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PHILINOR

MANPOWER SERVICES & TRADING CORP.

PHILINOR MANPOWER SERVICES AND TRADING, CORP.

MARKETING
PLAN

Philinor Editions © 2017


Philinor Manpower Services and Trading Corporation

MarketingPlan
Table of Contents

1. EXECUTIVE SUMMARY 1

2. OBJECTIVES 2

3. MARKET ANALYSIS 3

3.1. Target Markets 3

3.1.1. The Labor Market 3

3.1.2. The Industry Market 4

3.2. Market Needs 5

3.2.1. Preference for Local Employment 5

3.2.2. Education and Skills Development 6

3.2.3. Cost-Effective Human Resource Solution 7-8

3.3. Market Trends 8

3.3.1. Rise in Technical-Vocational Labor Supply 8-10

3.3.2. Increasing Demands for Computer 10-11

and Information Technology Skills

3.3.3. Revolution of Mobile and Online Job Applications

and Candidate Search 11

3.3.4. Overseas Labor Migration 12

3.4. Market Growth 13

3.4.1. Philippine Labor and Employment Status 13

3.4.2. Top 3 Labor Occupations in the Philippines 14-15

3.4.3. Employment by Industries 16-17

3.4.4. Number of Establishments by Region 2015 17

4. SWOT ANALYSIS 18

5. COMPETITIVE ANALYSIS 19

5.1. Competitive Landscape 19

5.1.1. Employment Agencies in Tarlac City 19-21


Philinor Manpower Services and Trading Corporation

MarketingPlan
Table of Contents

5.2. Competitive Trends 21

5.3. Competitive Opportunities 22

6. TECHNOLOGICAL ENVIRONMENT 23

6.1. Social Media 23

6.2. Online Job Boards 24

6.3. Labor Market Innovations 25

6.3.1. Recruitment Process Outsourcing 25

6.3.2. Virtual Assistant Staffing 26

7. SOCIO-POLITICAL ENVIRONMENT 27

7.1. Labor and Employment Issues 27

7.1.1. High Unemployment Rate 27

7.1.2. Low Labor Force Participation 27-28

7.1.3. High Incidence of Underemployment 28-29

7.1.4. Youth Unemployment 29

7.1.5. Labor Migration 29

7.1.6. Proposed “No Endo Law” 29-30

7.2. Government Policy Programs 32

7.2.1. Skills Development and Continuing 32

Education and Training

7.2.2. Employment Facilitation Services 32

7.2.3. Internship, Apprenticeship and 33

Dual-Training Programs

7.2.4. Women’s Labor Participation Program 33

8. MARKETING STRATEGY 34

8.1. Market Segmentation 34

8.1.1. Occupational Group 34-36

8.1.2. Industry Segments 37


Philinor Manpower Services and Trading Corporation

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8.2. Services Mix 38

8.2.1. Contract Staffing 38-39

8.2.2. Staff Recruitment and Placement 40-41

8.3. Marketing Mix 41

8.3.1. Pricing 41-42

8.3.2. Positioning 42-43

8.3.3. Product Awarenes Campaign 43-44

9. PROGRAMS AND ACTIVITIES 44


Philinor Manpower Services and Trading Corporation

MarketingPlan PART

Executive Summary 1
E mployment agencies have two (2) target markets to face, namely; the
labor market and the industry market. The labor market constitute the
labor force which is defined as “the portion of the total population aged 15
years old and over who contribute to the production of goods and services
in the country comprising the employed and the unemployed.” According
to the Philippine Statistics Authority an estimated 43.70 million individuals
comprised the labor force in the Philippines as of the last quarter of 2016,
of which, 94.36% are employed or unemployment rate of 5.6% which is
equivalent to 2.04 million individuals.

To aid the process of organization and analysis of labor employment data,


the Philippine government classified the labor and industries into standard
groups based on criteria set by the International Labor Organization.

Regardless of the major classifications of the labor and industry markets,


each of them have distinct needs for which employment agencies are
trying to address hoping to grab their own share in the market. However,
to stand in the middle of a very tight competition, employment agencies
must kept themselves abreast with the highly dynamic markets which are
currently influenced by the rapid technological developments and trends.

Being aware and speculative of the movements and growth in the market,
including, government development programs, can aid employment
agencies to formulate marketing strategies to attract and generate
productive engagements with its target clients. However, in order to
sustain productivity and profitability, employment agencies need to examine
underlying internal strenghts and weaknesses, including, threats and
opportunities in the market.

Competitor analysis must also be undertaken so as to identify their


advantages over own products and services. The results can be used in
measuring difference and will be helpful in developing innovative products
and services for better market positioning.

Carving a niche in the market requires marketing strategies that is focused


and responsive to the needs of the targeted market segments. However,
employment agencies must effectively communicate their value proposition
to their audiences so as to create awareness of their products and
services.

Information and digital technology provide companies an array of media


to select on how they want to convey their messages to their end-users
such as the internet, digital prints, flyers, social media, job boards, etc.
Product or service awareness campaign must be a continuing activity of
employment agencies because “even if a company may have the greatest
product in the world, but unless any consumers are aware of it, not a single
sale can ever be made.”

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Objectives 2
To obtain essential information pertaining to the
growth, trends and competition of the labor and
industry markets for in-depth analysis.

To identify the different market segments and


select a focus group where marketing efforts and
resources will be concentrated to optimize fund
utilization and profitability.

To formulate statements based on established


value principles which will be conveyed to the
target audiences thru advertising and promotions
using different communications media to create
public awareness.

To identify marketing and networking activities


to promote Philinor in the locality and possible
gathering of data for manpower pooling purposes.

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Market Analysis 3
3.1. Target Markets

P hilinor Manpower Services and Trading, Corp. (Philinor) has to


deal with the challenges of two (2) target markets, namely; the
Labor Market and the Industry Market.

3.1.1. The Labor Market

Labor is the primary product of Philinor, through which, depending on


its quality and management, can contribute in shaping the reputation
of the company from among its competitors and to its clients, as
well.

Therefore, it is deemed critical for the company to direct much of its


efforts and resources towards building up quality and effective labor
supply which are readily availble for employment to the potential
clients.

Labor Force, as defined by the Philippine Statistics Authority, “refers


to the population 15 years old and over who contribute to the
production of goods and services in the country. It comprises the
employed and unemployed.”

Employment, on the other hand, in Philippine setting, are grouped


under the following categories, to wit:

a. Employed Persons by Major Industry Group


b. Employed Persons by Major Occupation Group
c. Employed Persons by Class of Worker
d. Employed Persons by Number of Hours Worked Per Week
e. Employed Persons by Sex, Age Group and Highest Grade
Completed,

Understanding better the labor and employment situation in the area


where Philinor decides to operate helps the formulation of strategies
leading to a path towards successful acquistion of quality labor
supply to make up the pool of manpower resources for the company.
Moreover, it would aid the company in defining clearly its goals and
objectives by identifying which niche in the labor market should be
focused on.

Notwithstanding the availability of labor force waiting to be tapped


for employment, challenges remain, however, on how Philinor should
stimulate the target labor market for them to be attracted to become
a part of the company and to sustain them to become a valuable
assets of Philinor.

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Market Analysis 3
3.1. Target Markets

3.1.2. The Industry Market

The Industry Market represents the target clients of Philinor.


Their demands for manpower to mobilize their business
operations is an economic opportunity for Philinor that needs
to be satisfactorily addressed.

Industries act as primemovers of the national economy and


their growth is vital to the existence and sustainability of
employment agencies inasmuch as they are the main source
of revenues.

The Philippine Statistics Authority classifies major industries as follows:

a. Agriculture, forestry and fishing


b. Mining and Quarrying
c. Manufacturing
d. Electricity, gas, steam and air-conditioning supply
e. Water supply, sewerage, waste management and remediation
activities
f. Construction
g. Wholesale and retail trade; repair of motor vehicles and
motorcycles
h. Transportation and Storage
i. Accommodation and food service activities
j. Information and Communication
k. Financial and insurance activities
l. Real estate activities
m. Professional, scientific and technical services
n. Administrative and support service activities
o. Public administrative and defense; compulsory social security
p. Education
q. Human health and social work activities
r. Arts, entertainment and recreation

Knowledge about the economic performance and forecasts of the


different industries operating wihin the scope of operation of Philinor
will provide valuable inferences in deciding what particular industry
that Philinor should serve considering variables in terms of scale,
nature of operation, proximity, competition, etc.

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Market Analysis 3
3.2. Market Needs

K nowledge about the needs and desires of the target markets is


deemed vital in formulating strategies to capture a niche out of
the diverse segments of the market. According to relevant studies
conducted by prominent institutions the following factors affects the
decisions of the labor market, as well as, the industry market with
regards to employment.

3.2.1. Preference for Local Employment

Despite the wealth of opportunities concentrated in the National Capital


Region, more individuals prefer to work in their own locality. These
results were revealed in an online survey conducted by the Department
of Labor and Employment and JobStreet.com Philippines.

Reportedly, at the national level, three out of four employees who


responded to the survey claimed that given the chance, they would
rather stay in their locality to work than find employment elsewhere.

Respondents from the sixteen (16) regions in the country prefer


local employment, even those at the Autonomous Region in Muslim
Mindanao, where the highest percentage of individuals favoring to work
outside their town, has one out of three individuals who prefers to work
locally.

Staying with family and friends, work environment, culture fit, and
work-life balance are the major factors that affect decisions of the
respondents to prefer working locally despite better employment
prospects in other places. On the other hand, it was revealed that the
reasons that pushed individuals to look for employment outside their
localities (or even overseas), include
low salaries offered in the locality,
unattractive employment benefits and
incentives, and the desire to augment
family’s financial needs.

While working locally has proven to


be a popular objective of the Filipino
workforce, the absence of job vacancies
in their proximity compelled jobseekers
to seek gainful employment outside their
localities rather than staying idle and
unproductive.

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Market Analysis 3
3.2. Market Needs

3.2.2. Education and Skills Development

Education and skills are the basic


determinants in measuring the
quality of Labor Supply. Better
educated and skilled individuals
are most likely the ones who can
land good jobs in highly-productive
companies.

As highlighted in the Labor Market


Review published by the World
Bank in January 2016, one in
three workers (excluding farmers)
is employed as a laborer in a job that requires no skills. The prevalence
of low-skilled employment reflects both the scarcity of skilled jobs or the
relatively low educational attainment of the workforce.

As high as 44% of workers have less than secondary education. The study
said that the above proportion is substantially higher in rural areas (57%),
but it is relatively high even in urban areas (30%). If a large proportion of
the workforce is unskilled, firms have little incentive to provide “good” jobs;
and if few “good” jobs are available, workers have little incentive to acquire
skills which is necessary for their advancement.

To address education and skills deficiency in the labor market, the


Philippine government has implemented education and labor programs
aimed at generating employment and alleviating poverty in the country.

The TechVoc strand of the K-12 Program, as one, can be an avenue for the
youths to acquire various technical and vocational skills that would open
opportunities for them to gain employment earlier rather than pursuing
college education that basically requires financial resources which may not
be available to the youths under the marginal sector.

Private employment agencies, government institutions, non-government


organizations and the private sector may pool their efforts and resources
to explore ways and means to develop and implement creative programs
in the areas of skills developmet and jobs matching to open employment
opportunities of the youths which comprises the majority of the labor force.

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Market Analysis 3
3.2. Market Needs
3.2.3. Cost-Effective Human Resource Solution

An organization’s human resources department is responsible for a variety


of functions. Human resource departments oversee employee payroll and
tax filing as well as employee benefit and health administration. Human
resources also manage legal compliance, maintain files and records, and
oversee training and development.

For some businesses, the various functions of the Hurman Resource


Department are too comprehensive and complex to maintain in-house.
Some business firms perceived the need to outsource human resource
functions as a solution to achieve cost-effective HR management. Key
benefits and advantages that can be derived from outsourcing of human
resource functions to employment service providers, include:

A. Outsourcing help businesses minimize risk. Employment and labor


laws change regularly, and it can be difficult for employers to remain
up-to-date on regulations that affect the workplace. Employment agencies
employ dedicated professionals whose purpose is to stay abreast on a
variety of national labor laws. HR staff helps businesses comply with these
laws to avoid grievances from employees that may subsequently lead to
costly lawsuits. Agencies also maintain and audit company policies and
practices to ensure the organization and its employee’s best interests
remain protected.

B. Outsourcing helps reduce the cost of maintaining nonrevenue-


generating back-office expenses. A fully functional human resources
department requires additional office space and highly trained and
experienced HR staff. Many small businesses find it more cost-effective to
outsource HR functions rather than expand to a larger location to meet the
spatial needs of another department. Furthermore, outsourcing costs are
variable and can be reduced when business needs warrant.

C. Outsourcing HR functions create greater efficiency within human


resources systems. Advanced human resources
technology utilized by select employment agencies
help streamline important HR functions, such as
payroll, benefit administration and compliance
management. Outsourcing helps employers and
managers spend less time doing paperwork and
more time dedicated to improving the efficiency and
effectiveness of the workforce.

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Market Analysis 3
3.2. Market Needs
D. Outsourcing HR functions help businesses manage employee
performance and development. Employment service providers
implement performance management plans to ensure employees
comply with company policies and procedures and successfully meet
business goals. Outsourcing firms periodically monitor employee
performance and report findings to management. This reduces the
workload of managers by minimizing the amount of administrative
responsibilities they must focus on.

3.3. Market Trends

M arket trend analysis is a study of past and


current market behavior and their dominant
patterns. An important aspect of conducting a trend
analysis for an organization is to obtain insights on
the market scenario, consumer preferences, and
the macroeconomic environment. Appreciation of
the market trends will aid the company in designing
approaches aimed at aligning marketing activities
to the desires and behaviors of the target market
to attract their interest in patronizing the products
or services of the company. In the Philippines, predictable trends will evolve
in the labor and industry markets as speculated in the studies conducted by
the Philippine government and international aid agencies together with some
independent recruitment process outsourcing firms in the country. Some of
the trends to look forward into for 2017 are as follows:

3.3.1. Rise in Technical-Vocational Labor Supply

With the implementation of the K-12 Program the country will be expecting
a rise in the national labor force with technical-vocational Skills. The K-12
Program has track offerings for courses in the following technical-vocational-
livelihood courses, namely:

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Market Analysis 3
3.3. Market Trends

Tracks Subjects

Home Economics a. Hairdressing


b. Tailoring
c. Caregiving
d. Food and Beverage Services
e. Bread and Pastry Production
f. Housekeeping
g. Tour Guiding Services
h. Tourism Promotion Services
i. Attractions and Theme Parks Tourism
j. Handicraft

Information and a. Computer Programming


Communications Technology b. Medical Transcription
c. Animation

Agri-Fishery Arts Agri-crop Production

a. Horticulture
b. Landscape Installation and Maintenance
c. Organic Agriculture Production
d. Pest Management
e. Rice Machinery Operation

Animal Production

a. Animal Production 11
b. Artificial Insemination- Large Ruminants
c. Artificial Insemination- Swine
d. Slaughtering

Fish Production

a. Fish Nursery Operation


b. Fish or Shrimp Grow Out Operation
c. Fishport/Wharf Operation
d. Fish Processing

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Market Analysis 3
3.3. Market Trends

Industrial Arts a. Automotive Servicing


b. Refrigeration and Air-Conditioning
c. Consumer Electronics Servicing
d. Electrical Installation and Maintenance
e. Shielded Metal-Arc Welding
f. Carpentry
g. Plumbing
h. Tile Setting

Implementation of the K to 12 Program places the country at par with the educational
standards set in the region.

With the impending removal of barriers in 2015 as a result of the commitments in the
ASEAN, there will be freer mobility of labor within the region and enhanced competition
for employment. The competency and work-readiness of a person would spell the
difference in his/her potential of landing a job.

The program of the government to provide free Technical/Vocational (TechVoc)


education, and the vast opportunities that TechVoc offers in the domestic and overseas
job market, have attracted the interest of the youth sector to pursue technical and
vocational education. This phenomenon will somehow provide an idea about what kind
of labor force that our country would have in the future.

3.3.2. Increasing Demands for Computer and Information Technology Skills

Filipino IT experts are among the best in the world. In a survey by the Far East
Economic Review in September 1999, the Philippines ranked second to India in terms
of quality, cost and availability of skilled IT workers in Asia. As recognition of the
knowledge and skills of Filipino IT experts, they are very much in demand in many
parts of the world.

The IT Study report found out that in view of the


expansion initiatives of ICT players, in-demand skills
would be in the following areas:

• Website design/development/assessment
• E-commerce solutions
• E-business consulting/planning
• System Analysts/Programmers
• Data center
• Call Center services

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Market Analysis 3
3.3. Market Trends

• PC technicians
• Network technicians
• Linemen
• Telephone/Cellphone technicians

3.3.3. Revolution of Mobile and On-line Recruitment

The rapid development and advancement of information technology


dramaticall changed how the labor market behaves and interacts.

Gone are the days when employers search for applicants by posting
classified ads in the newspaper, or recruiters watch for new graduates in
college and universities to scout for manpower pool, or people scan the
local tabloid seeking for fitting jobs.

Job seekers today are turning to the social media and local online
platforms to look for job opportunities — including Job Street, Trabaho.
com, Bestjobjs.ph, OnlineJobs.ph, JobDB.com, DOLE’s PhilJobNet, etc.
Employers also can use these platforms to sort potential candidates more
quickly and easily and subsequently process candidates for employment.

This is the new normal. Whether these sites are specifically designed for
job searches — or social platforms that connect billions of people every
day — the next generation of job listings will definitely be accessible
through technology.

The implications of this technological revolution is inevitable. Jobseekers


must develop comfort and competence in these new technologies,
otherwise, they will miss the opportunities which are actually is just a
keyboard-touch away.

Employers and recruiters, on the other


hand, must embrace the technology
and shift recruitment strategies so as
to grab the best fit employees which
are just around the data network
floating on the web.

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Market Analysis 3
3.3. Market Trends

3.3.4. Overseas Labor Migration

According to the Philippine Statistics Authority there are 2.4 million


overseas workers as the year 2015.

Mass migration takes place in the Philippines primarily because of


the failure of government to provide decent jobs and decent wages to
its people. As observed by the UN Committee on Economic, Social,
and Cultural Rights (ESCR) during its examination of the Philippines’
compliance with the ESCR Convention, the following factors led
Filipinos to leave for overseas employment, to wit:

• lack of employment opportunities


• low levels of minimum wage
• mass employment poverty

For the year 2015 the labor force population of the


Philippines was pegged at 42.15 million, of which,
5.6% or equivalent population of 2.37 million are
unemployed and 17.6% underemployed or equivalent
population of 7.02 million individuals. Underemployed
is officially defined as “those already with jobs but are
still seeking additional hours of work.”

Despite the upward growth in the labor force attributed to the ageing
population and the entry of new graduates annually in the labor
market, the lack of good and productive employment opportunities
is still looming in our country forcing some individuals to find gainful
occupations overseas.

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Market Analysis 3
3.4. Market Growth

3.4.1. Philippine Labor and Employment Status

As of the last quarter of 2016, an estimated 43.70 million individuals


comprised the labor force population in the Philippines. The 2016 figure
reflects a 3.6 percent growth of the labor force as reported in 2015 from
a total labor population of 42.15 million. It concludes that, year on year,
the country’s labor supply is consistently increasing obviously because
of the ageing population and the entry of new college graduates who
entered in the labor force. On the other hand, increase in employment
can also be observed from 2014-2016. Average employment rate for
the reference three-year period is 94.36% or residual equivalent rate of
unemployment of 5.6%. Labor force and employment status from 2014-
2016 is presented below.

Labor Force and Employment


Philippines 2014-2016
(in thousands)
2014 2015 2016

43.7
41.38 42.15 41.66
39.77
38.65

2.73 2.37 2.04

LABOR FORCE EMPLOYED UNEMPLOYED

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Market Analysis 3
3.4. Market Growth

3.4.2. Top 3 Labor Occupation in the Philippines

The 2016 survey conducted by the Philippine Statistics Authority revealed that Laborers
and Unskilled workers are among the top occupation of the labor force registering
11.38 million labor population followed by Managers, Service and Sales Workers, and
Skilled Agricultural, Forestry and Fishery Workers.

Employment by Major Occupation Group 2016


(in thousands)

ARMED FORCES OCCUPATIONS AND SPECIAL Occupations 84

ELEMENTARY OCCUPATIONS 11,380

PLANT AND MACHINE OPERATORS AND ASSEMBLERS 2,416

CRAFT AND RELATED TRADE WORKERS 3,167

SKILLED AGRICULTURAL, FORESTRY AND FISHER WORKERS 5,453

SERVICE AND SALES WORKERS 6,349

CLERICAL SUPPORT WORKERS 2,342

TECHNICIAN AND ASSOCIATE PROFESSIONALS 1,428

PROFESSIONALS 2,128

MANAGERS 6,916

A. Elementary Occupation Group comprises the following common jobs:

• Domestic Cleaners and Helpers • Fast Food Preparers


• Cleaners and Helpers in Offices, Hotels • Kitchen Helpers
and Other Establishments • Garbage And Recycling Collectors
• Hand Launderers And Pressers • Refuse Sorters
• Vehicle Cleaners • Sweepers And Related Laborers
• Window Cleaners • Messengers, Package Deliverers And
• Crop Farm Laborers Luggage Porters
• Livestock Farm Laborers • Maintenance Personnel
• Mixed Crop And Livestock Farm Laborers • Meter Readers And Vending-Machine
• Garden And Horticultural Laborers Collectors
• Fishery And Aquaculture Laborers • Golf caddie
• Mining And Quarrying Laborers • Parking attendant
• Civil Engineering Laborers • Pin boy
• Building Construction Laborers • Recreation facilities attendant/aide
• Hand Packers • Ticket collectors
• Freight Handlers • Usher
• Shelf Fillers • Parking valet

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Market Analysis 3
3.4. Market Growth
B. Managers Occupation Group includes positions as follows:

• Legislatorrs • Information and Comm. Technology Mgrs.


• Senior Government Officials • Child Care Services Managers
• Chiefs and Heads of Villages • Health Service Managers
• Senior Officials of Special Interest Orgs. • Aged Care Service Managers
• Managing Directors and CEOs • Social Welfare Managers
• Finance Managers • Education Managers
• Human Resource Managers • Financial and Insurance Branch Mgrs.
• Policy and Planning Managers • Hotel Managers
• Administrative Managers • Restaurant Managers
• Sales and Marketing Managers • Retail and Wholesale Trade Managers
• Advertising and PR Managers • Sports, Recreation and Cultural Center
• Research and Development Managers Mgrs.
• Agro-Forestry Production Managers • Conference center manager
• Aqua and Fisheries Production Managers • Contact center manager
• Manufacturing Managers • Shopping center manager
• Mining Managers • Travel agency manager
• Construction Managers
• Supply and Distribution Managers

C. Service and Sales Workers covers the following occupations:

• Travel Attendants and Travel Stewards • Shop Supervisors


• Transport Conductors • Shop Sales Assistants
• Travel Guides • Cashiers and Ticket Clerks
• Cooks • Fashion and Other Models
• Waiters and Bartenders • Sales Demonstrators
• Hairdressers • Door-to-Door Sales Persons
• Beauticians and Related Workers • Contact Center Sales Persons
• Cleaning and Housekeeping Supervisors • Service Station Attendants
• Household Service Providers • Food Service Counter Attendants
• Building Caretakers • Teacher’s Aides
• Astrologers, Fortune-Tellers • Personal Care Workers in Health Svcs.
• Companions and Valets • Health Care Assistants
• Undertakers and Embalmers • Home-Based Personal Care Workers
• Pet Groomer and Animal Care Workers • Firefighters
• Driving Instructors • Police Officers
• Stall and Market Sales Persons • Prison Guards
• Streetfood Sales Persons • Security Guards
• Shopkeepers

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Market Analysis 3
3.4. Market Growth

3.4.3. Employment by Industries

Industries in the Philippines are categorized into three (3) major classifications, namely:
Agriculture, Industry and Services. Under these major classifications are divisions which
categorized further the sub-industries in accordance to the 2009 Philippine Standard
Industrial Classification (PSIC), to wit:

A. Agriculture

Agriculture, Hunting and Forestry


Fishing and Aquaculture

B. Industry

• Mining and Quarrying


• Manufacturing
• Electricity, Gas, Steam and Airconditioning Supply
• Water Supply; Sewerage, Waste Management and Remediation Activities
• Construction

C. Services

• Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles


• Transportation and Strorage
• Accomodation and Food Service Activities
• Information and Communication
• Financial and Insurance Activities
• Real Estate Activities
• Professional, Scientific and Technical Activities
• Administrative and Support Services Activities
• Public Administration and Defense; Compulsory Social Security
• Education
• Human Health and Social Work Activities
• Arts, Entertainment and Recreation
• Other Service Activities
• Activities of Households as Employers; Undifferentiated Goods and
Services-Producing Activities of Households for Own Use
• Activities of Extraterritorial Organizations and Bodies.

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Market Analysis 3
3.4. Market Growth

According to the survey conducted by the Philippine Statistics Authority on


industries that absorbed labor force employment for 2016, the Services
Industry has the highest employment acceptance at 20.68 million
representing 53.40% of the total employed labor force followed by the
Agriculture sector at 11.80 million employment absorption. A graphical
presentation of the above data is presented below:

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ϯϭй

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3.4.4. Number of Establishments by Region 2015

As of 2015, the number of establishments in the Philippines reached a total of


900,914 as reported by the Philippine Statistics Authority. The National Capital
Region shares the largest number of establishments followed by CALABARZON and
Central Luzon. The graph below shows the details of the number of establishments
per region as at 2015.
Number of Establishments by Region
2015
ARMM 9,305
CARAGA 16,693
CAR 18,119
REGION 4B-MIMAROPA 26,673
REGION 8 - EASTERN VISAYAS 27,199
REGION 2 - CAGAYAN VALLEY 27,823
NEGROS ISLAND REGION 28,940
REGION 9 - ZAMBOANGA PENINSULA 31,137
REGION 5 - BICOL REGION 34,136
REGION 6 - WESTERN VISAYAS 34,906
REGION 10 - NORTHERN MINDANAO 35,977
REGION 12 - SOCCSKSARGEN 36,637
REGION 11 - DAVAO REGION 46,888
REGION 1 - ILOCOS REGION 48,042
REGION 7 - CENTRAL VISAYAS 53,608
REGION 3 - CENTRAL LUZON 101,176
REGION 4A-CALABARZON 131,700
NATIONAL CAPITAL REGION 191,955

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SWOT Analysis 4
SWOT
refers to strengths,
weaknesses, opportunities
and threats of Philinor.
SWOT analysis is a management tool used to identify
the internal and external factors that may affect the
company’s future performance. The company’s
strengths and weaknesses are the internal factors while opportunities and
threats deal with factors external to the company (environmental factors).

The grid below shows the perceived Strengths, Weaknesses, Opportunities and
Threats of Philinor.

S W
• strategic access to quality and • new entrant in the industry
diverse human resources • lack of experience in manpower
• organized systems and procedures recruitment and selection
• sufficient start-up capital and • no available manpower pool
existing revenue source • limited clients
• professional administrative and • no established market niche
operations personnel

O T
• robust economic forecasts • enactment into law of “Endo” Bill
• consistent increase of local quality • proliferation of large RPO firms
labor force • liquidation of affiliated companies
• participative government
employment program (DOLE/PESO)
• social media platforms
• revolution of recruitment process
outsourcing and virtual services

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Competitive Analysis 5
5.1. Competitive Landscape

C ompetition is what the job market is all about. It


doesn’t matter if you own a staffing agency, work as
a recruiter, or are seeking employment, there are always
competitors to overcome.

5.1.1. Employment Agencies in Tarlac City

Search in Google Maps returns the following list of


employment agencies operating in Tarlac City, namely:

1. Placewell International Services Corporation - Tarlac Branch


2nd Flr., Skyland Bldg., Mc Arthur H-Way, Brgy. Sto. Cristo, Tarlac City

2. Manmover Specialists, Inc.


Metro Town Mall, Mc Arthur Highway, Sto. Cristo, Tarlac City
(045) 982 0247

3. Eastside International Manpower, Inc.


2F, 947 Mc Arthur Highway, Pag-asa San Rafael, Tarlac City

4. Search Maid Tarlac


29B, Gate 1, Calle Lucinda
0908 541 4753

5. Prestige Manpower and Services, Inc.


Unit 1, LC Building, Mc Arthur Highway, Tarlac City
(045) 628 6301

6. Jenerick International Manpower Inc.


27 Hilario St, Ligtasan, Tarlac City
(045) 309 1673

7. Active Works Incorporated


301 Juan Luna Street, Tarlac City
(045) 982 3154

8. Bzmark Promo Specialists


148 Hilario St., Ligtasan, Tarlac City
(045) 982 4567

9. Maonyag International Manpower


3Rd Jagui Building, 103 F. Tañedo St, Poblacion, Tarlac City

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5.1. Competitive Landscape

10. World Of Work


Romulo Blvd, Cut-Cut 1, Tarlac City
(045) 491 0746

11. Paragon Manpower And General Service


McArthur Highway, Tarlac City
(045) 309 0838

12. Great Olympus General Services, Inc.


(045) 491 3742

13. Concorde International Human Resource Corporation


3rd Floor Estacio Building, F. Tanedo Street Corner Santos Street
Poblacion, Tarlac City

Most of the above employment agencies is providing services for overseas


manpower employment except for the following:

Agency Manpower Needs/Remarks


Search Maid Tarlac Local Household Helpers, Babysitters
Website not up-to-date
Jenerick Int’l. Manpower Inc. Local and International placement
Website not up-to-date
Manmover Especialists Inc. Facebook account not updated
World of Works Various local occupation needs.
Professional website and facebook
Updated. With branch in Clark
Paragon Manpower and Local occupations latest is hotel staff and
General Services Poultry Farm personnel.
Bzmark Promo Specialist Local salespersons, Janitorial,
merchandisers. No website. No
facebook.
Active Works Incorporated Local. No website and facebook
accounts.
LifeMAIDeasy Local household helpers. Professional
website.

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Market Analysis 5
5.2. Competitive Trends

Almost all of the local employment agencies


use the internet in promoting and creating
awarenes about their products and services.
Having a facebook fanpage is a common
practice of the above employment agencies
to open communication channels apart from
a separate website for their company that
integrate a Job Opening information page and
on-line Application Form where jobseekers can fill-up and become a permanent
resource pool in the agency’s manpower database.

However, it was observed that only a few kept their websites and facebook
accounts up-to-date which implies that some failed to optimize their on-
line marketing tools, apparently because of the absence of a dedicated web
administrator who is responsible in doing such task.

It is also noteworthy to observe that World of Work Recruitment Specialist


effectively used on-line marketing practice by means of posting job openings to
various free on-line job portals available in the internet such as Indeed.com.ph,
bestjobs.ph, job fair on-line.net, jobscloud.net, pampangajobs.net and may be
more.

Joining Job Fairs organized by local government units was also a strategy
of some local employment agencies to impose their presence and build a
reputation in the job market.

Competitive analysis is the process of comparing the


strengths and weaknesses of your own business or
product to those of other businesses, in order to make
your business or product more competitive.
Cambridge Business English Dictionary

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Market Analysis 5
5.3. Competitive Opportunities

As a new player in the manpower services industry, Philinor needs


to learn good lessons from its competitors - this is the paramount
objective of this marketing plan. We cannot go ahead alone without
considering the environment in which our business operates.
Successful employment agencies in Tarlac has common strategies of
using the internet, social media platforms and on-line job portals in
their marketing strategies. Philinor can replicate these strategies to
create a buzz in the on-line market but of course equal importance
must also be given to traditional marketing like handing out brochures
to the target labor and industry markets to establish close personal
interaction with them.

Another observation is that majority of the employment agencies


subjected to the research are market focused. Their marketing
strategies are driven by the needs and demands of the market like in
the case of World of Works. Their market-driven strategy is manifested
by the level of diversity of occupations that they are posting in the
internet. Obviously, they want to build-up a wide range of manpower
pool ranging from non-skilled workers to professionals to serve the
varying demands of their clients.

In contrast, LifeMAIDeasy, employs a product-focused strategy by


limiting their manpower pool to consist only of domestic household
helpers.

Learning the different strategies from the competitors open windows


of opportunity for Philinor to transform its inherent weaknesses into
strength by identifying market needs that other employment agencies
failed to address.

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Technological Environment 6
6.1. Social Media
Definitely, all businesses of today are into Social Media
marketing just like in the employment agency industry. It
was revealed during the process of the research that while
employment agencies have their own websites, yet, they
still maintain social media accounts such as facebook,
instagram, twitter, etc. Nowadays, persons from all ages and
from all walks of life are attracted to the internet for several
purposes - fun, interaction, business exploration, research
and education, entertainment, and even job searching and
marketing. Social media platforms have turned to be a very
rich and fertile ground to serve as a communication channels
for almost everything and for almost everyone. It is for this reason that
business firms took advantage of this phenomenal change in the information
and communication landscape and use it as a means to capture potential
markets for their products and services.

What also makes social media so influential is the fact that it is both free and
that anyone can sign up for membership. Social media sites have massive
memberships. Facebook alone has an active membership of over one
billion users. The massive population of social media, which is continuing to
grow, proves that social media is not merely a phase that will be culturally
outgrown.

It’s not just individuals who have made use of social media. From small,
local businesses to huge, transnational corporations have all made use of
social media as part of their marketing strategies. The reason why social
media is such an indespensable network communication tool to businesses
today is not only because it is free but, above all, it allows businesses to
interact and engage directly with their customers, forming honest and sincere
conversations, in an informal environment.

The sheer size of users of social media sites spells its importance especially
to business firms. Consider the following information:

Social Media Sites Active Users


Facebook 1.19 billion
YouTube 1 billion
Google 343 million
Twitter 215 million
LinkedIn 259 million
Flickr 87 million
Pinterest 70 million

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Technological Environment 6
6.2. Online Job Boards
Another technological trend in the field of employment
search and matching is the emergence of online Job
Boards.

Online job boards are web platforms where companies


post their vacant positions and often accept job applicatons
directly through the job board.

Employers typically pay a fee to the job board sites in order


to list their jobs on the platform which stores resume’s of
applicants where employers can access for their initial assessment.

Monster, the largest and best-known job board, is a general board with
postings across a broad range of industries. Indeed and Monster tend to have
more candidates without a college degree and are geared towards teenagers,
temporary job seekers and applicants with only a high school education.
Indeed offers a broader array of jobs including contract positions, work-at-
home opportunities, summer jobs, and volunteer work. On the other hand,
CareerBuilder is focused more towards people with a Bachelor’s degree.

Other more specialized boards focus on a particular industry. Dice, for


example, is a leading site for tech jobs. Career Bank and eFinancial Careers
focus on finance and banking. Variety Careers posts media jobs in television,
radio, and production.

In the local scene, no less than the Deparment of Labor and Employment
(DOLE) built the PhilJOBNet, the Philippine government job Matching Portal to
serve the labor market in our country. Other local job boards in the Philippines,
include: Trabaho.com, Jobrapido.com, Workabroad.ph, Bestjobs.ph, Freelancer/
Odesk/elance, Craigslist Manila, Onlinejobs.ph and JobStreet.

One of the obvious benefit of online job boards is convenience for the
applicants. There is no need for them to buy high-grade resume paper and
postage stamps inasmuch as they can dispatch dozens of e-mails to which
resume’s can be attached or complete online applications in a flash.

Using the Internet to search for jobs appeals to job seekers who are interested
in applying for as many jobs as possible. Having a computer and internet
conneciton, jobseekers’ only expense is transportation in going to chosen
companies to attend personal interviews. In addition, jobseekers can search
for a job any time, day or night, without worrying about catching a schedule to
file an application with an employer only during business hours.

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Technological Environment 6
6.3. Labor Market Innovations

T he explosion of information and communication technology dramatically


changed how businesses interacts with their customers and how products
and services are being delivered to the end-users.

Human Resource companies are racing to develop innovative products and


services to complement with the current technological advancements and
realign their business strategies to meet the changing market demands
and behaviors. Trending in the human resource communities today are two
products which gained increasing attention to business industries who are
looking to establish efficiency and economy in their operations, to wit:

6.3.1. Recruitment Process Outsourcing (RPO)

While Recruitment Process Outsourcing is an industry that emerged from


traditional recruiting, there are a few fundamental differences between the two.

RPO is a form of business process outsourcing (BPO) where an employer or


company transfers the whole or part of its recruitment processes to an external
service provider. RPO provider can provide its own manpower to handle
personnel recruitment and management activities or may assume the existing
HR employees of the company, including, the technology, methodologies and
reporting systems/procedures.

RPO differs greatly from traditional employment agencies or staffing


companies essentially because RPO providers assume the system design and
management of the recruitment process and will be responsible for the results.
RPO’s responsibilities do not end after successfully filling-up a vacant position
but RPO will be involved also in managing human resources of the company
such as looking at turnover rates, technology improvements, scalability, and
operational efficiency and effectiveness of the recruitment
process

The trend of business globalization presents huge


opportunities for RPO providers to capture the needs of
multinational companies who will be looking for local
talents to fill up their organizations.

According to Dallas based Everest Group, a global


management consulting firm “RPO is one of the fastest
growing single-process Human Resources Outsourcing
(HRO) markets”. With a worldwide growth rate of over

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Technological Environment 6
6.3. Labor Market Innovations
25%, RPO has become a very big deal. North America is the largest RPO
market in the world, followed by Europe. Singapore, Australia, and Hong
Kong are seeing massive growth in RPO as well, however, RPO may be
growing faster in Europe than in any other region of the world. According to
the Staffing Industry Analysts (SIA), 75% of large European countries either
“have RPO arrangements in place today, or are likely to ‘seriously explore’”
investing in RPO over the next few years.

6.3.2. Virtual Assistant Staffing

A virtual assistant is an independent contractor who provides administrative


services to clients but works outside of the client’s office. Virtual assistants
typically operate from their homes, but are given authority to access,
remotely, the necessary planning documents of their clients.

Virtual assistant staffing have become more prominent as businesses


increase their use of the Internet on their daily operations. Because a virtual
assistant is a contractor, a business does not have to provide the same
benefits that it would otherwise give to full-time employees. Furthermore,
since a virtual assistant works offsite, there is no need to allot a physical
workspace for the staff to use, thus, making such work arrangement the
best option not only for business start-ups who runs business-on-trial,
but also for thriving corporations who are planning to expand operations
offshore.

With the increasing number of individuals providing freelance virtual


assistance from home, the employment market has seen a proliferation of
Web-based companies that serve as agents between prospective employers
and the virtual assistance contractors. Some of these sites have enormous
work pools that made up of individuals across the globe with a wide range of
experience and expertise.

On these sites, clients can post details about the duties and tasks that they
need for the virtual assistant to perform with the corresponding maximum
rate that they are willing to pay. Subsequently, prospective virtual assistants
may then bid on the job and give the client samples of their work for review.
In some cases, the client can set up a video conference to interview the
applicants and to more thoroughly assess their qualifications.

The specific duties of a virtual assistant vary according to the needs of the
client and the terms of the contract. Some virtual assistants handle clerical
and bookkeeping duties, while others may post regular updates to social
media or write articles for a blog. A well-rounded virtual assistant may also
handle travel arrangements, appointment scheduling, data entry and online
file storage.

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Socio-Political Environment 7
7.1. Labor & Employment Issues

7.1.1. High Unemployment Rate

Despite the reported rapid economic growth in the Philippines in recent


years, unemployment remains a persistent problem in this nation of
more than 100 million people.

As at January 2017, Philippines lagged behind among the majority of


ASEAN countries in terms of employment generation according to the
Philippine Statistics Authority. The table below shows comparative
performance of our country against our neighboring countries in the
region.

Jan 2017
Country
Unemployment Rate
Indonesia -
Malaysia 3.5%
Philippines 6.6%
Singapore 2.2%
South Korea 3.6%
Thailand 1.2%
China 4.0%

One reason that our country is lagging behind performance is that job
creation has struggled to keep pace with an ever-expanding population.
In three of the past five years, the number of people entering the job
market has been greater than the number of jobs created.

This problem highlights the failure of the government in spreading the


benefits of economic growth down to more deprived areas or to the most
vulnerable labor segment.

7.1.2. Low Labor Force Participation

Labor force participation in occupation remains relatively low in our


country. Only an estimated 60.70% of the population aged 15 years
old and above is looking for work, one of the lowest levels in the region
as compared against 76% in Vietnam, 67% in Malaysia and 68% in
Indonesia.

This is partly explained by the common value among the Filipino families
to send their children to higher education. In the Philippines young

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Socio-Political Environment 7
7.1. Labor & Employment Issues
Filipinos typically spend some time in college before entering the labour
market, contributing to the lower participation rate. Other youths in the Asian
region find occupation earlier.

Another factor may be the low quality of jobs available. Official statistics as
of January 2017 showed that just 62% of workers or a labor population of
24.7 million are working in the formal sector or regular wage earners which
are classified as follows.

Worked for Private Household 1.90 million


Worked for Private Establishment 19.31 million
Worked with Pay in Own Family Business 0.12 million
Worked for Government/GOCC 3.38 million

The rest of the employed population are informal sectors which are classified
as:

Self-Employed without Paid Employee 10.70 million


Employer in Own Family Operated Business 1.46 million
Unpaid Family Workers 2.47 million

The country's uneven employment market has traditionally led millions of


Filipinos to seek better-paying jobs overseas. One out of every 10 Filipinos
works abroad, sending billions of dollars in remittances home, helping to
drive the country's consumption-driven domestic economy — but doing little
to promote employment. Surveys showed that only 6-7% of remittances
from overseas Filipino worker goes to savings and investment while the
majority are into household consumption, housing, education, etc.

7.1.3. High Incidence of Underemployment

Workers are categorized as underemployed if they would like to work more


hours. They are categorized as visibly underemployed if they work less than
full time (less than 40 hours per week). Otherwise, they are categorized as
invisibly underemployed.

Underemployment reflects low job quality since workers receive low income
that is not sufficient to cover their family’s needs, hence they expressed the
desire to have additional hours of work in their present job or an additional
job, or have a new job with longer working hours to earn extra wages.
Underemployed persons are also often the working poor, who cannot afford
to remain without work and therefore accept any type of job available
regardless of the working conditions and compensation arrangements.

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Socio-Political Environment 7
7.1. Labor & Employment Issues

Underemployment as of January 2017 was reported at 16.3% or equivalent


labor population of around 6.3 million individuals. The present incidence rate
of underemployment in January 2107 is lower than the average rate posted in
2015 and 2016 pegged at 18.5% and 18.3%, respectively.

7.1.4. Youth Unemployment

Unemployment rate among the 15-24 year olds is more than twice the overall
unemployment rate and triple the unemployment rate among the 25-54 year
olds.

Official statistics showed that as of October 2016, the share of youth who are
neither in education nor in employment in the total young working population
reached 22.1 percent, implying that around 4.4 million young Filipinos are
underutilized with skills not being enhanced either by education, training, or
employment.

Additionally, school-to-work transition for many young Filipinos is associated


with change, waiting, and uncertainty. It takes a high school leaver four years
and a college graduate two years to find a permanent wage job.

7.1.5. Labor Migration

Limited employment opportunities force Filipinos to migrate by necessity and


not by choice.

Many Overseas Filipino Workers (OFWs) have been pushed to take on low-
skilled jobs abroad. In 2015, 37.8 percent were employed as household
workers. Despite the resilience of these low-skilled jobs and being a steady
source of employment for many Filipinos, OFWs employed in these kinds of
jobs remain vulnerable to abuse and exploitation.

7.1.6. Proposed “No Endo” Law

House Bill No. 1208 or the proposed “No Endo Law” introduced by Bayan
Muna Partylist thru its Representative Carlos Isagani T. Zarate demands
for the passing of the bill articulating that the end of contract policy and
contractualization “blatantly violates the workers’ right to security of tenure.”

Particular provisions of the Labor Code that the “No Endo” Law proponents are
pushing through are the following:

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Socio-Political Environment 7
7.1. Labor & Employment Issues

Article 106. Contractor or subcontractor is a person or an entity with


whom an employer or principal enters into a contract for the performance
of the latter’s work.

When the employer or principal contracts the performance of a work that is


necessary or desirable to its business or operations, the worker or workers
supplied by the contractor or subcontractor. agency, person or intermediary
shall be considered the employee or employees of the employer or
principal, and not of the contractor or subcontractor, etc. For all intents and
purposes, the contractor, subcontractor, agency, person or intermediary
shall be considered merely an agent of the employer or the principal who
shall be responsible for the workers in the same manner and extent as if
the latter were directly employed by the said employer or principal. For this
purpose, the worker or workers suppllied by the contractor, subcontractor,
agency, person or intermediary under this paragraph shall be considered
regular employee or employees of the employer or principal, as provided for
in Article 280 and Article 281, as amended, of the Labor Code.

Article 279. Security of tenure. - No employer shall terminate the services


of an employee except for a just cause or when authorized by this Title.
A regular employee who is unjustly dismissed from work shall be entitled
to immediate reinsratement without loss of seniority rights and other
privileges, entitled to his/her full back wages, inclusive of allowances, and
other benefits or their monetary equivalent computed from the time
compensation was withheld up to the time of actual reinstatement. If
reinstatement is no longer feasible due to strained relationships between
the parties, the employer, other than the payment of backwages, is
also liable to pay the dismissed employee or employees separation pay
equivalent to at least one (1) month pay for every year of service, whichever
is higher;

PROVIDED FURTHER that a fraction of at least five months is considered as


one (1) year for purposes of this provision.

FURTHER, without prejudice to the other penalties that may be imposed


under this Code, any employer who unjusdy dismissed an employee shall
be liable to pay a fine of double the amount of the full backwagcs, inclusive
of allowances, that the dismissed employee is adjudged to receive.

ARTICLE 280. Regular and casual employment. - The provisions of written


agreement to the contrary notwithstanding and regardless of the oral
agreement of the parties, an employment shall be deemed to be regular
where the employee or worker has been engaged to perform activities

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Socio-Political Environment 7
7.1. Labor & Employment Issues
which are usually necessary or desirable in the usual business or trade
of the employer, except where the employment has been fixed for a
specific project or undertaking the completion or termination of which has
been determined at the time of the engagement of the employee or worker
or where the work or service to be performed is seasonal in nature and
the employment is for the duration of the season.

An employment shall be deemed to be casual if it is not covered by the


preceding paragraph: Provided, That any casual employee or worker
who has rendered at least one year of service, whether such service is
continuous or broken, shall be considered a regular employee with respect
to the activity in which he/ she is employed and his/her employment shall
continue while such activity exists.

Any stipulation in any written or oral contract of employment, also known


as ENDO contract, for a definite or fixed period designed to subvert the
provisions of this act and covering work activities which are necessary
or desirable in the usual business or trade of the employer as defined
under this title, shall be null and void ab initio and the person or persons
responsible for such acts shall be penalized in accordance with Section
8 hereof. Further, notwithstanding the void character of such ‘ENDO
contract’, the worker or employee affected shall be deemed a regular
employee of the employer concerned, in accordance, with the provisions
of this Act.

Article 281. Probationary employment. A probationary employment shall


not exceed six (6) months from me first day of service of an employee.
This provision applies to all workers or employees, regardless of the
nature of employment, continuous or broken. The services of an employee
who has been engaged on a probationary basis may be terminated for
a just cause or when he/ she fails to qualify as a regular employee in
accordance with reasonable standards made known by the employer to
the employee at the time of engagement. An employee, who is allowed
to work after a probationary period, shall automatically be considered a
regular employee.

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Socio-Political Environment 7
7.2. Government Policy Programs

T o address the various issues and challenges concerning labor and


employment problems in our country, the Philippine Government
crafted the Philippine Development Plan 2017-2022 (PDP 2017-2022)
which defines strategic political interventions that the government should
undertake to improve the performance of the labor sector in contributing
growth to the national economy. Specific strategic concerns spelled out in
the PDP 2017-2022 include, among others, the following:

7.2.1. Skills Development and Continuing Education and Training

Workers may improve their employability through skills enhancement.


Providing opportunities for skills development and re-tooling is critical
in addressing the problem of the youth who are not in education,
employment, and training (NEET).

For prospective and current OFWs, properly identifying demand and


upgrading their skills to meet the demand, will help them be employed in
more stable and higher-paying jobs. Improvement in access to advanced
degrees and trainings on topics such as entrepreneurship and proficiency
in different languages, including through distance or online learning, will
be promoted. The Phil. Qualification Framework (PQF) should not only ease
school-to-work transition but should also guide professionals, employees,
and employers in skills upgrading and professional development.

7.2.2. Employment Facilitation Services.

Assistance to workers entering the labor market, especially first-timers,


will be strengthened. Career advocacy, coaching, and counseling will be
enhanced, both for those seeking employment locally or overseas. Online
services for OFWs will also be included. In addition, regulations will be
reviewed with the aim of facilitating the eventual reintegration of OFWs in
the domestic economy.

Local government units (LGUs) need to be capacitated in responding to


the challenges in their respective areas. In particular, public employment
service offices (PESOs) need to prepare for the needs of senior high school
graduates and persons with disabilities, and consider the opportunities
beyond their localities.

A dynamic and competitive labor market requires high-quality and


easily-accessible labor market information (LMI) for job search. A public
system such as PhilJobNet- -the government’s web-based LMI, jobsearch,
matching and referral portal--plays a significant role in providing Filipinos
with free access to labor market information.

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Socio-Political Environment 7
7.2. Government Policy Programs

PhilJobNet will be enhanced to: (a) meet the LMI needs of vulnerable
groups of workers; and (b) serve as the labor market information portal
of the Philippine government, capable of housing the critical supply and
demand database systems. To ensure the availability of labor requirements
for the expected surge in demand from public works projects, the following
must be accessible to communities: labor market information, skills
registration, employment facilitation services, training and monitoring.

7.2.3. Internship, Apprenticeship and Dual-Training Programs

Current programs of the government that will be strengthened are:

(a) Government Internship Program (GIP) for those who want to pursue
public service;
(b) JobStart Program to enhance the employability of “at-risk” youth; and
(c) apprenticeship, learnership and dual-training programs.

Employer or enterprise-led skills training will be explored. For the work


placements of job seekers, particularly the long-term unemployed, the
government will support skills training networks across a wide range of
industries, sectors and geographical areas.

7.2.4. Women’s Labor Participation Program

Strategies to increase labor participation of women include:

(a) fully implementing the RPRH Law;


(b) improving access and affordability of child care services;
(c) formulating policies that promote work-life balance;
(d) providing re-training services for women returning to the workforce;
(e) enhancing maternal and paternal benefits; and (f) improving access of
women to entrepreneurial opportunities.

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Marketing Strategy 8
D eveloping a marketing strategy is vital for any business. Without one,
efforts to attract customers are likely to be haphazard and inefficient.

The focus of strategy should be making sure that products and


services meet customer needs and developing long-term and profitable
relationships with those customers. To achieve this, Philinor need to create
a flexible strategy that can respond to changes in customer perceptions
and demand. It may also help in identifying whole new target markets.

The purpose of marketing strategy should be to identify and then


communicate the benefits which the market can derive from the products
and services of the business.

8.1. Market Segmentation

M arket segmentation is a marketing term referring to categorizing of


prospective market into groups, or segments, that have common
needs and respond similarly to a marketing action. Market segmentation
enables business establishments to target different categories of clients/
customers who perceive the full value of certain products and services
differently from one another.

In the case of Philinor, the labor and the industry sectors represent the
two (2) major markets that need to be segmented in order to determine
specific strategies of each group that need to be formulated to meet their
varying needs in relation to the industries that they may serve. The labor
market can be segmented according to the following groups:

8.1.1. Occupational Group

The Philippine Statistics Authority adopted the 2012 Philippine Standard


Occupational Classification (PSOC) representing standard statistical
classification of the different occupational groups of the working
population in accordance to the international standard as prescribed by
the International Labor Organization.

According to the PSOC, there are ten (10) major classifications of


occupations in our country, namely:

Group 1 Managers - workers in this group plan, direct,


coordinate and evaluate the overall activities of
enterprises, governments and other organizations, or
of organizational units within them, and formulate and
review their policies, laws, rules and regulations.

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Group 2 Professionals - workers in this group increase the


existing stock of knowledge, apply scientific or artistic
concepts and theories, teach about the foregoing in a
systematic manner, or engage in any combination of
these activities.

Group 3 Technicians and Associate Professionals - workers


in this group perform mostly technical and related tasks
connected with research and the application of scientific
or artistic concepts and operational methods, and
government or business regulations.

Group 4 Clerical Support Workers - workers in this group


record, organize, store, compute and retrieve
information related, and perform a number of clerical
duties in connection with money-handling operations,
travel arrangements, requests for information, and
appointments.

Group 5 Service and Sales Workers - workers in this group


provide personal and protective services related to
travel, housekeeping, catering, personal care, or
protection against fire and unlawful acts, or demonstrate
and sell goods in wholesale or retail shops and similar
establishments, as well as at stalls and on markets.

Group 6 Skilled Agricultural, Forestry and Fishery Workers -


workers in this group grow and harvest field or tree and
shrub crops, gather wild fruits and plants, breed, tend
or hunt animals, produce a variety of animal husbandry
products, cultivate, conserve and exploit forests, breed
or catch fish and cultivate or gather other forms of
aquatic life in order to provide food, shelter and income
for themselves and their households.

Group 7 Craft and Related Trades Workers - workers in


this group apply specific knowledge and skills in the
fields to construct and maintain buildings, form metal,
erect metal structures, set machine tools, or make, fit,
maintain and repair machinery, equipment or tools,
carry out printing work, produce or process foodstuffs,
textiles, or wooden, metal and other articles, including
handicraft goods.

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Group 8 Plant and Machine Operators and Assemblers -
workers in this group operate and monitor industrial
and agricultural machinery equipment on the spot or by
remote control, drive and operate trains, motor vehicles
and mobile machinery and equipment, or assemble
products from component parts according to strict
specifications and procedures.
Group 9 Elementary Occupations - occupations in this group
involve the performance of simple and routine tasks
which may require the use of handheld tools and con-
siderable physical effort.
Group 0 Armed Forces Occupations - this major group
includes all jobs held by members of the armed forces.
Members of the armed forces are those personnel who
are currently serving in the armed forces, including
auxiliary services, whether on a voluntary or compulsory
basis, and who are not free to accept civilian
employment and are subject to military discipline.
Included are members of the army, navy, air force and
other military services, as well as conscripts enrolled for
military training or other service for a specified period.

As of October 2016, the Philippine Statistics Authority officially reported the


following employment performance per occupation.

Working
Occupation
Population
1. Elementary Occupations 11.38 million
2. Managers 6.96 million
3. Service and Sales Workers 6.34 million
4. Skilled Agri, Forestry and Fishery Workers 5.45 million
5. Craft and Related Trade Workers 3.17 million
6. Plant & Machine Operators and Assembers 2.42 million
7. Clerical Support Workers 2.34 million
8. Professionals 2.13 million
9. Technicians and Associate Professional 1.43 million
0. Armed Forces & Special Occupations .84 million

While marketing efforts may be focused to the top performing occupations,


Philinor shall adopt market-driven strategies, so that, labor demands from
other segments shall not be set aside.

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8.1.2. Industry Segments

Major industries, in the Philippine context, is divided into three (3) major
categories, namey: agriculture, industry and services. Below is a table
showing sub-categories of the three major industry categories and respective
employment statistics as of January 2017 as reported by the Philippine
Statistics Authority.

Employment
Major Industries/Sub-Categories
Statistics
Agiculture: 10.027 million

Agriculture, Hunting and Forestry 8.870 million


Fishing and Aquaculture 1.157 million

Industry 6.837 million

Mining and Quarrying .179 million


Manufacturing 3.281 million
Electricity, Gas, Steam and Airconditioning Supply .087million
Water Supply; Sewerage, Waste Management and .075 million
Remediation Activities
Construction 3.215 million

Services 22.483 million

Wholesale and Retail Trade; Repair of Motor Vehicles 7.909 million


and Motorcycles
Transportation and Storage 3.070 million
Accommodation and Food Service Activities 1.677 million
Information and Communication .364 million
Financial and Insurance Activities .499 million
Real Estate Activities .169 million
Professional, Scientific and Technical Activities .246 million
Administrative and Support Services Activities 1.461 million
Public Administration and Defense; Compulsory 2.367 million
Social Security
Education 1.222 million
Human Health and Social Work Activities .504 million
Arts, Entertainment and Recreation .316 million
Other Service Activities 2.677 million
Activities of Extraterritorial Organizations and Bodies .001 million

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8.2. Services Mix

P hilinor will offer a range of services to its clients depending on their needs
and demands. For a start, though, the company will focus on basic
manpower services hoping to establish a reputation in the industry. Future
expansion of markets and diversification of services will never be set aside as
soon as the company progresses to serve the demands of human resources
for the emerging industries/sectors. The service mix of Philinor is composed
of the following:

8.2.1. Contract Staffing

Contract Staffing is a type of service wherein Philinor undertakes to


accomplish all the recruitment activities and processes until the best
recruits will be selected to fill up a position in favor of the principal employer.
The recruits work as contractual employees of Philinor which employment
contracts are fixed in duration and are co-terminous with the life of the Service
Agreement entered into between Philinor and the principal employer.

Payroll management and payment of salaries of the contractual employees will


be handled by Philinor including withholding and remittances of mandatory
statutory contributions to the pertinent government agencies. The recruits,
being contractual employees of Philinor will be under the administrative
control, monitoring and management of the agency.

On a monthly basis, Philinor will bill the clients for the salaries and wages paid
to the recruits including employer’s share of social security, health insurance
and pag-ibig, plus, administrative margin wich should not exceed 20% of
the direct labor cost. Likewise, 12% Evat shall also be charged to the total
amount payable to Philinor to be remitted periodically to the Bureau of Internal
Revenue (BIR) as required.

Contract staffing gives value to companies who operates under contractual


projects or businesses with seasonal sales, including, start-ups who want to
initially put up their business on trial opting to focus on their core activities
while outsourcing manpower requirements for auxiliary personnel who will be
tasked to perform administrative or financial support services.

Existing industries, on the other hand, can also benefit from Contract Staffing
by relieving their respective Human Resource Personnel from tedious task of
preparing payrolls and remittance of statutory contributions on a regular basis.
Such relief would enable the in-house HR Department to focus on monitoring
and development activities of their regular personnel.

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8.2. Services Mix
8.2.2. Staff Recruitment and Placement

Staff Placement is a type of service wherein Philinor manages the entire


recruitment process and select the best recruit to fill a vacant position in
the client’s company. The responsibility of Philinor starts upon the approval
of the client to engage the services for staff placement and ends upon
the confirmation and acceptance of the principal employer of the recruit
endorsed by Philinor.

In contrast to Staff Contracting, the employee to be deployed to the client/


employer will become their own employee instead of Philinor. Therefore,
all human resource activities, particularly, compensation and statutory
remittance management will be assumed by the client/employer.

Normally, staffing agencies collects front-end fees from the client/employer


as “Engagement Fee” to cover administrative cost to be incurred during the
recruitment process. Subsequently, upon endorsement and acceptance of
the employee, the client/employer will be charged a one-time “Success Fee”
which is, in most cases, equivalent to one (1) to three and a half months
salary of the placed candidate employee depending on position level that he/
she will assume.

As with standard recruitment practices, Philinor shall undertake the following


activities in dealing with Staff Recruitment and Placement services:

Obtain detailed job specification from client. If


1 Job Specification
necessary call the client to obtain the specification and
understand their requirements.

Search Database, Advertise, Flyers, PESO Sorting, Job


2 Applicant Search
Fair Headhunt

Short-list applicants who meet the inherent


3 Screen CVs
requirements of the specification. Set-up interviews.

Conduct interview as per confirmation sheet and


4 Conduct Interview
interview questions.

5 Short List Short list CV’s to be forwarded to the client.

6 Forward CVs Forward complete CV’s to the client via email.

7 Brief Client Brief client on short listed applicants. Run through their
work history and point out any other important facts.

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Set-up interviews on behalf of client. Brief applicant


8 Set up Interviews
on company and interview process.

Follow up on interviews and give feedbakc to both


9 Follow up
applicant and client.

Obtain references. Conduct background investigation


10 Investigation
(credit worthiness, criminal and qualification checks.)

11 Medical Advise all successful applicants to have a medical


checkup

12 Requirements
Ensure that applicant submitted complete
requirements. Check validity.

Formally endorse applicant to the client/employer for


13 Endorsement final confirmation and acceptance together with the
application documents and examination results.

8.3. Marketing Mix


8.3.1. Pricing

Pricing of employment services is dependent primarily on the level of


occupation and the corresponding experience and skills set of the employee
to be deployed to the client/employer, but under all circustances, shall not
be lower than the daily wage rate as prescribed by the Department of Labor
and Employment.

Notwithstanding the salary rates to be offered by Philinor to its clients, the


following standard pricing structure shall be adopted:

Direct Labor Cost Admin Margin E-VAT Service Cost


Basic Salary Hiring Expenses: 12% of Monthly billing to
13th-month Pay Communication the sum the Client-
Incentive Leaves + Transportation + of Direct = Employer
SSS Premium Administration Labor Cost
PhilHealth Cont. Supplies plus Admin
HDMF Cont. Utilities Margin

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Among the cost elements of the pricing structure only the Basic Salary and
the Admin Margin are variable. The rest of the cost items are fixed rates as
regulated by the government. Hence, arriving at strategic price is critical in
order to arrive at the most competitive offer in comparison to other employment
agencies. Internet sites like Payscale.com provide average compensation index
of different occupations which can serve as the basis in pricing the services of
Philinor. Nevertheless, cost of services will also depend on the price offer of
the client/employer inasmuch as most companies have internal compensation
policies that defines the rates vis’-a-vis’ the position classification of the
company. Therefore, bid adjustments can only be made on the Administrative
Margin if such is the case.

8.3.2. Positioning

Product positioning is an important element of a marketing plan. According to


Wikipedia “positioning refers to the place that a brand occupies in the mind of
the customer and how it is distinguished from the products of the competitors.”
It is the process which marketers use to determine how to best communicate
business products/service’s attributes to the target market.

Effective product positioning ensures that marketing messages resonate


with the target consumers and compel them to positively react on the value
proposition which the company is communicating to them . It also requires a
clear understanding of customer needs, so that, product positioning starts with
identifying specific niche market segments.

Labor and industry segments are defined by the government into different
classifications for statistical purposes. These labor and industry classifications
guide employment agencies in choosing what particular industry or labor class to
focus on based on their desired parameters.

Simply copying what competitors are doing will have no value in introducing the
services of the company to its target markets. Philinor should clearly identify in
what aspects that its services shall be different from its competitors. It is not
enough, though, to have self-knowledge about the uniqueness of the services
of Philinor. This differentiating aspects must be communicated to the target
audiences through effective communication channels such as the internet, print
media, public announcements, broadcast, etc.

Consider how car manufacturers position their products through communication


via television commercials during sporting events, for instance, or how cosmetics
manufacturers run full-page, full-color ads in women’s magazines.

Of course, communicating needs a carefully crafted statement to effectively


convey the message that Philinor wants to position in the minds of its target

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audience. An example of a positioning statement which can be adopted by
Philinor could be:

“For Certified Techvocs looking for immediate employment


or College Graduates aspiring to establish career paths,
and for enterprises searching out for best talents to help
steer business growth while considering effectiveness
and economy in sourcing out human resources, Philinor,
your faithful partner in staff recruitment and job placement
connects and matches labor competencies and your
company’s human resource requirements to meet both
objectives of achieving mutual gains.”

8.3.3. Product Awarenes Campaign

Creating product awarenes is one of the most important activity that


Philinor should undertake to create awareness
of the services being offered to the target A company may have the
markets. To ensure widespread information
greatest product in the world,
about the company’s products and services,
a wide variety of marketing strategies and but unless any consumers
options must be undertaken. Once a customer are aware of it, not a single
is captured, engaged and satisfied about the sale can be made.
product or services, recommendations to peers
can extend awareness to others without the
initiation costs.

Philinor must embark on the following activities to achieve product


awareness objectives, to wit:

Leverage the Web

The information technology explosion gives everybody unlimited


freedom of access to any information in the internet. This
phenonmenon provides opportunity for Philinor and other companies
to showcase its products and services to anyone who are connected
to the internet. Therefore, creating a user friendly website to optimize
user experience will be of great value for Philinor.

By designing a website that integrates online job application is highly

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recommended inasmuch as it will enable jobseekers to submit their
resume’s without the need of going to the office. This kind of system
will help the company build up its database of manpower pool for future
selection in case there are demands for manpower placements.

On the other hand, Philinor can also subscribe to online job boards like
Jobstreet.com, LinkedIn, PhilJobNet, etc. to access external databases of
jobseekers and talent hunters for possible employment engagement.

Create a Social Media Presence

Social media sites such as Facebook and Twitter are vital tools in developing
brand awareness of Philinor because they serve as forums where
consumers discuss their personal and business experiences. When a
single employee or enterprise has good experience about Philinor, positive
feedbacks can spread to their friends and comrades creating a widespread
awarenes in the social media community.

Advertise Using Traditional Methods

Spreading product awareness through the traditional print media remains to


be effective especially if you are promoting directly to the audiences within
your locality. Posting large billboards can attract the attention of passersby
which can provide leads to information about the products and services of
Philinor.

Printing of flyers, on the other hand, and distributing it personally to the


target individuals or business enterprises can allow direct interaction
between the marketer and the potential customer without the need of using
any communicaition equipment/gadgets. Any queries about the product or
services can be attended to immediately which facilitates the communication
process.

Sponsor or Attend Public Events and Job Fairs

Sponsoring or attending civic or charitable events can expose Philinor to


different types of personal and corporate entities which may open windows
of opportunities for business engagements. Displaying posters and
streamers showing logos and marketing slogans of Philinor can capture the
attention of the public attending such social events.

Attending Job Fairs also allows Philinor to gather resume’s from interested
job applicants while giving a chance to be known to other competitors
which may become friendly partners of the company rather than rivals in the
industry.

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Programs and Activities 9


Activities Status
Presentation and discussion of Marketing Plan
Design, printing and distribution of Flyers
Design, printing and placement of Streamer
Enhancement and Updating of Philinor Website
Improvements of Facebook Fanpage
Courtesy visit at the City and Provincial PESO Offices
and TESDA for Networking
Coordination with DOLE for data on registered
employment agencies
Data gathering of Business Establishments operating
in Tarlac
Sending of proposals to Target Business
Establishments

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