Developing a
Retail Store
Plan: Santa Ana,
Cagayan
EnP Ederlina A. Tagum
Instructor
Purpose of a Retail Business Plan:
Essential roadmap: Outlines objectives, strategies,
operations, and financials.
o
Critical step: Enables strategy formulation, market
evaluation, and feasibility assessment before
investment.
o
Guides growth & attracts funding/partners.
o
INTRODUCTION:
Why Plan? The
Foundation for
Success
Key Components Overview:
o
o
Executive Summary, Store Concept, Location, Layout,
Product, Pricing, Customer Service, Marketing,
Staffing, Financials, Organization.
Crucial: All components must align and support each
other.
•
EXECUTIVE SUMMARY:
•
The Big Picture:
Our Vision for
Santa Ana
•
Compelling Overview:
o
A concise "elevator pitch" summarizing the entire plan.
o
Often the most critical section for investors/partners.
Key Highlights for Santa Ana:
o
Store Concept & USP:.
o
Target Market: Focus on Santa Ana's young demographic
(Median Age ~23 ), tourism potential ("Game Fishing Center,"
Viray Festival ), and potential industrial growth (Textile Park ).
o
Problem/Opportunity: Address specific market need/gap in
Santa Ana.
o
Competitive Edge:
o
Financial Snapshot: Key projections, funding needs.
o
Management Team: Highlight relevant experience.
Focus: Plan tailored to Santa Ana's specific context.
•
Business Idea:
o
o
STORE CONCEPT:
Defining Our
Identity
•
What is the business? (e.g.,
Specialty fishing gear store, Ecofriendly goods retailer).
What market need does it fill in
Santa Ana? (e.g., Lack of quality
gear for tourists, demand for
sustainable products).
Unique Selling Proposition (USP):
o
o
Why choose us? (e.g., Exclusive
local products, superior customer
experience, best prices).
Based on: Price, Specialization,
Unique Products, Added Value,
Experience, Convenience.
•
Relevant Retail Concepts for Santa Ana:
o
Specialty (Fishing/Beach Gear,
Local Crafts).
o
Experience-Based / Tech-Integrated
(Appeals to youth).
o
Convenience / Small Supermarket /
Discount (Local needs, 2nd Class
Income ).
o
Pop-Up (Leverage festivals like
Viray ).
o
Sustainable/Eco-Friendly.
Mission: Our fundamental purpose.
Vision: Our long-term aspiration.
Values: Our guiding principles.
•
LOCATION
ANALYSIS (SANTA
ANA FOCUS)
Finding the Right
Spot in Santa Ana
•
Importance: "Location,
location, location" – critical for
visibility, accessibility,
profitability.
o
o
Site Selection Criteria:
o
o
o
Accessibility (Roads, Public
Transport, Parking – aim 58 spaces/1k sq ft ).
Visibility (Signage
potential, Foot/Vehicle
Traffic ).
Demographics & Target
Audience Fit (Align with
Santa Ana profile ).
o
o
o
Traffic Patterns (Analyze
type and volume – locals
vs. tourists ).
Competition &
Complementary
Businesses (Analyze local
mix ).
Costs (Rent, Utilities, Taxes,
Maintenance, Fit-out ).
Zoning & Regulations
(Ensure retail use
permitted ).
Size, Layout Potential,
Scalability.
LOCATION
ANALYSIS (SANTA
ANA FOCUS)
Finding the Right
Spot in Santa Ana
Metric
Data
Year
Notes
Population
35,688
2020
Population Density
81 / km²
2020
Relatively low density
Household Count
8,203
2020
Avg ~4.3
members/household
Median Age
23.34
2015
Young population base
Age Group 15-64
~62.3% - 62.7%
2015/20
Large working-age
population
Municipal Income
Class
2nd Class
Current
Moderate average
income
Key Economic
Activities
Fishing, Tourism
Current
Coastal economy,
"Game Fishing Center"
Potential Future
Industry
Textiles
Future
Planned Green Textile
Industry Park
Population Growth
Rate
1.72% p.a.
2015-20
Positive but moderate
growth
•
STORE LAYOUT &
DESIGN
Principles of Effective Layout:
o
Branding: Reflect brand identity
(colors, logos, materials).
o
Functionality: Easy navigation, logical
flow, clear signage, wide aisles (min.
4ft), accessibility. Avoid dead ends.
o
Creating the
Shopping
Environment
Visual Merchandising: Strategic,
attractive product displays.
o
Lighting: Sets mood, highlights
products (ambient, task, accent).
o
Color & Materials: Align with brand,
create atmosphere.
o
Customer Flow: Guide movement
(often right turn, counterclockwise).
o
•
Flexibility: Adaptable for seasons,
promotions.
•
Common Layout Types:
o
Grid: Space efficient, familiar
(Supermarkets). Pros: Max space.
Cons: Monotonous.
o
Loop/Racetrack: Guided path, high
exposure (IKEA). Pros: High exposure.
Cons: Restrictive.
o
Free-Flow: Organic, encourages
browsing (Boutiques). Pros:
Experiential. Cons: Less space
efficient.
o
Straight/Spine: Main aisle, clear
sightlines.
Technology Integration for Santa Ana:
Focus on cost-effective enhancements: Free
Wi-Fi , QR codes for info, social media
integration.
STORE LAYOUT &
DESIGN
Creating the
Shopping
Environment
STORE LAYOUT &
DESIGN
Creating the
Shopping
Environment
1. Grid Layout
Description: Products are arranged in
long, parallel aisles that run
perpendicular to the walls, creating a
grid-like structure.
Pros:
•
Maximizes product display space.
•
Familiar and easy for customers to
navigate.
•
Efficient for inventory management
Cons:
•
Can feel monotonous and
impersonal.
•
Limited opportunity for creative
displays.​
Example: Commonly used in
supermarkets and pharmacies.​
STORE LAYOUT &
DESIGN
Creating the
Shopping
Environment
2. Loop (Racetrack) Layout
Description: A circular or looped
pathway guides customers through the
store, exposing them to a variety of
products along the way.​
Pros:
•
Encourages customers to view
multiple product categories.
•
Increases exposure to merchandise.
•
Creates a controlled traffic flow.​
Cons:
•
May feel restrictive to some
shoppers.
•
Less flexibility in navigation.​
Example: Often seen in department
stores and large retail chains.
STORE LAYOUT &
DESIGN
Creating the
Shopping
Environment
3. Free-Flow Layout
Description: Fixtures and displays are
arranged asymmetrically, allowing
customers to browse freely without a
defined path.
Pros:
• Encourages exploration and impulse
purchases.
• Provides a relaxed and open shopping
experience.
• Ideal for showcasing unique or highend products.
Cons:
• Less efficient use of space.
• Can be confusing without clear
signage.
Example: Common in boutiques and
specialty stores.
STORE LAYOUT &
DESIGN
Creating the
Shopping
Environment
4. Straight (Spine) Layout
Description: Features a single main aisle
that runs from the front to the back of
the store, with merchandise displayed
on either side.
Pros:
• Simple and cost-effective to
implement.
• Provides clear sightlines for customers.
• Easy to navigate.
Cons:
• May encourage quick movement,
leading to missed products.
• Less engaging than other layouts.
Example: Suitable for small retail spaces
and convenience stores.
•
Product Assortment Strategy:
o
PRODUCT
SELECTION &
MERCHANDISING
o
What We Sell and
How We Show It
•
Forecasting , Stock Level
Optimization, Reordering, Opento-Buy (OTB ), Audits.
Align with Store Concept & Santa
Ana Target Market
(locals/tourists).
Balance Variety (breadth) & Depth
(selection within category).
o
•
Goal: Ensure availability, minimize
tied-up capital, use data.
Visual Merchandising:
o
Data-Driven: Use sales data,
feedback, trends.
o
Strategic presentation to engage
customers and drive sales.
o
Consider Seasonality & Local
Trends (e.g., fishing, festivals).
o
o
Reliable Sourcing & Supplier
Management.
Elements: Layout integration,
fixtures, product grouping (crossselling ), window displays , signage,
lighting, sensory elements.
o
Santa Ana Focus: Incorporate local
themes (coastal, fishing, festival )
for authenticity and appeal.
Inventory Management:
o
Techniques: Tracking (POS ),
•
PRICING STRATEGY
Setting the Right
Price for Santa
Ana
Common Pricing Strategies:
o
Cost-Plus (Markup): Cost + Fixed %.
Simple, ignores market.
o
Competitive: Based on competitor
prices. Requires monitoring.
o
Value-Based: Based on perceived
customer value. Good for
unique/luxury items.
o
Penetration: Low initial price for
market share.
o
Psychological: e.g., P99.95 vs P100.
o
Bundle: Multiple items for one
price.
o
Price Skimming: High initial price for
new products.
o
Premium: High price signals
quality/exclusivity.
•
Influencing Factors: Costs, Competition,
Perceived Value, Target Market
(income/sensitivity), Business Objectives,
Product Type.
•
Pricing for Santa Ana Market:
o
Challenge: Balance price-sensitive
locals (2nd Class Municipality ) and
potentially higher-spending
tourists.
o
Approach: Consider tiered strategy
– competitive/cost-plus for
essentials, value-based/premium for
unique/tourist items. Use local
markup averages (e.g., ~30%
general, varies widely ) as a guide.
•
CUSTOMER
SERVICE STRATEGY
Building Loyalty
Through Service
•
Importance: Critical differentiator, builds
loyalty, generates positive word-ofmouth (esp. important in PH ),
strengthens brand. Filipinos value
experience.
Key Components:
o
o
Staff Training: Empathy, Listening,
Communication, Product
Knowledge, Problem-Solving, Speed,
Reliability.
Clear Policies: Returns, complaints,
out-of-stock handling (transparent &
customer-centric).
o
Personalization: Tailor service using
customer data/preferences.
o
Welcoming Atmosphere: Clean,
organized, inviting environment;
amenities (Wi-Fi, seating).
o
•
Feedback Mechanisms: Surveys,
reviews, social media monitoring.
Omnichannel Service & Loyalty:
o
Consistent experience across all
touchpoints (in-store, online, social
media).
o
Self-Service Options (FAQs,
chatbots).
o
Loyalty Programs (rewards,
discounts, exclusive access).
o
Crucial for PH: Integrate social
media (e.g., Facebook Messenger)
for support due to high usage.
•
MARKETING &
SALES PLAN
•
•
Target Audience: Define specific segments
(locals, tourists, age groups) based on Santa
Ana demographics , psychographics, needs,
behaviors.
▪
o
Marketing Mix (Briefly): Product, Price,
Place, Promotion (+ People, Process, Physical
Evidence).
Online:
▪
▪
Social Media (Facebook,
Instagram, TikTok - high PH usage
). Use localized content,
interactive posts.
Influencer Marketing (Highly
trusted in PH ). Collaborate with
local influencers.
▪
Content Marketing, Email
Marketing.
▪
Local SEO (Google Business
Profile, mobile optimization
o
Paid Digital Ads (Targeted).
Offline:
▪
In-Store Promotions & Events
(Leverage Viray Festival ).
▪
Local Partnerships (Hotels, tour
operators).
▪
Word-of-Mouth (Encourage
reviews - very powerful in PH ).
▪
Community Engagement (Sponsor
local events).
▪
Storefront/Window Displays.
▪
Traditional Media (Consider local
flyers, radio if relevant ).
Effective Channels for Santa Ana:
o
Reaching Our
Customers in
Santa Ana
crucial ).
Sales Strategy: Define process, set
SMART targets , train staff (crossselling/upselling ), focus on customer
acquisition (CAC ) & retention (loyalty
programs ).
•
Staffing Needs:
o
o
STAFFING PLAN
Roles: Manager, Sales Associates,
Cashier, Stock Clerk (Define
responsibilities clearly).
Numbers: Determine based on
hours, traffic, service level (Fulltime/Part-time mix).
•
Compensation & Compliance (CRITICAL):
o
Competitive pay + benefits.
o
Philippine Labor Law (Region II):
Must adhere to DOLE/NWPC
standards.
Sector/Industry
Daily Minimum Wage
Rate
Minimum Wage (Region II - effective Oct 17, 2024):
Non-Agriculture P480.00
•
Building Our
Team
•
Recruitment & Onboarding: Outline
process for hiring and integrating new
staff effectively.
Training Needs:
o
o
Notes
Agriculture
Typically applies to
retail
P460.00
* Other Standards: Hours (8/day), Overtime
(+25%/+30%), Premium Pay (+30%), Night Shift
(+10% - N/A for <=5 workers [73, 75]), 13th Month
Pay, Leaves (Maternity, Paternity, etc.),
SSS/PhilHealth/Pag-IBIG.[39, 73, 74, 75]
Customer Service, Sales Techniques,
* **Small Establishment Rules (<=10 workers):**
Product Knowledge, POS Operation,
Note potential exemptions (Holiday Pay, SIL,
Retirement Pay [73, 75]) but most standards *still
Operational Tasks.
Methods: On-the-job, Role-playing,
Scenario-based, Elearning/Microlearning, Games.
apply*. *Verify current rules with DOLE/RTWPBII!*.[38, 75]
o
FINANCIAL
PLANNING
The Numbers:
Costs, Forecasts
& Funding
o
Sample Categories: Leasehold Improvements, Initial Inventory,
Equipment/Fixtures (POS), Licenses/Permits , Marketing, Professional Fees
, Working Capital Reserve.
Sample Startup Cost Table:
Cost Category
Estimated Cost (PHP)
Notes
One-Time Costs
Lease Security Deposit
[Estimate]
Typically 1-3 months' rent
Leasehold Improvements
[Estimate]
Renovations, painting, fixtures
Fixtures & Shelving
[Estimate]
Display units, counters
Equipment (POS, Computer etc)
[Estimate]
Initial Inventory Purchase
[Estimate]
Signage (Exterior/Interior)
[Estimate]
Licenses & Permits
[Estimate]
DTI/SEC, Mayor's Permit, BIR
Initial Marketing
[Estimate]
Grand opening
Professional Fees
[Estimate]
Legal/Accounting setup
Subtotal: One-Time Costs
****
Monthly Costs (Initial)
Working Capital Reserve
[Estimate]
Subtotal: Reserve
****
TOTAL ESTIMATED FUNDS NEEDED
****
Cover 3-6 months operating expenses
Replace placeholders with Santa Ana specific research
•
FINANCIAL
PLANNING
The Numbers:
Costs, Forecasts
& Funding
Sales Forecasting: Project revenue (3- •
5 years), considering Santa Ana market
size, pricing, marketing, seasonality
•
(tourism/festivals ). Use bottomup/top-down methods.
•
Expense Budgeting: Detail ongoing
operating costs (rent, utilities, salaries
based on Region II wage , COGS,
marketing, insurance, supplies,
taxes).
•
Projected Financials: Income
Statement (Profit/Loss), Cash Flow
Statement (Liquidity), Balance Sheet
(Assets/Liabilities/Equity).
Break-Even Analysis: Point where
revenue = costs.
Funding: State amount needed, use of
funds, type (debt/equity), potential
sources (personal, loans, investors,
grants).
•
ORGANIZATIONAL
STRUCTURE
•
How We’re
Organized
Structure Choice:
o
Defines roles, responsibilities,
reporting lines.
o
For Santa Ana startup: Likely
Simple or Flat structure initially
(Owner/Manager oversees team
directly).
Key Roles & Responsibilities:
o
o
Clearly define duties for Manager,
Sales Associates, etc. (even if one
person wears multiple hats
initially).
Cover functions: Merchandising,
Operations, Marketing, Finance,
Admin.
•
Reporting Lines: Use an organizational
chart (even a simple one) to show
hierarchy and communication flow.
•
Legal Structure (Philippines):
o
Sole Proprietorship: Simple (DTI
registration), unlimited personal
liability.
o
Partnership: 2+ owners (SEC
registration), shared liability.
o
Corporation (incl. One Person
Corp - OPC): Separate legal entity
(SEC registration), limited liability,
more complex.
o
Choice impacts liability, tax, admin.
Consult professionals.
CONCLUSION
Moving
Forward
•
Summary: A comprehensive, tailored
plan is vital for retail success in Santa
Ana.
•
Key Success Factors:
o
o
o
Contextualization: Deep
understanding and adaptation to
Santa Ana's unique market
(demographics , economy ,
tourism ).
Integration: Ensuring all plan
components work together
synergistically.
Diligence: Thorough research
(market, location, financials).
o
o
o
Compliance: Strict adherence to
local/national regulations (esp.
Region II labor laws ).
Financial Realism: Base
projections on local costs
(wages) and realistic sales
forecasts (seasonality).
Adaptability: Plan is a living
document; monitor performance
and market changes, adjust as
needed.
Next Steps:.
Thank you!