Abstract

Tindahang Pinoy ng Laguna

Business Plan for a Retailer Store Offering Specialty Products from Laguna

Abegail F. Agnes and Nicca R. Manese

Abstract ABSTRACT

Tindahang Pinoy ng Laguna is a start-up retail store offering specialty products from all over Laguna from native sweets and preserved delicacies to traditional embroidered formal wear. The store will be located within the stretch of Maharlika Highway, ideally near a bus stop, catering to the middle- and upperclass consumers who look beyond the congested retail malls or travel-hopping from one city to another for a special shopping experience. In addition to offering a wide array of proudly Pinoy-made, quality products, the consumer will enjoy friendly and knowledgeable customer service and a convenient location.

Tindahang Pinoy ng Laguna is also proposed to be sole-proprietorship and is intended to be expanded by carefully building repeat customer base and providing the products and merchandise they wish to purchase. It is very important to offer personal customer support and services to achieve its business objectives.

Abstract REVIEW OF RELATED LITERATURE

The purchasing power of Filipino families, that is the possibility to buy products or make use of services, is directly related to both the income of the families and the prices of products and services. Because wages in Philippines are very low, the purchasing power is low as well. For example: A carpenter in the Philippines earns for a whole day of hard work about 5 American dollars (or 4 Euro) which is less than one third of the earnings a carpenter in Western Europe gets for only one hour of work.

Even if the case is as above, the weird thing is: Filipinos tend to support and consume internationally made products more.

Now what comes to your mind when you think of Filipino products? Perhaps the common notion would be it is of mediocre or even poor quality. While this may be true for some, it does not mean that all Filipino products should be generalized as such. We have several locally-made products which have successfully penetrated in the international market such as Bayani Brew, The Golden Egg, Plush and Play and Theo & Philo chocolate to name a few.

Filipinos shopping habits are changing-- this is what international market research firm Nielsen confirmed in the latest study they released. Although the study concentrated specifically on grocery shopping, they found out that Filipinos have been making more trips to the grocery but buying less. It also said

Abstract that 9 out of 10 shoppers do prepare shopping lists but most likely not stick with it. This means that despite of limited budget, Filipinos have become more open to impulse purchases. Nielsen also said in a statement that the close proximity of supermarkets to residential areas has helped influence Filipinos' shopping behavior, as the shoppers said they prefer stores which can be reached via jeepney, tricycle or by foot.

Filipinos shopping habits are changing. But so is the view of businesses, firms and businessmen which has seen domestic and tourism markets as good alternative markets. This is clearly evident by the growing no. of programs or campaigns encouraging Filipinos to support locally-made products.

BUY PINOY is a community outreach campaign developed by FilAm ARTS designed to:

Stimulate community support of Filipino-owned businesses Promote community support of Filipino culture and arts (through their businesses)

Encourage Filipino consumers to invest dollars within the community Showcase all Filipino-owned businesses in the Los Angeles Area

Lawmaker Teddy Casino also pushed for Buy Pinoy, Build Pinoy! which is a grassroots-based movement promoting consumption of Filipino-made products. He also pushed for policies beneficial to local producers and

Abstract entrepeneurs. His special call-out especially to Overseas Filipino Workers (OFWs) is to avoid hassle of bringing in so many balikbayan boxes and shun duty free shopping.

Department of Trade and Industry (DTI) has a priority government program named One Town, One Product (OTOP-Philippines) which aims to promote entrepreneurship and create jobs. Through this program, local chief executives of each city and municipality takes the lead in identifying, developing and promoting a specific product or service which has a competitive advantage. OTOP-Philippines also supports micro, small, and medium enterprises (MSMEs) to manufacture, offer, and market distinctive products or services through the use of indigenous raw materials and local skills.

Another project of DTI through the Philippine International Trade Corp. (PITC) is Tindahang Pinoy which has officially launched in Cebu in 2011, serving tourists and even locals who are looking for Cebuano products to buy as souvenir or gift for their families and friends.

This is where we got the idea of this business planTindahang Pinoy ng Laguna. If other cities can do it, why cant we? Most of Laguna-made products are exported internationally. Why not make it available to local residents first?

Abstract 1.0 Objectives Tindahang Pinoy ng Lagunas main objective is to make Laguna-made products available to residents of San Pablo City-- not only supporting our locally-made products but also promoting livelihood within residents of Laguna. Another objective (on a business perspective) is to become a premier one-stop-shop store for Laguna-made products. 2.0 Mission Tindahang Pinoy ng Laguna will be a retail store offering specialty products from all over Laguna. It will provide products from quality suppliers and provide professional customer service in a friendly environment. 3.0 Keys to Success To succeed in this business, Tindahang Pinoy ng Laguna will: Sell products the customer desires and are of the highest quality. Provide friendly customer service. Establish excellent vendor/supplier relations which will facilitate quick shipment of orders. Advertise and promote the store immediately and consistently. Continuously review inventory and sales and adjust our inventory levels based on detailed records.

Abstract 4.0 Market Strategy 4.1 Product Description

The business will be selling different products from different Municipalities and Cities in Laguna such as Alaminos, Bay, Binan Calauan, Calamba, Liliw, Los Banos, Luisiana, Lumban, Majayjay, Nagcarlan, Paete, Pagsanjan, Pakil, Pangil, Sta. Cruz and Victoria. 1. Puto Bian (special rice cake) Bian 2. Pineapples Calauan 3. Uraro cookies (arrow root) Liliw 4. Buko pie and cassava cake Los Baos 5. Native sweets and preserved delicacies San Pablo and Calauan 6. Lanzones and rambutan fruits Pakil and Paete 7. Kesong Puti (native white cheese) Sta. Cruz 8. Dairy Products- Los Banos 9. Wood carvings- Paete 10. Salted duck eggs- Victoria 11. Lambanog (coconut wine) Liliw, Luisiana and Majayjay 12. Traditional embroidered formal wear Lumban 13. Shoes, slippers and leather goods Liliw 14. Cut-flowers and decorative plants Los Baos and Bay 15. Woodcarvings and paper mache Paete 16. Woodshaving Pakil 17. Handmade paper/rice paper Los Baos 18. Native pandan bags and mats Luisiana

Abstract 4.2 Demand and Supply

San Pablo City has a total of 197.60 km2 (76.29 sq mi) land area, with 80 barangays and has a total of 248,890 populations (as of 2010). San Pablos income class is 1st class, which can basically help for the stabilization of the business. There are many tourists destination in San Pablo such as The Seven Lakes, San Pablo City Cathedral, Fule-Malvar Mansion, City Hall, Old Municipio, Sampaloc Lake Staircase, City Plaza, Doa Leonila Park, Boundary Arc of San Pablo City-Tiaong, Veterans Monument and Villa Escudero. And there are different festivals celebrated every year Coconut Festival (January 9-14); City Fiesta (January 15); City Foundation Day (May 7) and Laguna Day (June 19), wherein the entire city celebrates.

Based on the local Tourism Officer, there are approximately 300,000 local tourists and 250,000 foreign tourists annually. It is a big factor that the San Pablo City is the only city in the world that has seven lakes and Villa Escudero also helps to attract local and foreign tourist. They also have tour packages that can attract more tourists.

The business target market is the local and foreign tourists, commuters and local residents of San Pablo City. Most of the time, there are locals that crave for products from other places.

Abstract 4.3 Factors Affecting the Market

One major factor to be considered in putting up a business is the prospective buyers based on the population and the capability of them to buy. You will also have to consider the possible competitors (e.g. prices of their product).

4.4 Marketing Plan

The business will have printed and digital (local commercial) advertisements showing where the store is located and what it offers. A website will also be created so that it will have more market knowing that people have 100% access to the internet nowadays. After a couple of months in operation (e.g. 6 months), the business will offer pricing strategies such as bundle buying and tie-up product. Lastly, it will participate in local activities such as Coco Festival, and office programs (e.g. putting up a stall during major events as such).

5.0 Operational Strategy

The distribution process will go through purchasing then inventory, merchandising, marketing and then inventory. We will need office equipment such as cash register, computer, printer/ fax machine/ copier, and scanner, Vault, Refrigerator, and Air Conditioner. In the back office, we will need filing cabinet, office table, computer table, office chair and waiting area chairs. The store has a modern geometric design and has two floors and location is within

Abstract Maharlika Highway preferably near a bus stop which is very much convenient to its potential market. The store operates 8 hours a day.

10

6.0 Human Resource Strategy 6.1 Name of the Firm

The business is named Tindahang Pinoy ng Laguna. This means that all products from different Municipalities and Cities in Laguna are made available in San Pablo. We believe that our business actually works not just for enterprise but for the customers also. This aims to lessen the production and transportation cost and reduce the profit but without having the forfeit the quality of the products and presume the maximum satisfaction of consumers.

6.2 Form of Ownership

Tindahang Pinoy ng Laguna is a sole proprietorship. This business is owned and run by an individual and has no difference between the owner and the business. The owner receives all the profit and has boundless responsibility for all losses and debts. All assets and debts are owned by the owner. The owner has no less liability.

Abstract 6.3 Organizational Chart

11

6.4 Roles and Responsibilities

1. Manager

The Office Manager is responsible organizing and coordinating office operations and procedures in order to ensure organizational effectiveness and efficiency.

Design and implement office policies

Establish standards and procedures

Organize office operations and procedures

Supervise office staff

Recruit and select staff

Provide on the job and other training opportunities

Abstract Coaching and disciplining staff

12

Transfer and dispose records according to retention schedules and policies

Ensure personnel files are up to date and secure

2. Office clerk

Monitor and record long distance phone calls

Prepare time sheets

Maintain office equipment

Ensure filing systems are maintained and up to date

3. Storekeeper

Maintain and replenish inventory

Check stock to determine inventory levels

Anticipate needed supplies

Verify receipt of supply

Define procedures for record retention

Ensure protection and security of files and records

Abstract Ensure effective transfer of files and records

13

4. Salesperson

Ensure that each customer receives outstanding service by providing a

friendly environment, which includes greeting and acknowledging every customer, maintaining solid product knowledge and all other aspects of customer service.

Maintain an awareness of all promotions and advertisements.

Assist in floor moves, merchandising, display maintenance, and

housekeeping

stock.

Assist in processing and replenishing merchandise and monitoring floor

Aid customers in locating merchandise.

Communicate customer requests to management.

Assist in completing price changes within the department.

Participate in year-end inventory and cycle counts.

Assist in ringing up sales at registers and/or bagging merchandise.

Any other tasks as assigned from time to time by any manager.

Abstract Compute sales prices, total purchases and receive and process cash or

14

credit payment.

Watch for and recognize security risks and thefts, and know how to

prevent or handle these situations.

Open and close cash registers, performing tasks such as counting money,

separating charge slips, coupons, and vouchers, balancing cash drawers, and making deposits.

Maintain knowledge of current sales and promotions, policies regarding

payment and exchanges, and security practices.

5. Driver

Drives vehicle on official business.

Maintain the good condition of the vehicle

Abstract REFERENCES

15

1. http://www.philippines.hvu.nl/PurchasingPower.htm 2. http://business.inquirer.net/75057/nielsen-study-finds-shoppers-evolving 3. http://www.abs-cbnnews.com/business/06/27/13/why-are-pinoysshopping-more-frequently 4. http://buypinoy.org/about/ 5. http://www.sunstar.com.ph/bacolod/local-news/2011/12/03/lawmakerpushes-buy-pinoy-build-pinoy-193862 6. http://www.dti.gov.ph/dti/index.php?p=442 7. http://www.sunstar.com.ph/cebu/business/2011/06/03/dti-test-tindahangpinoy-concept-cebu-159255