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LOGO
TEAM:
Joy B. Sarmiento
Anna C. Cruz
Bobby L. Echon
DR. LEMUEL L. MAGRACIA - Coach
2016
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PRODUCT
PAPER & BOX Handicraft started as a manufacturer of Christmas Decors that has been
distributed to bookstores nationwide.
Because of its seasonality, the company
diversified in a related product line (boxes) as an appropriate strategy for its strong
competitive position. The concept of synergy that two businesses or product lines will
generate more profits together is considered better since the point of commonality is
similar in terms of technology, customer usage, distribution, marketing and production
skills, & product similarity. Line extensions being offered by PAPER & BOX in packages
like ceramic & glass materials provides additional value in extra earnings.
BRAND MANAGEMENT
Retail Boxes, Customized Boxes, Hot Stamping, & Ribbon printing were added to the list
of product portfolio. Products offered come in different sizes, forms, packaging, &
options. Admittedly, though the officers-in-change (Owners children) recognized the
important role of products in generating sales and profits and in the creation of growth
opportunities, branding was not considered in their product lines. Generally, companies
marketing objectives are to achieve the highest overall performance from the portfolio
of products and this requires successful Brand Management that involves: new product
identity introductions; effective targeting; and positioning which are not yet present
since PAPER & BOX doesnt employ Marketing Professionals or Sales People. Brand
management of the portfolio is an on-going challenge that involves people across all
business functions. Products of PAPER & BOX are being offered by product line. Itll be
better to embark on product line branding so therell be a representation of product
categories & for proper identification/focus.
Sales generated through the familys sales efforts are satisfactory based on their
production people & facilities capacity, but a written Marketing Plan & Strategies are still
recommendatory to support their forecasting, inventories, expansion plan, additional
funding from financial providers, machinery procurement & capitalization. This could be
one of the reasons why the company cant accept high-volume of orders since they are
limited to their production capabilities & lack of situational analyses as one of the
requirements of a Marketing Plan.
PRICE
List of Prices is provided in retail items since the designs and specifications are already
determined (please see attached price list). However, Prices of items under Corporate &
Custom-made lines varies on the designs and specifications requested by the clients.
PAPER & BOX Management claims that their prices in the market are the lowest (aside
from the China-made products) and considered as competitive.
Aside from the Government policies, the dictates of Buyers on payment date & Suppliers
collection dues are critical in analysing the external situation leading to proper pricing.
Majority of the sales are coming from corporate accounts like with the National
Bookstore. Payments are collected in corporate dealings in 4 to 6 months while
Suppliers require payments on raw materials in 30 days. Price does not vary on terms
since there is no actual study or analysis being done. Subsequently, the Management
claims that the bulk of their earnings go to labor expenses & taxes plus the
considerations of fund management, annual forecasting is necessary.
PROMOTION
ADVERTISEMENT
Promotion of products of PAPER & BOX involves maintenance of its social media account
via facebook. Formerly, the company maintains its own websites to promote their
products but decided to terminate it due to the high maintenance cost. The social
media account is free and has the potential of reaching many prospective clients.
However, upon looking at the other players inside the competition, all of them still
maintains their own websites to promote their products and to cater for inquiries &
customer service.
The company doesnt use any form of media except for the social media account
mentioned except for the print ads being initiated by National Bookstore on its calendar
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PAPER & BOX doesnt maintain memberships to business organizations and support
groups that can be sources of potential information to reach new markets & promote
products to different clients. Philippine Chamber of Handicraft Industries, Inc.; the local
Philippine Chamber of Commerce & Industry; Rota International; and the likes aid
proprietors in business development, promotion, and trainings. This approach is a good
area for recommendation.
SALES PROMOTION
PAPER & BOX joins promotional activities being conducted by the Department of Trading
& Industry. This approach in terms of expenditures is much greater than spending on
advertising, and as large as sales force expenditures but this communication technique
offers advantages to target buyers, respond to special occasion, and create special
incentive for purchase.
PLACE
CHANNELS OF DISTRIBUTION
Bulk of the orders is served through National Bookstore (NB). Technically, NB is not
only a client but also a channel to reach the end-consumers. Sometimes, independent
merchandisers or intermediaries approach the company for some corporate dealings.
Though putting shelf spaces in the malls are being considered in the future, the
management prefers to conduct sales & distribution on their own to address price issues
& financial concerns.
The main product is considered as value-added good and is used by corporate clients
and buyers-on-occasion as packaging. The companies using the customized boxes are
also considered as a channel of distribution. Other channels like retailers & dealers are
not utilized currently.
PACKAGING
Boxes are utilized to keep the merchandize in perfect form up to its destination. In
some cases, laminated films or plastics, brown-smooth paper wrappers are being used
to ensure its safety & protection from movement damages.
POSITIONING
Positioning deals with who the customers are and the selection of specific areas of
marketing concentration in terms of products, market, & geographic locations. In the
case of the company, the positioning objective is to match the organizations capabilities
with the customer value requirements for the target market. There is no specific
positioning strategy being applied by the company except for the concept of the
objective. It is therefore a good recommendation for the organization to have a simple
approach to realize its positioning objective as its strategy to integrate the marketing
program components into a coordinated set of initiatives.
PEOPLE
MARKETING SUPPORT
The backyard business of PAPER & BOX already supports over 70 employees supporting
the need of their Marketing activities. The number is composed of housewives and outof-school youth who once were bystanders in the community. 20 are considered
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regulars and are enjoying the law-required compensation and benefits. Most of them
are contractual and are being paid in a piece-rate system. According to Management,
this approach is the most applicable to sustain the growth of their business since the
industry is labor intensive. In comparison, urban-based artisan employed significantly in
numbers of both men and women on a full-time basis, while rural-based artisans tend to
work part-time at home. This has both positive and negative potential consequences.
On the positive side, handicraft employment can supplement agricultural labour and
unemployment.
SWOT ANALYSIS
I.
INTERNAL FACTORS
STRENGTHS:
WEAKNESSES:
II.
EXTERNAL FACTORS
OPPORTUNITIES:
THREATS
Threat of substitute products is high. PAPER & BOX recognizes that its main
products offered are already in the maturity stage. New innovative products
may be launched in the market.
Bargaining power of Buyers is high. Since majority of the sales is coming from
NB & similar organization, the prices varies on their dictates because they are the
ones maintaining the direct relationship with the end consumers. PAPER & BOX
doesnt have the capability to monitor the end-consumer behaviours. The
clients schedules the collection in 4 to 6 months after the actual delivery of
merchandize.
Bargaining power of suppliers is low since the country is rich in natural resources
& plenty of suppliers are available but the normal term for payment is 30 days.
Table # 2
EVALUATION ON MARKETING
AREAS OF CONCERN
IMPROVEMENT
NECESSARY
IMPROVEMENT
DESIRABLE
REASONABLE
SATISFACTORY
Market Share
Sales Forecast
Product Planning &
Devt.
Channel of Distribution
Sales Force
Management
Customer Relations
After Sales Service
Packaging
Advertising & Promotion
Pricing
Export Activities
Marketing Strategy
Marketing & Sales
People
Support People
Raw Materials Supplier
An evaluation survey (table 2) was also conducted to support the need for
information and to strengthen the results of the site visit, interviews,
assessment, and craft the best recommendations.
RECOMMENDATIONS
The Marketing path of PAPER & BOX Handicrafts has a lot of rooms for development.
The team believes that the potentials of the company can be maximized though the
following:
1) Create Long & Short-term Corporate Objectives to support the Companys Vision
& Mission.
2) Written Marketing Plan & Strategies is needed to support the firms forecasting,
inventories, expansion plan, additional funding from financial providers,
machinery procurement & capitalization.
3) Annual Sales Forecast as basis for projecting the supplies, labor and taxes. Sales
Forecast can also support realistic pricing, production requirements, and cost of
goods being sold.
4) Comparative Study revealed vast opportunities in the export industry where
PAPER & BOX also indicated strong potential and capability. Based on the
number of people & product lines offered, the company should explore the
possibilities of business engaging in the export market. However, membership to
PCCI, PCHI, & other groups is necessary to gain clientele information, training, &
current trends.
5) Trainings of people & research & development should be given priority to remain
knowledgeable on current trends.
6) Embark on Product line Branding so therell be a representation of product
categories & for proper identification, evaluation, & focus.
7) Tap other social media sites to gain product exposures for free like in Twitter,
OLX, Sulit.com, & AyosDito.
8) Create Marketing & Sales force to directly interact with buyers, and to have
access to market, competitor knowledge, provide basis of sales forecast and
feedbacks.
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