Imperial Tacloban

Chapter 1
INTRODUCTION
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
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 BranchPage 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 furnitures.
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 companys 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 companys 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 firms 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 theyll 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, theyll 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 arent 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. Its 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 countrys leader in marketing, sales and distribution of
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
prestige
through
expansion and direct selling.

2.
Maintain
goodwill
and
corporate
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 Plaza
ORGANIZATIONAL CHART
Regional Manager
Branch Manager
Accounting Dept.
Credit & Collection Manager
Collectors
Sales Dept.
Warehouse Dept.
Field Sales Rep.
Chapter 2
SITUATIONAL 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 1
Imperial Appliance Plaza Products
PRODUCTS
PRODUCT BRAND
Sony
ATTRIBUTES
LED TV "Sony KDL52NX800" 52 inch with

Wi-Fi adn Edge LED
Color
Television
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
Whirlpool
Refrigerator
s
Condura
Condura 9.0CuFt
Metallic Silver
Refrigerator, Model
CTD300MN
Kelvinator
Panasonic
Panasonic - NR.BU302
Vegerator Series
Bottom-MountFreezer ..
Air
conditioners
Colin
Available in Window
type and split type
aircon;
.51.5hp,
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, .52.0hp,
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
Furnitures
Dining Table
All furnitures 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% markup pricing for their product and depending on the manufacturers 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 2
Products Price List
Product
TV Colored
Samsung 21
Sharp 21
JVC FTV 21
Sony CTV 21
Sanyo FTV 21
Price
17,595.00
10,290.00
14,190.00
12,812.00
11,595.00
Product
Air conditioner
Samsung
Panasonic
Sharp
Carrier
Condura
Price
12,195.00
14,799.00
28,195.00
13,360.00
11,899.00
Refrigerator
Samsung
GE
Panasonic
Sharp
Sanyo
Electrolux
Washing Machine
Astron
Samsung
Panasonic (Single)
(Twin)
Sharp
(Twin)
47,995.00
17,595.00
24,599.00
18,995.00
10,395.00
37,695.00
4,800.00
22,995.00
4,999.00
10,799.00
14,790.00
Competitors Price List

Product
LCD TV
Home Theater
Refrigerator
(single
door)
Refrigerator
(two
door)
Freezer
Washing
Machine
(Auto)
Washing
Machine
(Twin)
DVD Player
Airconditionaire
Component
IMPERIAL
25,900.00
8,490.00
10,250.00
EMCOR
24,703.00
5,920.00
15,660.00
RHINE
24,144.00
6,990.00
16,554.00
15,995.00
19,058.00
22,879.00
13,680.00
13,987.00
13,655.00
14,188.00
14,599.00
8,990.00
8,432.00
8,619.00
1,990.00
13,995.00
16,999.00
2,014.00
19,394.00
3,195.00
18,854.00
Distribution
To evenly and safely distribute appliances to customers Imperial
Appliance Plaza simply yet strictly follows the following product
distribution.
Figure __
Product Distribution
Manufacturer / Supplier

Customer
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
manufacturers 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 thats 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 customers 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 its all year round promotion
from its agents that roam around Leyte province and from word-ofmouth 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, childrens 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 3
PROJECTED 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 4
LABOR FORCE AND EMPLOYMENT STATUS
OF HOUSEHOLD POPULATION
Leyte 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 1
Gender Profile
39%
61%
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
furnitures.
As gleaned on the graph, 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.
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 2
Civil Status Profile
13%
Single
87%
Married
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,
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 dont 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 3
Occupation Profile
24%
50%
Government Employee
Private Employee
11%
Self Employed
Not Employed
16%
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 4
Monthly Income
16%
8%
14%
5,000-10,000
10,000-20,000
26%
36%
20,000-30,000
30,000-40,000
40,000-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
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 5
MARKET SHARE
23%
40%
21%
8%
8%
Imperial
EMCOR
Du Ek Sam
GLEN Marketing
RL 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
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 3 rd 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 countrys economy in spite of
global economic crisis. The graph below illustrates increasing number
of households per year.
Figure 5
TOTAL NUMBER OF HOUSEHOLDS BY PROVINCE
15%
5%
15%
Biliran
Eastern Samar
65%
Leyte
Southern 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
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 1
Distribution Channel Model of Imperial Appliance Plaza
Manufacturers or
Suppliers
Imperial Appliance
Business Plaza
Sales
Agents
Customers or
Clients
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
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.
Manufacturers or
Suppliers
Imperial Appliance
Business Plaza
Sales Agents /
Credit Investigator
Customers
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
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
Imperial
Glen Mktg
Emcor
Branch
Promotion
Tarpaulin,
Caravan
Tacloban
Tacloban,
Ormoc,
Baybay
Tacloban,
Ormoc
Radio, Tarp,
Newspaper
Radio,
Caravan
Agent
Rhine
Tacloban,
Ormoc,
RL
Baybay,
Calbayog
Competitors Distribution
Radio, Tarp,
Newspaper,
SUPPLIERS
Caravan
Products
Market
All brands
Leyte
Same
Region VIII
Same
Leyte
Same
Leyte
same
Region VIII
Channel
Glen Marketing
Product
Distribution
TACLOBAN
MAIN
OFFICE Channel
ORMOC BRANCH
BAYBAY BRANCH
AGENTS
SAMAR BRANCH
AGENTS
AGENTS
Customers
Customers
Customers
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
TACLOBAN OFFICE
Customers
AGENTS
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
SUPPLIERS
TACLOBAN MAIN OFFICE
ORMOC BRANCH
BAYBAY BRANCH
SAMAR BRANCH
AGENTS
Customers
AGENTS
Customers
AGENTS
Customers
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
SUPPLIERS
TACLOBAN MAIN OFFICE
ORMOC BRANCH
BAYBAY BRANCH
SAMAR BRANCH
AGENTS
Customers
AGENTS
Customers
AGENTS
Customers
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
Imperial AP Annual Gross Sales

Imperial Expenses
Cost of Product
Transportation expense
Spare parts maintenance
2010
2011
18,231,408.0
0
22,789,260.0
0
10,938,845.0
0
105,600.00
86,400.00
13,673,556.0
0
132,000.00
108,000.00
Utilities (Electricity)
Allowances
Office Supplies
Salaries expense
Promotion Expense
TOTAL
GROSS SALES
Less: Tax (30%)
NET Income
192,000.00
76,800.00
19,200.00
552,000.00
240,000.00
96,000.00
24,000.00
600,000.00
11,970,845.0
0
6,260,563.00
1,878,169.00
14,873,556.0
0
7,915,704.00
2,374,711.00
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 Mayors 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 5
Legal Document
Particulars
Amoun
t
Barangay
Clearance
150.00
DTI Business
Name
Registration
300.00
BIR Registration
800.00
Mayor's Permit
4,700.0
0
Fire Inspection
Certificate
400.00
Sanitary Health
Permit
200.00
SSS
Registration
600.00
Total Permit and

Licenses
7,150.0
0
Description
This clearance is secured from the barangay
where the business is located as required for
securing mayors permit
Business name registration with DTI precedes
all other documents required for the business to
operate. The registration is good for five years
This registration is required to taxation
purposes
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
Required by the city before a mayors permit is
issued and as required by laws in compliance of
safety measures
Required by the city before a Mayors permit is
issued in compliance of health and sanitation
measures
Required by the social services office for
purposes of remitting social contributions of
employees and the business counterpart
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
dont 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
To
To
To
exceed __ million in the next 5 years.

increase revenue by 10% annually.
increase gross profit by 10% annually.
increase sales by 10% annually.
Financial Efficiency
-
To
To
To
To
decrease expenses by 5%.

increase net profit by 10% annually.
improve overall efficiency as measured by throughput.
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 4
TACTICAL 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 furnitures.
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 PLAZA

TARGET MARKET
Residential
Commercial establishments
Private Offices
Government Offices
Schools
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 signages. 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 signages 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 customers
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
Sales Agents
Imperial
Appliance
Plaza
CUSTOMERS
Employees
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.
Chapter 5
BUDGETING, 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
QTY
PARTICULAR
S
30
2x4 Tarpaulin
2,00
0
Discount Flyer
UNIT
COST
200.0
0
Labor Cost:
Setting up
tarpaulin, 3
450.0
pax @
0
150/day x 2
days
TOTAL EXPENSE
B.
TOTAL
AMOUN
T
REMARKS
Will
be
hang
along
Maharlika highway from
Campetic
to
Abucay
6,000.00 terminal. Rizal Avenue to
Justice Romualdez to Real
Street up to Tacloban
Astrodome
500.00 Will be distributed in
almost crowded area in
the city
These persons will be
contracted to install
900.00
tarpaulin on the streets
stated above.
7,400.0
0
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)
30%
40%
30%
Cash Buyers
Credit Card
Installment
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)
Imperial AP Annual Gross Sales

Imperial Expenses
Cost of Product
Transportation
expense
(5%)
Spare parts maintenance
(3%)
Utilities
(Electricity)
(3%)
Allowances
(5%)
Office
Supplies
(3%)
Salaries expense
Promotion Expense
TOTAL
GROSS SALES
Less: Tax (30%)
NET Income
2010
2011
2012
2013
18,231,408
.00
22,789,260
.00
27,347,112
.00
32,816,534
.00
10,938,845
.00
105,600.00
13,673,556
.00
132,000.00
16,408,267
.00
138,600.00
19,689,920
.00
145,530.00
86,400.00
108,000.00
111,240.00
114,577.00
192,000.00
240,000.00
247,200.00
254,616.00
76,800.00
96,000.00
100,800.00
105,840.00
19,200.00
24,000.00
24,720.00
25,462.00
552,000.00
600,000.00
11,970,845
.00
6,260,563.
00
1,878,169.
00
4,382,394
.00
14,873,556
.00
7,915,704.
00
2,374,711.
00
5,540,993
.00
600,000.00
7,400.00
17,639,027
.00
9,708,085.
00
2,912,426.
00
6,795,659
.00
600,000.00
7,400.00
20,944,169
11,872,365
.00
3,561,710.
00
8,310,655
.00
Chapter 6
OTHER 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

Imperial Tacloban

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Chapter 1

BUSINESS BACKGROUND HISTORY

Imperial Appliance Business Plaza

RCT Building, Real Street, Tacloban City

Imperial Appliance Plaza started as a single proprietorship but a

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

envisioned itself to be the leading distributor of appliances and

established based on the good performance of the business and

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 1

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

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 2

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 3

Purpose and Mission

To become one of the leading appliance centers in Tacloban

Purpose of Marketing Plan

they use to determine success.

Organization Mission Statement

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 6

quality home appliances, furniture and office equipments by providing

Provide reliable and efficient delivery of services to our

expansion and direct selling.

professional selling, competitive pricing, provide counseling

Create a people-and service-oriented work environment

Imperial Appliance Plaza

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 7

Credit & Collection Manager

Field Sales Rep.

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

Analysis: Current Products

controlled or manually operated, compatibility to other related devices

LED TV "Sony KDL52NX800" 52 inch with

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 9

JVC LT26DY8ZG: this 26

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 10

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 11

1200 watts, DTS,DD,

Matte silver aesthetic with

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 12

3 gas, gas oven, thermostat

Imperial Appliance Business Plaza is one of the well known

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 13

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 14

Competitors Price List

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 15

Imperial Appliance Plaza

Imperial Appliance Plaza is one of the appliance dealers in

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 16

proposal from radio station means no advertisements. Most of the

Analysis: Current Target Market

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

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 17

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

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 18

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

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 19

Source: National Statistical Coordination Board, Tacloban City

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

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 20

The above graph shows that out of 250 surveyed potential

Civil Status Profile

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

IMPERIAL APPLIANCE PLAZA Tacloban BranchPage 22

increasing potential market.

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