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Tindahang Pinoy ng Laguna

Business Plan for a Retailer Store Offering Specialty Products from Laguna

Abegail F. Agnes and Nicca R. Manese

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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 upper-

class 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.

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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

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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

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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 plan—Tindahang Pinoy ng Laguna.

If other cities can do it, why can’t we? Most of Laguna-made products are

exported internationally. Why not make it available to local residents first?

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1.0 Objectives

Tindahang Pinoy ng Laguna’s 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.

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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 Biñan (special rice cake) – Biñan

2. Pineapples – Calauan

3. Uraro cookies (arrow root) – Liliw

4. Buko pie and cassava cake – Los Baños

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 Baños and Bay

15. Woodcarvings and paper mache – Paete

16. Woodshaving – Pakil

17. Handmade paper/rice paper – Los Baños

18. Native pandan bags and mats – Luisiana

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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 Pablo’s

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, Doña 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.

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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

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Maharlika Highway preferably near a bus stop which is very much convenient to

its potential market. The store operates 8 hours a day.

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.

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6.3 Organizational Chart

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

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• Coaching and disciplining staff

• 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

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• Ensure effective transfer of files and records

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

• Assist in processing and replenishing merchandise and monitoring floor

stock.

• 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.

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

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

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REFERENCES

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-pinoys-

shopping-more-frequently

4. http://buypinoy.org/about/

5. http://www.sunstar.com.ph/bacolod/local-news/2011/12/03/lawmaker-

pushes-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-tindahang-

pinoy-concept-cebu-159255