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Just answer 2.1 (production process) , 2.2 (fixed capital) , 2.3 (life of fixed capital) , 2.4 ( Maintenance and Repairs) Information: 1 MARKETING PLAN

Just answer 2.1 (production process) , 2.2 (fixed capital) , 2.3 (life of fixed capital) , 2.4(Maintenance and Repairs)

Information:

1 MARKETING PLAN

1.1 Description of the Product

[What is the product?]

The product is a Crutch with detachable umbrella holder. The product is made up of adjustable aluminum depending on the height bracket. The detachable umbrella holder is also made up of alloy which any umbrella can be used. The frame of the forearm crutch is usually made from an aluminium alloy. Aluminium has a low density and thus a low weight, to make it mobile and easily manoeuvrable. It also has high strength so that the crutch will support the full weight of a person without bending or buckling. Aluminium is also easy to machine and corrosion resistant to ensure a long life.

Plastic cuffs are used on the forearm crutch. It is usually made from a plastic - such as Nylon-6/6. It has good abrasion and hydrocarbon resistance, to handle the repeated friction and contact to skin when walking. It also has high strength and stiffness to provide sufficient support to the user.

The grip handles of the forearm crutch can be made from either the same plastic as the cuffs or from rubber. The plastic provides more wear resistance and durability, but the rubber is more comfortable and can also absorb more shock.

The tip of the forearm crutch is made from rubber. The rubber provides plenty of grip and stability to prevent slipping when walking. It also has good shock absorption to dampen the shock of walking.

1.2 Comparison of the Product with Its Competitors

This crutch with detachable umbrella holder is very unique since a crutch with umbrella holder is new to the market. This works as both an umbrella and a crutch that can assist the PWD's in walking, as well as, can be used during any seasons in the country either sunny or rainy. There have been many crutch products offered that can be bought in the market or through online shops; however, the unique factor of this product is that the crutch or cane is detachable from the umbrella. In this case, the PWD can both use the crutch and the umbrella at the same time. In addition, this umbrella can be easily removed from the crutch and very easy to use.

1.3 Location

[Where will the business be located?]

As finding a good spot to stand a business, the location of the business is located at KM. 5 Balili, Along National Road, La Trinidad, Benguet Philippines near Jollibee foods Corporation. La Trinidad is the capital of Benguet, It is well-known for its beautiful tourist spots. KM. 5, La Trinidad is a passageway that connects different places like Baguio City, and other provinces of Benguet.

1.4 Market Area

According to Rodrigue, 2020, Market area is a surface over which a demand or supply offered at a specific location is expressed. The business would be supplying crutches to the different hospitals in Baguio City and to walk-in customers with prescriptions from doctors of what specific crutch they need. Hospitals in Baguio City include BGH (Baguio General Hospital) and Medical Center, Saint Louis University - Hospital of the Sacred Heart, Notre Dame de Chartres Hospital, Pines City Doctor's Hospital, and Baguio Medical Center.

1.5 Main Customers

[Within the market area, to whom will the business sell its products?]

It is an important task to know who the main customers are when starting a business. It helps build a foundation when formulating a market strategy. The main customers are the groups of people who have specific needs and wants that the business wants to provide. They are the ones who the business wants to reach.

Needs of people differ as time pass by and because of this people look for products that can serve their needs and wants. Our generation today, people usually tend to look online for the products and services that they need and people have their own reasons for looking for products online, one reason is that some customers are not capable of going outside because of physical disabilities.

The main customers of the proposed business would be the people who have walking disabilities that have a hard time using umbrellas while using their crutches. They also considered people with other disabilities who want to integrate the umbrella holder in their physical aid tools. The main customers would therefore be those people who have walking disabilities, those who are looking for crutches for physical therapy, and the new patients who are recommended and/or required by doctors, physical therapists, or healthcare professionals to use crutches.

1.6 Total Demand

[Is it possible to estimate how much of the product is currently being sold?]

According to Chappelow, 2020, Demand is referred to a customer's desire to purchase goods and services and are willing to pay a price for a specific good or service. Demand would depend on how many customers are going to buy the product and are willing to pay the price for the product.

Patients that need to use crutches, as stated above would be the main customers of the product, the proponents have gathered information from the Philippine Statistics Authority to determine the projected demand for the product.

According to the PSA, the average annual population growth rate is 2.36%. The table below was computed by adding 2.36% to the annual population every year. It shows the annual population for the years 2015 to 2020.

Year

Population

Persons with disability

2015

358,124

4,297

2016

366,576

4,399

2017

375,227

4,503

2018

384,082

4,609

2019

393,147

4,718

2020

402,425

4,829

2,279,581

27,355

The table above shows the average number of persons with disability annually. It was computed by multiplying the annual population per year by 1.2% according to PSA. The business plan however needs information of the annual population for the next five year so the proponents used the same computation above to determine the projected annual population for the years 2021 to 2025 as shown in the table below.

Year

Population

Persons with disability

2021

411,922

4,943

2022

421,643

5,060

2023

431,594

5,179

2024

441,780

5,301

2025

452,206

5,426

Total 2,159,146

Total 25,910

Therefore the total demand for the next five years is 25,910 which are those persons with disability.

1.7 Market Share

Since it's new to the market, the market share for this product may be moderate to high.

1.8 Selling Price

The average price of crutch here in the Philippines ranges from 500-800 depending on its quality. Since our product has a unique feature of an attachable and detachable umbrella. This can be sold for at least 700-1000, depending on the quality. The user would prefer paying a small amount more for the added benefits of our product.

1.9 Sales Forecast

[How much of the product will be sold?]

1.10 Promotional Measures

[What promotional measures will be used to sell the product?]

1.11 Marketing Strategy

[What marketing strategy is needed to ensure that sales forecasts are achieved?]

The market strategy that we use to introduce our product is through advertisement and social media. For advertisement we can post it on magazines, billboards, direct mails, and newspapers and for social media we will post the item with complete information and guidelines. We make sure also to accommodate inquiries in time and no late responses.

1.12 Marketing Budget

[How much do you need to promote and distribute your product?]

The budget that will be needed in promoting the product is around P300,000. The possible distribution channels are selling directly to consumers, retailers, supermarkets, wholesalers, and pharmacies.

2 PRODUCTION OR OPERATION PLAN (Choose what is appropriate to your business, Production if it is a product and Operation if otherwise)

2.1 Production Process

[What is the production process?]

2.2 Fixed Capital

[What buildings and machinery (fixed assets) are needed and what will be their cost?]

2.3 Life of Fixed Capital

[What is the useful life of the building and machinery?]

2.4 Maintenance and Repairs

[How will maintenance be done and are spare parts available locally?]

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