Marketing Plan
Musca Candela
KRYSTEL HERNANDEZ
JUHAYMA MANGULAMAS
FELINELLE PENALOSA
ANGELIE GARBIN
MARINA PALENCIA
KRESEE FAYE PALENCIA
2 BSBA –E
OCTOBER 11, 2010
Industry background:
The use of candles at home has increased dramatically for the last 18 years. According
to the National Candle Association (2007) candles are no longer intended for use only as
interior decorating items and an emergency light during brown out period, but now marketed as
art pieces, air freshener, therapy and meditating items, and so on. The candle market is
emerging as one of the top growing markets for the private label players; candles were ranked
15th among the 270 product categories in terms of volume and sales in a study directed by the
Boston Consulting Group (BCG) 2005. Candles not only remain, but are also expected to
consumer’s top pick for home fragrance and decoration elements.
The candle industry remains extremely competitive. A noteworthy numbers are
low priced, and customers do not seem to particularly brand loyal.
SWOT analysis
Strength
Candela offers a unique handmade products that could repel mosquito’s
Candela product is not seasonal, which represents an advantage in any market
It has a presentable and unique package
It is more as a gift item and a souvenir
Weakness
Lack of market presence in the Philippines as a quality candle
We are small producers if sales spike up more than planned, it might be difficult
to fullfil a large increase in orders
We have limited marketing budget to generate awareness of our product
We don’t have ongoing relationship with any retailers
Relatively high priced
Opportunities
Expanding the business over the local market will yield great number of benefits.
The growing profit and accessories industry imply that there is a growing demand
for these products.
There is a growing market trend in buying candles, they give the customers a
sense of security.
Threat
Fierce competition in candle industry.
Some people consider candles as open flames that pose to threats of fire to their
home.
There are lots of candles which have lower price than our products.
Mission:
Our mission is to provide quality and satisfactory products, promote
environmental and human friendly mosquito dragger, and to be competitive to both local
and global market.
Target market:
Basically our main target are the home owners or the house holds, middle or
upper class age rank of 25 to 40 years old who are seeking for a unique items, for gift
giving, personal use or for a souvenir .
Market Position:
Candela manufactures hand crafted, scented mosquito repellants and offer them
as a affordable replacement for the existing expensive citronella candles and a
consumable gifts to express themselves in their home.
Marketing Mix strategies:
Product:
The idea of making this product arise from the problem of suffocating smoke
produced by a burned lanzones skin and to produce a replacement for the existing high
priced citronella candle which are used to drag mosquito’s.
The investigatory team of the Notre Dame of Makilala last 2007 discovered that
the lanzones skin contains the most same element that the citronella candle has, to
drag away mosquitos, they made a candle that is mixed with dried powdered lanzones
skin and the result showed a great effect in dragging away mosquito’s and this is the
concept behind candela’s product.
We got the concept and develop it to make our own product by adding a relaxing
scent and relatively attracting colors, that makes our product different from others it
gives benefit.
The product design is more like a formal item like a gift item to attract our target
market and the name of our product Musca Candela derived from the Latin word Musca
means “Mosquito” and Candela means “Candle”.
Pricing:
Our product price is 40 pesos based on the cost based pricing strategy. We add 2.5%
mark up price to our product for our profit.
Costing
Unit Quantity price/pc total price
10pc. Glass 10 P100
12pc. Paraffin wax 6 P72
6m. Lace for candle 3 P24
3m. Lace 2 P6
(for packaging)
2m. Kinamay 18 P36
10pc. Sequence 1.50 P15
1pc. Stick glue 3 P3
2pc. Bouquet wrapper 10 P20
P276
Transportation P48
P324
To illustrate the markup pricing:
Total cost P324
Unit sales P 10
Total cost = P324 = P32.4
Unit Cost =──── ─
Unit sales P10
Markup price = Unit cost_______ = 32.4__ = P 40.5
( 1- desired return on sales) 1-0.2
Place:
Candles will be principally sold in specialty stores, gift shops and home
decors stores. Candela has chosen to use short distribution because we want to
maintain personal relationship in the channel.
Two Step Distribution channels
Candela → Wholesaler →Customer → Retailer
Promotion:
Because our budget is limited we will make our message and simple, focusing on
the products benefit: high quality, mosquito repellant with scent.
A radio add and a news paper add and to trade fairs for our promotional
strategy.
Implementation:
Our main objective is to promote brand awareness. In order to achieve this, first
Candela is going to use repetitive advertisements in the radio and advertisements on
news papers which will transmit simple message to the consumers to awaken
awareness to candela’s products.
