Executive Summary
Smiley Choco balls has established a strong standing business that aims
to provide its customers high quality and delicious treats. We aim to provide
food that is sure to be loved by every customer may it be a child, teen or adult.
Our business name was derived from the word “Smile” which we give to our
dear customers when they eat our product. We aim to create satisfaction and
good experience for our valued customers. It is made to satisfy consumers to
its finest. It is also competitively adapting through global changes to stay as one
of the sellers in the area.
Choco balls promise to give a satisfying taste to every consumer.
Apparently, Choco balls seems left behind thought it is still considered as the
top selling product in the area. Because of this, we marketers became more
interested in making a marketing plan.
Generally, we aim to transform Choco balls into more brand without
moving away from its identity.
The business is owned by Cyrillic Pabi, Hannah Rose Duble, and
Waimarie Montilla as Partnership. The proponents will continue to operate the
business especially if it is a click in the market. The price of the said product is
only 2php, means everyone in the target market could buy. They also sell a
pack of Choco balls that costs 30 php. In addition, the product is sold by packs
and its packaging is fit into any occasions. Thus, the customers can use it as a
gift to their loved ones.
The main goal of the business is to satisfy the cravings of their dear
customers and to slake their needs. In conclusion, all the suggestions that came
from the customers will be gathered and make it as the primary motivation of
the business to be more booming in the future.
1
II. Introduction
The first time the world was introduced to Swedish chocolate balls
was in 1943 during World War II. A recipe was published in “Svenska
Dagbladet” and the same year a similar recipe on Danish “havregrynskugler”
was published in the Danish book “Ingenuity in times of crisis”. The recipes are
simple, using leftovers to create chocolate balls. (Nielsen S., 2018).
Choco balls was launched in November 2018. It was a successful
campaign. It quickly became the best-selling product on the campus, and it was
the first brand to introduce in the campus. Choco balls is one of the best-selling
products on the campus in just 5 days and many students buying the products
every day.
III. Background of the Study
Smiley Choco balls is a business located inside Davao City National
High School, F. Torres St., Davao City, Philippines. Choco balls are one of the
products that offers a delicious product in the area. Its product has a very nice
design to attract other customers and always making the operation area neat
and clean in order to have a proper hygiene.
Dessert is a usually sweet course or dish (as of pastry or ice cream)
usually served at the end of a meal
Choco balls contain main ingredients of Hiro biscuits, Condensed
milk and Rice cereals. For the toppings and surprise on the inside we have
marshmallows and sprinkles.
First, are the Hiro biscuits which is rich in vitamin A, vitamin c, iron
and calcium.
Second, is the condensed milk containing 36 mg of potassium, 5 mg
of magnesium, 56 IU vitamin A and trace amounts of other vitamins and
minerals.
Third, is the rice cereals it contains of sodium, potassium, protein,
carbohydrates, vitamins and minerals.
2
Moreover, we all know that the marshmallows and sprinkles are just an
ordinary topping that gives life and more color to our dish. However, they also
provide benefits to our body and this is the following it strengthen your teeth
and bones and it is high in fiber.
IV. Current Marketing Situation
A. Product Situation
The smiley Choco balls has breakthroughs in many aspects to satisfy many
consumers in different aspects over the past year, different flavors of Smiley
Choco balls were created to satisfy the customer needs. The Smiley Choco
balls are one of the need of students especially when it’s hard for them to study
and when they’re stress. Hypothetically this is the best way to eat Choco balls.
In conclusion, the Smiley Choco ball is a new formed business and aiming
to be successful for the next following years.
B. Market Situation
During the middle ages the people began to enjoy more sweets. Even if the
desserts where generally reserved for the wealthy at celebrations, as sugar
was still considered quite expensive back then. In addition, desserts have
increased in popularity over the years.
3
Smiley Choco ball are known at the Davao City National High School and
we had this kind of agreement that if our product will boom, we are going to
continue this in the future.
Smiley Choco ball primary target market (PTM) are budget conscious
students aging 14-19 years old. And this Choco ball is affordable, our goal is to
satisfied our dear customers.
C. Competitive Situation
The Smiley Choco balls is new in the food industry it was operated during
the simulation of the young entrepreneurs. The business was well managed
and doing great. Even if some of the customers complain that the product
is similar to the well-known munchkins. However, when they tried it they’d
love it. This concludes that the said product is effective and have a chance
to have a specific place in the food industry.
D. Distribution Situation
Distribution Channels are one of the key elements in marketing to help
the business expand their reach and to grow revenue. The distribution of
product is by the self-distribution. The young entrepreneurs sell the products
locally and distribute in by themselves. By doing this kind of method the
cost of self-distribution may be lower than the cost of marking down the
wholesale price of the product. Which means it more gain more profit and
customers. The percent of company sales is monitored as well as the Smiley
Choco balls volume. The growth potential of the said business can grow the
market share and increase the sales every year. Since, we are not the only
who sell desserts in the market area. Still, the entrepreneurs do their part to
maintain the sales.
4
E. Macro-environmental Situation
The macro environment affects every business and involves influences
which affect the entire economy of the business. Companies facing economic
downfall and potential bankruptcy are hurt more significantly than business in
booming industries. The macro environment affects every business and
involves influences which affect the entire economy of the business.
Companies facing economic downfall and potential bankruptcy are hurt more
significantly than business in booming industries. There are six forces in the
environment of a business. The Socio-Cultural forces link to factors that affect
society’s basic values, preferences and behavior. This link to the Smiley Choco
balls business because of the factors is formed by the fact that people are part
of the society and their decisions and choices have a great impact into the
market.
5
V. Marketing Objectives
A. Market Share
Smiley Choco ball, is new in the market so it is expected to have a small
profit in the beginning, A starting business have not that kind of big profit since
it is new to the market. Still, the average net profit margin depends on a lot of
different factors. Consider the type of business you run, the number of
employees you have, and business location. Operating systems, use of
business assets, and inventory management also impact profit margin. (Patriot,
2017).
B. Profitability
Smiley Choco ball, wants to have a name in the business industry. The
businesses’ aim is to cater the customers’ needs and wants and at the same
time fulfilling their cravings. They also want to increase their target market for
high profit. Improvements for the packaging, lab testing for the product to be
approved by the FDA. By the end of the first period of operation, total profit of
100,000 is targeted to be reached with 50,000profit raises.
VI A. Product Strategies
Smiley Choco balls is well known as affordable and gives happiness and
satisfaction to the cravings of its customers. It made itself different from others
because it has unique taste and simple but classy packaging.
In addition, the Smile Choco balls is cheaper than others because it is
priced per unit, and are considered "high end" pastries. It is only 2php. And its
target market are the sweet lovers, high school students as well as stress
teachers. The value that the product provide to its customers is to help the
customer to feel satisfied and enjoy the strange but delicious taste of the said
product. Our target market can acquire our product by easily go to our booth
and also, us the owners of this product. Will roam around each room so that all
6
of our customers will be no longer bothered. We sell our product through a
retail channel.
B. Target Market Strategies
One of the factors that made smiley Choco balls unique from the other is
because of its unique taste and qualities. Its target market is the budget
conscious students who want to meet and satisfy their cravings. Today we live
in the world of niche we are no longer prisoners of radio schedules. We can
listen to it anytime and anywhere. similar, to our target markets they have their
freedom to choose. And we the young entrepreneurs, highly nominate our
product to solve their cravings. Therefore, we can offer to our dear young
student customers the satisfaction that they want. And we can also offer the
convenient transaction when they buy on us.
Meanwhile, the smiley Choco ball uniquely placed to solve the hankering of our
dear customers.
C. Positioning strategies
Smiley Choco ball positions itself as the only Choco ball that gives
happiness, satisfaction and mood booster to their customers. The unique taste
of the product and the surprise on its inside is one of the factors that contributes
to its product characteristics.
In addition, the Quality approach and positioning by price quality of the product
is basically because of perception as most of us perceive that if a product is
expensive will be a quality product whereas product that is cheap is lower in
quality. If we look at this Price – quality approach it is important and is largely
used in product positioning. (Basin H., 2018) This positioning will continue to
support the new and improved product of smiley Choco balls in the future. We
are also going to reinforce its tagline showing to valued consumers what the
new and improved smiley Choco balls can do and offer "satisfied by every bite"
7
D. Pricing Strategies
Value-based pricing is a price-setting strategy where prices are set primarily
on a consumers' perceived value of the product or service. (Kenton W., 2018)
This mean that even if the product is not expensive still, it delivers best value
to the customers. The price of the Smiley Choco balls is only 2 php. If the
owners would like to add more details on the product in the future. This means
that the base price will also increase depending on the future situations.
Furthermore, the product is providing a package of Choco balls that can be use
as a gift to the loved ones of their customers. And each pack costs of Php 30.
E. Distribution Strategies
The traditional distribution approach of goods is also Producer-Wholesaler-
Retailer distribution model or Two-level Channel and a direct selling (room-by-
room). This covers broad distributing channels and reaches the whole outlets
of the school like canteens, classrooms and teachers’ faculties which help the
brand to become popular. There is Smiley Choco ball everywhere so it will not
be time consuming and tiring for the customers to find and availed when the
need comes. The new medium is also the Online Sales whereas the other can
also buy the said product.
F. Promotion Strategies
The consumers nowadays are constantly bombarded with promotional
efforts from many different channels. In many cases, a multi - channel
promotional effort is necessary to keep current in the minds of the consumers.
Using the traditional Advertising through mass media advertising is a great way
to grab the attention of the customers. And a great idea to make them but the
Smiley Choco ball. By showing tot me the strengths of the product and its
benefits. Furthermore, by dividing consumers into segments, targeting and
positioning them will be a great method to associate the product to the
customers. Having a buy 5 +1 campaign of the Smiley Choco ball product will
also help. In addition, the owners used a standard size food poster. In order for
the target market know their product.
8
Figure 1: Smiley Choco Balls Poster
9
G. Packaging Strategies
Successful packaging sells. Product packaging in an integral
component of the shopping experience. The design of the packaging
determines if the product will make it into the shopping cart or not. In the Smiley
Choco ball product, the packaging color and materials that is use is not that
expensive but its quality is good. In every package that was made the aim of
the product is to satisfy the needs and wants of their customers.
When buying a pack of Choco balls, it is pack by wrapper which have
a color of Red and Yellow which are happy colors. It is sealed by decent ribbon
on the top of it to add more details. The product has a logo, which represent
how classy and delicious the product is. Its background is a pink pastel color
signifies its target market which is the millennial. Furthermore, because of the
packaging that the Smiley Choco ball had. The customers can use it as a gift
to their love ones and this can give high profits to the business. Classy but not
expensive is the main objective of the business.
Figure 2: Logo & Packaging
10
VII. Opportunity and Issue-Analysis
Figure 3: Porters Analysis
Threats of
New Entrants:
●SME’s
Bargaining Power of SMILEY Bargaining Power of
Suppliers:
CHOCO Buyers:
●Victoria Plaza ●Junior High School
BALL
●Gaisano Mall ●Senior High School
●Felcris ●Teachers
●Sari-Sari Store ●Students Teachers
Threat of Substitute
Product:
●Lollipops
●Brownies
●Crinkles
Forces Ratings
MA-3
●Threat of New Entrants
HA-5
●Bargaining Power of Buyer
●Threat of substitute Products HA-5
●Bargaining Power of Supplies HA-5
Discussion: The Threat of New Entrant is Moderate Attractive, the Bargaining Power of Buyer
is Highly Attractive, Threat of substitute Product & Bargaining Power of Supplies are also Highly
Attractive.
11
Table 1: SWOT Analysis
Strength • Smiley Choco ball is affordable
• Its aim is to satisfy the cravings of the
customers
• Strong Sales
• Unique taste and have a nice packaging
• I can be a gift to the others
Weaknesses • Lack of promotion because it is still new
• Munchkins have a lot of similarity in Choco balls
• The process of making is time consuming
• The product making is slow base on customer’s
experience
Opportunities • Can be a stress reliever
• Can be a good product inside a restaurant
• Easy advertising of products, platforms in any
social media sites can be used
• It is a good dessert
Threats • Competitive Competitors
• Complaints of Customers
• Low Purchasing Power of Customers
• Innovations of Competitors
The strength of “Smiley Choco ball” are its unique taste and affordable price.
Also, the business has this kind of surprise inside of the product. With that, the
business surely has a strong sale.
The weaknesses are it has a many similarity with the ordinary
munchkins.
Issues
-Customers complain about the slow service
- The size of the product
- The idea of it looks like a typical munchkin
12
Table 2: TOWS Matrix Analysis
STRENGTH WEAKNESSES
• Smiley Choco • Lack of promotion
ball is affordable because it is still new
• Its aim is to • Munchkins have a lot
satisfy the of similarity in Choco
cravings of the balls
customers • The process of making
Smiley • Strong Sales is time consuming
• Unique taste and • The product making is
Choco Balls
have a nice slow base on
packaging it can customer’s experience
be a gift to the
others
OPPORTUNITIES (S-O) (W-O)
• Can be a stress (S1-O1)- Make the (W2- O2)- Put some more
reliever product available for features/ add on the product
• Can be a good all
product inside a
restaurant (S2-O2)- Advertise the
• Easy advertising product into the
of products, different pastry’s
platforms in any restaurant or stores
social media sites (S3-O3)- Aim for more
can be used high sales and make
• It is a good more product
dessert (S4-O4)- Take
advantage of its unique
taste to have high
profit
THREATS (S-T) (W-T)
• Competitive (S1-T1)- Since the (W1-T1)- Set a standard on
Competitors product is affordable the quality of the product and
• Complaints of advertise it and put keep obtain it in every
Customers some special features operation
• Low Purchasing on it to become more (W2-T2)- Add twist on the
Power of Unique from the others product to make it more
Customers (S4-T4)- Take unique
• Innovations of advantage on its (W4-T4)- Make the product
Competitors special packaging to more unique
have an edge to its
competitors
13
Table 3: Specific Strategies
Matching Results Specific Strategies Budget
(S1-O1) & (S3-O3)- Make Increase the production of Php. 1,500.00
the product available for
all the product to be available
for everyone.
(S2-O2) & (S4-O4) – Go to specific stores or Php. 500.00
Advertise the product into
the different pastry’s pastries restaurants to
restaurant or stores introduce the product.
(S1-T1) & (W2- O2)- Since Add more unique add- ons Php. 250.00
the product is affordable
advertise it and put some on the details of the product
special features on it to like put some new flavors
become more
Unique from the others and filling on it.
(S4-T4)- Take advantage Maintain the unique Php. 100.00
on its special packaging
to have an edge to its packaging. To enhance add
competitors more color on the wrappers.
(W2-T2) & (W4-T4)- Add Make an elegant but not Php. 300.00
twist on the product to
make it more unique expensive box for the
packaging. And maintain its
delicious taste on it.
14
Table 4: Action Plan
What When Where Who How Much
Increase the August 2019 The store Smiley Choco Php. 1,500.00
production of itself balls
the product to
be available for
everyone.
Go to specific September 2020 Random Yummy Php. 500.00
stores or Restaurants Restaurants
pastries around the Pastries Stores
restaurants to Davao City
introduce the area
product.
Add more November 2019 The store Smiley Choco Php. 250.00
unique add- itself balls
ons on the
details of the
product like
put some new
flavors and
filling on it.
Maintain the December 2019 The store Smiley Choco Php. 100.00
unique itself balls
packaging. To
enhance add
more color on
the wrappers.
Make an October 2019 The store Smiley Choco Php. 300.00
elegant but not itself balls
expensive box
for the
packaging.
And maintain
its delicious
taste on it.
15
Contingency Plan
The potential key risks of the business is the price hike of the supplies
that they're using since the business sell its product into the very cheapest
price. And if the supplies will have a price hike. The business will had a hard
time since the customers are already settle with the cheap price. The loyalty
of the customers will enter in this scenario. And the ways/strategies of the
business to handle this problem.
16
VIII. Appendices
The survey questionnaire that was given by the young entrepreneurs to
the target market around the Nograles Gymnasium. Are around 100
respondents, it shows the 4P’s of the product. The Place, Price, Promotion
Strategy and the Profile. Mostly, the possible market would buy the product
ages from 14-18.
Figure 3: Survey Questionnaire
7
6
6
5
4
3
2
2
1
1 1
0
10-12 years old 12-14 yeard old 14-18 years old 19-20 years old
Satisfaction
Figure 4: Satisfaction of Flavors
5
4.5 FLAVORS
4
3.5
3
2.5
2
1.5
1
0.5
0
Chocolate Strawberry Cookies n Cream
Number of Respondents
The chart shows the tally for the question of what flavor they like and does it
satisfy them. And the result is the target market wants the original flavor of the
product.
Reference:
17
Bhasan, H.,(2018) Positioning Strategy Retrieved from
https://www.marketing91.com/positioning-strategies/
Investopedia., (n.d.) Value-Based Pricing Retrieved from
https://www.investopedia.com/terms/v/valuebasedpricing.asp
Marketing D., (n.d.) Six steps to defining your target market Retrieved from
https://www.marketingdonut.co.uk/marketing-strategy/your-target-
market/six-steps-to-defining-your-target-market
Kappel,M. (2017) How to Determine Profit Margin for Your Small Busines
Retrieved from
https://www.patriotsoftware.com/accounting/training/blog/how-do-you-
determine-a-profit-margin/
Universal C., (n.d.) Marketing Strategies: Promotion, Advertising, and Public
Relations Retrieved from
https://www.universalclass.com/articles/business/marketing-strategies-
promotion-advertising-and-public-relations.htm
Marketing D., (n.d.) Six steps to defining your target market Retrieved from
https://www.marketingdonut.co.uk/marketing-strategy/your-target-
market/six-steps-to-defining-your-target-market
Nielsen S., (2018) Chokladbollens Dag – a story on true passion for Swedish
chocolate balls Retrieved from https://scandasia.com/chokladbollens-
dag-a-story-on-true-passion-for-swedish-chocolate-balls/
Wile E., (n.d.) Sweetened Condensed Milk Nutrition Information Retrieved from
https://www.livestrong.com/article/267787-sweetened-condensed-milk-
nutrition-information/7
18
