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Marketing Strategy for Bugtag Chemical Corp

Engineer Antonio Tagorda was designated to handle marketing for Bugtag Chemical Corporation but lacks information about the marketing field, making it difficult to organize his department or determine their target market. The document outlines Antonio's problem and provides alternatives for how he could acquire necessary market information and organize his department, ultimately recommending that he hire a marketing professional to help seek out target customers through effective promotions and advertisements.

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Clarence Pascual
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388 views4 pages

Marketing Strategy for Bugtag Chemical Corp

Engineer Antonio Tagorda was designated to handle marketing for Bugtag Chemical Corporation but lacks information about the marketing field, making it difficult to organize his department or determine their target market. The document outlines Antonio's problem and provides alternatives for how he could acquire necessary market information and organize his department, ultimately recommending that he hire a marketing professional to help seek out target customers through effective promotions and advertisements.

Uploaded by

Clarence Pascual
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CASE 11.

BUGTAG CHEMICAL CORPORATION: Help

Summary

Samuel Bugarin and Antonio Tagorda were classmates at the Chemical


Engineering Department of De la Salle University. After passing the board examinations
in 1981, Engineer Bugarin first worked as an assistant in the quality control unit in a
chemical manufacturing company and later became the chief of the unit. Because of
his good performance, he was promoted to production manager in 1993. Engineer
Tagorda got a job in 1982 as production planner of Reliance Chemical Company. In
1990, he was assigned as assistant production manager. After a year, he became the
new marketing manager of marketing department. When he assumed his post as
marketing manager, the company is already serving group of loyal customers. The
increasing requirements of these customers also meant additional orders for the
company's products. The company’s sales increased even if the number of its
customers did not. In a class reunion held in April 1997, Samuel and Antonio met
and they conversed for more than three hours. Samuel mentioned that he had started
organizing his own chemical manufacturing firm and he wanted Antonio to join him.
Antonio agreed and in a subsequent meeting decided to divide the work between the two
of them. Samuel was to take care of production and Antonio would handle marketing.
They decided to invite an experienced finance officer and a high school classmate,
Edgardo Abuan. He became the company's finance manager. The company was
registered as a stock corporation and the capital contributions of the stockholders
were as follows:

Name of the Stockholder Amount of Capital Contribution


Samuel Bugarin 30,000,000
Antonio Tagorda 15,000,000
Edgardo Abuan 3,000,000
Jesus Ualat 1,000,000
Rosario Mariano 1,000,000
Ausberto Taguinod 1,000,000
Francisco Bundoc 1,000,000
Amparo Paragas 1,000,000
Andres Nicolas 1,000,000
Total 54,000,000

The three agreed to produce caustic soda liquid, hydrochloric acid, soda ash, sodium
sulphate, sodium tripolyphosphate, and sulfuric acid. Their company has been named
the Bugtag Chemical Corporation. Samuel has already started organizing the production
department by hiring a production planner. Antonio is still considering what steps to
take in organizing his department. One of his problems is the lack of information
regarding the nature of the market the company must tap. Also, Antonio is aware of the
utmost importance of providing the production department with a demand forecast for
the company's products.

THE PROBLEM

Engineer Antonio was designated to handle marketing for their company named
Bugtag Chemical Organization (BCC), however, due to lack of information in the
marketing field, he is struggling to decide what steps he should take in his department.
He is thinking what should the company must tap for them to know what is their target
market and where should they offer their products, and how will they promote it to their
targeted clients or customers.

STATEMENT OF THE PROBLEM

Engineer Antonio was designated to handle marketing for their company;


however, the strategy/steps in organizing his department is still undecided and he still
lacks of information regarding the marketing field. How will Engineer Antonio acquire
the information that he need regarding the nature of the market? What method
should Engineer Antonio take to organize his department?

ALTERNATIVES COURSES OF ACTION

 Engineer Tagorda may train himself in the marketing field by taking a course.
 Engineer Tagorda may select Residential Section. Since, their company is small
yet residential section may be a great segment to select.
 Engineer Tagorda may hire marketing pro and labor to his division.
 Engineer Tagorda may build up franchises in several places that will offer their
products.
 Engineer Tagorda may select the Industrial Section.
 Engineer Tagorda may distribute promotion in several mass media about their
items and administrations.
 Engineer Tagorda may select the Government Section.
CONCLUSIONS AND RECOMMENDATIONS

Base on the presented alternatives, I therefore conclude and recommend that the
best thing Engr. Tagoda may do is to open a vacancy for positions related to
marketing professionalism. He must hire the applicant with best qualifications in terms
of marketing abilities and decision making. After doing so, the second thing he must do is
to seek for their target customers by creating promotions and advertisements that will
effectively gather individuals with great interest on what they are selling. In this way,
his problem will be successfully solved with lesser efforts than other alternative.

Common questions

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Demand forecasting is crucial for Bugtag Chemical Corporation's production department as it ensures product availability reflects market needs, minimizing waste and optimizing inventory. Accurate forecasts facilitate effective production scheduling and resource allocation. Under Antonio's management, aligning demand forecasting with marketing strategy would enable the marketing team to adjust campaigns based on production capabilities and seasonal trends, enhancing both customer satisfaction and operational efficiency .

The collaboration between Samuel Bugarin and Antonio Tagorda is likely to bolster Bugtag Chemical Corporation’s competitive edge by combining technical expertise with market insights. Samuel’s production expertise ensures operational efficiency and product quality, while Antonio’s marketing acumen supports effective brand positioning and customer engagement strategies. This synergy could drive innovation in product development and process improvement, enhancing the corporation's ability to respond to market trends and competitor actions, thus reinforcing its competitive positioning in the chemical industry .

Samuel's experience as a production manager helped him organize the production department and hire a production planner, ensuring an efficient start to operations. Antonio's marketing experience, despite challenges in market analysis, provided insight into maintaining customer loyalty and increasing sales volumes. Their combined experiences influenced the decision-making process and division of responsibilities, contributing to the strategic direction of Bugtag Chemical Corporation as a dual-focused enterprise on production and market outreach .

Capital contributions were crucial in the establishment of Bugtag Chemical Corporation, as they determined the equity structure of the company. Samuel Bugarin contributed the largest amount with 30,000,000, followed by Antonio Tagorda with 15,000,000, and Edgardo Abuan with 3,000,000. The remaining amounts contributed by other partners included six individuals each contributing 1,000,000, making the total capital 54,000,000 .

Establishing franchising outlets could expand Bugtag Chemical Corporation's reach and brand presence, leveraging local entrepreneurs' market knowledge. Benefits include diversified income streams and increased market penetration without significant capital investment. Challenges involve maintaining quality control, brand consistency, and managing franchisee relationships. It also requires a solid franchise framework and support system to ensure franchise success and align with corporate goals .

Samuel Bugarin and Antonio Tagorda decided to establish Bugtag Chemical Corporation after meeting at a class reunion in 1997. Samuel, who had been working as a production manager since 1993, took responsibility for the production side of the new company. Antonio, with experience as a marketing manager since 1991, was assigned to handle marketing. The two agreed to divide the responsibilities, with Samuel focusing on production and Antonio on marketing .

Bugtag Chemical Corporation could target several market segments: the residential sector, industrial sector, or government sector. Targeting the residential sector could be advantageous due to high demand, but could also lead to increased competition and lower margins. The industrial sector could provide larger volumes and long-term contracts, but typically requires more complex production capabilities. Targeting the government could offer stability and large-scale opportunities but often involves complex bidding processes and compliance with stringent regulations .

Hiring a marketing professional would likely streamline the marketing strategy of Bugtag Chemical Corporation, providing expert insights into consumer behavior, market trends, and strategic promotions. A professional could enhance the company's market presence, create targeted advertisements, and optimize the promotional budget. This move could also alleviate the pressure on Antonio Tagorda, allowing him to collaborate and learn from marketing experts, thus aligning the company's efforts more effectively with market demands .

The customer loyalty strategies observed at Reliance Chemical Company emphasize the importance of building strong relationships and delivering consistent quality. For Bugtag Chemical Corporation, this insight suggests prioritizing customer service and retention programs, implementing reliable quality measures, and creating customer-focused communication channels. By adopting these strategies, the company can foster similar loyalty and increase customer acquisition, particularly in competitive markets .

Engineer Antonio Tagorda faced challenges due to a lack of information regarding the marketing field and the specific market the company should target. To address these, several strategies were proposed including: enrolling in marketing courses to improve his own knowledge, hiring marketing professionals, selecting specific market segments such as residential, industrial, or government, and using mass media for product promotion. Ultimately, it was recommended that Antonio hire a qualified marketing professional for strategic insights and focus on targeted promotions and advertisements .

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