I.

Executive Summary
SCF Furniture designs and produces different types of furniture. This marketing plan
elucidates our market segments. It also scrutinizes the strategies we are employing to
have larger market share and create a solid revenue stream. This analyzed different
macroeconomic forces that will affect how the company will progress. This also analyzed
the whole industry including its competitors’ strengths, weaknesses, strengths, and
opportunities.

This plan also scrutinized the different factors that leads a company towards being
superior to competition. This also included a deep study of the 8P’s (Product, Price,
place, promotion, people, process, physical evidence, and personalization) of each
company. To help SCF Furniture surpass its competitors, this marketing plan created
objectives for the SCF Furniture.

 To increase the market share by 5% after a year.

 To increase the sales by 30% after a year.
 To gain 30% more profit after 2 years.
 To lessen the price of the products at least 5% next year.
 To improve the quality and durability of the products in a span of 3 months.
 To innovate products in order to better satisfy the customers’ needs, wants, and
expectations in a span of 3 months.
 To widen the product range for the next 6 months.
 To make the delivery process faster in a span of 2 weeks.

And to achieve this objectives, we have come up with an action plan. In which it will take
8 months to execute and a budget of Php 1, 384, 050. The action plan will be funded by
the saved profit of the company.

After the execution of this marketing plan SCF Furniture is expected to continuously
grow until it surpasses its competitors and be the market leader of the Furniture Industry
in Santol Balagtas, Bulacan.

II. Current Marketing Situation

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i. Macroeconomic Forces
a. Social, Cultural, Demographic, and Environmental Forces
SCF Furniture is great when it comes to controlling the social and cultural
forces since we maintain good relationship with our market, they will
behave in a way that will help in marketing the company. The market
believes that a good furniture should have great quality while still
maintaining an inexpensive pricing. The continuous modernization on the
lifestyle of our market also affects the way companies market their
products since they should also innovate and modernize not just are
products but the way that they connect and interact with the market with
the help of technology. Also, the demographic forces are uncontrollable
but SCF Furniture focus on studying how the society change gives us
better ideas on how we will market our products. We found out that as
years pass by, many Filipinos prefer smaller family than the previous
years and because of this we’ve thought of designing smaller sizes of our
furniture so that it will be more convenient for our other markets. Lastly,
the continuous decrease on the supply of narra wood because of the fewer
narra trees had a great impact on the business since we needed to find for
an alternative but still maintaining the quality of our products. And for
that, we’ve found out that coco lumber is one great alternative for solid
narra woods.

b. Political, Legal, and Governmental Forces

We first registered our company to the Department of Trade and Industry
so that we will have the right to use our business name, SCF Furniture in
marketing our products. The next step is ensuring the continuous
production by acquiring a barangay permit wherein we presented our Tax
Certificate and DTI Permit. After obtaining the barangay permit we next
ensured that there will be no problems on the run of our business by
ensuring a Mayor’s permit. Before acquiring the mayor’s permit, our place
of production was inspected if it is safe for the other residents. After
inspection we are granted the fire and sanitary permit followed by the
release of our mayor’s permit. The getting of the barangay and mayor’s
permit is in obedience to Republic Act 7160 or the Local Government
Code of 1991. After the long process of getting permits, we legally started
the operations of our business and also started in marketing our products
to different geographical areas. And lastly, to avoid any problems within
the business and to continue our production, SCF Furniture yields to the
Tax Reform Act of 1997 wherein the company shall pay taxes to the
Bureau of Internal Revenue.

c. Economic Forces

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 One major factor that affected our business is the inflation rate because
there is an inflation rate of 5.1% last December 2018. It made the
materials that we are using more expensive causing us to also increase the
prices of our products that we later on explained to our markets.

d. Technological Forces
The technology has greatly helped SCF Furniture as we can communicate
to our market easier than before. Also, there are modern machines and
equipment that helped in making the production of the furniture faster thus
making more products and being able to entertain other customers or to
expand our market share.

e. Competitive Forces
On Santol Balagtas, Bulacan there are 5 competitors of the SCF Furniture.
Two of those competitors namely Ventura Furniture and Antonio
Furniture is ahead of SCF Furniture when it comes to the market share.
SCF Furniture’s rivals offer different attributes to attract potential market,
some have really low prices, some are known for great quality, some are
known for both, and some are well-known because of their owners.

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 ii. Industry Analysis
a. Porter’s Five Forces

Threat of new entries

Many try making furniture.

Bargaining power of
Bargaining power of Competitive Rivalry
buyers.
suppliers.
There are 5 Competitors
(High)
(Low)
(High)

Threat of substitute
products.

(High)

 Competitive Rivalry - High

The first thing that our company considered is the number of
competition that our company faces. Here on Santol, Balagtas,
Bulacan, there are a total of 6 furniture producers namely SCF
Furniture, Feliciano Furniture, Ventura Furniture, Antonio
Furniture, Jolly Furniture, and Zapra Furniture. The competitive
rivalry is high and this is the reason why SCF Furniture must strive
to give the best quality products with inexpensive prices.

 Supplier Power - Low

There are a lot of potential suppliers from Balagtas, Bulacan
because there are many hardware stores around. But we are just
sticking with one supplier since we are trying to maintain good
relationship with them. Our chosen hardware store offers the best
products at best prices. They do not give us expensive rates for the
supplies since they know that they have many rivals and we can
shift anytime, and also, it is because that we are already a loyal
customer from them. We also get discounts from them because we
are purchasing a lot of products from them.

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 Buyer Power - High
Since SCF Furniture has a lot of competitors, the buyers have
many choices to choose from. Because of that, the buyers are
having the power over the products that they want to purchase for
the companies will be more considerate to the buyers in order for
them to have a larger market share and be superior to their
competition.

 Threat of Substitutions - High

When the buyer had no other choice, they still pick substitutes for
our products like the furniture from China that are usually made of
not solid woods and the parts are detachable because those are
much cheaper and the designs are also nice. Also, customers today
are using the new plastic containers in which they can also use as
cabinets so they are using that alternative instead of using cabinets
made from wood.

 Threat of New Entry - High

There are many international furniture producers today entering the
market. And those new competitors have much modern designs
and methods that makes the consumer purchase more from them
and reduce the market share of SCF Furniture. Also, if there will
be new furniture producers around the area of Balagtas, Bulacan,
the competitor’s rivalry would be higher and will also be a cause
for SCF Furniture to have lower sales.

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iii. Internal Environment Analysis
a. History
SCF Furniture has started way back 2004 when the founder, Sevilla
Fabian came back to the Philippines after working overseas. He does not
want to work far away from his wife, son, and two daughters anymore so
he decided to use the knowledge and skills that he has acquired throughout
his journey on Saudi. From then on, he decided to produce different kinds
or furniture. It was not an easy start, his family need to tighten up their
budget since all their savings are put into the furniture business. Sevilla
did not stop from expanding his market share by going to different areas in
Luzon to let different furniture retailers be aware if his products. But still,
he has his other competitors ahead of him. But he didn’t treat this as a
barrier but instead he made this as an inspiration to improve the company.
Year after year, the company is continuously expanding and as of the year
2018, SCF Furniture have the 3rd largest market share among his
competitors. Is the 4th company that has highest sales and is 3rd when it
comes to gaining profit.

b. Company Background
The founder, Sevilla has worked for 16 long years overseas particularly in
Saudi as a carpenter and that made him acquire lot of skills and knowledge
when it comes to furniture. SCF Furniture is known for beautiful wood
carvings on furniture, quality woods used, and proper coloring of the
products. SCF Furniture is now a distributor to many retailers in different
geographical areas including, Gapan, Nueva Ecija, Sta. Maria, Bulacan,
Balagtas, Bulacan, Guagua, Pampanga, Macabebe, Pampanga, Angeles,
Pampanga, Olongapo, etc. Sevilla envisioned his company to be one of the
best and up to this date, he never stopped in pursuing the target that he
aims for the company. He is going with the new trends so that his product
will not be too old-fashioned even after man years. He continuously hears
and observes what his markets need and want to be able to satisfy them.
This is SCF Furniture functioning to provide the best for the best
customers since 2004.

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 c. Organizational Chart

Manager (Niño B. Fabian) –

Supervises the whole company.

Carpenters – Assembles Painters – Do finishing Driver – Delivers the

the furniture. touches to the furniture. furniture to the market.

Edgar Mhannie Dennis Matt Sonny Roel

Cruz Basa Vito Fabian Fabian Villanueva

- SCF Furniture uses

horizontal organizational
Larry Rene Marlon Dino Nard chart wherein all the
Santos Bautista Fabian Santos Fabian employees are under the
owner.

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 V. Objectives
 Market Share

Market Share 2018 The 6 producers of furniture are

all located in Santol Balagtas,
Bulacan and targets retailers or
even direct buyers around
SCF Furniture
Feliciano Furniture
Region 3. As of the end of
15%
23%
Ventura Furniture 2018, the SCF Furniture have
9%
Jolly Furniture the 4th largest market share
6%
Zapra Furniture which is 15%. The company
18% 29% Antonio Furniture that has the largest market share
is the Ventura Furniture having
29%, followed by 23% of
Antonio Furniture, 18% of Jolly
Furniture, followed by the SCF
Furniture, 9% of Feliciano
Furniture, and the company that has the smallest market share is Zapra Furniture that has
6%. Our market share objective is to increase the market share of SCF Furniture by 5%
after a year.

 Sale
Sales Year 2018 s
As we can see
3500000 from the graph,
3000000
Antonio Furniture
has the highest
2500000 sales last 2018.
2000000 Followed by
Ventura Furniture,
1500000
Jolly Furniture,
1000000 SCF Furniture,
500000 Feliciano Furniture,
and lastly the Zapra
0 Furniture. As we
SCF Feliciano Ventura Jolly Zapra Antonio
Furniture Furniture Furniture Furniture Furniture Furniture have observed,
number of
Series 1
customers is not
necessarily equal to the sales of a company. Our objective for our sales is to have at least 30%
increase on sales after a year.

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  Prof
Profit Year 2018 it

1200000 As
1000000
the

800000

600000

400000

200000

0
SCF Feliciano Ventura Jolly Zapra Antonio
Furniture Furniture Furniture Furniture Furniture Furniture

Series 1
graph shows, Antonio Furniture has the largest profit followed by Ventura
Furniture. And with a large gap, it is followed by SCF Furniture, then Jolly
Furniture, followed by Feliciano Furniture, and the company that has the smallest
profit is Zapra Furniture. Because SCF Furniture is only 3rd among the companies
when it comes to the profit on the year 2018, we have made an objective to have
at least 30% increase on profit after 2 years.

 Others
These are other objectives that will help SCF Furniture to achieve its 3 main
objectives. The first one is to lessen the price of the products at least 5% next
year. The second one is to improve the quality and durability of the products in a
span of 3 months, we also plan to innovate products in order to better satisfy the
customers’ needs, wants, and expectations also in a span of 3 months. Another
objective is to widen the product range for the next 6 months so that the
customers will have more choices, and lastly, to make the delivery process faster
in a span of 2 weeks. All of these other objectives will attract more potential
buyers and will bring success not just to the three main objectives but to the
whole company.

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VII. Space Matrix
Internal Strategic Position External Strategic Position
Competitive (CA) Industry (IS)
-2 Product Quality +3 Barriers to Entry
X-Axis

-3 Market Share +5 Growth Potential

-2 Brand and Image +4 Access to Financing
-1 Product Life Cycle +5 Consolidation
Average: -2.00 Average: +4.25
Total X-Axis Score: 2.25
Financial (FS) Environmental (ES)
+4 Return on Assets -2 Inflation
+3 Leverage -2 Technology
Y-Axis

+4 Liquidity -2 Demand Elasticity

+4 Cash Flow -3 Taxation
Average: +3.75 Average: -2.25
Total Y-Axis Score: 1.5

Conservative Aggressive

1.5

2.25

Defensive Competitive

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 This space matrix shows that SCF Furniture should pursue an aggressive
strategy. SCF Furniture has already a position in the market and is a growing
business. It needs to use its internal strength to develop a great market
penetration.
VIII. Boston Consulting Group’s Product Portfolio Matrix
Product Market Share Market Growth
Aparador 36 4% 16%
Aparador 48 1% 13%
Aparador 60 1% 8%
Divider 36 2% 14%
Divider 48 2% 13%
Divider 60 1% 7%
Office Table 16x36 3% 15%
Office Table 20x40 1% 14%

Market Star Market Question Mark

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Aparador 36

17
Aparador 48

19 18 17 16 15 14 13 12 11 10169 8 7 6 5 4 3 2 1
Aparador 60

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Divider 36

14

Market Cow Market Dog

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As we can see, SCF Furniture has 6 market question mark products or the products that
have low market share but high market growth and these are Aparador 36, Aparador 48,
Divider 36, Divider 48, Office Table 16x36, and Office Table 20x40. It also has 2 market
dog products or the products that have low market share and low market growth and
these are Aparador 60 and Divider 60.

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IX. Budget
Things Needed Price
Tarpaulins Php 15, 000
Labor of employees Php 162, 350
Supplies Php 350, 200
Gasoline and allowance Php 3, 000
Payment for the designer Php 3, 500
Truck Php 1,000, 000 – 150,000 = 850, 000
Total: Php 1, 384, 050
The budget will come from the profit that the company has saved ever since they
first started on 2004. The total budget that the company will need for its improvement is
1, 384, 050 Pesos. As of 2018, the annual profit of the company is 521, 850 Pesos. So if
the goal of 30% of increase on profit every 2 years will be achieved after the full
implementation of this marketing plan, the expenses that will be used for the
improvement of SCF Furniture will be returned to the company after 5 years.

End of Year: Profit

2019 Php 574, 035 (10% increase only)
2021 Php 746, 245.5
2023 Php 970, 119.15

X. Conclusion
We therefore conclude that SCF Furniture is a market challenger in this industry
and in order for it to be a market leader, it needs to advertise aggressively, improve its
products and service, decrease the prices of the products, have a wider product range, and
make fast deliveries. When these are executed properly, the market share of SCF
Furniture will be larger and the sales will increase causing the business to have more
profit. Even if there will be a lot of expenses to be covered, it will soon be regained by
the company and will gain even more than that. But it will not just stop at this marketing
plan, the manager shall continue to observe and analyze what the market needs, wants,
and expects the most from a furniture producer to maintain or improve SCF Furniture’s
status in the industry.

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