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Introduction ................................................................................................................ 3

Culture analysis ......................................................................................................... 3

1. Geographic: ................................................................................................ 3

2. Climate： ..................................................................................................... 4

3. Capital： ...................................................................................................... 5

4. Religion： .................................................................................................... 5

5. Arts................................................................................................................ 6

6. Living condition ......................................................................................... 7

Diet and nutrition： .................................................................................. 7

Typical meals： .......................................................................................... 9

(1) Adobo ................................................................................................ 9

(2) Lechon ............................................................................................ 10

(3) Sisig ................................................................................................. 10

Types of house: ....................................................................................... 11

(1) Bahay Kubo .................................................................................... 11

(2) Bahay na bato ................................................................................ 12

Types of Cloths: ...................................................................................... 13

Social institution: ............................................................................................ 14

(1) Role of family: ................................................................................ 14

(2) Family Dynamics: .......................................................................... 15

(3) Education level: ............................................................................. 15

Political system ............................................................................................... 17

(1) Executive Level: ............................................................................ 17

(2) Legislative Level: ........................................................................... 18

(3) Judicial Level: ................................................................................ 18

Political stability index (-2.5 weak; 2.5 strong) ............................................. 19

Legal system .................................................................................................... 20

Social organization:........................................................................................ 20

(1) Group society/Multicultural: ......................................................... 20

(2) Language: ....................................................................................... 20

Population ......................................................................................................... 21

Gross Domestic Product: ..................................................................... 24

Income per capital & family income: ................................................. 25

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Poverty:...................................................................................................... 26

Types and quality of transportation: .................................................. 27

Economic Analysis ................................................................................................. 28

Communication and internet: ...................................................................... 28

Currency: ........................................................................................................... 30

Dominant economic activity: ....................................................................... 31

Trade restriction .............................................................................................. 32

Distribution channels ..................................................................................... 32

Media .................................................................................................................. 35

Cindy’s day in Philippines .................................................................................... 37

Conclusion ................................................................................................................ 38

Preference:................................................................................................................ 41

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Introduction

In fact, the Philippines is geographically advantageous and naturally becomes

a business. At the activity base, Manila and Cebu are the main trading centers

of the region. Philippines The vast expanse of the Pacific Ocean, separated

from the so-called New World by a sea, close to the west Vietnam, Thailand

and other Indo-China regions, while the southwest links to Malaysia and

Indonesia.

Culture analysis

1. Geographic:

The Republic of the Philippines is a sovereign state in archipelagic South Asia,

with 7,611 islands spanning more than 300,000 square kilometers of territory.

It is divided into three island groups: Luzon, Visayas, Mindanao.1

2

Graph1: The map of Philippines

1 https://www.gov.ph/about-the-philippines 2 https://www.gov.ph/about-the-philippines

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2. Climate：

Philippines weather in November to February is cool, while March to May

is hot and dry. June to October is rainy, with the months between July and

September characterized by typhoons. And the average temperature is 78

degrees F/25 degrees C；average humidity is 77%.3

4Graph2: The weather in Philippines

3 http://www.tourism.gov.ph/culture_arts_climate.aspx 4 http://hikersbay.com/climate/philippines?lang=en

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3. Capital：

Manila was established as the capital city of the Philippines on June 24,

1976 by a presidential order.5

4. Religion：

Some four-fifths of Filipinos profess Roman Catholicism. Adherents of

other denominations of Christianity constitute roughly one-tenth of the

population. Islam was brought to the southern Philippines in the 15th century

from Brunei (on Borneo), to the west. The religion was already well established

in the Sulu Archipelago and Mindanao by the time of European contact, and it

had a growing following around Manila. Contemporary Muslim Filipino

communities, collectively known as Moros, are largely limited to the southern

islands and account for about 5 percent of the population.

Small numbers of Filipinos practice Buddhism or local religions. Buddhism

is associated primarily with communities of Chinese descent. Local religions

are maintained by some of the rural indigenous peoples.6

5 https://www.worldatlas.com/articles/what-is-the-capital-city-of-the-philippines.html

6 https://www.britannica.com/place/Philippines/Plant-and-animal-life#ref23732

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7

Graph3: Philippines religious affiliation in 2015

5. Arts

Filipinos are very fond of music. They use various materials to create

sound. They love performing dances (Tiniking and Carinosa) and group singing

during festive celebrations. Settlers from Spain introduced to them a variety of

musical instruments like the ukulele, trumpet, drums, and violin. Most of their

music is contemporary and they have also learned to write their own songs

based on real life events. People are also fond of folklore, which was influenced

by the early church and Spanish literature. Jose Rizal, the country’s national

hero, is famous for his literature and novels inspired from the independence

story of the country.8

7 https://www.britannica.com/place/Philippines/Plant-and-animal-life#ref23732

8https://www.globalizationpartners.com/2015/02/20/the-philippines-culture-and-tradition/

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6. Living condition

Diet and nutrition：

Filipinos are big eaters, even though it is not obviously seen in their petite

bodies. The Philippines is known as Asia’s melting pot because of the

uniqueness and variety of their food. Filipinos can’t go a day without including

rice in their meals. They serve rice first followed by the various viands they have

grown to eat and cook. Filipinos have a very regular eating schedule：morning,

mid-morning, lunch, afternoon (merienda) and dinner.

They enjoy a variety of sweet foods adopted from other countries which

encouraged them to make their own desserts like “maja blanca” a dessert made

of coconut milk, corn, sugar, or “puto” and “palitaw” which are also made of

coconut milk. They also enjoy eating “halo-halo” for their afternoon snack which

means “mixture,” a popular dessert that consists of layers of cornflakes, ice

cream, small pieces of gelatin, milk and shaved ice.

During special occasions like a town’s big event in celebration of their

saint’s feast, a favorite food called “lechon,” a suckling pig that has been

roasted until the skin turns crusty is served. Some street foods are also

common in the country like the famous “balut,” a boiled duck egg with an

embryo, and fish and squid balls on a stick that are dipped on spicy and sweet

sauces.

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The Philippines is a predominantly coffee-drinking nation. One of the most

popular variants of coffee coming from the mountains of Batangas is known as

kapeng barako. Another well-known variant of coffee is the civet coffee.

Even before the establishment of coffeehouses in the Philippines, coffee has

been part of the Filipino meal.9

Meat and vegetable consumption rates：

Graph4: Forecasted meat consumption per capita in 2019 (kilograms)

9 https://en.wikipedia.org/wiki/Filipino_cuisine

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Typical meals：

There are 3 of the typical dishes in Philippines.

(1) Adobo

No list of Filipino food would be complete without adobo.

A ubiquitous dish in every household in the Philippines, it's Mexican in origin.

But Filipinos found that cooking meat (often chicken and pork) in vinegar, salt,

garlic, pepper, soy sauce and other spices was a practical way to preserve it

without refrigeration.

This cooking style can be applied to different meats or even seafood.

It's best sample it in a Filipino home, but the garlicky version of the lamb adobo

can be found at Abe restaurant in Taguig.

Graph5: Lamb adobo

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(2) Lechon

The lechon is the most invited party guest in the Philippines. The entire pig

is spit-roasted over coals, with the crisp, golden-brown skin served with liver

sauce, the most coveted part.

In Cebu, the stomach of the pig is stuffed with star anise, pepper, spring

onions, laurel leaves and lemongrass resulting in an extremely tasty lechon,

which needs no sauce.

In Manila, folks can get their piggy from Elar's Lechon, while in Cebu, the

best is CnT Lechon.

Graph6: Roast pig

(3) Sisig

Nothing goes to waste in Filipino food. In the culinary capital of

Pampanga, they turn the pork's cheeks, head and liver into a sizzling dish

called Sisig.

The crunchy and chewy texture of this appetizer is a perfect match for a cold

beer.Serve with hot sauce and Knorr seasoning to suit the preference of you

and your buddies.

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Credit goes to Aling Lucing, who invented this dish at a humble stall

along the train railways in Angeles City, Pampanga.

While Sisig can be found in many restaurants, try the original version at

Aling Lucing Sisig.

10

Graph7: Sisig

Types of house:

(1) Bahay Kubo

Houses were built in a more or less similar manner, in the same way that

the settlements were built beside rivers and streams. The houses were built

near rice fields and coconut groves and orchards. The houses sit on posts

raised above the ground. The rooms were small, and generally, with a single

multipurpose room, having only the cooking space differentiated among the

areas in the houses. There is a particular architectural piece called “batalan”

that is often situated in the rear part of the house, and is utilized for domestic

work like washing, bathing, water storage, etc. The houses were made of raw

material like wood and bamboo. Tree houses or houses built on trunk of trees

rooted to the grounds were seen as an advantageous position.

10 https://edition.cnn.com/travel/article/50-delicious-philippines-dishes/index.html

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Graph8: The house in Philippines

(2) Bahay na bato

The arrival of the Spaniards in 1571 brought in European colonial

architecture to the Philippines. Though not specifically suited for the hot

tropics, European architecture was transposed via Acapulco, Mexico into a

uniquely Filipino style.

In this era, the nipa hut or bahay kubo gave way to the Bahay na

bato (stone house) and became the typical house of noble Filipinos.

The Bahay na bato, the colonial Filipino house, followed the nipa hut's

arrangements such as open ventilation and elevated apartments. The most

obvious difference between the two houses would be the materials that were

used to build them.

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11

Graph9: The house in Philippine

Types of Cloths:

People in the Philippines dress for the weather. Casual attire during the

day for women is light blouses and shorts. For men collared T- shirts worn

over slacks. In the evening skirts are substituted for shorts and the T-shirts

are tucked in. For men only：If you expect to have to attend any occasion

which would usually require a jacket and a tie, there is a wonderful substitute.

You may go to a department store and buy a barong. It is an embroidered

shirt that is considered a formal dress. 12

11 https://en.wikipedia.org/wiki/Architecture_of_the_Philippines

12 http://www.tourism.gov.ph/general_information.aspx

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13 14

Graph10: Baron

Social institution:

(1) Role of family:

In the Philippines Family comes first among any other priorities in life. A typical

Filipino family is composed of father, mother, with children and may also include

an extended family of aunt, uncle, cousin or grandparent.15

The father is head of the family and acts as the breadwinner, just like the family

in Taiwan. He makes major decisions in consultation with his wife. He

implements discipline in the family. The treasurer and home keeper in the family

is the wife. Mother takes care of the children and her husband. Children are

usually closer to her than to their father. Nowadays, there are also working

mothers because of the rising need in the cost of living. The father and the

mother work hand in hand, to establish and give the life that their children

deserve.16

The children are taught to respect and obey their parents. The elder sibling,

especially the girl, is trained to be her mother’s assistant. She learns to look

after her younger siblings and to manage the home. Elder sibling also gets

respect from the younger ones. Filipino children are assigned home chores to

train them to be responsible. The family molds the child’s character. It is where

moral values are first being taught. The parents are the ones responsible in

inculcating good manners and right conduct to their children that they will carry

13http://primer.com.ph/tips-guides/2017/05/13/expats-guide-to-the-philippines-national-costume/

14 https://tanailee.wordpress.com/traditional-philippines-clothing/ 15 https://neahreyes.wixsite.com/nearamos/single-post/2016/08/06/The-Filipino-Family-Dynamics 16 https://www.mormon.org/blog/what-is-the-role-of-the-family

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on as they grow up.

To sum up, Filipino family member composed is similar to Taiwan , is a father

society system.

(2) Family Dynamics:

Family dynamics are the patterns of relating, or interactions, between family

members. Each family system and its dynamics are unique, although there are

some common patterns.

There is no family quite as big as the Filipino Family, and to fully immerse in its

dynamics. The typical Filipino Family reunion gets planned at least a year

before, and it will fall either on Christmas break or around March to April during

the Holy Week. It will entail such long planning because the typical Filipino

Family reunion is so BIG, it will demand all relatives up to the 4th degree to be

there.

The Filipino Family may have different values, religion and traditions brought

about by decades of migration – but there’s one thing that binds them

universally, and that is food.

(3) Education level: The education system of the Philippines has been highly influenced by the country’s

colonial history. That history has included periods of Spanish, American and Japanese

rule and occupation. The most important and lasting contributions came during America’s

occupation of the country, which began in 1898. It was during that period that English was

introduced as the primary language of instruction and a system of public education was

first established—a system modeled after the United States school system and

administered by the newly established Department of Instruction17.

The United States left a lasting impression on the Philippine school system. Several

colleges and universities were founded with the goal of educating the nation’s teachers. In

1908, the University of the Philippines was chartered, representing the first comprehensive

public university in the nation’s history.

Table1: Education level

Education School/Level Notes

Primary Paaralang

Elementarya

(Elementary)

Elementary school covers the first six years

of compulsory education (grades 1–6)

17 https://www.studycountry.com/guide/PH-education.htm

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informally divided into 3 years of primary level

and 3 years of intermediate level.

Secondary

.

Paaralang

Sekundarya

(Secondary)

Secondary education consists of four levels

largely based on the American schooling

system. DepEd (Department of Education)

specifies a compulsory curriculum for all

secondary schools, public and private

Tertiary

University/College -

Undergraduate Level

Higher Education is governed by the

Commission on Higher Education (CHED)

that was created on May 18, 1994 through the

passage of Republic Act No. 7722, or the

Higher Education Act of 1994. The creation of

CHED was part of a broad agenda of reforms

on the country’s education system outlined by

the Congressional Commission on Education

(EDCOM) in 1992. Part of the reforms was

the trifocalization of the education sector into

three governing bodies: the CHED for tertiary

and graduate education, the Department of

Education (DepEd) for basic education and

the Technical Education and Skills

Development Authority (TESDA) for

technical-vocational and middle-level

education.

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Graph11: The age of education

Political system

Philippines has a well-organized and well structured political system which is

balanced by its democratic republic, representative and presidential elements.

In nutshell, the government of Philippines can be regarded as constitutional

democracy headed by the President of the country.

In the Philippines political hierarchy, the President is both the head of the state

and the head of the government .The country showcases a Pluriform multi-party

system. The political hierarchy of Philippines showcases a horizontal hierarchy

with three levels – Executive, Legislative and judicial which further are

subdivided in a vertical hierarchical format.

The political hierarchy starts with national level political figures and officials

which are divided into separate sections for effective execution, which are then

followed provincial, city and town level hierarchy18.

Graph12: Political system

(1) Executive Level:

The executive level in the Philippines political hierarchy comprises of the

President and the Vice – President. The executive level holds the responsibility

and authority forthe day to day administration of the country. This level is

18 https://www.hierarchystructure.com/philippines-political-hierarchy/

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responsible for executing the law. The President acts as the head of the state

and is assisted by the Vice President in his responsibilities.

The President is responsible for heading the government, overseeing the

country’s administration, bureaucracy management, foreign policy

administration and management and for commanding the defense forces of the

country.

The cabinet members & the secretary department also come under executive

level of government and these are also headed by the President.

(2) Legislative Level:

This is the second level in the Philippines political hierarchy and comprises of

two houses – House of Senate and the House of representatives. The House

of Senate is headed by Senate President and House of representatives by

Speaker.

These two houses work at the national & state level and are responsible for

passing, amending and repealing laws and regulations for the people of the

country. Apart from developing and amending laws, these two houses are

also responsible for tax management, tax rates and for budget & money bills.

(3) Judicial Level:

The judicial level comprises of the system and hierarchy of courts and is

responsible for interpreting and applying the law throughout the country. The

top most levels in the judicial system are acquired by the Supreme Court of the

country and then are the other courts in the hierarchy. These courts are – Court

of Appeals Sandiganbayan, Court of Tax Appeals Ombudsman and other lower

courts of state & district level.

After the national level political arrangement lie the Provincial level political

hierarchy. These also work in a similar manner as national level government

does. This political hierarchy is headed by Governor, Vice Governor and

Sangguniang Panlalawigan Members.

The politics of town and cities of Philippines is headed by Mayor. The Mayor is

followed by Vice Mayor who is followed by Sangguniang Bayan Member. These

levels are then followed by Barangay, Barangay Captain and Barangay

Kagawad Members.

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Graph13: Three branches of PH Government

Stability of government:

Political stability index (-2.5 weak; 2.5 strong)

For that indicator, The World Bank provides data for the Philippines from 1996

to 2017. The average value for the Philippines during that period was -1.25

points with a minimum of -1.78 points in 2008 and a maximum of -0.25 points

in 1998. See the global rankings for that indicator or use the country comparator

to compare trends over time.19

Graph14: Political Stability

19 https://www.theglobaleconomy.com/Philippines/wb_political_stability/

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Legal system

The legal system of the Philippines is a combination of continental civil law and

the Anglo-American common law system. The Philippine justice system is

composed of the Supreme Court, the Court of Appeals, the regional trial courts,

the Court of Tax Appeals and the metropolitan and municipal trial courts.

It is very important to find a reliable local lawyer. It's worth putting some effort

this recruitment, because there are also some unskilled and even fraudulent

lawyers catching new clients. Making a mistake here might cost you a huge

amount of money. Consultations with other Finnish companies present in the

country could help in finding a reliable lawyer. Unlike lawyers in Finland, some

are eager to present their clients as reference. This might also give some idea

of the lawyer's reputation, but one should always remember that business cards

can't be trusted as a reference and as an indication of factual clientship.

Social organization:

(1) Group society/Multicultural:

The majority of Filipinos are Malays, which are also mixed with Chinese,

American, Spanish and Arab descent. Therefore, many of their true ethnic

origins are difficult to distinguish clearly. Long-term Western colonial rule,

coupled with business travel around the world. The visit gave birth to a nation

that blends Eastern and Western characteristics both in appearance and

culture.2021

(2) Language:

There are a wide variety of languages in the Philippines. There are 87 kinds of

dialects in all parts of the country. In the native language, people speaking Cebu

account for 24.5%, which is close to the ratio of Tagalog (Philippines),

accounting for 23.5%. There are six other major native languages: Ilocano,

Hiligaynon, Bicol, Waray, Kapampangan, Pangasinan.

Beginning in 1978, in order to achieve the commonality of the national language,

the government decided to use the Malay language(Tagalo) as the basic

Filipino language. The school regards it as a teaching language and is now

widely used everywhere. In addition, there is a common language that is

English. Filipinos learn English from kindergartens, and Spain’s more than 300

20 http://countrystudies.us/philippines/41.htm 21 https://pia.gov.ph/branches-of-govt

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years of colonial rule and 50 years of hosting in the United States have made

the Philippines is the only country can speak English and Spanish. And these

two kinds of languages are used in books both.

In fact, Filipinos are also very proud. They rank third in the population of

English-speaking countries around the world. Almost everyone in the country

can speak and write in English. The official government document is in English,

and all instruments and mass media are in English. Mainly in recent years, the

awareness of the soil has risen. More and more people like to express in their

own mother tongue. The English level of the younger generation is far less than

that of the older generation, especially in remote areas.

In the past, Spanish was a high society, and people of the rich class used it.

The language was not removed until the 1970s, when the National Education

Act was amended to remove Spanish from the compulsory courses of

secondary schools and universities. Even so, the names of place names, street

names, names of people and even many daily necessities throughout the

Philippines are still using the past traditions Spanish.

Population

The population of the Philippines as of August 1, 2015 was 100,981,437,

based on the 2015 Census of Population. The 2015 population is higher by 8.64

million compared with the population of 92.34 million in 2010, and by 24.47

million compared with the population of 76.51 million in 2000. Refer to Table

the following.22

Table2: Population of the Philippines

Census Year Census Reference Date Population

(in millions)

2000 May 1, 2000 76.51

2010 May 1, 2010 92.34

2015 August 1, 2015 100.98

Of the country’s 18 administrative regions, Region IV-A (CALABARZON) had

the biggest population in 2015 with 14.41 million, followed by the National

Capital Region (NCR) with 12.88 million, and Region III (Central Luzon) with

22 https://psa.gov.ph/content/highlights-philippine-population-2015-census-population

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11.22 million. The combined population of these three regions accounted for

about 38.1 percent of the Philippine population in 2015.

The country has 81 provinces. Of these provinces, Cavite was the most

populous in 2015 with 3.68 million persons, followed by Bulacan (3.29 million),

and Laguna (3.04 million). Twenty-four other provinces surpassed the one

million population mark. Refer to Table the following.23

Table3: Provinces with More Than One Million Population in 2015

Rank Province

Population

(in thousands)

Rank Province

Population

(in thousands)

1 Cavite 3,678 15 Isabela 1,594

2 Bulacan 3,292 16 Bukidnon 1,415

3 Laguna 3,035 17

Cotabato

(North

Cotabato)

1,380

4 Pangasinan 2,957 18 Tarlac 1,366

5 Cebu* 2,939 19 Negros

Oriental 1,355

6 Rizal 2,884 20 Albay 1,315

7 Batangas 2,694 21 Bohol 1,314

8 Negros

Occidental* 2,497 22 Cagayan 1,199

9 Pampanga* 2,198 23 Maguindanao 1,174

10 Nueva Ecija 2,151 24 Lanao del

Sur 1,045

11 Camarines

Sur 1,953 25

Davao del

Norte 1,016

12 Iloilo* 1,936 26 Zamboanga

del Norte 1,011

23 http://www.psa.gov.ph/content/highlights-philippine-population-2015-census-population

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13 Quezon* 1,857 27 Zamboanga

del Sur* 1,011

In terms of the distribution by age and sex, there were more males than females

in age groups 0 to 54 years in 2010, with the males comprising 51.0 percent of

these age groups. In contrast, there were more females than males in the older

age group 55 years old and over. The males in these age groups made up 45.9

percent.24

Graph15: Age-Sex Pyramid of household Population

The age structure of the population of the country from 2010 through 2045

(Refer to Figure 2) 25 presents an opportunity of economic-demographic

advantage. A bulge appears in the working age population, 15-64 years old, for

the entire projection period matched by a projected narrowing proportion of

young dependents under age 15 years, from 34 percent to 21 percent between

2010 and 2045.The above conditions makes the working age population have

more freedom to enter the formal workforce and more household savings for a

secure old age.

24 https://psa.gov.ph/content/age-and-sex-structure-philippine-population-facts-2010-census

25https://psa.gov.ph/content/highlights-2010-census-based-population-projections

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Graph16: distribution of project population of abroad age groups by five-

calendar year interval through 2010-2045

The proportion of people age 65 and older, on the other hand, while projected

to increase continuously, is no match for the burgeoning working age population,

15-64 years of age. As a result of this changing age structure, the country’s

overall dependency ratio is projected to decrease 26 ,which lead to a

demographic dividend.

Graph17: Dependency Ratio 2010-2045

Gross Domestic Product:

The Gross Domestic Product per capita in Philippines was last recorded at

2891.36 US dollars in 2017. The GDP per Capita in Philippines is equivalent to

23 percent of the world's average. GDP per capita in Philippines averaged

26 https://psa.gov.ph/content/highlights-2010-census-based-population-projections

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1627.98 USD from 1960 until 2017, reaching an all-time high of 2891.36 USD

in 2017 and a record low of 1059.30 USD in 1960.27

Graph18: GDP in Philippines

Income per capital & family income:

The survey results showed that the average annual family income of Filipino

families was approximately 267 thousand pesos. In comparison, the average

annual family expenditure for the same year was 215 thousand pesos. Hence,

Filipino families has savings of 52 thousand pesos in a year, on average.All

regions showed increases in the average annual family income at 2015 prices.

Families in the National Capital Region (NCR), had the highest average annual

family income for both years at 425 thousand pesos in 2015 and 379 thousand

pesos in 2012. Meanwhile, families in Davao Region, had the highest increase

of 53 thousand pesos in 2015.28

27 https://tradingeconomics.com/philippines/gdp-per-capita

28https://psa.gov.ph/incomeexpenditure/fies/title/Average%20Family%20Income%20in%202015%20is%20Estimated%20at%2022%20Thousand%20Pesos%20Monthly%20%28Results%20from%20the%202015%20Family%20Income%20and%20Expenditure%20Survey%

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Table4: Average income

Poverty:

Poverty incidence among Filipinos families in the first semester of 2018 was

estimated at 16.1 percent. This is defined as the proportion of families whose

income is below the poverty line to the total number of families. This was

estimated at 22.2 percent in the same period in 2015.29

Table5: Poverty incidence among families (%)

30

29 http://www.psa.gov.ph/poverty-press-releases/nid/138411 30 http://www.psa.gov.ph/poverty-press-releases/nid/138411

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31

Graph19: Poor among the basic sectors in 2015(%)

Types and quality of transportation:

Transportation in the Philippines is relatively underdeveloped, partly due to the

country's mountainous areas and scattered islands, and partly as a result of the

government's persistent underinvestment in the nation's infrastructure. In

recent years, however, the Philippine government has been pushing to improve

the transportation system in the country through various infrastructure

projects.32

Jeepneys are the most popular mode of public transportation in the

Philippines, they have also become a ubiquitous symbol of the Philippine

culture.33 Another popular mode of public transportation in the country is the

motorized tricycle; they are especially common in rural areas.34 Trains are also

31http://www.psa.gov.ph/poverty-press-releases/nid/138411 32https://www.philstar.com/nation/2002/02/16/150795/government-keen-improving-public-transport-system 33https://www.reuters.com/article/us-philippines-jeepney/manilas-jeepney-pioneer-fears-the-end-of-

the-road-idUSMAN1276320071120

34https://web.archive.org/web/20120630184909/http://www.boracay-budgettravel-

tips.com/motorized-tricycles.html

International Marketing The Analysis of coffee HI_2019.04

28

becoming a popular mode of public transportation in the country especially in

the bustling metropolis of Manila. The Philippines has three main railway

networks: the Manila Light Rail Transit System composed of Line 1 and Line 2

and Manila Metro Rail Transit System composed of Line 3 which only serves

Metro Manila and the Philippine National Railways which also serves the

metropolis and some parts of Luzon. There are also steam engines found in

Visayas which operate sugar mills such as Central Azucarera. Taxis and buses

are also important modes of public transport in urban areas.The Philippines has

12 international airports, and has more than 20 major and minor domestic

airports serving the country.35 The Ninoy Aquino International Airport is the

main international gateway to the Philippines.

Graph20: Transportation in Philippines

Economic Analysis

Communication and internet:

The Philippine Long-Distance Telephone Company (PLDT) and Globe Telecom

are the two major telecommunication carriers in the country. PLDT has three

35 http://worldaerodata.com/countries/Philippines.php

International Marketing The Analysis of coffee HI_2019.04

29

mobile brands, Smart Communications, Sun Cellular, and TalkNText (TNT). The

current Philippine cellular infrastructure is Global System for Mobile

Communications (GSM). 3G service was launched in 2006 while 4G was made

available in 2010. SMART and Globe launched long-term evolution (LTE)

networks in 2012. PLDT has an existing digital fiber optic, and a digital

microwave radio system connecting the entire country. Globe Telecom has fiber

optic cables and was the first to offer Worldwide Interoperability for Microwave

Access (WiMAX).36

Philippines tops world internet usage index with an average 10 hours a day,

and the number of people using internet is steadily rising. 37 However, the

quality of internet is not good. The speed of the internet in Philippines is slow

due to there are many islands, so it is more stable in city like Manila.38

39 40

Graph21: Average Download Speeds in Asia

36 https://www.export.gov/article?id=Philippines-Information-and-Communications-Technology 37 https://www.theguardian.com/technology/2019/feb/01/world-internet-usage-index-philippines-10-hours-a-day 38 http://cnnphilippines.com/news/2017/11/03/philippines-lowest-rank-internet-speed-availability.html 39https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjC5JfnodThAhULCqYKHTFsDsgQjhx6BAgBEAM&url=https%3A%2F%2Ftechnology.inquirer.net%2F37815%2Fph-slowest-internet-speed-in-asean&psig=AOvVaw10cjUjmp6bqDY_aEVi0cTD&ust=1555492103934297 40 https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjC-vjrpNThAhWGHaYKHe3_BAIQjhx6BAgBEAM&url=https%3A%2F%2Fnews.abs-cbn.com%2Fbusiness%2F12%2F04%2F18%2F41-percent-of-filipinos-are-internet-users-sws-survey&psig=AOvVaw0Ymav4C5gKbb0a2k96plH9&ust=1555492922648564

International Marketing The Analysis of coffee HI_2019.04

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Graph22: Internet users of Philippines 41

Graph23: Numbers of online shoppers in the Philippines

Currency:

The Philippine peso (currency code: PHP) is the official currency of the

Philippines.42 U.S. dollars are sometimes accepted as an alternative form of

41 https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwihhfKLpdThAhU2yosBHTw7DeMQjhx6BAgBEAM&url=https%3A%2F%2Fwww.eshopworld.com%2Fblog%2Fphilippines-ecommerce-insights-2018%2F&psig=AOvVaw0Ymav4C5gKbb0a2k96plH9&ust=1555492922648564 42https://en.wikipedia.org/wiki/Philippine_peso

International Marketing The Analysis of coffee HI_2019.04

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payment and work well as emergency cash.43

Current exchange rate: 1USD=51.69PHP 1TWD=1.67PHP44

Graph24: Peso

Dominant economic activity:

Services has been one of the strongest and fast-growing sectors of the

Philippine economy. Since the 1990s, the services sector has been a major

source of economic growth for the Philippines. On the average, the sector has

grown continuously, particularly in the last two decades.45

Though there are still many Filipinos engaged in agriculture, its contribution to

GDP has been declining over the years. We conclude two major reasons. The

first one is climate disasters. There are many typhoons striking Philippines

every year, causing serious damage and lose to crops, and the farmers struggle

to rebuild lives after the destroy.46 Second, structural transformation as industry

and services grew relatively faster resulting in the declining of contribution of

agriculture to the total GDP.

Philippines government put less attention to manufacturing industry, so they

almost rely on imports. Nevertheless, there are lots of Chinese investors

moving to Philippines currently and Philippines also has abundant natural

resources, so the manufacturing industry has becoming more and more

popular.47

43https://www.tripsavvy.com/money-in-the-philippines-1458584

44https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=PHP

45http://industry.gov.ph/category/services/ 46https://www.reuters.com/article/us-philippines-storm-typhoon/philippine-farmers-struggle-to-rebuild-lives-after-typhoon-decimates-crops-idUSKCN1M411W 47https://www.taitraesource.com/total01.asp

International Marketing The Analysis of coffee HI_2019.04

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→GDP growth: Services>Manufacturing industry>agricultures

→People engaged in: Services>agricultures>Manufacturing industry

48

Graph25: GDP in 2017

Trade restriction

The Philippines is a member to the World Organization(WTO) and has

abrogated the quantitative restrictions on imports of food products except for

rice. But the Tariff-Rate Quotas still remain on some sensitive products so as

coffee. And these products have been established its’ Minimum Access

Volumes. Because coffee is sold at the lower in-quota duty, the seller need to

give a minimum access volume certificate. As we know, Philippine is a coffee

production country. But the supply can’t load

their domestic needs, so they import coffee from other country. To protect their

local farmer, the government increase tariff up to 45%49.

Distribution channels

1. Types of Outlets and its size

The following form is sorted by the proportion of the place Filipinos buy coffee.

We divided it into three sections.

The largest is supermarket. It accounts for up to 60% of Philippine’s coffee

market. And the top two is the convenience store. It is about 25%. There still

48https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi1__2Xp9ThAhXIG6YKHRRZD6wQjhx6BAgBEAM&url=http%3A%2F%2Femerging-markets-research.hktdc.com%2Fbusiness-news%2Farticle%2FAsia%2FThe-Philippines-Market-Profile%2Fmp%2Fen%2F1%2F1X000000%2F1X0604RX.htm&psig=AOvVaw3LDgK--bTEN7lrSYgpIU6S&ust=1555493545366743 49 http://db2.wtocenter.org.tw/tariff/search_byProducts.aspx

International Marketing The Analysis of coffee HI_2019.04

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the other retailers we can sell coffee in Philippines. For example, department

stores or even in traditional market.

Table6: Types of Outlets

Supermarkets

There are many different kinds of

commodity we can find in

supermarket. Robinsons

Supermarket, Hypermarket,

Landmark.

Convenience store

In recent years, people is in pursuit of

convenience when they buy

something need. So convenience

store also an important channel to sell

coffee. Budget Mart, All Day.

Department store

And there are the other places we can

buy coffee in Philippines. For instance,

department store or in traditional

market, etcetera.

METRO, Rustans

Traditional groceries

It is run by private. Just like the grocery

stores in Taiwan. It may locate at

traditional market or shopping street.

International Marketing The Analysis of coffee HI_2019.04

34

2. Relevance of middlemen.

Graph26: The supply chain of coffee50

When we sell coffee to another country, we will be going to communicate with

the middlemen. And as the architecture diagram shows there are six middlemen

until your consumer get your product. The first step we should do is organize a

coffee

organization. There is intermediary that provide the farmers services and

assistance in getting their coffee to market. And the following are exporters,

which are organizations at origin that process and commercialize coffee from

farm gate level to meet the needs of international buyers. Now it goes to the

importer. They are global merchants who bring goods and commodities from

the origin country to the place of sale. The roasting process tends to take place

closed to where the coffee will be consumed. It will produce the time and freight

50 http://www.coffeeassoc.com/supply-chain/cac-flowchart-supply-chain/

International Marketing The Analysis of coffee HI_2019.04

35

cost in distribution. And when all this steps are done. The coffee can pass the

customs and be send to the customers.

Media

As the following graph shows, the time Filipinos spent on social media took the

first place in 2018. And according to the statistics, the Philippines has on the

first place for three years in a row.51

Graph27: Time spent on social media in 201852

51 https://wearesocial.com/blog/2018/01/global-digital-report-2018 52 https://wearesocial.com/blog/2018/01/global-digital-report-2018

International Marketing The Analysis of coffee HI_2019.04

36

Graph28: Time spent on social media in 201753

And compare to the statistic in 201754, the users of Internet in Philippines grows

12%. So what does the data tell us? Philippine is a young and active consumer

market. Shopping in a modern retail store is a sign of city modern life. To

promote our brand through social media is an effective way to colonize market

in Philippine.

Graph29: Annual growth of social media55

53 https://wearesocial.com/special-reports/digital-in-2017-global-overview 54 https://wearesocial.com/special-reports/digital-in-2017-global-overview 55 https://wearesocial.com/special-reports/digital-in-2017-global-overview

International Marketing The Analysis of coffee HI_2019.04

37

(1) TV advertisements

(2) Internet (you tubers or some creative videos)

(3) Other social media

-Blogs and Microblogs: PIXNET, TWITTER, WEIBO

-Content Community: YouTube, Instagram, Flickr

-Social Network Sites: Facebook, Line, WeChat

Owing to the fast improved of internet, people using more and more time

on it. When you go home, you sometimes don’t choose to watch TV. Instead,

you might just surf on your smart phone or watch the video by your computer.

So I think internet is the best way to let our potential customer know our product.

We can corporate with famous youtubers in Philippines or using Line, Facebook,

Twitter to expand our product reputation.

Cindy’s day in Philippines

Cindy is a 20 years old student living in Manila.

Week day

8:00 get up

8:30 eat breakfast (what)

9:00 go to school (how)

9:15 in the traffic jam

10:00 finally arrive in class

12:00 eat lunch (what)

13:00 another class

16:00 finish class and exercise with friends

18:00 eat dinner (what)

19:00 do homework

20:00 sleepy and go to convenient store buy coffee

21:00 take shower

22:00 eat midnight snack

23:00 being a phubber (social media)

24:00 ready go to bed but still be online

2:00 finally sleep

International Marketing The Analysis of coffee HI_2019.04

38

Weekend

09:00 get up

09:30 phubbing

10:00 go to church

11:30 eat brunch and have a cup of coffee

12:30 go to spa

13:00 stuck in heavy traffic

13:30 arrive

14:30 getting beautiful and going to supermarket

15:00 buy coffee at supermarket but waiting in line for half of hour

15:30 leave for the beach but suddenly rain

16:00 eat afternoon tea (what) and phubbing

16:30 still phubbing

17:30 eat dinner with friends (what)

18:00 watch movie with friends

20:12 the movie end and phubbing

21:00 go to pub and line up for a long time

1:00 go home and take a shower

2:00 ready to go to bed but find out that the report for class isn’t

completed

2:30 stay up late for the report and have a cup of coffee

3:30 finally can sleep

Conclusion

We divided the conclusion into three parts, policy & economic, society & culture

and technology.

First, it’s the policy and economic. Philippines has opening foreign trade policy,

so in the economic, we can see the GDP growing in 2001-2017. The rate of

inflation, the unemployment rate and the public debt declined in this picture.

And the next picture shows the poverty in Philippines decreasing.

International Marketing The Analysis of coffee HI_2019.04

39

56

Graph30: GDP growth

57

Graph31: Poverty line

According to these statistics, we can understand the growth rate of the

economic in Philippines has an upward trend.

The data shows the top 10 suppliers where Philippines imports coffee and we

can see the rate of imported coffee growing roughly. The listed 10 suppliers

provided 99.6% of the Philippines’ imported coffee during 2018.

56https://www.imf.org/en/News/Articles/2018/09/27/na092718-the-philippines-economic-outlook-

in-six-charts

57https://www.imf.org/en/News/Articles/2018/09/27/na092718-the-philippines-economic-outlook-

in-six-charts

International Marketing The Analysis of coffee HI_2019.04

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58

Graph32: Coffee imported in Philippines

Second, it’s the society and culture. Philippines is a melting pot of culture. So, people maintain open-minded attitude to foreign suppliers. The picture

below shows the total population rate increasing. Hence, we surmise the level

of consumption growing.

59

Graph33: Inflations

58http://www.philippinesaroundtheworld.com/top-10-sources-for-imported-coffee-in-the-

philippines/

59 https://www.statista.com/statistics/578726/total-population-of-philippines/

International Marketing The Analysis of coffee HI_2019.04

41

Philippines is an English-speaking country. So, we don’t have language barrier

in communication. Cause Philippines has convenience location and

transportation. We have a strength on importing.

Last part is about technology. Because the agricultural technology isn’t mature

enough , Filipino coffee is defective and has low traceability. Imported coffee is

usually cheaper, more reliable, and tastier than local coffee.

With the development of technology, high percentage of people use social

media frequently. Therefore, we can promote our product easily through

internet and social media.

Preference:

Location

https://www.gov.ph/about-the-philippines

https://en.wikipedia.org/wiki/Philippines

Climate

http://www.tourism.gov.ph/culture_arts_climate.aspx

http://hikersbay.com/climate/philippines?lang=en

Capital

https://www.worldatlas.com/articles/what-is-the-capital-city-of-the-philippines.html

Religion

https://www.britannica.com/place/Philippines/Plant-and-animal-life#ref23732

Arts

https://www.globalizationpartners.com/2015/02/20/the-philippines-culture-and-

tradition/

Diet and nutrition

https://en.wikipedia.org/wiki/Filipino_cuisine

Meat and vegetable consumption rates

https://www.statista.com/statistics/756518/philippines-meat-consumption-per-

capita-by-type/

Typical meals

https://edition.cnn.com/travel/article/50-delicious-philippines-dishes/index.html

Housing

https://en.wikipedia.org/wiki/Architecture_of_the_Philippines

Clothing

http://www.tourism.gov.ph/general_information.aspx

http://primer.com.ph/tips-guides/2017/05/13/expats-guide-to-the-philippines-

national-costume/

International Marketing The Analysis of coffee HI_2019.04

42

https://tanailee.wordpress.com/traditional-philippines-clothing/

Currency

https://www.tripsavvy.com/money-in-the-philippines-1458584

https://en.wikipedia.org/wiki/Philippine_peso

https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=P

HP

Dominant economic activity

https://www.taitraesource.com/page04.asp?AreaID=00&CountryID=PH

http://industry.gov.ph/category/services/

https://www.reuters.com/article/us-philippines-storm-typhoon/philippine-

farmers-struggle-to-rebuild-lives-after-typhoon-decimates-crops-

idUSKCN1M411W

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved

=2ahUKEwi1__2Xp9ThAhXIG6YKHRRZD6wQjhx6BAgBEAM&url=http%3A%

2F%2Femerging-markets-research.hktdc.com%2Fbusiness-

news%2Farticle%2FAsia%2FThe-Philippines-Market-

Profile%2Fmp%2Fen%2F1%2F1X000000%2F1X0604RX.htm&psig=AOvVaw

3LDgK--bTEN7lrSYgpIU6S&ust=1555493545366743Communication and

internet

https://www.theguardian.com/technology/2019/feb/01/world-internet-usage-

index-philippines-10-hours-a-day

https://www.philstar.com/headlines/2018/02/03/1784052/philippines-still-

worlds-social-media-capital-study

http://cnnphilippines.com/news/2017/11/03/philippines-lowest-rank-internet-

speed-availability.html

https://www.export.gov/article?id=Philippines-Information-and-

Communications-Technology

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved

=2ahUKEwjC5JfnodThAhULCqYKHTFsDsgQjhx6BAgBEAM&url=https%3A%

2F%2Ftechnology.inquirer.net%2F37815%2Fph-slowest-internet-speed-in-

asean&psig=AOvVaw10cjUjmp6bqDY_aEVi0cTD&ust=1555492103934297

International Marketing The Analysis of coffee HI_2019.04

43

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved

=2ahUKEwjCvjrpNThAhWGHaYKHe3_BAIQjhx6BAgBEAM&url=https%3A%2

F%2Fnews.abs-cbn.com%2Fbusiness%2F12%2F04%2F18%2F41-percent-

of-filipinos-are-

internetusersswssurvey&psig=AOvVaw0Ymav4C5gKbb0a2k96plH9&ust=155

5492922648564

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved

=2ahUKEwihhfKLpdThAhU2yosBHTw7DeMQjhx6BAgBEAM&url=https%3A%

2F%2Fwww.eshopworld.com%2Fblog%2Fphilippines-ecommerce-insights-

2018%2F&psig=AOvVaw0Ymav4C5gKbb0a2k96plH9&ust=15554929226485

64

NCUE, - FEEDBACK, CLASS PRESENTATIONS

Page 1 of 2 D:\Teaching\NCUE\International Marketing\Admin\2019\MT\reports\Hi presentation.docx

THE GROUP YOU ARE ASSESSING: Save your file. Use this format: group being assessed your group.doc So an example would be TIV Voltes5.doc – where TIV is the group being assessed and Voltes5 is your group.

HI!

YOUR GROUP NAME:

INSTRUCTOR

A B C D Are ideas presented connected with the aim of the presentation?

Are the ideas presented clearly supported with evidence and logical argument?

Is it easy to follow & to understand? (Are the slides clear and easy to follow e.g. use of new pictures, words, graphs)

Overall impression (is it a group presentation etc.?)

40% 30% 20% 10%

5% 5% 5% 5%

Comments (space will expand as you type) Don't forget to introduce the group Give the purpose of the presentation ("the aim of the presentation is…") Outline - good - use "Agenda" here "Next I'll make a cultural analysis … " - Good Just like the graph (not picture) Accordingt to… - good islam = muslim Let's talk about… good I'm going to introduce the economic analyiss Good eye contact - well done Population - what is on the 'y' axis Use as an advantage to market… - yes - good direction Good use of note s- well done - local = domestic market We will divide it into the three parts = there are three main distribution channels I like the way that you use animation to highlight parts of the graph - good.

NCUE, - FEEDBACK, CLASS PRESENTATIONS

Page 2 of 2 D:\Teaching\NCUE\International Marketing\Admin\2019\MT\reports\Hi presentation.docx

"So what does the data tell us…" - good phrase :D

First I'd like to …. - good

Don't forget a conclusion should wrap up / summarize the main points from the presentation. So there should not be new information in the conclusion.

Last… - good signal

"tastier than local coffee" - "tastier" - does not mean much

Report: You have some good parts in this report. I like the section on Cindy - which starts to show coffee is part of her life - and so gives you ideas about how to market the product. You have picked up on key aspects of the Phillipines, too (e.g,. economy is growing, poor infrastructure and Christian environment). The conclusion is structured and thoughtful - good.

Think about: - missing objectives - why is this report being written? - You are on the right direction with labelling figures and graphs. Label both and insert reference in the writing. - Focus more of the data on the product - Avoid weird gaps in the format

Grade (%) 88%