PROBLEM-SOLVING GROUP

CONDUCTED IN QUALITY CIRCLE FORM

Ma. Jammiene (Managing Director): Good morning, everyone. Thank you for
attending this urgent meeting. I know it’s hard for all of us since we are still under GCQ
and for that, I am grateful for your hard work and dedication. I hope you are all safe
including your families and loved ones.

Alright, I’d like to start by welcoming all of you to our meeting today. On behalf of
Colourette Company, I called this meeting to discuss the undergoing crisis our business
is going through right now. In line with the government’s protocol in combating COVID-
19, people are limited to move around freely and go to the malls. Needless to say, this
pandemic greatly impacted our market function and operational issues.

Before we start, I’ll briefly introduce the participants in today’s meeting. This is Allana
Chavez, the Advertising Supervisor. This is Jax Lomibao, the Financial Supervisor and
this is Dencel Johart, the Inventory Control Specialist. My name is Ma. Jammiene
Asuncion, the Managing Director.

Does everyone get a copy of today’s agenda?

Everyone: Yes, Ma’am.

Ma. Jammiene (Managing Director): Well, as you can see from the agenda, there are
three main points about the company’s market operations. The coronavirus pandemic
has altered not only our financial outlook for the year but also our long-term direction.

Each underlying concern will be discussed by the head of each department for a more
concise illustration of what is really happening. We’ll just lay out all the problems first
then we’ll move on to sharing our ideas for the solutions with these problems later. Is
that alright with all of you?

Everyone: Yes.

Ma. Jammiene (Managing Director): Alright then. Let’s start with Jax. Jax? How much
profit do we make on our physical stores since this lockdown? How quickly does your
inventory turned over during a year?

Jax (Financial Supervisor): The ongoing coronavirus pandemic has changed the face
of cosmetic businesses as we know it. The lasting impact of this ongoing pandemic
cannot be underestimated. It looks like we have a problem about the collapse of
physical stores of Colourette since the lockdown has started. In a normal year, our
physical stores are earning a maximum of one million and five hundred thousand peso.
Last March up to November our sales went down to one hundred and twenty thousand
peso and that’s a total of approximately eighty percent loss of our sales.

Considering the rent on our physical stores 100,000 for the whole year due to the
pandemic, it’s obvious that our sales are not enough to cover the rent and the worst is
we are not gaining any profit from it. But, I must say that this doesn’t discourage us in
any way and even gives us more fuel to work harder and with even more dedication.

Ma. Jammiene (Managing Director): It’s heartbreaking to know this especially, it will
greatly impact not only us on the higher position but also all our employees starting from
the manufacturing down to our sales operations team.

The second point today is advertising on social media. Allana, I know that you have
prepared a statement on this topic, right?

Allana (Advertising Supervisor): Yes, boss. COVID-19 is changing consumer

behavior, and therefore advertising. As confinement issues were introduced around the
world, out-of-home advertising shrank almost instantly; print advertising also fell.
Meanwhile, in-home media usage went up. Digital consumption has increased even
more: use of social platforms and streaming services have risen almost everywhere.

Colourette Cosmetics have to adapt by following consumers, which means we need to

be prioritizing digital advertising. The online environment is favorable for our “direct
response” campaigns.

While being homebound causes stress and isolation for so many, we need to see this
as an opportunity to bring people together as they stay safely apart. Customers want to
interact with real people and identify with their everyday struggles. This is why micro-
influencers have become so popular recently, a person who knows how to build
communities based on trust, loyalty and authenticity will win the attention of customers.
We need to begin transferring our ad peso to a new subset of tastemakers, so I’ve
compiled a list of potential 50 micro-influencers to work with including their photos,
metrics, and links - all of which have under 50,000 followers.

Ma. Jammiene (Managing Director): I believe this suggestion of Allana is great and
will really for our efficiency. Does everyone agree?

Everyone: Yes!
Ma. Jammiene (Managing Director): Okay then. Let’s go over to Dencel’s concern.
Dencel, you may have the floor now.

Dencel (Inventory Control Specialist): Due to the pandemic, we are having a hard
time to produce some of our products because of the loss of manpower in our factories.
The closing of our physical stores can be a good thing for the company because we can
collect the remaining products in those stores. May I suggest that we make a promo for
our products or have a sales discount with our products to compensate for our losses
during this pandemic?

Jax (Financial Supervisor): I think it’s a great and reasonable strategy, Dencel. These
strategies create superior values for employees and customers, and employees will
increase their productivity, contribution and motivation. And for the customers, they will
be able to enjoy our online stores because of the promos being offered!

Ma. Jammiene (Managing Director): I agree with Dencel’s idea. How about you,
Allana?

Allana (Advertising Supervisor): Yes, I certainly agree with Dencel’s idea. This will
help us promote our products online.

Ma. Jammiene (Managing Director): Alright. So, let me summarize what we have
already talked about today. We tackled all the underlying problems we had starting from
Jax, regarding our sales revenue during the Community Quarantine period. In solution,
Allana suggested that we put our products online and have some influencers to endorse
our products. In which, everyone agreed. In addition, Dencel suggested that we make a
promo and have a discount on our products to compensate for our losses. Again,
everyone agreed to it. Do you have any more suggestions and concerns you want to
bring up?

Everyone: None so far.

Ma. Jammiene (Managing Director): I think we've covered everything on the list. If no
one has anything else to add, then I think we’ll wrap this up. If anyone has any
questions about anything we discussed today, feel free to send me an e-mail. Thank
you for your time and be safe.
Group Members:

Asuncion, Ma. Jammiene (Section 3)

Lomibao, Jax Rolane (Section 1)
Chavez, Allana Chelsy (Section 1)
Sesbreno, Dencel Johart (Section 3)