Marketing Report 2014 – International
Marketing – Algonquin College
Canun
StoperDrills and Sinkers
Hasham Ibrahim
Marketing Report 2014 – Canun – Hasham Ibrahim
Table of Contents
Executive Summary ...................................................................................................................................... 4
Description of Products ................................................................................................................................ 5
Product Description ......................................................................................................................... 5
Stoper Drills......................................................................................................................... 5
Sinkers ................................................................................................................................. 5
Country/Market Rationale........................................................................................................................... 6
Republic of the Philippines .............................................................................................................. 6
Economy – Philippines ..................................................................................................................... 6
Benefits for Canun ........................................................................................................................... 6
Business Climate .............................................................................................................................. 7
Communication Systems ................................................................................................................. 7
Factors that will Impact Business..................................................................................................... 7
Natural Disasters................................................................................................................. 7
Currency Exchange.............................................................................................................. 7
Factors that will Impact the Business (Con’t) .................................................................................. 8
Government Regulations .................................................................................................... 8
Target Company ............................................................................................................................... 8
The Philippine National Construction Corporation (PNCC) ............................................................. 8
Market Entry Strategy .................................................................................................................................. 9
Entry Method ................................................................................................................................... 9
Rationale ............................................................................................................................. 9
How to get in Contact ......................................................................................................... 9
Legal/Political/Cultural Impact Identified ................................................................................................. 10
Political Risks .................................................................................................................................. 10
Definition of Political Risk ................................................................................................. 10
Political Stability in Philippines ......................................................................................... 10
Business Environment....................................................................................................... 10
Geographical Issues ....................................................................................................................... 11
Pollution ............................................................................................................................ 11
Location............................................................................................................................. 11
Topography ....................................................................................................................... 11
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Marketing Report 2014 – Canun – Hasham Ibrahim
Business Customs and Practices .................................................................................................... 11
Business Meetings ............................................................................................................ 11
Business Customs and Practices (Con’t) ........................................................................................ 12
Gift Giving ......................................................................................................................... 12
Eating ................................................................................................................................ 12
Religion, Culture, and Language .................................................................................................... 12
Religion ............................................................................................................................. 12
Culture .............................................................................................................................. 12
Language ........................................................................................................................... 13
Foreign Investment and Repatriating Funds.................................................................................. 13
View on Foreign Investment ............................................................................................. 13
Repatriating Funds ............................................................................................................ 13
Taxation ......................................................................................................................................... 14
Tax System in Philippines .................................................................................................. 14
Currency ......................................................................................................................................... 14
Regulatory Environment ................................................................................................................ 14
Philippine laws of Regulatory Environment...................................................................... 14
Packaging and Labelling ................................................................................................................. 15
Regulations – Philippines ............................................................................................................... 15
Pricing/Promotional Mechanisms Rationale ............................................................................................ 17
Product........................................................................................................................................... 17
Description of the Products & Benefits ............................................................................ 17
Price ............................................................................................................................................... 17
Price Skimming.................................................................................................................. 17
Payment Terms ................................................................................................................. 18
Mark-Up pricing Method .................................................................................................. 18
Promotion ...................................................................................................................................... 18
Promotional Strategy ........................................................................................................ 18
Advertising ........................................................................................................................ 19
Public Relations ................................................................................................................. 19
Sales Promotions .............................................................................................................. 20
Target Consumer............................................................................................................................ 21
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Marketing Report 2014 – Canun – Hasham Ibrahim
Customer Profile ............................................................................................................... 21
Training Required.............................................................................................................. 21
After-Sales Service ......................................................................................................................... 21
Customer Service ........................................................................................................................... 22
Logistics Mechanism Rationale .................................................................................................................. 23
Logistics ............................................................................................................................. 23
Shipping Methods .......................................................................................................................... 23
Different Shipping Methods Available .............................................................................. 23
Shipping Terms Used ........................................................................................................ 23
Arrival at the Target Market .......................................................................................................... 24
Order Handling.................................................................................................................. 24
Transportation .................................................................................................................. 24
Inventory ........................................................................................................................... 24
Vision of Transportation in Philippines .......................................................................................... 24
Distribution System........................................................................................................... 25
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Marketing Report 2014 – Canun – Hasham Ibrahim
Executive Summary
As the world innovates day to day, Canun is there to assist. Canun is a Canadian company that
produces drills for construction and mining sites. Our goal is to provide customers with the best quality
drills that money can buy. Customers value the quality and customer service we provide for difficult jobs
that take large amount effort to perform.
There are two drills we will provide and they are; Stoper drills, and Sinkers. First, we have Stoper
Drills for horizontal holes for both construction and mining crews. Our second product is Sinkers that is
used to vertical holes. Both of our products are reliable, efficient, and effective. We saw the need for
these products from crews that do the some of the most difficult jobs.
We saw the growth in Philippines’ economy through statistics in 2013 and construction was a big
help in the continuous growth. The economy seems to be stable this year, and it is a potential market
for many types of businesses. It seems to be one of the fastest growing markets in Asia. This market has
huge opportunities that Canun wants to be part of its growth.
Our target customer is the Philippines National Construction Corporation (PNCC) that is partly
owned by the Government of Philippines. They are the biggest construction corporation in the
Philippines that has been a part of many projects around the world. We will to satisfy their needs by
providing our Canun drills for the corporation and hopefully, build a long-lasting relationship for other
potential sales.
For us, an agent seems to be the best market entry strategy. The agent will take care of all the
business meetings and sales, and through the volume of sales, they will get a margin of the profit that
we will get. They will not take any title to the product or service, they are just responsibility for the
delivery of the products from Canun to PNCC.
The legal system in the Philippines seems to be stable, and could work well for Canun. The current
President Benigno Aquino of the Philippines has helped them gain much growth for the economy. The
country looks forward to building more and more business relationships around the world to help grow
the market.
This marketing report will go more into detail for Canun by looking at promotions and more.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Description of Products
Canun is a Canadian owned company that creates and manufactures rock
drills for the mining, quarrying, and construction industries. Our goal is to
provide quality products to help different mining and construction crews
all over the world.
Canun Information:
2896 Belisle Dr, Val Caron, ON P3N 1B3
(705) 897-0400
www.canun.com
Product Description
In modern day, we can see the transformation of houses, malls, and parks being build all over the world.
As we see the world progress, we feel that there is a need for our products that we want to provide for
construction industries in order to build reliable buildings. Our products are:
Stoper Drills
A drill that is meets the mining sites’ needs. This drifting drill is used for
horizontal holes that would be perfect for mining crews because it is
strong and reliable quality product. Product is stainless steel. Many
difficult jobs can be performed by this drill that can survive through rough
environments.
Sinkers
This drill is used for shaft mining which is one of the most difficult jobs
because there are a lot of variables that come into play like gravity, and
water ground. Shaft mining is when sites create a hole vertically towards
the ground when there is no access. Our sinkers will be quality products
that will make this process a much easier task.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Country/Market Rationale
Republic of the Philippines
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Capital – Manila
Continent – Asia
Languages – Filipino and English
Government System – Democratic
Currency – Peso (Filipino Piso)
Population – 96,706,764
Gross Domestic Product (PPP) – $424.4 billion
 Per Capita – $4,430
Major Trading Partners
 China
 United States of America
 Japan
 South Korea
Economy – Philippines
Philippines’ economy is one of the 40th largest in the world. It has been predicted by Goldman Sachs,
that Philippines will be one of the top 20 largest economy in the world by 2050. Philippines has a variety
of products in their largest exports list that include electronic products, garments, transportation
equipment, fruits, and more which will helps them receive major partnerships with the world.
Philippines was the fastest growing economy in the first quarter of 2013 in Asia, with its GDP which was
7.8 percent beating China that was 7.7 percent. The National Statistical Coordination Board explains that
the growth for Philippines is due to their performance in manufacturing, and construction sectors. It
would be a good idea for Canun to sell its products to a construction site in Philippines because they
have been performing well in construction sectors like NSCB explained.
Benefits for Canun
I believe that Canun has many benefits in the Filipino market because it has been proven that the mining
and quarrying industry in 2012 was 1.7 percent in the first quarter, and then increased tp 2.8 percent by
the end of the year, and it has increase in 2013.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Benefits for Canun (Con’t)
Moreover, Canun has products that target construction industries in the Philippines; it has increase to
32.5 percent in 2013 from 29.9 percent in the end of 2012. It shows that the Filipino market has been of
the rise which will help Canun succeed in the foreign market.
Business Climate
The government of Philippines is always looking for the opportunity for foreign in order to help build its’
economic growth. They are always looking towards contracting free trade agreements. Philippine
Economic Zone Authority (PEZA) is looking to creating a stable business environment to allow more
foreign investments, exports, and employment for the Philippines. The Economist Corporate Network
has done a survey that came to a result, Philippines is the second best country for improved investment
climate in Asia beating China.
Communication Systems
Philippines is a country that is up-to-date with their technology. They are an advanced country when it
comes to communications. For example, phone calls, emails, radio, etc.
Factors that will Impact Business
Natural Disasters
During November 2013, a tornado named, “Typhoon Haiyan” affected 9.5 million people in the
Philippines. This has been one of the deadliest tornado’s Philippines has ever faced in its history. Looking
at it from a business point of view, this is a short-term damage economy for Philippines. But due to
reconstruction, it looks Philippines GDP will rise again. It will effect of business doing there in a negative
and positive way. Canun products will be used by The Philippine National Construction Corporation in
order to rebuild their country.
Currency Exchange
When it comes to doing business internationally, currency exchange always comes to an issue. Canun is
a Canadian company that will have sell its products to the Philippine National Construction Corporation,
so PNCC will have to convert their currency to CAN dollar in order to make the payment. Since the
Philippine currency is weaker than the CAD dollar, they will have to try their best to make extra money
so they can pay for the products Canun provides. However, we might have to lower our prices to meet
the competition prices in the foreign market and make it affordable for the customers.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Factors that will Impact the Business (Con’t)
Government Regulations
Throughout business deals, sometimes government regulations can be difficult to meet which allows
business deals to fail. Canun is providing equipment for construction sites; it can be unsafe if an
individual isn’t trained used it. Canun will try to meet all government regulations with the right safety
instructions in major languages in the Philippines.
All these three factors can affect the way business is done in different countries. Export Development
Canada seems like an agency that will help us get the information we need and regulations provided by
the government of the Philippines.
Target Company
The Philippine National Construction Corporation (PNCC)
PNCC is the corporation mostly owned by the government in the
Philippines. It is the largest construction company in the
Philippines and in South Asia. It was found in November 22, 1966
so it has been around for decades. They do various projects in
construction, engineering and manufacturing.
PNCC is a successful corporation who should use Canun products in their sites. It has been a part of
many large projects like building bridges, transit ways, and more. Providing Canun products for PNCC
will help our company reach more countries because they also do work in Hong Kong, Saudi Arabia, and
Indonesia.
Projects by: The Philippine National Construction Corporation
San Juanico Bridge
Manuel Pangilinan-led Metro Pacific Investments Corporation (MPIC) expressways
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Marketing Report 2014 – Canun – Hasham Ibrahim
Market Entry Strategy
Entry Method
A market entry strategy is the process of exporting goods and services from one country to a new
market. Canun would like to send its goods to Philippines. We are looking at getting an agent to do this
job. An agent is a salesperson who does not take any title to the product but just takes it from the
producer to the end user by representing us (Canun).
Producer (Canun)
Agent
User
(PNCC)
Rationale
We are looking to hiring an agent because they have the knowledge to sell the product PNCC. An agent
does not take any credit to the product and usually does not put efforts into creating the terms of the
sale. They do have a commission on the amount of sales they make. A simple example of an agent would
be, if a person has the intention of selling their own home, they would hire a real esate agent who has
the knowledge of the market, and when they would make a sale between the owner and buyer, they
would get a commission.
How to get in Contact
The Philippines is a country would multiple ways to communication with a
company. Our Agent will have the knowledge about the market and the best
potential customers. Canun’s target firm is Philippine National Construction
Corporation with is mostly owned by the Government of the Philippines. According
to Department of Trade & Industry, PNCC’s contact information is:
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Office of the Chairman
PNCC Complex, Km. 15 East Service Road, Bicutan, Parañaque City
Tel. No.: (+632) 822.5725/846.3045 loc.103
E-mail: pncc@pncc.ph
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Marketing Report 2014 – Canun – Hasham Ibrahim
Legal/Political/Cultural Impact Identified
Political Risks
Definition of Political Risk
Political risks focus on the business investments that might loss profit due
to the changes that might occur in political changes and instability in a
country like changes in government, increase or decrease in military
control, etc.
Political Stability in Philippines
President Benigno Aquino is a current president of the Philippines since
June 2010. His goal is to create a stable economy to increase foreign investment. Also has a campaign
that wants to fight against corruption in the Philippines. His gained his voters through the promise of
reducing corruption and building a strong government. Many Filipino’s are satisfied with the position
the President has took because it reflects by the improvement in the country’s GDP.
Moody’s Investors Service is a credit-rating company that has been around for many years. Recently, the
company gave Philippines an “investment grade” for the first time, which gives them an advantage.
Most importantly, the political leaders were happy to see that they reached their goal of increasing
investment. Not only did Moody’s Investors Service give them investors grading, but also, Fitch Ratings,
and Standard.
Business Environment
According to Export Development Canada, Philippines is an emerging market that is looking towards
building a strong business environment. The relationship between Canada, and the Philippines is
continuing to grow throughout time steadily. Both are looking towards partners that are local to be
successful in their market.
Export Development Canada has a list of key industries, one of those industries is, construction. Canun is
looking to provide drilling equipment for construction sites in Philippines. As the population grows,
more housing are being build that could give us the advantage.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Geographical Issues
Pollution
As the population grows in the Philippines, water pollution is a problem that has been on the rise for the
past couple years. This pollution affects the country’s coastal areas, rivers and lakes. Poor management
creates this problem in the country.
Location
The country itself is located in “Ring of Fire” zone. The Ring of Fire is an area that has many large
disasters like earthquakes in the Pacific Ocean. Due to the location of the country, Philippines receives
the impacts of natural disasters that are affected by the Ring of Fire. As the population increases,
infrastructures have a huge risk by the natural disasters.
The picture below shows us the areas of Ring of Fire. As you can tell, Philippine is a part of those
locations:
Topography
In the Philippines, one of the common risks in terms of topography would be volcanic disasters that are
pretty active in Luzon which is the largest island there. These volcanos can be active and also create
earthquakes that can a risk for the country.
Business Customs and Practices
Business Meetings
In Philippines, it is common to make appointments ahead of time like a month which is similar to
Canada. Moreover, it is good to confirm the appointment a few days before the actual arrangement. If
you have many details to cover, it is good to make extra copies for the party. Being on time is an
important aspect in the business culture. Always show more respect to the elder.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Business Customs and Practices (Con’t)
Gift Giving
Filipino’s don’t focus much on the gift but more on how the gift is packaged. They would like it to be
more festive. Some countries dislike a certain colour, but in the Philippines, they like all colours. Items
that are from your own country are much appreciated in their culture. Present the gift itself and do not
put it in a bag when you are exchanging it.
Eating
One of the most common rules in Philippines when it comes to meeting, always accept a drink when you
are offered one by the host. When at a restaurant, follow the host on where and when to start your
meal. Some Asian cultures leave a bit of food on their plate but Filipinos encourage the finish the whole
plate as a sign of enjoyment for the food.
Religion, Culture, and Language
Religion
Majority of the residents in the Philippines are under the Christian faith. Also Islam is a minority but
both Christianity and Islamic religion have built the strong faith for the Filipino’s. Others such as
Buddhism, Judaism, are a very small part of the country.
Culture
The world looks at Filipinos as creative people through their traditions,
and festivals. At first, American ruled the Philippines, and then came the
Spanish that influence the creativity in music, and paintings. They express
their culture through music, dance, art, and food by having multiple
festivals around the year to be happy.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Religion, Culture, and Language (Con’t)
Language
In the Philippines, their main language is Tagalog. Many other languages are spoken, but are common to
the world. English is the second language of the Philippines which they use in other to educate
themselves about the world. They recognize the importance of the English language, and try their best
to use it for full advantage to do businesses with the world. In fact, they are many people that mix some
Tagalog, and English words to communicate with each other.
Foreign Investment and Repatriating Funds
Meaning of Foreign Direct Investment
The act of investing in a business, or production in a target country. It can be buying or selling in a
different market.
View on Foreign Investment
In 2013, the Filipino economy grew through manufacturing which made it one of the best markets in
Asia. According to Department of Trade and Industry Philippines, the market is open to everyone except
businesses that are in the Foreign Investment Negative List (FINL). This shows that you are able to
invest and own 100% of the business.
Meaning of Repatriating Funds
Repatriating Funds is the process of moving funds from one country to another. It can also be selling a
product in a foreign, and moving the money back to the home country.
Repatriating Funds
There is a central bank in Philippines that is called Bangko Sentral ng Pilipinas
(BSP), they allow full repatriation of the money, and ownership only if you are
registered with them. Without the restriction of not allowing repatriating funds,
more companies would like to do business in the Philippines and have the
freedom to utilize their capital.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Taxation
Tax System in Philippines
The Philippines has an agency called Bureau of Internal Revenue that has the mission to collect all taxes
to build a better and stable economy. They say the tax range is from 5% to 35%. They offer all types of
information on their site with all the definitions of the tax system. Moreover, work towards keeping a
fair tax law to help every person in the Philippines.
Currency
Currency: Philippine Peso
From the past 10 years in the Philippine, the currency is very stable. World Bank explains that Philippine
wants to keep a safe saving rate that will help the investment. Philippine has an emerging economy
because of the skilled-workface. In 2012, the Philippine Peso dropped 2.8% which is decent compared to
other Asian countries that decrease even more.
Regulatory Environment
Meaning of Regulatory Environment
Regulatory Environment is the act of creating laws in a country for businesses, workers, marketers, to
control their behaviour of advertising or usage of the product. In business, advertising can be taken too
far which might hurt the countries reputation. It can be restrict some marketers but can also create
opportunities.
Philippine laws of Regulatory Environment
The government of the Philippines declared laws that will give the
marketers an advantage but also at the same time, balance what will be
aired. They have an agency that takes care of all environment laws, that
is named, Department of Environment and Natural Resources. The goal
is to keep a sustainable natural resources with a clean environment.
Laws that we need to take into consideration:
“PRESIDENTIAL DECREE No. 984” (pollution law) – eliminate all polutions that include chemicals that
might be harmful.
“Philippine Clean Air Act of 1999.” – eliminate all production or usage that might affect the air. Mission
is to keep clean air for the people in the Philippines.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Packaging and Labelling
Packaging
Fill Level – need to make sure that the package is filled to prevent the consumer for thinking it has a
larger quantity. We will have foam bags, and packages that should protect the product when it is being
shipped.*
Package Design and Display – whatever our product is, we need to make sure our customer isn’t misled
by the product. For example, we could say it lasts long, but in reality, it might not.
*Must be Secure to the climate in the Philippine.
Labelling
Section 7 Act - All labels must prevent false information to the consumer.*
Certificate of Origin – It must have a label of where the product was produced. “Made in” if not, a 5%
tax will be applicable.
Language – has to be in Tagalog or English. Philippines has a skilled workforce who are able
to read English.
Dealer’s name – who is selling the product. *
*Also considering Canadian Laws*
Regulations – Philippines
Philippines is a member of the World Trade Organization and Asian Pacific Economic Coorporation which
both will help its economic growth.
Import
Philippines has import rules that we must follow:
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Must have a registered
Business name
Trademark
Bureau of Trade Regulation and Consumer Protection (BTRCP) – provide business approvals
for importation
Must apply for a “application for importation”
Directions on how to use
Country product was manufactured in
Is the product flammable?
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Marketing Report 2014 – Canun – Hasham Ibrahim
Export
Philippines has export rules that we might need in case of a return:
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When Purchasing
Must have a receipt from the buyer
Can be paid through Agent Bank (Letter of Credit)
Export Documentation
Export Declaration Form (are available online)
Must need an export permit from the government office
When unloading
Philippine Economic Zone Authority (PEZA) approval
Certificate of Origin Check
For More Information, Contact:
Export Trade Facilitation Division
Bureau of Export Trade Promotion
DTI International Bldg.
375 Sen. Gil J. Puyat Ave., Makati City
Tel. Nos.: (+632) 890.4693 / 896.3251
E-mail: betpetfd@dti.gov.ph
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Marketing Report 2014 – Canun – Hasham Ibrahim
Pricing/Promotional Mechanisms Rationale
Product
Description of the Products & Benefits
Stoper Drills – It is used for horizontal holes for mining crews. This drill
is perfect for the mining crews because it meets their needs. It is
reliable, strong product that lives up to its expectations. Sometimes
you might be in a muddy environment that will ruin the product but it
is stainless steel that will protect the look of the product. This product
is lighter and more efficient and that is what makes it different from
most of its competition.
Sinkers – when a company is mining, or constructing, one of the most difficult jobs that many crews
have to do is shaft mining. This product will be effective for the consumers and make it an easier job
with the power it provides. It is used when a crew wants to dig a vertical hole. This product makes a
difficult job much easier and that is what makes it different from its competition.
Price
Price Skimming
A price skimming strategy is when a company sets a high price when it releases a product then over time
reduces the price. When customers increase the demand, company reduces the price to attract more
and more customers.
This strategy seems to be the most effective because we want to cover our sunk costs first, then we
want to reduce it as demand increases. This strategy is used by many companies and seems to be a
smart choice.
This picture shows a visual example of price skimming strategy:
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Marketing Report 2014 – Canun – Hasham Ibrahim
Price (con’t)
Payment Terms
Different options will be available (by the seller) for the buyer to choose from in order to complete the
sale. These options exactly say how the payment will go. For example, cash on delivery, a deferred
payment for 30 days, and more.
We want to allow the customer to have freedom but at the same time not too much freedom. Taking a
payment prior to the transaction, then pay monthly seems to be a good choice. Moreover, customer will
also have the choice of paying the entire amount too.
Mark-Up pricing Method
A mark-up pricing method is the difference between the cost used for production and the price that the
company has set of the price. This method is used to create a promising profit. It is used by many
companies as a start-up method.
This method seems to be useful because it reduces the risks of not earning profit. This can involve fixed
and variable expenses when producing the product. This can be a simple formula we would like to use at
beginning of the business period. Here is an example of how the calculation for the price will be done:
Cost = the cost it takes for the company to produce the product
Sale Price = the price the company sets for the product
Markup = the profit earned by the company
Promotion
Promotional Strategy
A method of delivering the word of your product to the consumers you want to target. This method
includes many factors that I will be discussing below in this report which should help benefit our
company.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Promotion (Con’t)
Advertising
Advertising is a way to such out to customers in order to persuade them
into buying your product. It is a major sector of business and is used by all
companies in all kinds of different forms. This can have a huge impact on
your businesses image because you need to make sure it delivers a
positive message to the consumers without creating barriers.
We will be taking these forms of advertising into consideration:
Press Advertising – used to communicate to target customers through
newspapers, magazines, and journals.
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Construction & Design is the construction magazine in the Philippines where we will
advertise our product. This magazine includes all new buildings, products, which are going
into the country in order to show what is happening around the country. Moreover, it
includes many articles written that can help evaluate our product. Price is undetermined on
their website, but it possible to get a quote when you call them.
Contact for Construction & Design
Unit 32, 33rd Floor, City & Land Mega Plaza
corner Garnet Road, Brgy. San Antonio, Ortigas Center
Pasig, City Metro Manila 1605
Philippines
saibermediainc@yahoo.com.ph
saibermediaincorporated@yahoo.com.ph
Manila: +63 02 463-4352
Direct Mail – this method reaches out to many targeted customers through emails, post, or fax. Since
we only have one targeted customer, we will send it directly to them.
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The Philippine National Construction Corporation is our targeted customer therefore; we
will be sending direct mail towards them. This method is very cheap and reliable when it
comes to advertising.
Public Relations
Public relations are the on-going communications used to build a relationship between the customer
and the organization. This benefits companies because it creates huge exposure to the public through
social media, and articles.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Promotions (Con’t)
We will be taking this aspect of public relations into consideration:
Agents – a person who handles the business relationships represented by the company.
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Agent-owned company is a company that is private which includes multiple agents available
to handle marketing aspects for business-to-business company methods. These agents will
handle the business relations in order to reduce the gap between customers, and
organization. We will take any comments made by companies and use it to create better
products.
Sales Promotions
A sales promotion is a methods used to persuade the customer to buy the product or service. This can
be an example of providing a promotion of buy one, get second 50%. There are many sales promotions
that aim to encourage the customers into buying a product. Mission is increase demand and sales for
the product through promotions.
We will be taking these aspects of sales promotions into consideration:
Workshops – a method used to deliver information, and skills through teachings in a conference room.
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We will have a Team of Teachers be providing workshops for our customers to help teach
how to use the product. Drills can be a complicated tool to learn, therefore; we will use
Workshops to show all the features and benefits that our products provide.
Multi-packs – a group of products/services sold in a pack.
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To encourage our customers to buy our products, we will have buy 4, get 1 free. Our goal is
to make sure, our customer use our products throughout the country in multiple projects.
Providing a buy 4, get 1 free method increases the volume of sales.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Target Consumer
Customer Profile
A customer profile is description that exactly identifies who your customers are.
This could include demographics, geographic aspects.
The Philippine National Construction Corporation is a company that is most
owned by the Philippine government which is my targeted company. This is a large corporation in the
Philippines which is involved in many major projects. Philippine is a country in East-Asia with a warm
climate. Our goal is sell as many products to them as possible in order to maximize our profits in the
Philippines. The purchasing method is not identified by the corporation.
Training Required
The product that will be provided for our customers is difficult to use. We will have a group of staff that
will be training our customers how to use (also mentioned in sales promotion) which will be way to
promote of product. A construction/mining is a complicated project that needs to be done right. A group
of teachers will travel to Philippines to help the customer understand the features and capability of the
product.
After-Sales Service
An after-sales service is a period where the company is willing to take fix the product if it needs
maintenance. For example, if someone bought a computer that crashed after few days, the customer
can send it to the supplier to fix.
Our goal is to build a relationship with our customer to increase the business length. We will have 3month warranty where if our product isn’t working, we will fix it for free. Our customers can buy a
warranty that can extend the period to one or two years. We have to make sure our customers receive
the great service, and guarantee to completely their satisfaction:
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Marketing Report 2014 – Canun – Hasham Ibrahim
Customer Service
Customer service is type of service that is available for the customer before,
during, and after the sale. This helps build a customer relationship by always
having employees that will provide answers for our customers.
A 24-hour service can be reached by our customers through calls, and emails.
Our mission is to always be there to answer the questions our customers have
even after the sale. There are five rules that we want to follow in order to
have great customer service.
1. Answer all
Questions being
asked - Be helpful
2. Be Happy to
Help - It is not all
about money
4. Listen to the
Customers - People
want to be Heard
3. Great Staff Trained staff with
knowledge
5. Answer your phone
- Don't make your
customers be on the
line for a long time
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Marketing Report 2014 – Canun – Hasham Ibrahim
Logistics Mechanism Rationale
Logistics
Logistics is a process that includes the flow of goods and services from
the production, till the consumption by customers.
Shipping Methods
Shipping Methods Definition – different methods of shipping a product from point A to B. For example,
if you buy an iPod on eBay, you can either pick express shipping method which will come faster because
it is usually shipped by airplane, or regular which might take longer.
Different Shipping Methods Available
We want to build a special relationship with all the industry carriers in the Philippines to have a reliable
partner that will take our product from point A to B safely. The products we provide are heavy,
therefore; we will need to get equipment that will be able to carry them for our customers that will be
provided by the drivers who ship it from the port. All our shipments to the Philippines will have to be by
air. Between islands, you can there will be shipments done by boats. As soon our products are in the
Philippines, the continuation will be done rail or road.
•
Next Business Day (Express) – If our customer needs a product as soon as possible, we will
be able to ship our product the next day by finding the next flight available. This is an
express option that the customers will have to pay extra for.
•
3 – 10 days (Regular) – Customers will always have the regular option available which takes
3 – 10 business days in order to make the shipment. They will not have to extra payments;
our shipping will be cost-free.
Shipping Terms Used
Incoterms – are shipping terms introduced by the International Chamber of Commerce (ICC) used by
countries to make ‘trade’ effective and efficient. Their goal is to eliminate misunderstand between
countries.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Shipping Terms Used (Con’t)
To reduce risk of incomplete documents, we will hire shipment agents who will completely all proper
documents for the shipment with customs. Also they will provide insurance for us as well.
•
•
Free on Board (FOB) Destination – This term identifies that we have full responsibility of any
risk, or damage until the shipment is fully delivered to the customer.
Certificate of Insurance (CIF) – We want to provide a document which is an insurance policy for
reduce the costs of any damage caused in the Shipment.
Arrival at the Target Market
Order Handling
Our customer will have the responsibility of organizing, and tracking when
the products reach their market. This reduces the cost for us to find an
agency and warehouse in a foreign market.
Transportation
When our products arrive in the Philippines, due to their great
transportation, they will be able to take the rail or road to deliver the product to their warehouse.
Philippines seems to be up-to-date with their transportation methods therefore it reduces the barriers
that we might come across in a foreign market.
Inventory
The customer should have a manager that will store and check the inventory for the right amount of
goods they purchased. They should have safe warehouse where they will be able to store the product in
a protective environment. Sometimes when you order large quantity, you might have less or extra
inventory, so PNCC should have an inventory manager to make these decisions.
Vision of Transportation in Philippines
The Department of Transportation and Communications (DOTC) is an agency owned by the
government of the Philippines that is in charge of the transportation and communication systems. They
want to keep a reliable transportation system where businesses are able to use to deliver products.
Their vision is to connect all people and islands through transportation systems they can provide. This is
a long-term vision that will take a few decades but as time passes, it won’t cost much to deliver products
from one island, to the other.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Vision of Transportation in Philippines (Con’t)
Distribution System
The plan of how of the process is set-up that includes steps from production of the product or service,
till the end of the line which is the consumer.
We have a procedure of our own that starts in Canada, and ends in the Philippines. Before shipment,
our goal will have to be to check the right amount of inventory that is being requested. The process will
when the customers receive the product at the end of the shipment.
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Marketing Report 2014 – Canun – Hasham Ibrahim
Conclusion – Action Plan
Through all the information done above, I think it would be a wise choice for Canun to take this
opportunity and do business in the Philippines. I looked at many perspectives, and my decision is
supported by the information given above. I will explain my decision below:
The Philippines is one of the top emerging economies in the world including India, Russia, and
Brazil that are looking to create a bigger market for the future. Construction has been a huge part of the
growing economy therefore; selling drills to the Philippine National Construction Corporation will be a
great profit for us.
The Philippine National Construction Corporation seem to be great customers for us since they are
partially owned by the Government of the Philippine. If we build this relationship, we can look forward
to more details with other companies as well.
Since we are providing a customer service, we will need to increase our staff members so we can
be there to help any customers in need. This won’t be difficult to find workers at our call centre, but we
will have to hire professionals to train the employees so they could be able to answer any questions
asked by our customers. Also, we should increase our staff members in the production facility because
potentially, we might have to create larger quantities for our customer.
It would be great to have a human resources system included into our company so we can provide
everything our employees will need. Our managers will be chosen very carefully so they can train the
upcoming employees to run the customer service, and production factory. Our drills need to be
produced very carefully.
This will be a business-to-business relationship with our customer who will have part
responsibilities. We will the responsibilities of our company in Canada that include production, shipping,
staffing, customer service, and more but we will not responsible for the product when it reaches the
country of the Philippines, it will be on their hands.
I personally think this might be a great deal for Canun because it can help us look forward to more
deals with other corporations around the world.
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Marketing Report 2014 – Canun – Hasham Ibrahim
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References – Images – URL
http://www.bsp.gov.ph/images/bsp-logonew.jpg
http://www.manilaherald.com/wp-content/uploads/2013/04/philippines1.jpg
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