Bachelor of Science in Business Administration

Major in Management
School of Management
University of Asia and the Pacific

Marketing Plan for Fresh - O Shirt

(A Market Entry Strategy for a Shirt for Sports for Men)

Submitted in Partial Fulfillment of the Requirements for

MGT220: Principles of Marketing

Submitted by:
Elcid Gregory de Guzman
Alvin Kenneth Mark de Vera
Ruth Park
John Christian Toledo
Juan Miguel Zaragoza

Submitted to:

Mr. Patrick Zeta

Faculty-In-Charge

December 2016
I. Executive summary
a. Product
A t-shirt that is made from a special material called Merino wool which absorbs
sweat and can minimize foul smell. This product will benefit most athletic male individuals.
The product is available in different sizes from small to extra large.

b. Brand name
Fresh - O
Our shirt is basically made of merino wool which is known for being one of the
softest type of wool. Making the wearer feel comfortable and at the same time merino has
an antibacterial property that is called lanolin which reduces the foul smell or body-odor.

c. Product Concept
A shirt that is used for working out but removes the foul smell that a typical workout
shirt will have after being used and put in the laundry.

d. Purpose/Motivation
To prevent the foul smell problem when you will put your wet clothes in your
laundry.

e. Target Market
We chose MALE as our target market ages 20-39 years old specifically college
students and young professionals, from class A and B in Metro Manila.
We also chose to focus on male since, according to research:

• Men sweat more than women approximately four times more per day
• Testosterone is believed to enhance the sweating response
• Findings show that women have less body fluid than men
• Men tend to be larger and require more sweat to balance the heat

f. Location or Trading Area

For our 1st and 2nd year, we will be selling online through social media accounts
such as Instagram and Facebook.
For our 3rd year, we will try to expand to different Department Stores around. We
would mostly focus on selling our product to Department Store in Greenbelt, Shang and
other high end malls.
g. Population
Population 1.652 million
X % of Class AB 0.01
X % of Age group 0.18

1
 X % of willingness to buy the product 0.88
= 2, 617

II. Table of contents

Executive Summary………………………………………………………………………… 1
Table of Contents…………………………………………………………………………… 3
Market Situation…………………………………………………………………………….. 4
Industry Analysis………………………………………………………………….... 4

2
 Competitors…………………………………………………………………………. 5
Consumer…………………………………………………………………………….. 6
SWOT Analysis…………………………………………………………………………….. 12
Objectives and Issues…………………………………………………………………… 12
Marketing Strategy………………………………………………………………………… 13
STP Approach……………………………………………………………………… 13
4Ps of Marketing…………………………………………………………………… 16
Action Program……………………………………………………………………………. 18
Control………………………………………………………………………………………. 19
Bibliography……………………………………………………………………………….. 20
Budget……………………………………………………………………………………….. 22

III. Current market Situation

A. Industry Analysis
The fashion and apparel industry encompasses broad range of garments and uses
a wide variety of textile manufactured. It consists of companies that design and sell
different kinds of clothings, footwears, and accessories. Product categories of this
industry include everything from basic clothing such as underwears to luxurious items like

3
cashmere sweaters and alligator-skin handbags. Traditionally, apparel companies are
more known to be wholesalers, selling large quantities of goods to different retailers.
However, it has become more difficult to draw a line between wholesalers and retailers
because most apparel companies now have both types of operations.
Sports clothing industry is a kind of apparel industry that comprises different kinds
of sportswear and sports-inspired equipments that are typically worn not only for workouts
but also for leisure activities.

● SIZE IN TERMS OF PESOS

The global market for sports and fitness clothing is projected to reach $196.2 billion
by 2020, driven by the increasing population that participates in sports and fitness
activities (GIAI, 2016). Opportunities in the market are primarily attributed to the growing
focus on a healthy lifestyle in both developed and developing markets coupled with
technological innovations which aims and enhances user comfort and performance.

● STAGES IN INDUSTRY
The sports apparel industry is at its maturity stage because it has reached the point
of having many competitors, and is their main focus to innovate and optimize their profit
the a low cost in expenses. Different industries compete not only in their product but the
prices they set for it as well. This stage is where profit reaches its peak, and It can be
seen that the power of its buyers are increasing, and its supply matches its demand.
Besides its many competitors in the market, products differ through product
differentiation.

● TRENDS AFFECTING THE INDUSTRY

1. Increase in the number of fitness clubs and gyms
2. Consumer desire to make a fashion statement drives development of fashionable
athletic fabrics
3. Expanding population of the middle class could propel sales in developing markets
4. Increasing participation of physical activities like hiking, crossfit, zumba, etc.

B. COMPETITIONS
COMPETITORS PRODUCT PRICE PLACE PROMOTION OVERALL
(SHIRT) STRATEGY

NIKE Sports P 2,000 to Retail Advertisements Continuous

footwear 4,000 focus on
Online Sales promotion innovation
Sports stores

4
 apparel Direct Emphasis on its
Store marketing R&D
Sports outlets department
accessories
Produce
Sports products that
equipments reduce injury,
help in athletic
performance,
and maximize
comfort and
enjoyment.

ADIDAS Footwear P 1,000 to Retail Television Focus in the

2,500 advertisements marketing and
Apparel Outlets distribution
Products channels in
Accessories Online placing different
fashion countries
stores or
websites Critically
evaluate
consumer
buying
behaviors

Struggle to
secure prime
shelf space.

5
 UNDER Sports P2,500 to Company Advertisements Supply and
ARMOUR footwear 3,500 website distribute high-
Sales promotion tech athletic
Sports Company's gear to
apparel stores Direct individuals but
marketing also to athletic
Sports teams.
accessories

Cellphone
Apps

C. CONSUMER
1. Awareness Data
BRAND FM OM UNAIDED AIDED TOTAL

NIKE 73 27 100 0 100

ADIDAS 19 68 87 7 94

PUMA 0 24 24 42 66

REEBOK 0 20 20 38 58

UNDER 8 28 28 20 48
ARMOR

JORDAN 0 14 14 43 57

EVERLAST 0 6 6 39 45

FILA 0 6 6 42 48

UMBRO 0 9 9 36 45

2. Product Usage Data

● MARKET PENETRATION
a. What type of shirt for sports do you use now?

6
 POLO T-SHIRT 28 (13%)
V-NECK T-SHIRT 16 (7%)
PLAIN T-SHIRT 55 (25%)
HOODED 7 (3%)
GRAPHIC T-SHIRT 19 (8%)
DRY-FIT SHIRT 52 (23%)
LONG SLEEVE 19 (8%)
SWEATSHIRT 28 (13%)

● FORMS AND VARIANTS

a. How long in days or weeks does this size last with you?

ESTIMATE 6 – 12 MONTHS

b. When or for what occasions and purposes do you use t-shirts? When or for
what else?
● PRODUCT RECYCLING OPPORTUNITY
a. Who else in the family besides yourself use shirt for sports?

PARENTS 66 (46%)
SIBLINGS 68 (48%)
BABY 2 (1%)
MAIDS 1 (1%)
OTHERS 5 (4%)

● BRAND LOYALTY / BRAND SWITCHING / MARKET SHARE

a. What brands of t-shirt have you ever used? What else?

NIKE 80 (47%)
ADIDAS 44 (26%)
PUMA 7 (4%)
REEBOK 6 (3%)
UNDER ARMOR 21 (12%)
JORDAN 7 (4%)
EVERLAST 2 (1%)
FILA 2 (1%)
UMBRO 3 (2%)

7
 b. What brand did you last use?

NIKE 59 (59%)
ADIDAS 23 (23%)
PUMA 2 (2%)
REEBOK
UNDER ARMOR 15 (15%)
JORDAN
EVERLAST
FILA 1 (1%)

c. What brand did you use previous to this last one?

NIKE 55 (55%)
ADIDAS 26 (26%)
PUMA 3 (3%)
REEBOK 3 (3%)
UNDER ARMOR 12 (12%)
JORDAN 1 (1%)
EVERLAST
FILA
UMBRO

d. What brand do you use most often?

NIKE 48 (48%)
ADIDAS 24 (24%)
PUMA 3 (3%)
REEBOK 3 (3%)
UNDER ARMOR 17 (17%)
JORDAN 2 (2%)
EVERLAST 1 (1%)
FILA 1 (1%)
UMBRO 1 (1%)
CONVERSION/RETENTION TABLE

TA TE CR TP RR MS

8
 NIKE 100 80 0.8 48 0.6 48
ADIDAS 94 44 0.47 24 0.55 24.299
PUMA 66 7 0.11 3 0.43 3.1218
REEBOK 58 6 0.1 3 0.5 2.9
UNDER 48 21 0.44 17 0.81 17.1072
ARMOR
JORDAN 57 7 0.12 2 0.29 1.9836
EVERLAS 45 2 0.04 1 0.5 0.9
T
FILA 48 2 0.04 1 0.5 0.96
UMBRO 45 3 0.07 1 0.33 1.0395

3. Purchase Data
● MARKET DEVELOPMENT
a. When you last bought t-shirt, where did you buy it?

BRANCH STORE 27 (27%)

MALLS 53 (53%)
ABROAD 4 (4%)
OUTLETS 16 (16%)

b. Where do you buy t-shirt most often?

BRANCH STORE 27 (27%)

MALLS 53 (53%)
ABROAD 4 (4%)
OUTLETS 16 (16%)

● MARKET SIZE OPPORTUNITY

a. How often do you usually buy shirt for sports?
6 - 12 MONTHS
b. What price did you pay in that last purchase?
1, 500 - 4,000
c. The last time you bought shirt for sports, did you have a brand in mind?

YES 60 (60%)
NO 40 (40%)

9
 f. What was that brand?
NIKE 33 (55%)
ADIDAS 17 (28%)
UNDER ARMOR 10 (17%)

g. Did you find that brand in the store you went to?

YES 36 (60%)
NO 24 (40%)

h. What did you do then?

BUY WHATEVER BRAND 8 (33%)

WAS AVAILABLE
LOOK FOR THE BRAND 6 (25%)
IN ANOTHER STORE
POSTPONED BUYING 7 (29%)
UNTIL NEXT TRIP
OTHERS 3 (13%)

4. Attitude Data
a. In buying a shirt for sports, what product qualities do you look for? What
else?

COMFORTABLE 44 (44%)
AVAILABILITY 14 (14%)
MATERIALS USED 7 (7%)
LONG LASTING 17 (17%)
SIZE 5 (5%)
STYLE 10 (10%)
DESIGN 3 (3%)
5. Product and Brand Image Data
IMPORTANCE RATING OF PRODUCT ATTITUDE
EI QI LI NI
BRAND NAME 27 42 20 11
QUALITY OF 83 15 2 0
SHIRT
PRICE OF SHIRT 46 33 18 3

10
 STYLISH DESIGN 49 34 19 8
PLAIN DESIGN 42 30 24 4
DURABLE 61 31 6 1
MATERIAL OF 78 17 5 0
THE SHIRT
COMFORTABLE 80 16 4 0
ODORLESS 58 24 1 8

AVERAGE RATING OF THE BRAND ON ATTRIBUTE

NIKE ADIDAS PUMA REEBOK UNDER JORDAN EVERLAST FILA UMBRO

ARMOR
BRAND NAME 4.3 4.1 2.98 3.31 3.67 3.37 2.59 2.7 1.97
7
QUALITY OF 4.1 3.99 3.15 3.35 3.68 3.16 2.61 2.8 1.92
SHIRT
7
PRICE OF SHIRT 3.8 3.65 2.9 3.19 3.4 3.16 2.75 2.7 2.36
2
STYLISH 3.8 3.85 3.19 3.11 3.57 3.3 2.85 2.8 1.99
DESIGN
3 4
PLAIN DESIGN 3.9 3.67 3.11 3.32 3.32 3.14 2.7 2.5 1.97
9 6
DURABLE 4.1 3.98 3.17 3.34 3.73 3.31 3.03 2.8 2.01
6 5
MATERIAL OF 4.0 4.05 3.01 3.12 3.77 3.13 2.81 2.8 2.42
THE SHIRT
8 5
COMFORTABLE 4.0 4.03 3.1 3.26 3.77 3.3 2.72 2.7 2.26
2 8
ODORLESS 3.9 3.65 3.16 3.23 3.46 3.41 2.81 2.7 1.08
9

IV. SWOT ANALYSIS

● STRENGTH
Fresh-O has the competitive advantage against different competitors because it
has a unique characteristic featured in it. Fresh-O provides the convenience of being
odorless. Consequently, our consumers would not have to worry about being smelly after
their after exhaustive exercises and workouts. Furthermore, the product is just as
affordable as the other sportswear.
● WEAKNESSES

11
 One of the weaknesses of Fresh-O is that it is not “yet” provided with stylish
designs, although it is offered with different colors. Also, the company is considered a
new entrant in the market which may add to the disadvantages in the first few years of
operations since the market might not believe on the product’s attributes until they are
confirmed by other consumers. Furthermore, the company must produce high number of
units to compensate the high production costs.
● OPPORTUNITIES
One of the company’s opportunities is that it may sell the product to the different
parts of the Philippines. Also, the company can promote and sponsor a sports event like
“Fun Run” so that people would be aware of the product. Lastly, the product may possibly
sell during hot seasons because of its unique attribute.
● THREATS
The company’s main threat is the presence of the different powerful competitors
such as Nike, Adidas and Under Armor who are already well known and thus, have a
stable position in the market. Also, the other companies may possibly copy the products
characteristics and innovate it successfully because of their strong brand image.

V. OBJECTIVES AND ISSUES

The objectives and issues of the company are categorized into financial objectives
and business marketing objectives.
Financial Objectives
1. The first financial objective of the company is to create a P4,500,000 of sales
revenue selling 3000 units of products at P1,500 by the year 2019. The data is
calculated as: 3000 units x P1500
2. In relation to the first objective, another financial objective of the company is to
create a profit of P444,570 for the year 2019.

Business Marketing Objectives

1. One of the business’ marketing objective is to enhance better customer
relationship by achieving 90% or above of excellent customer satisfaction rating
each month by delivering our customers their desired comfort and quality of the
product.
2. Another objective of the firm is to increase the brand image by 95% among AB
social class groups through different media advertisements and marketing
strategies.
3. Lastly, the company’s marketing objective is to build good public reputation by
joining in the different environmental campaigns, providing active social media
presence, and creating a good corporate culture within our business.

VI. MARKETING STRATEGIES

12
STP APPROACH
Product
The product that we have chosen is an odorless shirt used specifically for sports. We
have thought of this product since people are prone to having smelly shirts which are
caused by bacteria from sweat. All of us sweat when we exercise and there are times you
do not have enough time to take a shower. Our product will erase the foul smell thus
making our product unique and the only odorless shirt.
It belongs to the clothing industry (specifically sportswear) since our product is a t-
shirt. Since our product is in the clothing industry, our competitors are companies that sell
t-shirts. Thus all companies which sell t-shirts are direct competitors of our product.
Examples of such companies are Nike, Puma and Adidas. We have no indirect
competitors since there are no substitutes for clothes.

Segmentation
The market of the apparel industry is too broad and diverse to start selling a new
product. There are already a lot of brands that the market is already loyal when it comes
to buying clothes. We decided to choose the Philippines as our main market. The
Philippines is an archipelago and we will have a difficulty in providing customer
satisfaction if we plan to use the whole Philippines as our market. We choose Metro
Manila as our market since we could see that people of Metro Manila will benefit our
product the most.
Metro Manila is one of the most populated place in the Philippines. We decided to
focus on males that are in generation Y and Z that belongs to class C. Our product would
be useful and beneficial to male people who have an active lifestyle. We would like to
focus on males that usually commute or who exercises daily or have a physically active
lifestyle.

Target
Our target market is the male population of Metro Manila. We decided to make the
male population of Metro Manila as our target market because they always perspire. The
range of our target market’s age is from 18 – 39 years old. We chose males because they

13
perspire more compared to women. This product is very useful because it will give the
consumers a hassle-free product in the sense that the consumers do not need to worry
of being smelly after working out and commuting on a hot day. They don’t need to worry
in doing the activities which are mentioned.
We first used Local Marketing to catch the attention of the people in Metro Manila.
We used local marketing because we wanted to focus on a specific area where we know
that our product is going to be a big help for the target markets. We decided to use social
media as one of our marketing strategy. This is because a lot of people are using social
media such as Facebook, Twitter, Instagram etc. So, this is a good way to capture our
target market’s attention. We then used Mass Marketing strategy to capture the attention
of other people from different parts of the Philippines. Also, we will advertise our product
via television to market the people who isn’t using social media.
As of now, our target market is the male population in Metro Manila from ages 18
– 39. The total population of male Filipinos in Metro Manila is 1.652 million (PSA, 2016).
This product is going to be a good fit for the target market since it is impossible for people
not to get perspired daily. We assure our target market that our product will be beneficial
for them.

Positioning
Fresh-O Shirt is an odorless shirt. Our product is not just any usual shirt because it
gets rid of foul smell with just the same amount of comfort as if wearing just a normal
shirt. Also, the texture of the shirt is not compromised by the material used to make it
odorless, thus, it is not itchy when you wear it. Our value proposition is “more for same”.
We wanted to offer the products at the same price with our competitors yet with more
benefits than an odorless shirt. Thus, our “Fresh-O Shirt” is an odorless shirt that would
benefit the Class A, and B male residents in Metro Manila. We wanted to sell our product
at a reasonable price so it would complement the lifestyle of our potential consumers.

Positioning Map

14
 As seen in the positioning map above, competitors including Nike, Under Armour, Adidas,
Jordan, and Reebok are competing in the “High quality – Good comfort” area. The remaining 4
competitors namely Fila, Umbro, Puma, and Everlast are competing in the “Low quality – Bad
comfort” area. The top 3 leading firms in the industry are Nike, Under Armour, and Adidas as
shown in the map. With this information Fresh-O is perceived to be placed in the “Mid quality –
Mid comfort” zone in order to fill the gap of the industry.
4Ps of MARKETING
A. Product
The product is a shirt that is made of Merino wool which is excellent at regulating
body temperature. Merino wool provides warmth without overheating and it is one of the
softest wool available. Merino wool contains lanolin that has antibacterial properties
resulting in reduced of body odor. This wool makes the shirt odorless and can mostly
benefit for athletic individuals.

BRAND LOGO:

15
Product Support Service
Customer service:
Product could be returned within 7 days if there is any damage or if the size is wrong.

B. Promotion
The group will promote the product by the use of online advertisements and at the
same time online social media such as instagram, facebook, twitter, and others. We think
it is the most effective promotional strategy especially in our generation where internet is
easily accessed by any individual. For the following years, we will try to advertise our
product through television commercials and at the same we will try to sponsor outreach
programs and outdoor activities.

C. Price
Cost of producing 1 Fresh - O Shirt: Php 705.30
Price of selling 1 Fresh - O Shirt: Php 1,500

D. Place
UPSTREAM:
WZ INTERNATIONAL SRL or BETA TEXTILES CORP., LIMITED

DOWNSTREAM:
1st - 2nd year: Online (Instagram, Facebook, etc.)
3rd year: SM Department Stores (within Metro Manila and other regions)

16
1st - 2nd Year

3rd Year

VII. ACTION PROGRAM

17
 On the Year 2016, an allotment of one month for the consultation of the project to
see how can the product be welcome to the market. If, the consultation goes well there
will be an estimation of expenses to see how much the company needs to supply the
needed capital to start the business. Since, the owners are planning to rent for their
manufacturing plant only half a month given in fixing the facilities needed in production
the Odor-Less Shirt. Also, half a month is allotted for recruiting employees so the business
can start operating and producing Odor-Less Shirt. However, the company set a whole
month in looking and contacting a supplier for their product such as the machine, cloth,
and other needed materials to produce an Odorless Shirt. After searching and contacting
of suppliers, the business will start operating until the end of the year.
On the start of 2017, the business will continue on producing Odor-Less Shirt,
however on the second month of the year the business will re-search another supplier in
which they can lessen their cost. The start of maintenance of the supplies, machines and
facilities will consume half of the second month. The owners allotted two months to invest
into new product line in which they will expand their product to socks, pants, jackets,
underwear and other clothes. In investing part, there will be a research in target market,
survey for consumers, and other needed survey in which the business will know in what
clothes they will invest. After investing, the business will plan and do a product launch for
its customers and investors. When the business finishes in its product launching the
business will now start operating and producing Odor-Less Clothes product.

VIII. CONTROL
Based in our financial statement that we have made, we incurred a loss. On the
second and third year, we have incurred a profit. In order for us to have profit, we must
be strict with our operations. We must check how the workers produce the t-shirts. We
must check that the employees are doing their job. We must also befriend our suppliers.
Without them, we would have no raw materials thus, we can not producing any product
at all.

18
 BIBLIOGRAPHY
2015 Pinoy Freelancer's Salary Guide. (n.d.). Retrieved November 28, 2016, from
http://www.freelancing.ph/2015-pinoy-freelancers-salary-guide/

Download FedEx Rates. (n.d.). Retrieved December 04, 2016, from

http://www.fedex.com/ph/rates/

For Rent Warehouse in Santa Cruz District, Manila (75174)- Persquare. (n.d.).
Retrieved December 04, 2016, from http://www.persquare.com.ph/for-rent/warehouse-
ncr-metro-manila-manila/for-rent-bodega-warehouse-storage-space-sta-cruz-tondo-
sampaloc-quiapo-binondo-divisoria-manila_75174

Garment Laser Cutting Machine Price Bcj2513 - Buy Garment Laser Cutting Machine
Price,Hot Sale Metal Laser Cutting Machine,Laser Cutting Machine 260w Product on
Alibaba.com. (n.d.). Retrieved December 04, 2016, from
https://www.alibaba.com/product-detail/garment-laser-cutting-machine-price-
BCJ2513_60528759798.html

Global Industry Analysis Inc. (n.d.). Retrieved November 23, 2016 from
http://www.strategyr.com/pressMCP-1006.asp

Industrial Steam Laundry Garment Clothes Ironing Pressing ... (n.d.). Retrieved
December 4, 2016, from

19
https://www.bing.com/cr?IG=6A57ABC2879846EFB42AC34CBF40EA19&CID=374738
36ABB9660223F431D2AA88679D&rd=1&h=K2TvrZpR8ydZP3ac__kOQ2-
ireuLvNRgluhlPaQiP8Q&v=1&r=https://www.alibaba.com/product-detail/Industrial-
Steam-Laundry-Garment-Clothes-Ironing_60555707017.html&p=DevEx,5088.1

Philippine Statistics Authority. (n.d.). Retrieved September 18, 2016, from

https://psa.gov.ph/content/age-and-sex-structure-philippine-population-facts-2010-
census

Shipping from china to philippines. (n.d.). Retrieved December 04, 2016, from
https://www.alibaba.com/showroom/shipping-from-china-to-philippines.html

Top 10 Best Clothing Brands. (n.d.). Retrieved September 14, 2016, from
http://www.thetoptens.com/best-clothing-brands/
View Listing Details. (n.d.). Retrieved December 04, 2016, from
http://www.carfinderph.com/auto-services/lipat-bahay-trucking-services/affordable-van-
rental.-l300-fb-van-for-rent-15154.html

Weekly Price Reports - Wool.com - Australian Wool Innovation. (n.d.). Retrieved

November 28, 2016, from https://www.wool.com/market-intelligence/weekly-price-
reports/

20