IN

PHILIPPINES

PRESENTED BY:
VISHANT KUMAR
SARKAR
RAHUL JAIN
RENU GOME.
The Furniture and
Furnishing industry
Wooden furniture is not only attractive but has
become a status symbol these days.
Wooden floor refinishing is a big business and
its demand typically falls into one of these two
categories: steady or booming.
Classic hardwood floors are an expensive,
beautiful home investment.
Products covered include: office furniture,
bedroom furniture, kitchen furniture,
upholstered furniture, non-upholstered seats,
wood furniture, metal furniture, parts of
furniture and seats, sawn wood, wood-based
panels, woodworking machinery.
 PHILIPPINES
Officially known as the Republic of the
Philippines.
An archipelago comprising 7,107 islands.
The capital city is Manila.
Population of about 92,000,000 people.
The Philippines is the world's 12th most
populous country.
 Its tropical climate sustains one of the richest
areas in terms of biodiversity in the world.
There are about 11,000,000 overseas Filipinos
worldwide.
Population and
Demographics
 Geography
 Area: 300,000 sq. km. (117,187 sq. mi.).
 Major cities: -Davao City (1.36 million); Cebu City (0.80 million).
 Terrain: Islands, 65% mountainous, with narrow coastal lowlands.
 Climate: Tropical, astride typhoon belt.
 People
 Nationality: Philippine.
 Annual growth rate :2.04%.
 Ethnic groups: Malay, Chinese.
 Religions (based on 2000 census): Roman Catholic 80.9%, Muslim 5%,
Evangelical 2.8%, Iglesia ni Kristo 2.3%, Aglipayan 2%, other Christian
4.5%, other 1.8%, unspecified 0.6%, none 0.1%.
 Languages: Filipino (based on Tagalog), official national language;
English, language of government and instruction in education.
 Work force (2008): 36.81 million. Services (including commerce and
government)--51%; agriculture--34%; industry--15%
Description of Political
System
The Philippines has a presidential, unitary form of
government.
The President functions as both head of state and
head of government and is commander-in-chief
of the armed forces.
The president is elected by popular vote to a
single six-year term.
The judicial power is vested in the Supreme
Court, composed of a Chief Justice as its
presiding officer and fourteen associate justices,
all appointed by the Philippine President.
 International
Relations
The Philippines' international relations is
focused on its ideals of democracy, peace and
trade with other nations.
As a founding and active member of the
United Nations, the Philippines has been
elected several times into the Security
Council.
The country is also an active participant in the
Human Rights Council.
The country is also a founding and active
member of ASEAN (Association of
Southeast Asian Nations).
Economic Statistics and
Descriptions
GDP (2008): $320.6 billion.
Annual GDP growth rate (2008): 4.6%.
Natural resources: Copper, nickel, iron, cobalt, silver, gold.
Agriculture Products: rice, coconut products, sugar, corn,
bananas, pineapple products, aquaculture, mangoes, eggs.
Industry: Textiles and garments, pharmaceuticals, chemicals,
wood products, food processing, electronics assembly,
petroleum refining, fishing.
Main Crops: Rice, coconuts, corn, sugarcane, bananas,
pineapples, mangoes; pork, eggs, beef; fish.
Natural Resources: Timber, petroleum, nickel, cobalt, silver,
gold, salt, copper.
 Infrastructure
Transportation-
The transportation infrastructure in the country is
relatively underdeveloped. Partly this is due to the
mountainous terrain and the scattered geography of
the islands.
Communications-
The Philippines has a sophisticated cellular phone
industry and a high concentration of users. There
are an estimated 57,344,815 cellular phone
subscribers.
The Philippine Long Distance Telephone Company
(PLDT) is the leading telecommunications provider.
“PESTL” ANALYSIS OF PHILIPPINES
(FOR FURNITURE FIRMS)
POLITICAL –
Filipino Muslims have long felt disadvantaged. Unrest
in the south has been a constant feature of the post-
independence Philippines.
The existence in the south of the Abu Sayyaf Group
(ASG), a violent splinter group.
ECONOMICAL –
To date, the furniture industry is one of the major
source of livelihood for over a thousand workers of
Cebu-based furniture manufacturers and exporters.
Thousands of these workers employed directly and
indirectly are benefited from these said exporters
and manufacturers.
“PESTL” cont…
SOCIAL –
Major portion of Philippines society consists of
Christians (88.2%). Wood is sacred in Christian
culture as JESUS was crucified on wood cross. So,
wood business is profitable in the country.
Also, Philippines has much forest and wood is easily
available. Being made up of many islands, people
feel comfortable to live in wooden houses and use
wooden furnishing also.
TECHNOLOGICAL –
The Cebu furniture industry is slowly updating and
upgrading its technology know-how either by
exposing themselves to foreign technology transfer
or by attending seminars and technology upgrading
programs conducted by expert trainors
“PESTL” cont…
LEGAL –
The Bureau of Trade Regulation and Consumer
protection (BTRCB) is committed to develop an
environment where there exists an empowered and
responsible consumer sector. Consequently the
BTRCP is also committed to create a business
environment conducive to sustaining industrial
growth and development to generate jobs in a
globally competitive market.
BTRCB provide clients a timely relevant and expedient
support services in the field of consumer complaints,
protection of intellectual property rights, business
regulation and information
Planned/impulse buying;
behaviour of customers of
Philippines.
The study determined the extent of planned and impulse
purchases among urban Filipino shoppers. Majority of the
buyers in urban Philippines plan their purchases and only
about 10 percent made completely impulsive purchases.
To promote impulse buying retailers should create a store
environment where the negative perceptions of impulse
are reduced. Advertisements may be designed to
emphasize the non-economic rewards of impulse buying.
Since majority of the purchases are planned, stores
should have highly legible environment and implement
steps to promote shopping efficiency.
BRAND NAME- “FURNISH
LAND”
LOCATION- Furniture capital of the Philippines,
Cebu.
 MARKETING
STRATEGY-
 Approaches to Market Segmentation

•Geographical:
 -International
 -National
 -Regional
•Customer Class:
 -Professional Home Builders
 -Do-it-Yourselfers
 -Light Commercial Construction
•Products:
 -Furniture Parts
 -Windows
 -Plywood Sheathing
•Product Attributes:
 -Moisture Content
 -Price
 -Dimensional Requirements
•Demographics:
 -Age
 -Income
 -Gender
Product differentiators or
competitive advantage
• It is rare to find mass marketing in the wood products
industry. It is hard to achieve for smaller firms and few markets
are that homogeneous. A couple of examples would be 3/8"
sheathing products such as OSB and softwood plywood as well
as SPF No. 2 and better studs.
• Special hardwood boards for the do-it-yourself homeowner
market or environmentally labeled green products.
• Hardwood lumber comes in different grades. These
different grades are marketed toward different market
segments. Generally, higher grade lumber goes to furniture
and cabinet manufacturers, while lower grade lumber is used
by flooring and pallet manufacturers.
• To keep view. known as the total product concept (TPC).
The concept includes all of the intangibles and extras that are
both perceived and paid for by the customer.
 Distribution
• Agents
Brokers
Manufacturer's Rep

• Merchants
Reload Centers
Lumber Trading Companies/Office Wholesaler
Wholesaler/Distribution Yard
Industrial Distributor
Jobber
INDUSTRY SIZE, LOCATION
AND GROWTH
Number of Firms
There are 162 furniture establishments in Cebu, 123
(76%) of which are members of the Cebu Furniture
Industries Foundation, Inc.(CFIF), the industry
association. The other 24% are non-members of
CFIF but listed with the DTI.
Size, Assets and Distribution of Firms
Majority of the firms (50%) are in the small-scale
category. What used to be about 77% (micro, 24%
and cottage, 53%) is now reduced to only 23%
(8% micro and 15% cottage). At the same time,
the medium and the large firms have grown in
number from only 5% to at least 20% (10%,
medium and 10% large).
 Pricing Strategy
There are three basic pricing strategies that
can be used. These are
Cost-based strategies.
Demand-based strategies.
Competition-based strategies.
Each of these three strategies determines price
based on different variables and inputs.

Most wood products companies use some

form of markup pricing
 Advertising
• Radio
• TV
• Magazines
• Newspapers
• Billboards
• Direct Mail
• Business Cards
• Letterhead
TARGET MARKET
• Government offices
• Household
• U.S. call centers
• Medical tourism industry
• International market
• Hospitality industry.
• Contract bonding.
Government agencies
•FOREST MANAGEMENT BUREAU (FMB), DENR
• National statistical and coordination board.
• Income and Employment Statistics Division
• Cebu Furniture Industries Foundation, Inc
• Department of trade and industry, cebu
province.
• Philippine Economic Zone Authority