customers. But as soon as businesses are informed of a manufacturer in Quezon, they
will shift to Quezon’s Carbon Plus Corp. to cut off cost.

6. But still, it is not safe to assume a100% market share in Quezon. Factors such as
company loyalty and incentives are given a great deal making our market share a bit lower than
100% but higher than 75%.
In the course of the business operation, as the business mature and the integrity and
reliability of products are built, we expect a higher demand on the market in Quezon and nearby
areas.1
Market Share Ratio
Carbon Plus Corp
Competitors
Fig. 2.2 Market Share of Carbon Plus Corporation

7. IV. Demand
Demand is the consumer’s willingness and capacity to buy goods or services at a certain
price level. It refers to how much (quantity) product or service is desired by consumers. The
demand would tell the company the consumer’s taste and preferences for a given type of product.
Thus, to be able to meet the needs and wants of the company’s target market, there is a need to
project the market demand. And with that, it would make the firm more effective to its market.
Number of Water Refilling Stations in Quezon Province 2010-2012
Year Number of Increase % of Increase
Refilling Stations
2010 75 - -
2011 143 68 91%
2012 205 62 43%
Table 2.5 Number of Water Refilling Stations in Quezon Province 2010-2012
Table 2.1 shows the number of water refilling stations in Quezon Province from year
2010 to 2012. This data gathered by the researchers would be the basis to project the number of
water refilling stations in Quezon Province for the next five (5) years.
Projected Number of Refilling Stations in Quezon Province 2013-2017
Year Number of Increase % of Increase
Refilling Stations
2013 252 47 23%
2014 228 23 11%
2015 267 15 6%
2016 260 8 3%
2017 270 3 1%
Table 2.6 Projected Number of Refilling Stations in Quezon Province 2013-2017

8. Annual Consumption of Activated Carbon by Water Refilling Stations
Activated Carbon used within 4 months 25 kilograms
Multiplied by 3
Annual Consumption 75 kilograms
Table 2.7 Annual Consumption of Activated Carbon by Water Refilling Stations
25 kilograms of activated carbon is used by water refilling stations in purifying water and
is replaced every 4 months. Thus, to compute the annual consumption 25 kilos of activated
carbon would be multiplied by 3 resulting to a consumption of 75 kilos a year.
Projected Annual Demand of Activated Carbon by Refilling Stations (kg) 2013-2017
Year Projected Number Annual Total Projected
of Refilling Stations Consumption Demand (kg)
2013 252 75 18900
2014 228 75 17100
2015 267 75 20025
2016 260 75 19500
2017 270 75 20250
Table 2.8 Projected Annual Demand of Activated Carbon by Refilling Stations (kg) 2013-2017
From the table above, the total projected demand where determined by multiplying the
projected number of refilling station by the annual consumption. Thus, it results to the above
figures.

9. V. Supply
Supply is the quantity available in the market ready for consumption by the consumers.
It is the volume of the product or service in which a firm is able and willing to offer the market.
The supply of a company must meet the demands of the consumers. Thus, to project the supply
it must consider the demand and also, there are many factors affecting the supply of a firm.
Some of these are prices of inputs, number of firms offering the same product, technological
advancements, prices of related goods, environmental factors, and producer’s expectations. With
this, the company would use these factors to base its projected supply for the future years to
come.
List of Activated Carbon Manufacturers in the Philippines
Activated Carbon Manufacturers Address
MAPECON Green Charcoal Factory Alaminos, Laguna, Philippines
BF Industries, Inc. Crossing Bayabas, Toril, Davao, Philippines
Premium A.C. Corp. Davao City, Philippines
Table 2.9 List of Activated Carbon Manufacturers in the Philippines
VI. Marketing Objective
Every year, there are approximately 19 storms entering the Philippine area, bringing
heavy rains and massive flash floods during land fall. It results to enormous reported cases of
contamination of water, whether for drinking or not, penetration of our households and vehicles
leaving stains and bad odor, pollution and clogging of some bodies of water and certain cases
about food poisoning, either due to contaminated foods or lack of foods leading victims to eat
whatever they thought was edible. This scenario has been witnessed by the Filipinos every now
and then, which leads to an unending demand for a purifying and deodorizing agent, giving way
to the role of the activated carbon.

10. The role of activated carbon doesn’t end in the absence of typhoons, and calamities. Due
to the increasing population here in the Philippines, demands for basic necessities increase as
well, some of such are water and medicines. In order to sustain the needs of drinking water,
there is a rapid growth of people venturing to water treatment and refilling businesses here in the
Philippines, which of course requires the use of activated carbon to remove the impurities, taste
and odor of the water. The need for the product never stops together with the need for purified
water to ensure the safety of mankind, which leads to a continuous opportunity for our company
to manufacture.
Carbon Plus Corporation aims to provide the market with sufficient amount of high
quality activated carbon as a response to the growing needs of the product such as to purify
substances that we consume, reduce pollution and maintenance of bodies of water and more, and
to maximize the full potential of the available opportunities, edge of the company, and the
profitability of the product without taking the environment, costs and the affordability of the
product for granted.
Provided that, the company started in a relatively small share in the market, we are
consistently building our company with integrity, trust, and competence to be on the top of the
local industry, then the global setup.

11. VII. Marketing Strategy
Carbon Plus Corporation uses the four Ps in business: product, price, place and
promotion as a tool in marketing its product.
A. Product
Carbon Plus Corporation will make use of coconut shells in manufacturing its
product, activated carbon. Coconut shell is the best material to be used in manufacturing
activated carbon for it has the inherent characteristics which give it an edge among other
materials.
The company ensures the product’s high surface area for high adsorption
efficiency and high micro porosity which gives high retention capacity. Also, the
company manufactures activated carbon with low ash content preventing contamination
of adsorbates and with high density for economical containment for the same level of
filtration. Thus, trapping high levels of impurities and resulting into a much purified and
cleaner adsorbate.
1. Product Brand
The product would be named as “Carbon Plus” which is also the company
name. The name of the product and the company is the same for easy remembrance
and to link the two.
Carbon Plus was derived from the process of making activated carbon for
there is a need to add other chemical properties unto the carbon for it to become
activated but it still remain as a carbon. Also, “plus” connotes the idea of “something
more” which implies that the product has an edge among other similar products.

12. Thus, entails the impression that Carbon Plus has more adsorbing and purifying
capacity.
2. Packaging
Packaging is not just a design but it also serves as an advertisement of the
product. It gives a distinct identity of the product regarding its brand, size and type.
Company Details Product Description
Fig. 2.3 Package Label of Carbon Plus Corporation’s Activated Carbon
The label provides the company details such as the company name, address,
contact numbers and company site. Also, the label describes the product as to its type
and weight to distinguish it among other types. Plus, it tells the consumers that it is
made from coconut shells, the best material to manufacture activated carbon.
B. Price
Carbon Plus Corporation offers activated carbon at affordable and meaningful
prices but still provides the quality the customers deserve.
The company will make use of the Cost-Plus Strategy in pricing the product. The
Cost-Plus Strategy follows the formula:
Price per unit = Manufacturing Cost per unit + Mark-up
With this, the total cost of manufacturing the product plus the desired mark-up
would be the product’s selling price. Prices vary depending on the type and weight of the
product.

13. C. Distribution Channels
The distribution channel is the path in which the product goes through for it to
reach the end users. A firm must supervise their product’s distribution and necessarily
determine if it reaches its consumers. Furthermore, each individual channel must
maintain a good communication to all other channels to be able to sustain the demand
and supply of the product in the market.
Carbon Plus Corporation established the channel of distribution below in order to
achieve the target market of the firm.
Manufacturer
End-Users
Distributors
Fig. 2.4 Distribution Channel of Carbon Plus Corporation
As shown above, there are only three parties within the distribution channel: the
manufacturer, the distributor and the end-users. Unlike any other businesses, there is no
need for the use of retailers and wholesalers since our company engages within business
to business transaction. Thus, the product manufactured from the manufacturer, the
company, would be disseminated to the distributors and at the same time can sell its
product directly to end-users. When the products reached the distributors they would
now sell the product to the end-users.
Carbon Plus Corporation ensures the proper and safe distribution of the product
and preserving the product’s quality upon its distribution.

14. D. Promotion
In order to help the product make its way into the market, there is a need for
advertisements and promotions. Advertisements and promotions are a huge part in
marketing the product especially in the first years of the company’s operations.
Thus, Carbon Plus Corporation would use the following techniques in promoting
and advertising its product:
1. Newspaper advertisement.
Newspaper advertisement is one of the most common ways of advertising.
Most business ventures use newspapers as reference to the latest news and also to
identify new opportunities. Thus, using this type of advertisement is a good way in
communicating and promoting the company’s product not only is it less costly but
also there is no need for a certain time to deliver the message. It is readily available
at any time.
Carbon Plus Corporation would come up with an eye-catching advertisement
and include with it the business offerings and other necessary information about it.
2. Radio advertisement
Wherever we go, whether at school, offices or streets, we would hear radios
playing. Most people are fond of listening to the radio whether they are busy or
doing nothing at all. Thus, radio advertising would be of great help in promoting the
company’s product.
The company would create a catchy theme song and tag line to attract
listeners and would be aired on Amplitude Modulation (AM) and Frequency
Modulation (PM).

15. 3. Create a Facebook Fan Page
Almost every person in the world uses social media sites such as twitter,
tumblr, multiply and most especially, facebook. Considering this huge opportunity,
the company would make use of this site for the people not only within Quezon nor
CALABARZON but also for the whole world to know the company and its
offerings. It’s greatly efficient and it does not even cost a centavo.
VIII. Competitive Position
Quezon Province is well known for its abundance in coconut supply which only takes
less than two months to harvest, ensuring Carbon Plus Corporation, being the first manufacturer
of activated carbon in the province, a bounty supply and to fully utilize the accessibility of
coconut shells, our raw materials the whole year round. Furthermore, it has been proven in our
study that activated carbon from coconut shells provides better adsorption capabilities compared
to other sources.
The company offers the product at an affordable price and made it available in small
quantities compared to other manufacturers who only provide the public with bulk amounts, in
order to suffice the need of the small entities requiring relatively small quantity of the product.
We have carefully taken into consideration these small entities since they mainly comprise the
unattended markets; our potential share. In addition to that, we are allowing them to achieve the
utmost effect they desired, while using a small amount to avoid wastage and excessive
expenditures. Furthermore, accessibility of our company to the target market also adds up to the
edge of our company among other manufacturers. Once the consumer knew that there is a more
accessible, affordable and more customer-oriented manufacturer, they would think practically.

16. Instead of carrying the burden of availing the products from international companies, which of
course would be more expensive, or even from local companies located far from their places,
they would choose to patronize our company which would not only help us to achieve our goals,
but also help them in terms of cost saving.
1. http://www.quezon.gov.ph/