I.

Executive Summary

The said company is located at 31 B Speaker Perez Street in Quezon City, it is a

building owned by Mr. Ricardo M. Joson which is also the Chief Executive Officer

of ISSI Information Technologies Inc., (ISSITECH). The company specializes in

IT solutions and other engagements such as sales, rentals, services, and

maintenance of various Personal Computers, Networking Solutions, Computer

Systems, Small and Large Scale Printers. The company uses telemarketing as a

form of advertising to acquire companies with the same needs. It may not look

sophisticated and timely, but it is enough to generate profit and to get along with

the current trend in the competitive market.

Since the company operates in the city with high business traffic such as

Ortigas, Makati, Ayala, Makati, Manila, and Paranaque to maximize the cost of

gas and delivery, the proposed marketing plan aims to expand the company’s

reach in outside the metro. The proposed strategy is to quarterly acquire new

clients in other cities such as Caloocan, Malabon, Navotas, and Valenzuela. This

strategy will surely affect the cost of gas and delivery. However, this is a positive

thing for the company as it will help them to boost their sales. The second

proposed strategy is to digitalize the company a bit since the company is

currently using Telemarketing as their main strategy to gather clients. With the

competitive market, the plan is to hire social media intelligence that will help the

company to keep up and stay with the trend and to acquire new clients on social

media. The social media intelligence is called "Konvoworks" which will handle the

Company’s social media for the three years.

I. Industry Background

A. General Overview of the Industry

ISSI Information Technologies Inc., (ISSITECH) is under the Retail and

Service Industry, which involves buying software, or any merchandise from their

direct manufacturer or wholesaler and selling it to their targeted customers for

their personal use that merits a profit for the goods and services that cover the

company's expenses. According to the "Important Part of Retail Business"

retrieved from ivythesis.typepad.com, Retailing is a fixed market location of

goods and services which businesses operate by buying goods from the supplier

in large quantities to provide to consumers and make a profit and actually could

include anything from delivery of products to consumers and consumer product.

ISSI Information Technologies Inc., (ISSITECH) has been engaged in the

sales, rentals, services, and maintenance of various Computer Systems,

Networking Solutions, Personal Computers, Small and Large Scale Printers, and

Peripherals for almost 19 years.

A.1 Market Size

In the year 2015, the specialized stores in Retail Industry hire the highest

number of workers; the total employment of the sector was estimated to be

981,310. Laborers were checked up to 970,473 (98.9%), and the rest were

working proprietors and unpaid workers. The total employees worked for

establishments with TE of 20 and over garnered a numerical data of 47.0 percent

which is 460,882 in numbers and for the remaining 53.0 percent, the laborer

worked with TE of less than 20. 1

Three of the major retail establishments provided almost half of that total

labor force of the sector which is 47.6% or 467,273 workers. The retail sale of

goods in specialized stores garnered a numerical data of 18.2% or 178,888;

followed by the retail sale in non-specialized stores with a numerical data of

17.4% or 170,899; and for the retail sale of other household equipment in

specialized stores garnered a numerical data of 12.0% or 117,486, and lastly for

the non-specialized wholesale trade had the lowest number with 1,065

employees.

Fig.1 Market Size of Retail Industry via psa.gov.ph

1
https://psa.gov.ph/wholesale-retail/aspbi-id/136996

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A.2 Historical Market Trends

The emergence of online retail (2016)

The Philippines is known for the slowest and most expensive internet

connection in the world, but this has not hindered the growth of online shopping

in the Philippines. Online stores from various industries such as retailing continue

to take advantage of the rising opportunity to explore new markets and create

specialized online stores and websites for services such as Zalora and Lazada

for electronics, fashion, and other consumer items, while sites like Lamudi and

Moneymax continue to increase in familiarity in providing specialized services in

finance, and automotive, real estate industries.

The rise of Social Media Platforms (2018)

The rise of Instagram Promotions, Facebook Ads, and other applications

changed the basic level of how retailers interact with buyers. These platforms are

the pathway to see and asses if the business is relevant to the clients and the

audience. It has been said that Marketing is the activity for creating;

communicating and delivering offerings that have value to customers, with the

rise of technology, customers and clients are now tech-savvy which means in

every corner of their life, technology is related and visible. The use of social

media platforms is now in the retail trend to ramp up a business and increase a

brand's visibility in the market by building relationships and communicating to

potential customers digitally.2

2
https://home.kpmg/xx/en/home/insights/2018/06/global-retail-trends-2018.html
In-home services, delivery, and consultations pervade the market (2018)

For this trend, it basically means that e-commerce will still be an inevitable

form of profit, but the in-store experience is still just as relevant and should

expect to grow since Consumers no longer want to leave the house to acquire

their need, innovative ways of attracting consumers and providing conveniences

are booming.

Real estate developers to diversify into the retail segment. (2017)

The real estate developers are starting to take advantage of the available

opportunity in the retailing industry as they continue to build mix-projects that

provides the ultimate convenience in retailing experience. Such as diversifying to

vast shopping, technology hub, cinemas, and other options. Major developers

such as Ayala Land, Inc. and Megaworld have become very aggressive in the

expansion of their retail portfolio to gather as many brands as possible. 3

Brick and Mortar stores will offer a much more digital experience (2018)

Brick and Mortar stores will offer much more digital experience by using

technology to deliver their means and make it easier for customers to find items

they need and gain more product information. This should lead the way for a

faster transaction between the retailer and the customer. According to Pickard

(2018), the continuous evolving of physical stores will offer customers more

tangible shopping experience where they can see products instantly before they

3
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Page | 5
purchase the product, the stores are starting to capitalize on the digital

experience and add in extras to incorporate more of the benefits of online.

“The physical store retail format will continuously evolve into smarter

environments. Which will help brands to truly incorporate technology for the

business to create 4a connected store is not just for the ‘concept of it,' but also for

the benefit of the consumer at the design.” Melissa Gonzalez, Founder,

TheLion’esque Group, and Author of The Pop-Up Paradigm

Investing in the Organization and Employees (2015)

The need to retain, attract, and develop a workforce that meets the

growing and changing demands of the marketplace is more vital than ever. To

grow, retailers are now making sure they are attracting and retaining talent with

the correct set of skills. According to Denise Lee John (2015) from the author of

“What Great Brands Do” companies will start to invest on their employees for

their frontline experience as the company realizes that paying higher wages,

equipped and experienced employees not only helps them fight the battle for

talent but also enhances the customer experience. The adaption of companies to

different organizational structures will also help to improve customer experience.

Treat Media Store as the Store, and the Store as Media (2018)

Gradually, the media is becoming the store. The incorporation of

technology to every single piece of media such as social, online, conventional or

mobile, retailers found a way to direct path of purchasing anything. On the other

4
https://home.kpmg/xx/en/home/insights/2017/06/global-retail-trends-2017.html
hand, the physical store is becoming a powerful form of experiential media. The

store should be able to display a powerful brand story through every corner and

provide lots of opportunities for immersive product experiences, and expose

shoppers to the entire environment of product experts, purchase channels,

added-value services, and loyalty tools. If the construction of customer

experience is great, the store is the most powerful form of media at your

disposal. Dough Stephens (2016) Founder of Retail Prophet, and Author of the

Retail Revival.

A.3 Key Success Factors ( Online discussion with the Company CEO)

When it comes to Retail Industry, the playing field has drastically changed

over the years. Because of the recent developments in the technology and E-

Commerce hence the need for both new and established traditional stores focus

efforts if they want to be successful. Below are some key success factors in the

Industry:

A.3.1 Effective Marketing Strategy

Effective Marketing Strategy is important because this will help the

company to identify its target market and set measurable and attainable goals

that will bring the company to fruition. The vital purpose of an effective marketing

strategy is to ensure the success of an organization.

A.3.2 Effective inventory management

Effective inventory management is also vital for any company, as it is a

current asset on your company's balance sheet. This practice should never be

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underestimated because it is a continuous process of overseeing what goes in

and out of your company and balancing what you have in the warehouse or

company. This is considered as one of the key success factors of the company

because it keeps the stock cost under control which runs a successful business.

A.3.3 Effective delivery

Good delivery management process can enhance a company's brand

image from the perspective of its targeted customer or clients; that's why it is

considered to be one of the key success factors. Good service delivery is the

ability of businesses to meet the customers' demands and deliver the services or

products to the customer punctually.

A.3.4 Effective sales people

Effective Sales People is needed to create a constant contact with the

company’s target audience and carry the prospect through sales and deals. This

factor is important because, to build leads, customers and other contacts, sales

people are needed.

B. General Market Profile

To sum up the behavior of this sector, the retail market is mature and

highly competitive in the developed economies of Europe and North America. On

the other hand, developing economies such as Asia-Pacific, Middle East, and

Latin America have been instrumental in handling market growth. This sector

also sells a wide range of products to consumers and other businesses

specifically hardware, software, and other computer parts. Recently, Time Trade
conducted a survey for 1,029 consumers about their perceptions and habits

around retail shopping. The results yielded a numerical number of 85% that

consumers go into the store to "touch and feel things," on the other hand, 71% of

consumer prefer to shop in Amazon's physical store versus Amazon.com these

statistics displays that retail is seeing a paradigm shift in consumer behavior.

Consumers are doing their shopping or discovery online, then going into the

store for the final purchase decisions.

C. Environmental Analysis

C.1 Political Factors

The situations of a country is a political force that affects the industrial

setting especially the performance and business operation. These actions can be

seen on the regional, national, and international level. Political and government

environment must be prioritized by business owners and managers to know how

these changes and measurement might affect their company.

C.1.1 The Impact of Duterte’s Administration (THREAT)

President Rodrigo Duterte’s administration is filled with reconstruction in

power dynamics, international scrutiny, terrorism, and other security threats. The

proposed dismantling of the power dynamics in the Philippines is a revolutionary

bid by the president. The country will be shifting to federalism from democratic.

As of now, the president turned more than 26 political dynamics. According to

Philstar, Global, the state should expect a vast international affiliation and

involvement if the war on drugs concern is ignored. The campaign war on drugs

thus far resulted in the deaths of more than 3,000 people in just three months,

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mostly in poor areas. Extra-judicial killings and human rights violation sum up the

aggressive anti-drug campaign of the president. The Philippine currency has

reached its lowest since President Rodrigo Duterte took office and the Philippine

peso is the worst performing currency in Asia, 50 pesos for a dollar. Today, the

president is known for his blatant disdain of social justice and concern for human

rights which resulted in a disaster.5

Relevance:

The failure in diplomacy and international relations also influence the future

investors of the country because of the bad reputation the state has. The shift in

power dynamics and uncertainty around the path being taken by the current

administration as well as the blatant disregard of human right by many Filipinos

will affect the foreign and local regarding their investments in the country.

C.1.2 the Effect of Corruption (THREAT)

Corruption and bureaucracy have made the Philippines grossly

incompetent in the world market according to the 2018 World Economic Forum

(WEF) ranking which ranks the Philippines 56th out of 137 listed countries. The

Philippine market has underperformed emerging markets. According to Forbes

which sited corruption, President Rodrigo Duterte is leading a wrong revolution

which causes to divide the country into the weak and powerful in his policies.

Usually, revolutions have noble causes, to help the people and to separate them

from the wrongs. Duterte said in July that corruption is embedded deeply in our

government. The president also said he is having a hard time removing it.
5
https://www.forbes.com/sites/panosmourdoukoutas/2018/08/02/duterte-is-leading-the-wrong-
revolution/#678861f43dfc
Relevance:

This factors will create a less favorable business climate inside and outside

the country which is a severe drag on the nation’s wealth. Corruption and failed

government bureaucracy in the country is bad for business, and it is not good for

the development of law rule, which is a vital part of attracting good foreign and

local investment. It is also relevant to the paper in a way that misuse of an office

for personal gain leads to operational inefficiency.

C.1.3 the Unprecedented booms under Duterte Administration

(OPPORTUNITY)

According to Philstar.com, this administration is on the way to the new

golden era of small businesses. The administration is pushing on more support

for businesses such as micro, small, and medium scale enterprises. With the

recent boom in the tourism and construction industries, this will boost the

expansion of businesses, and new jobs from agriculture, food, basic transport,

and beverage, to entertainment and hotels, service industries as well as the retail

industry.

C.2 Economical Factors

The nature and direction of the economy in which the business operates

are called the Economic Forces. This environment consists of economic growth

levels, unemployment trend, price fluctuation/inflation and changes in the rates

that affect the functionality of the industry. These include factors that determine

the competitiveness of the environment in which the firm or the industry operates.

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Thus, this might contribute to the success or failure of the company,

distinguishing the different economic forces that have a huge impact on the firm

or industry.

C.2.1 The increase in Economic Growth (OPPORTUNITY)

In the year 2017, the gross domestic product (GDP) of the country grew

by 6.7%, somewhat below 2016 which was 6.9% regarding growth. With this

kind of result, Philippine still placed among the fastest-growing economies in

Asia, followed after China’s 6.9% and Vietnam's 6.8%. The Philippine economy

grew by 6.6% in the last quarter of 2017, somewhat below the 6.7% median

forecast in Bloomberg's poll.6

Relevance:

As a result of the fast growth of our country's Gross Domestic Product, all

local business can now use the opportunity to grow. Companies are expected to

expand and take more risk when the economic climate and conditions are right.

The Gross Domestic Product (GDP) needs to be taken into account in identifying

the value of the business investment and portfolio in the current and expected

future. This is also relevant in determining the shift of production possibility curve

of the country to be able to meet the needs and demand of the public.

C.2.2 The Annual Increase in the Prices of Commodities, energy, food and

other goods and services in the market (THREAT)

It can be concluded that the whole economy is affected. It can significantly

affect the cost of living, doing business: borrowing money, mortgages and other
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https://www.rappler.com/business/194294-gross-domestic-product-philippines-q4-2017-economic-growth
corporate bonds. Inflation is usually caused either by supply and demand; it can

affect the consumer in a way that they pay more for the same goods and

services. The inflation hit hardest those businesses with low profit and have not

received any increase in profit over time which results in businesses have to

continually get innovative to keep up with the increasing prices of goods. 7

Relevance:

This factor is a threat to the company and the industry. The continuous

increase in prices of commodities and other energy can hinder businesses to

effectively deliver their goods and services to their targeted customers/clients

such as the increasing cost of transportation, and manpower.

C.3 Social Factors

The product and service of a company must be wanted for an organization

to survive; thus consumer behavior is a separate environment that needs to be

analyzed carefully. Social forces include traditions, society's expectations of

business, social trends and consumer psychology. Social factors can affect a

person's attitudes, opinions, and interests; therefore, it can impact the sales of

product and revenues earned by an organization.

C.3.1 Acceptance of internet commerce (OPPORTUNITY)

The modern way of shopping is through internet retailing. This growing

technological savvy generation usually makes use of smartphones and mobile

devices and internet services to make their purchase. Since then e-commerce

7
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has emerged as a major shopping platform in the world. Although for the past

three fiscal years, the sector’s market size tripled which internet retailing

accounted for a numerical data of 1.5% of the total retail sales in most of the

Asian countries since Mobile-first sites, dedicated apps, emerging payment

methods, and other tools are making shopping on smartphones much easier. 8

Relevance:

This is both an opportunity for the company and industry to ramp up their

online platforms, also to make their company informative. Internet retailing is a

recent trend in the industry, which is completely contemporary and innovative

that has taken this sector to a new dimension. The internet has recently become

a reliable and efficient way of purchasing products given that consumers grew

confidence in online shopping's consistency.

C.3.2 the Philippines Being the Top Users of Social Media (OPPORTUNITY)

Filipinos lead the world in 2014 in the amount of time spent using social

media and the internet. Social Media is widely used in the Philippines, one of the

main reason for this is that around 12 million Filipinos are working overseas, and

the only thing that primarily connects them to their friends and families is the use

of social media. In the year 2017, Facebook.com became the most visited and

used social media in the Philippines, making the country the social capital of the

world. The reasons why Filipinos use social media is to connect with friends and

families, to meet new people, to share their unique life experiences and for

company purposes.

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Relevance: (Opportunity)

With the tremendous usage of social media in the country, this could be

an opportunity, since businesses can now inform their target market effectively

with the use of social media advertising to gather more clients and ramp up the

company sales. The social media usage of the country will significantly benefit

businesses since many of the country's population is now using social media as

their platform or venue for marketing campaigns.

C.4 Technological Factors

Technological factors are one of many external factors that can affect

businesses in a positive and negative way, and are an integral part of the PESTE

Analysis. It can be defined as factors which relate to the presence and

development of technology, on either a local or global scale. Technological

advances can provide numerous advantage. The development of technologies

can positively improve and help the productivity of an organization, whether

regarding labor force, strategy, and costs.

C.4.1Management of Inventory (OPPORTUNITY)

Managing inventory practice has always been very costly for businesses,

the innovations of this generation will help to cut the cost of inventory

management by using sophisticated software technology that can track inventory

after its purchase cycle and offer real-time information about the product to

management, inventory management has improved and is costing companies a

lot less than the traditional tracking of inventories.

Relevance:

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 This is an opportunity for the industry and company to lessen their

expenses. The inventories will always be monitored. When technology is used to

keep track of inventory, the store merchandise will be more organized, and the

probability for employee theft is drastically decreased.

C.4.2 Price Auditing (OPPORTUNITY)

The cost of price-auditing has always been a costly and time-consuming

process for several businesses ever since. Companies need to ensure that they

are not overcharging or undercharging their customers by price auditing.

Technology has streamlined this process by automating price checks when

products and another mode of services are scanned. The price auditing process

creates more accurate information and saves employees a lot of time which also

strengthen the trust between the store and customers. 9

Relevance:

This is an opportunity for the industry and company to save a lot of money,

time and make the businesses more accurate in terms of transparency.

III. Competitive Analysis

Competitive Analysis is a field of strategic research that specializes in

gathering information about the competitors and assess any of its weaknesses

which can be exploited. This is proven an essential tactic to find out what is the

current strategies implemented by your competitors. It can also help the

company to develop a strategy that will prevent your competition from entering

the market.

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https://www.techfunnel.com/information-technology/role-of-technology-in-retail-industry/
A. Competitor Overview

A.1 PC Depot: PC DEPOT, INC. is one of the Philippines most dominant

player in PC retail, located in Buchanan, San Juan, Philippines. The

company started to enter the industry in the year 2001 which has grown to

provide its client comprehensive IT solution. PC packages, laptops,

projectors, networking products, printing, digital imaging, latest computer

accessories, and et cetera.

A.2 ATI Technologies: American Technologies, Inc. was established last

1995 located in Wack-Wack Village, Mandaluyong, Philippines. The

company consists of several world-renowned brands that have an

excellent technical support team. As one of today's major players in the

Information Technology distribution industry, ATI has built a distinct

reputation in the reliability of product coupled with technical support

excellence.

A.3 Magellan Technologies: Magellan technology is located in Simon

Street, Quezon City, Metro Manila. Magellan Technologies was started in

1996 to provide embedded hardware and software solutions for the

medical and automotive industries, but the changing trends influenced the

company to switch into a more flexible market.

B.Competitive Positioning

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 Fig. 2 Brands Positioning

Based on the graph above, the main success factor chosen by the Market

in Metro Manila is Price and Warranty Life. When it comes to technology, the

most important success factors are warranty and price; most clients disregard the

high and low price as long as the warranty of the products is long enough to

match their client's preference.

PC Depot in San Juan is positioned as High in price and Long in warranty

life, Magellan Technologies is positioned as Low in price and Long in warranty

life, and lastly, ATI Technologies is positioned as High in Price and Short.

C. Estimated Market Size

 Estimated Market Size
9%

7%
2% PC DEPOT
MAGELLAN TECHNOLOGIES
ATI TECHNOLOGIES
Others

83%

Fig. 3 Estimated Market Size

Base on the figure above, the market leader among the 3 direct

competitors of IssiTech Inc. is PC Depot with a numerical data of 50% or 30

million as per annual BIR report, the second leader is Magellan Technologies

with a numerical data of 40% or 20 million as per annual BIR report and the

lowest is ATI technologies with a numerical data of 10% or 5 million per annual

BIR report.

D. Comparative Analysis of Marketing Strategies

Company Product Price Place Promotion

PC Depot Top Brands Competitive Operates in any part of Facebook
Pricing the Metro page
Magellan Top Brands Fixed Pricing Operates in any part of None
Technologies the Metro
ATI Top Brands Fixed Pricing Operates in any part of Company
Technologies the Metro Website
Table. 1 Comparative Marketing Strategies

Page | 19
E. Comparative Analysis of Strengths and Weaknesses

Company Strengths Weaknesses

PC Depot Competitive Pricing, Weak after sales
High inventory
Magellan Technologies High inventory Weak after sales
ATI Technologies Strong after sales Low inventory
Table 2. Comparative Analysis of Strengths and Weaknesses

IV. Internal Analysis

A. Company Overview

ISSI Information Technologies Inc., (ISSITECH) is a duly organized

corporation under Philippine laws. A team of technically-experienced

people established the company in January 2000, alongside the rapid

growth and limitless potential in the Information Technology industry. ISSI

Information Technologies Inc. contemplates a vision of being one of the

major players in the IT field.

On February 16, 2001, the company received the imprimatur of the

Securities and Exchange Commission, thus, making its corporate

existence legal. The company has since engaged in the sales, rentals,

services, and maintenance of various Computer Systems, Networking

Solutions, Personal Computers, Small and Large Scale Printers, and other

Peripherals. Since then, ISSITECH was able to established and

maintained strong contacts with computer manufacturers and distributors

to keep the company abreast with the latest products and technology

trends. This enables the company to serve best its growing list of already

satisfied clients and envisions future demands from the market. Currently,
 ISSITECH is recognized as one of today's premier systems integrators

dealing with the widest reliable brands of Information Technology products

and solutions.

B. Company Positioning

The company is perceived by its clients to be prestige, fast-moving,

high performance and transparent transaction conducted every after

purchase. Also, ISSI Information Technologies Inc., (ISSITECH) win its

customers with the warranty and quality of their retail goods and other

services.

C. Company Strengths and Weaknesses

ISSI Information Technologies Inc., (ISSITECH)

Strength Weaknesses
Strong client contacts and Lack of online presence
referrals
A huge network of a loyal Telemarketing is the only strategy
customer who relies on after they use to gather new clients
service and delivery rather than
the price
Professional and motivated The company cannot operate
employees outside the Metro
Suppliers are top brands and well Lack of inventory management
known in the Philippines
Technical Support
Good After Sales Support
20 years in the industry.
Table 3. Company Strengths and Weaknesses

D. Consumer Profile

For businesses to group their marketing and advertising purposes,

consumer profiling is conduced to describe their consumer categorically,

Consumer Profiling companies and marketers can find more success in

selling a particular product and increase profits. To deepen the knowledge

Page | 21
about the main consumer of business, the demographic, geographic, and

psychographic characteristics, as well as buying patterns,

creditworthiness, and purchase history are collected by the company to

intensify its information regarding the current consumer.

D.1 Customer Segments

The customers of ISSI Information Technologies Inc. are identified based

on the following key segments:

ISSI Information Technologies Inc., (ISSITECH)

Geographic Demographic Behavioral Psychographic
Metro Manila - Companies - Quoting: Clients Clients don’t care

(Ortigas, Ayala that use usually choose 3 or about the price

Makati, manila computer and more retail company as long as the

and Paranaque) information and compare their warranty life is

technology pros and cons, then long.

proceed with the

purchase.

- Usually, order in bulk

- Seek promotional

Discounts
Table 4. Customer Segment

D.2 Customer Needs

The Chosen Company provides a wide array of products and service:

 ISSI Information Technologies Inc., (ISSITECH)
Customer Need Company Offer

Computer systems and information rentals, services, and maintenance of

technology various Computer Systems,
Networking Solutions, Personal
Computers, Small and Large Scale
Printers, and Peripherals

Table 5. Customer Needs

ISSI Information Technologies Inc., (ISSITECH) is a retail company

that uses telemarketing as its marketing strategy, with the help of phone

directories, the company can connect and create a transaction with well-

known brands and determine what are their exact needs.

E. Company Marketing Strategy Audit

Company Marketing Strategy Audit refers to the current internal and

external comprehensive, systematic, analysis, evaluation and the

interpretation of the business marketing environment alongside with its

goals, objectives, strategies, principles to relate to the areas of problem

and opportunities which addresses the action or plan to be executed.

E.1 Segmentation, Targeting, and Positioning

ISSI Information Technologies Inc., (ISSITECH)

Segments Target Positioning
Customer

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  Geographic - Metro Manila (Ortigas,  Small to  High Service
Ayala, Makati, manila and medium Performance
Paranaque) businesses
 Government  Top Quality
 Demographic - Companies that use and brands
computer and information technology
 Good after
 Behavioral - Quoting: Clients usually sales support
choose 3 or more retail company and
compare its pros and cons, then  Long
proceed with the purchase. Warranty Life

- Usually order in bulk  Professional

- Seek promotional Discounts

 Psychographic - Clients don’t care
about the price as long as the
warranty life is long.

Table. 6 Company STP

E.2 Company Marketing Mix

ISSI Information Technologies Inc., (ISSITECH)

Product Price Place Promotion
Look below Look below All service Telemarketing
operation and Olx and LinkedIn
product delivery is
within the Metro
only.
E.3 Review of Strategies

ISSI Information Technologies Inc., (ISSITECH)

Key Strategy Result
Telemarketing High customer yield, transactions
are paid fully by the customer
(Invoicing)
Social Network such as Olx and Low customer yield, transactions
LinkedIn are made by down payment.
Negotiable Prices and Longer Favorable transaction
Warranty life
Table 7. Review of Strategies

Page | 25
V. Market Opportunity

This chapter will provide a quantitative description of the opportunities for

the ISSITech and key characteristics of it.

External Strategic Weight Rating Weighte Comments

Factors d Score

Political
 the Government is now
Unprecedented .16 3 0.48 supporting micro, small, and
booms under medium scale enterprises
Duterte
Administration
Economical
 The increase in all local business can now
Economic .16 3 0.48 use the opportunity to grow.
Growth Companies are expected to
expand and take more risk
when the economic climate
and conditions are right.
Social
 Acceptance of This is both an opportunity for
internet .17 3 0.51 the company and industry to
commerce ramp up their online
platforms.
 The Philippines this could be an opportunity
is the top user .18 3 0.54 since businesses can now
of Social Medias inform their target market
effectively with the use of
social media to gather more
clients and boost the
company sales.
Technological
 Online This is an opportunity for the
Management of .17 3 0.51 industry and company to
Inventory lessen their expenses. The
inventories will always be
monitored
 Digital Price This is an opportunity for the
Auditing .16 3 0.48 industry and company to save
a lot of money, time and
make the businesses more
accurate in terms of
transparency.
Total Scores 1.00 3
 Table. 8 Market Opportunities

VI. Marketing Proposal

In this chapter, ISSITech proposed segmentation, target customer and its

positioning will be identified. The intended objectives will also be tackled in this

Chapter.

A. Proposed STP Framework

ISSI Information Technologies Inc., (ISSITECH)

Segments Target Customer Positioning
 Geographic - Caloocan, Malabon,  Small to  High Service
Navotas, and Valenzuela medium Performance
businesses  Top Quality
 Demographic - Companies that use  Government and brands
computer and information use  International
technology  Personal Standards
and  Long
 Behavioral - Quoting: Clients usually household Warranty Life
choose 3 or more retail company  Timely
and compare their pros and cons,
then proceed with the purchase.

- Usually, order in bulk

- Seek promotional Discounts

 Psychographic - Clients don’t care

about the price as long as the
warranty life is long.
Table 9. Proposed STP Framework

The table above is a bit the same with the STP framework they use

today. The company is still earning even though the framework they use is

simple, and it is also noted that the company works and caters under

limited segment only since their service are geographically limited and

they already offer everything to satisfy the needs of their clients. Another

reason for a minor change is because the current STP framework of the

company is already functioning for more than 20 years and can still

Page | 27
manage to overcome the recent trends in the competitive market.

However, the table above indicated "Timely" as part of their new

positioning. Defining timely, the company will dwell more on the digital

world to find new opportunities in the market, since everything in the

market is now being digitalized for further customer satisfaction and

experience. According to Pickard (2018), the continuous evolving of

physical stores will offer customers more tangible shopping experience

where they can see products instantly before they purchase the product,

the stores are starting to capitalize on the digital experience and add in

extras to incorporate more of the benefits of online.

B.1 Marketing Objectives

The chosen company is currently serving limited segments in the market.

However, for the company to grow, it is necessary to maximize its

resources whether online or physical, each has the mean to help the

company to grow. Below are the following objectives of the company:

1. Be digitally visible in the market on the first up to the last quarter of the

year

2. Gather approximately 50 big new clients that are nearby each other

outside the metro to maximize the cost of fuel, manpower and time.

3. Increase 5% of the company revenue

VII. Overall Marketing Strategy

Product and Service Consumer Insights Big Idea

Truth
 Long warranty  Reliable “Operating beyond
life company the physical and
 Good after  Limited area digital limitations."
sales support operation
 Flexible pricing  not digitally
 Top brands active

Table 10. Big Idea Framework

The company will be positioned as something timely and advanced

with the Big Idea “Operating beyond the physical and digital limitations”

The idea is to push the company to maximize its opportunity such as

operating outside the metro and digitalizing the company to gather more

clients not just in the corporate world, but to another sector of businesses

that might also possibly need the service of the company.

VIII. Overall Marketing Mix

Product Price Distribution Strategy Promotions

Strategy Strategy Strategy
 Longer  Flexible  Direct  Hire
Warranty Pricing distribution of Konvoworks
Life Strateg products and as the social
 Fast y service media
delivery execution intelligence of
 excellent outside the the company.
after sales metro,
support specifically in
 Bulk order the neighboring
discounts city of
Caloocan,
Malabon,

Page | 29
 Navotas, and
Valenzuela
Table 11. Overall Marketing Mix

A. Product Strategy

Strategy
 Longer Warranty Life
 Fast delivery
 After Sales Support
 Bulk order discounts
Objective
 Gather approximately 50
big new clients that are
nearby each other outside
the metro

 Increase 5% of the
company revenue

Table 12. Proposed Product Strategy

The products currently offered by the company have longer

warranty life than its competitors and the after sales support is also

excellent. Since then, this strategy has helped the company to

maintain loyal customer through their reliable service. The products are

sourced directly from the top brands in the industry of Information

Technology.

B. Price Strategy

Strategy Objective
 Flexible Pricing  Gather approximately 50
big new clients that are
nearby each other outside
the metro

 Increase 5% of the
company revenue
Table 13. Price Strategy

Flexible Pricing is a strategy in which the final price at which the

product or service being sold is open for negotiation between buyers

 and sellers. This strategy is currently being used by the company to

create a favorable deal with its clients and customers.

C. Distribution Strategy

Strategy Objective
 Direct distribution of  Increase 5% of the
products and service company revenue
execution outside the metro,
specifically in the  Gather approximately
neighboring city of 50 big new clients that
Caloocan, Malabon, are nearby each other
Navotas, and Valenzuela outside the metro to
maximize the cost of
fuel, manpower and
time
Table 14. Distribution Strategy

The company is already dealer of several top products in the

major business area in the Metro which consists of Ortigas, Ayala,

Makati, Manila, and Paranaque, the proposed strategy aims to expand

the company's grasp in NCR by operating outside the metro,

specifically in the neighboring city of Caloocan, Malabon, Navotas, and

Valenzuela.

D. Promotions Strategy

Strategy
 Hire Konvoworks as the
social media intelligence of
the company.
Objective
 Increase 5% of the
company revenue
 Be digitally visible in the
market on the first up to
last the quarter of the
year.

Page | 31
 Table 15. Promotions Strategy

Service outsourcing cost will be added to the Marketing Budget in

the income statement. Konvoworks is a social media intelligence

based in the Philippines composed of marketing professionals, social

media strategist, data analysts, and digital experts. The strategy aims

to make the company digitally visible online with the help of Social

Media Intelligence.

Service Description KPI's (Success Metrics)

Pre-Campaign
Olelo subscription - 3 months
Baseline report Audience vs. Brand: Personality, Needs, Values
Social Media Playbook Content Strategy, Monthly content plan with visual
pegs
Post-campaign report with behavioral Performance vs. KPIs and comparative analysis
interpretation vs. baseline
Reports Performance and KPIs monitoring
Brand audit Review of all digital assets/give recommendation
 Table 16. Service Breakdown

E. Marketing Plan Timetable

Year 1
Timeline Product Price Place Promotion
Quarter 1
January, All Flexibl Caloocan Social Media
February, and Products e Price (Instagram
March Sponsored Ads and
Facebook Store)
Konvoworks
Quarter 2
April, May, and All Flexibl Caloocan, Facebook Store,
June Products e Price and LinkedIn, and Olx
Malabon plug in (Konvoworks)
Quarter 3
July, August, All Flexibl Caloocan, Facebook Store,
and September Products e Price Malabon, LinkedIn, and Olx
and plug in (Konvoworks)
Navotas
Quarter 4
October, All Flexibl Caloocan, Facebook Store,
November, and Products e Price Malabon, LinkedIn, and Olx
December Navotas, plug in (Konvoworks)
and
Valenzuela
Table 17. Marketing Plan Table

Page | 33
IX. Financial Forecast
 2017 2018

Sales P 53,241,536 P 52,122,710

Cost of Sales 48,091,910 43,895,681

Gross Profit P 5,149,627 8,227,030

Operating Expenses

Salaries and Wages P 2,192,520 P 4,829,256

Utilities 414,161 517,701

Office Supplies 272,369 247,608

Depreciation 73,333 63,000

Printing 7,981 3,628

Taxes, Licenses, and Permits 155,164 129,720

Transportation 1,282,500 1,282,500

Gas and Oil 284,187 710,467

Marketing Budget 300,000 300,000

TOTAL OPERATING EXPENSES P 4,982,714 P 7,798,879

NET INCOME BEFORE TAX P 466,912 P 443,151

PROVISION FOR INCOME TAX 140,074 443,151

NET INCOME P 326,839 P 310,206

FIRS YEAR OF IMPLEMENTATION

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Incremental Revenue
Incremental Costs
KONVOWORKS Service
Cost (Marketing Budget)
Transportation Cost
Incremental Profit / Loss
(In Philippine Peso)
PHP 53,165,164.2
PHP 300,000 for one year
25,000 x 12 months
PHP 750,000 (1,050,000)
PHP 52,115,164.2

 2% increase in revenue due to strategy implementation, based on

2018 sales (PHP 52,122,710 x 2%) = PHP 53,165,164.2

SECOND YEAR OF IMPLEMENTATION

(In Philippine Peso)
Incremental Revenue PHP 54,760,119.1
Incremental Costs PHP 300,000 for one year
KONVOWORKS Service 25,000 x 12 months
Cost (Marketing Budget)
Transportation Cost PHP 780,000 (1,080,000)
Incremental Profit / Loss PHP 53,680,119.1

 3% increase in revenue due to strategy implementation, based on the

first year of implementation (PHP 53,165,164.2 x 3%) = PHP

54,760,119.1

THIRD YEAR OF IMPLEMENTATION

(In Philippine Peso)
Incremental Revenue PHP 57,498,125.1
Incremental Costs PHP 300,000 for one year
KONVOWORKS Service 25,000 x 12 months
Cost (Marketing Budget)
Transportation Cost PHP 815,500 (1,115,500)
Incremental Profit / Loss PHP 56,382,625.1

 5% increase in revenue due to strategy implementation, based on the

second year of implementation (PHP 54,760,119.1 x 5%) = PHP

57,498,125.1
X. Annex

Key Success Factors according to ISSITech Inc.’s CEO

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