A marketing research study of a Laundry Shop business with pickup and delivery services in Angeles City, Philippines

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HOLY ANGEL UNIVERSITY
SCHOOL OF ENGINEERING AND ARCHITECTURE
DEPARTMENT OF INDUSTRIAL ENGINEERING
REVISED MARKETING TERM PROJECT
Submitted by:
Yutuc, Angelo T.
Miranda, Jolyna Kae R.
Mutuc, Kathlyn B.
Submitted to:
Engr. Kim Serrano
03 - 21 – 2017

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COMPANY PROFILE: LA VADA CO.
I. COMPANY BACKGROUND
To accommodate the laundry services of the growing population of Angeles City, three
college students have decided to put up a laundry business that not only offers washing
of clothes,but also picking-up the unwashed articlesfrom the client’s location or place of
residence, cleaning them in our laundry shop with the best mix of customized and
standard services, and delivering the freshly-cleaned articles back to the customer’s
place.
The idea sprouted as an answer to the proprietor’s own demands - a convenient way of
gettingtheir clotheswashed that isfree from the hasslesof commute and traffic qne from
carrying loads of clothing to and from any laundry shops.
In 2017, Jolyna Miranda, Angelo Yutuc and Kathlyn Mutuc established La Vada Co. - a
laundry service that let’s you take care of your lives while it takes care of your clothes.
II. MARKETING PLAN
1. Product Description:
La Vada Co. offers convenience by cleaning the customer’s clothing articles while also
takingcare of the transport of said articles. Aside from the typical servicesthat a cleaning
shop offers, the business introduces their customers to a new option of call-in, on-
demand service. La Vada Co. offers laundry, press and fold and dry clean.

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2. Uses Of The Product
The main purpose of the service is to offer cleaning, pressing and folding of clothing
articlesand other fabric/garmentsincludingbeddings.
3. Target Market
La Vada Co. intends to serve all people within Angeles City mainly those that are
occupying apartment spaces and dormitories. These customers usually do not have
sufficient time and enough space in their place to accomplish their laundry and to dry
them.
There is no specific age requirement due to the nature of the service which is a needs-
based cateringall ages.The minimum requirement iscapacitytopay and use the service
as well as accessibility of location applicable to pickup and delivery services.
Young professionals who are too active and busy typically have a filled schedule,
students of colleges and universities as well as residents are also part of the target
market. Angeles City is a metropolitan area of almost four hundred thousand residents
and where people from all over the region flock for work and studies, these same
individuals typically do not have the luxury of time and resources to get their laundry
doe by themselves, thus, La Vada Co. is here to serve them.

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a. Angeles City Population
The 2015 Censusof population bythe Philippine StatisticsAuthority[PSA]registered
the following values:
Table 3. Population by Province/Highly Urbanized City:
Region III - Central Luzon
(Based on the 2000, 2010, and 2015 Censuses)
Province/Highly Urbanized City
Population (in thousands)
2000 2010 2015
Aurora 174 201 214
Bataan 558 687 761
Bulacan 2,234 2,924 3,292
Nueva Ecija 1,660 1,955 2,151
Pampanga (excluding Angeles City) 1,615 2,014 2,198
Angeles City 268 326 408
Tarlac 1.069 1,273 1,366
Zambales (excluding Olongapo City) 434 534 591
Olongapo City 194 221 233
b. Projecting 2016 Population
Based on the 2% population growth rate, a 2016 population was computed as:
(2015 Population)*(Growth Rate)
(408,885)*(1.2) = 417,063
Therefore, the target market population (N) to be used for this marketing
research is the projected population for 2016 of 417,063

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c. Marketing Strategy:
No other laundry shop business within Angeles City yet offers delivery and pick-up
service. The idea is inspired by services that already offers this solution such a water
refilling stations and gas delivery services. One of the marketing strategy is to offer
pickup and deliveryservice. Not only does it offer convenience but it also allows greater
exposure for the business. Whenever a delivery personnel roam the streets and
highways of Angeles City bearing the company’s name and logo, marketing via
advertisement isestablished. Additional service feature includesoffering customers the
choice of their own detergent soap and fabric conditioner instead of sticking with the
usual laundry soaps majority of the shops within the market area use.
4. Demand Modeling
Demand Modeling shows the factors of how we came up with our chosen target markets.
We chose Region 3 in the Province of Pampanga specifically in Angeles City as our
target market place because we are currentlylivinghere, therefore it won’t be hard for us
to travel from another place just to build the business that won’t be ideal for a starting
business like ours. But someday maybe, if we became successful we will consider
branching out of town.
Segmentation:
 People in the residential areaswhoearnsgreater than or equal to 300k annually, and
also the people in commercial areas who are currently living in dormitories or
apartments,can be employed, studentsor familyasour target population because we
think these people are the ones who most likely to avail laundry services like the
service that our proposed business will offer.

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 Fluff and Fold is the main service that offered. In this service clothes are picked
directlyfrom a customer’s home and delivered backtothem after cleaningand drying
them then folded nicely. The three competitorsthat considered are those that offered
dry cleaning, in which clothes are cleaned with a chemical solvent rather than water,
next is the Laundromat which is a machine-system based on front-loading washer
instead of top-loader so that if you are about to dry your clothes less energy will be
consumed. Lastlythose that offer in-house laundry where they will sent someone to
a client to offer laundry service or can also be a maid.
 StarbizHub (2014)reportsthat laundrycare generated positive currentvalue growth
in 2015, although at a slower pace than during2014. The growth potential of laundry
businessremainslimited asincreasingnumbersofconsumershave started to shift to
more effective ways. The rising sophistication of Philippine consumers and rising
education levels among the country’s population remained among the key
contributorsto the increased willingnessto try out new ways or products in laundry
service. Risingenvironmental concerns also saw Filipinosbecomingmore interested
in the various different types of laundry care products, with some moving towards
concentrated detergents as a more environmentally friendly option.
 Self-service facilities,wash-and-fold service and drycleaningbusinessesare typically
family-owned and operated, though there are some bigger chains. There are
approximately33,000 businessesin the segment with revenue ofabout $11 billion in
2015. Dry cleaning businesses have suffered in recent years as clothing has become
easier to care for but some innovative models and specialty offering such as green
cleaning are showing promising growth.

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ServiceFactors:
Laundry soap and fabric conditioner:
 We will assess what variety of laundry soaps and fabric conditioners are
customersup to. Thisis to set a particular range ofchoice that our customerscan
choose from as a way of attracting brand-loyal customers.
 Included in the survey is the customer’s perception of quality attributes each
brand has for them. This will be in a form of ordinal ranking (e.g. first to fifth)
when it comes to fragrance, whitening, color care, etc. we noticed that different
client perceivesqualitydifferently, so knowing the majorityof usersinclined to a
certain product attribute will give us a better idea which brands to include.
How clothes are tendered:
 This is to know if customers prefer getting their unwashed clothes picked-up
from their location such as dormitories, apartments, household, office, etc. at a
certain fee as opposed to commuting them to shop. This also includes knowing
whether customers also prefer delivering the washed clothes or articles to their
dormitories, apartments, household, and office at a certain fee.
 Or whether theyprefer walk-in place (ifa convincingnumber of majoritychooses
this, the choice of location for the business will be impacted to accommodate
shorter commute).
Options for Rushed Service
 Some people want their laundry done quickly, such as students who go home on
weekends and return on Monday and want their clothes ready right away. We
would like to assess via survey what fractions of the potential customer
population are willingtopayextra for an overnight or over-the weekend- laundry
at a certain fee.

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Promotion Factors:
 We will ask survey participants what media of information they are most likely to
utilize- social media, radio announcement/advertisements, regional or local TV
network, bannersand billboards, pamphletsor leaflets, SMSmessagingand othersto
see how we can penetrate further in promotions.
 We will engage the participants in choosing the best catchphrase among a list of
choices to see what the majority prefers. This is important because the more people
appreciate the catchphrase then the better our business is remembered and
associated with their laundry needs.
Place Factors:
 The location aspect will be tied with how participants want tender and receive the
laundry. If a convincing majority prefers walking-in, then we will select a location
closest to the most universitiesand residence to be more accessible but will need to
invest more on other factors. We would like to ask participants if the settings
(cleanliness, aesthetics, etc.) affect their choice of laundry shop (for walk-in
customers).
Pricing Factors:
 We will include in the surveywhether participantsare willingtospend more on other
services such as delivery, pickup and customized laundryproducts such as soap and
fabric conditioner. Included in the survey is whether customers are interested in
package-deals and discount so they can save up money especially if they are
repeat/frequent customers. Thisincludesa monthlyor annual standard fee sothat all
their pick-upsand/or deliveryfees are waived (like a service plan). Thisway, theyno
longer need to pay a certain fee every time they want their laundry picked up and
delivered.

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Survey Questions Explanations
With less time to do chores as a way of maximizingour time, effort and convenience, on-
demand are on the rise. With a few questionsbelow, please let us know your thoughts
about services that are on-demand such as laundryshop:
1. Which do you prefer, washing your own clothes or taking them to a laundry
shop?
- We will attempt to discover if our service hasa market in the area, and how bigthe
market will be.
- We aim to get as much laundryshop choices because it means we have a greater
chance to grab demands.
2. Do you find commuting around Angeles City convenient?
- This question aimsto know what fraction of the population finds commuting
inconvenient and mayopt a pickup and deliveryservice.
- If the answer is yes, we can position our pickup and deliveryservice as a solution to
inconveniencesexperienced duringwalk-ins.
3. If you are a laundry shop customer, do you plan in switching to another shop if
you are offered a pickup and delivery service?
- We want to establish an understandingofcustomer’s potential to direct their business
to us.
- Yes answersare anticipated because it meanswe have a chance to penetrate the
competition.
4. Do you frequently utilize online/SMS to make orders?

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- This question will help determine the mode of transactionsour potential customer
prefer, and how we will receive their ordersto pick-up and deliver their laundry.
- If the majorityanswer “yes”, it meanswe can utilize available online or SMS modes of
communication to interact with customers. This will allow faster response from us and
quicker feedbackfrom them.
5. Do you prefer receiving notifications like SMS, when your laundry is about to be
delivered?
- To factor inconvenience, we want to know how to notify customer that we are on our
way or outside their door when makinga deliveryor pickup.
- If the answer is yes, we can make better time management plan tosave wait time.
6. Which do you prefer: cash-on-delivery or pay-upfront?
- We wanted to know the payment method our potential customer prefer.
- Either result is acceptable but somehow will help usto decide what payment are to be
offered.

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SURVEY RESULTS
WILING TO AVAIL A LAUNDRY SHOP WITH DELIVERY AND PICK-UP SERVICE
Income/Allowance Range
Row Labels
No 27
375 to 1000 per day 2
greater than 1000 pesos per day 17
Minimum wage 375 pesos/day or less 8
Yes 455
(blank) 19
375 to 1000 pesos per day 100
greater than 1000 pesos per day 138
Minimum wage 375 pesos/day or less 198
Grand Total 482
Owns a personal vehicle or Family vehicle
Row Labels
No 27
Yes 455
Grand Total 482

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Place of Residence
No 27
(blank) 2
Amsic 5
Capaya 2
Clark 2
Cutud 2
HAU 4
L&SSubdivision 4
Pandan 2
Sapalibutad 2
Sto. Rosario 2
Yes 455
(blank) 19
Angelescity 2
Anunas 2
Bagong Silang 2
Balibago 8
Clark 23
Clark Field 1
Clarkview 2
Claro M Recto 2
Cuayan 2
Cutcut 10

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Cutud 32
DecaClark Residence & Resort 2
Essel Park 2
HAU 36
Holy Angel Village 1
L&SSubdivision 2
Lourdessur 2
Mabalacat City 1
Malabanias 3
Maligaya 2
Mangga 2
Margot 9
Marisol 15
Mining 6
Near SM 2
Nouveau 4
Pampang 10
Pandan 8
PulungCacutud 44
PulungMaragul 17
Pulungbulu 6
Punta Verde 8
Salapungan 4
Sameerah 8

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San jose 4
San nicolas 2
Santo Domingo 2
Sapalibutad 112
Sm Clark 2
Sta teresita 6
Sto rosario 3
Sto. Domingo 2
Sto. Rosario 16
sunset valley homes 2
Tabun 2
Villa Angela 2
Villa Gloria 1
Grand Total 482
Rating On Angeles City Traffic
No 27
Satisfactory 11
Unsatisfactory 16
Yes 455
Satisfactory 94
Unsatisfactory 359
Grand Total 482

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Status
No 27
Employed 13
other 2
Owns a business 6
Student 6
Yes 455
(blank) 2
Employed 183
other 30
Owns a business 64
Pensioner 2
Retired 1
Student 173
Grand Total 482
How Clothes are washed
No 27
I payothers to wash them for me 15
I wash them by myself 12
Yes 455
I payothers to wash them for me 120
I wash them by myself 335
Grand Total 482

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Payment Preferences
No 27
Pay after the service is rendered 17
Pay right upfront 10
Yes 455
Pay after the service is rendered 231
Pay right upfront 224
Grand Total 482
Willing to avail a laundry shop with delivery and pick-up service
Row Labels
No 27
Yes 455
Grand Total 482

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5. DEMAND ANALYSIS
a. Computation of Sample Size:
Target Population: Angeles City
2015 Census of Population retrieved from PSA.gov.ph
Angeles City = 408,885
Based on the 2% population growth rate, a 2016 population was computed as:
(408,885)*(1.2) = 417,063
b. Sample Population:
N = Population
n = sample
e = margin of error
Slovin’s Formula:
n = N / 1 + (N)(𝑒2
)
n = 417,063 / 1 + (417,063)(𝟎. 𝟎𝟓) 𝟐
n = 400
c. The sample size is computed to be 400 survey participants.

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d. Best Case Scenario Demand Analysis
Survey on willingness to avail a laundry shop with pickup and delivery service
 Willing 455
 Not Willing 27
 Total Respondents 482
Based on the survey, 94.39% expressed willingness to avail the service, while
5.6% did not show interest.
Best case scenario Willing to avail the service
Demand 94.39% of population or 393,667 persons
e. Worst Case Scenario Demand Analysis
Survey on how clothes are washed
 Pay others to wash 285
 Wash bythemselves 197
 Total Respondents 482
Only 62.33% are willing to pay others to wash their clothes with pay, while 37.37% are
more into washing their clothes by themselves.
Demand - 62.63%of population or 246,554
f. Best Versus Worst Case Scenario:
Best 393,667
Worst 246,554
Difference 147,113

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6. SUPPLY ANALYSIS
Daily Sales Average = S (Price/Kilo * kilo/customer/day* customers/day)
= (29 * 9 * 22) = Php. 5,959.59
Annual Sales = Daily Sales* 52 weeks * 5.5
= (5,959.59 * 52 * 5.5) = Php. 1,600,338.74
7. DEMAND VERSUS SUPPLY ANALYSIS
TYPE DEMAND SUPPLY GAP (Unsatisfied Customers)
BCS 3,543,003 1,600,338.74 1,942,665
WCS 2,218,986 1,600,338.74 618,648
Difference 1,342,017
LaundryShop
PricePerKilo
Customersperday
Kilospercustomer
Laundry
DryClean
PressandFold
Soap/Detergent
PreferredBrand
FabricConditioner
PreferredBrand
Soak and Relax 28 25 6 1 2 3 No - No -
Breeze Laundry Shop 28 20 8 1 2 3 No - Yes Downey
FB Cloth and Brakers 30 20 10 1 2 3 No - No -
Big Bubbles 27 30 20 1 2 3 No - No -
Biscuits 27 15 10 1 3 2 No - No -
Unfold 28 15 5 1 2 3 No - No -
Sto. Rosario 30 10 5 1 2 3 No - No -
French Self Service 34 10 7 1 2 3 Yes Surf Yes Surf
Laundry Sure 27 50 12 1 2 3 No - Yes Downey
Comfy and Warm 27 20 8 1 2 3 No - No -
AVERAGE 29 22 9 1 2 3 No Surf No Downey

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PORTER’S FIVE FORCES MODEL
In any industry, five competitive forces dictate the
rules of competition. Together, these five forces
determine industry attractiveness and profitability,
which managers assess using these five factors:
1. THREAT OF NEW ENTRANTS. How likely it is that new competitors will come into the
industry?
 Money is essential in startinga business.In the laundryservices, capital of about
Php. 500,000 and higher is often required to purchase equipment/machines
necessary for the laundry operation and in purchasing or leasing office and
operation space. This amount is relatively high for most start-up.
 Unlike other services or brands, there is no specific shop that dominates the
laundry services, especially in Angeles City.
 Per the Mayor’s Office - BusinessPermit Division, there are norestrictionson how
many laundry shops can be established in certain areas. Thus, a start-up can
sprout anywhere in the city. As with other business, only the necessary permits
are required and there are no other special permits or merits to apply for.
2. THREAT OF SUBSTITUTES. How likely is it that other industries’ products can be
substituted for our industry’s products?
 Customerstypicallygo to the laundryshops nearest them and do not necessarily
consider a specific shop. Therefore, a shop that ismore strategicallylocated is on
the advantage.

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 Majority of laundry shops offer the same services and use non-commercial
detergent brands, which reduces variety in services offered. Most shops do not
have a specific identity which makes it likely for customers to try new shops
 There is no strong market leader in the laundryservices in AngelesCity that can
impose retaliation on small or start-up shops.
 Customers can switch with ease to start-ups because there are no special tie-up
or membership with Laundry shops
3. BARGAINING POWER OF BUYERS. How much bargaining power do buyers (customers)
have?
 Most customers are individuals, so there is no direct buyer influence in terms of
price. This means there are no “powerful” customers who can dictate the prices
of the services offered.
 Most students and employed individuals who rent space in Angeles City avail of
laundry services for convenience.
 Switching to other laundry shops is not complicated or costly.
 Customers can wash their clothes by themselves, or take it home so a family
member or relative can wash them up. Therefore, if the price is too high or is
considered unreasonable, they may as well not avail the service.
4. BARGAINING POWER OF SUPPLIERS. How much bargaining power do suppliers have?
 There is a wide array of supplier of materialsnecessaryfor the laundrybusiness
operation. If the current supplier demandsa higher charge in their materials, it is
easier to find a substitute or other supplier.
 It is possible to engage in tie-upswith providersto ensure stabilityin prices and
supply.

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 Angeles City has many supermarkets and specialty stores that sell laundry
products as well as laundry equipment. If there are issues or concerns, it is easy
to just go to these locations to purchase the needed supplies.
5. CURRENT RIVALRY. How intense is the rivalry among current industry competitors?
 Customerstypicallygo to the laundryshops nearest them and do not necessarily
consider a specific shop. Therefore, a shop that ismore strategicallylocated is on
the advantage.
 Majority of laundry shops offer the same services and use non-commercial
detergent brands, which reduces variety in services offered. Most shops do not
have a specific identity which makes it likely for customers to try new shops
 There is no strong market leader in the laundryservices in AngelesCity that can
impose retaliation on small or start-up shops.
 Customers can switch with ease to start-ups because there are no special tie-up
or membership with Laundry shops

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8. QUALITATIVE FACTORS AFFECTING DEMAND AND SUPPLY
1. Demographic Environment
Demographic Environment relates to the human population with reference to its size,
education, sex ratio, age, occupation, income, status etc. Business deals with people so
they have to study in detail the various components of demographic environment.
Demographic environment differs from country to country. Demographic factors like
size of the population, age composition, densityof population, rural-urban distribution,
family size, income level, status etc. have significant implications on business.
For example: If the population is large, then the demand for goods and services will be
more. It will have favorable effect on the business. In the same way educational level is
also an important factor affecting business.
2. Economic Environment
Economic factors can have both positive and negative impacts on the clothing industry.
During economic boom periods, people have more disposable income. Hence, theymay
buy more clothing, increasing sales for clothing manufacturers, wholesalers and
retailers. However, recessions have the opposite effect. Sales for these various clothing
entities may be significantly lower. Consequently, retailers may be stuck with large
amounts of inventory. And they may have to sell the clothing at substantially reduced
prices. Clothingmanufacturersand retailersmayalso need to sell lower-priced clothing
brandsto compete with more genericbrands. Consumersoften shop for cheaper brands
when they have less disposable income.

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3. Natural Environment
Resource availability like land, water and mineral is the fundamental factor in the
development of business organization. It includes natural resources, weather, climatic
conditions, port facilities, topographical factors such as soil, sea, rivers, rainfall etc.
Every business unit must look for these factors before choosing the location for their
business.
The natural environment largely determinesthe functioning of a business firm. Natural
environment has a great influence on the working of a business. The business
organization should consider the natural factors before starting their operations.
Natural calamitieslike flood, drought, cyclone, Tsunami etc. can also affect the business
environment.
4. Technological Environment
Technology has brought about far reaching changes in the methods of production,
quality of goods, productivity, and packaging. There is a constant technological
development-taking place.
The business firm must constantly monitor the changes in the technological
environment, which may have a considerable impact on the workingof a business.It also
indicates the pace of research and development and progress made in introducing
modern technology in production.
Technology provides capital intensive but cost effective alternative to traditional labor-
intensive methods. In a competitive business environment technology is the key to
development. Technology helps to run the business better and faster

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5. Political Environment
A number of legal and political macro environmental factors affect small businesses in
the clothing industry. The industry has repeatedly been affected by issues such as
workers' rights and child labor laws. Union workers in clothing manufacturing plants
may picket their employers, especially if their wages or medical benefits are less
favorable than workers in comparable industries. Workers picketing their clothing
employersimpactsproduction. Thiscan cause delaysfor retailersin gettingspringor fall
fashions on time. Activists who are not employed by the companies may also picket
retailerswhopurchase clothingfrom countriesknown for violatingchild labor laws. This
negative publicity may impact a small clothing retailers' sales and profits. Also, a trade
embargo against another company's imports would force clothing wholesalers to find
different suppliers.
6. Socio-Cultural Environment
Culture involves knowledge, values, belief, morals, laws, customs, traditionsetc. Culture
passes from one generation to another through institutions like family, schools, and
colleges. Business is an integral part of the social system.
Society is largely influenced by the culture and in turn culture influence the business
firm. Culture shapesthe attitude and behavior of the society. Any change in the cultural
factor affects the business in large. Business should be organized and governed, taking
into consideration various values and norms of the society.

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9. MARKETING PROGRAM
a. Product Decision
Product Mix
The product mix will include common services offered by most laundry shops –
wash, press, fold, dry clean. Various types of washable articles such as clothing,
bedding, jeans, curtains and other wearable will be catered.
Product Feature
The laundryservice offers water-based wash, water-soluble detergent soapsand
fabric conditioner. Due to cost measures, the business will not utilize organic
materials instead commercially available products
Branding
The Company Logo is derived from the
initials of the proprietors – MYM for
Mutuc, Yutuc and Miranda.
The color choice is blue which
symbolizes our most important
resource – water. It is also premium
color typically associated with
cleanliness. The gold color is a symbol
of high standards and quality, just like gold metal that is valued pristinely.

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Product Logo – The product logo has symbols that can easilybe associated with laundry
services –wash machine and bubbles. The wash machine in clip art form makes it appear
friendly and simple, the bubbles suggest cleanliness and fragrance. The font style is a
playful Footlight MT Light in pink to appeal to the caring side of the viewers.
Quality Level
The qualitylevel will be assessed by imposing checklist and start of dayinspection. Since
laundrybusiness dealswith cleanlinessand our brand promise is to free our customer’s
clothes from dirt and stain, we want to ensure that the business itself adheresto quality
standards,
Auxiliary Services
Lost or damaged clothingarticle will be replaced or paid aslongastheyare declared upon
tender to the shop or to our pickup and delivery personnel. Clothes that are not
thoroughly cleansed will be washed at no extra cost to the customer.

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b. Pricing Decision
Pricing Objective
The pricing objective is to maximize profit, thus; the unsatisfied demand based
on the demand versus supply analysis will be used as the basis for the pricing
computation. The objective is to secure profit and achieve a reasonable payback
period. With a maximized profit, the company can secure expansion and future
investment.
Pricing Procedure
DemandBased on the demand versussupplyanalysis, the unsatisfied demand is
147, 113.
FIXED COSTS
TYPE UNIT COST
PRODUCT
LIFE
DEPRECIATION
COST TOTAL
Commercial Space
80
sq.m. 25,000 25000
Machines and Equipment 8 13958.34
Industrial Wash Machine 3
15000
0 8 years 1562.5 1562.5
Tumble Drier Cup 2 40000 8 years 416.67 416.67
Vacuum Press 2 30000 8 years 312.5 312.5
Steam Generator 1 10000 5 years 166.67 166.67
Installation Cost (5% of machine
price) 11500 11500
Personnel 50000
Manager 1 15000 15000
Skilled/Office Worker 1 9000 9000
Semi-skiled Worker 3 19500 19500
Driver 1 6500 6500
Utilities Expense 30000
Electricity 25000 25000
Maintenance (Facility,Equipment) 5000 5000
Office Supplies 5000 5000
Vehicle and Transportation 1
74400
0 4133 4133
Fuel 3000 3000
TOTAL FIXED COST Php. 128,091.34

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VARIABLE COST
Type Unit Price (Pesos) Cost (Pesos)
Powder Detergent 290.4 per kilo 50 14520
Fabric Conditioner 290.4 per liter 110 31944
Packaging 435.6 per piece 5 2178
Water 143.748 per cubic meter 48 6899.904
Total Variable Cost Php. 55,541.90
FIXED COST = 128,091.34
VARIABLE COST = 55,541.90/4356* = 12.75per kilo
*average kilo of laundry per month
UNIT SALES = 1,342,017/12 = 111,835 kilo
Unit Cost = VS + FC/US = 12.75 + 128,091.34/111,835
= 13.895 Pesos per kilo
Markup Price
10% = 13.895 / (1-0.10)
= 15.439 Pesos per kilo
20% = 13.895 / (1-0.2)
= 17.3692 Pesos per kilo
30% = 13.895 / (1-0.3)
=19.8505 Pesos per Kilo

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c. Projected Prices
The past 5 year time period price per kilo of laundry service is estimated
based from survey on laundry shops:
Year Price Per Kilo
2016 30
2015 29
2014 27
2013 25
2012 23
There is an upward trend in the prices per kilo of laundry, thus, linear
trend equation shall be used:
Time Period (T) Price (Y ) TY 𝑻 𝟐
5 30 150 25
4 29 116 16
3 27 81 9
2 25 50 4
1 23 23 1
15 134 420 55
b =
= 𝑛 𝑇𝑌 – ( 𝑇)(  𝑇)
𝑛( 𝑇2)−( 𝑇)2
b =
(5)(420) – (15)( 134)
5(55)−(15)2
b = 1.8
a=
=  𝑌 – 𝑏 𝑇
𝑛
a =
134−(1.8)(15)
5
a = 21.4

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Forecast (Year6) = a +bT
Forecast (2017) = 32.2 Pesos per Kilo
Forecast (2018) = 34.0 Pesos per kilo
Forecast (2019) = 35.8 Pesos per kilo
Forecast (2020) = 37.6 Pesos per kilo
Forecast (2021) = 39.4 Pesos per kilo
d. Comparison of Prices
LAUNDRY SHOP PRICE PER KILO
Soak and Relax 28
Breeze Laundry Shop 28
FB Cloth and Brakers 30
Big Bubbles 27
Biscuits 27
Unfold 28
Sto. Rosario 30
French Self Service 34
Laundry Sure 27
Comfy and Warm 27

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10.DISTRIBUTION STRATEGIES
MARKETING CHANNELS
The four (4) steps in designing a Marketing Channel System include: (1) analysing customer
needs, (2.) establishing channel objectives, (3.) identifying major channel alternatives and (4.)
evaluating major channel alternatives.
1. Analyzing Customer Needs
Angeles City laundry services customers were assessed in various preferences:
price, product assortment, and convenience.
1.1. Price: Based on our survey (n=400), majority of the respondents are willing to pay
additional fees for better laundry services. This is specifically true among the surveyed
Income Segment-3 (300,000 Pesos or higher annually) who are typically employed
residents/renters.With thisinformation, we can conclude most customersare not price
sensitive as long as they get the right quality for their money.
Competitive advantage of La Vada Co.: The average service price per kilo among
surveyed laundryshop competitors within AngelesCityis Php. 29.00, while our offering
based on pricing computation ranges from Php. 25.58 to Php. 28.78.
1.2. Product Assortment: Laundry services customers prefer a one-stop shop for all their
laundry needs (dry clean, wash services for clothes and blankets, fluff and fold).
Therefore, offering a wide varietyof laundryservicesallowsmore customerswith better
option.

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1.3. Convenience: Based on the estimate ofAngelesCityMayor’sOffice – Local BusinessUnit,
unsuccessful laundry shops are those situated in areas not typically accessible by mass
publictransportation. Thus,the more strategically-located and more accessible the shop
is, the more convenient it becomes for customers. Since laundry is done every certain
period such asweekly or monthly, customerswould not want to carry with them kilos of
clothingin longwalks.This explainswhya laundryshop situated nearest the road where
public transportation passes is most likely to attract more customers.
1.4. Category Of Laundry Shop Buyers
Laundry shop customers are typically high value deal seekers based on our interview
with local shops. They would ask about discounts and other ways to make the most out
of the services they pay.
2. Establishing Channel Objectives
One unique feature of La Vada Co. is the utilization of shop-to-door, door-to-shop
delivery and pickup channel. The goal is to give a service offering that will improve
customer satisfaction byremovingor reducingthe need tocarrytheir laundrytoand from
the laundry shop, La Vada Co. will take care of it for them.
 Based on our survey (n=400), 77.8% rated Angeles City traffic as
unsatisfactory
 Thus, promoting a pick-up and delivery service is a major decision
breaker for customers in choosing which shop they should entrust their
laundries to.

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3. Identifying Major Channel Alternatives
La Vada Co. will utilize two types of consumer marketing channels:
3.1. 0 LEVEL – Customers take their laundries to the physical shop
3.2. 1 LEVEL – Customersschedule a pick-up for their laundryfrom home (door-to-shop).
Once the service is rendered, the laundryshop notifies the customer about the delivery
of the freshly cleaned laundry (shop-to-door)
4. Evaluating Major Channel Alternatives
4.1. Due to the nature of the business,La Vada Co. is limited to the choices of intermediaries.
One possible solution is to tap establishments (e.g. dormitories) to cater their laundry
needs. Otherwise, the service is delivered straight to the customer.
La Vada Co.
Customers
La Vada Co.
Customers

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DEVELOPING EFFECTIVE COMMUNICATIONS
1. IDENTIFYING THE TARGET AUDIENCE
1.1. Target Segment Profile:
 Age & Gender. Although there is no age bracket for laundry shop customers, the
target audiencesare likely 18 and older because this age range is when a person has
the financial capacity to purchase laundryservices. Females, especiallymothers, are
inclined to take care of the laundry. A study by the American Wash Society in 2010
revealed that 72% of laundry customers are female.
 Income Range – Audiencesbelonging to Income Segment 3 (>300,000/annually)of
the target population are more likely to avail the service due to stronger purchasing
power. These people are either business owners or regular employees who would
rather have their laundries done by someone else versus taking their own time in
their off days for laundry purposes.
 Residence – Customers residing in Angeles City, including students and employees
who rent spaces in Angeles City, are all audiences.
 Competitor’s Customers – Customers of other laundry shops are also part of the
audience. Since these people alreadyavail laundryservices, it is advantageousif they
decide to switch to La Vada Co. Based on our survey:
o 9 out of 10 laundryshopsdonot let the customer todecide the type oflaundry
soap and fabric to be used in washing their articles.
o 10 of 10 shops do not offer delivery and pick-up services.

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2. DETERMINING THE COMMUNICATION OBJECTIVES
2.1. Category Need – Washing clothes is already considered a basic need. With the
proliferation of affordable and high-quality laundry products, practically anyone can
wash their own clothes. La Vada Co. will position its services as a need by:
 Highlighting that using our laundry service will give customers time for other
chores such as to attend an event, watch a nice movie or read a book rather than
tiring themselves in washing their clothes.
 The cost of washingtheir own clothes maybe greater than purchasing La Vada Co.’s
services because they have to account water consumption, electricity (if using
washing machine and drier), detergent soaps, fabric conditioner.
To position the pickup and delivery services aka door-to-shop and shop-to-door b
service as a need, La Vada Co. will highlight that AngelesCity’s traffic duringpeak hours
can make travelling very inconvenient. Also, instead of getting stuck in traffic, they may
instead avail of our delivery and pick-up service to save time, money and effort.
1.1. Purchase Intention - Delivery and pick-up services can be made free if a customer has
15 kilos and up worth of clothingarticles. Thiscan help encourage customerstotake more
kilos to the shop.
1.2. Brand Awareness – To enhance brand awareness, the business will deviate away from
the typical shop designs of most laundry shops such as cozier waiting area for walk-in
customers, delivery and pick-up vehicle with the product logo and leaflets attached or
taped on the plastic packaging of washed clothes.
1.3. Brand Attitude – Positively oriented: assurance of clean water in washingtheir clothes
and helpful and friendlystaffthat will greet them upon enteringthe establishment aswell
as when making pick-up and deliveriesfor door customers. Negatively oriented: traffic

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in Angelescitycould be prevented byavailingthe deliveryandpick-up service. Time spent
in washing their clothes can instead be devoted to other fruitful, productive tasks.
2. DESIGN THE COMMUNICATIONS
2.1. Message Strategy – Service performance will be highlighted. For example: offering a
variety of laundry detergents and fabric conditioners will enhance the results-in-use
experience impression of those who have specific product choices, which will eventually
lead them to try la Vada Co.’s service.
2.2. Message Source – Because La Vada Co. is still a start-up businessand investingto a high-
profile celebrity or influencer may seem too costly, the representation of the brand will
be delivered via the image of a mother. Traditionally, mothersare the housekeepersand
the primaryteachersof household tasks. Therefore, advertisementsbearinga person will
have the character of a neat clothes-loving mother (mother-like) to build trust and
comfort.
2.3. Creative Strategy – The use of clothes hangers, wash machines and bubbles in
advertising and promotions will relate the business to the nature of services. Hanging
posters bearingthe businessname and contact information in hangers, for example, will
make a viewer think of his or her laundry.
3. SELECTING THE COMMUNICATION CHANNELS –
3.1. Personal Communication Channels – Staff of the laundryshop, especiallythe receiving
clerk and the deliveryand pickup personnel will establish personal communication every
time they interact with customers. They need to appear neat and fresh just as how the
business wants to be known for.

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3.2. Mass Communication Channels – Focusingmore on print adssuch asleaflets, pamphlets
and billboards that people can easily keep or look at. Call cards will also be distributed
bearingthe business’ name and number. They may keep them in their walletsfor future
use.
4. ESTABLISHING THE TOTAL MARKETING COMMUNICATIONS BUDGET
The ultimate goal of La Vada Co. is to serve the unsatisfied demand based on our supplyversus
demand computation which means to maximize the profit. However in our Porter’s Five Forces
scale, we registered a moderate to high risk from the five categories. Therefore, to achieve the
goal, the marketing communications must be intensified.
4.1. Competitive Parity Method – The top competition based on our surveyis Laundry Sure
that serves 50 customer per day at 12 kilos per customer, or 60 kilos of laundryper day.
Because of their location in Sto. Entierro Road, theyhave secured a spot to advertise their
brand where other businesswould typicallypay extra for an ad space. By targetingside-
road advertising, we will reach more viewers and potential customers.
4.2. Percentage Of Sales – As a startup, it is important that the flow of funds must be
controlled while also the marketing budget should not be taken for granted. One way to
secure a better marketingbudget is to allot 15% of salesto marketingon the first month,
12% on the second month and 10% fixed up to ROI.

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5. DECIDE MEDIA MIX
5.1. ADVERTISING
5.1.1.1. PARTNERSHIPS AND SPONSORSHIPS
5.1.1.1.1. Sponsorship
Communityservice and engagement isa prime factor in winningthe community’s
hearts.Partneringwith government and non-government organizations(NGO)in
their effort to help the community can be done while also promoting the brand:
 DSWD – The Department of Social Welfare and Development Angeles
City Division actively assists in the civic affairs in the city. Clothing
donations are typically distributed to homeless or those who evacuated
due to weather conditions. By offering to wash the clothingdonations for
free, a sense of community service is extended to both the government
agency and to the recipients of the cause.
 Teen Information Center (TIP) – This unit helpsteenage population by
educating them about sex education, guidance counseling, arts and
recreation and more. One of their costs is in keeping their laundry and
beddings clean. La Vada Co. can help out by sponsoring their laundry
services needs.
5.1.1.1.2. Promotional Partnership
Partnership with leading laundry detergent and fabric conditioner sellers including
supermarkets, grocery stores, and department stores will be established.

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In an interview with Johnny’s Supermarket located in Balibago, Angeles City, the
management is open to put signages and posters in their laundry supplies isle to
promote laundry shops in exchange with free laundry of their employee’s work
uniform and aprons. While other shopping outlets and stores have not been asked,
the feasibilityis high because such stores and shops are go-to placesfor those within
our target market.
List of Identified supermarket and groceries for promotional partnership:
A-LINE SUPERMARKET
Mc Arthur Hwy Balibago Angeles
City, Pampanga , Philippines
ANGELES FILIPINO ENTERPRISES
Rizal Street, San Nicolas, Angeles
City, Pampanga, Philippines
BALIBAGO SUPERMARKET
Balibago, Angeles City, Pampanga,
Philippines
ESSELSUPERMARKET
McArthur Hiway, Angeles City,
Pampanga, Philippines
EUNICIA GENERAL MCDSE.
Apu Mart, Angeles City, Pampanga,
Philippines
FREEWAY COMMERCIAL
Luna St., Angeles City, Pampanga,
Philippines
JC SUPERMARKET
1611 Jesus St., Angeles City,
Pampanga, Philippines
JENRA SUPERMARKET
6014 Jesus St. Angeles City,
Pampanga, Philippines
JUMBO JENRA SUPERMARKET
Jesus St., Agapito del Rosario,
Angeles City, Pampanga, Philippines
SOSES MARKETING ENTERPRISES
Rizal Ext, Angeles City, Pampanga,
Philippines

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5.1.1.2. PRINT ADS – Various visual advertising method will be used to create
awareness among audiences within the target market.
TYPE PROVIDER UNIT COST AUDIENCE
Tarpaulin VCreative Prints 10 pcs. at 200 Pesos 2000 no data
Leaflets VCreative Prints 5000 pcs @ 0.50 Pesos 2500 5000
Business Card VCreative Prints 2000 pcs. @ 1 Peso 2000 2000
Calendar (single) Grapus Media 1000 pcs. @ 7.5 Pesos 7500 5000
Pen holder Grapus Media 1000 pcs. @ 7.5 Pesos 7500 7500
Printed Handkerchief VDesigns 1000 pcs @ 10 Pesos 10000 7500
Fabric Fan VCreative Prints 2000 pcs @ 5 Pesos 10000 2000
Total Php. 41,500 approx. 29,000
Therefore, the cost per person reached of print ads is estimated to be Php. 0.69875

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5.1.1.3. SOCIAL MEDIA – In a study, a typical Filipino spends 4 hours a day in
social media. Thus, this is an important communication channel to reach out
as many audience as possible.
5.1.1.3.1. Facebook Page – One of the most accessed social media site
5.1.1.3.2. Blogs – To enhance customer engagement and sharing of user
experience.
5.1.1.3.3. Instagram – To communicate in images with potential and
current customers.
5.1.1.3.4. Twitter – Offers minute-by-minute update to audience, as well
as to communicate easily with them.
5.1.1.4. SALES PROMOTION –This method includes membership where
customers can avail discounted rate (e.g. premium members). Contest to
entice excitement among customers include awarding the customer with the
most number of kilo of laundryin a month with free 10 kilos of free laundry.
Goodwill includesfree pressand dry clean for memberswhoare on their way
to job interviewsand studentswho will undergooral defense. This intendsto
foster a friendly brand impression.
5.1.1.5. WORD OF MOUTH MARKETING – Creation of a blogspot or a facebook
page will enhance the word of mouth advertising by directly engaging users
and would-be consumers in chats threads.

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PRINT ADS
POSTER/BANNER DESIGN:
CALL CARDS and LEAFLET DESIGNS
Variant 1

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Variant 2:
Variant 3:

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SOCIAL MEDIA CHANNELS:

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APPENDIX
Employed (may trabaho ) Student (Nag-aaral)
Owns a business (May negosyo ) Pensioner (pensyionado)
Not employed or attending school (hindi nagtatrabaho o nag-aaral)
2. What is your income/allowance range? (Ano ang saklaw ng iyong kita? )
Minimum Wage (Php. 357/Daily) or less. (357 Piso kada araw o mas kaunti)
Greater that Php. 360,000 annually (Higit sa Php. 360,000 kada taon )
Yes, I/my family does (Mayroon, ako o ang aking pamilya)
None, I use public transport (Wala, pampublikong transportasyon )
Unsatisfactory (Kaiga-igaya)
Satisfactory (Hindi kaiga-igaya)
I Wash them myself (Ako mismo ang naglalaba)
I pay others to wash them (Nagbabayad ako upang magpalaba )
Yes (Oo) No (hindi)
4. How do you find commuting/driving around Angeles City? (Ano ang tingin mo sa antas ng transportasyon sa siyudad ng
Angeles? )
6. If you are a laundry shop customer, would you switch to a different shop if offered a delivery and pickup service?
(Kung ikaw ay nagpapalaba, lilipat ka ba ng ibang "shop" kapag inalok ng hatid at sundo ng iyong labahi?)
7. If you answered NO in Question 6, may we know why? (Kung sumagot ka ng HINDI sa ikaanim na tanong, sa anong
dahilan?)
Name (Optional)
Panggalan
Saang lugar ka sa Syudad ng Angeles kasalukuyang nakatira?
In what part of Angeles City do currently reside?
We are 4th Year Industrial Engineering Students from Holy Angel University and would like you to take part in our
survey. This is as part of our data collection for a start-up laundry business with pick-up and delivery services. Your
participation is important and will be kept confidential. Your preferences wil help us come up with the best service
offerings anchored on needs, convenience and affordability.Thank you ang Gob bless!
Kami ay Ikaapat na baitang na mag-aaral ng Industrial Engineering mula sa Holy Angel University na nagnanais na maging parte
ka ng aming pag-aaral. Ito ay isa sa aming pagkalap ng impormasyon para sa isang panimulang negosyo ng labada na mayroong
hatid at sundong serbisyo. Ang iyong paglahok ay mahalaga at mananatiling kompidensyal. Maraming Salamat, Pagpalain ka!
1. What is your current status? (Ano ang iyong kasalukuyang estado? )
Php.357/daily to 360,000 annually (357/araw - 360,000 piso/taon)
THANK YOU! / Maraming Salamat!
Pay right away (Magbayad kaagad)
Pay after the service is rendered (Magbayad matapos ang
serbisyo )
8. How do you prefer to pay for a service? (Paano mo gustong magbayad ng serbisyo )
3. Do you have your own car/vehicle? (Mayroon kabang sariling sasakyan? )
5. How are your clothes washed? (Paano nalalabhan ang iyong damit )

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StartupBizHub, 2016 (2009, April 27). How to start a laundry pick-up and delivery service
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business.htm

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