MARKETING PLAN PART I

Executive Summary

Loba Loca Entertainment House is a business with the combination of movies, KTV and
video games that is expected to be established in Dagupan City specifically in Assada Centre,
AB Fernandez Avenue. The competition for this type of business is low because there is no
business that is similar to this concept. This is proven through the use of descriptive research
design that the researchers’ had done where they explored the whole city of Dagupan to look for
a similar or exact concept but they’ve found nothing. Loba Loca Entertainment house is the first
one. The business aims to give relaxation and leisure to its customer in an affordable price. The
target markets of this business are the teens, students, employees and families. These people
may spend their quality time with their friends, families and co-workers in the business. They will
go here because of the privacy and fun that the business can provide.

The major marketing objective of Loba Loca Entertainment House is to be a recognized

business entity that gives good and quality services through a fast–pace transactions,
approachable employees, and efficient working entertainment consoles namely: movies, KTV
and game consoles. Based on the statement above, the business expects to earn high income
because of the unique business concept and its friendly price to customers.

Current Marketing Situation

Loba Loca Entertainment House will have a KTV, movies and game consoles in one
room. The business will provide the customer with any choice of movie they want. The gaming
consoles will only be provided upon request. The costumer may also reserve a room in advance
if they wish to have a meeting or want to celebrate their birthday there. The business also offer
food but customers can also bring their own with the exception of potent smelling food items
like” bagoong” and also soup based food. Loba Loca Entertainment House will be also offering
bundles and promos to customers, the promos and bundles will be posted in front of the door
and it will also say how many rooms and how much will everything cost, it will also depend on
what room the customers would like to occupy. It will also offer three rooms, the small room, the
medium room and the large room. Every room will be sound proof so that customers will have
some privacy, with exception of course that the door of your room will have a small window so
every 10 to 20 minutes one of the employees would check up on them if they need anything
else.
Market Description

Loba Loca Entertainment House is a business concept with a combination of KTV,

movies, and game consoles which aims to provide leisure, relaxation, and fun to all of its
expected customers without spending too much.

The target markets of Loba Loca Entertainment House are teens or students, employees
or workers, and families. They can either be male, female or part of the LGBT group ages
ranging from younger or older than 15-69 years old. They are the ones who are usually stressed
out, seek to have fun by going out, and want to have a quality time with their family and friends.
The target markets are those people who play video games, watch movies, and sing in a KTV.
Through these activities, the stress that they are feeling will be washed away and will be
replaced with fun and relaxation. Though some people has their own ways to release stress,
this business is recommended for them to try because it is a great way to relieve stress, have
fun and is also budget friendly.
 MARKETING PLAN PART II

Product Review

Loba Loca Entertainment House can provide leisure, relaxation, and a peaceful place to
go. It is where a person can have their own place to watch old and newly released movies, play
games, eat food, study and relax or just to have fun with their family and friend. It is also very
affordable and open to people who are in groups, pair or just by yourself. This business entity is
located within the vicinity of Dagupan City which offers the following products and services:

* Three kinds of entertainment consoles: KTV, Cinema, Video Games.

* Four different sizes of rooms: (2) small room, (2) medium room, (2) large room, (1) VIP
room

* Offers alcoholic beverages with 10% and below alcohol content.

* Offers over the counter packaged foods, nachos, popcorn, and chips as well as drinks
such as soda and iced tea.

* The business allows the customers to bring their own food inside the room through
which specific rules are should be followed.

* Assures the customers that the songs, movies, and video games are up to date.

* Provides the customer an affordable and budget friendly price.

Competitive Review

LobaLoca Entertainment business has an edge when it comes to services it offers.

Providing a 3-in-1 entertainment in a private airconditioned room that is budget friendly making it
convenient to customers who can’t afford high prices like those that are offered by KTV
businesses.

Pricing for these services is depending on what room the customers will avail. In the
small room, it is P200 per hour, in the medium room, it is P300, in the large room, it is P400 and
lastly is the special room for P500. Key competitors of Loba Loca Entertainment House services
include the following:

* KTV. Music and Lyrics started out in 2017 as a KTV Located at Arellano Street, Dagupan City.
Aside from the KTV, they also offer promos and food packages per room as an additional
advantage in their business. Music and Lyrics is well-known because of its highly affordable
price and it is a place wherein you can enjoy, relax and have fun.

* Video games. World of fun or also called WOF started out in the early 2000 and has been
well-known in the whole city of Dagupan because of its entertaining and exciting games.
Another reason, why people go there is because you can easily play without spending too much
money. That is also one of their advantages why it became such a hit to people.

* Cinema. The CSI Cinema became a hit to Dagupan City because it is the first ever long run
cinema that have been established in the city. Also, they are promoting a better quality of
movies with a fully air-conditioned place for the people to enjoy and relax while watching a
movie.

Despite the strong competition, Loba Loca believes that it can create a more exciting
and fun entertainment house that offers additional promos to customers. In Dagupan City, there
are only few entertainment houses that have been created and it will serve as one of Loba
Loca’s advantage because of the new and unique concept that will offer to people. Loba Loca
believes that it can establish a competitive advantage that will offer a lot of new concepts to the
expected customers of the business.

Channels and Logistics

Since Loba Loca was a new business concept in the industry, this business is classified
specifically as a personal type of a company. Due to its unique features it can offer, it will help
the business to grow and be known in Dagupan City offering affordable place to chill and relax.

As the business gains acceptance, channels will expand into several branches in
different, strategic locations relevant to the target customer segment.
 MARKETING PLAN PART III

Strengths, Weaknesses, Opportunities, and Threat Analysis

Table A1.3 I LOBA LOCA’s Strengths, Weaknesses, Opportunities and Threats

Strengths Weaknesses

 All in one setting

 Property Losses
 Competitive Price  High Capital
 Location

Opportunities Threats

 Trends
 Competitive Market
 Technology and Successful Innovations
 Broad Target Market

Strengths

1. All in one setting. The business has a combination of a cinema, KTV, and game
consoles that other business does not have. This type concept is not present in
Dagupan City.
2. Competitive Price. The money that the customer will have to spend is low. Those people
who cannot afford expensive KTV, movie and game consoles service can go in here.
Many people can afford it because this business is intended for everyone.
3. Location. The business is near schools, business establishments and most public utility
vehicles pass through this location. It is because the target market of Loba Loca
Entertainment House are all of ages especially students, employees and families.

Weaknesses

1. Property Losses. The entity may suffer from property losses if it does not check its
inventory of its equipment regularly. Microphones, game consoles, and other equipment
 that is used in daily operations must be checked if there are any damages before the
customer leaves.
2. High Capital. The business has a high initial investment of P1 500 000 which the return
cannot be guaranteed because of its possible expenses and the competitive market.

Opportunities

1. Trends. An opportunity for this business is the new trends in the society like the rising
movies, games and songs. Through the use of internet, the researchers can know,
evaluate and apply these trends for the good of the business. Through these trends, the
business will know the things or concepts that will attract, avail and satisfy their
customers.
2. Technology and Successful Innovations. Since this business is about entertainment, it is
subject to change. These two are considered as an opportunity where the business can
base their new equipment to give a smooth service for the customers.
3. Broad Target Market. It is an opportunity because the target market of Loba Loca
Entertainment House are all of ages especially students, employees and families. The
researchers consider many target markets where they will get their high income.

Threats

1. Competitive Market. Familiar cinemas, KTVS, and gaming houses will be tough to
compete with, given that the entity is new to the industry and that the public prefers
places which they are familiar with. Establishments like CSI’s World of Fun and Cinema,
Music and Lyrics, Lenox, Star Plaza, Nostrax, are known to many Dagupeños which
makes it difficult for the entity to establish its brand around the vicinity of Dagupan.
Different variation may possibly create because the entity’s new concept, this can
promote to future competitors and may lead to fading of the entity’s originality.

Objectives and Issues

LobaLoca Entertainment House has a set diagram's but achievable objective for the first
and second year of market entry.

First year Objectives

During the initial year Loba Loca Entertainment House aims to be a great hit even it is
just new in Dagupan City, being able to provide an all in one business entity that people would
love. The business also aims to achieve a 2% share in the market or approximately P 5 740 800
in sales and a total of 17 464 hours to be occupied by the customers with break-even achieved
in the final period of the year. Having with an average price of rooms Small room- P 200,
Medium room- P 300, Large room-P 400 and the Special room- P 500.

Second Year Objectives

During the Second Year, Loba Loca Entertainment House objective is to maintain its
popularity that it established in the first year. To establish a distinct service offer in the minds of
customers, "budget friendly" where they can relax and have fun. Thus, with Loba Loca’s
popularity, our second objective is to gain more customers than we have in the first year and an
increase of hours to be occupied of and an increase of sale by at least 20%.

In relation to it, Loba Loca Entertainment House aims to make the previous sales of P 5
740 800 to P 7 176 000 and make their target hours to be occupied from 17, 464 hours to 21,
840 hrs.

Issues

In launching this new type of entertainment house, the main issue is the safety of
properties or the equipment that the business entity will use to provide service to customers
because it might be damaged by careless customers. The second issue is the recognition of the
business whether it will become well–known or not and its profitability.
 MARKETING PLAN PART IV

Marketing Strategy

Loba Loca Entertainment House will implement multiple marketing strategies where it is
positioned in earning customers’ trust and value. It includes improving their customers’ loyalty
and brand. The business said that they will give good and quality services and they will prove
their word of mouth through smooth transactions, friendly staffs and proficient entertainment
devices. Their customers’ loyalty will improve and their name or brand will become famous
where customers will recommend them through their friends and acquaintances. Second
strategy is launching a non–traditional advertising campaign like tarpaulins, flyers and through
social media where many people and prospected customers can see and recognize Loba Loca
Entertainment House. Lastly, they will ensure that the business will stay a fresh and new that
they will have new actions every month (see Marketing Plan V, Action Programs).

The business will also establish a price differentiation where many audiences can afford
its service compare to their competitors such as Star Plaza and Lenox Hotel where a group or
individual customers will have to spend P3500 and can consume the service for the rest of the
operating time, Music n Lyrics for a minimum of P1050 for 4 hours where in Loba Loca, they can
avail the service for a minimum of P200 and a maximum of P500 for every hour.

Loba Loca Entertainment House will have target markets of families, students and office
workers that seek privacy, leisure and relaxation. These market segments are composed of all
ages.

The possible issue of property damage or loss will be solved by having rules and
regulations created by the management, that customer is liable for any loss or damaged items.
Also, regularly checking the equipment and putting it back to its original place after being used.
Having a log book of inventories to monitor and to know if something is missing. Ensuring that
the other equipment like DVD players, game consoles is safely placed on a secure cabinet to
avoid unnecessary incidents of property damage.

Positioning

LobaLoca will be positioned on an “expect and anticipate more” value proposition. In that
case, the business will offer a lot of services that LobaLoca have. In terms of their product
features, expect a more fun and exciting games, newly released KTV songs and different kinds
of movies like comedy, drama, horror and fantasy all in one room that the business can offer to
its expected customers. The business will also offer over the counter foods to their customers
while enjoying their stay at LobaLoca. On this case, LobaLoca is not just an entertainment
business. It also gives relaxation and satisfaction to its customers at a very affordable price.

Product Strategy

Loba Loca Entertainment House will be rendering their services with all the features
described in the Product Review. The business ensures that a good quality service will be given
to the customers. Good quality service such as providing fast and efficient service, hiring
accommodating and friendly staffs, and being responsive to the customer’s needs and requests.
After all, customer satisfaction is the main reason why a business is offering their services aside
from maximizing the value of the firm. A good quality service gains loyal customers and good
feedbacks from them. Also, the business wants to provide an affordable entertainment services
for the customers to have a variety in choosing the things they want to do and for their
convenience as well. The business ensures that there are a variety of movies, songs, and
games to choose ranging from old to new ones. As a new concept in the market, Loba Loca
Entertainment House will apply all of their strategic plans and marketing mix to their operations
for their brand-building.

Pricing

There is little price variation in the enhanced Loba Loca entertainment house category,
particularly among leading entertainment business. For this reason Loba Loca entertainment
house will follow a competition-based pricing strategy. Given that Loba Loca claims superior
quality, it must be careful not to position itself as a lower-cost alternative. Prices vary
considerably based depends on the areas, food and quality of service. Regular price for small
room is 200 per hour for medium room is 300 per hour for large room is 400 per hour and for
special room is 500 per hour. Loba Loca entertainment house is more affordable than other
competitors that give higher price. When talking about the snacks, the business offers chips,
beverages, and other snacks for a very affordable price depending on the snack deal they will
purchase. The snacks offered are for those who didn't bring foods with them.

Marketing Communication Strategy

Loba Loca’s marketing communication strategy refers to three areas: Advertisement,

Sales Promotions and Social Networks. Loba Loca believed that these communication
strategies can help them reach their target customers as well as their potential customers.

 Advertising. Loba Loca will make use of flyers in advertising their brand. Flyers
distribution is one type of advertising which are low cost and effective as well. Flyers will
be distributed to people walking around the pavements in front of the location by staffs
during hour of slow sales. Posters and display stands will also be utilized in advertising
the brand.
 Sales Promotion. Promotions usually increase sales. Not only will Loba Loca gain its
potential customers and benefit from them, but also for the customers who will avail the
promo. Barkada bundles, anniversary promos, discounted prices for occasions, such as
birthday and graduation are some of the offerings that Loba Loca has to promote.
 Social Networks. The primary target customers of Loba Loca are teens which are
known to be influencers as they can influence people through using social networks.
Usually, teens can be found in various social networks such as Facebook, Twitter, and
Instagram. Loba Loca will build Facebook Page, Twitter and Instagram accounts. This
will serve as the information provider with regards to the news and updates about Loba
Loca like service offers, promotions, and schedule to keep everyone updated.

Marketing Research

Loba Loca uses the Descriptive Research method that will effectively reach their target
customers. Descriptive Research is a quantitative research method that attempts to collect
quantifiable information to be used for statistical analysis of the population sample. It is a
popular market research tool that allows collecting and describing the nature of the
demographic segment. The business will also monitor and observe their rating through the use
of surveys and through social media. In this manner, the company will gauge the customer's
perception of the service and their general satisfaction. This is for future development of their
services and new franchises
 MARKETING PLAN PART V

Action Program

LobaLoca Entertainment House will perform the following plans during the first 6 months
of operation:

September. Loba Loca Entertainment House will launch their soft opening on the third week of
September. During the first two weeks of September, the brand web site and other sites such as
Facebook will present teaser information about the business as well as its prices, promos, and
location. Flyers with a measurement of 8.27x11.69 inches and 4x6 tarpaulins will also be utilized
in advertising the business. The staffs of Loba Loca will ensure that all of their products and
services are on set and ready to go. The business will be enhanced by promoting through
different social media sites. The expected expenses to be spent for the flyers and tarpaulins will
be about three thousand and five hundred pesos (PHP 3500). This will cover the expenses for
the entire month.

October. On the date of the grand opening, the services will be available with the chance to
avail free chips, popcorns, and drinks for the first hour of their stay. The business will be
available for all age group and open from 10 am to 2 am. The brand website and other websites
will be updated regularly in order to improve customer service and communication. The
expected expenses to be spent for the free chips, popcorns, and drinks on the date of the grand
opening will be about three thousand five hundred pesos (PHP 3500). This will cover the
expenses for a day only.

November. On this month it will mark the start of Halloween. The business will give free
candies to the customers. The business will also add some decorations in accordance with the
theme. The advertisement of the business will continue through which more customers are
expected to come. The business will prepare for the month of December and will give some free
services for Christmas. The expected expenses to be spent for the decorations of the rooms
good for the whole month of November will be about three thousand pesos (PHP 3000). Also,
the free candies that will be given on the counter will cost one thousand pesos (PHP 1000).

December. Through the month of December, it is the time of Christmas. The management of
Loba Loca Entertainment House will establish a free photo booth with a "merry" theme. The
photo is free if the customers will avail any of the service. The photo will represent a good
memory of their families, friends and colleagues. The business will also extend the operating
hours of the business from 10am-2am to 10am-4am. This is to enhance the marketing
strategies and sales of the company. The estimated expenses that the company may spend for
the free photo booth for the month of December will be about three thousand pesos (PHP
3000).

January. For the month of January, the operating hours will be maintain like the month of
December because of the New Year's celebration where many people are having hangovers
about the preceding events. The business will also give a promo where customers can extend
their service availability. If customers can avail a 10-hour stay, then the customers will have
another 1 hour free. Through the use of loyalty card, the business will be able to know how
many hours a customer can stay. Also, the business is going to leave a stamp in it depending
on the hours that the customer will avail.

February. Free mini chocolates will be given to customers if they will avail any of the service. Of
course it is the Love month. The movies that the Loba Loca Entertainment House will play are
about love for the significant other, love for families and importance of friendships. This is to
entertain and inspire their Valentine's audience. The estimated expenses to be spent for the
free mini chocolates that will be given to customers will be about three thousand pesos (PHP
3000).
 MARKETING PLAN PART VI

Budgets

Loba Loca has set a first-year sale goal of Php 6,000,000 with a projected price of Php
215 per unit for a total of 20 units sold. Loba Loca expects to break even during the final period
of the first year. A break-even analysis assumes per-unit whole-sale revenue of Php 296 per
unit, a variable cost of Php 235, and estimated first-year cost of Php 6,000,000. Based on these
assumptions, the break-even calculation is:

6,000,000/296 – 235 = Php 98,361

120,000
Unit cost = (215+20) + = 296
520+1456

296
Mark up price = = 592
.5

120,000
Break-even price = = 336
592−235

1,440,000
= 23,607
296/day−235 /day

Controls

“Marketing Control is the most important task of thee marketing department of the
company it is control tool for ensuring that the marketing activities of company get directed
toward its marketing objectives”.

LobaLoca is planning to monitor its services offered like KTV, Video games, Cinema to
satisfy its expected customers. This system will enable the company to be secure with any
problems that may occur in the business. Also, the company may control all the monthly sales
and monthly expenses of the business through the use of cash budgeting. In checking the
supplies of foods, the company may also be updated with the shipping of the products on how
fast it can be address inside the business.

Sources: Principle of Marketing, Kotler, Armstrong, 2016, Appendix 1, page 664 and
Marketing Control: Meaning, Nature, Significance and other details obtained from
www.yourarticle-library.com, 4th paragraph, June 2014.