The Case Study

University of Luzon College of Business Administration Dagupan City __________________________________________________________________________

The Case StudyOf

Analyn’s FurnitureIn

Malindong Binmaley, Pangasinan

Submitted by:

Maricel C. Fernandez

BSBA/ 9:00 – 10:00am

Submitted to:

Prof. Rosalie Rosales

of 17


IntroductionWhen it comes to marketing these days, those who operate furniture stores have their work cut out for them. Super stores such as Walmart and Target have cut into the business of furniture stores and made it possible for people to furnish a house at the same place they pick up a quart of milk. In addition, specialty stores such as Staples have successfully targeted the office furniture market, thereby cutting off another once-steady revenue source for furniture store owners. And discount outlets such as Big Lots and Ocean State Job Lot offer good furniture at a reduced price, a difficult combination to overcome in trying economic times.

In addition, it's tougher than ever these days for furniture stores to spread the word about what they offer—whether they are a large chain such as Bob's Discount Furniture or the well-known Raymour & Flanigan or a Mom and Pop operation in a small town, furniture stores don't have the advertising budget of the big box super stores and are finding it increasingly difficult to rely on newspapers to spread the message.

Fortunately, there is a solution as effective as it is inexpensive: email marketing for furniture stores. Such a medium may have been unimaginable a generation ago, but for furniture stores, email marketing is the present as well as the future.

GlobalNorth Carolina has a long tradition in the furniture industry, but over the past twenty years furniture production has been challenged by the increasingly global nature of manufacturing. North Carolina furniture manufacturers have to rethink their strategies to remain competitive by improving technologies, diversifying markets, and offshoring production. Furniture imports to North Carolina are growing, especially from China and other developing and emerging markets, leading to plant consolidations and shutdowns and raising questions in terms for policy, education, and industry strategy.

Furniture manufacturing has been a major player in North Carolina’s economy since the seventeenth century, when English artisans began to

of 17


settle across North Carolina and produce furniture on a small scale. Early industrial entrepreneurs and developers focused on the Piedmont region of North Carolina, especially the city of High Point, because of its abundant wood supply, access to transportation, and cheap labor availability (1). High Point hosted its first regional furniture trade fair in 1909, eventually leading to the creation of the High Point Market, an internationally renowned furniture trade fair that still operates today. By the 1980s, High Point had earned the nickname "The Furniture Capital of the World.”

In the late 1990s, the NC furniture industry began to feel the effects of increased foreign competition, causing many companies to go out of business, consolidate, close factories, lay off employees, and import from abroad. Yet, North Carolina still maintains a strong presence in the furniture industry and continues to take measures to remain competitive.

Establishments, Workers & WagesFurniture manufacturing is concentrated in the north-central Piedmont Triad region of North Carolina, especially Catawba, Caldwell, Guilford, Randolph, Alexander, and Davidson counties. Major furniture manufacturing cities include Hickory, High Point, Thomasville, Greensboro, Asheboro, and Winston-Salem, among others.

North Carolina is the largest employer in furniture manufacturing, representing 9.5% of U.S. employment (T3c). It ranks fifth in the U.S. in terms of the overall number of furniture manufacturing establishments, with 5% of U.S. establishments in the furniture manufacturing industries (T2c). North Carolina is the leading state in the household furniture manufacturing segment with 12% of U.S. employment and nearly 5% of establishments in the segment (T3c; T2c). It ranks fifth in office furniture manufacturing, with 5.2% of U.S. employment and 5.6% of establishments. North Carolina ranks fourth in furniture-related products manufacturing (mattresses & blinds), with 6% of U.S. employment and 4.4% of establishments.

of 17


Employment in North Carolina’s furniture industry has declined steadily since 1992, with total employment declining 56% since 1992 (T3a; C3a). Employment declined in the household and office furniture manufacturing segments and increased in furniture related products manufacturing and furniture merchant wholesalers. Employment in the household furniture segment has contracted by 61% over the last two decades from 64,528 workers in 1992 to 25,235 in 2012 (T3a; C3a). The pace of decline in household furniture manufacturing employment continues. Employment in the household furniture segment decreased 15% during the 1992-2002 period and 54% during the 2002-2012 period. We expect the pace of declines to slow as the household furniture industry recovers from the 2008 recession and reconsiders its production location decisions.

Production & TradeNorth Carolina’s exports grew steadily from 2002 to 2008, increasing from $153 to $300 million. However, during the economic crisis, exports dropped by 38% between 2008 and 2009. Exports from North Carolina have yet to reach their 2008 peak.

In terms of destination markets, Canada accounts for 40% of North Carolina’s total exports in furniture, followed by countries in the Middle East (Saudi Arabia and UAE), China, and Mexico. The overwhelming majority of furniture exports from North Carolina are in the household furniture segment. Major export growth markets for North Carolina over the past ten years have been Canada, China, and the UAE. North Carolina decreased exports most notably to South Korea and E.U. countries (UK, Belgium, Netherlands, and Italy).

In the Global market for furniture, the Philippines is touted to be the Milan of Asia. The unparalleled design and craftsmanship of locally-manufactured furniture pieces have earned for Philippine furniture a prime spot in the world market.

The Philippine furniture industry continues to be one of the country’s highest

of 17


export sales earners. Based on the latest statistical figures, the industry posted a 4.7% growth in export sales for the 3rd quarter of 2007 the same period in 2006.

This can be accredited to the continued international recognition for excellence in product design and craftsmanship as well as creativity and innovation in the application of materials.

From humble beginnings, the industry has grown to be the vibrant contributor to the economy that it is. http://www.cfip.ph/

We have compiled a list of the top exports for small-medium scale businesses in the Philippines. If your business is in any way related to the products listed here then the opportunity to grow your business is very promising. The next step is advertising your product to a global audience through our trade community for exporting prospects.

Woodcrafts and Furniture

The Philippine’s woodcraft and furniture products are probably the most unique exports we have. Because of the formal and informal training of our furniture workers, we have a different styles and designs coming from all corners of the country. This industry has shown a steady growth of 11% per year for the past decade making it a truly surging export of the Philippines. (Examples are woodcarvings, rattan and bamboo furniture)

of 17

http://www.cfip.ph/


It continues to make an impact in this highly competitive market by selling premium quality furniture to the world's middle to high-end furniture markets.

The reality of an increasingly global market is not lost on the industry. Not only is competition from our neighboring countries getting stiff, the industry is also experiencing problems with the flow of its raw materials, as well as a drain in its competency skill base. Despite these, however, prospects for our industry remain good.

Hand-in-hand with the growing niche market is our manufacturers' strong

of 17


orientation towards the customer. As such, customization and "after-sales services" could easily be developed to form part of a "product package." There is also an abundance of marketing platforms through which the industry and its products may be presented here and overseas. In this manner, our manufacturers would not only be able to keep old buyers but, more importantly, attract new ones - - a crucial ingredient to the survival of our industry.

Furniture business are said to be the well known business in Binmaley Pangasinan, that’s why the place became popular to other people specially tourists who visit the country. Most of the business minded people living there seek to find an income by establishing and selling furniture.

Analyn’s Furnitures was owned by an entrepreneur Teresita Cabot and it is operating in almost 10 years. It was situated in Mckinley St. Binmaley or known as Malindong Binmaley, Pangasinan. It has been established through their knowledge and skills in handing the furniture business. The business was named to her daughter Analyn Cabot Pedro who has been married now. Teresita Cabot was the real owner of the furniture business and she’s the one managing on it.

The business has an employee which includes the salespersons, drivers, carpenters who do the varnishing, and others are assembling. For them, competitions with other business are not problem but instead an opportunity. As a furniture owner, we maintain good service with our customers for we want to satisfy their needs.

SITUATION ANALYSIS

Furniture business are facing increased operating challenges including a changing consumer, a poor economy, complex employee issues, new types of competitors, and eroding revenue with increasing costs.

of 17


Product strategyThe product being offered by Analyn’s furniture is anything which is intangible or tangible. Tangible products are those which are physical items while intangible products are known as service which accompanies the tangible products.

The tangible product being offered by Analyn’s furniture are the tables, chairs, cabinets, dresser and others with different designs to choose from while the intangible products are the good service by Analyn’s furniture towards to their costumer.

Analyn’s furniture gives discounts depending on the price and quality of a particular product. They deliver the product unto what the customer’s request. They give also freebies with a minimum of 20,000 purchase requirement of furniture.

As an interviewer, they told us that Analyn’s furniture was already featured on television and they are known as best quality in terms to their product.

Promotional strategy

of 17

Strengths

- Highly experienced owner-operator

- Well known furniture business

Weaknesses

- Competitors can offer similar products quickly

- Limited flexibility in pricing- Lack of online promotion

Opportunities

- Ability to develop additional services through the use of online marketing.

Threats

- Rentals including taxes are increasing

- Increases on prices inputs can cause upward pricing


They advertise their product through word-of-mouth from satisfied clients, the quality of their furniture and good service is still of the best channels of service promotion for Analyn’s furniture business.

Products of Analyn’s Furnitures

of 17


of 17


Furniture is the mass noun for the movable objects intended to support various human activities such as seating (e.g., chairs, stools and sofas) and sleeping (e.g., beds). Furniture is also used to hold objects at a convenient height for work (as horizontal surfaces above the ground, such as tables and desks), or to store things (e.g., cupboards and shelves). Furniture can be a product of design and is considered a form of decorative art. In addition to furniture's functional role, it can serve a symbolic or religious purpose. It can be made from many materials, including metal, plastic, and

of 17


wood. Furniture can be made using a variety of woodworking joints which often reflect the local culture.

Realistic solutionThe email marketing software required for such programs is inexpensive and easy to both implement and customize. You'll want to include the company logo as well as contact information, so that people know they are getting a "real" email and not a piece of spam, and offer links to your website as well as a search function for the site. The more interactive the email marketing campaign is for the consumer, the more likely it is to be successful for the furniture store.

Interview Guide

Respondent Basic Information

Name: ____________________________

Age : _________

Sex : _________

Highest Educational Attainment :

Number of Years Managing:

Location of Establishment :

When established: Month: ________ Year:________

1. Length of time has been operating?

_______________________________________________ of 17

http://www.streamsend.com/email_marketing_software.html


2. What type of business organization do you have?

_________Sole proprietorship

_________ Partnership

_________ Corporation

3. Person managing the furniture?

_________ Owner itself

_________ Manager

_________ Others specify

4. Sources of Funding?

_________ Savings

_________ Borrowed from friends/relatives

_________ Banks

Others specify: ________________________________________

5. Initial Capital

_________ P30, 000 – P 50,000

_________ P60, 000 – P 100,000

_________ P150, 000 – P200, 000

_________ P300, 000 above

of 17


6. What is the average number of furniture you make per month?

_________ 5 below

_________ 5-10

_________ 10-15

_________ 15 above

7. What are kinds of furniture do you offer?

KINDS COST

_______________________ ______________________

_______________________ ______________________

_______________________ ______________________

_______________________ ______________________

_______________________ ______________________

_______________________ ______________________

How do you acquire furniture?

Or to have as a new or added characteristic/designs

____________________________________________________________

a. How you often do you make furnitures?

_________ Weekly

_________ Monthly

_________ Quarterly

of 17


Others specify ____________________________

b. Number of furniture ordered per _____________

_________ 10 Below

_________ 10-20

_________ 20 Above

c. Who are your suppliers? (Location)

_______________________________________________________

_______________________________________________________

_______________________________________________________

d. How many furniture do you maintain in your establishments?

______________________________________________________

8. How many employees do you have?

______________________________________________________

a. Is there any other vehicle used for your business operation?

Specify: ________________________________________

9. How many _____________ do you employ?

PERSONNEL

Manager _____________

of 17


Cashier _____________

Accountant _____________

Bookkeeper _____________

Driver _____________

Carpenter _____________

Others Specify: _______________________________________________________

10. How do you collect payments from your customers?

_____________ Cash Basis

_____________ Installment Basis

Other specify ________________________________________________________

11. What promotional strategies do you use?

_____________ Newspaper

_____________ Radio

_____________ Billboards

_____________Words of mouth

_____________Online marketing

Others specify _______________________________________________________

12. What are the major problems encountered by your establishment/ employees?

_____________ Higher discounts rates desired by customers

_____________ Acquisition of furniture

of 17


_____________ Higher cost of the items

_____________Competition

Others specify: __________________________________________________________

of 17

The Case Study

Documents

Transcript of The Case Study