Imperial Plaza - Body Text

Chapter 1INTRODUCTION

BUSINESS BACKGROUND HISTORY

Business Name : Imperial Appliance Business Plaza

Business Type : Corporation

Business Address : RCT Building, Real Street, Tacloban City

Contact Number : (053) 523-0551

Imperial Appliance Plaza started as a single proprietorship but a

family partnership in context by Tiu Tek Kian on August 8, 1974 in Iloilo

City. It became successful and generated a big income that

encouraged them to convert it into a corporation on March 1982 and

made its branches in Roxas City, Bacolod and Kalibo and the entire

region VI, and later focused on putting up branches in Mindanao areas.

In 1996 they started to put up in Luzon area. Currently Imperial

Appliance Business Plaza has 49 branches nationwide.

The company or the Imperial Appliance Business Plaza

envisioned itself to be the leading distributor of appliances and

furniture in marketing nationwide. The company was already

established based on the good performance of the business and

continues success in many years. Indeed the company wants to

provide efficient quality service to its customers all over the country.

The company is known as the distributor of affordable, trusted

IMPERIAL APPLIANCE PLAZA Tacloban Branch Page 1

and braded appliances and furniture in the Philippines. The company is

offering high branded and high quality house appliances and furniture

at affordable prices. The company offers products such as television,

air-condition, electric fan, stove/oven, washing machine, refrigerator,

DVD/VCD/CD player, water dispenser, speaker, blue ray dish and house

furniture. All these are under the brand of Sony, Samsung, JVC,

Panasonic, Sharp, Sanyo, Kelvinator, Carrier, Matrix and Germania.

The company has these strategies like advertising and other

promotions which they believe that are very helpful in attracting new

customers, making its old customers to come back, and improving its

sales.

Imperial Appliance Business Plaza has been known to the eye of

the market because of its good quality services for its customers and

branded and trusted products. It sells quality products and it has very

polite employees that merely capture the heart of the customers. In

fact, it has been about 37 years in serving its customers all over the

country and has already improved their CSM or Customer Service

Management.

The competitive advantage of this company compared to its

competitors is that it sells a product that has high quality and at

affordable prices. New customers want it quicker, cheaper, and they

want it their way. This company also gives good quality services better

than those others. Old customers want more attracting and comforting


places buying their needs. They always take good care of their

customers. They always assist you and introduce to you every product

you want and need. They sell products that have high quality and have

known brand names. Further, they always assure that you get what

you deserve. Their main concern is customer satisfaction.

Imperial Appliance Plaza is a start-up company in Tacloban City

that operated for 16 years with its variety of products to the people of

Taloban City and the rest of the Leyte province. Marketing is critical to

its success and future profitability. Imperial Appliance Plaza offers wide

range of branded and quality appliances and furniture’s.

The basic market need is a high quality and affordable appliance

products and competitive services. Imperial Appliance Plaza will meet

this demand with an ever expanding innovative choice of products and

services to cope the customer satisfaction.


Purpose and Mission

A purpose and mission statement is a company’s articulation to

its customers, employees and the entire world of the purpose of its

existence. Obviously, businesses exist to make money, maximize

profits and shareholder value, but the mission statement is more about

the front line than the bottom line. That said, in order for a business to

be successful, it has to have a clear and broad mission that resonates

with the public and tells them why it would be beneficial to do business

with your company.

Mission statements generally include a statement of purpose, a

business statement, and an indication of the company’s values. The

statement of purpose explicitly states the purpose of the company. The

values portion of the statement talks about the common values shared

throughout the company and how those common values contribute to

the final product.

An ideal mission statement should be inspiring to employees.

The statement brings a certain focus to the staff as the purpose of

their work crystallizes and they are able to see the value of their

contribution. Few things in life are as fulfilling as the knowledge that

you are contributing something greater than yourself. The mission


statement should allow each employee to see their own personal role

in the firm’s success.

“To become one of the leading appliance centers in Tacloban City

serving the customers with quality appliance and furniture at lowest price,

and competitive service”

Purpose of Marketing Plan

Marketing Plan

A plan is a way of achieving something. A marketing plan1 is a

business document written for the purpose of describing the current

market position of a business and its marketing strategy for the period

covered by the marketing plan.

A marketing plan helps the business establish, direct and

coordinate its marketing efforts. It contains information about the

company, its products and services, marketing objectives and

strategies, as well as how they will measure the success of the

marketing activities.

It describes all the marketing activities they’ll perform during a

specified time period (usually one year). They also include any

background information and research results they used to select those

marketing activities. Finally, they’ll documented the cost associated

with their planned marketing activities as well as the measurements

1 http://homebusiness.about.com/od/homebusinessglossar1/g/marketing-plan.htm


they use to determine success.

The purpose of marketing plan is to build a customer base and

determine any opportunities to make a profit. Marketing plan will help

the management manage their projected expenses and possible

projected income and will also help define times of financial outlay so

that when those lulls arrive they aren’t unexpected. It helps them also

to define their market, identify their customers and competitors,

outline a strategy for attracting and keeping customers, and to identify

and anticipate change.

Clarity in direction is one of the major benefits of a marketing

plan. It will decide not only when to advertise, but how and to whom.

Planning is a key point and a core business principle that will

help determine the future of your business and at the core of your

business is the marketing plan. It’s not just the finished marketing plan

that will help you, but the thoughts you will encounter when writing the

plan and the obstacles you will overcome in the process will have a

major effect on the way you do the business. You will understand your

customer and their needs on a deeper level and you will be better

equipped to meet the needs of your customer.

Organization Mission Statement

Vision

The country’s leader in marketing, sales and distribution of


Regional Manager

Credit & Collection ManagerBranch Manager

CollectorsAccounting Dept.

quality home appliances, furniture and office equipments by providing

excellent customer services for every Filipino home and offices.

Mission

As a company, we commit to:

1. Provide reliable and efficient delivery of services to our

customers, suppliers and principals through massive

expansion and direct selling.

2. Maintain goodwill and corporate prestige through

professional selling, competitive pricing, provide counseling

and competent technical serving.

3. Create a people-and service-oriented work environment

through the pursuit of corporate values of professionalism,

honesty, quality service, hard work, and dedication towards

total customer satisfaction.

Imperial Appliance PlazaORGANIZATIONAL CHART


Sales Dept.

Warehouse Dept.

Field Sales Rep.

Chapter 2SITUATIONAL ANALYSIS

Situation analysis is a marketing term, and involves evaluating

the situation and trends in a particular company's market. Situation

analysis is often called the "three c's", which refers to the three major

elements that must be studied: Customers, companies, and

competitors. The number of "c's" is sometimes extended to four, five,

or even six, with "Collaboration", "Company", and "Competitive

advantage".

Analysis: Current Products

Product Attributes

While most established business has more than one stream of

revenue, it is often sales of products that contribute most to this cash

flow. The product(s) a company sells will be a huge factor in whether

they succeed. The right product can propel any company to fortune


and the wrong product can make even the most exhaustive efforts

unprofitable. This is because of product attributes.

Product attributes are the characteristics of a product like Color,

Size or Type. These have significant impact towards business success

and must given meticulous and priority attention of the management.

For appliances, product features like, power capacity, remote

controlled or manually operated, compatibility to other related devices

and components is an advantage for customers.

Table 1Imperial Appliance Plaza Products

PRODUCTS PRODUCT BRAND ATTRIBUTES

Color Television

Sony

LED TV "Sony KDL-52NX800" 52 inch with Wi-Fi adn Edge LED

Panasonic

Panasonic TCP42X1 Plasma Tv panasonic tcp42x1

Samsung

Samsung LE 32 B 550, from 430 GBP.

JVC JVC LT26DY8ZG: this


26 inch LCD TV

LG

Available in: 21” - 32”, LCD Panel, HDMI Input, PC Input, Karaoke, USB Terminal, Subwoofer output Built in DVD player

Toshiba

Toshiba 37 RV 635 D B LCD TV Preview

Refrigerators

Whirlpool

Condura

Condura 9.0CuFt Metallic Silver Refrigerator, Model CTD300MN

Kelvinator


Panasonic

Panasonic - NR.BU302 Vegerator Series Bottom-Mount-Freezer ..

Air conditioners

ColinAvailable in Window type and split type aircon; .5–1.5hp, manual and remote controlled, two direction air vane

Condura

LED display, turbo mode, manual and wireless, sleep mode 7hr off, auto level swing, active carbon and bio filter

Hitachi

Available in window and split type, .5-2.0hp,

Freezers Eurotek 4.0cub.ft-10.5cub.ft,


with inner glass door, interior light, roller caster, safety key lock, double wire basket

Home Theaters

JVC 1200 watts, DTS,DD, Prologic II, USB Input, Ipod dock, AM/FM tuner, MP3, WMA, WAV, JPED, MPEG4 compatibility, Progressive scan DVD player with 720p and 1080i upconversion

Components JVC Matte silver aesthetic with black grilles, 350 watts total power handling, 3-CD play, program and exchange support, extended supper bass technology, 3 preset, 3 manual EQ settings, live surround sound settings, auxiliary input, independent subwoofer volume control, dual auto reverse cassette deck

Electric Fans

Comes in plastic made materials and steel, 220v, 3 speed, 90 degree rotation, VDSE 2 round pins plug, stand fan and desk fan, 50watts power

Gas Stoves 3 gas, gas oven, thermostat control, gas grill with rotisserie/ oven light, 100% porcelain enameled black body, glass top cover, 33(H) x 54(D) x 50(W) centimeters dimension, Oven dimension: 33(H) x 42(D) x 50(W) centimeters, 49.0 Liters capacity (also available in 4 burners)


Rice Cookers Standard

Furniture’s Dining Table

All furniture’s are locally made blended with imported material, comes from Narra and Molave wood

Imperial Appliance Business Plaza is one of the well known

distributors of the mentioned products. They have been selling these

products for about 16 years in Region VIII. They sell branded

appliances and furniture and give good quality service to its

customers. In fact, they are one of the best sellers and known because

of its polite skilled staffs.

Pricing

Pricing strategies for products or services encompass three main

ways to improve profits. These are that the business owner can cut

costs or sell more, or find more profit with a better pricing strategy.

Merely raising prices is not always the answer, especially in a

poor environment with so many competitors. Too many businesses

have been lost because they priced themselves out of the


marketplace. On the other hand, too many business and sales staff

leave "money on the table". One strategy does not fit all, so adopting a

pricing strategy is a learning curve when studying the needs and

behaviors of customers and clients.

At Imperial Appliance Plaza products are available at affordable

and reasonable prices. Imperial Appliance Plaza adopts 20-40% mark-

up pricing for their product and depending on the manufacturer’s

price. This applied by most of the distributor and retailer businesses.

The products of the company are priced competitively so that the

target market share will be realized. With the savings from the massive

promotional campaigns and the prices of the merchandize offered, the

company can afford to beat the price of its suppliers.

Table 2Imperial Appliance Plaza

Products Price List

Product Price Product PriceTV Colored Air conditionerSamsung 21” 17,595.00 Samsung 12,195.00Sharp 21” 10,290.00 Panasonic 14,799.00JVC FTV 21” 14,190.00 Sharp 28,195.00Sony CTV 21” 12,812.00 Carrier 13,360.00Sanyo FTV 21” 11,595.00 Condura 11,899.00RefrigeratorSamsung 47,995.00GE 17,595.00Panasonic 24,599.00Sharp 18,995.00Sanyo 10,395.00Electrolux 37,695.00Washing MachineAstron 4,800.00Samsung 22,995.00


Manufacturer / SupplierImperial Appliance Plaza

Customer

Panasonic (Single) 4,999.00 (Twin) 10,799.00Sharp (Twin) 14,790.00

Competitors Price List

Product IMPERIAL EMCOR RHINELCD TV 25,900.00 24,703.00 24,144.00Home Theater 8,490.00 5,920.00 6,990.00Refrigerator (single door)

10,250.00 15,660.00 16,554.00

Refrigerator (two door)

15,995.00 19,058.00 22,879.00

Freezer 13,680.00 13,655.00 14,599.00Washing Machine (Auto)

13,987.00 14,188.00

Washing Machine (Twin)

8,990.00 8,432.00 8,619.00

DVD Player 1,990.00 2,014.00 3,195.00Airconditionaire 13,995.00 19,394.00 18,854.00Component 16,999.00

Distribution

To evenly and safely distribute appliances to customers Imperial

Appliance Plaza simply yet strictly follows the following product

distribution.

Figure __Product Distribution


Imperial Appliance Plaza is one of the appliance dealers in

Tacloban City exclusively distributing quality products of most known

brand around the globe. Its products are directly ordered from

manufacturer’s warehouse and authorized national dealer based in

Manila and Cebu. Products are delivered to its main store showroom

located at Real Street Tacloban City. From its store, walk-in customers

bring with them the appliances to their respective home and that’s the

end of the distribution process. In some case, products are course

through company sales agents for processing of documents and

payments and delivered to customer’s respective home as reflected

from delivery receipt.

Promotion

A promotional activity that was held by Imperial Appliances Plaza

is through product caravan and radio ads placement. In terms of radio

advertisement airing schedule depends on the proposal presented by

radio station representative according to terms and condition. Non

proposal from radio station means no advertisements. Most of the

time, radio ads is 30 seconder and duration again depends on the

proposal.

Imperial Appliance Plaza depend it’s all year round promotion

from its agents that roam around Leyte province and from word-of-

mouth of its satisfied customers. There also a product caravan that

visits nearby municipalities and even remote towns in Leyte like


Burauen, Julita, Tabon-tabon etc.

Analysis: Current Target Market

A current target market is a group of customers that the

business has decided to aim its marketing efforts and ultimately its

merchandise. A well-defined target market is the first element to a

marketing strategy. The target market and the marketing mix

variables of product, place(distribution), promotion and price are the

four elements of a marketing mix strategy that determine the success

of a product in the marketplace.

Appliance product target market primarily is the households

within the city of Tacloban, nearby municipalities and the entire

province of Leyte. Government and private offices and establishments

composed the second largest target market for appliances. Other

institutions such as schools complete the list of potential target

market.

Target market of appliance products is a general public, from 1

year old to the oldest year of human kind is a potential market the

industry. Home appliances benefits every member of the family like

television, children’s are fond of watching TV shows and movies.

Watching movies it does not happen with television alone a DVD player

is needed. Refrigerators contribute a lot to the whole family from

preservation of foods to delicacies and deserts including cold water


and juices that refreshes everyone.

Target market are from low income family to highest income

families in Leyte province including those in Samar provinces and

Biliran province who has an access and mood to buy their appliances

at Imperial Appliance Plaza.

Table 3PROJECTED POPULATION BY FIVE-YEAR AGE GROUP AND SEX

Leyte Province 2000-2040

Source: 2000 Census-Based National, Provincial Population Projections, NSO

Table above presents the size of the target market from year

2000 up to 2040. It is clear that potential market in continuously

increasing every year. Target market at present that ages 15-19 in

three years time they probably have their own family, therefore they

will start investing or buying appliances for their family. This scenario

clearly implies the potential growth of appliance industry in the


Tacloban and Leyte province in general.

Target market for appliances are ages ranging from 15 years old

up to 70 years old. Teenagers are now potential market in terms of

appliances, they tend to become more technology enthusiast and

addicted brought about by technology trend and competition. This

figure will serve as basis for Imperial Appliance Plaza in developing

greater market saturation.

Table 4LABOR FORCE AND EMPLOYMENT STATUS

OF HOUSEHOLD POPULATIONLeyte Province

Source: National Statistical Coordination Board, Tacloban City


Table 4 presents the comparative data of year 2007 and 2008, it

shows the market size of the employed and unemployed. This data will

serve as basis for producing more appliances and marketing strategy

for the next business year.

Demographic Profile

Figure 1Gender Profile

Male

Female

The above graph shows that out of 250 surveyed potential

customers’ from Tacloban, Burauen, Dulag and Tanauan only 39% are

Male buyers while Female composed of 61% who buy appliances and

furniture’s.

As gleaned on the graph, females composed the huge size of

appliance customers it is simply maybe because females took charge


39%61%

the budgeting task for the family, while most male are hesitant to do

these chores.

The data shows that market segmentation of Imperial Appliance

Plaza Tacloban Branch must focus on female community it is probably

because most females of housewives does the financial management

in the family.

Figure 2Civil Status Profile

SingleMarried

As shown in Figure 2 Civil Status profile, most customers who

buy appliances are those married person which is composed of 87% of

the market while single is only 13%.

This only shows that married person acquires these appliances

for their family such as television, washing machine, refrigerator,


13%

87%

electric fan and any other appliances that are vital in day to day living

of the family. Some singles in the survey ages from 25 years old and

above. According to these singles they bought appliances because of

personal purpose and satisfaction, they want some souvenirs from

their salaries or a good investment while they don’t have family.

Every year number of couples is increasing this implies that

appliances will never be out in market demand and contributed to

increasing potential market.

Figure 3Occupation Profile

24%

11%

16%

50%

Government Employee

Private Employee

Self Employed

Not Employed

As shown in Figure 3 above not employed composed the big part

of the market which is 50%, followed by government employee with

24% then self-employed with 15% and finally private employee with

11%.


Graph implies that not employed population includes those

running their little business, engaged in agricultural business, labor

force, transport sector, industrial sector.

The data implied that customers or buyers of quality appliances

are not those who are employed in private and public offices but also

those running their own business and even in labor sector.

This connotes that the market is huge enough and thus need to

be penetrated in time to complete the marketing objectives.

Figure 4Monthly Income

5,000-10,00010,000-20,00020,000-30,00030,000-40,00040,000-above

Customer income is also a factor that affects sales of appliance

industry, as shown on the pie graph above, 36% of the customers are

earning 10,000-20,000 pesos a month, followed by those who are

earning 20,000-30,000 with 26%, while earning 30,000-40,000 is


36%26%

16%14%8%

composed only of 16% and 14% only are those earning 5,000-10,000

and lastly 8% those earning 40,000 and above.

Data presented indicates financial capability of target market.

Data shows that those who are earning 40,000 above by the time they

earn this amount they have already purchased basic appliances. This

market must be penetrated by company sales agent because they are

much capable of acquisition of new appliances.

Figure 5MARKET SHARE

Imperial EMCORDu Ek SamGLEN MarketingRL Appliance

Figure 5 shows the market share of Imperial Appliance Plaza and

its competitors in Tacloban City. A survey was conducted by

researchers in different area, Tacloban City, Dulag, Burauen, Tanauan

and other nearby municipality of Tacloban like Palo and Babatngon


40%

23% 21%8%

8%

composing 500 respondents. The purpose is to identify the market

share of the cooperating company of the present marketing study – the

Imperial Appliance Plaza.

The findings shows that Glen Marketing holds the biggest market

share of 40% from 200 respondents, seconded by RL Appliance Center

with 23%, while Imperial Appliance Plaza holds the 3rd rank with 21%

from 105 respondents, and the remaining 16% where shared by

EMCOR and DU EK SAM with 8% each. This is a big challenge for the

business to capture the big share of its major competitor.

Lifestyle

Lifestyle is also a factor that affects the customers buying

behavior. Those who are earning above average especially living in the

city tend to buy latest design and advanced featured technology or

appliances. While those who are average earner preferred to buy those

appliances only enough for their needs and financial capability. Least

those who are below average earnings buy only those appliances that

is much needed in their daily living or even most of the times they buy

those second hand appliances.

Cost Focus

Imperial Appliance Business Plaza has been known to the eye of

the market because of its good quality services for its customers and

branded and trusted products. It sells quality products and it has very

polite employees that merely capture the heart of the customers. In


fact, it has been about 35 years in serving its customers all over the

country and 6 years in serving Eastern Visayas and has already

improved their CSM or Customer Service Management.

The competitive advantages of this company compared to its

competitors is that it sells a product that has high quality and at

affordable prices. New customers want it quicker, cheaper, and they

want it their way. This company also gives good quality services better

than those others. Old customers want more attracting and comforting

places even in buying their needs. They always take good care of their

customers. They always assist you and introduce to you every product

you want and need. They sell products that have high quality and have

known brand names. Further, they always assure that you get what

you deserve. Their main concern is customer satisfaction.

Market Size and Trends

The increasing number of households and the like is on upward

trends. There is the resilience of the country’s economy in spite of

global economic crisis. The graph below illustrates increasing number

of households per year.

Figure 5TOTAL NUMBER OF HOUSEHOLDS BY PROVINCE


BiliranEastern SamarLeyteSouthern Leyte

The market for appliance products in Leyte province alone is

huge. Of four (4) provinces near Leyte namely Biliran, Eastern Samar

and Southern Leyte 65% of the total market are in Leyte which is

equivalent to 322,527 as of 2010 and continuous growing in number

every year. Eastern Samar has a total household of 375,822 and

Southern Leyte has 3660,160 households which is both 15% of the

total market size while Biliran province has 715,025 households

respectively.

The graph shows that Imperial Appliance Plaza can still penetrate

at least 10% of the total market per province every year since all of

these household will need appliances. It is understandable that all

appliances expires it certain period of time depending on manner

usage therefore this needs to be replaced.

It is also clear that even up to time that this research is written

lot of appliance center exists and serve the market for years, yet


65%

15%15%5%

Imperial Appliance Plaza can slice their market share by convincing

their customers to have their purchases at Imperial Plaza.

It is believe that having a dedicated authorized sales agent per

area will help introduce the business directly to the target market. In

every congressional district there should be at least 1 sales agent.

Leyte province alone has 5 congressional districts, Samar has 6, and

Southern Leyte has 2, while Biliran has only 1 congressional district, for

a total of 14 districts.

Analysis: Current Distributors Network

In the wake of increasingly complicated supply chains,

distribution network design plays a key role in controlling the cost of

doing business. And, in a world of shrinking margins, controlling the

cost of doing business can be the factor that puts you ahead of your

competitors.

An optimal distribution network is intelligently designed to

minimize costs by providing the customer the right goods, in the right

quantity, at the right place, and at right time. In most organizations,


controlling distribution costs involves striking a balance between

warehousing and transportation. While more distribution centers drives

down the cost of transportation, the opposite holds true as well.

Figure 1Distribution Channel Model of Imperial Appliance Plaza

The diagram shows a simple three-level model of distribution

channel being followed by Imperial Business Plaza. As far as Imperial is

concern its products no longer passes through any distribution

channel. They are directly bringing the products to the end customers.

The sales agents are not channel but presented for purposes of

illustration that they are just go-between in facilitating or negotiating

sales transactions but the products never passes for their distributions.

However, as suppliers are concerned, Imperial Business Plaza is

serving as channel of distribution. At present Imperial Appliance Plaza


Manufacturers or Suppliers

Imperial Appliance Business Plaza

Customers or Clients

Sales Agents

has Eighteen (18) active sales agents all are female and Twenty-two

(22) in-house employee that composed of sales ladies, stockman and

accounting and management staff.

Analysis: Current Competitors

Competitors refer to any person or entity which is a rival against

another. In business, it is a company in the same industry or a similar

industry which offers a similar product or service. The presence of one

or more competitors can reduce the prices of goods and services as

the companies attempt to gain a larger market share. Competition also

requires companies to become more efficient in order to reduce costs.

In Tacloban City, Imperial Appliance Plaza immediate competitors

are: RL Appliance at Real Street; EMCOR Appliance Center at Gomez


Manufacturers or Suppliers

Imperial Appliance Business Plaza

Customers

Sales Agents /Credit Investigator

SUPPLIERS

TACLOBAN MAIN OFFICE

ORMOC BRANCH BAYBAY BRANCH SAMAR BRANCH

AGENTS AGENTS AGENTS

Street; CITI Appliance Center and Rainbow Appliance at Zamora Street;

Du Ek Sam Appliance Center at Avenida Veteranos and Glen Marketing

Inc at Justice Romualdez Street Tacloban City.

All these establishments offer almost all the same products and

brands.

Competitors Analysis

COMPANY Branch Promotion Products Market

Imperial TaclobanTarpaulin, Caravan

All brands Leyte

Glen Mktg Tacloban, Ormoc, Baybay

Radio, Tarp, Newspaper

Same Region VIII

EmcorTacloban, Ormoc

Radio, Caravan

Same Leyte

Rhine Agent Same Leyte

RL

Tacloban, Ormoc, Baybay, Calbayog

Radio, Tarp, Newspaper, Caravan

same Region VIII

Competitors Distribution Channel

Glen Marketing Product Distribution Channel


SUPPLIERS

TACLOBAN OFFICE

Customers AGENTS

Glen Marketing distribution channel begins from suppliers.

Products are ship to Tacloban Main Office & warehouse. Upon request

on unavailability of stock in its branches products are to them. From

branches products are sold directly to customers and through their

authorized sales agents.

RHINE Marketing Product Distribution Channel


SUPPLIERS


RHINE Marketing distribution channel is simple direct channel.

Products are ship from Manila or Cebu suppliers to Tacloban Main

Office showroom. Products are sold directly to walk-in customers. Sales

Agents delegate the distribution of its products to customers in various

places of Leyte. Products are delivered using RHINE Marketing

company delivery truck or service vehicle.

EMCOR Product Distribution Channel




Customers CustomersCustomers

SUPPLIERS


EMCOR distribution channel is similar to Glen Marketing.

Products are ship from Manila or Cebu suppliers to Tacloban Main

Office showroom. Upon request on unavailability of stock in its

branches products are to them. From branches products are sold

directly to customers and through their authorized sales agents.

RL Appliance Center Product Distribution Channel




Customers CustomersCustomers

RL Appliance Center distribution channel is similar to Glen

Marketing. Products are ship from Manila or Cebu suppliers to Tacloban

Main Office showroom. Upon request on unavailability of stock in its

branches products are to them. From branches products are sold

directly to customers and through their authorized sales agents.

Analysis: Current Financial Condition

Financial condition is the status of a firm's assets, liabilities and

equity positions at a specific point in time, often described in a

financial statement.

Table __COMPARATIVE FINANCIAL REPORT

2010 2011

Imperial AP Annual Gross Sales 18,231,408.00

22,789,260.00

Imperial Expenses Cost of Product 10,938,845.0

013,673,556.0

0 Transportation expense 105,600.00 132,000.00 Spare parts maintenance 86,400.00 108,000.00


Utilities (Electricity) 192,000.00 240,000.00 Allowances 76,800.00 96,000.00 Office Supplies 19,200.00 24,000.00 Salaries expense 552,000.00 600,000.00 Promotion Expense

TOTAL 11,970,845.00

14,873,556.00

GROSS SALES 6,260,563.00 7,915,704.00Less: Tax (30%) 1,878,169.00 2,374,711.00

NET Income 4,382,394.00 5,540,993.00

As presented on Table ___ Imperial Appliance Plaza annual gross

sales from calendar year 2010 increases by 14% on year 2011 from

Php1,760,698.00 to 2,000,793.00. Annual net income also increases by

10% from year 2010 Php728,698.00 to Php800,793.00 by year 2011.

Analysis: External Forces

There are several different uncontrollable and controllable

aspects of an external business environment that affect the success (or

lack thereof) of a business. The first uncontrollable factor would be

competition. Since everyone has the right to create a business of their

own, there is no way to control competition. There will always be

someone who believes they can do the same thing you are doing but

better. The only way to push this aspect of your external business

environment towards success is to be one step ahead of competitors.


One way is to research newer products that they may have, or to have

competitive prices and sales.

External forces is affected by External Forces: changes in

technology, political factors, general macro-economic environment,

changes in consumer tastes, preferences, purchasing patterns &

frequencies and declining market shares due to competition.

Economic

Population of households in Leyte is continuously increasing

every year. In 2000 census survey, there are about 322,527

households in Leyte. Because of this, the need of appliances and

furniture also increases. There is an increase in demand of about 5%

every year. With this reason, the company may even see the big

demand of house furniture and appliances. Big demand means big

opportunity and big profit in the part of the company.

Regulatory and Legal Issues

The company complied with all the laws and regulatory

requirements for the establishment and operation of motorcycle

distributor establishment.

Local regulatory requirements such as Mayor’s Business Permit,

DTI Business Name Registration, BIR Registration, the Sanitary Health

Clearance, etc. will satisfactorily comply with. The table in the next

page shows the permits and licenses incurred by the company:


Table 5Legal Document

ParticularsAmoun

tDescription

Barangay Clearance

150.00This clearance is secured from the barangay where the business is located as required for securing mayor’s permit

DTI Business Name Registration

300.00

Business name registration with DTI precedes all other documents required for the business to operate. The registration is good for five years

BIR Registration 800.00This registration is required to taxation purposes

Mayor's Permit4,700.0

0

This is a permit issued by the office of city mayor allowing or granting the business to legitimately operate in the city where it is located

Fire Inspection Certificate

400.00Required by the city before a mayor’s permit is issued and as required by laws in compliance of safety measures

Sanitary Health Permit

200.00Required by the city before a Mayor’s permit is issued in compliance of health and sanitation measures

SSS Registration

600.00Required by the social services office for purposes of remitting social contributions of employees and the business counterpart

Total Permit and Licenses

7,150.00

Analysis: Summary

The operating cycle of Imperial Appliance Business Plaza

commences on its acquisition of appliance and furniture supplies from

different manufacturers or distributors of the multinational

corporations in which the company has trading and financial


relationships until company fully collected the cash sales value of the

sold items. Since, sales transactions is either cash or credit and the

terms of credit or installments last on an average of 18 months,

therefore, the operating cycle of business more or less on the average

of one and one-half year. This cycle would not affect too much on

financial liquidity of the operation since the business also enjoy almost

the same term of credit purchases with suppliers. Second, the business

practices low level inventory volume in its warehouse to avoid too high

warehousing and inventory costs.

As gleaned on the graph presented on gender profile, females

composed the huge size of appliance customers it is simply maybe

because females took charge the budgeting task for the family, while

most male are hesitant to do these chores.

Civil Status profile shows that most customers who buy

appliances are those married person who is composed of 87% of the

market while single is only 13%. This only shows that married person

acquires these appliances for their family such as television, washing

machine, refrigerator, electric fan and any other appliances that are

vital in day to day living of the family. Some singles in the survey ages

from 25 years old and above. According to these singles they bought

appliances because of personal purpose and satisfaction, they want

some souvenirs from their salaries or a good investment while they

don’t have family. Every year number of couples is increasing this


implies that appliances will never be out in market demand.

Occupation profile presented that not employed composed the

big part of the market which is 50%, followed by government

employee with 24% then self-employed with 15% and finally private

employee with 11%. Not employed includes those running their little

business and into agricultural business and comes from nearby

municipalities.

Customer income is also a factor that affects sales of appliances,

as shown on the pie graph above, 36% of the customers are earning

10,000-20,000 pesos a month, followed by those who are earning

20,000-30,000 with 26%, while earning 30,000-40,000 is composed

only of 16% and 14% only are those earning 5,000-10,000 and lastly

8% those earning 40,000 and above.

Probably, those who are earning 40,000 above by the time they

earn this amount they have already purchased basic appliances, and

they buy at time is the one that is new and replacement of their

previous appliances.

Chapter 3


MARKETING STRAGTEGY AND OBJECTIVES

Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to

increase sales and achieve a sustainable competitive advantage.

Marketing strategies serve as the fundamental underpinning of

marketing plans designed to fill market needs and reach marketing

objectives. Plans and objectives are generally tested for measurable

results. Commonly, marketing strategies are developed as multi-year

plans, with a tactical plan detailing specific actions to be accomplished

in the current year. Time horizons covered by the marketing plan vary

by company, by industry, and by nation, however, time horizons are

becoming shorter as the speed of change in the environment

increases. Marketing strategies are dynamic and interactive. They are

partially planned and partially unplanned.

Marketing Strategy

Imperial Appliance Plaza is one of the prime appliance centers in

Tacloban City and in Leyte. Imperial Appliance Plaza build loyalty and a

great customer base by offering quality and affordable appliances and

furniture that will surely respond to the needs of most customers. They

also offers affordable and flexible payment or purchase scheme.

Customers may avail big discount on cash purchases, Zero percent

(0%) interest on selected items using major credit cards for 0-6


months. They can also avail 6 months to 25 months installment

payment scheme. After sales service is also an advantage to buying

customers with product and service warranty.

In the past few years of operation since Imperial Appliance Plaza

opens its store are Real Street Tacloban City, marketing strategy that

was adopted is relied on the suppliers/manufacturers effort on

advertising and product positioning. Imperial Appliance Plaza does not

have any regular radio and local newspaper advertisement that will

help increase customers awareness. Marketing of their product is

through their in-house sales agents who execute marketing. Agents

are task and responsible of building contacts, make transactions with

other institutions for possible volume sales.

Imperial Appliance Plaza conducts regular meeting and training

with their sales agents to assess their present status and to give them

an update on the management present economic condition.

Financial Objectives

Financial Growth

- To exceed __ million in the next 5 years.

- To increase revenue by 10% annually.

- To increase gross profit by 10% annually.

- To increase sales by 10% annually.


Financial Efficiency

- To decrease expenses by 5%.

- To increase net profit by 10% annually.

- To improve overall efficiency as measured by throughput.

- To improve overall productivity (doing more with what you

have).

Marketing Objectives

Current Customer

- Expand sales to existing customers.

- Increase customer retention.

- Increase customer loyalty.

- Cross sell existing products/services to current clients.

- Achieve and maintain outstanding customer service.

- Current Customer: Develop and use a customer database.

- Current Customer: Anticipate future customer needs through

customer feedback.

New Customer

- Introduce existing products into a new market.

- Introduce new products to new and existing markets.

- Anticipate future customer needs through customer feedback.

- To expand sales to the global marketplace.


Chapter 4TACTICAL MARKETING PROGRAMS

Tactical Decisions: Target Market

Target market in province of Leyte is categorized by gender, civil

status, occupation, and monthly income. Based on the finding of the

research survey conducted most customers are composed of females

with income ranging from 10,000 a month and above and most are

married.

With this identified target market, marketing strategy will

primarily focused on these aspects, the female population. Sales

agents are females too, with this scenario; agents can easily persuade

or influence the greater market to purchase products of Imperial

Appliance Plaza.

On the other hand, IMPERIAL Appliance Plaza may also expand

its market by penetrating existing offices and various

establishments in Tacloban and the entire Leyte for office acquisition

of new equipments like air conditioner and office furniture’s.

Existing Hotels and even under construction residential

and other accommodation business in Leyte may be contracted.

Proposals may be presented to them ahead of time, agents or the

management may join public biddings especially on different Local

Government Units (LGU).


IMPERIAL APPLIANCE PLAZATARGET MARKET

ResidentialCommercial establishments Private OfficesGovernment OfficesSchools

Tactical Decisions: Product

The company offers wide variety of branded appliances with is

locally known to market. Most purchased appliance products are DVD

player, television, washing machine and refrigerator. In this case,

management of Imperial Appliance Plaza may come up with add-on

promo with major suppliers of most purchase appliance to attract more

customers. For instance, every spot cash purchase of major appliances

there is a free rice cooker. This activity is expected to motivate other

potential customers to have their appliance shopping at Imperial Plaza.

Most customers purchase appliance depends are budget

conscious; they consider first their financial capability on buying

appliances. Despite of the good product characteristics or attributes

definitely customer will buy only what fit their budget.

Tactical Decisions: Promotion

Imperial Appliance Plaza being situated along Real Street, most

passengers of various vehicles plying this street usually pass by the

store without recognizing its signage’s. To date, there were aluminum

signage attach to store facing the main street and an steel fabricated

billboard hang-up that stretch from 2nd floor of the building to 4th floor.

Huge wall painted company name and other product name can be


visibly seen for up to 300 meters it is on the left side-wall of the

building. Having this signage’s there should be a perpendicular signage

position in front of the building facing on both ways of the street.

A very minimal expense for the printing of dual-referral discount

card flyer can be established. It will be given to everyone who visits

Imperial Appliance Plaza. Anyone who purchase appliances that can

present discount flyer is entitle of product discount to be determined

by the management depending on the kind of product the discount

available based on suppliers price. Referral fee and discounts is one of

the most effective tool of motivating customers to help find other

potential customers considering the attitude of Filipinos.

Imperial Appliance Plaza does not have any regular radio

advertisement, but direct selling can be effective, it is proposed that

management will encourage their sales lady or any of the employees

of the company to help find customers and they shall be given a

certain commission for every customer referral or personal selling.

In addition to what Imperial Appliance Plaza marketing strategy it

is suggested that they will try to adopt what other appliance store

practicing to encourage more agents and help increase sales. Since the

primary focus of Imperial Appliance Plaza target market is Leyte only,

interior barangay must be penetrated by sales agents. The

management may hire commission based and product incentives

based agents who are residents in remote barangays. Based on study,


there are also potential customers in remote barangays who are

capable to purchase cash basis although products are delivered at

home. These hired agents will undergo exclusive and intensive

seminars and training courtesy of course by the management to

determine their potentials in recruiting customer’s agents and

customers. Interested applicants of becoming sales agents will be

required to submit necessary valid documents that will attest his/her

qualifications. After training, sales agents will be authorized to make

transactions at their respective area but definitely they will not receive

any collections or payments from customers. A company designate

credit investigator will personally visit the house of applicants for

installment or term base. Upon approval of the Credit and Collection

Head on the findings of the documents presented by applicants and

the verification report made by credit investigator the appliances will

be delivered to customer subject to terms and conditions.

On the schedule time of collection, designate collectors will

collect payments from customers.


Tactical Decisions: Distribution

Traditionally, as indicated on the distribution channel showed by

Imperial Appliance Plaza, distribution starts from the

suppliers/manufacturers directly to the company warehouse. Then

sales agents and sales force will introduce the products to the

customers when convinced customers will be escorted to the cashier

for payment and once the customers step out from the store

transaction is finished. In most time, the company is dependent on

walk-in customers and the close transactions by its authorized sales

agents on field. This concept on sales agent can be implemented also

to any member of the company particularly in their respective

residential area. By doing so the potential increase of marketing area

of responsibility is possible. This can help increase or even double its

sales considering that non-agent employee of the company is twice the

number of authorized agents.

To avoid company loss or risk in product distribution, in relation

to the proposed remote barangay penetration, it is suggested that

delivery of products shall be limited to places accessible by company


vehicle and only identified safe places.

Proposed Product Distribution

Tactical Decisions: Pricing

Pricing method used of Imperial Appliance Plaza depends on the

kind of products and suppliers price, depending on time of delivery and

economic condition.

Availment of discount depends again on the kinds of product,

season and terms of purchase. Imperial Appliance Plaza gives from 5%

up to 20% depending on spot cash purchases.

Customers can purchase products using their major credit cards

with 0% interest for 6 months and certain percent for 12 months to 24

months terms.


Imperial Appliance

Plaza

Sales Agents

Employees

CUSTOMERS

Chapter 5BUDGETING, PERFORMANCE AND IMPLEMENTATION

Budgeting lies at the foundation of every financial plan. Market

budgeting presents a clear picture of the financial implications of the

plan. Performance analysis presents the expected results of the plan

including its financial impact. Implementation schedule shows

timeliness and identify those responsible for performing task.

Setting the Marketing Budget

Setting up marketing budget for any company future marketing

activities needs more time to assess and evaluate the impact of the

sales turn-out. Budgeting for this activities demands keen observation

on every details to make sure that everything that entails expense is in

appropriate track.

There are two ways to advertise and both need to be budgeted

for, just another spoonful of food for thought.

Product Advertising


This consists of well, advertising company product. It may be the

launching of a new product or service, or it could be remind consumers

what you have to offer. This will differ throughout the year as well.

Christmas is usually a huge time for toys and gifts; tax time requires

more ads at the beginning of the year. Depending on the time span

your budget covers these things will have to be kept in mind.

Perfect product advertising particularly in Tacloban City is on the

months of April-May were series of barangay and municipal fiestas

across the province is being held so as the much awaited Tacloban City

fiesta celebration where even tourist flourish the city to grace the

events; and during the months of October-December.

Imperial Appliance Plaza advertising particularly in radio depends

on the promotional bidding submitted to them by the station

representative. Ads specification varies also from radio station

proposal but most of the time radio advertisement is on AM radio

station. Mobile caravan is also made and the area of promotion is

determine by the management depends on seasonal promotion

schedule. In general, product advertising depends on the advertising

made by manufacturer.

Promotional Advertising

Promotional advertising brings consumers in for a specific

product promotion, but promotional ads bring them in because of a


special deal. These ads would be coupons, specials, or one time offers.

They are great for getting the focus on the company name instead of

just a product. They can be effectively done together if that will work

for the business.

At time, Imperial Appliance Plaza conducts Rolling Store and

Caravan Sale to promote the products and at the same time the

company.

A. Advertising Materials

QTYPARTICULAR

SUNIT COST

TOTAL AMOUN

TREMARKS

30 2x4 Tarpaulin200.0

06,000.00

Will be hang along Maharlika highway from Campetic to Abucay terminal. Rizal Avenue to Justice Romualdez to Real Street up to Tacloban Astrodome

2,000

Discount Flyer 500.00 Will be distributed in almost crowded area in the city

Labor Cost:Setting up tarpaulin, 3 pax @ 150/day x 2 days

450.00

900.00

These persons will be contracted to install tarpaulin on the streets stated above.

TOTAL EXPENSE 7,400.00

B. Training/Seminar for Agents


Month before the schedule training and Seminar, hiring of agent

applicants must be done. The management will assign any qualified

representative of the company will conduct the training it could be the

branch manager or the credit collection manager. Seminar staff will be

selected among the employee. The management may give additional

incentive for the service rendered.

The product orientation and training can be done in one (1) day.

Product catalog shall be provided by the supplier or manufacturer.

Performance Analysis

Due to absence of vital information needed for the assessment

and validation of the marketing strategy of the cooperating

establishment the researchers find it difficult to present the actual

company performance analysis. Based on the data gathered, the

following is presented in relation to company performance analysis.

In terms of Sales (customers purchase per day)


Cash BuyersCredit CardInstallment

From the data presented cash buyers of Imperial Appliance Plaza

is 40%, in terms of sales performance this is quite good because the

return of cost of goods and the profit is instant. While credit card

purchases and installment are both share 30% each on overall sales

performance.

In terms of Annual Sales (Sales against Expenditures)

2010 2011 2012 2013Imperial AP Annual Gross Sales 18,231,408

.0022,789,260

.0027,347,112

.0032,816,534

.00Imperial Expenses

Cost of Product 10,938,845.00

13,673,556.00

16,408,267.00

19,689,920.00

Transportation expense (5%)

105,600.00 132,000.00 138,600.00 145,530.00

Spare parts maintenance (3%)

86,400.00 108,000.00 111,240.00 114,577.00

Utilities (Electricity) (3%)

192,000.00 240,000.00 247,200.00 254,616.00

Allowances (5%)

76,800.00 96,000.00 100,800.00 105,840.00


40%

30%

30%

Office Supplies (3%)

19,200.00 24,000.00 24,720.00 25,462.00

Salaries expense 552,000.00 600,000.00 600,000.00 600,000.00 Promotion Expense 7,400.00 7,400.00

TOTAL 11,970,845.00

14,873,556.00

17,639,027.00

20,944,169

GROSS SALES 6,260,563.00

7,915,704.00

9,708,085.00

11,872,365.00

Less: Tax (30%) 1,878,169.00

2,374,711.00

2,912,426.00

3,561,710.00

NET Income 4,382,394.00

5,540,993.00

6,795,659.00

8,310,655.00

Chapter 6OTHER CONSIDERATIONS

Internal Factors

The retail market is a highly elastic sector and as such is affected


by current economic conditions. Internal strength of Imperial Appliance

Plaza is the company tangible assets such land and building which the

company owns and its competent manpower.

The company is run by more Fifty (50) active and dedicated

employees from the regional manager down to sales person positions

including security personnel.

Imperial Appliance Plaza own the newly constructed 4 storey

building and occupying 202 square meter situated right at the heart of

the city. The company also owns four (4) delivery trucks and vans, and

seven (7) motorcycles.

External Factors

Imperial Appliance Plaza experiences some seasonal trends in

the sale of its products. A significant portion of their net sales and

operating income are generated during the third and fourth quarter of

the fiscal year, which includes the fiestas and Christmas seasons. The

amount of profit generated during this time depends on the estimated

sales forecasted for those seasons. If by chance, there is an economic

down turn during this time, sales will slump and inventory will increase,

leading to lower operating and profit margins.


ANNEX

Imperial Appliance Plaza Pictorials


The

Store

The Ads


The Sales Force

The Researchers


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