This study will involve the process of gathering information about the potential
market that can be used in deciding what strategies would help the company yield
maximum profitability, and how the product is designed, delivered, priced and marketed.
This will determine the current demand and supply for the proposed product and identify
the unattended demands that will determine the company’s market share. Furthermore,
this portion will also discuss the current market analysis and the anticipated future market
potential, the existing competitors, consumers, opportunities and the competitive edge of
Global Activated Carbon Market Volume
Food & Beverage Processing
Pharmaceutical & Medical
Fig. 2.1 Global Activated Carbon Market Volume Share
Carbon Plus Corporation targets those businesses indicated in Fig. 2.1. These
businesses need activated carbon as part of their operation to clean and detoxify their
products before selling it out to the market. As a newly organized business, Carbon Plus
Corporation would only be targeting 2 among those business listed above during its first
years of operations. These are oil refineries and water treatment business.
According to the World Health of Organization, about 3.4 million people die
annually from water-related diseases. About a million Filipinos get sick with waterborne diseases yearly of which the cause is diarrhea alone. This does not yet include
other water-borne disease like amoebiasis, cryptosporidiosis and cholera. This is where
water refilling stations arise. They help prevent the contamination of water thus, prevent
the increasing cases of death due from water-borne diseases.
The researchers perceived that since our population is increasing, the market of
water refilling station is progressive. And more and more refilling station would arouse
in the next years to supply the demand of the population for purified water. Moreover, as
we can see in the illustration above, water treatment is the top most user of activated
carbon in the market and with that the corporation would yield greater profits.
CALABARZON is regarded as the nucleus for industrialization and one of the
most leading producer of oil in the Philippines.
Carbon Plus Corporation saw the
advantage of targeting these businesses since they are nearer the vicinity of the
corporation’s site. This would give the target consumers the convenience in buying the
Also, being the only manufacturer of powderized activated carbon in
CALABARZON, this would give the corporation an edge and the competitive advantage
among its competitors.
Carbon Plus Corp. aim to reach those businesses especially those areas within and
near the vicinity of Region 4-A.Since there is only one manufacturer of activated carbon
in CALABARZON, we can help these enterprise in lowering their cost of purchase
without sacrificing the quality of the product.
Furthermore, since there are so many business that uses activated carbon, the
corporation would expand its horizon and target as well these business to be able to
realize its vision as an integrated manufacturing entity providing sufficient supply of high
quality activated carbon and relevant services to respond to their growing demands while
minimizing the cost of the product to make it more affordable to the users.
Region IV-A (CALABARZON)
Fig. 2.2 Geographical Area of Region IV-A (CALABARZON)
Region IV-A or CALABARZON is one of the regions of the Philippines. It is
located in the southwest of Luzon and is the second most densely populated region. This
region is composed of Cavite, Laguna, Batangas, Rizal and Quezon Province.
The region is known as the industrial powerhouse and is also identified as the
nucleus of industrialization in the Philippines. It has a big supply base of semi-processed
industrial raw materials and industrial components coming from its 31 world-class
industrial estates and economic zones (ecozones).
Moreover, the region has a vast pool of human resource base for the
manufacturing and services industries and has reliable utilities and well-placed
infrastructure enhancing faster turn-around times. It has business-friendly environment,
first-class lifestyle, and booming tourism circuits.
Cavite is a province of the Philippines located on the southern shores of Manila
Bay in the CALABARZON region in Luzon. Its capital is the city of Trece Martires.
Cavite is surrounded by the provinces of Laguna to the east and Batangas to the south. To
the west lies the South China Sea.
It is the smallest province in the CALABARZON region. It is one of the most
industrialized and one of the fastest growing provinces in the country because of its close
proximity to Metro Manila, located just 14 kilometers (8.7 mi) south of the capital.
Laguna’s capital is Santa Cruz and the province is located southeast of Metro
Manila, south of the province of Rizal, west of Quezon, north of Batangas and east of
Cavite. Laguna almost completely surrounds Laguna de Bay, the largest lake in the
country. The province got its name from the Spanish word lago, which means lake.
Laguna shows a thriving economy. With a population of 2,669,847 (2010
Census),and a total area of 1,760 km2 (680 sq mi) of land, Laguna produces millions of
pesos worth of coconuts, rice, sugar, citrus fruits, lanzones and other products.
Batangas is a first class province of the Philippines located on the southwestern
part of Luzon in the CALABARZON region. Its capital is Batangas City and it is
bordered by the provinces of Cavite and Laguna to the north and Quezon to the east.
Across the Verde Island Passages to the south is the island of Mindoro and to the west
lies the South China Sea. Batangas is often referred to by its ancient name Kumintang.
Batangas has the second largest international seaport in the Philippines after
Metro Manila. The identification of the city as an industrial growth center in the region
and being the focal point of the CALABARZON program resulted to the increasing
number of business establishments in the city's Central Business District (CBD) as well
as numerous industries operating at the province's industrial parks.
Rizal province is bordered by Metro Manila to the west, the province
of Bulacan to the north, Quezon to the east andLaguna province to the south.
province was named after the country's national hero, José Rizal. Rizal's capital is
Antipolo City, although the provincial capitol is located in Pasig City in Metro Manila,
which was the previous capital.
Quezon is located southeast of Metro Manila and it is surrounded by the
provinces of Aurora to the north, Bulacan, Rizal, Laguna and Batangas to the west and
the Camarines provinces to the east. Quezon lies on an isthmus separating the Bicol
Peninsula from the main part of Luzon. The province also covers the Polillo Islands in the
Philippine Sea. The province was named after Manuel L. Quezon, the second President of
the Philippines, and its capital is Lucena City.
Quezon is the country's leading producer of coconut products such as coconut
oil and copra. A large part of the province is covered in coconut plantations. Other major
crops are rice, corn, banana, and coffee. Fishing is also a large part of the province's
Population of CALABARZON by Age Group for 2010
Table 2.1 Population of CALABARZON by Age Group for 2010
Projected Number of Population Based on 2000 Census-based Population Projection
Table 2.2 Projected Number of Population Based on 2000 Census-based Population
Table 2.1 and 2.2 was taken from the National Statistics Office based from their
latest records in 2000. Accordingly, by taking the projected number of population from
table 2.2 in years 2010 and 2020 we would be able to project the population growth rate
Projected Population of CALABARZON per Age Group for 2012
Table 2.3 Projected Population of CALABARZON per Age Group for 2012
Demand is the consumer’s willingness and capacity to buy goods or services at a
certain price level. It refers to how much (quantity) product or service is desired by
consumers. The demand would tell the company the consumer’s taste and preferences
for a given type of product. Thus, to be able to meet the needs and wants of the
company’s target market, there is a need to project the market demand. And with that, it
would make the firm more effective to its market.
The researchers gathered enough data through relevant questionnaires and
interviews with different industries. These data would be used to identify the market
demand for the company’s product. The data gathered are as follows:
Respondents According to Industry
Fig. 2.3 Respondents According to Industry
The researchers did a survey in 2 different industries which would be the
company’s target market. The figure above shows that 85% of the respondents are water
refilling businesses while the remaining 15% are oil refineries.
Responses of Respondents According
to Supplier of Activated Carbon
Fig. 2.4 Responses of Respondents According to Supplier of Activated Carbon
The data above shows that 20% among the respondents buys activated carbon
from foreign suppliers.
Thus, the corporation could dominate this 20% since the
corporation is very accesible by these industries and their cost of purchase would be
lessen given the same quality of activated carbon offered.
Type of Activated Carbon Used by
Fig. 2.5 Type of Activated Carbon Used by Respondents
The figure shown indicates that 15% of the repondents uses powderized activated
carbon and all of these are coming from oil refineries which means that the remaining
85% who use granular activated carbon are water refilling industries. This would only
mean that the market of granular activated carbon is focused on water refilling stations
while the market of powderized activated carbon is focused on oil refineries.
Frequency of Activated Carbon
Fig. 2.6 Frequency of Activated Carbon Purchases
The above figure shows how frequent the respondents buy activated carbon. The
survey resulted that most of these industries choose to buy in a monthly basis which is
The other 30% buys quarterly and the remaining 10% choose to buy semi-
annually. This would be helpful in determining the consumption of activated carbon and
also on how many activated carbon should be produced in a given period.
Respondents Using Granular AC
P80 - 90
P90 - 100
P100 - 110
Fig. 2.7 Respondents Using Granular AC Purchase Price
From the gathered data above, we can see that 41% of the respondents using
granular AC buy AC from a range of P100 – 110 which covers almost half of the pie.
The next is 90 – 100 with a 29% among the respondents, P110 - 120 with a 18% and P10
- 90 with the remaining 12%.
This data would be a factor in determining the selling price of the company.
Respondents Using Powderized AC
P60 - 70
P70 - 80
Fig. 2.8 Respondents Using Powderized AC Purchase Price
The figure indicates that 67% of the respondents’ purchase price is from a range
of P60 -70 while the remaining 33% purchases powderized AC from a price range of P50
Water Refilling Station
Since water is a basic necessity, we can safely assume that as the population
increases, the demand for water increases. Consequently, the higher the demand for
water the more water refilling stations would arouse in the market. Thus, the population
growth would be the basis for projecting the number of water refilling stations in the
provinces of CALABARZON. To project, we would use the formula below.
Projected Number of Water Refilling Stations in Other Provinces for 2012
Projected Number of Water Refilling Stations in CALABARZON for 2012-2017
Table 2.4 Projected Number of Water Refilling Stations in CALABARZON for 2012-2017
Annual Demand of Activated Carbonfor Water Refilling Stations 2013-2017
Total Number of Water
Average Daily Sales (in gallons)
Total Average Daily Sales (in
245,247 249,907 254,655 259,493 264,424
Multiplied by Average Daily
0.00625 0.00625 0.00625 0.00625 0.00625
Consumption of AC (kg/gal)
Daily Consumption of AC (kg)
Monthly Consumption of AC
Annual Demand of AC (in kilo)
551,806 562,290 572,974 583,860 594,954
Table 2.5 Annual Demand of Activated Carbon for Water Refilling Stations 2013-2017
According from our interviews with water refilling business, their average sales of
water is 185 gallons per day. And according to another interview we had with Osmotech
Inc., a water treatment business, a 50kilogram granular AC can purify 8000gallons of
water. So, in order to get the average consumption of AC per gallon, we simply divide
50kilos to 8000gallons, we can get the proportion of AC used per gallon of 0.00625kilos.
Thus, to arrive at the projected annual demand, the projected number of water refilling
stations would be multiplied by the average yearly consumption.
List of Oil Refineries in CALABARZON as of 2012
JNJ Oil Industries Inc.
Brgy. Isabang, Lucena City,
Mt. Holly Coco Industrial Brgy. Domoit, Lucena City,
Tongsan Industrial Dev’t Brgy.
San Pablo Manufacturing 140 W.P. Schetelig Avenue,
San Pablo City, Laguna
Mt. Makiling Intl. Oil Inc.
Source: Philippine Coconut Authority
Table 2.6 List of Oil Refineries in CALABARZON as of 2012
Demand of Activated Carbon for Oil Refineries in 2013
Daily Production of Oil - 2013 (in
Increase in Prior Periods
Increase in Daily Production 1.90%
Daily Production of Oil (in MT)
Multiplied by Consumption of AC
4.78567 4.78567 4.78567 4.78567 4.78567
Daily Consumption of AC (in kg)
Monthly Consumption of AC
Annual Demand of AC (in kg)
891,570 908,510 925,772 943,362 961,285
Table 2.7 Demand of Activated Carbon for Oil Refineries in 2013
From our surveys and research, oil refineries need powderized activated carbon in
their daily operations. So in order to project the demand for powderized activated carbon
by oil refineries, the data were gathered through relevant questionnaires and interviews.
According from an experienced chemist, for oil refineries to produce 100 gallons of oil it
uses approximately 50kilograms of powderized activated carbon. Oil refineries must
maintain the quality of activated carbon thus, they frequently change the activated carbon
in their machines. So, the consumption of activated carbon per metric tons is 4.78567.
Consequently, the monthly consumption of powderized activated carbon is 74,298
and the annual demand of activated carbon in kilos is 891,570 during 2013. The growth
rate of the population was used to project the demand of oil. This is due to the fact that
the greater the population, the greater the consumption of food and thus, more activated
carbon would be supplied by oil industries.
Supply is the quantity available in the market ready for consumption by the
consumers. It is the volume of the product or service in which a firm is able and willing
to offer the market. The supply of a company must meet the demands of the consumers.
Thus, to project the supply it must consider the demand and also, there are many factors
affecting the supply of a firm. Some of these are prices of inputs, number of firms
offering the same product, technological advancements, prices of related goods,
environmental factors, and producer’s expectations. With this, the company would use
these factors to base its projected supply for the future years to come.
Supply of Granular Activated Carbon in CALABARZON
Total Number of Water Refilling
Average Purchases of Activated
Carbon per Month (in kilos)
Average Monthly Supply of AC
Annual Supply of Activated
397,698 405,254 412,954 420,800 428,795
Carbon (in kilos)
Table 2.8 Supply of Granular Activated Carbon in CALABARZON
A water refilling station’s average purchases of activated carbon per month is 25
kilograms, and thus the annual supply was determined to be 397,698 kilograms. This
would be used to project the untapped market and the market share ratio of the
Supply of Powderized Activated Carbon in Calabarzon
AC – 2013
JNJ Oil Industries Inc.
Mt. Holly Coco Industrial Inc.
Tongsan Industrial Dev’t Corporation
San Pablo Manufacturing Corporation
Mt. Makiling Intl. Oil Inc.
Monthly Supply of Activated Carbon - 2013
Annual Supply of Activated Carbon - 2013
Table 2.9 Supply of Powderized Activated Carbon in Calabarzon
The figure above would be used to determine the untapped market of powderized
activated carbon. The data were gathered from Philippine Coconut Authority. It shows
that the annual supply of activated carbon in oil refineries during 2013 is 538,200.
Listed below are the activated carbon manufacturers in the Philippines. These are
local manufacturers’ that supplies the market with granular and powderized activated
List of Activated Carbon Manufacturers in the Philippines
Activated Carbon Manufacturers
Cenapro Chemical Corporation
Jagobiao, Mandaue City
Davao Central Chemical Corp.
Tibungco, Davao City
Pacific Activated Carbon, Co.
Cavite & Misamis Oriental
Donau Carbon Philippines Corp.
El Salvador, Misamis Oriental
Carbon Panacan, Davao City
Premium AC Corporation
Ma-a Davao City
Mindanao Activated Carbon
Panacan, Davao City
Green Carbon, Inc.
Mapecon Philippines, Inc.
BF Industries, Inc.
Toril, Davao City
Source: Philippine Activated Carbon Manufacturers’ Association
Table 2.10 List of Activated Carbon Manufacturers in the Philippines
Now that we have determined the demand and supply of each type of activated
carbon, we can now determine the untapped market.
The untapped market is the portion which the supply do not meet the demand.
This means that the amount of being supplied to the market is insufficient to meet the
customers’ demands. This would result for consumers to adjust their means of using the
product like minimizing the consumption of the product.
The researchers identified the untapped market of activated carbon in each
of its target industry. This would be used to identify the volume of the corporations’
Untapped Market in Water Refilling Stations
AC (in kilos)
Annual Demand of Powderized AC
Annual Supply of Activated Carbon
Table 2.11 Untapped Market in Water Refilling Stations
Untapped Market in Oil Refineies
AC (in kilos)
Annual Demand of Powderized AC
Annual Supply of Activated Carbon
Table 2.12 Untapped Market in Oil Refineies
As we can see in tables 2.11 and 2.12, there is a huge part of the demands of the
market that is not met thus results to the untapped market. The reason for the large
amount of untapped market is that mostly all of the activated carbon manufacturers in the
Philippines’ target market is foreign companies or their main business is for exporting.
To answer this problem, Carbon Plus Corporation would supply this untapped
market. Thus, not only would this benefit the corporation by yielding profits but also this
would greatly affect the target industries, water refilling stations and oil refineries in their
daily production and operations.
The market share ratio will compute the market share of the company. This will
determine the annual budgeted supply to meet the annual market demand of the product.
Other factors to be considered in meeting the annual market demand are production
capacity, demand of the market, competitors, product, etc.
For the market share computation, the formula below will be used to determine
the market share ratio:
Annual Supply of the Company
Annual Supply of the Competitors + Annual Supply of the Company
Ratio in Water =
Ratio in Water =
397,698 + 154,108
Ratio in Oil =
Ratio in Oil =
538,200 + 353,370
Market Share of Carbon Plus Corp. for
Granular Activated Carbon
Carbon Plus Corp
Fig. 2.9 Market Share of Carbon Plus Corporation for Granular Activated Carbon
Market Share of Carbon Plus Corporation for
Powderized Activated Carbon
Carbon Plus Corp.
Fig. 2.10 Market Share of Carbon Plus Corporation for Powderized Activated Carbon
As many industries are booming and growing throughout the world today, the
industry of activated carbon is not enough to supply these industries that use activated
carbon in their day-to-day operations. Specifically in the Philippines where there are
only approximately 3 activated carbon manufacturers and among them only 1 is situated
in CALABARZON. Thus, industries like oil milling, water treatment and other kinds of
industries in CALABARZON tend to buy activated carbon from distant manufacturers or
even in foreign manufacturers which would cost them a lot higher than buying from a
local manufacturer which supplies the same quality and quantity.
As a response, Carbon Plus Corporation aims to provide these industries with
sufficient amount of high quality activated carbon without taking the cost and
affordability of the product for granted. It also aims to maximize the full potential of the
available opportunities not just for the company but more of the benefit of its customers.
Provided that, the company started in a relatively small share in the market, we
are consistently building our company with integrity, trust, and competence to be on the
top of the local industry, then the global setup.
Carbon Plus Corporation uses the four Ps in business: product, price, place and
promotion as a tool in marketing its product.
Carbon Plus Corporation will make use of coconut shells in manufacturing
its product, activated carbon. Coconut shell is the best material to be used in
manufacturing this type of carbon for it has the inherent characteristics which give
it an edge among other materials.
High hardness levels
minimizes dust generation.
High surface area
Gives high adsorption efficiency
(up to 1500 m2/g):
Gives high adsorption and retention capacity.
(< 20 Angstroms):
This is important for the removal of lowmolecular weight organics and trace levels of
Low ash content:
Gives high purity preventing contamination of
Provides for economical containment for the
same level of filtration.
Source: Green Carbon Inc.
Table 2.13 Inherent Characteristics of Coconut Shell as Raw Material for AC
Bearing and Non-Bearing Trees as of 2010
Source: Philippine Coconut Authority
Table 2.14 Bearing and Non-Bearing Trees as of 2010
Given the data above from Philippine Coconut Authority, the supply of
coconuts in CALABARZON is sufficient to meet the demands of the market.
Thus, this gives the consumers the assurance that the production of activated
carbon would be continuous.
1. Product Brand
The product would be named as “Carbon Plus” which is also the
company name. The name of the product and the company is the same to
connect the product with the company and for customers to easily remember
Aside from the reasons of using “Carbon Plus” as the name of the
corporation, it also connotes the idea of “something more” within the product.
It gives the product an impression of having an edge or offers a something
different from other similar products. Furthermore, it entails that Carbon Plus
has more adsorbing and purifying capacity.
Packaging is not just a design but it also serves as an advertisement of the
product. It gives a distinct identity of the product regarding its brand, size and
type. It differentiates the product among other similar products.
Type of Activated
Fig. 2.11 Package Label of Carbon Plus Corporation’s Activated Carbon
The label provides the company details such as the company name,
address, contact numbers and company site. Also, the label describes the
product as to its type and weight to distinguish it among other types. Plus, it
tells the consumers that it is made from 100% pure coconut shells, the best
material to manufacture activated carbon.
Product Label for Granular and Powderized AC
Fig. 2.12 Product Label for Granular and Powderized AC
500 kilo Sack of Powderized Activated Carbon
Fig. 2.13 500 kilo Sack of Powderized Activated Carbon
50 kilo Sack of Granular Activated Carbon
Fig. 2.14 50 kilo Sack of Granular Activated Carbon
Carbon Plus Corporation offers activated carbon at affordable and meaningful
prices but still provides the quality the customers deserve.
The company will make use of the Cost-base strategy in pricing the product.
Thus, the selling price would be determined through the formula below.
Price per unit = Manufacturing Cost per unit x Mark-Up Rate
From the formula above, the manufacturing cost include all cost directly
related to the manufacture or production of the product. These are cost of raw
materials used, direct labor costs and factory overhead costs.
Carbon Plus Corporation’s mark-up rate is 40% on the total manufacturing
cost. The company perceives that it is reasonable enough and it would yield a
much lower price from that of its competitors.
C. Distribution Channels
The distribution channel is the path in which the product goes through
untilit reaches the end users. A firm must monitor their product’s distribution and
necessarily determine if it reaches its consumers. Furthermore, each individual
channel must maintain a good communication to all other channels to be able to
meet the demand and sustain the supply of the product in the market.
Carbon Plus Corporation established the channel of distribution below in
order to achieve the target market of the firm.
Fig. 2.15 Distribution Channel of Carbon Plus Corporation
As shown above, there are only three parties within the distribution
channel: the manufacturer, the distributor and the end-users. Unlike any other
businesses, there is no need for the use of retailers and wholesalers since our
company engages within business to business transaction. Thus, the product
manufactured from the manufacturer, the company, would be disseminated to the
distributors. Now, the distributors would be the one to sell the product to the endusers lessening the cost of selling and advertising for the company. Moreover, to
establish the name of the company and be visible in the market it would also sell
directly to end-users. The company would not compete with its distributors. The
company would directly transact with end-users who are not covered by its
Carbon Plus Corporation ensures the proper and safe distribution of the
product and preserving the product’s quality upon its distribution.
In order to help the product make its way into the market, there is a need
for advertisements and promotions. Advertisements and promotions are a huge
and critical part in marketing the product especially in the first years of the
Thus, Carbon Plus Corporation would use the following techniques in
promoting and advertising its product:
1. Joining Industrial Exposition and Trade Fairs
Through joining industrial expositions, the company would have
the opportunity to introduce itself and promote its products to several
industries and businesses. There are a lot of industrial expositions and
trade fairs being held in the Philippines annually. Some are the following:
a. International Water Expo Philippines
b. Manufacturing Technology World Series
c. Enviro-Tech Philippines
2. Demo Presentation to Industries
Agents of the company would go to different companies and
distributors to promote and demonstrate the company’s products. This is a
way of letting the market test the product and see the quality and
efficiency of the usage of the product. This would cause the company to
manufacture samples and provide visuals and other aids to inform them
the benefits and quality of buying the corporations product.
3. Having a Company Web Site
The company’s web site would be used as a tool for making the
company visible to the public and also, it may also serve for transactions
with consumers to take place.
Advertising and Promotion Expenses
Advertising and Promotional
Industrial Expositions and Trade
Demo Presentation to Industries
Company Web Site
Total Advertising and Promotional
Table 2.15 Advertising and Promotion Expense
Quezon Province is well known for its abundance in coconut supply which only
takes less than two months to harvest, ensuring Carbon Plus Corporation, being the first
manufacturer of activated carbon in the province, a bounty supply and to fully utilize the
accessibility of coconut shells, our raw materials the whole year round. Furthermore, it
has been proven in our study that activated carbon from coconut shells provides better
adsorption capabilities compared to other sources.
The company offers the product at an affordable price and made it available in
small quantities compared to other manufacturers who only provide the public with bulk
amounts, in order to suffice the need of the small entities requiring relatively small
quantity of the product. We have carefully taken into consideration these small entities
since they mainly comprise the unattended markets; our potential share. In addition to
that, we are allowing them to achieve the utmost effect they desired, while using a small
amount to avoid wastage and excessive expenditures. Moreover, the corporation offers
powderized activated carbon which is used in oil refineries. There are no manufacturer
of powderized AC in CALABARZON or any nearby towns. Thus, the accessibility of
our company to the target market also adds up to the edge of our company. Once the
consumer knew that there is a more accessible, affordable and more customer-oriented
manufacturer, they would think practically. Instead of carrying the burden of availing the
products from international companies, which of course would be more expensive, or
even from remote local manufacturers, they would choose to patronize our company
which would not only help us to achieve our goals, but also help them in terms of saving
their costs without sacrificing the quality of the product.
Likely to be costly
Highly marketable products
No strong relationship with consumers
Access to resources
No market presence or reputation
Suitable economic location
Vulnerable to vital staff being sick,
Favorable access to distribution networks
Market for the product increases
High standards with regards to
Large untapped market
Competitors have strong relationship with
Wide range of market in different
May have an environmental impact
One of the pioneering corporations in the
Table 2.16 SWOT Analysis