University of Luzon

College of Business Administration

Dagupan City
__________________________________________________________________________

The Case Study

Of
Analyns Furniture
In
Malindong Binmaley, Pangasinan

Submitted by:
Maricel C. Fernandez
BSBA/ 9:00 10:00am

Submitted to:
Prof. Rosalie Rosales

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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

Introduction
When it comes to marketing these days, those who operate furniture stores have their
work cut out for them. Super stores such as Walmart and Target have cut into the
business of furniture stores and made it possible for people to furnish a house at the
same place they pick up a quart of milk. In addition, specialty stores such as Staples
have successfully targeted the office furniture market, thereby cutting off another oncesteady revenue source for furniture store owners. And discount outlets such as Big Lots
and Ocean State Job Lot offer good furniture at a reduced price, a difficult combination
to overcome in trying economic times.
In addition, it's tougher than ever these days for furniture stores to spread the word
about what they offerwhether they are a large chain such as Bob's Discount Furniture
or the well-known Raymour & Flanigan or a Mom and Pop operation in a small town,
furniture stores don't have the advertising budget of the big box super stores and are
finding it increasingly difficult to rely on newspapers to spread the message.
Fortunately, there is a solution as effective as it is inexpensive: email marketing for
furniture stores. Such a medium may have been unimaginable a generation ago, but for
furniture stores, email marketing is the present as well as the future.

Global
North Carolina has a long tradition in the furniture industry, but over the past twenty
years furniture production has been challenged by the increasingly global nature of
manufacturing. North Carolina furniture manufacturers have to rethink their strategies
to remain competitive by improving technologies, diversifying markets, and offshoring
production. Furniture imports to North Carolina are growing, especially from China
and other developing and emerging markets, leading to plant consolidations and
shutdowns and raising questions in terms for policy, education, and industry strategy.
Furniture manufacturing has been a major player in North Carolinas economy since
the seventeenth century, when English artisans began to settle across North Carolina
and produce furniture on a small scale. Early industrial entrepreneurs and developers
focused on the Piedmont region of North Carolina, especially the city of High Point,
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

because of its abundant wood supply, access to transportation, and cheap labor
availability (1). High Point hosted its first regional furniture trade fair in 1909,
eventually leading to the creation of the High Point Market, an internationally
renowned furniture trade fair that still operates today. By the 1980s, High Point had
earned the nickname "The Furniture Capital of the World.
In the late 1990s, the NC furniture industry began to feel the effects of increased foreign
competition, causing many companies to go out of business, consolidate, close factories,
lay off employees, and import from abroad. Yet, North Carolina still maintains a strong
presence in the furniture industry and continues to take measures to remain
competitive.

Establishments, Workers & Wages

Furniture manufacturing is concentrated in the north-central Piedmont Triad region of
North Carolina, especially Catawba, Caldwell, Guilford, Randolph, Alexander, and
Davidson counties. Major furniture manufacturing cities include Hickory, High Point,
Thomasville, Greensboro, Asheboro, and Winston-Salem, among others.
North Carolina is the largest employer in furniture manufacturing, representing 9.5% of
U.S. employment (T3c). It ranks fifth in the U.S. in terms of the overall number of
furniture manufacturing establishments, with 5% of U.S. establishments in the furniture
manufacturing industries (T2c). North Carolina is the leading state in the household
furniture manufacturing segment with 12% of U.S. employment and nearly 5% of
establishments in the segment (T3c; T2c). It ranks fifth in office furniture manufacturing,
with 5.2% of U.S. employment and 5.6% of establishments. North Carolina ranks fourth
in furniture-related products manufacturing (mattresses & blinds), with 6% of U.S.
employment and 4.4% of establishments.
Employment in North Carolinas furniture industry has declined steadily since 1992,
with total employment declining 56% since 1992 (T3a; C3a). Employment declined in
the household and office furniture manufacturing segments and increased in furniture
related products manufacturing and furniture merchant wholesalers. Employment in
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

the household furniture segment has contracted by 61% over the last two decades from
64,528 workers in 1992 to 25,235 in 2012 (T3a; C3a). The pace of decline in household
furniture manufacturing employment continues. Employment in the household
furniture segment decreased 15% during the 1992-2002 period and 54% during the 20022012 period. We expect the pace of declines to slow as the household furniture industry
recovers from the 2008 recession and reconsiders its production location decisions.

Production & Trade

North Carolinas exports grew steadily from 2002 to 2008, increasing from $153 to $300
million. However, during the economic crisis, exports dropped by 38% between 2008
and 2009. Exports from North Carolina have yet to reach their 2008 peak.
In terms of destination markets, Canada accounts for 40% of North Carolinas total
exports in furniture, followed by countries in the Middle East (Saudi Arabia and UAE),
China, and Mexico. The overwhelming majority of furniture exports from North
Carolina are in the household furniture segment. Major export growth markets for
North Carolina over the past ten years have been Canada, China, and the UAE. North
Carolina decreased exports most notably to South Korea and E.U. countries (UK,
Belgium, Netherlands, and Italy).
In the Global market for furniture, the Philippines is touted to be the Milan of Asia. The
unparalleled design and craftsmanship of locally-manufactured furniture pieces have
earned for Philippine furniture a prime spot in the world market.

The Philippine furniture industry continues to be one of the countrys highest export
sales earners. Based on the latest statistical figures, the industry posted a 4.7% growth in
export sales for the 3rd quarter of 2007 the same period in 2006.
This can be accredited to the continued international recognition for excellence in
product design and craftsmanship as well as creativity and innovation in the
application
of
materials.
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

From humble beginnings, the industry has grown to be the vibrant contributor to the
economy
that
it
is.
http://www.cfip.ph/
We have compiled a list of the top exports for small-medium scale businesses in the
Philippines. If your business is in any way related to the products listed here then the
opportunity to grow your business is very promising. The next step is advertising your
product to a global audience through our trade community for exporting prospects.

Woodcrafts and Furniture

The Philippines woodcraft and furniture products are probably the most unique
exports we have. Because of the formal and informal training of our furniture workers,
we have a different styles and designs coming from all corners of the country. This

industry has shown a steady growth of 11% per year for the past decade making it a
truly surging export of the Philippines. (Examples are woodcarvings, rattan and
bamboo furniture)

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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

It continues to make an impact in this highly competitive market by selling premium

quality furniture to the world's middle to high-end furniture markets.
The reality of an increasingly global market is not lost on the industry. Not only is
competition from our neighboring countries getting stiff, the industry is also
experiencing problems with the flow of its raw materials, as well as a drain in its
competency skill base. Despite these, however, prospects for our industry remain good.
Hand-in-hand with the growing niche market is our manufacturers' strong orientation
towards the customer. As such, customization and "after-sales services" could easily be
developed to form part of a "product package." There is also an abundance of marketing
platforms through which the industry and its products may be presented here and
overseas. In this manner, our manufacturers would not only be able to keep old buyers
but, more importantly, attract new ones - - a crucial ingredient to the survival of our
industry.

Furniture business are said to be the well known business in Binmaley Pangasinan,
thats why the place became popular to other people specially tourists who visit the
country. Most of the business minded people living there seek to find an income by
establishing and selling furniture.
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

Analyns Furnitures was owned by an entrepreneur Teresita Cabot and it is operating

in almost 10 years. It was situated in Mckinley St. Binmaley or known as Malindong
Binmaley, Pangasinan. It has been established through their knowledge and skills in
handing the furniture business. The business was named to her daughter Analyn Cabot
Pedro who has been married now. Teresita Cabot was the real owner of the furniture
business and shes the one managing on it.
The business has an employee which includes the salespersons, drivers, carpenters who
do the varnishing, and others are assembling. For them, competitions with other
business are not problem but instead an opportunity. As a furniture owner, we
maintain good service with our customers for we want to satisfy their needs.

SITUATION ANALYSIS
Furniture business are facing increased operating challenges including a
changing consumer, a poor economy, complex employee issues, new types of
competitors, and eroding revenue with increasing costs.

Strengths
-

Highly experienced owneroperator

Well known furniture
business

Weaknesses
-

Competitors can offer

similar products quickly
Limited flexibility in pricing
Lack of online promotion

Opportunities
-

Ability to develop additional

services through the use of
online marketing.

Threats
-

Rentals including taxes are

increasing
Increases on prices inputs
can cause upward pricing
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

Product strategy
The product being offered by Analyns furniture is anything which is intangible or
tangible. Tangible products are those which are physical items while intangible
products are known as service which accompanies the tangible products.
The tangible product being offered by Analyns furniture are the tables, chairs, cabinets,
dresser and others with different designs to choose from while the intangible products
are the good service by Analyns furniture towards to their costumer.
Analyns furniture gives discounts depending on the price and quality of a particular
product. They deliver the product unto what the customers request. They give also
freebies with a minimum of 20,000 purchase requirement of furniture.
As an interviewer, they told us that Analyns furniture was already featured on
television and they are known as best quality in terms to their product.

Promotional strategy
They advertise their product through word-of-mouth from satisfied clients, the
quality of their furniture and good service is still of the best channels of service
promotion for Analyns furniture business.

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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

Products of Analyns Furnitures

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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

Furniture is the mass noun for the

movable objects intended to support
various human activities such as seating
(e.g., chairs, stools and sofas) and
sleeping (e.g., beds). Furniture is also used to hold objects at a convenient height for
work (as horizontal surfaces above the ground, such as tables and desks), or to store
things (e.g., cupboards and shelves). Furniture can be a product of design and is
considered a form of decorative art. In addition to furniture's functional role, it can
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

serve a symbolic or religious purpose. It can be made from many materials, including
metal, plastic, and wood. Furniture can be made using a variety of woodworking joints
which often reflect the local culture.

Realistic solution
The email marketing software required for such programs is inexpensive and easy to both implement
and customize. You'll want to include the company logo as well as contact information, so that
people know they are getting a "real" email and not a piece of spam, and offer links to your website
as well as a search function for the site. The more interactive the email marketing campaign is for
the consumer, the more likely it is to be successful for the furniture store.

Interview Guide

Respondent Basic Information

Name : ____________________________
Age

: _________

Sex

: _________

Highest Educational Attainment :

Number of Years Managing:
Location of Establishment :
When established:

Month: ________

Year:________

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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

1.

Length of time has been operating?

_______________________________________________

2.

What type of business organization do you have?

_________Sole proprietorship
_________ Partnership
_________ Corporation

3.

Person managing the furniture?

_________ Owner itself

_________ Manager
_________ Others specify

4.

Sources of Funding?

_________ Savings
_________ Borrowed from friends/relatives
_________ Banks
Others specify: ________________________________________

5.

Initial Capital
_________ P30, 000 P 50,000
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

_________ P60, 000 P 100,000

_________ P150, 000 P200, 000
_________ P300, 000 above

6.

What is the average number of furniture you make per month?

_________ 5 below
_________ 5-10
_________ 10-15
_________ 15 above

7.

What are kinds of furniture do you offer?

KINDS

COST

_______________________

______________________

_______________________

______________________

_______________________

______________________

_______________________

______________________

_______________________

______________________

_______________________

______________________

How do you acquire furniture?

Or to have as a new or added characteristic/designs
____________________________________________________________
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

a.

How you often do you make furnitures?

_________ Weekly
_________ Monthly
_________ Quarterly
Others specify ____________________________

b.

Number of furniture ordered per _____________

_________ 10 Below
_________ 10-20
_________ 20 Above

c.

Who are your suppliers? (Location)

_______________________________________________________
_______________________________________________________
_______________________________________________________
d.

How many furniture do you maintain in your establishments?

______________________________________________________

8.

How many employees do you have?

______________________________________________________
a.

Is there any other vehicle used for your business operation?

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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

Specify: ________________________________________

9.

How many _____________ do you employ?

PERSONNEL
Manager

_____________

Cashier

_____________

Accountant

_____________

Bookkeeper

_____________

Driver

_____________

Carpenter

_____________

Others Specify: _______________________________________________________

10.

How do you collect payments from your customers?

_____________ Cash Basis

_____________ Installment Basis
Other specify ________________________________________________________
11.

What promotional strategies do you use?

_____________ Newspaper
_____________ Radio
_____________ Billboards
_____________Words of mouth
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University of Luzon
College of Business Administration
Dagupan City
__________________________________________________________________________

_____________Online marketing
Others specify _______________________________________________________
12.

What are the major problems encountered by your establishment/ employees?

_____________ Higher discounts rates desired by customers

_____________ Acquisition of furniture
_____________ Higher cost of the items
_____________Competition
Others specify: __________________________________________________________

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