distribution plan final

7/25/2019 Distribution Plan Final

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Colegio San Agustin BianCollege Department

Southwoods City, City of Bian, Laguna

Handumanan Advocacy, Inc.

I. Executive Summary

This proposed business venture will be carried out along with the social mission of

supporting the efforts of people in rural areas for a sustainable living. The

introduction in the market of hand-woven cloth shall be used as the launching pad of

the advocacy. This will be introduced as Handumanan, a coutureclothing brand made

of Filipino traditional hand woven cloth to be innovated into creative garments suitable for

the modern generation. Handumanan means sweet remembrance and thus shall

showcase collection pieces out of the use of the hand-woven fabric.

stimated cost for the implementation of the marketing plan is !"##,###. This shall

cover rental of sewing machine and the working capital such as raw materials, labor

and other direct and indirect costs covering administrative and marketing e$penses.

The cloth shall be woven e$clusively by master weavers of %ugasong, a town in

&nti'ue !rovince and (iagao, also a town in )loilo !rovince based on the design and

color specification of the social enterprise. *evelopment of garment design will be

done in-house in %inan, +aguna and production will initially be subcontracted to

nearby dress shops depending on the intricacies re'uired on the garment design.

The products will be launched as couture clothing collection by creating a campaign that

will stir the nationalistic pride inherent in each and every Filipino Targeted market

would be the upper to middle income bracket who can afford to buy and sustain their

preferences for high fashion and uni'ue 'uality garments and accessories.

II. Situational Analysis

A. Company Analysis

Handumanan &dvocacy, )nc. shall be a newly established firm to be registered

with the ecurities and $change and ommission / with an authori0ed

capital stock of 12 ()++)12 !1 !hp 3,###,###/ divided into 3,###,###

shares with the par value of 12 !3.#/ pesos per share where twenty-five 456/

percent or T71 H82*9* F)FT: TH18&2* !1 !45#,###/ of the

authori0ed capital stock shall be subscribed.


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The following are the incorporators;stockholders of the corporation as of 4alencia Hand-woven products, (iag-ao

Hablon 7eaving, (iag-aoKs 7arps and 7efts.

Today, hablon is used inbarongs- a traditional menLs formal wear, gowns and

shawls to bags, belts, decorative linens for the home, and other accessories

sold locally and internationally. High-end customers such as local and

international fashion designers and bouti'ues value the craftsmanship and fine

te$ture of hablon products which enables most (iag-ao producers to

command higher market prices. orporate buyers such as airline companies,

schools and government offices prefer made-to-order hablon cloth for their

office uniforms. +ocal customers, on the other hand, are fre'uent buyers who

normally buy home and other accessories with uni'ue designs. These

e$amples only prove the general acceptability of hablon products in the

market.

Finished products are usually displayed in the cooperativeKs display room or

in fashion bouti'ues, showrooms, and tiangge. !ersonal marketing is often

used to get direct orders from the customers and products are delivered to

clients via public transportation such as motorbikes and Deepneys. !roducts are

also promoted through trade fairs and festivals organi0ed by local government

unit and the national government agencies like the *T). !roduct brochures are

also used to reach a wider market base.

%ased on the study conducted by the !hilippine ommission on 7omen in

4#3E related to value chain analysis, the following are the identified

challenges confronting the Hablon-(aking )ndustry of (iag-ao=

#. table supply of affordable raw materials i.e. thread yarns/ - producers

are currently dependent on imported raw materials from hina and

Thailand.
http://en.wikipedia.org/wiki/Barong_Tagaloghttp://en.wikipedia.org/wiki/Barong_Tagalog


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$. Fast lab-to market business cycles M other business opportunities could notbe fully e$plored due to the manual processes and limited financialcapacity of the operators.

%. +imited designs of hablon M some producers do not keep a large number

of variety of designs which could diminish hablon market shares in the

local te$tile industry.

&. killed hablon designers working as overseas Filipino workers 1F7s/ -this will diminish the number of local designers unless the industry is

linked to a learning institution that will help build local in fashion

designing pool.

'. High-interest rate for micro-credit M producers find difficulty paying loansespecially during lean months.

%y taking into consideration the identified opportunities and threats faced by

the te$tile and the local weaving industry, a business plan is developed to

transform these challenges and create business opportunities for the hablon

products under the brand name Handumanan.

C. Competitor Analysis

The Handumanan ollection could stand on its own as uni'ue handcraftedproducts incomparable to machine fabricated materials. There are other similar

creative hand woven materials in the !hilippines such as the Tinalak of outhotabato, among others, which have established its own niche of buyers and

would not pose a threat in launching the Handumanan collection.

III. Strate(ic !ar"etin( Plan

A. !ar"et Se(mentation

The Handumanan &dvocacy, )nc. shall implement a geographic segmentation ofthe !hilippine market targeting primarily the main metropolis of the !hilippine

archipelago such as (akati ity and (anila for +u0on, ebu ity for >isayas and

*avao ity for (indanao where most of the high end malls and the countryKs

socialites and fashion conscious residents thrive.

). *ar(et !ar"et


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ince the products will be launched as couture clothing collection, targeted market would

be the upper to middle income bracket who can afford to buy and sustain their

preferences for high fashion and uni'ue 'uality garments and accessories.

C. Positionin(

+or fashion enthusiast and high end markets, Handumanan collection shall be a couture

clothing brand made of Filipino traditional hand woven fabric innovated to bring the

creativeness demanded by the modern generation. )t is not only highlighting the style but

also the craftsmanship and authenticity of !hilippine ulture. Handumanan collection

brand shall be a symbol of the richness of indigenous aesthetics.

I. !ar"etin( !ix Strate(y

A. Product

Handumanan collections are products made from hand woven cloth made in the >isayas.

Hinabol or !inilian is the local name of this product produce in a small barangay of a

town in &nti'ue and referred to as hablon by weavers in (iag-ao, )loilo. This uni'ue

traditional craft is one of the treasured art of the !hilippines long before the panish

influence. (ade of colorful cotton threads using an e'uipment called Tiral. 7orkers

wove to make outstanding checkered design accented by metallic threads to give shinnyeffect on its finish product. 1n the older days the main finish product of hinabol is a

wraparound skirts for women, especially for the elders. (an also use this for their camisa

and trouser. Today, there are few remaining craftswomen making this cloths. Thanks to

the support of an 1rgani0ation that supports the remaining women creating the cloths the

folk crafts heritage is somehow preserved.

onsidering the value and significance of this cultural craftsmanship, the company

decided to make Handumanan as the launching product of the company. This is to

remind the Filipino people of the e$istence of a wonderful work of art of the. %y creating

demand for these products through incorporating modern innovative designs and

developing various by-products, the authentic >isayan hand woven cloths will be

highlighted that will uphold the !hilippine cultural heritage. 2ot only this, by engaging

on this business, we could give opportunity and empower the talented craftswomen of

&nti'ue and )loilo. This could be a source of livelihood and outlet for creativity for the

younger generation of skilled weavers.

&s we launch our campaign, using this hand woven cloth as the companyKs main symbol,

we shall be releasing our collection of couture clothing and other apparel that will fit the

re'uirements of modern Filipinos.


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The Handumanan collection will initially comprise of the following product mi$=

!roduct Type >olume !roduct (i$

%arong 4## isayas and (indanao. &side from the mall, the products shall also be marketed

using the Handumanan website where interested clients can order personali0ed

clothing apparel.


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-. Promotion

The goal is to make the product relevant in todayKs socialite culture. This

particular market is more involved and enthused when it comes to collecting

pieces that are one of a kind, calling it couture fashion. To achieve this, we shall

be creating a campaign that will stir the nationalistic pride inherent in each and

every one of them.

The campaignKs direction will focus on the theme Inangbayan touching on the

vital role of women in the country. 7ith the theme alone, we shall be gathering

support from many womenKs group who is always thrilled to showcase the

different talents Filipinas. The product shall be a symbol of the richness of

indigenous aesthetic. 7ith a social mission endorsing our proDect, it will be

relatively easy to Dustify every purchase to the consumers. very piece will be a

limited edition work of art.

The first step of the campaign is awareness. 1ur plan is to invite one of the most

prominent advocates of enriching the local industry, (r. arlos eldran, to help

with the promotion. He has openly offered free endorsements for local products.

(r. eldran is popularly known for managing and operating Walk This Way, thecompany that hosts walking tours of (anila. ombining humor and costumery

into the history of the capital city, these are attended not only by tourists but also

by locals who want to see Filipino culture in a different light. He alone can start

an uprising in social media.

Then a fashion show shall be staged to launch the product, partnering with

(ichael inco, another well know Filipino couture fashion designer. This will put

the product itself under the radar of prominent art collectors and fashion

enthusiasts, our target market.

Through intensive work on press releases, a page in a broadsheet with a

nationwide reach, a feature in different maga0ines, creating social media bu00,

and involving different 2A1s for women, we e$pect to achieve the needed media

mileage for our products.

I -istribution Strate(y

A. -istribution /b0ective


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The main obDective of this distribution plan is to make flow of Handumananproducts from the place it was made to its target market throughout the country. )t

is important that the product is readily available to the public to consume. )t is

also the goal of the company to create a well-planned distribution strategy that

will minimi0e e$penses and other variables that can be hindrance to the success ofthe company. This is also to penetrate indifferent geographical areas without

having problem in warehousing and storage. 7ith this distribution plan, products

can be properly stored, handled, and in good condition when it reach in theconsumers.

). -istribution Channel Strate(y

#. Pattern of -istribution

elective *istribution is chosen to be the pattern to be used in this distributionplan. 7ith this, the company can only chose most appropriate or best-performing

outlets and focus effort on them. Handumanan products is targeting high fashion

industry and some specific target market. 8sing &lternative distribution, it willcenters the selling effort of Handumanan on a couple of outlets instead of

dispersing it over innumerable negligible ones.

The company can build good working relationship with channel members since itwill only focus on selective areas. )t will gain optimum market coverage and more

control but at a lesser cost than intensive distribution.

$. -istribution Net and Structure

a. Sales Channels

Handumanan aside for personal selling, in order to reach wider target market, will

also penetrating the comprehensive market via distribution channels such as

e$clusive distributors, online stores and direct sellers. %y choosing well knowncompany in each field, Handumanan can sell its products in market places that


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have a good reputation in industry that can help give good impression in favor forthe company that will help to build brand reputation.

b. -elivery Channels

)n order to have fast delivery, proper coordination is re'uired by Handumanan. &llnew items and orders will be sent via *elivery ompany prior to lunching of its

collection monthly. *elivery is always at the end of the month.

c. Service Channels

9eturn and e$change policy of the distributors will be followed. There will bealso a support team of the company that will handle complaint and other costumer

service matter. ach product will have company detail in in its packaging in case

of in'uiry and other problem.

E. 1oles of Each -istribution Channels

ach distribution channels holds very important role to the company. They are theone who will fill the gap between the company and its target market. They will

serve as agent of Handumanan that will face possible client. They are the front

liner of the company that can help Handumanan to know and gather more

information in order to understand its client. *istribution hannels will be thesecondary marketing agents. +astly they are the service provider of the company.

They donLt simply offer itemsN they give building support and post-retail benefits,diminish costs, and upgrade forms, and additionally oversee inventories, all of

which makes esteem for producers and clients alike.

&. Product2 Service !ix per -istribution Channels

*istributor ( *epartment tore/ M %arongs, Filipiana and Aowns

*irect elling 2atasha/ M %ags, 7allets and 1ther &ccessories1nline tore Oalora/ M &ll )tems since it will also cover those interested abroad

'. Pricin( Policy for each -istribution Channel

To have a synchroni0e pricing, both ( department store, 2athasha and Oalora,

Handumanan will provide pricing rules !lease refer to !ricing/. This is to prevent

any conflict to both distribution channels and the company. )n the said pricingpolicy, all aspect of e$penses will be considered and reasonable mark-up

percentage will apply.


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3. /perational Policies and Procedures

Handumanan will follow distribution agreement given by *istribution hannels

yet the company will also propose agreement between the company and

distributors that will help to create healthy business environment.

!lease 9efer to &ppendi$ 3 for the agreement and policy model between

ompany and *istribution hannels.

4. 5ey Performance Indicators

!art of Handumanan @ey !erformance )ndicator @!)/ is creating a company

goal. &fter deciding the company goal, itLs possible to provide a set of common

performance indicators in order to check whether the company goal is beingfollow.

!lease refer to &ppendi$ 4 for e$ample of the Aoal and common @!).

6. Channel Conflict !ana(ement

)n order to minimi0e conflicts, Handumanan will only choose e$clusive contacton each distribution channel. ( *epartment tore as (ain *istributor for

barong, filipiana and gown, 2atasha for bags, wallets and other accessories andfor online store, Oalora will cover all the items.

ach of the *istribution channel will be having schedule of delivery of new

release collection and order. There will be proper guidelines in ordering new setof products that each distribution channel needed.

Contin(ency Plan

)f the competition increases advertising or our sales are less than e$pected, we are

prepared to add as much !hp 35#,### to our advertising budget. *igital marketing

will also use e$tensively.

Handumanan will also Doin various cultural event to promote the product.


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There will be production controller in order to make sure that the production is

following the time frame and a 'uality controller to ensure the 'uality of work.

HANDUMANAN COLLECTIONBy7 Handumanan Advocacy Inc.


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A +inal Paper in Cost and -istribution !ana(ement

Submitted by7

+rederic" S. aldeviesso

1uel 1osillon 8r.

9irlie /rlanda

5atelyn -uran

distribution plan final

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