De La Salle UniversityRamon V. Del Rosario College of BusinessManagement and Organization Department

STERLING PAPERCASE STUDY

Submittedin Partial Fulfilment of the Requirements inMKT535M Marketing Management

To:Ms. Regina Dy

By:Lim, Rapunzel Grace T.

10 March 2015Lets reminisce! Does your childhood memory involve dragging your parents into a bookstore and hoarding every Spiderman or Hello Kitty notebooks that you can see? Every month of June, I hear mothers say Malapit na naman pasukan. Nako, bilihan na naman ng school supplies.

I always ponder as to whether students and parents care about the quality or makarami lang. Ive read an article about budget school shopping, check it out at http://www.rappler.com/nation/59314-back-to-school-shopping-divisoria. Its headline caught my attention:

Back-to-school shopping with half-a-peso in Divisoriaby George P. Moya Published on May 31, 2014For a typical wage earner, saving 50 centavos per notebook could mean a lotI remember that note-taking only becomes enjoyable when my notebook has a smooth surface. Ive interviewed a few students about their preferences and they mentioned specific brands of notebooks such as Best Buy, Sterling or Cattleya. But these are the privileged ones or those from middle-income families. Would you rather buy a smooth writing paper or hoard as many as you can regardless of quality?

Then theres the emergence of computers or notebooks. By notebook, I mean the gadget. Lots of schools are now promoting paperless quizzes and homeworks. We now utilize PowerPoint, Prezi or any technological visual aid. Gone were the days when manila paper or cartolina comes in handy during presentations. Ive seen more students nowadays taking notes on their laptops rather than on notebooks. Is the paper manufacturing industry in the country declining?

PAPER MANUFACTURING INDUSTRY IN THE PHILIPPINESMany are of the mistaken notion that the pulp and paper industry is in its sunset stage because of the introduction of computer technology, internet, and e-commerce to the business world. The paperless economy is taking over. So they say.[footnoteRef:1] [1: Villafuerte, N.F. (2014). Paper A blessing to mankind. Manila Bulletin. Retrieved from: http://www.mb.com.ph/paper-a-blessing-to-mankind/]

Villafuerte emphasized that the paper industry is here to stay regardless of the technological development. She shared that a sentimental person like her chooses written love letters, Christmas cards, birthday cards as memorabilia. These are more precious than the emails and e-cards were now used to sending and receiving.

It is indeed unimaginable to live without newspapers, magazines and books. Until now, I still prefer the good ol books than the electronic ones. Villafuertes article PaperA blessing to mankind presented interesting facts about the paper industry at present:

In 1994, at least 17 pulp and paper manufacturers were included in the top 1,000 corporations of the Philippines; The industry imports heavily waste paper or recycled paper as its main raw material for the manufacture of paper. Likewise, the industry also imports finished paper products that are not available in the local market or when the quality and price of the local finished products are not competitive; There is need to match the incentives offered by the Philippines vis--vis other Asian countries like Singapore, Indonesia, Thailand, and Malaysia to the pulp and paper industry like tariff duties as well as tax holidays. There is a need for our local pulp and paper industry to invest more for research and development particularly on experimentations on the maximum usage of our own raw materials like indigenous fibers for the manufacture of pulp and paper; The industry is composed of pulp and paper mills. Pulp mills mainly produce paper making fiber from wood pulp taken from timber. On the other hand, paper mills manufacture paper from paper making fiber or waste paper; The industry gives employment to about a million Filipinos more or less. The total payroll amounts to less than P3 billion; The growth of the pulp and paper industry grows proportionately with our economy; and To many people, the pulp and paper industry is mainly identified with the promotional materials that abound during our elections. The pulp and paper industry is more than the paper requirements during our national and local elections. Euromonitor International stated that the writing instruments industry had a positive value growth last year, 2014. Moreover, the change in basic education system to K-12 will be an advantage to performance of the said industry. It is expected to record constant value performance, however, at a slower pace than in 2014.

There are several players in the paper manufacturing industry. Did you know that most well-known writing pads and notebooks in the country are locally-made? One of the oldest and well-known paper manufacturer in the Philippines is Sterling Paper. It is founded by a Filipino-Chinese businessman who established his first shop at Binondo, Manila.

COMPANY PROFILE: STERLING PAPER GROUP OF COMPANIESHistory and GrowthSterling Paper Group of Companies started out as a manufacturer of photo albums and stationaries. In 1946, Lim Seh Leng established Central Book Store, Inc. (CBS, Inc.) at Binondo, Manila. Today, the Sterling Paper Group of Companies has grown not only in its paper products, but also through its other ventures.

It has realized its mission statement of being the leading company in its field by achieving total quality in its production and by fostering strong bonds with its customers, suppliers and employees.Sterling Products are exported to Hong Kong, Malaysia, Singapore, India, Egypt, Latin America, South America and the United States.Through his interest in photography, Lim Seh Leng started Sterling Bookbinding business with the Sterling Family Photo Album as its main product. Years later, he manufactured letter sets, stamp albums, photograph books and grew his business from two employees to thirty. His residence at Kalookan City also became a business operation center. Lim Seh Leng also imported school and office supplies around this time. In 1961, he changed his companys name to Sterling Paper Products Enterprises and he expanded his business abroad.Upon his demise, his wife, Maria Co Chiao Ti Lim and their children: Henry, Joseph, Willy, Gerry and Evelyn took over the operations. In 1970s, Sterling Notebooks was introduced. Sterling Notebooks are one of the best quality and most sought-after notebooks nowadays.

Because of the companys massive growth. A five-hectare production plant was constructed in Marilao and a distribution center in Meycauyan, both in Bulacan. Together with its expansion, the company was incorporated into Sterling Paper Products Enterprises, Inc.

In 1980s, Sterling started producing and selling gift wrappers and greeting cards with the creation of StraightLines International. More products were added to the lone such as notes, bags, puzzles, board games and wall charts. Sterling Greetings was then proudly introduced as the only completely Filipino greeting card brand.

In 1984, Expressions branches were established with the first one at Carriedo, Sta. Cruz, Manila. Expressions is a retail outlet that sells school and office supplies, it also offers photocopy and binding services, much like National Bookstore. Currently, Expressions has 12 outlets and most of which are located at accessible places, near the schools or inside the malls.

Through CBS Inc., Sterling continued to import well known brands such as Pentel, Olympia Calculators and Orion Rulers for its school and office supplies. Honsteel, Bristol and Singbee for its office furniture and toys like Little Tikes.In 1992, Sterling entered in the real estate industry with the creation of S.P Properties, Inc. and among its ventures are the Sterling Industrial Park in Meycauayan and Sterling Technopark in Carmona, Cavite.In 1996, the company moved its main office to Makati City called Sterling Place. It accommodated not only the Marketing, Finance and Administrative Departments but also a showroom where all the products of the company are showcased.Sterling Paper Group of Companies CEOHenry Lim Bon Liong is the Chief Executive Officer of Sterling Paper Group of Companies, S.P. Properties, Inc., SL Agritech Corporation (SLAC), as well as a member of the governing council of the Philippine Council for Agriculture, Forestry, and Natural Resources Research and Development (PCARRD).SLAC is the leading research development and production of superior hybrid rice company in the Philippines. It is a subsidiary company of Sterling Paper Group of Companies. SLAC was founded by Henry Lim Bon Liong in 1998. He is the brains behind the sought-after Doa Maria rice. It is now the major distributor and exporter of hybrid rice throughout the country and abroad Malaysia, Singapore, and Indonesia.

Mission and VisionOur MissionWe would like to be a leading company in our industry by achieving total quality in our production and fostering strong bonds with our customers, our suppliers and our employees.

Our VisionThe Sterling Paper Group of Companies will not only be a leader in its respected industry in terms of sales and profits, but in terms of innovation, cost-efficiency, rightsizing, less bureaucratic and diversification to other product lines and field of business in order to achieve a super business status in six year's time.

"I strongly believe that if we work together we can achieve our vision and in the process create a super business that will be admired by our customers, our suppliers and our society."Mr. Henry Lim Bon Liong Chairman and CEO

A SUBSIDIARY: STERLING PAPER PRODUCTS ENTERPRISE, INC.VisionTo be the leader in all the industries that we are involved in, through passionate quest for innovation, diversity and synergy.

Mission We are committed to foster strong bonds through customer intimacy, and continually innovate to provide high quality products and services. We are committed to give our suppliers sustainable business assuring them of a long term and mutually beneficial partnership. We are committed to provide our employees opportunities for career growth, improvement of their way of life and development of their skills by creating an avenue for employees to share their ideas and talents in a stable and growing organization. We are committed to deliver the best possible returns to our shareholders investments. We are committed to better community where we are involved with.

Three Strategic Pillars Operational ExcellenceTo efficiently and effectively produce products and services at the right time, at the right quality, and the right quantity and at the right place with the least possible cost.

Customer Intimacy To develop and maintain good relationship and strong bond with the Customers To determine customer needs and provide quality products and services to assure customer satisfaction and loyalty

Product LeadershipTo be a prime mover that leads the industry and provides quality and innovative products with excellent designs that meets customer needs.

Shared ValuesLeadership We listen, inspire and pave the way to empower our peopleIntegrity - We uphold honesty, truthfulness and consistency in every action that we takeTeamwork - We collaborate, synergize and work harmoniously to achieve common goalsExcellence We continuously strive to achieve the best output and exceed expectationsRespect for each other We treat each other with mutual trust and understanding in view of our individual uniquenessReputation We work together to ensure that the company maintains a positive image as a remarkable and impressive company admired and respected by many.

Awards and RecognitionYear 2003 Most Outstanding Manufacturer of Paper Products Awardee

Most Outstanding School and Office Supplies Brand Awardee( Consumers choice awards and Dangal ng Pilipinas annual Awards)

Top Paper Products Manufacturer Award ( 18th Annual Consumers Excellence Awards)

Outstanding Paper Products Manufacturer Award

Year 2004 SPPEI : Superbrands Seal of Excellence

Number 1 Stationery Award(2nd National Shoppers Choice Annual Awardee)

Best Call Center Award(National Product Quality Excellence Awards)

Year 2004 2005 Outstanding Paper Products Manufacturer 19th and 20th National Consumer Excellence Award

STERLING NOTEBOOKSterling Paper Products Enterprise, Inc. (SPPEI) is one of the top manufacturers and distributors of paper products in the Philippines. It has the most varied product categories including notebooks, specialty papers, writing pads, photo albums, coin banks, story books, game boards, coloring books, and other school and office supplies. With more than 60 years of manufacturing and product distribution experience, and equipped with its own production plant and modern storage facilities, Sterling Paper always meets and exceeds customer demands.

Sterling is also a respected brand in the international market. Its quality products caters to the market abroad through its affiliate, LSL International located in the USA, Japan, Taiwan, Hong Kong, India Middle East, and to some South American countries. Target Market and PositioningThe companys tagline is Definitely High Quality, definitely Sterling. The company has been recognized by various consumer groups in the Philippines. Sterling Paper was bestowed the Super Brands Seal of Excellence for its unmatched product quality.

Sterling Notebook is one of the oldest and most competitive products in the market. SPPEI takes into consideration the preferences of its consumers. Thus, the company offers a wide range of notebooksfrom spirals with colorful designs to neutral ones. SPPEI also manufactures affordable, quality and elegant planners which are suitable for both students and professionals. The company caters to the upper class and middle class market.

Marketing MixSPPEI aims to To efficiently and effectively produce products and services at the right time, at the right quality, and the right quantity and at the right place with the least possible cost.

Because of the exquisite designs of its notebooks, Sterling Notebooks are often often misconstrued as expensive. Guess what? Sterling Paper products has a price range of as high as P200+ and as low as P20. The company is big on advertising. In 2013, Kathryn Bernardo signed a contract as the newest endorser of Sterling Paper Enterprise Inc. With the presence of one of the most popular teen celebrity and a role model for young girls in the country, Sterling Paper became aggressive with its advertising campaign. Kathryn Bernardo got to promote various products such as Sterling Clipbinder for high school and college students, Sterling Hello Kitty notebook for the younger girls, Kathryn planner and more.

The company is active on social media as well, having its own website and twitter account @STERLINGNOTESPH where it announces different events, activities and promos for Sterling Notebooks. Sterling Papers promotions include Meet and Greet with Kathryn Bernardo, a raffle to win a personalized Kathryn 2013 planner.

Sterling Notebooks are available at the most accessible placesall Expressions retail outlets, as well as, National Bookstore branches at the malls and near schools in Metro Manila, Luzon, Visayas and Mindanao provincial areas.

CompetitionSterling Notebooks can compete with National Bookstores Best Buy in terms of price, wherein the latter costs P20 per notebook. Another competition is Cattleya. This time Sterling levels with Cattleya in terms with quality, but the former offers a good quality product at a way more affordable price. A Cattleya Notebook costs about P40.

PROBLEM STATEMENTWhether or not Sterling Notebook should tap into the lower C and D market to compete with Divisoria notebooks or maintain its trademark as the Definitely High Quality product at an affordable price?

REFERENCES

Villafuerte, N.F. (2014). Paper A blessing to mankind. Manila Bulletin. Retrieved from: http://www.mb.com.ph/paper-a-blessing-to-mankind/

Writing Instruments in the Philippines. (2014). Euromonitor International. Retrieved February 28, 2015, from: http://www.euromonitor.com/writing-instruments-in-the-Philippines

Company Profile.(n.d). In Sterling Paper Group of Companies. Retrieved March 1, 2015, from: http://www.sterlingpaper.com/company-profile/

Mission and Vision.(n.d). In Sterling Paper Group of Companies. Retrieved March 7, 2015, from: http://www.sterlingpaper.com/company-profile/

About the CEO.(n.d). In Sterling Paper Group of Companies. Retrieved March 7, 2015, from: http://www.sterlingpaper.com/about-the-CEO/

Whats New.(n.d). In Sterling Paper Products Enterprises, Inc. Retrieved March 8, 2015, from: http://www.sterlingpaper.com/company-profile/

About Sterling Paper.(n.d). In Sterling Paper Products Enterprises, Inc. Retrieved March 8, 2015, from: http://www.sterlingpaper.com/sppei/#!/page_About

Portfolio .(n.d). In Sterling Paper Products Enterprises, Inc. Retrieved March 8, 2015, from: http://www.sterlingpaper.com/sppei/#!/page_Portfolio