Notre Dame University

Graduate School
Cotabato City, Philippines
Master in Business Administration Program

A
P.O.W.E.R Case Analysis on:

FORMS & GRAPHICS, CO.

In Partial Fulfilment of the Academic Requirements of the subject:

BA 611 – MARKETING MANAGEMENT

Presented to:

Prof. Joseph A. Castillon, MBA

Third Trimester: A.Y 2019-2020

Submitted by: Ronsard-Novem N. Timan

I. Introduction

Forms & Graphics, Co. is a company that provides quality printing, advertising,

photography, scanning and publishing services. It is located in Parehouse Building along

EDSA in Mandaluyong City. It offers brochures, flyers, leaflets, tags and labels, backlit

posters are some of the promotional and campaign products they provide. The company

is a spin-off of previously FORMS Corp. but closed in early 1994 due to labor problems

but they re-opened under new business name management.

The company has packaged its image as “one-stop-shop” and labelled its line of

service as professional “imaging”. The company belongs to a newly born industry and

most companies that engage in the one-stop print business are already established in

the pre-press. This type of industry is different because of its target market are those

businesses that require design, photography and printing services offered by external

agencies.

II. Problem of the Case

Because of the distinct industry and limited target market, what is the good way for Forms

& Graphics, Co. to avoid loss?

III. Objectives

• To boost the revenue to avoid the loss of the company through brand and

product recognition.
 Areas of Consideration

FORMS & GRAPHICS, CO

Income Statement
For the Four-Month period ended Dec. 31, 1994

Income ₱ 117,712.34
Expenses
Taxes 4,725.00
Postage, Tel., & Comm. 11,743.71
Representation 26,320.64
Light & Water 3,666.67
Office Supplies 11,846.92
Repairs & Maintenance 50,887.38
Transportation 6,056.70
Depreciation 14,232.56
Miscellaneous 30,138.92

Total Expense ₱ 159,618.50

Net Loss for the Period ₱ (41,906.16)

IV. Workable Alternative Courses of Action

WACA 1: Create branding strategy through email newsletters and websites.

Advantage: Newsletters and online websites allow customers and clients to give

more in-depth information to readers than an ad.

Disadvantage: In some cases, a newsletter may not be received by the recipient.

Reasons for this could be the spam filters used by many people. So, a

newsletter might not get through to those who have subscribed

because is rejected as spam.

WACA 2: Develop Rewards Programs, Reward Referrals and Reviews

Advantage: Rewards Programs offers a direct line to customers, making

communication much easier and create customer loyalty.

Disadvantage: It’s very hard to design a loyalty program that is based on the

sustainable competitive advantage that cannot be copied. Just like the

products, loyalty programs are everywhere and may appear identical.

They all have similar membership provisions, purchase requirements,

and benefits.
V. Evaluation of Workable Alternative Courses of Action

WACA 1 WACA 2
Decision Criteria Weight
Rate Score Rate Score

0.6 0.9
Cost-Effective 30% 2 3

0.2 0.4
Market Profitability 10% 2 4

0.6 0.4
Service Level 20% 3 2

0.6 0.6
Usage Behavior 20% 3 3

0.6 1
Information Sources and Influence 20% 3 5

2.6 3.3
SCORE 100%

ALTERNATIVE RANKING 2 1
VI. Recommendation

Customer loyalty is something that all companies should aspire to simply by virtue

of their existence: The point of starting a for-profit company is to attract and keep happy

customers who buy your products to drive revenue. Loyal customers convert and spend

more with brands they're loyal too more often, and they tell their friends and colleagues

about those brands, which helps drive free referrals. Finding a balance between

attainable and desirable rewards is a challenge for most companies designing loyalty

programs. One way to combat this is to implement a tiered system which rewards initial

loyalty and encourages more purchases.

Present small rewards as a base offering for being a part of the program, and then

encourage repeat customers by increasing the value of the rewards as the customer

moves up the loyalty ladder. This helps solve the problem of members forgetting about

their points and never redeeming them because the time between purchase and

gratification is too long.