GLOBAL MARKETING

GLOBAL MARKETING
FINAL PROJECT

SUBMITTED TO:
DR. MUHAMMAD ZEESHAN

SUBMITTED BY:
SYED SARAN HASHMI – L1F19MBAM0136

TUBA FAROOQ – L1F19MBAM0101

BABAR YASEEN KHAN – L1F19MBAM0095
QASIM ALI – L1F18MBAM0033

Table of Contents
 GLOBAL MARKETING

PART I: INTRODUCTION TO THE CULTURE OF THE COUNTRY....................................................1

I. Include a short profile of the company, the product to be exported and the country with which
you wish to trade...............................................................................................................................1
Short Profile of Company:.....................................................................................................................................1
MONARK:...............................................................................................................................................................1
Product to be Exported:........................................................................................................................................1
Country to be traded with:....................................................................................................................................1

ii. Brief discussion of Philippines........................................................................................................2

iii. Geographical Setting.....................................................................................................................4
Location.................................................................................................................................................................4
Climate..................................................................................................................................................................4

iv Social Institutions...........................................................................................................................4
a) Family:..........................................................................................................................................................4
a) Education:....................................................................................................................................................5
b) Political System:...........................................................................................................................................6
c) Legal System:...............................................................................................................................................6
d) Organizations...............................................................................................................................................7
e) Business customs and practices:.................................................................................................................7

V. Religion and Aesthetics:.................................................................................................................9

a) Religion & other belief systems:..................................................................................................................9
b) Aesthetics:...................................................................................................................................................9

Vi. Living Condition..........................................................................................................................11

a) Diet and Nutrition:.....................................................................................................................................11
b) Clothing......................................................................................................................................................13
c) Recreation, sports, and other leisure activities:........................................................................................14
d) Healthcare System:....................................................................................................................................15

Vii. Language:...................................................................................................................................16
PART II: THE ECONOMIC ANALYSIS OF THE COUNTRY............................................................17
I. Introduction.............................................................................................................................17
II. Population....................................................................................................................................20
a) Total.................................................................................................................................................................20
b) Distribution of population...............................................................................................................................20

III) Economic statistics and activity...................................................................................................21

A) GNP:................................................................................................................................................................21
b) Per Capita Income in USD:..............................................................................................................................21
c) Income classes and proportion:......................................................................................................................21
d)Minerals and resources:...................................................................................................................................21
e) Modes of transport and rates:........................................................................................................................21
f) Means of communication:...............................................................................................................................22
Telephones..........................................................................................................................................................22
2) Mobile.............................................................................................................................................................22
3) Internet...........................................................................................................................................................22
 GLOBAL MARKETING

g) Principal industries..........................................................................................................................................24
h) International trade statistics:..........................................................................................................................24
I) Trade restrictions:............................................................................................................................................30
j) Labor size and unemployment rate.................................................................................................................31
k) Inflation rate....................................................................................................................................................31

IV. Developments in science and technology...................................................................................32

1) Current technology:........................................................................................................................................32
2)Percentage of GNP Invested in Research & Development:.............................................................................32

V. Channel of distribution:...............................................................................................................32
VI. Media..........................................................................................................................................33
Television:............................................................................................................................................................33

PART III: MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS...........................................34

Introduction (Why this product? Provide justification and appropriateness.)..................................34
II. The Product..................................................................................................................................35
A. Evaluate the product as an innovation as it is perceived by the intended market........................35
Relative Advantage:............................................................................................................................................35
Compatibility:......................................................................................................................................................36
Complexity:..........................................................................................................................................................36
Trialability............................................................................................................................................................36

B. Major Problems and resistance to product acceptance based on the preceding evaluation.........36
III. The Market..................................................................................................................................37
Consumer buying habits:.....................................................................................................................................38
Product-use patterns:..........................................................................................................................................39
Product feature preferences...............................................................................................................................40
Distribution of the Product:................................................................................................................................40
Typical Retail Outlets or Wholesale:...................................................................................................................42
Advertising and Promotion:................................................................................................................................42
Advertising media usually used to reach your target market(s).........................................................................43

1. Retarget our visitor with Facebook ads to increase conversion rates:..........................................43

2. Run a promotion during holidays to increase our sales and capture attention when buyers are
more aware......................................................................................................................................43
3. Create gift guides year-round for our ideal buyer’s life events to inspire them to buy.................44
4. We will get our audience involved to create a community around our brand..............................44
Sales promotions customarily used (sampling, coupons, etc.)...........................................................................45
Pricing strategy:...................................................................................................................................................46

Compare and contrast your product and the competition’s product(s)............................................46

Market size......................................................................................................................................48
1. Estimated industry sales for the planning year...............................................................................................48
2. Estimated sales for your company for the planning Year...............................................................................49

Government participation in the marketplace.................................................................................49

 GLOBAL MARKETING

Agencies that can help you.................................................................................................................................49

Regulations you must follow:..............................................................................................................................50

Strategic elements of competitive advantage..................................................................................53

Conclusion........................................................................................................................................53
 PART I: INTRODUCTION TO THE CULTURE OF THE
COUNTRY

I. Include a short profile of the company, the product to be exported

and the country with which you wish to trade.

Short Profile of Company:

MONARK:
MONARK is the trademark for style and fashion. MONARK is the fastest growing retail chain of
Pakistan with over 30+ outlets all over Pakistan and Middle East. MONARK is serving in the
industry from more than two decades and they are achieving milestones. MONARK always
fascinates the viewers by distinguished patterns, MONARK Company bent its efforts to bringing
colours, designs, fabrics & magic together.
MONARK is one of the leading retailers Of Apparel and Accessories for men from its beginning
as a manufacturer of Casual and Formal Clothing, MONARK has developed into one of the most
leading brands in Pakistan. Whether you want to attend a wedding or attend a party MONARK
is the choice for you. They have recently opened their biggest retail outlet in Amanah Mall
Pakistan.

Product to be Exported:
Most of the products of MONARK. These include T-shirts, jeans, pants, cotton jeans & pants etc

Country to be traded with:

Country - Philippines
Capital - City of Manila
Largest city - Quezon City
Official languages - Filipino and English
Ethnic groups (2015) - 33.7% Visayan, 24.4% Tagalog, 8.4% Ilocano, 6.8% Bicolano and 26.2%
others
Religion - Predominately Christianity (92.2%) Islam (5%) and remaining others.
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Demonym(s) - Filipino (masculine or neutral) and Filipina (feminine)
Government - Unitary presidential constitutional republic
President - Rodrigo Duterte
Vice President - Maria Leonor Robredo
Senate President - Vicente Sotto III
House Speaker - Alan Peter Cayetano
Chief Justice - Diosdado Peralta
Legislature Congress - Upper house (Senate) and Lower house (House of Representatives)
Independence from United States - July 4, 1946
Total Area - 300,000[6][7] km2 (120,000 sq mi) (72nd)
Population - 2015 census 100,981,437 (13th)
Density - 336/km2 (870.2/sq mi) (47th)
GDP (PPP) 2020 estimate – Total - $1.110 trillion (27th)
Per capita GDP - $10,094[10] (112th (2019))
GDP (nominal)2020 estimate – Total - $383 billion (32nd)
Per capita GDP $3,484[10] (125th (2019))
Currency - Philippine peso (₱) (PHP)
Time zone UTC+8 (PST)

ii. Brief discussion of Philippines

The Philippines is named after King Philip II of Spain (1556-1598) and it was a Spanish colony for
over 300 years.
Today the Philippines is an archipelago of 7,000 islands. However, it is believed that during the
last ice age they were joined to mainland Asia by a land bridge, enabling human beings to walk
from there.
The first people in the Philippines were hunter-gatherers. However, between 3,000 BC and
2,000 BC people learned to farm. They grew rice and domesticated animals. From the 10th AD
century Filipinos traded with China and by the 12th Century AD Arab merchants reached the
Philippines and they introduced Islam.

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Then in 1521 Ferdinand Magellan sailed across the Pacific. He landed in the Philippines and
claimed them for Spain. Magellan baptized a chief called Humabon and hoped to make him a
puppet ruler on behalf of the Spanish crown. Magellan demanded that other chiefs submit to
Humabon but one chief named Lapu Lapu refused. Magellan led a force to crush him. However
the Spanish soldiers were scattered and Magellan was killed.
The Spaniards did not gain a foothold in the Philippines until 1565 when Miguel Lopez de
Legazpi led an expedition, which built a fort in Cebu. Later, in 1571 the Spaniards landed in
Luzon. Here they built the city of Intramuros (later called Manila), which became the capital of
the Philippines. Spanish conquistadors marched inland and conquered Luzon. They created a
feudal system. Spaniards owned vast estates worked by Filipinos. Along with conquistadors
went friars who converted the Filipinos to Catholicism. The friars also built schools and
universities. Spanish colony in the Philippines brought prosperity - for the upper class anyway!
Each year the Chinese exported goods such as silk, porcelain and lacquer to the Philippines.
From there they were re-exported to Mexico. The years passed uneventfully in the Philippines
until in 1762 the British captured Manila. They held it for two years but they handed it back in
1764 under the terms of the Treaty of Paris, signed in 1763.
In 1872 there was a rebellion in Cavite but it was quickly crushed. However nationalist feeling
continued to grow helped by a writer named Jose Rizal (1861-1896). He wrote two novels Noli
Me Tangere (Touch me Not) and El Filibusterismo (The Filibusterer) which stoked the fires of
nationalism. In 1892 Jose Rizal founded a movement called Liga Filipina, which called for reform
rather than revolution. As a result, Rizal was arrested and exiled to Dapitan on Mindanao.
Meanwhile Andres Bonifacio formed a more extreme organisation called the Katipunan. In
August 1896 they began a revolution. Jose Rizal was accused of supporting the revolution,
although he did not and he was executed on 30 December 1896. Yet his execution merely
inflamed Filipino opinion and the revolution grew. Then in 1898 came war between the USA
and Spain. On 30 April 1898 the Americans defeated the Spanish fleet in Manila Bay.
Meanwhile Filipino revolutionaries had surrounded Manila. Their leader, Emilio Aguinaldo
declared the Philippines independent on 12 June. However, as part of the peace treaty Spain
ceded the Philippines to the USA. The Americans planned to take over.
War between American forces in Manila and the Filipinos began on 4 February 1899. The
Filipino-American War lasted until 1902 when Aguinaldo was captured.
In 1935 the Philippines were made a commonwealth and were semi-independent. Manuel
Quezon became president. The USA promised that the Philippines would become completely
independent in 1945. However in December 1941 Japan attacked the US fleet at Pearl Harbor.
On 10 December 1941 Japanese troops invaded the Philippines. They captured Manila on 2
January 1941. By 6 May 1942 all of the Philippines were in Japanese hands. However American
troops returned to the Philippines in October 1944. They recaptured Manila in February 1945.
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The Philippines became independent on 4 July 1946. Manuel Roxas was the first president of
the newly independent nation.
Today the Philippines is still poor but things are changing. Since 2010 the Philippine economy
has grown at about 6% a year. Today there is reason to be optimistic for the future. Today the
population of the Philippines is 103 million.

iii. Geographical Setting

Location
Philippines, island country of Southeast Asia in the western Pacific Ocean. It is an archipelago
consisting of some 7,100 islands and islets lying about 500 miles (800 km) off the coast of
Vietnam. Manila is the Capital, but nearby Quezon City is the country’s most-populous city.
Both are part of the National Capital Region (Metro Manila), located on Luzon, the largest
island. The second largest island of the Philippines is Mindanao, in the southeast.

Climate
Using temperature and rainfall as bases, the climate of the country can be divided into two
major seasons:
1) The rainy season, from June to November; and
2) The dry season, from December to May. The dry season may be subdivided further into (a)
the cool dry season, from December to February; and (b) the hot dry season, from March to
May.

iv Social Institutions.
a) Family:
Family is considered to be the foundation of social life for most Filipinos. The nuclear family
is the core family unit, however bonds are often tight knit among extended family
members. Indeed, people may be encouraged to have a relationship with their aunts and
uncles that is just as strong as the relationship with their parents. Close familial
relationships often go beyond one’s genetic connections or bloodlines to incorporate
distant relatives, close neighbors or friends. For example, it is common to hear people refer
to distant relatives or non-relatives with familial terms such as ‘Tita’ (aunt), ‘Tito’ (uncle),
‘Lola’ (grandmother) and ‘Lolo’ (grandfather). One instance is when a grandchild refers to
their grandparent’s friend or cousin as Lola or Lolo.

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 1) Dynamics of Family
1) Parental Roles: Most Filipino parents are perceived as laidback and calm, whose sole
source of joy are their children. Husband and wife share an equal relationship, with the
former commonly referred to as haliging tahanan or literally, “pillar of the house,” and
the latter commonly referred to as ilaw ng tahanan or literally, “light of the house.

Traditionally, the father is the breadwinner who provides for everyone, while the
mother focuses on running the household, homemaking, and caring for the children.
Nowadays, however, more and more mothers are contributing to the family’s income by
working full time or part time. Others even leave home and work overseas to augment
the family income, thus providing an opportunity for a greater home and for children to
obtain higher education in more exclusive schools.

2) Marriages: In the Philippines, dating often comes in stages, beginning with courtship.
Typically, a man will try to impress a female by courting her. If the woman considers the
man to be a good suitor, they will continue dating. Individuals have a significant level of
freedom in terms of choosing marriage partners, although the choice of a spouse may
be influenced by the preferences of the family. In some families, it is expected for the
prospective partner to gain approval of their potential in-laws. However, in urban areas,
dating and marriage practices tend to be less conservative and are becoming more
influenced by the West. Recorded number of marriages in the Philippines from January
to September 2019 were 321,039.

a) Education:
Education in the Philippines is offered through formal and non-formal systems. Formal
education typically spans 14 years and is structured in a 6+4+4 system: 6 years of
primary school education, 4 years of secondary school education, and 4 years of higher
education, leading to a bachelor’s degree. This is one of the shortest terms of formal
education in the world.

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 In the Philippines, the academic school year begins in June and concludes in March, a
period that covers a total of 40 weeks. All higher education institutions operate on a
semester system—fall semester, winter semester and an optional summer term.

The education system is administered and overseen by the Department of Education, a

federal department with offices in each of the country’s 13 regions.

1) Literacy Rate:
As per World Bank report the literacy rate of the Philippines as of 2015 is 98%.

b) Political System:
The Philippines political system takes place in an organized structure of a presidential,
representative, and democratic republic wherein the president is both the head of
government and the head of state within a multi-party system. This system has three co-
dependent branches: the executive branch (the law-enforcing body), the legislative branch
(the law-making body), and the judicial branch (the law-interpreting body). Below are the
full details on the three branches with their corresponding Philippine government officials.

1) Political Structure: The Philippines has a multi-party political structure wherein more
than one party takes part in election to form a government.
2) Stability of Government: Political stability index (-2.5 weak; 2.5 strong) Philippines
from 1996 to 2018. The average value for the Philippines during that period was -1.24
points with a minimum of -1.78 points in 2008 and a maximum of -0.25 points in 1998.
The latest value from 2018 is -1.12 points. This means that political structure is quite
unstable and has always been that way.

c) Legal System:
Philippines has mixed legal system of civil, common, Islamic (sharia), and customary law.

1) Organization of the judiciary system: The Philippine Judiciary is a hierarchical

organization consisting of four levels, with the Supreme Court at the top tier
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 exercising administrative supervision over all courts and court personnel and
wielding jurisdiction to “review, revise, reverse, modify, or affirm on appeal or
certiorari, as the law or the Rules of Court may provide, final judgments or orders of
lower courts” cases specified in Article VIII, section 5(2) of the 1987 Constitution.
2) Code, common, socialist, or Islamic-law country: It has a mixed system of laws
consisting of civil, common, Islamic and customary law. The civil law operates in
areas such as family relations, property, succession, contract and criminal law while
statutes and principles of common law origin are evident in such areas as
constitutional law, procedure, corporation’s law, taxation, insurance, labor relations,
banking and currency.

d) Organizations
i) Social classes: Three primary social classes exist in the Philippines: the low-income
class, the middle-income class, and the high-income class. These are further divided
into Poor (less than official poverty threshold), Low-Income class (between poverty
line and twice the poverty line), Lower-middle income class (between 2 and 4 times
the poverty line), Middle-middle income class (between 4 and 7 times the poverty
line), Upper-middle income class (between 7 and 12 times the poverty line), Upper
income class (between 12 and 20 times the poverty line) and Rich (at least 20 times
the poverty line).
ii) Race, ethnicity and subcultures: Filipinos belong to the brown race and are
considered to be Asian ethnicity but many believe them to be the black people of
Asians. Based on ethnicity majority of the people in the Philippines are of
Austronesian descent who migrated from Taiwan during the Iron Age. They are
called ethnic Filipinos. The largest Filipino ethnic groups include the Tagalog,
Cebuano, Ilocano, Bicolano, Kapampangan, Maranao, Maguindanao, and Tausug.
There are five Sama sub cultural communities in the Philippines. These are the Sama
Simunul, Sama Balimbing, Sama Tawi-Tawi, Sama Sibutu and Sama Ubian.

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 e) Business customs and practices:
The Philippines business culture is a blend of Western and Eastern influences owing to
the country’s location and history. Hiya is an important concept that defines social
conduct in the Philippines, including in the work environment. Translated as “shame” or
“shyness” and likened to “losing face”, hiya is often a feeling avoided by Filipinos.
Filipinos believe in Pakikisama, which is roughly defined as a concept of smooth
relationship and avoidance of confrontation.

Personal relationships are crucial for entertaining business relations. They are an
important aspect of negotiations and necessary to develop close ties with Filipino
business contacts. First Contact is vital. It is better to be introduced by a mutual friend
or an associate, especially to have access to higher ranking contacts.
Some other practices are:
 Time Management - Filipinos have a rather flexible sense of time. Meetings often start
later than agreed. Nevertheless, foreigners are expected to arrive on time and are most
likely to be kept waiting.
 Greetings and Titles: Handshakes are the most common form of greeting, both for
meeting someone from the same sex and the opposite sex. They are usually gentle and
not prolonged. Eye contact should not be too intense. Titles are very important,
especially during first meetings, and it is appropriate to address people directly by using
their professional title or Mr., Mrs., or Miss, followed by the surname. However, it is
also common to move to first name terms or nicknames commonly used by Filipinos.
 Gift Policy: Gift giving is not necessarily expected but appreciated after a first meeting. A
small gift (ideally with the company's logo) is an appropriate gift after an initial contact.
Gifts should be of good quality, but inexpensive, and nicely wrapped.
 Dress Code: Conservative dress is expected; however, the degree of formality differs
depending on the workplace. Dark colored suits with shirts and ties are recommended
for men especially when working in larger cities and meeting high ranking associates.
Women are expected to wear well-tailored conservative business suits or dresses and

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 blouses. Lighter colors are also appropriate. Business casual attire or even informal
clothing are accepted outside the main cities.
 Business Cards: Business cards are usually exchanged after a first meeting. While there
is not an exact protocol surrounding the exchange, it is recommended to give and
receive business cards with both hands.
 Meetings Management: Business meetings usually start with some small talk, which can
involve personal matters (family, marriage, etc.). The initial meeting is usually reserved
for getting to know the foreign counterpart rather than delving into direct negotiations.
It is important to begin with a clear introduction to what you plan on discussing during
the meeting. Other participants may not contribute or communicate actively at this
point.

V. Religion and Aesthetics:

a) Religion & other belief systems:
The Philippines proudly boasts to be the only Christian nation in Asia. More than 86
percent of the population is Roman Catholic, 6 percent belong to various nationalized
Christian cults, and another 2 percent belong to well over 100 Protestant denominations. In
addition to the Christian majority, there is a vigorous 4 percent Muslim minority,
concentrated on the southern islands of Mindanao, Sulu, and Palawan. Scattered in isolated
mountainous regions, the remaining 2 percent follow non-Western, indigenous beliefs and
practices. The Chinese minority, although statistically insignificant, has been culturally
influential in coloring Filipino Catholicism with many of the beliefs and practices of
Buddhism, Taoism, and Confucianism.

Christianity is the most prominent as Philippines boasts to be the only Christian nation in
Asia.

b) Aesthetics:
The branch of Philosophy which deals with questions of beauty and artistic taste.

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 I) Visual Arts: The Philippines is home to a long and rich history of excellence in visual arts.
This tradition started as early as the 19th century with Damian Domingo, also known as the
Father of Filipino Painting, who was the first Filipino to paint a self-portrait. He was followed
by greats such as Juan Luna, who painted the world-renowned Spoliarium, and Fabián de la
Rosa, uncle and mentor to Fernando Amorsolo.

Mastery of the visual arts has been passed down through the decades, and the Philippine
government has sought to reward that through the Order of National Artists. The Order of
National Artists, also known as Orden ng mga Pambansang Alagad ng Sining, is the highest
national recognition given to Filipinos who have made significant contributions to the
growth and development of arts in the Philippines. Jointly administered by the National
Commission for Culture and the Arts (NCCA) and the Cultural Center of the Philippines
(CCP), it’s an honor conferred by the President of the Republic based on recommendations
by both institutions.

Paintings, Sculptures and Calligraphy has always been a part of Filipino history.

The widely known names are Fernando Amorsolo is known for his most famous pieces that
include Maiden in a Stream (1921), The Mestiza (1943), and Planting Rice (1946).

Guillermo Tolentino for his masterpiece, the Bonifacio Monument in Caloocan (1933)

The Philippines has numerous indigenous scripts collectively called as Suyat.

Music: Music of the Philippines (Filipino: Musika ng Pilipinas; Spanish: Música de Filipinas)
include musical performance arts in the Philippines or by Filipinos composed in various
genres and styles. The compositions are often a mixture of different Asian, Spanish, Latin
American, American, and indigenous influences. Indigenous music which includes folk music
(Notable folk song composers include the National Artist for Music Lucio San Pedro, who
composed the famous "Sa Ugoy ng Duyan" that recalls about the loving touch of mother to
her child) and gong music (Philippine gong music can be divided into two types: the flat
gong commonly known as gangsà and played by the groups in the Cordillera region and the
bossed gongs played among the Islam and animist groups in the southern Philippines).
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 Hispanic Influenced music: Spain ruled the Philippines for 333 years, and Hispanic influence
in Filipino culture is ubiquitous. This influence can be easily seen in folk and traditional
music, especially in the Tagalog and Visayan regions, where Spanish influence was greatest.

Hispanic Influenced Music includes Rondalla music (traditional string orchestra comprising
two-string, mandolin-type instruments such as the banduria and laud; a guitar; a double
bass; and often a drum for percussion), Harana & Kundiman (are popular lyrical songs
dating back to the Spanish period, and are customarily used in courtship rituals), Tinikling (is
a dance from Leyte which involves two individual performers hitting bamboo poles, using
them to beat, tap, and slide on the ground, in co-ordination with one or more dancers who
steps over and in between poles) and Cariñosa (is the national dance and is part of the
María Clara suite of Philippine folk dances).

Popular music (original Filipino music): Original Filipino music, now more commonly
termed original Pinoy music or OPM, originally referred only to Philippine pop songs,
particularly ballads, such as those popular after the collapse of its predecessor, the Manila
sound of the late 1970s. Currently, OPM is used as a catch-all term for popular music
composed and performed by Filipino musicians and singers.

OPM include:

 Pop Music
 Choir Music
 Rock Music
 Hip-hop

Other Genres:

 Jazz
 Novelty Pops

Other than this Filipinos are greatly influenced by J-pop and K-pop. Filipinos are known for
copying Koreans. They also listen to English songs from the west.

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Vi. Living Condition.
a) Diet and Nutrition:
Food is a huge part of Filipino culture—in fact, the local word for ‘Hello,’ is ‘Have you
eaten?’ Filipino food is somewhat similar to Indonesian and Malaysian food but often has a
distinctive sour taste. Chinese and Spanish influenced food are featured most prominently
during holidays and feasts.

The typical Philippine diet revolves mainly around the local foods, especially vegetables.
Pork and seafood, and rice and noodles. Filipinos are also very familiar with Western foods,
especially fast foods, and the diet of most today is a mixture of all these influences.
Westerners familiar with Spanish-influenced cuisine will recognize the Latin-based menudo-
type stews, the Cuban-style pork dishes, the tapa-like appetizers, but all with native
ingredients of Asian and Polynesian origin. On top of this, add the American hamburger, and
other types of fast food (which, in all fairness, are found most everywhere around the
world), and you have a sense of Filipino cooking. There are three principles of Filipino
cooking: never cook any food by itself, fry with garlic in olive oil or lard, and foods should
have a sour-cool-salty taste.

The nutritional icon for the Philippines is the six-sided diamond star which divided into six
groups:

1) Leafy green and yellow vegetables

2) Citrus fruits, tomatoes, cabbage and other vitamin-C-rich fruits and vegetables

3) Succulent vegetables and fruits

4) Milk, cheese, butter, and other fat-rich foods

5) Meat, poultry, fish, eggs, dried beans, mungo and other sources of protein

6) Rice and other grains. The message conveyed by the star is that food from each group
should be consumed.

i) Meat and vegetable consumption rates:

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 The leading meat products consumed in the country are chicken and pork based. In 2018,
the pork consumption per capita in the Philippines was about 15.6 kilograms per person,
while 12.8 kilograms of poultry meat per capita were consumed per person.

The per capita consumption of vegetables has risen every year since 2012. According to a
recent survey conducted by Rakuten Insight, the majority of the respondents stated
consuming plant-based food products as an alternative to animal-based food products.
Meanwhile, only around 12 percent were not familiar with plant-based food products.

ii) Typical meals:

A typical Filipino meal consists of a main seafood or meat dish served with soup, vegetables
and rice, with tea or coffee. Chicken often has bones in it. Fish often come with the heads
attached. In much of the Philippines breakfast, lunch and dinner are same: Filipino-style rice
with some pieces of meat and vegetables in it.

iii) Malnutrition rates:

Filipino children are more malnourished than ever. The Philippine chronic malnutrition rate
among children aged 0-2 was at 26.2%, the highest in 10 years, according to a recent survey
by the Food and Nutrition Research Institute (FNRI) of the Department of Science and
Technology (DOST).

iv) Foods available:

All sorts of foods are available in the Philippines due to globalization and having vast
amount of ethnicities in the country.

b) Clothing.
i. National dress:

The barong tagalog, more commonly known simply as barong (and occasionally baro), is an
embroidered long-sleeved formal shirt for men and a national dress of the Philippines.

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 Barong tagalog is as well used by women. But there are many much more feminine and
beautiful female clothing.

ii. Types of Clothing worn at work:

Dark colored suits with shirts and ties are recommended for men especially when working
in larger cities and meeting high ranking associates. Women are expected to wear well-
tailored conservative business suits or dresses and blouses. Lighter colors are also
appropriate. Business casual attire or even informal clothing are accepted outside the main
cities. Other than that it is dependent on the place where you’re working.

If you work at a pizza parlor, grocery store, flower shop, restaurant etc. it is not that hard to
assume that you can wear whatever you want as long as it is not appropriate or if these
places have a special attire that they want you to wear then you have to wear that. For e.g.
McDonald’s have their own attire that employees have to wear according to position.

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 c) Recreation, sports, and other leisure activities:
Consisting of more than 7,000 islands, the Philippines is a real treasure that you can explore
during your stay there. In fact, whether you are working or you have retired in the
archipelago, you will have plenty of free time to enjoy different leisure activities. To name a
few:

 Shopping
 Amusement parks
 Museums
 Nightlife
 Beaches
 Water sport
 Diving
 Hiking and Camping
 Rice Terraces

Popular sports of the Philippines:

Football (Soccer), basketball, boxing
Traditional or Regional Sports of the Philippines:
 Arnis (martial art) - a martial art of Philippines which emphasizes weapon based fighting.
 Sikaran — a form of kick boxing from the Philippines, which utilizes only the feet, the
hands are only used for blocking.
 Dumog — a Filipino style of wrestling while standing upright.
 Sipa - A sport from the Philippines in which the aim is to kick the ball to the other side of
the net on to the opponent’s side without it touching the ground.

E-sports is widely popular among the masses of Philippines as many e-sports events are
held in the Philippines.

15
 d) Healthcare System:
Overall, the healthcare system in the Philippines is of a high standard. Filipino medical staff
are expertly trained, but the facilities may not be as impressive as those found in high-end
US or European hospitals.

The quality of the Philippines’ state-subsidized public healthcare, although good, varies
widely between rural and urban areas. Private healthcare in the Philippines provides much
more consistent care and facilities tend to be better equipped than public ones.

Doctors and nursing staff in public hospitals are highly proficient, however public healthcare
in the Philippines faces some limitations. Despite having achieved universal healthcare, the
Philippines still struggles with unequal access to medical care.

Private healthcare services are well-established and growing in the Philippines. Private
services are considered to be expensive by locals, but are relatively cheap by most expat
standards. The relative affordability of private healthcare can be seen in the increasing
popularity of the Philippines as a medical tourism destination.

There are numerous pharmacies in the Philippines and many 24-hour pharmacies can be
found in major cities and attached to most hospitals. 911 is the general national emergency
number in the Philippines.

The quality of ambulance services differs significantly and this problem is compounded by
the lack of strict policies governing how emergency services operate. This may result in slow
response times and poor pre-hospital treatment.

Private ambulances generally have highly proficient staff and better equipment while also
promising faster response times. Private ambulance services are often secured through
monthly subscriptions.

16
 Vii. Language:
The two official languages of the Philippines are Filipino and English. Filipino is the national
language, and the official status of English is a holdover from its time as a U.S. territory
between the years of 1898 and 1946.

The Philippines were under Spanish colonial rule for 300 years beginning in 1565, and
during this time, Spanish was the official language. Spanish actually became an official
language again, together with English, according to the Constitution of 1935, but it was
demoted to an “optional and voluntary language” in 1987.

Out of these, 10 languages account for the language over 90 percent of Filipino people
speak at home. These languages are Tagalog, Bisaya, Cebuano, Ilocano, Hiligaynon Ilonggo,
Bicol, Waray, Maguindanao, Kapampangan and Pangasinan.

Immigrant populations have also affected the linguistic landscape of the Philippines. Major
immigrant languages include Sindhi (20,000 speakers, according to Ethnologue), Japanese
(2,900), Indonesian (2,580), Hindi (2,420) and German (960), as well as Korean, Arabic,
Vietnamese, Malay, Tamil and various types of Chinese.

i. Official Language: In the Philippines, due to a history of multiple settlements, more

than 170 languages are spoken and only 2 of them are official in the country: Filipino
and English.
ii. Spoken vs. Written: With very little written, not much is known about this language
for the history prior to the arrival of the Spanish during the sixteenth century.

The language of the Philippines was originally written in the Baybayin script, which in turn is
similar to those used in Java, Bali and Sumatra. (For those not so familiar with these
languages, they date back to the Brahmi inscriptions in India in the third century BC).

The vocabulary of this language is composed of mostly Tagalog, around 80–90%, and the
remaining 10–20% is a mixture of English, Spanish, and other Philippine Languages such as

17
 Cebuano, etc. However, when it comes to grammar structure, it is not really different from
Tagalog. The language is written from left to right horizontally.

PART II: THE ECONOMIC ANALYSIS OF THE

COUNTRY

I. Introduction
The Philippine economy is the 34th largest in the world, with an estimated 2018 gross
domestic product (nominal) of $371.8 billion. Primary exports include semiconductors and
electronic products, transport equipment, garments, copper products, petroleum products,
coconut oil, and fruits.[8] Major trading partners include the United States, Japan, China,
Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand. Its
unit of currency is the Philippine peso.

A newly industrialized country, the Philippine economy has been transitioning from one
based upon agriculture to an economy with more emphasis upon services and
manufacturing. Of the country's total labor force of around 40.813 million, the agricultural
sector employs 30% of the labor force, and accounts for 14% of GDP. The industrial sector
employs around 14% of the workforce and accounts for 30% of GDP. Meanwhile, the 47% of
workers involved in the services sector are responsible for 56% of GDP.

The unemployment rate as of 14 December 2014, stands at 6.0%. Meanwhile, due to lower
charges in basic necessities, the inflation rate eases to 3.7% in November. Gross
international reserves as of October 2013 are $83.201 billion. The Debt-to-GDP ratio
continues to decline to 38.1% as of March 2014 from a record high of 78% in 2004. The
country is a net importer but it is also a creditor nation. The 1997 Asian Financial Crisis
affected the economy, resulting in a lingering decline of the value of the peso and falls in
the stock market. The extent it was affected initially was not as severe as that of some of its
Asian neighbors. This was largely due to the fiscal conservatism of the government, partly as

18
 a result of decades of monitoring and fiscal supervision from the International Monetary
Fund (IMF), in comparison to the massive spending of its neighbors on the rapid
acceleration of economic growth. There have been signs of progress since. In 2004, the
economy experienced 6.4% GDP growth and 7.1% in 2007, its fastest pace of growth in
three decades. Average annual GDP growth per capita for the period 1966–2007 still stands
at 1.45% in comparison to an average of 5.96% for the East Asia and the Pacific region as a
whole. The daily income for 45% of the population of the Philippines remains less than $2.

The economy is heavily reliant upon remittances from overseas Filipinos, which surpass
foreign direct investment as a source of foreign currency. Remittances peaked in 2010 at
10.4% of the national GDP, and were 8.6% in 2012 and in 2014, Philippines total worth of
foreign exchange remittances was US$28 billion. Regional development is uneven, with
Luzon Metro Manila in particular gaining most of the new economic growth at the expense
of the other regions, although the government has taken steps to distribute economic
growth by promoting investment in other areas of the country. Despite constraints, service
industries such as tourism and business process outsourcing have been identified as areas
with some of the best opportunities for growth for the country. The Business Process
Outsourcing (BPO) industry is composed of eight sub-sectors, namely, knowledge process
outsourcing and back offices, animation, call centers, software development, game
development, engineering design, and medical transcription. The IT-BPO industry plays a
major role in the country's growth and development. In 2008, the Philippines was reported
as having eclipsed India as the main center of BPO services in the world.

The Department of Science and Technology is the governing agency responsible for the
development of coordination of science and technology-related projects in the Philippines.
Research organizations in the country include the International Rice Research Institute, an
international independent research and training organization established in 1960 with
headquarters in Los Banos, Laguna, which focuses on the development of new rice varieties
and rice crop management techniques.

19
 The Philippines bought its first satellite in 1996. In 2016, the Philippines first micro-satellite,
Diwata-1 was launched aboard the US Cygnus spacecraft. The Philippines has a
sophisticated cellular phone industry and a high concentration of users. Text messaging is a
popular form of communication and, in 2007, the nation sent an average of one billion SMS
messages per day. Over five million mobile phone users also use their phones as virtual
wallets, making it a leader among developing nations in providing financial transactions
over cellular networks. The Philippine Long Distance Telephone Company commonly known
as PLDT is the leading telecommunications provider. It is also the largest company in the
country. The National Telecommunications Commission is the agency responsible for the
supervision, adjudication and control over all telecommunications services throughout the
country. There are approximately 383 AM and 659 FM radio stations and 297 television and
873 cable television stations. On March 29, 1994, the country was connected to the Internet
via a 64 kbit/s connection from a router serviced by PLDT to a Sprint router in California.
Estimates for Internet penetration in the Philippines vary widely ranging from a low of 2.5
million to a high of 24 million people. Social networking and watching videos are among the
most frequent Internet activities. The Philippine population is the world's top internet user.

The travel and tourism sector is a major contributor to the economy, contributing 7.1% to
the Philippine GDP in 2013 and providing 1,226,500 jobs or 3.2 percent of total
employment. 2,433,428 international visitors arrived from January to June 2014 up by
2.22% in the same period in 2013. South Korea, China, and Japan accounted for 58.78%
while the Americas accounted for 19.28% and Europe 10.64%. The island of Boracay,
popular for its beaches, was named as the best island in the world by Travel & Leisure in
2012. The Philippines is also one of the favorite retirement destinations for foreigners due
to its warm climate all year round, beaches and low cost of living.

II. Population
a) Total
1) Population

The total population of Philippines is 109,581,078.

20
 2) Growth rate is 1.72%

3) 20.177 births per 1000 people

4) 5.2 deaths in 1000 people

b) Distribution of population
1) Age

 0-14 years: 33.07% (male 17,870,983 /female 17,151,096)

 15-24 years: 19.17% (male 10,360,704 /female 9,934,798)
 55-64years: 37.11% (male 19,987,460 /female 19,312,673)
 55-64 years: 6.04% (male 2,932,572 /female 3,462,832)
 65 years and over: 4.61% (male 2,001,964 /female 2,878,299) 

2) Gender:

In the Philippines, 50.4 percent are males and 49.6 percent are female. This resulted in a
sex ratio of 102 males per 100 females.

3) Geographic Area:

Currently, 47.1 % of the population of the Philippines is urban (50,971,408 people).

4) Ethnic groups:

Tagalog 24.4%, Bisaya/Binisaya 11.4%, Cebuano 9.9%, Ilocano 8.8%, Hiligaynon/Ilonggo

8.4%, Bikol/Bicol 6.8%, Waray 4%, other local ethnicity 26.1%, other foreign ethnicity .1%

III) Economic statistics and activity

A) GNP:
Gross National Product was reported at 97.165 USD bn in Mar 2020. This records a
decrease from the previous number of 117.514 USD bn for Dec 2019.

21
 b) Per Capita Income in USD:
3,484.9

c) Income classes and proportion:

The latest Family Income and Expenditure Survey by the Philippine Statistics Authority (PSA)
shows that majority (58.4%) of Filipinos belong to the low-income class, while the middle
class comprises around 40% of the population. Only 1.4% fall in the high-income class.

d)Minerals and resources:

It is estimated that the Philippines is home to more than 21.5 billion metric tons (MT) of
metal deposits and 19.3 billion MT of nonmetal mineral deposits. The natural resources of
the Philippines include copper, timber, nickel, petroleum, silver, gold, cobalt, and salt.

e) Modes of transport and rates:

Busses 23000 rate: 4-9 pesos

Taxis 36000 rate: 20 pesos per km

Jeepneys 217000 rate: 8 pesos standard rate

Tricycles 90000 rate: 10-200 pesos

f) Means of communication:
Telephones
1) Telephones - main lines in use

 6.782 million (2011)

 9 international gateways; satellite earth stations - 3 Intelsat (1 Indian Ocean and

2 Pacific Ocean); submarine cables to Hong Kong, Guam, Singapore, Taiwan, and Japan.
 Globe Telecom is now challenging PLDT in both the fixed and wireless markets.
 However, the fixed line market in the Philippines remains underdeveloped.

Calls from landlines are typically charged up to 16p per minute. Many providers charge a

23p call set-up fee (or 'connection charge'), but this can vary. Call charges are dependent on

22
 the time of day, and most providers offer call packages that allow calls free of charge at
certain times of the day.

2) Mobile
SIMs in use

 103 million

Mobile prefixes used

Mobile Numbers are coded base on network providers ranging from 0800 to 0999, and
international code for Philippines replace the zero to make an international call to the
Philippines that would make it +63800 to +63999.
Globe Mobile 15.9¢ 62 min

Smart Mobiles 15.9¢ 62 min

3) Internet
In the Philippines, there is barely any growth in the fixed broadband market. This is
because most Filipinos use mobile phones and very few have fixed lines (landlines).
Mobile broadband use is more popular in the country and fixed broadband penetration in
the Philippines is still low. Since market leader PLDT is now offering fiber-based services
and will soon be introducing hybrid technology such as G.fast, it is pushing its
competitors like Globe Telecom to match them. In general, Internet service in the
Philippines is still too unaffordable for majority of the population. The prices are declining
but the market continues to struggle against low entry level packages.

Top Internet Service Providers (ISPs) in the Philippines:

 Converge ICT Solutions: One of the fastest growing ISPs, Converge has established itself
as an excellent option when it comes to high-speed internet.

 One SKY: Being the country’s top and longest operating cable TV provider allowed the
company to expand its reach to internet services. They bundled up their cable offerings
23
 with broadband services and came up with packages that provide plenty of value to
their subscribers.

4mb ₱699 20gblte

 PLDT: The telco giant has been around for decades. From dial-up connections to DSL,
they are pioneers when it comes to providing internet services in the Philippines.

PLAN 999 1 Mbps Internet ₱999

 Globe Broadband: The Ayala-owned communications company is Smart’s (under PLDT)
long-time rival and the competition continues in the land of broadband internet.

1 Mbps Internet ₱999 20 GB lite

 RISE: RISE stands for Responsible Internet Sustainability Effort, a newcomer ISP that
focuses on bringing fiber internet to enterprises.

Their cheapest plan is at P10, 000 for a 50Mbps connection with a guaranteed minimum
speed of 5Mbps.
Internet Users are 76 Million

g) Principal industries
What proportion of the GNP does each industry contribute?

Years Agriculture Industry Services

2018 9.28% 30.75% 59.97%
2017 9.66% 30.43% 59.9%
2016 9.66% 30.75% 59.6%
2015 10.26% 30.9% 58.84%
2014 11.33% 31.33% 57.34%
2013 11.25% 31.12% 57.63%
2012 11.83% 31.25% 56.92%
2011 12.72% 31.35% 55.93%
2010 12.31% 32.57% 55.12%
2009 13.08% 31.71% 55.21%

24
 2008 13.24% 32.87% 53.88%
h) International trade statistics:
1) Exports:

Major Export Commodities: Semiconductors and electronic products, transport equipment,

garments, copper products, petroleum products, coconut oil, fruits .

 The total value of exports (FOB) is US$ 67,488 million.

2) Imports:

Major import Commodities: Electronic products, mineral fuels, machinery and transport

equipment, iron and steel, textile fabrics, grains, chemicals, plastic .

 The total value of imports (CIF) is US$ 115,038 million.

At the HS6 digit level, 2,865 products are exported to 203 countries and 4,335 products are
imported from 194 countries.

Balance-of-payments situation:

The BOP position for full year 2019 recorded a surplus of US$7.8 billion, a turnaround from the
US$2.3 billion deficit registered in the same period last year. This positive outcome was the
result of the significant decline in the current account deficit, which more than offset the
reduction in net inflows (i.e., net borrowing by residents from the rest of the world) in the
financial account.

The current account recorded a markedly lower deficit as a result mainly of the decline in the
trade in goods deficit together with the increases posted in net receipts of trade in services, and
primary and secondary income. Meanwhile, the lower net inflows in the financial account was
brought about largely by the declines in net inflows in the other investment and direct
investment accounts despite the reversal of the portfolio investment account to net inflows
during the period.

25
*Positive balance in the financial account indicates net outflows while a negative balance
indicates net inflows.

**The overall BOP position, therefore, is equal to the current account plus the capital account
minus the financial account plus net unclassified items.

Current account:

The current account in 2019 registered deficit of US$464 million (0.1 percent of GDP), about 95
percent lower than the US$8.8 billion deficit in 2018 owing largely to lower trade in goods
deficit combined with higher net receipts in the trade in services, and in the primary and
secondary income accounts.

The trade in goods deficit for the full year 2019 dropped by 8.8 percent to US$46.5 billion as a
result of the combined effect of the increase in exports of goods and the decrease in imports of
goods.

26
Exports of goods expanded by 2.7 percent to US$53.4 billion from US$52 billion last year on
account of increased shipments of manufactures (2.1 percent), mainly electronic products
which posted an 8.9 percent increase to reach US$23.2 billion in 2019 from US$21.3 billion a
year ago.

The overall growth in total exports of goods was likewise driven by shipments of fruits and
vegetables, and mineral products, which rose by 38.9 percent and 10.8 percent, respectively.
Increased shipments of fruits and vegetables was on account of the 39.7 percent expansion in
exports of bananas following continued demand from Japan, China and South Korea while
those of mineral products was boosted by higher shipments of gold due to increasing world
market price. These gains more than offset the decreased shipments of petroleum, and coconut

Imports of goods decreased to US$99.8 billion for full year 2019, 3 percent lower than the
US$103 billion the same period a year ago. The decline was due mainly to lower importation of
raw materials and intermediate goods (12.8 percent), particularly manufactured goods, inedible
crude materials, and materials and accessories for the manufacture of electronics. Imports of
mineral fuels and lubricant likewise dropped (8.7 percent) on account of reduced purchases of
petroleum crude (33.5 percent) as a result of the decline in both its import volume and
international market price.

Import volume of petroleum crude in 2019 dropped by 26.5 percent to 61 million barrels from
83 million barrels in 2018. However, the downturn posted in these commodity groups were
partially tempered by increased imports of capital goods (6 percent), mainly telecommunication
equipment and electrical machinery; and consumer goods (3.7 percent), mostly miscellaneous
manufactures

Net receipts in the trade in services account totaled US$13 billion in 2019, higher than the
US$11.6 billion net receipts posted in the previous year. The 12.4 percent improvement
stemmed largely from lower net payments of travel and transport services combined with
higher net receipts in manufacturing services. These gains more than negated the

27
i) reversal of the telecommunication services to net payments; ii) increased net payments in
financial, and insurance and pension services; and iii) lower net receipts in technical, trade-
related and other business services.

The primary income account registered net receipts of US$5.3 billion in 2019, higher than the
US$3.8 billion net receipts in 2018. The 41.4 percent rise was attributed to lower net payments
of investment income, stemming from lower dividends paid to foreign direct investors (18.2
percent) along with higher interest receipts on intercompany borrowings (34.4 percent) and on
reserve assets (25.6 percent). These gains more than negated the higher interest payments by
the NG (34.5 percent) and non-bank corporates (53.8 percent) on other investments.

Moreover, the 6.5 percent expansion in compensation inflows from resident overseas Filipino
(OF) workers amounting to US$8.8 billion also contributed to the improvement in the primary
income account in 2019.

Net receipts in the secondary income account improved by 3 percent 2019 to reach US$27.6
billion, on account primarily of the3.5 percent expansion in remittances of non-resident OF
workers amounting to US$25.6 billion.

Capital account

The capital account recorded higher net receipts of US$70 million in 2019 from US$65 million in
2018. This resulted from the reversal to gross disposal of non-produced non-financial asset of
US$4 million from gross acquisition of US$10 million a year ago.

Final account

The financial account recorded lower net inflows of US$6.3 billion from US$9.3 billion in 2018.
This emanated from the huge drop in net inflows in other investment and direct investment
accounts, which tempered the reversal to net inflows of the portfolio investment account.
Direct investment account. The direct investment account registered lower net inflows of
US$4.3 billion during the period from US$5.8 billion, due mainly to the decrease in FDI to
US$7.6 billion (from US$9.9 billion).

28
In particular, non-residents’ net investments in debt instruments and equity capital dipped by
23.2 percent (to US$5.2 billion) and 38.2 percent (to US$1.4 billion), respectively. Net equity
capital investments by non-residents decreased during the period as placements dropped by
26.8 percent to US$2.1 billion and withdrawals increased by 18.4 percent to US$698 million.
Equity capital placements came mostly from Singapore, Japan, and the United States. Said
capital infusions were directed mainly to 1) financial and insurance, 2) real estate, 3) electricity,
gas, steam and air-conditioning supply, and 4) manufacturing industries. Reinvestment of
earnings amounted to US$1 billion in 2019.

Residents’ investments abroad fell to US$3.3 billion from US$4.1 billion in 2018, as their net
investments in debt instruments issued by their foreign affiliates declined by 22.9 percent to
US$2.3 billion. In addition, residents’ net investments in equity capital in their foreign affiliates
also declined by 10 percent to US$926 million. Portfolio investment account. The portfolio
investment account reversed to net inflows of US$1.7 billion from net outflows of US$1.4 billion
in 2018. This developed on account of the 69.3 percent increase in FPI to US$5.6 billion and the
18.8 percent reduction to US$3.8 billion in residents’ portfolio investments abroad.

The increase in FPI was due mainly to the 15.1 percent increase to US$15.5 billion in non-
residents’ investments in equity in investment fund shares of local non-bank corporates.
Residents’ portfolio investments abroad dipped by 18.8 percent to US$3.8 billion in 2019 due
mainly to lower net placements in foreign debt securities by local banks and corporates.

Other investment account: The other investment account registered a 99.4 percent reduction
in net inflows to settle at US$28 million in 2019. This resulted mainly from the reversal to net
outflows of residents’ investments abroad and lower net inflows from non-residents’
investments in the country. In particular, resident’s net investments abroad reached US$2.2
billion due mainly to the 241.4 increase in short term loans extended by local banks to non-
residents amounting to US$1.2 billion. Non-residents’ investments in the Philippines was lower
by 47.1 percent at US$2.2 billion in 2019 on account of lower loan availability by local banks
and other corporates as well as lower trade credit and advances extended to non-bank local

29
corporates. These more than offset the 25.7 percent increase in loans availed by the NG from
non-residents.

Financial derivatives: Trading in financial derivatives posted a higher net gain of US$172 million
in 2019 from US$53 million in 2018.

3) Exchange rate

On a quarter-on-quarter basis, the peso posted a modest appreciation of 1.51 percent against
the US dollar to average P51.00/US$1 in Q4 2019 from an average of P51.77/US$1 in Q3 2019.
The peso’s appreciation was attributed mainly to benign inflation environment, continued
inflows of remittances, foreign direct investments and BPO revenues combined with market
expectation of a US Federal Reserve rate cut. On a year-on-year basis, the peso also
appreciated by 4.31 percent from P53.20/US$1 in Q4 2018. Exchange rate volatility decreases
in the fourth quarter of 2019

The exchange rate volatility in Q4 2019 increased with a lower standard deviation of P0.43
compared to P0.65 in Q4 2018.

30
4) Current rate of exchange

1 USD = 50.283737 PHP

I) Trade restrictions:
Import taxes and tariffs

The Philippines follows the United Nation’s Standard International Trade Classification (SITC).
Import tariffs can range from 0 to 65 percent. Imported goods in sectors which have high
domestic production typically incur higher tariffs. For non-agricultural goods, tariffs average at
6.7 percent.

The Philippines Customs apply a value added tax (VAT) for imported goods at 12 percent. The
Philippines’ customs levy no tariff or tax for goods worth less than P10,000 (US$200).

j) Labor size and unemployment rate

31
k) Inflation rate
2019 2.48%

2018 5.21%

2017 2.85%

2016 1.25%

IV. Developments in science and technology

1) Current technology:
Although the Philippines is not the world's least technologically advanced country, it is far from
leading. It ranks 83rd out of 138 countries in terms of technological readiness, according to the
Department of Science and Technology.

2)Percentage of GNP Invested in Research & Development:

Philippines spend 0.11% of gnp into Rnd

V. Channel of distribution:
 Grocery retailers continue their aggressive expansion to extend reach to where busy
consumers live and work. While big supermarkets continue to extend their footprint,
rapid expansion is being driven by the emergence of small format stores, according to
performance management company, Nielsen.

 Small format stores are modern trade stores which appeal to today’s modern day, on-
the go shopper. Neighborhood supermarkets, mini marts, and convenience stores all fall
under the small store category.

32
  According to Nielsen’s latest Shopper Trends report, while supermarkets increased in
store count by 8%, convenience stores are leading the expansion of the small store
format concept in the Philippines, showing a growth of 20% in 2017 and 15% the year
before that. In 2013, there were only more than 1,620 convenience stores in the
country versus close to 4,300 convenience stores as of Q1 2018.
 Shopper Trends is a syndicated annual report that Nielsen conducts across 54 markets
globally. It provides a comprehensive overview of retail environment trends and an
understanding of shopping behavior across the different trade channels.  It provides
insights on where, when, and how often people shop, and their emotional commitment
and perceptions about key modern trade retailers
 Big retailers are not far behind in adopting the small store format. In fact, in the last five
years, small store formats of supermarket chains have grown close to 220 stores in 2013
to more than 410 stores as of Q1 2018 as these big supermarket chains are focusing on
expanding their small format stores.

VI. Media
Filipinos spend a lot of time on media. The landscape of Philippine media contains different
aspects that cater to the interest of the local audience. Television, radio, tabloid, and the online
media market are aspects of domestic media demand.

On local TV, the ABS-CBN network is popular among the local audience. As of 2018, the
penetration rate of ABS CBN among the regions of Mindanao and Visayas were 52 percent and
53 percent, respectively. The ABS CBN network is one of the Philippines' largest network in
entertainment and media, with revenue valued at approximately 40.1 billion Philippine pesos in
2018.

Television:
Radio and TV programs in the Philip pines resemble those in the U.S. They are commercial and
highly competitive. Many programs are in English. Many popular U.S. series are carried in
English on TV, but many locally produced shows are in Tagalog. Local news and public affairs
programs are usually in English. Movies are also popular on TV, both in English and Tagalog.
33
Users: 3.7 billion (2018)

233 + 1373 CATV networks

Radio

2013 357.4
2012 213.35
2011 222.06
2010 195.23
2009 203.72
2008 185.09
2007 192.94

THE
MARKETING PLAN

PART III: MARKET AUDIT AND COMPETITIVE

MARKET ANALYSIS

Introduction (Why this product? Provide justification and

appropriateness.)

Clothing sector plays a significant role in the world’s economy. There are many large industries
made from different brand names which are exported from different countries specifically in
Asia. Garment industry is one of the most potential businesses in the country; demands are
coming from local to overseas buyers

Fashion and clothing in the Philippines refers to the way the people of Filipino society dress up

in instances such as while they are at home, at work, travelling and when attending special
occasions.

34
The clothing style and fashion sense of the Filipinos in the modern-day era have been
influenced by their native ancestors, the Spanish colonizers and the Americans, as evidenced by
the chronology of events that occurred in Philippine history.

In 2019, menswear saw strong value growth, with men’s outerwear posting higher growth than
men’s underwear. Both categories of menswear benefitted substantially from Filipino males
having greater interest in being both comfortable and fashionable and players offering a wide
variety of trendy and affordable styles of men’s apparel both in stores and through e-
commerce.

HOT AND HUMID CLIMATE CONTRIBUTES TO DEMAND FOR COMFORTABLE CLOTHES,

INCLUDING MEN’S SHORTS AND TROUSERS

Men’s shorts and trousers continued to see high demand and again saw the highest growth in
2019, largely due to the fact that the Philippines is a tropical country with a very hot and humid
climate that calls for wearing clothes that are comfortable clothes. Shorts that are cut just
above the knee continue to appeal to younger people as they are in line with current trends,
can look well and easily be matched with sneakers, and are easy to wear throughout the day
and for different casual occasions.

FILIPINOS’ INCREASING WANDERLUST LEADS TO MORE TRAVEL, BOOSTING DEMAND FOR

TRAVEL-FRIENDLY MENSWEAR

Demand for menswear that is travel-friendly continues to rise in the Philippines as Filipinos in
general and especially adventurous millennials are increasingly traveling to nearby regions and
further abroad. While in recent years local tourist spots and neighboring countries offering visa-
free tourism for people from the Philippines have been the most popular travel destinations,
Filipinos are showing a growing desire to explore, and millennials are saving up to visit other
countries like Japan, South Korea and China.

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By analysis of all these factors, we have decided to carry our products in the Philippines
because we find out there will be a great demand for ma's wear over there. The world has now
become a global village, there is a great demand for every country's fashion products. People
are following each other in fashion. So, MONARK, the classic man's wear brand will be a
success in the Philippines according to our analysis.

II. The Product

A. Evaluate the product as an innovation as it is perceived by the intended
market
Relative Advantage:
Pakistan is well known for its textile and clothing. Pakistan has the second-best quality cotton in
the world. It is the sixth largest textile exporter, and textiles and clothing make up about 57% of
the country’s total exports. Manufacturing clothing in Pakistan has been rather popular among
famous brands such as Nike, Sears, and Old Navy. This is because of the high quality of
manufacturing clothes in Pakistan.

We’ll have relative advantage because of the quality of our products.

Compatibility:
MONARK is a brand that focuses on western style of clothing. What defines the western
clothing is anything that is comfortable and trendy. Although Filipinos have traditional clothes
or work dress code but Present-day Filipinos, due to climatic reasons, prefer to wear western
clothing; T-shirts combined with maong (jeans) trousers for men and skirts for women. The
"jeans and T-shirts" combination was introduced to the Filipinos by the Americans.

A common attire while at home are ordinary puruntongs (singular: puruntong, a type of pair of
shorts or Capri pants) combined with sleeveless shirts or T-shirts. During the rainy season and
cold evenings in December and January, some Filipinos wear hooded jackets.
MONARK offers polo & t-shirts, casual shirts, formal shirts & pants, cotton pants & jeans as well
as trousers and shorts which go well with the present-day culture.

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Complexity:
There is nothing complex about western clothing that Filipinos might have a hard time
understanding. Filipinos are very familiar with this sort of clothing.

Trialability:

In-store displays like all other clothing brands. Filipinos can visit the store or outlet and check
out the quality of clothes themselves. Just how normal garment shopping is done.

B. Major Problems and resistance to product acceptance based on the

preceding evaluation.
There may not be any resistance towards the products because Filipinos have adapted to
western clothing for a long time now. They even prefer it over their own traditional clothing for
daily use because it is easier to wear and suits them based on the dry and humid weather of
Philippines.

III. The Market

A. Describe the market(s) in which the product is to be sold

The Philippines remains a bright spot in the Asia region and is expected to continue to outpace
the economic growth of its ASEAN neighbors. The country ranks highly on key retail market
indicators compared to other global markets.

The Philippines has the highest household spending as a per cent of gross domestic product
(GDP) in East Asia, compared to other emerging markets such as Indonesia, Thailand, Malaysia,
China and Singapore (Source: Oxford Business Group). 26 percent of global retailers consider
the Philippines as one of the top-10 target markets in the region. The Philippine market is seen
as one of the thriving markets in the region, especially with its consumer-driven economy
driven by a growing young population, who are mostly in the labor force.

The retail landscape has experienced an unprecedented hike, stimulated by the rise of the
middle class and income levels. The demand for quality imported products is driven in
particular by the country’s young and upwardly mobile population, who continue to be
influenced by western trends. Filipinos love shopping and the mall lifestyle is deeply ingrained

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in their culture. The Philippines has four of the biggest malls in the world, thanks to the largest
local mall chain developer, SM Retail.

200 foreign brands entered the Philippines in the past seven years. 2014 has seen the influx of
foreign brands and more international brands continue to fill local malls. Beyond traditional
retail, online has been experiencing steady growth in the country and online marketplace sites
like Zalora and Lazada have boosted e-commerce in the Philippines. Philippines has the second
largest average monthly visits in ASEAN for Lazada with 43 million, next to Indonesia (51
million) and ahead of Thailand (21 million). Major distributors have quickly adapted and started
using the online channel to complement their brick and mortar stores.

Sustained demand and renewed interest from new and existing foreign retailers are expected
to remain. This is evident in the growing number of partnerships between local distributors and
foreign brands; majority of committed spaces within newly completed shopping malls are for
foreign brands; and international retailers replacing older tenants in select existing shopping
malls.

The total retail sales as of 2015 is $A928 billion (source: SM Retail Inc., Retail Environment in
the Philippines Today, September 2016).

Consumer buying habits:

The Filipino consumer behavior is one of the most influential buyers in the world today. Their
needs, wants, wishes and desires should be understood in order to accommodate them. It can
be noted, however, that consumers often do not behave consistently with their attitudes for
several reasons:

Ability - The price of products and services often influences whether consumers will purchase
them at all, if so, which competitive offering is selected. In terms of price of goods, a typical
Filipino will still buy things they want as long as it is within their budget. Even, if the product is
not in their favorite shop, this will not discourage them to look and find another shop. There
are also products that can only be sold in a certain region or places but a typical Filipino buyer
will find means and ways in order to get that stuff.

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Filipino consumers prefer to buy branded things as they know it came from a reputable brand
of quality. It is also one way of showing people around how proud you are wearing and carrying
that brand.

Competing Demands for Resources - Marketing strategies are designed to influence consumer
decision making which will lead to product purchase and exchanges. As many brands offered in
the market today, Filipino consumer buyers usually look around for price canvass and then
decide whether or not to buy.

Social Influence – For most products and services, we have choices that are far beyond the
simple fulfillment of basic needs. We have moved to a point where uncovering and exploiting
what might have been a significant need or want several years ago is now a basic to just being
competitive.

In terms of consumer behavior, culture, social class, and reference group influences have been
related to purchase and consumptions. Culture is one of the most basic influences on an
individual's needs, wants, and behavior, since all facets of life are carried out against the
background of the society in which the individual lives. Based on culture, it is very common to
Filipinos to visit malls and different shopping centers as it became their habits to visit such
place. It is a common place to stopover as it was a good meeting place for different occasions
such birthdays, anniversaries, dates including business activities.

Family influences among reference groups are common to Filipino buyers which are handed on
from generations to generations. In some instances, during payday the family members are
being asked for the stuff they want to buy. This practice is very common to typical Filipino
families. The influence of the family is very strong in terms of purchasing power and buying
behavior. Sometimes, the parents are the ones who decide whether to buy or not. For the
children, they usually ask for things that their parents can buy them as a good reward for their
accomplishments such as good grades, awards and even good deeds.

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Product-use patterns:
Consumer Financial Survey (CFS), conducted by the Bangko Sentral ng Pilipinas and released
last year, reported that a typical Filipino family with a 20,000-peso average monthly income
spends 5% or 1,000 pesos on clothing—the category with the least number of percentages, tied
with miscellaneous. Thus, for an average Filipino family of four and with 12,000 pesos of
clothing allowance, each member can spend 3,000 pesos for clothing in a year.

In a study conducted majority or 29.1% of the respondents usually spend 400 to 600 pesos for a
piece of clothing and majority or 49.1% of them buy new clothes three to five times a year.
From this, we can get the range 1,200 to 3,000 pesos (400 x 3 = 1,200; 600 x 5 = 3,000) which
coincides with the majority of 21.8% of respondents who usually spend 2,000 to 3,000 pesos for
buying clothes in a year. This also matches the inference I made based from the CFS report (i.e.,
each Filipino family member has 3,000 pesos clothing allowance yearly).

Moreover, a majority of 16.4% of respondents admitted that 70% of their clothes were bought
because they need it while the remaining 30% was because they just want the clothes. 41.8%
and 27.3% of the respondents wear medium and small-sized tops, respectively, while users of
extra small and large-sized tops each amount to 10.9% of the sample. They were also asked the
number of times they change clothes in a day and found out that 65.5% of them change twice,
29.1% change once, and 5.5% change thrice.

According to the respondents, their top eight favorite clothing brands are Bench (32.72%),
Uniqlo (32.72%), H&M (30.90%), Penshoppe (29.09%), Forever 21 (27.27%), Cotton On
(12.72%), Artwork (12.72%), and Giordano (10.91%). However, 25.45% of them aren’t brand
conscious—they simply just don’t mind the brands, prefer unbranded clothes, or buy from ukay-
ukay.

Product feature preferences

Need / Desirability
 The garment should be designed based on a need, not driven by a technology.

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  The garment should improve the wearer’s quality of life, and perhaps even solve a
problem.
 The garment should make the wearer feel something: strong, safe, invincible, beautiful,
happy, powerful, special, confident, or even smart.
Wear ability
 The clothes should fit comfortably.
 The clothes need to move as we move; they need to bend, stretch, and compress.
 The clothes should be washable, long lasting, and light weight. (Bonus points if they also
wick moisture and are breathable.)
 The clothes should be easy to put on and take off so they can be worn by people of all
ages and by people with disabilities.
 The clothes should look good.

Distribution of the Product:

Distribution Network of Philippines:

Metro Manila is the commercial capital of the Philippines. It is composed of 11 cities and is
where the Philippines’ national importers and distributors are located. Within Metro
Manila, Makati City, Ortigas Center in Mandaluyong City, and Bonifacio Global City in
Taguig, are considered central business districts (CDB). These CBDs are home to many
multinational company headquarters, commercial bank head offices, and high-end shopping
establishments.

Outside of Manila, other major regional commercial centers are Province of Pampanga,
Baguio City, Cebu City, Iloilo, and Davao. Cebu City, the third largest city in the Philippines,
and Iloilo are the primary trading centers for the middle portion of the archipelago (the
Visayas Region). Davao, the second largest city in the Philippines, enjoys a near-trade
monopoly in Southern Mindanao, due to the numerous land and water connections to
nearby provinces.

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 Most of international cargo traffic is handled in the ports located in Manila; the Manila
International Container Terminal (MICT), and South Harbor. MICT is operated by the
International Container Transport System, Inc. (ICTSI), a Philippine-based international port
operator with operations in 20 other countries (including the U.S.). South Harbor is
operated by Asian Terminals, Inc. (ATI), a Dubai-based company.

Trucking companies are used to deliver goods from the port to warehouses and retail
outlets. The large number of trucks has caused a huge impact on road congestion. The
Government has resorted to truck bans on major roads in Manila during rush hour or in
some areas from 5am to 8pm to help alleviate traffic.

The use of local agents or distributors greatly improves the opportunity for market success.
There are currently two types of importers in the Philippines: stocking distributors and
indenters. Stocking distributors are bound by a contract to buy and sell a prescribed number
of items as stated in their agreement with the foreign supplier.

Indenters, on the other hand, act as brokers between foreign suppliers and the end user,
thus saving on capital outlays for expensive equipment and avoiding the need to stock high-
priced products. Usually, a buyer who orders from an indenter already has the financing for
the goods. Customers will often open a letter of credit (L/C) for direct purchase from a
foreign exporter. Under these arrangements, the local representative or agent gets a
commission for the sale, known as an indent sale. Indenters also handle after-sales service
support.

A) Product distribution:

Typical Retail Outlets or Wholesale:

We will look forward for typical retail outlet. The commercial marketplace has evolved to
the point where retail sales no longer have a monopoly on the consumer world. To
elaborate, consumers once relied almost exclusively on retail outlets for their needed
goods, but today you can purchase from online stores, auction sites, wholesale outlets,

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 liquidation centers, and in some cases, you can even go straight to the manufacturer.
Typical retail outlets provide certain benefits:

 Operational CRM System.

 Customer Data Record
 Great Inventory Options
 Great Sales Potential

Advertising and Promotion:

The changes in media landscape also change the way consumer’s access information about
products and services. Television remains an essential part of Filipinos’ everyday lives,
which is why they rely on commercials for product information. These advertisements also
greatly affect the product preference of Filipino consumers. Respondents of the Nielsen
Global Consumer survey from the Philippines said that commercials increased their brand
preference (78%), as the image created by these commercials influenced their decision to
buy said products.

Celebrity endorsements also play an important role when it comes to influencing brand
preference. Companies use these spokespersons to deliver their advertising message and to
boost their brand image. Marketing studies have reported that famous people increase
awareness of a company’s advertising and create positive feelings towards brands.
According to Julius Guevara, Colliers Philippines associate director for advisory and
research, is because Filipinos “are very conscious of celebrities and they find affinity with
the celebrity.” A celebrity’s appearance, popularity, and relatability are the measures on
how big the impact of their endorsement could influence a consumer’s decision on buying
their endorsed brand.

Advertising on the Internet also plays a key role in advertising. 10% of the consumers
ranked social media posting, 9% for active internet searching, 6% for internet
advertisements, and 4% for Internet forum or message board as key influencers.

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 The Nielsen report on Global New Product Innovation revealed affordability as the key
driver of new product purchase for Filipino consumers, followed by convenience and
personal recommendation from family and friends, and experts (14%).

Advertising media usually used to reach your target market(s)

Here are some digital marketing tools that we use to target our customers:

1. Retarget our visitor with Facebook ads to increase conversion rates:

Most people are not ready to buy immediately upon seeing an ad or visiting the website. With
retargeting will be able to reach the same people that were thinking about buying our product
with reminder ads.

2. Run a promotion during holidays to increase our sales and capture attention when buyers
are more aware.

Depending on the time of year, we will provide different incentives to buyers.

If it’s Christmas, have a series of emails go out to our email subscribers with a digital marketing
strategy that focuses on compounding discounts.

3. Create gift guides year-round for our ideal buyer’s life events to inspire them to buy.

Depending on the type of ecommerce store we own and our ideal buyer, create gift guides for
life occasions. People buy gifts year round, not just Christmas, so we will promote our products
by creating gift guides for Mother’s Day, Father’s Day, graduation season, Valentine’s Day,
weddings, anniversaries, etc.

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4. We will get our audience involved to create a community around our brand.

We will encourage our audience to share content based on our brand values to foster
engagement and reinforce those values.

For example, we can run a contest on Facebook and Instagram where we can ask from our
community to share a photo of something that our brand believes in.
When our community creates content for our brand we will also share some photos into blog
posts on our website or even on our webpage. By sharing the photos on our website, along
with descriptions and links to buy the items, we will have a customer that will share that link
with all his friends.

5) Television commercial:

Firstly, TV commercial can help campaign to target wide range of audience from high status
society to low income group. It is the quickest way to rise the brand awareness in 30’s to 60’s of
commercials.

Secondly, TV commercials have its advantage of showing the movement of fashion brand than
print ads. It will give the fashion brand the best result of showing different angles of the brand
by seeing models walk on the runway. So we will use this method too to target our audience.

Sales promotions customarily used (sampling, coupons, etc.)

Business sales promotions tempt customers to make purchases. Typical incentives like
coupons or raffles are effective in doing sales promotion but not as lasting as clothing
promotions. Here are some sales promotion Techniques that we use:

Shirt Ideas:

We will tell our customers "We've got you covered," with a long-sleeved T-shirt. We will have
the company logo printed on the left sleeve and the company's name printed on the back of
the shirt.
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Promotional Hats:

In Philippines many people like wearing hats for sun protection and quick cover-ups on bad
hair days. We will reward our best customers with promotional hats. Our brand’s logo will be
printed on the crown of the hat.

Workout Clothes:

As Pilipino are changing themselves according to trends and are health conscious too. The
gym is a popular place for the health-conscious. Our other promotional clothing ideas are
cotton workout socks, sports shorts and fitted tanks.

Multi-save promotions include offerings like:

 Buy and save off the entire sale.

 Spend and save off the entire sale.
 Buy and save off specific items.
 Spend and save off specific items.
 Buy and pay a fixed price.
Conditional promotions, on the other hand, include:

 Buy and get one or more items for free or on discount.

 Spend and get one or more items for free or on discount.
 Buy and earn loyalty.
 Spend and earn loyalty.


These types of promotions will encourage sales without necessarily killing our revenues they
will also encourage shoppers to check out more products, versus just looking at what’s on
clearance.

Pricing strategy:
Pricing strategies plays an important role in determining how many customers are going to buy
our product. As after seeing the environment of Philippines we have decided of use market

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penetration strategy. Market penetration pricing strategy involves that our product’s price will
be lower than the competition to generate buyer’s interest. After getting involved in the market
and getting marker share and after establishing a reputation for quality we will start increasing
prices to drive higher margins.

a) Types of discounts available:

We will offer different discounts to our reputable customers. These will be:

 Percentage discounts
 Free-delivery after a certain amount of money is spent
 Special gift when a purchase is made
 Special discount for social media followers
 Referral promotion (will give a discount to anyone who will recommend our brand to a
friend)

Compare and contrast your product and the competition’s

product(s).

Competitor’s distribution channels

Competitor Name and Background: Our main International competitor is ZARA. Zara
having begun in Spain in 1975. The company is owned by textile giant Inditex and is its
flagship brand. Zara’s ownership of its supply-chain steps allows for more rapid product
turnover; Zara can design a product and have it sold in stores a month later. Zara boasts
2,200 stores in 96 countries. It currently has 87 stores open in the United States, with a
majority of its locations worldwide in Spain, where there are 563 locations (including Zara
Kids and Zara Home).
Competitor’s Products:
The products of Zara for men include cropped top, cashmere coat, shoes, shirts, T-shirts,
shorts, dress suits, and jackets etc.
Feature:

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 Zara's strategy is to offer a higher number of available products than its competitors. While
most clothing retailers manufacture and offer to the public for sale 2,000 to 4,000 different
articles of clothing, Zara's production has been markedly higher, at over 10,000 pieces
produced per year.
The unique feature of the company's strategy has allowed Zara to appeal to a broader
number of customers with unique tastes.

Prices:
Meanwhile, Zara’s pricing ranges from $5.90 for a cropped top to $219 for a belted coat.
Although the cashmere coat pushes up Zara at $40.46. Zara’s most optioned price point is
$20-$40, also representing 49% of their products.

Analyzing the structuring around dress price points reveal Zara give products priced $20-40
the most weighting at 55.2% and 37.1% respectively. The $60-80 price point has been a
sweet spot for Zara this year with the viral success of the infamous spotted dress priced at
$69.90.

Strategies:
 Zara uses a mix of demographic, geographic and psychographic segmentation
strategies in order to serve the growing needs of the customers.
 Rather than setting fashion trends, Zara rides the wave of what’s currently hot and
established to provide affordable copycat versions of high-end brands. And to
appease its teen and 20something demographic, the store prides itself on getting
new designs in stores within 2 weeks.
 The company only spends about 0.3% of sales on advertising, and doesn’t have
much marketing to speak of. But what appeals to customers is its exclusivity and the
fact that the brand isn’t plastered on every billboard.
Shoppers feel like if they buy a shirt at Zara, five other people won’t have that same
shirt at work or school. The fact that the store stocks little inventory helps with
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 that exclusivity factor. There’s the sense of being in a cool kids’ club when the brand
stays underground in terms of advertising.

Market size
1. Estimated industry sales for the planning year
Exports

Garments 1,043,364,524 1,357,896,081 1,322,509,064 1,456,873,914 1,759,028,579 1,357,732,950

Textile 157,289,767 161,882,954 143,703,608 172,128,179 211,024,715 171,286,036

Imports

Garments 93,062,935 169,311,484 185,674,799 225,352,107 28,1682,188 333,682,228

Textile 556,416,206 803,864,807 668,339,380 733,664,572 791,489,297 849,530,076

Since the mid-1990s, the garment sector has steadily and continuously declined, although it
has remained the second highest foreign exchange earner next to the electronics sector. The
Arangkada reports that share of garments and textiles exports has been decreasing and is
currently less than 5% of total Philippine merchandise exports. The value of exports also
decreased significantly in the last five years hitting a low of US$ 1.043B in 2010 from an annual
average of US$ 2.4B between 1995 and 2006. Over the past three years, exports averaged at
US$1.5 billion.

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2. Estimated sales for your company for the planning Year
Looking at average sales of brands in the clothing market, we expect to make sales of around
$50k - $60k.

Government participation in the marketplace

Agencies that can help you.
Department of Trade and Industry DTI is the most important.

The following are attached to the Department of Trade and Industry that can be helpful or are
required to coordinate with in order to start business in Philippines:

 Board of Investments (BOI)

 Center for International Trade Expositions and Missions (CITEM)
 Construction Industry Authority of the Philippines (CIAP)
 Cooperative Development Authority (CDA)
 Design Center of the Philippines (DCP)
 Philippine Trade Training Center (PTTC)
 Intellectual Property Office of the Philippines (IPOPHL)
 National Development Company (NDC)
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  Philippine Economic Zone Authority (PEZA)
 Philippine International Trading Corporation (PITC)
 Philippine Pharma Procurement Incorporated (PPPI)
 Small Business Corporation (SB Corp)
 Technical Education and Skills Development Authority (TESDA)
 Department of Labor and Employment (DOLE) – For occupational safety and Health
standards
 Phil Health – For availing Medicare benefits
 PAG-IBIG fund – Mandatory for employees covered by the Social Security System
(SSS)
 Department of Environment and Natural Resources (DENR) – For availing an
Environmental Compliance Certificate

Regulations you must follow:

With a flourishing economy, the Philippines offers great opportunities for investments and
business development. The positive growth rates, along with the massive pool of skilled
workers, lower overhead cost, business-friendly policies, and other essential resources,
have fueled the investment interest here and abroad and have led to the establishment of
various businesses in the country. When setting up a business or starting a company, there
are certain government regulations to take note of:

Business registration
Before the business can go fully operational, it must secure the necessary licenses and
certificate of registration. The requirements vary for different structures of business.

• For single proprietorship, the business should apply for a business name and get
registered with the Department of Trade and Industry (DTI).
• For partnerships or corporations, a certificate of registration must be obtained from the
Securities and Exchange Commission (SEC).
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 • For cooperatives, the business must register with the Cooperative Development
Authority (CDA).

Aside from the certificate of registration, the business would also need to comply with
other requirements and must apply for certifications/permits/licenses/identification
numbers from other government agencies and organizations.

• A homeowner's clearance is required if the business will operate within the village or
subdivision.
• The business must secure a barangay clearance and acquire a community tax certificate
(CTC).
• With complete requirements, it must secure a business license or mayor's permit at the
local government unit (municipality or city hall office).
• A business tax payer identification number (TIN) from the Bureau of Internal Revenue
(BIR) must be obtained along with an SSS number (for the business and employees). The
business should also register with Home Development Mutual Fund (HDMF), Philippine
Health Insurance Corp. (PhilHealth), and Department of Labor and Employment (DOLE).

*Special clearances and permits must be acquired by certain businesses from select
government agencies in order for them to operate legally. For example, businesses that
deal with animals, animal products and facilities, and veterinary drugs must apply for
certification from the Bureau of Animal industry. For the list of required certifications for
certain businesses, visit this link.

Foreign ownership, equity, and investment

The Philippine government supports foreign investments that will create employment
opportunities, increase export volume and value, encourage the productivity of resources,
and help set the foundation for economic development in the country. With a liberalized
foreign investment law, the country allows 100% foreign equity on some areas of

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 investment, excluding some industries and activities under the Foreign Investment
Negative List.

In Negative List A, certain businesses and industries have restricted foreign ownership as
specified by the Constitution and some specific laws. Some sectors (e.g., mass media, small-
scale mining, private security agencies, etc.) prohibit foreign equity, while other areas of
investment maintain a limited percentage of foreign equity (20%, 25%, 30%, 40%, and
60%).

In Negative List B, foreign ownership is restricted to businesses and industries (see the
complete list here) that involve security and defense and may pose health risks and may
have an adverse moral effect. Restrictions are also set in place to protect small- and
medium-scale enterprises.

Ownership land/real properties in the Philippines by foreign investors/corporations

Foreign companies and investors can acquire lands as long as these are privately owned
and foreign equity doesn't surpass the 40% cap. There are, however, some exceptions to
land ownership by foreign investors and corporations (check the stipulations here). Aside
from private lands, foreign corporations and investors can also own real properties like
buildings and condo units and may invest on land improvements. They can even lease lands
according to the conditions set by the Investor's Lease Act (refer to the conditions here).

Incentives for a registered enterprise

There are several tax incentives offered to foreign investors and corporations and any
registered enterprise. These include fiscal and non-fiscal incentives by various authorities
and implementing agencies. Various incentive schemes are available depending on the
location, business activity, and registration. Foreign companies and investors, for instance,

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 can take advantage of the Philippine Economic Zone Authority (PEZA) incentives and
benefits through accreditation

Strategic elements of competitive advantage

In recent years, the retail fashion industry has witnessed a revolution, with companies
applying a quick response strategy known as “fast fashion”. Fast fashion refers to fresh
fashions, shorter life cycles and faster and inexpensive production. The concept mainly
serves the market segments of teenage and young adult women who want to buy trendy
clothing at a relatively low price.
We will gain competitive advantage over the following key points:
 Cost leadership strategy
 Differential strategy
 Focus strategy
 Positioning
 Corporate Identity

Conclusion
Textiles and clothing industries are important in economic and social terms, in the short-
run by providing incomes, jobs, especially for women, and foreign currency receipts and in
the long-run by providing countries the opportunity for sustained economic development
in those countries with appropriate policies and institutions to enhance the dynamic effects
of textiles and clothing. The potential of the textile and clothing industries to contribute to
long-run growth and development will depend not only on the attributes (desirable or
otherwise) of the investors, but also on the quality and effectiveness of government
policies and institutions in developing countries to build on this investment. The textile and
clothing industry provides opportunities for export diversification and expansion of
manufactured exports for low-income countries that can exploit their labor cost
advantages and fill emerging niches and meet increasing buyer demands. Competitiveness
is an indicator of the ability to supply goods and services at the location and in the form

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 and at the time sought after by buyers, at prices that are as good as or better than those of
potential suppliers, while earning at least the opportunity cost of returns on resources
employed. Thus, a competitive firm or industry or country have the ability to satisfy the
consumer with a product of the right price, right quality, right packaging etc. i.e. creating
place, time and form utility.

Representing the above statistics we are hoping that MONARK stands in the list of the
leading brands operational in Philippine and we hit the sales and facts as proposed in our
project.

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