Chapter 2

SITUATION ANALYSIS
2.1 Market Summary
 Market Size

Geographic
The company¶s concentrated target market is the population
within Quezon City.
Demographics
  There is an almost equal ratio between men and female
consumers.
 The market will consist the following segments; kids (below
12yrs.), teenagers (13 and above) and adults.
 They are the students (in elementary, high school and
college), adults (employed or unemployed) and senior
citizens.
 Those who have budget or money of at least 80 pesos.
 Behavior Factors
 Consumers that are health conscious.
 Consumers who are involve in fitness activities.
 Consumers that seeks convenience and coolness in such
drinks.
 Consumers who seeks and wants to try something new and
something different.
 Market Needs - The product will cater to both physiological needs
(hydrating and nutritional value) and social needs (perception of a social,
fun drink with a sense of belonging within peer consumer groups). We will
serve the product in an outstanding customer service which will result to a
stable and continuous growing of customers. We will satisfy their wants
and desire by serving them a well prepared shake drink through proper
sanitation and with the taste they will sure to love again and again.
 Market Trends ± The current trends include the shift away junk foods and
carbonated drinks, a growing interest for healthier / beneficial products for
the mind and body, the trend towards the availability of easy to go
products for those with an active lifestyle, as well as the trend for
personalization through variety seeking in a wide introduction of pearl
shakes flavors.

  Market Growth - Filipinos are known for being an ice lover. It is probably
because of the warm weather we have here. That¶s why many
entrepreneurs and marketers seize this opportunity to open a pearl shake
business within the country. They offer different kinds and flavors of
shakes. They also create innovations in the product that is proven to suit
the unique taste of Filipino consumers. Today, you can almost see
anywhere a stall or carts that offer shakes and drinks. It may be in the
mall, roadside, supermarkets and etc.; as long as there are consumers
who are not just enjoying the great taste of pearl shake but even indulge
their selves in the coolness and relief given by a drink such as pearl
shake

2.2 SWOT Analysis

It captures the key strengths and weaknesses within the company and describes

the opportunities and threats facing.

 Strengths

 Brand Strength and uniqueness

The company¶s brand name is original and attractive to the

customers.

 New variety of flavors to choose from

The company is not concentrated in a particular flavor of shake but

rather it offers different kind of shake in a variety of flavors.

 Products that tend to make consumers lifestyle healthy

The product contains nutritional benefits for the consumers.

 Strong existing distribution channel

This kind of product usually distributed through stall or carts.

 Weaknesses

 Reliant upon particular pearl shake drinks

The Earthquake Freeze is considered as a newbie in the pearl

shake industry. There may be some instances that the company is

just reliant upon the existing pearl shake businesses.

 Lack in generating brand and product awareness

Because it¶s new in the industry people are not that familiar or

aware about the brand name and the company¶s product offerings.

Company need to strive hard to attain the maximum product awareness

 The product is seasonal

y
The product is intended for summer season and because of that
company should expect that during rainy season shake drinks is
not that in demand and probably volume of sales will decrease.
 Opportunities
 Introduction of new pearl shakes flavors
y
The company added some innovations and twist that we want to
share or introduce to the target market.
 Brand is attractive to consumers
y
The product¶s colorful and unique name seems to be attractive to
the consumers.
 Threats
 Strong competition
y
The company is not alone in this kind of business there are lots of
company in the same field that might become a big threat and
strong competition among this businesses may emerge.
 Health issues
y
The company is in the field of beverages industry. It offers a
products that the customers intake. There are some instance that a
issue concerning health may arrived but to avoid it the company
rest assured thatthe process and preparations are clean and safe.
2.4 Competition
³Earthquake Freeze³ top3 competitors are:
 Zagu
It took several months of experimentation, product sampling and planning before
the first Zagu store was launched in April of1999 by a young enterprising lady with a
degree in Food Science from University of British Columbia in Vancouver, Canada.
To this date, Zagu has blended more than40 million pearl shakes, a pretty good
number for something that was widely predicted as a passing fad. Now, Zagu has
grown from a tiny kiosk to a current network of over290 outlets nationwide. From its
humble beginning to its present success, ZAGU has proven that it is not just passing
fad. 85% of the stores have been occupying the same leased space for more that three
years. ZAGU foods can be found in malls, supermarkets and roadside locations. Zagu
also accepts franchise of their product to anyone who is interested to be a franchiser.
Behind the success of every ZAGU store is a professional management team and
dedicated employees committed to putting the customer first and achieving excellence in everything.

 Orbitz
Orbitz, a subsidiary of Metro Grind Corporation, was founded by a group of
young entrepreneurs. Orbitz has already opened over100 branches in major shopping
malls and key establishments in and around the Metro. The company is gearing up to
penetrate the International Market and further strengthen its presence in the Philippines.
Orbitz is an entrepreneurial project of Filipinos which matches the best of Eastern
and Western management culture with a delectably innovative quality product to
perfectly suit the standard and taste of the local market. Orbitz is a cool flavored drink
mix with dark, spherical, chewy balls made from yam and tapioca called Pearls. They
are currently offering20 different flavors to suit the unique taste preference of the local
consumers.
 Fruitas FruitSha k e s
From a humble beginning of just a single cart in Manila in February2002, Fruitas
² one of the core brands of Lush Group of Companies (LGC), founded and owned by
young entrepreneur Lester Yu ² has become one of the most promising fruit shake
businesses in the country.
The growth of Fruitas is phenomenal as well as inspiring for everyone. According
to Lester Yu, it is all the fruit of hardwork, passion, and integrity ² three values he holds
dearly. Now, with over400 outlets nationwide, obviously outnumbering the outlets of its
direct competitors, Lush Group of Companies is more than proud to see a lot of fulfilled
entrepreneurs who have partnered with them. The company currently has more than
100 partners and franchisees, and more than 600 employees. These individuals are
manifestations of business success stories amidst the current economic downswing.
Business is indeed booming and network profitability is excellent.
2.4 Product Offering
The company offers different kinds of refreshing and healthy pearl shakes with a
variety of flavors ready to serve among our target markets.
It is not like the usual and existing pearl shake drink. Using creativeness and
desire to be unique in the pearl shake industry, we added some innovations and twist to
the product.
The following are the flavors of pearl shake drinks that ³Earthquake Freeze´
offers:
 The Classic Shake
 Chocolate
 Vanilla
 Cookies and Cream

* These are the common or usual flavors of shake ideal for everybody. It is made

from ice, sugar, milk, and flavored powder. Pearls / sago in the bottom part. Skim milk,

Chocolate syrup, strawberry syrup and vanilla ice cream on the top.

 Tutti Frutti Candy Shake

 Strawberry

 Apple

  Mango

 Dalandan

 Melon

 Ube

 Pineapple
 Four Seasons

 Bubble Gum

*These are the fruity flavor shakes that kids and teens will surely love. It is made

from ice, milk, sugar and flavored powder. Pearls /sago in the bottom part. Candy

sprinkles, kisses, mini mallows, mini nips, skim milk and ice cream on the top.

  Caffeinated Shake

  Moc ha

 Cappuccino

 Coffee Caramel

  Creamy Coffee

 Chocó coffee

*Kind of coffee shake best prescribe for adult workers. It is made from ice, sugar,

milk and flavored powder. Top with chocolate syrup, grated chocolate and ice cream.

  Vegan Fruit Shake

 Pineapple-Strawberry Shake

 Banana-Strawberry Shake

 Strawberry-Apple Shake

 Chocolate-Banana Shake

 Mango-Melon Shake

 Orange-Lemon Shake

 Papaya-Carrot Shake

 Carrot-Strawberry Shake

*These are the healthy shake flavors made from real fruits and vegetables ideal

for those who are involved in fitness activities, vegetarian and health conscious. It is

made from ice, real fruits and veggies, sugar, and plain yogurt. Pearls / sago are
optional in this product.

 ³Earthquake Freeze Halo-Shake´

 It is based on the traditional halo-halo in the Philippines. Instead of using

plain ice we will use the flavored shake itself. It is just like the process of

layering the ingredients with the flavored shake.

 An order slip is provided here.

 The customer will just choose in any flavors and ingredients available.

 Sugar and evaporated milk are the fixed ingredients in halo-shake

Chapter 3
MARKETING STRATEGY
The key to the marketing strategy is focusing on the different taste of the different
segments of the consumers whose desires are always changing. They tend to seek for
something new and different to what was usual. The company can cover about90
percent of the pearl shake market because it offers innovations and twist in the product
that will meet the demand towards different market segments. The company almost
occupied all the segments in the market because it also offers product customization.
Customers can customize their own pearl shake that will surely one way to meet the
real desire of our consumers.
3.1 Marketing Objectives
1.To create a strong product awareness.
2.To provide fun, delicious, appetizing, healthy and uniquely enchanting shake
drink products while maintaining the commitment to our consumers.
3.To achieve an increasing number of loyal consumers.
4.To maintain a positive, strong growth of the company each year.
5.To become the top market leader in that particular product and segment.
3.2 Target Market
Together with the wide range of consumers of pearl shake, the company aims to
expand the target market of such product. And so, new different flavors are introduced
to widen the scope of market segments that the company will serve. And because of
these new flavors, almost the entire age bracket in the population is the target market of
the company. It offers flavors for the kids with ages12 and below either male or female.
Teenagers are also a target market, ages13-19 either male or female. Those adults
who are health conscious either employed or unemployed, male or female ages20 and
above. Senior citizens are also included as a target market.
3.3 Positioning
Earthquake Freeze will position itself as the only shake company that offers a
wide variety of pearl shake flavors to the wide range of market segments. It offers new,
unusual, attractive and unique shake drink experience with the aspects of play through
customization. The company doesn¶t just refresh its consumers but also provides
nutrition for the consumers¶ own benefits.
3.4 Strategies
Product Strategy
 The Core Benefit:A shake drink that refresh your mind and soul
while making your body strong and healthy.
 Actual Product:
 Branding: Colorful and Prominent ³Earthquake Freeze written in
front of the packaging.
  Brand Personality: Cool, Original, Funny, healthy
 Expected Product: Delicious and Clean pearl shake drink.
Pricing Strategy
The company¶s pricing objective is to survive and then get the maximum market
share as possible.
The company will use the cost plus pricing strategy. It is used primarily because
it is easy to calculate and requires little information.
The unit cost is calculated first and then includes an additional amount (mark-up) to
present profit.
The best feature of this strategy is simplicity and easy to administer and tends to
stabilize markets.
The company will also implement a price discounts for our loyal consumers.
Providing them a quantity discount known as³BarkadaPackage´. Consumers can get
additional one pearl shake if they avail a dozen of pearl shake. Seniors citizens can also
Cost of
Product
Additional
Amount
(Mark-up)
Selling Price
with Profit

avail a discount. Seasonal discounts may be also implemented particularly on rainy

seasons.
Promotion Strategy
The company¶s promotional objectives will fall under the combination of
informative and persuasive advertising. We will first inform or give knowledge to our
target markets about the product and then persuade them to like and purchase the
product.
Earthquake freeze is a newbie in the pearl shake industry with a large number of
competitors, that¶s why the company will set an enough budget to promote the product
and to establish strong brand awareness within the target market.
The promotional outputs will convey the clear message that the ³Earthquake
Freeze is a shake drink that refresh your mind and soul while making your body strong
and healthy.´ We will also incorporate the company¶s positioning; ³Be Refresh, Be
Healthy, Be Different, and Be Yourself´.
The company will promote and advertise the product through the following
mediums:
 Television Ads
 Print Ads (Magazines, flyers, tarpaulins to be posted in selected areas like
campuses, transportation, etc.)
 Internet (Company¶s own website, face book fan page, and other social
networking sites.)
  Public Relations (Sports events, school events, mall events and other
sponsorship activities)
The stated strategies will surely produce a great impact to our target markets. By
then, giving them the enough knowledge and information about the product they will
also share that information to those who are not yet familiar or aware with the product,
this strategy is also known as Buzz Marketing. We give information, they receive it then
they¶ll share it.
Place Strategy
The company will distribute its products directly to the consumer also known as
direct-marketing channel by establishing carts or stalls in the target area. It is because
the company offers perishable goods that cannot be store in a longer period of time. It
should be prepare on the time after the consumer order it and afterwards serve to them
immediately
3.5 Marketing Mix
Activities/Programs
Duration
Persons
Involved
Location
Outcome
Well-thought
advertisement will
be launch
Before and
during the
operation
Advertising
Staff/Personnel
Target Area
Brand
Popularity and
wide variety of
customers
Training of sales
persons
Before
operation
Management
Office
Quality
customer
service and
care
Fair pricing to
customers
During
o
3.5 Marketing Mix
Activities/Programs
Duration
Persons
Involved
Location
Outcome
Well-thought
advertisement will
be launch
Before and
during the
operation
Advertising
Staff/Personnel
Target Area
Brand
Popularity and
wide variety of
customers
Training of sales
persons
Before
operation
Management
Office
Quality
customer
service and
care
Fair pricing to
customers
During
operation
Management
Office
Company will
gain more
customers and
be more
competitive
Research and
development
Before
Operation
Management
Target Area
A well
distributed and
best selling
product
3.6 Marketing Research
Pearl shake although seasonal is very appropriate in a tropical country like the
Philippines. So, it will be very fortunate for the company to launch a product that will
cater the needs of the Filipino consumers. It has been proven that the hot weather in the
country made the pearl shake industry on the top of the market. Consumers desired this
product earnestly for its refreshing effect.