MARKET SEGMENTATION

The following factors define the environment in which Pasado Review Center hopes to succeed:

1. Physical: New businesses are being formed across the Philippines. Providing consulting services to
these businesses will require local presence.

2. Legal: The creation of the Review Center for an engineering course has made it very simple for the
other engineering courses to organize as formal business entities.

3. Economic: Current economic conditions are continuing to challenge investors’ views regarding the
potential for return. The customers of the review program can reduce their expenses in
transportation and accommodation in the reason that their review school is now on the
province and nearby to their own homes. The review center can also help potential and
excellent board passers from the province to teach in the review center and make a room
for employment.

4. Social: According to Engr. Dindo Mojica (2016), a good review center program should be viewed by
the students as a wise investment in passing the Board Examinations. Civil engineering
students or graduates must pay for the skills and knowledge of licensed civil engineer
lecturers who have a special study of the Civil Engineering licensure examination types and
contents as prescribed by the Professional Regulations Commission (PRC). By means of
lectures, techniques and demonstrations, lecturers/reviewers pass their wisdom along to
reviewees. The ability of a review center to increase the reviewees’ chances of success
depends on the review center’s program. Review centers aid and assist students for better
chances of passing the licensure exams. Usually, this kind of review method will only be
effective if the student or reviewee will di his or her part.

5. Technological: Recent advances in technology have greatly enhanced the ability for a better
performing review center. The proliferation of the internet facilities data sharing and
communication, and online-ready tests, problems sets, lectures, basic engineering principles
and theories, recent board problems, pre-board examinations and CE refresher series.

With these conditions in mind, Pasado Review Center will concentrate in initially building clients in
Nueva Vizcaya area before expanding into the other areas. We will be concentrating on all schools
offering civil engineering courses in the province. The review center will not segment its market to any
greater degree since the company wants to build clients as quickly as possible. Therefore, our market
analysis chart below reflects this initial strategy.

MARKET ANALYSIS

Schools offering civil engineering course

Other
 MARKET ANALYSIS
Potential Customers Growth
Year 1 Year 2 Year 3 Year 4 Year 5
Schools
offering civil
30 49 71 94 138 84.38 %
engineering
course
Other 0 0 0 0 0 0%
Total 30 49 71 94 138 84.38 %

TARGET MARKET SEGMENT STRATEGY

The target market is defined by the customer needs that create the market, the structural forces
that govern operation within the market, and the attractiveness of the market based on strategic value,
market size, market growth, and potential for profit. Each of these areas is described below.

STRUCTURAL FACTORS

Particular market forces affect the ability of the Jecyfer Company to succeed. These forces are
identified below:

1. Buyer Power: With almost 100 graduates of civil engineering in Nueva Vizcaya and 40000 board
exam takers per year, there is ample demand for consulting services. If any particular school
chooses to go to another review center, there is still other schools that can be targeted by
Pasado Review Center. Reviewers/buyers have power in this market, but the size of the market
makes it unlikely that buyer power will have any significant negative impact on the review
center.

2. Threat of Conventional Competitors: No other conventional competitor owns the idea of building an
engineering review center in the province. Thirteen (13) of high-profile management and
marketing consulting firms exist, yet most of these firms have a reputation for being expensive
and a 4 or more hours away from the province.

3. Supplier Power: Suppliers have minimal power over a review center. The www.jecyferPRC.edu.net
website URL as well as all Jecyfer Company email addresses are owned by Pasado Review
Center. Our Web-hosting provider can be changed quickly in the event of any disruption of
service. Pasado Review Center intends to work with third party alliance partners to fulfill client
projects like review books and lecture series. Contractual stipulations have given the Group legal
remedies to terminate the contract due to cost, quality or time issues with the supplier. By
crafting supplier contracts in a careful manner, we hope to limit our exposure to risk due to
suppliers’ power.

4. Threat for Substitutes: Potential substitutes are a very real threat. Venture Capitalists could add
more engineering review centers to their portfolio in order to have more points of contract with
the new business. Additionally, non-profit groups may offer basic business plan services that is
the same with the goals of Pasado Review Center.

5. Threat for New Entrants: this threat is significant as there are very few barriers to entry in a review
center market. Review centers do not normally have significant intellectual property that can be
 patented and the requirements for creating these firms are minimal. Fortunately, the size of the
new business market should sustain a number of firms in this area. The Jecyfer Company will
focus on gaining ownership of the idea of “an engineering review center in Nueva Vizcaya” in
the mind of the market. By owning the idea, Pasado Review Center will minimize its exposure to
new engineering review centers with similar targets. Owning this idea is an expensive task that
will have to start locally and move from one province to another as the company expands.

MARKET GROWTH

The growth of the market is nearly as important to Pasado Review Center as its size. Pasado
Review Center will need to focus on how to capture the most out of the existing market, even if it
declines in size, then it will think of a way about expanding. Potentially, the low growth may dissuade
some competitors from entering the market, providing the Pasado Review Center with an opportunity
to capture market-and mind-share before more competitors enter.

MARKET ATTRACTIVENESS

The Pasado Review Center is entering the market for small business marketing and management
review centers. The growing number of review centers in the Philippines, particularly in Nueva Vizcaya,
constitute an enormous potential client base that demands the skills provided by the Jecyfer Company.

1. Strategic Value: The engineering review center market is a strategic, and available, segment for the
Jecyfer Company. Many companies are able to get customers to associate a particular concept
or idea with their firm. To date, Nueva Vizcaya has no engineering review center. Over time, the
Pasado Review Center will attempt to capture this association.

2. Market Size: The size of the market is an important factor. While the number of graduates starting
each year will make it difficult to gain significant share of the market in the near term, it does
help to ensure that there will be initial customers available to the Pasado Review Center.

3. Potential for Profit: The potential for profit in this segment is very high. The operating costs
required to address this segment are minimal, allowing a majority of service revenue to be
turned directly into profit. While the barriers to competitive entry may be fairly low, no clear
leader has gained the mind-share of the potential client market. Additionally, based on the
overwhelming size of the market and the distributed nature of the potential clients, it is unlikely
that any competitor will be able to dominate the market in the near future.
MARKET ATTRACTIVENESS SUMMARY
Factor Weight Score Weighted Score
Strategic Value .1 7 0.7
Market Size .4 7 2.8
Market Growth .3 10 3
Potential for Profit .2 9 1.8
Total: 8.3

MARKET TRENDS

Industry Background
 The industry is ideal for the emergence of a firm such as the Pasado Review Center. The
following facts were listed in 2016 published by Dindo Mojica:

 Besavilla Review Center, formerly called Besavilla Engineering Review Center was the oldest
review center (32 years) for civil engineering up to now. It was founded by Engr. Venacio I.
Besavilla, Jr. at Cebu City on 1980 and expanded its operations in Manila and other key cities in
the country (Baguio, Cagayan de Oro, General Santos City and Davao).
 Padilla Review Center, formerly called Padilla Civil Engineering Review School was founded in
the year of 1997 by Engr. Perfecto B. Padilla, Jr. He saw the need for a center that will provide
Civil Engineering graduates an honest to goodness review. He saw the need of the Academe and
the industry for one that will unleash the hidden abilities of graduates and hone them to
perfection. That gave birth to Padilla Review Center with branches in Manila, Cebu, Baguio and
Davao.
 Gillesania Engineering Review and Training Center, founded by Engr. Diego Inocencio T.
Gillesania who was an author of various engineering books. Engr. Gillesania was a former
lecturer of Besavilla Engineering Review Center in Cebu on 1991 and on 1996, he separated
from Besavilla and created his own review center on 1997. Gillesania Review and Training
Center was the only on-line review school in the Philippines offering reviews and refresher
classes. From 2008 to present, GERTC is still standing for almost 10 years with branches in
Tacloban City and Cebu City.
 Polaris Review Center, the biggest review center in the island province of Palawan offers review
classes in CE. It was founded on March 22, 2002 by Engr. Cesar C. Javarez. His decision to
establish a review center in Palawan as driven by a passion to address reviewees’ problem –
“cost of stay in Manila while taking the review course.” By this, it has given an opportunity and
advantage for those graduates who have no time to go to Manila and find it too costly to take
the regular review course. It also enabled the graduates to be well equipped with the trends of
the current questions in all subject areas.
 Xpertz CE Review Center, formerly called Experts, Semana was renamed Semana CE Review
Center on October 2013 and founded by former Experts Ce Review Center founders Engr. Roma
Semana and Engr. Garry Alviento. The only existing branch is in Sampaloc, Manila.
 Review Innovations, in September 2005, after handling review classes at Besavilla Review Center
– Manila for two decades, Engineers Wilfredo Andales, Jose Alfredo Escoto, Jr., Ananias C.
Gloria, Jr., Ramon Guevara and Ariel P. Santos decided to form a review center that will be more
responsive to the students’ needs. Armed with a full grasp of the intricacies of the trade, they
envisioned a center that will truly address the students’ problems and inadequacies. It has
branches in Manila, Cebu (tie-up with Gillesania Engineering Review and Training Center and
Megareview and Tutorial Center) and Davao.
 Megareview and Tutorial Center, on May 2008 it was founded by Dr. Amelia T. Marquez. It is
committed to prepare future Civil Engineering professionals towards the full realization of
enduring core values-engagement with our society, provision of affordable and outstanding
engineering review program, continuous improvement of technical know-hows and practical
applications, and utilization of best instructors to lead the reviewees in critical problem-solving
techniques. Its branches are in Manila and Cebu.
 Esplana Engineering Review Center, was founded on November 2011 by Engr. Dindo F. Esplana,
a former lecturer of Experts Review Center, and reviewed at Besavilla and Padilla. EERC is the
 brainchild of founder Engr. Esplana in his advocacy to revolutionize the board exam review
system for aspiring civil engineers by discarding obsolete and antiquated methods in teaching.
The branches of EERC are in Manila and Baguio.
 On the early part of the first quarter of 2013, Engr. Ray D. Ramilo founded CE Review Studio.
Presently, CRS is the next youngest review center for CE as of today. They provide CE review
studios in the provinces with primary objective of increasing the passing rates of examinees in
the licensure examinations like no other. Their studios are located in Singapore, Cebu City,
Samar, Tacloban City, Legaspi City, and Davao City.
 Tatualla Review Group – Civil Engineering is established and managed by the Tatualla family.
They started in reviewing and inspiring Nursing graduates for the licensure exams. Proven to be
successful for several years, they are in the stage of expanding TRG services by adding a branch
for Civil Engineering review courses in 2012. It is located in Pasay City.
 Tolentino + Associates Civil Engineering Review Center is the civil engineering review center that
will fully integrate theory, shortcuts and Caltech in all subjects by the founder called the King of
Caltech, Engr. Romeo Tolentino in Manila.
 Tower Civil Engineering Review Center which is also in Manila.
 Inhinyero Review Center is the first CE review center in Pampanga.

Additionally, the fact that the stock market has been slowing during the past year will likely to
take some of the glitter off of the review center market. This will allow the Pasado Review Center to
establish a market presence and prepare to grow during the next period of rapid investment.

MARKET NEEDS

Within the review center market, there are a number of segments, each with distinct objectives,
resources, and needs.
Customer Segmentation Objectives
Not funded Demonstrate viability of
business plan.
Angel funded Gain second round of
funding to start executing
fully.
Venture funded Begin executing against
business plan in pursuit of
revenue and profit.
Resources Needs
Initial ideas. Preliminary Help formulating business
business plan. Few plan to gain investor
people. No budgets. interest in idea. Business
strategy.
Qualified ideas. First level Defined roadmap and
business plan. Few milestones. Creation of
people. Small budgets. initial teaching.
Defined product/services. Marketing deliverables.
Basic teaching. Few Sales strategies.
people. Budgets and Communication. More
objectives to meet. people/resources.

The Pasado Review Center will initially target the funded segments of the market to ensure that
its bills will be paid. As Pasado Review Center becomes more sophisticated, it will consider performing
work for equity.

SERVICE BUSINESS ANALYSIS

Corporate Fit
 The Pasado Review Center is poised to take advantage of the trends identified above. By
combining the marketing and management experience, review center focus, and local presence in key
markets, the Pasado Review Center will help the growing number of civil engineering graduates increase
their chances for passing the board exam.

The Pasado Review Center is from Jecyfer Company designed to help its members in its
maximum capacity. Pasado Review Center is incorporated in Nueva Vizcaya where it will initially focus its
operations. The rapid growing and with its consultants distributed across the nation, PRC can easily
expand its target client base to encompass other regions through the use of existing and tested
technology.

COMPETITION AND BUYING PATTERNS

Competitors to the Pasado Review Center fall into four categories:

1. Segment Rivals: Segment rivals offer the exact same services as the PRC. These firms must focus
exclusively on engineering courses and offer marketing and/or management strategy services.
While the market is certainly large enough to sustain multiple segment rivals, the PRC will
attempt to ensure that its name is well known in all its target markets.

2. Market Rivals: There are a number of available Market rivals who compete with the PRC while
having slightly different business focuses. The PRC will attempt to compete with such firms by
demonstrating its focus on an only engineering review center in Nueva Vizcaya.

3. Generic Rivals: Generic Rivals represent alternative solutions. The main alternative to outsourcing
work to a review center is performing the work at its best and produce numbers of top-notchers
in the country. The PRC will attempt to demonstrate the value of outsourcing marketing and
management work to a review center in order to (1) utilize the core competencies of the review
center and (2) reduce the costs associated with hiring full-time top-notcher employees.

4. Structural Rivals: Structural Rivals are the forces inherent in the market through which the firm
must operate. These forces were described in the Target Market Analysis.

BUSINESS PARTICIPANTS

A number of other firms will compete with the PRC. Due to the size of the available market, it
will be exceptionally difficult for any of these competitors to gain significant market share. However, it
will also be difficult for the PRC to control the market.

The PRC has outlined a three-stage strategy for expanding its services and operations. As PRC
expands its offerings, it will constantly focus on finding new ways to increase the probability of the
graduates in passing the board examination.

1. Expansion of Consulting Team

2. Introduction of New Services
3. Evolution of Business Operations

MARKETING STRATEGY
 The Marketing Mix defined below explains the value that we will bring to our clients as well as
the channels, communication, and costs that will be associated with our services.

POSITIONING STATEMENT

The PRC provides much needed skills and experience to review center programs to help their
businesses start moving in the right direction. Our services are tailored specifically to the unique needs
of the civil engineering graduates of Nueva Vizcaya and focus on practical, short-term actions that can
improve overall business execution. With a shortage of available talent plus the typical budget pressure
usually associated with newly build business, our services provide a cost-effective alternative to
obtaining highly-skilled marketing and strategy resources.

The PRC will position itself as the leading marketing and management review center focusing
exclusively on Nueva Vizcaya schools that offer a civil engineering course.

PRICING STRATEGY

To simplify billing to clients, the PRC will work on a fixed pricing structure. The PRC will
determine the standard pricing structure for each product such as books and services based on hourly
estimates and fees. This will be expressed to the client as per-services fixed price in a quote. Clients can
determine which services they would like to purchase. PRC will charge the quoted price even if we have
underestimated hours, to maintain credibility with budget – conscious customers. Pricing structure will
be based on P350/hour multiplied by the number of hours that it takes our most experienced teacher to
make. If less experienced teachers will participate, it will likely take more time; however, the price of the
service to the client will not change.

In time, PRC may consider a discount to deserving students who will likely to give back credit to
the review center. These are those graduates who exemplary excelled in their college days that
graduated with honors and those who participated in different civil engineering activities and positions
like civil engineering quizzes and the ACES or JPICE presidents. Discounts may vary based on their
participation, awards, and positions.

DISTRIBUTION STRATEGY

Our initial focus will be at Nueva Vizcaya. Nueva Vizcaya has currently no engineering review
centers in the province. Once we secure our first client success, we will expand to other nearby
provinces and to other regions as well where we already have a consulting presence, such as Cagayan,
Isabela, Bicol Region and mountain provinces. Our locations and focus will expand as we add new review
centers to our talent pool.

PROMOTION STRATEGY

We will use a number of relationships to promote the Pasado Review Center.

Through participation in the Nueva Vizcaya development, we will make contacts with key
venture capitalists, review center founders, and review center resources in the area. Once we have
helped our first few clients, we will then explore relationships with local newspapers. Participating in
local chambers of commerce will also help us to get increase exposure. In every method of
communication, we will constantly reinforce our differential advantage: focus on helping the civil
engineering graduates increase their probability to pass and increase the passing percentage of passers
of the different schools in Nueva Vizcaya; practical, actionable, short-term marketing and business
strategy help; and local presence for availability and minimization of costs.