Marketing Plan

Derick Tungpalan
Rowena Mae Pambid
Desiree Lorenzo
Marc Ascen Dumaoal
OJ Nieto

Executive Summary Now a day, there lot of things we do daily, the reason why people get stress and lead to low productivity. Everyone feels stressed at times. They are stress when they work continuously without having a break. Just to rid of it, the Klismos Company offers TheraPro Relaxation Chair which is very essential to professional and athletes. They TheraPro lessen the stress of people they got from their work. It is convenient for a person to have it because they no longer go to massage center. They can enjoy the TheraPro Relaxation Chair inside of their house.
The TheraPro relaxation chair is robotic massage chair that is able to relieve pain and stress from the body. Klismos decided to engage to market a product that guarantees a satisfactory performance of TheraPro relaxation chair. The TheraPro relaxation chair can accommodate up to 285 pounds user weight, and 5” to 6.4” approximately user height and approximately 120 to 165 degrees from floor level continuos motion. The TheraPro relaxation chair have 3 levels of kneading speed, 3 levels of tapping speed, 3 levels of roller width, one full cycle of up/down speed and back stroke range. The accessories will be power cord, T-shaped wrench, thin and thick buffer pad, child safety lock keys, device holder and remote control. The TheraPro relaxation chair covers more area, 1200 square inches. And has 16 pre-programmed massage sessions available. Klismos will target working professionals and athletes who experience physical, mental and emotional. Klismos will both aim for male and female professional whose income ranges from Php 80 000.00 to 120 000.00 and athletes who want to spare from visiting their massage therapist. And believe they all have the capacity to buy the product which very essential to their needs when it comes to relaxation and wellness.
. The Klismos Company’s competitive advantage among the competitor is that it is a full body massage. It has head dress which helps to relax your head and mind for something that is bothering you such us the problem in work or anything. From the head going down to the toe, the TheraPro has a foot massager which helps to reduce the pain, which is essential for athlete.

Purpose and Mission The Klismos Company will delivers the opportunity of experiencing the next level of relaxation at home. They will present new furniture for house and office that can improve physical, mental and emotional well being. They will pursue that relaxation chair will be presented most especially at homes like other appliances. The company will aim to deliver healthy lifestyle for Filipinos. They will promote the importance of having a good health despite the fact of hectic and stressful works. This is to remind and encourage people to be more aware about relaxing and enjoying life more. It will highlight the essential significance of shaping out little time everyday to rest, refresh and restore the body.
The company will offer relaxation chair having a massage capabilities, style and quality. It is a stylish and luxurious relaxation chair for living room. The relaxation chair is designed to those who seek to alleviate pain and to unwind from their busy schedules that can be time saving. The relaxation chair provides sitting the sensation of experiencing like professional human massage therapists. The relaxation chair is intended to improve keys for well and healthy mind and living which can achieve at any time inside at home.

Situational Analysis
Product
According to research, Philippines have one of the most industrious human resources. They work more than what they are capable of and earn more than they can earn of every day. So, we Filipinos experience tremendous physical, mental, and emotional aches and pains at the end of the day. Thus, relaxation is needed to restore, refresh and revitalize our body for the next day and work. Historically, the earliest form of relaxation chair for Filipinos is the rocking chair. The rocking chair is a chair that is set on pair curved pieces of wood so that somebody sitting in it can be rocked backward and forward. Through the aid of massive research and technological advances, traditional relaxation chair dynamically changes overtime. Today, relaxation chair becomes more sophisticated and performed more advance features.
Through, the aid of technology, people now see that from the traditional relaxation chair for rest and relaxation, today it is used to gain relief, to aid health conditions and to constantly solution for overall wellness.
TheraPro Relaxation Chair incorporates newest advances in the field of robotic massage technology and human body care technology or acupuncture point technology, designed as a cutting edge solution to relieve pain and stress present in everyday lives. TheraPro relaxation chair is a revolutionary relaxation chair that becomes a way for both massage capabilities and style. It executes the techniques used by professionals massage and chiropractic for back and spinal care.
The main ingredient for product success is the appropriateness of the Therapro Relaxation Chair to the targeted segments. TheraPro Relaxation Chair delivers: * Cost saving. Consumer could save Php 500- 1000 for massage and relaxation everyday and no need to drive across to visit the spa or massage center and massage therapist. No need for gas and transportation. * Convenience. Individuals can have a massage anytime they want and deliver comfort at home. * Therapeutic. The massage capabilities and style perform by TheraPro Relaxation Chair is extended beyond relaxation wherein it is use to relief pain, good blood circulation, energizer, flexibility, and preventive maintenance of the body * Personal. Adjustable and customized body fitting which perform to have a better massage positions and comfortable sit to relax.
The Therapro Relaxation Chair will not simply create brand awareness and persuade potential buyers but to get them to prefer his brand. But, a fact that consumers are very conscious in quality and cost when buying luxurious and technical sophisticated products. So, Therapro Relaxation Chair provide sales promotional program such as 3 year warranty, after sales service support and free shipping wherein customers may consider. Because competition in the furniture industry for relaxation chair begins to set, therefore, Therapro Relaxation Chair offers additional service support that most of the competitors are not into. This is to support and outshine the relaxation chair. TheraPro Relaxation Chair can accommodate or hold up to 285 pounds. The user whose weight is greater than 285 pounds or 129.276 kilograms may put undue stress which could cause damage or lead premature wear and tear on the relaxation chair mechanism. A pregnant woman should not use Therapro Relaxation Chair and anyone who has back problems or surgery should consult their doctor first before using the relaxation chair.
The TheraPro Relaxation Chair is an instrument that can be damaged if dropped and movable for at least two people. The size for the TheraPro Relaxation Chair is 86.7” x 40.6” x 33.9” (Length x Width x Height). The components of the TheraPro packaging will be (1) box lid and base, (1) box shell, (5) foam panels, (2) rectangular cardboard spacer, (4) corner spacer, foam backrest support, (1) remote control box, (1) large plastic bubble wrap fro backrest, (2) medium size bubble wrap for foot and calf massager, and (1) small size for remote control. So, the packaging is design to be durable enough to support the product. The relaxation chair is shipped with the reclining seat back in its fully reclined position and with the armrests and leg rest removed. The TheraPro relaxation chair comes with user manual that provide important safety precautions and instructions before use and after use. The label is simply attached or elaborated in a design graphic which is placed in the package. Its company logo and product name will be displayed on the actual product and product packaging. In addition, the packaging will carry the product name, product description, and other necessary information.

Sales Agent
(Php 22,000)

* Product manager will coordinate to different departments for product support. It will motivate each member and conduct orientation for activities to be done and assign their functional work. It will create marketing effort or programs which will be used at each target segments. It will carefully study and evaluate all presented ideas, reports, and forecasts by each member. It will monitor the progress of each marketing programs or efforts and works of each member. And create monthly report of product progress. * Market researcher will study the trends and report that happen it the consumer market special the target segments. He/she will evaluate monthly progress of programs used and suggest solutions that TheraPro may face during and after its launch. * Sales manager will train and motivate TheraPro sales agents, arrange sales promotional activities and policies create weekly sales report, and handle regular sales meetings. * Sales agent will directly answer customer questions if customer may have during the free demonstration, contact the warehouse coordinator or distribution manager for delivery and prepare the necessary information of customers such as name, address and contact information that is needed by the distribution manager or warehouse coordinator in delivering the TheraPro Relaxation Chair. * Distribution manager will check the warehouse stocks and condition, check and coordinate shipping condition from South Korea, create and provide distribution reports weekly, monthly, quarterly and annually and compile the delivery information given and forwarded by the sales agents for effective delivery purposes. * Communication personnel research and create promotional programs that is prefer by the target segments and as well as to establish the product. Conduct monthly reviews of each program used and provide progress reports. * Financial consultant will prepare the monthly payroll of employees, check the promotional budgets and expenses for other marketing activities.
When Klismos TheraPro relaxation chair is directly purchased, it can be return within 30 days starting from the day of purchase. The purchaser must call Klismos Company first at (002) 632-7887 or http://klismostherapro.com , Monday to Friday from 7am- 5 pm. The customer representative will give Return Merchandise Authorization number which will be placed at the returned Therapro Relaxation Chair container. Note that the RMA is valid for 30 days only.
The Therapro Relaxation Chair must in “like” condition, the original box with all the original packaging, parts and accessories. Any damages to the TheraPro Relaxation Chair result of dropped product or component including remote controls, cracked remote control screens or housing, unwanted odor including cigarette smoke changes resulting from normal wear and tear, relocation from original installed location, misuse, abuse, improper maintenance, electrical disturbances and power surges or modifications by persons other than authorized Klismos technician, acts of nature, damage or malfunction whatsoever caused by an animal or pet and caused by liquids, damage from excessive weight and unnecessary service calls , if there is no found problem upon diagnosis and customers may be charged for standard rate for service calls, shipping costs and parts are not included in the 3 year warranty and service. The Therapro Relaxation Chair must not incur 100 hours of use or more are not accepted. It is possible to retrieve this information through our technical facilitator. The purchaser must be sure to pack everything as what Klismos Company delivery personnel delivered to their door.
Customers shall be responsible for and prepay all shipping charges and shoulder all loss or damage to relaxation chair during return shipping of chair. Once Klismos receive the return Therapro Relaxation Chair and meets all the conditions, Klismos will refund the original credit card used, if the mode of payment is through credit card or return a new replacement of the Therapro Relaxation Chair if the cost for repair exceed the total amount of unit price of selling. The TheraPro is subject to restocking and inspection fee of 5% of original price. And allow 1-3 weeks for the refund to be process And if the customer returns TheraPro Relaxation Chair without an RMA from Klismos or beyond the 30 day period, Klismos retain the right to refuse delivery of the returned Therapro Relaxation Chair. During the 3 year warranty, Klismos technician will repair or replace any defective equipment. We will return the Therapro Relaxation Chair to a properly functioning state. The original purchaser must present proof of purchase for the Therapro Relaxation Chair. The Klismos technician is responsible for repairs on the TheraPro relaxation chair within the 3 year warranty. Klismos will provide on-site service or home services as necessary on regular working days between 8am- 5pm. Klismos will replace parts but if the particular part is not available, Klismos will make reasonable efforts to locate compatible replacement part. And if there is an inability to locate compatible part and replacement value exceeds the original net price paid, Klismos will replace customers Therapro Relaxation Chair with similar look. If the customer will not accept the replacement, the company will no longer responsible for repairs under the 3 year limited warranty. Klismos will shoulder all shipping charges for the return of the product to customers and they will responsible for providing the product in an acceptable physical condition.
And when it comes to Therapro Relaxation Chair maintenance, it requires only occasional cleaning and follows the care and maintenance guidelines. Be sure to disconnect the power cord from the electrical outlet before cleaning. Use vacuum or damp cloth for backrest or armrest to remove dust and use dry cloth only when cleaning the controller or around the power switch. And if the Therapro Relaxation Chair is not in use for longer period of time, the chair must be covered, power cord be coiled and place in safe place herein it is free from dust and moisture. The relaxation chair must not be store near heat or open flame and leave exposed directly to sunlight for long period of time.

PRODUCT SUCCESS In putting our relaxation chair in the market we consider the marketplace need. Knowing and understanding the marketplace need is really important in the success of a company or a product. The marketplace need contributes to the development of a marketable product solution that has a high potential of success. Our product relaxation chair can help reduce person’s stress. The innovative features and benefits of the product can give an advantage for us in success. Some people nowadays are workaholic which gives them stress. One of the benefits of our product is to give relaxation. We also market its benefits. Eventually attracting target markets will be easier. Customers are more preferred in the function or what benefits they can get to the product. The material and design of the product is appealing to them. Relaxation chair is already exist here in the country, many company offer this kind of product. However we may have the same product but we have clear differentiation in the features. We have a good customer service. To make our product to be known, we have promotions that can get more markets. We consider who are our target market and how will we approach them.

PRICING * To increase market shares * To Increase Sales Volume (quantity) * To cover the cost in producing the product * Create interest and excitement about the product Our product, TheraPro Relaxation Chair has all the features that a customer wants. Compare to others, we have all the features but we have a lower price.
In the first year operation, we don’t have discount policy because as we aim to achieve our goal, stated above, the price of the TheraPro Relaxation Chair is reasonable. The price of our offering is worth it. It is worth it because if they buy TheraPro Relaxation Chair, the discount is possibly on the warranty and customer service. But in the later years we will have discounts and we will add new features
DISTRIBUTION
We will adapt direct channel or zero level channel, we will have 2 branches in NCR. The Branches will be in Makati City and Quezon City. There will be a demonstration in every branch. A warehouse will be needed to the availability of our product and the also help us in reducing time, effort and also money in the shipment. We will have warehouse in Mandaluyong City which is a good location because the ways going out and in are accessible in a heavy traffic. The cost will be 1,000,000. In delivering our product, we will use one truck to get the product. Two (2) vans will be use to deliver the product from warehouse to customer’s house, 2 vans will cost Php 70,000 each and the budget for distribution is Php 30,000 in a month: food allowance and for the gas. Every truck will have (3) personnel: driver, technician and his assistant.

“DISTRIBUTION MANAGEMENT STRUCTURE” * Distribution Manager - they will be the one who will make sure that TheraPro Relaxation Chairs are well distributed in every branch where the product will be available. * Warehouse Coordinator – they get the information from the sales agent in what to delivered * Inventory – will monitor the stocks of the products in the warehouse and communicate with dealers in terms of mall stocks * Drivers – they are the one who will deliver the product in branches, and they are also the one who will deliver on line orders. * Technicians – every truck has one technician who will install the chair in the customers’ houses and explain or demonstrate how the product works. And some technicians are also placed in the warehouse for maintenance and product repairs * Utility – maintain the cleanliness of the warehouse and make sure that every product will be properly placed. * Security - liable in securing the whole warehouse as well as the safety of every employees and the product.

| SALARY | Distribution Manager | Php 37,000 | Warehouse Coordinator | Php 20,000 | Inventory | Php 15,000 | Drivers | Php 10,500 | Technicians | Php 20,000 | Utility | Php 9,000 | Security | Php 10,500 |

PROMOTION * To increase the number of professionals who own Therapro Relaxation Chair * To encourage Filipino’s to engage into a healthy living * To create knowledge and brand awareness about Therapro Relaxation Chair. * To get the attention of possible customers * To encourage Therapro Relaxation Chair Trial and usage * To keep the existing customers to stick on our product

We aim to introduce and make our relaxation chair to be known and specially to attract more possible customers. Getting their attention will be easier for us because of advertising. Our advertising is designed to increase sales and build profits gradually. Eventually if we get the attention of possible customers, they may buy our product. We also encourage trial and usage, because we are still in the introductory stage, trial objective can convince customers to buy our product in the market. We promote the good benefits to our customer which may keep customers to stick on our product. Relaxation chair already exists here in the Philippines but the degree of awareness in the Philippine market is minimal. As to increase the awareness and acceptance of our relaxation chair to Filipinos, we will use informative advertising which can help us in achieving our objectives. In Informative advertising will tell the consumer and marketplace about the product, explain how it works, provide pricing and product information, and should build awareness for the product as well as the company. Telling to our customers the benefits that can get to the product we offer compare to others. We have also visual demonstration to inform and educate customers how to operate and use our relaxation chair.

ADVERTISING CYCLE
One-year operation | 1st month | 2nd month | 3rd month | 4th month | 5th month | 6th month | 7th month | 8th month | 9th month | 10th month | 11th month | 12th month | Social Media | | | | | | | | | | | | | Billboards | | | | | | | | | | | | | News papers | | | | | | | | | | | | | TV advertisement | | | | | | | | | | | | |

1. Billboard. To attract more customers who drive along the EDSA, we will put Billboard. As they pass the road, our product will be noticed. It will contain the logo and the positioning statement and features which may give information to them and also persuading them to purchase. In the first two months, we will have our first billboard in the launching TheraPro Relaxation Chair. It will be situated in Makati City that has 50 ft. x 50 ft. which cost Php 700,000 in a month including the tarpaulin printing. We choose to put our very first billboard in that place because it will be easily noticed by people.

2. Newspaper. In the first months we will release newspapers which contain article about the product. In Manila Bulletin, it costs Php 34,000 while in the Philippine Daily Inquirer, Php 40,000. For the second month, we will have the promotional ads. Our newspaper partners are Manila Bulletin and Philippine Daily Inquirer. Customers may view TheraPro Relaxation Chair in the business section. The ¼ of the one page is a good size for an article. It has 5 col x 24 cm. For the Manila Bulletin, it costs Php 44,000 while the Philippine Daily Inquirer is Php 64,000.

3. TV Advertisment. The content of the advertisement will show the product itself and how TheraPro Relaxation Chair can give benefits to customers. We made transaction with MegaHyped Solution Incorporated. They will be the one facilitating the ads. The ads will be aired in primetime 7:00 in the evening, twice a week. The duration of our advertisement is exact 30 seconds. The cost is Php 500,000 in a month.

SALES PROMOTION
We aim for positive sales response to each target segments and in no time it will little permanently gain and acquire a growing market share. We provide and present grounds that customer should always prefer TheraPro Relaxation Chair and to new generate channel support.
The company will invite prospective and potential customers to try the TheraPro Rlaxation Chair without cost. The targets will have hands on interaction with the TheraPro Relaxation Chair. In fact, the free trial session will provide visual evidence how beneficial to have TheraPro Relaxation Chair. The sales agents or persons will introduce its competitive advantage features and benefits and answer questions if consumers may have.
When consumer purchased TheraPro Relaxation Chair, the shipping and setup cost is free. Consumers can save up to PHP 2 000.00. The relaxation chair will be delivered right to customer’s doorstep within 5 days. During the grace period, our company will check all again the components, accessories and features to ensure a perfect condition TheraPro Relaxation Chair upon delivering.
The TheraPro Relaxation Chair is supported with 3 year warranty the shoulders on-site services. TheraPro Relaxation Chair stands for three full year chair, because basically warranty guarantees less than or equal to one year for product service. The customers’ just need to contact and inform Klismos Company and in no time our TheraPro Relaxation Chair technician will travel and knock at customer’s door and check your TheraPro Relaxation Chair conditions.
Before our customers will be place in a real business setting, employee must attend our training and development program for 3-5 days. The training will be divided into to two parts. First, employees will be attending a classroom type of training, wherein the trainer provide lectures, related films and videos and facilitate question and answer portion about TheraPro chair features, benefits and advantage. It also provides role playing that assumes and pictures actual scenario that may happen during employee- customer interaction. And the last parts of the training, Klismos Company will requires trainees to assume and to act that they are dealing with a real customer and the trainer will observe and evaluate each trainees performance.
In a society, people are members of personal social circles. Klismos Company will create buzz through providing free full session of TheraPro Relaxation Chair to selected product reviewers, bloggers, and opinion leaders. They will act as medium of fostering and inputting product information and activate widespread opinion-sharing. The members of social will address their own personal views and opinions to their family, friends and colleagues. To properly describe and illustrate the effectiveness of the program, communication specialist or personnel will provide written report.
According to research, part of breakfast of professionals and business associates that during breakfast is reading broadsheet with a cup of coffee. So, it will enter and create article news which will be published to newspaper especially to business section. The content of the article will be the product features and the essential benefits. It will carefully discuss how, where, and when it will use. The company will also provide websites wherein customers could refer for additional information. The website provides company background, visual graphics and pictures, informational text, testimonials, promotional events or updates and enables commercial transaction and company to user communication. The company will integrate visual identity program wherein public will immediately recognizes the company and product.

SERVICE OFFERED
To make our customers be more familiar to our product we will conduct demonstration how to operate the relaxation chair. Once the customers are able to purchase or are able to gain an access to the product, services like installation will be offered. We also offer free delivery to customers who are not able to pick-up the product. We also offer three (3) year warranty as long as they present the certificate of warranty that is part of the packaging.

TARGET MARKET
The primary consumer target of TheraPro Relaxation Chair is members of middle to upper middle income professionals who seek for relaxation after their busy schedules as well as keeping in touch with their family and be entertained at the same time. They are the persons who earn between 10 and 20 times above the poverty threshold among Filipinos. Their monthly income starts about 80 000 to 120 000. The TheraPro Relaxation Chair aimed at professionals who want therapeutic massage right at their home, and promotes healthy lifestyle and wellness. Our secondary consumer targets are athlete who wants to relieve their body pain after heavy training. In addition, athletes who want to maintain a condition body which they need during training and sports competition.

DISTRIBUTION Our manufacturer is from South Korea. Every quarter, 70 units will be shipped. The cost will be Php 94,000 quarterly. The company will engage the services of Maersk Logistics Filipinas, Inc. For the shipment for TheraPro Relaxation Chair is from South Korea to Manila, Philippines by sea freight. In the Philippines, we will have four (4) vans responsible in delivering the TheraPro Relaxation Chair. After delivering the TheraPro Relaxation Chair, our personnel will install it in customers’ houses.

COMPETITORS As Klismos Company enters the market of relaxing chair, it faces a strong market competition. Massage Chairs such as Okia, Panasonic, La-Z Boy iRest and Isukoshi have established a strong brand image in the Philippines in terms of its quality, brand name, technological advancement, durability and variety of relaxing chairs. These perceived strong competitors offer high-end relaxation chairs but given so, Klismos Company offers a relaxation chair with a rare and unique feature a relaxation chair may contain headdress and also have feet massage, it is full body massage, costing at a reasonable price. The technology of Therapro Relaxation Chair serves as a very strong edge of the product compared to other leading brands while the edge of other competitors over TheraPro is only the variety of chairs types and designs.
Table 1. Product features and price of strong competitors Competitors | Features/ Benefits | Price (Php) | Okia | * Shiatsu Results: Power rollers are used to relax muscle stress, reducing fatigue and rejuvenating the mind and body. * Compression and Percussion: Improves flexibity. mobility and posture of the legs. * Chop Action Tapping and Flapping: Reduces soreness and ache fasten, relax stiff muscles and soften thick layers of fatty deposits, stimulate nerves and stressed muscles. * Easy to follow install video. * 1 year limited warranty - which includes full coverage of all parts for 1 year, labor is not included and the warranty paper is in the package or we can send to you if needed | Php 359,955 | Panasonic | * Enjoy a 3D massage with relaxing, multi-directional rollers * Soothing, double-heated rollers simulate hot-stone therapy * Six pre-set programs offer deep, Shiatsu, hip and other massages * Choose from eight massage chair manual programs to match your day and mood | Php 314,955 | Isukoshi ispace | * Less Pressure on the spine * Less Pressure on the heart * Correct Spinal Alignment * Relief Back pains * Increase oxygen level | Php 292, 275 |

FINANCIAL

Sales Analysis

ENVIRONMENTAL CONCERNS AND OPPORTUNITIES:
Economic Environment could be a concern in our business, we manufacture our products in other country (South Korea), and we consider the factors like the interest rates, increasing taxes for shipping of the product and the currency exchange rates. For the consumer, we concern about their discretionary income which affects their confidence in buying our product.
Technological environment is dynamic which may give more opportunities to the company. In the future, the Klismos Company can make ideas in improving the relaxation chair and might give more benefits to the customers. The trends can give affect in knowing what will be the next or future design of the relaxation chair, adding features that can give more convenient and make customer satisfied.
There is also increasing number of individual who are healthy conscious. They engage for products that are good for the whole body. They are more conscious about the conditions about the environment which can help in achieving a healthy environment and body. There will be an evolution of the product. New features or accessories and line extension of the product will be added. Those environments may give opportunity in order for the company to attain its goals. Klismos Company will be able to market TheraPro which can increase its profitability and continuously provide a relaxation chair that has innovative features.
SWOT ANALYSIS
Strengths
1. INNOVATIVE FEATURES. To get the attention of possible customers, we designed our product to be more convenient to use because of its new added features compare to others. With its innovative features we have the advantage to satisfy the customer. Customers are no longer seeking other brand because all they need is TheraPro Relaxation Chair.

2. STYLISH AND LUXURIOUS. Its style and luxurious look appeals to our target market and also attract them to buy.

3. FULLY BODY MASSAGE. We designed it for full body to give more benefits.

Weaknesses 1. HIGH PRICE. Customer may think that our product is too expensive. Consumer may refuse to buy it.

2. THE DEGREE OF AWARENESS IS MINIMAL. Filipinos have a low degree of awareness to the TheraPro which may lead to low market share. It will be harder to market the product.

Opportunities 1. INCREASING NUMBERS OF PROFFESIONALS. Now a day, they are many professionals who really want to lessen their stress.

2. INCREASING NUMBERS OF PEOPLE WHO ARE HEALTH CONCIOUS. There are now many people who into good health and want to lessen their stress they got in a heavy work.
Threats
1. EXISTING MASSAGE CENTER. For others, they go to massage centers when they want to relax. Existing massage center may give big threats in the Klismos Company which may affect the market growth.

2. COMPETITOR’S PRODUCT. Compare to other company they already established brand awareness which gives the Klismos Company a hard time to get customers loyalty.

Marketing Strategies
TheraPro Relaxation Chair is basically aimed to give relaxation to people especially to those who are workaholic and even to those who are into sports. With this in mind, among the first things that one should be looking for is the benefits and its innovative features. Different relaxation chair styles have quickly evolved over time. Different styles for relaxation chair includes: hip massage and leg and back massage. Making the TheraPro to be unique, the design is a full body massage from the head to toe, which gives more benefits.
The key for marketing strategy of Klismos Company will focus on bombarding the target market about the benefits that our product can give to them. The company aims to increase target market’s brand awareness and that will eventually lead to brand loyalty and creation of brand image. Klismos Company will use advertising means such as, TV advertising, Billboard, Social Media.
The television advertisements that will be shown at CNN and sport channel it will run twice a week around 7 pm for two months. Because most professionals are watching informative shows like news channel so it is very strategic to place at CNN channel wherein professionals watch. And for the athletes, they are fan of watching sport related shows.
Klismos will conduct customer preference research base on the information during the media exposure and promotional activities. If the information is collected, the market researchers, communication specialist and product manager will conduct a meeting and talks about the necessary action regards to the market and perspectives.

TARGET MARKET OBJECTIVES * To establish the product in the market segments and furniture industry. The relaxation chair will highlight the important features and benefits the TheraPro Relaxation Chair has. This way the consumers will be aware that TheraPro Relaxation Chair delivers most of their needs. * To penetrate the market. It will offer reasonable sales promotion such 3 year warranty, free shipping and setup and maintenance to relaxation chair when consumers purchase. * To increase market share. We will aggressively approach the consumers and through the use of sales promotion and aim to have an increasing market share within the first year.

PROMOTIONAL OBJECTIVES

* To dispense TheraPro Relaxation Chair information and increase brand awareness. The newspaper, social media and television advertisements will target professionals, athletes and consumers. The campaign will show the product information that there is another solution of having a relaxation in a most convenient way, emphasize the performance of a single, advance relaxation chair. And increase among professionals and athletes who own relaxation chair and who are persuaded and willing to have the chair.

CHANNEL DISTRIBUTION OBJECTIVES * To make available the product to the consumer who wants to buy it. The Klismos TheraPro Relaxation Chair showroom is place at SM North EDSA, Quezon City and Green Belt, Makati city. * To meet service requirements and create differentiation over competitors. The service support centers are openly available for service support and product maintenance. And lastly, deliver relaxation chair right to customer doorstep.
MARKET RESEARCH ROLE AND OBJECTIVES * To obtain market develop and trends. Market researcher will conduct a monthly report about the market trends and progress that will be presented and needed for the actual and future marketing activities of TheraPro Relaxation Chair.
RESEARCH AND DEVELOPMENT OBJECTIVES * To find out new market for the product and study in details the likes and dislikes of the consumers and meet the competition. The research will uphold massive market research integrating the changes of market, target and their preferences which will needed for integrating the communication to customers and market decision.
Tactical Marketing Programs:
TARGET MARKET TACTICS
The target market are professionals which are engineers, accountants, lawyers, architects, university faculty, doctors, high and middle managers and directors of public and private organizations whose salaries ranges between Php 80 000.00 to Php 120 000.00 and above. Their nature of work shoulders a large amount of stress in the work place. They are quality conscious wherein they really do massive research and comparison activities when it comes to luxurious, sophisticated and technical products. So, there’ll be support and service network wherein they can rely for gathering information and maintenance support.
The secondary target market is athletes such as athletics, taekwondo player, basketball player, baseball player, gymnast and others. When it comes of buying the sports related and wellness related products, they check the features and benefits of the product and let them perceive, observe and appreciate before considering it. They are more feature-oriented buyer or user.

PRODUCT TACTICS:

The TheraPro relaxation chair will be positioned as a multipurpose product for personal use which promotes relaxation and healthy lifestyle. It focuses value-added entertainment and healthy benefits.. Klismos are into careful designing and manufacturing on every parts of TheraPro Relaxation Chair and consciously stands for total quality delivery of benefits. This includes delivering overall relaxation through massage capabilities and just by sitting on it customer will feel the changes physically, emotionally and mentally in just 15 minutes.
PRODUCT TACTICS * Full body massages function. The shoulder massager and upper arm and forearm massager give a gentle massage from your shoulders to your palms. For the back, buttocks and calves, massage techniques and programming deliver sensation as close to human hands as you can find. The length of the leg rest can be adjusted by moving the foot massager up or down, which enables leg rest to give a gentle massage to your feet and legs from any direction. * Body point locator. It locate the points, which vary from person to person, before starting a massage allowing for an effective, massage that tailors itself to body size and shape. * Remote control display panel and controller. The remote control features a clear, easy-to-read display panel that enables you to monitor the Therapro Relaxation Chair. The displays will guide you through each step of relaxation, displaying information about each massage action. * Automatic and synchronous reclining. The seat back can be reclined to any angle between approximately 120 degrees and 165 degrees from the floor according to your preference. * Various course functions. Healthcare and well-being programs that allow user to select the optimal and deep relaxation programs according to the purpose and Manual selection mode that accommodates particular needs. * Air bag technology. It is placed on the hip, leg, seat pad area where it inflates and deflates that creates sensational and unique massage. * Full body stretch or zero gravity stretch. It is a combination of bending the upper body backward with reclining of the seat back and twisting with air cushions provided with the seat. * Dual heat back massager. The heater located under the back to warm your back. * Youth session. It provides low-stimulation massage for children aged 14 years or over. For this program, the adjustable range of the roller shoulder positions during the body point locator is extended to cover lower positions, to fit the shoulder positions of young people.

2 TheraPro Relaxation Chair program 1. Healthcare programs. * Full body. This program is recommended for persons who feel fatigue or lack of energy * Body air. This program focused on air bag massage and recommended for persons who prefer softer massage * Youth. This program is recommended for persons who prefer softer massage or for children aged 14 years or over. * Quick. This program provides a quick massage to refresh the entire body for only 15 minutes

2. Well-being programs

* Morning. This program is recommended for persons who have a bad morning or who have not recovered from their fatigue * Night. It is recommended to use this before going to bed * Stretch. This course is focused on curving and twisting motions.

The company logo is on a recline position, which portray and represent the industry where into, Furniture industry. The TheraPro Relaxation Chair stands for Therapeutic professional which describe what the relaxation chair perform and benefit that user can acquire.

There will be shipping bands for holding the base lid or top and box shell. There is cardboard spacer from of the backrest and from the front of the leg and calf massager, corner spacer from each side of the headrest , foam that support beneath the backrest, protective bubble wrap from the backrest, leg and calf massager, remove control from its box which is located on top of the seat and foam panels. The company logo and product, actual product image, model, contact number and manufacturer and where it is been manufactured will be placed in the actual product packaging. The company logo and product will be place in the right side of the chair near the hip area. TheraPro Relaxation Chair will come into accessories like laptop holder size 11” x 16” wherein user can do his/her when he/she is sitting in the relaxation chair or after receiving a massage. No need for customer to walk and work for other places.

PROMOTION STRATEGIES:

Current Promotional Decisions (SUMMARY)
As Klismos Company aims to introduce TheraPro Relaxation Chair to be known. Advertisement can help in getting customers’ attention. It designed to increase sales and build profits gradually. We use informative advertising to give information about the product and also educate them about its benefits.
TheraPro will be displayed and consumer can try it. There is a demonstration assist by an employee. Social media, billboard, newspaper and TV ads are use in expanding brand awareness and also increasing market growth.

Future Changes
As Klismos move in the cycle, there will be changes in promoting TheraPro Relaxation Chair. Before, we used informative advertising which gives people information about the product and now we will use persuasive advertising. The persuasive advertising can help us in increasing the demand for our product. The idea is persuade other possible target market to buy it and keep the continuity of customer loyalty to our product.

Changes in Advertisements: 1. SOCIAL MEDIA. We will update our website regularly and also giving reliable information about the product.

2. BILLBOARD. In the next year, we will make a billboard which persuades people to try the TheraPro Relaxation Chair.

3. NEWSPAPER. We will release newspapers that contain trivia and testimonials about the quality of TheraPro relaxation Chair, testimonials of many people who tried it and who those who satisfied the product.

4. TV ADVERTISMENT. In the next year, our video contains about those people who tried TheraPro Relaxation Chair.

Methods and Message
In the next year operation, newspaper will have trivia and testimonials of many people regarding TheraPro Relaxation Chair and in the TV ads testimonials also but it is stronger because it is video which you can recognize those who buy it. Giving idea to the customer that TheraPro can give more benefits compare to others. TheraPro has innovative and unique features that others do not have.

DISTRIBUTION TACTICS:

Current Distribution Network Chain Decisions (SUMMARY)
We adapt direct channel or zero level channel, where we have 2 branches in NCR. It will be in Makati City and Quezon City. A warehouse will be in Mandaluyong City. In the delivering the product we have delivery trucks. Every truck has three (3) personnel.

Future Changes We will change the channel to be used, instead of direct channel we will use indirect. To make TheraPro Relaxation Chair available not only in the NCR, we will have intermediaries, retailers that can help us in selling the product. It will have retailers in the Luzon, Visayas and Mindanao.

PRICING TACTICS:

Current Pricing Decisions (SUMMARY)
We used premium pricing as strategy because our price is higher than our competitor. We don’t have discount policy because as we aim to achieve our goal, stated above, the price of the TheraPro Relaxation Chair is reasonable. The price of our offering is worth it. It is worth it because if they buy TheraPro Relaxation Chair, the discount is possibly on the warranty and customer service. Future Changes
In the discount policy, we will have discount for retailers that can also give a commission. Budgeting, Performance Analysis and Implementation:
MARKETING BUDGET Advertisements | Cost | Billboard (Php 350,000 x 2 months) | Php 700,000 | Newspaper 1st month 2nd month | Php 74,000Php 108,000 | TV advertisement(Php 500,000 x 3 months) | Php 1,500,000 |

PERFORMANCE ANALYSIS

Cost to Build/Assemble 1 Relaxation Chair | Direct Cost: | Parts and Materials | Cost | * Chair Frame * Airbags * Motor * Rollers * Head Massage * Device Holder (Laptop/Ipad/Tablet) * Remote Control * Other Parts/Materials (screws/knots/glue)Sub-total | PHP 25, 380.00PHP 34, 263.00PHP 19, 035.00PHP 15, 839.00PHP 3, 149.00PHP 2, 538.00PHP 2, 538.00 PHP 940.00PHP 103, 682.00 | | Cost of Labor: | * 4 hours and 2 employees to assemble 1 relaxation chair * (P20, 000/22 days/ 8hrs = P113.64 *4 hrs *2 employees | PHP 909.09 | | Packaging Cost | PHP 8,500.00 | | Total Direct Cost | PHP 113, 091 .09 | | Shipping Costs: | * Cost of Shipping 1 Relaxation Chair * 20 ft. Container can accommodate parts and materials equivalent to 70 relaxation chair (US$2,000*47 = P94, 000/70) | PHP 1, 342.86 | | Customs Tax, Duties and Tariffs: | Cost of Parts and Materials (P103, 682 * 70) Total Shipping Cost Total Landed Cost | PHP 7, 257, 740.00 94, 000.00PHP 7, 351, 740.00 | | | | | Value Added Tax (12%) | 882, 208. 80 | | | | | Custom Duties and Tariffs (5%) | 367, 587.00 | | | | | Total Customs Tax, Duties and Tariffs | PHP 1, 249, 795. 80 | | | | | Rounded | PHP 1, 250,000.00 | | | | | Estimated Customs Tax, Duties & Tariffs per 1 Relaxation Chair (Php 1, 250, 000/70) | | PHP 17, 857.14 | | | | Total Cost | | Php 130, 948.23 | | | | Unit Selling Price | | Php 250,000.00 | Assumption: The Company will import parts and materials from South Korea on a quarterly basis. All computations is based on a per quarter | FIXED COSTS | Parts and Materials (P103, 682*70 units) | 7, 257, 740.00 | Packaging Unit (P8,500*70 units) | 595, 000.00 | Direct Labor (P20,000 *4 employees* 3 months) | 240, 000.00 | Shipping Costs | 94,000.00 | Customs Tax, Duties & Tariffs | 1, 250, 000.00 | Total Direct Fixed Costs | 9, 436, 740.00 | | Other Fixed Costs | | Rental of Warehouse (P250, 000 per month) | 750, 000.00 | Advertising and Marketing Expense (P 2, 382, 000/4 quarters) | 595, 500.00 | Depreciation Expense of Delivery Vehicles (Cost of Delivery Wan (4) - P2, 000, 000. 000 5 years useful life)(P2,000,000/ 60 months = P33,333.33*3 months) | 100, 000.00 | Janitorial and Security Services | 75, 000.00 | Salaries and Wages | 1, 112, 000.00 | Insurance Expense – Delivery Van (P32, 000 per annum/ 4 quarters) | 8, 000.00 | Telephone Expenses (based on Fixed Post Paid Plan) | 5, 000.00 | Total Other Fixed Costs | 2, 645, 500.00 | Total Fixed Costs | 12, 082, 240.00 | Rounded | 12, 100, 000.00 | VARIABLE COSTS | Commission Expense | 850, 000.00 | Power, Light and Water (15,000 per month) | 45, 000.00 | Fuel and Oil (P8,000 per month) | 24, 000.00 | Repairs and Maintenance (P2,000 per month) | 6, 000.00 | Revaluation Adjustments (Allowance of P1 for Charges in Foreign Exchange Rate of USD to PHP) | 5, 000.00 | Office Supplies (P1,000 per month) | 3, 000.00 | Miscellaneous Expenses (P2,000 per month) | 6, 000.00 | Total Variable Costs | 939,000.00 | | Variable Cost per Unit (P939, 000/70 units) | 13, 414.29 | Rounded | 13,500.00 | | Total Costs | 13, 039, 000.00 |

CAPITALIZATION | Makati City Branch | 2 Delivery Van | Php 500, 000.00 x 2 | Php 1, 000, 000.00 | Quezon City Branch | 2 Delivery Van | Php 500, 000.00 x 2 | Php 1, 000, 000.00 | | Inventory | Php 250, 000.00 x 70 | Php 17, 500, 000.00 | TOTAL | | | Php 19, 500, 000.00 |

BREAK-EVEN ANALYSIS | Selling Price per Unit | | 250, 000.00 | Variable Cost per Unit | | 13, 500.00 | Total Fixed Cost | | 12, 100, 000.00 | | | | Break-even Sales Units = | Fixed Cost .(Selling Price per Unit – Variable Cost per Unit) 11, 900, 000 . (250,000 – 13, 500) 11, 900, 000 . 235, 50051.16 | Rounded | 52 | Break Even Point in Sales Pesos = | Selling Price per Unit x Break-even Sales in Units250, 000 x 5213, 000, 000.00 |

1. The Parts and Materials (Chair Frame, Airbags, Motor, Rollers, Head Massage, Device Holder, Remote Control, etc.) with a sub-total cost of Php 103, 682.00. 2. The Cost of Labor who assemble (includes testing and quality control) the TheraPro Relaxation Chair, estimation of 4 hours and 2 employees to assemble 1 chair – Php 20,000 3. The Packaging Cost – Php 8,500.00 4. The Shipping Cost, which the Klismos will engage the services of Maersk Logistics Filipinas, Inc. for the shipment of parts and materials from South Korea to Manila, Philippines by sea freight. The TheraPro Relaxation chair will be shipped in a 20ft container that can accommodate parts and materials equivalent to 70 relaxation chair which cost Php 94,000.00. 5. The Customs Tax, Duties and Tariffs which includes the Total Landed Cost of Php 7,351,740.00, where the Total Cost of parts and materials of the 70 TheraPro Relaxation Chair is added to the total Shipping cost. The Value Added Tax (12%) – Php 882,208.80 and the Customs Duties and Tariffs (5%) – Php367, 587.00. 6. The Rental of Warehouse, Php 250,000.00 per month 7. The Advertising and Marketing Expense, which includes the TV advertisements, billboards and newspaper, 595,500.00 quarterly. 8. The Expense of Delivery Vehicles, which are 4 Delivery Van costs Php 2,000,000.00 9. The Salaries and Wages of the personnel in the Klismos Company costs Php 917,000.00 10. The Insurance Expense of Delivery Van, Php 32,000.00 per annum. 11. The Telephone Expenses which is based on Fixed Post Paid Plan, Php 1, 250.00 monthly 12. The Commission Expense costs Php210, 000.00 per month. 13. The Power, Light and Water Expense costs Php15, 000.00 per month 14. The Fuel and Oil that will be used in shipping the TheraPro Relaxation Chair cost Php 8, 000.00 per month 15. The Repairs and Maintenance of the Delivery vehicles which costs Php 2,000.00 per month. 16. The Revaluation Adjustments which costs Php 5, 000.00 quarterly. 17. The Office Supplies that will be used in the Klismos company which costs Php 1,000.00 per month 18. The Miscellaneous Expenses costs Php2, 000.00 per month.

IMPLEMENTATION

There will be a general manager at each store. He or she will be responsible on maintaining customer service and facilities, maintains stock and inventories, maintain sales accounts or maintain general ledger and ensures an accessible accommodation for each customer. Sales agent establish business relationship with current and potential customer at show room during the demonstration, make a telephone calls and attend in person visit of customers then determine the customer information such as name, address, and contact for delivery and for databases, coordinate to warehouse coordinator for delivery and supply and make a logbook for proposals, quotations and suggestions of customers. Distribution manager focuses on the movement of TheraPro Relaxation Chair and they will schedule the routes and shipping methods and resolve shipments errors or problems and ensure the shipping documentation given by store sales agents are complete and accurate then for the warehouse coordinator, he or she is responsible in locating, designing the storage accommodation of warehouse and create warehouse volume changes and transportation requirements and check the numbers of units coming in and out. There will be two technicians who will go for assisting the driver in delivering the TheraPro and they will carry the product at customers’ chosen place they will assemble the product and check the electric circuits and try the product if is working and deliver a brief instruction and they will give the slip where the customer attaches there signature as a proof that the product was delivered to them. The driver will get the delivery slip from warehouse coordinator then check all the important things about delivering it. After checking it, he will ready for delivering the product. After he delivered the product, he will go back to the warehouse to report by giving the slip.

Controls and Other Considerations
Controls and considerations:
External factors affecting the plan: 1. Competitors- this is the most critical external factors that affect the plan. Marketer must study the market situation more over to the competitors. Competitor prices can affect the business. They may offer lower prices that we do. Competitors may offer better features better design. Thus, the business will able to compete in the market. 2. Price - Fixing the price of the product, the business must reconsider the expense cost in producing and manufacturing the product. Price sensitivity of the buyer and purchasing power must also reconsider. 3. Changing technology- technology is fast changing processes that broadly affect the business plan. As the technology nurture, better innovations are more efficient and effective that offers better quality and attributes toward the product. 4. Distribution – deliver the product for the least cost and the most convenient to our customers despite of the distribution area. The business must conduct an effective distribution channel system to deliver. Hence the business will not have full control towards the expenses.

Internal factors 1. Quality - The business has the full authority and rights to give the best and quality of the product. Manufacturing and producing the product with well trained, high skilled people to work with will lead to high sales. 2. Design and features – The business has its own design and features. An effective strategy must exert toward the business to build the company image and have a public relation. Customers may identify the product with its own design and features. 3. Employee (performance) – Employ employees is internal factors toward the business plan. It may affect the business based to the employee’s performance. Hiring employees can mean to company success and failure. Recruiting right and best employees were lead to long-term success. It may affect the quality, design and features the business deliver to customers.