Republic of the Philippines

Don Honorio Ventura State University

Bacolor, Pampanga

Undergraduate School

In Partial Fulfillment of the Requirements for the

Degree of Bachelor of Science in Business Administration Major in Marketing

under Ms. KD R. Manio

Remolona, Kclyn

Samson, Jemperson

Siytoo, Joanna Jane C.

June 2022
 I. INTRODUCTION
Retail businesses sell items or services to consumers for their consumption and desires. It
includes drug, clothing, accessories, foods and beverages,convenience stores and groceries.
Here in the Philippines, there has many retail businesses that arise and became successful.
According to the study of Kantar Worldpanel, a global research firm, the modern trade channel
which consists of supermarkets, hypermarkets, department stores and convenience stores has
been steadily rising in the country in the past three years and Kantar identified the top retailers
and it includes Puregold, SM, Gaisano, Mercury Drugs and Robinson. This term paper will focus
and tackle the one of the top retailer when it comes to books and school supplies here in the
Philippines which is the NBS. What is NBS?
National Book Strore Inc. or NBS own and operates book stores that offers educational,
professional and social communication products. It was founded by Socorro “Coring” Ramos
and her husband Jose Ramos more than 75 years ago. She started working at a bookstore and
when she learned a lot on her work, she decided to open her own book shop together with her
husband. Despite of not having finished college, she still recognized the value and power of
education. With hard work and perseverance, Coring has been recognized for her outstanding
success in the Philippines and to the larger world and she was awarded as 2005 winner of Ernst
and Young’s Philippine Entrepreneur of the year. NBS has grown to become one of the
Philippines’ best-loved brands with over 230 branches and 2,500 employees. NBS serves their
customers here in the Philippines for seventy five years and it became as the country’s largest
books and supplies. While NBS providing the needs of their customers , the company also
focusing on applying their core values. In fact, they established the National Book store
Foundation, Inc(NBSFI) that helps the unprivileged children through education empowerment.
These bookstores has also projects like Project Aral, Project Aklat Book Drive, Dry Library: Mitch
ALBOM-NBSFI Project and Red Out Loud Challenge that encourages the youth to participate to
have the awareness on the values of reading and education. NBS has been providing the
consumer affordable and high quality educational commodities. Aside from having a hundreds
of branches all over the country, NBS has also some mini outlets named National Book Store-
Book Express and Specialty bookstores which is the Powerbooks. These days, the family
founder operates three publishing imprints, department store, Music store, several
convenience and gift shops.
The purpose of this study is to emphasize the importance of how retail companies operate,
specifically the National Book Store Incorporation, a local company. The main goal of this is to
learn about the strategic management of how National Book Store Inc. achieved success in the
Philippines. The company manufactures retail products such as school and office supplies for
the needs of its target market. The company are also providing competitive advantages over
competitors and developing ideas on how to overcome the pros and cons of running a retail
company. Furthermore, this term paper will also serve as a reference to future entrepreneurs
and anyone who plans to engage in the business field.
 II. LOCAL RETAIL BUSINESS
National Book Store Inc. falls under the specialty retail store as it focuses more on specific
product category which is school supplies. It is the leading retail chain of books and other
supplies related to schools as well as offices in the Philippines. The products of National
Bookstore specifically the school supplies, are mostly aimed for the students and office worker
consumption and needs. It offers branded school supplies like Stabilo, Staedler, Cattleya and
more. In fact, this company have their own product line called “Best Buy” which serve as the
best option for their consumers because of more affordable prices than other brands. This book
store would be seen near schools, universities, in malls and in communities where their
customers would most likely to be found.

III. TARGET MARKET OF THE RETAIL BUSINESS

Target market is a group of potential customers which is chosen by a company to sell their
product. These customers had been chosen in reason of they are fit to the product, and there is
an assurance that they will avail the product of the said company.
National Book Store is one of the successful retail business in the Philippines business industry
and it offers wide range of products. It is known and became popular for providing good quality
products specially school supplies, which targets the necessities of students and office workers.
These professional workers such as teachers who use school supplies to teach students, artists
who create art works using paintings, papers, canvas, and other art materials. Authors who
write stories, fantasy, sci-fi, and other genres in order to publish them as books. Journalists
write news, articles, histories, and other important information for adults to read. As well as,
engineers, accountants and architects who use rulers, high-quality pens scientific calculator and
other work materials, which they used in their jobs. This company primarily caters book persons,
who learn by reading and collect books for their shelves.
Furthermore, the company does not limit its product to students and office workers but also to
kids. National Book Store also aimed for kids, as they also offer products such as toys, coloring
books, crayons and more. National Book Store, Inc. assists its customers in broadening their
horizons, learning new things, and honing their skills in order to achieve success.

IV. COMPETITIVE ADVANTAGE

 Cost Leadership Strategy

Cost Leadership Strategy aims to give a lower price in the product while providing a satisfactory
quality and attracts consumers to be profitable. Even this strategy may affect the whole
company, still it is an effective strategy because it helps the company to get customer
satisfaction and obtain their loyalty. The company that use this kind of strategy has the
advantage because new businesses will be discouraged to enter the firm since it would be
difficult for them to attract customers.
National Book Store offers a quality school and office supplies for students and workers. This
students and workers which are the main consumers of their products, know what the
company offers them which is their needs so that the consumer are willing to pay the given
prices since using the products will maximize their utility. National Book Store wants the
students be able to afford to buy school supplies with their own allowance. So, the company set
the price to every product in an affordable level while keeping the best quality on it. According
to research, the company uses “Product Line Pricing” where in their products are priced
differently according to their features, quality and brand. They also use “Bundle Pricing” where
in reducing prices are present. In addition, their pricing strategy has been one of their
advantage which is offering affordable prices compare to other book stores. Moreover, it was
considered as the one of the bookstores having an effective cost leadership strategy.

 Differentiation Strategy
To set themselves apart from the competition, National Book Store prioritized quality and set
their own prices for their products. Wherein, consumers are willing to pay the set prices,
because they know what National Book Store offers them that meets their needs. Fortunately,
National Book Store has a variety of pricing strategies to meet the needs of their diverse
customer base. It employs Product Line Pricing, as evidenced by the numerous brands of the
same products that they offer. Those products are obviously priced differently and in
accordance with the features of the product and the benefit received by the consumers.
An example of this is the notebooks that National Book Store sells. Unbranded notebooks have
rough and thin leaves, whereas branded notebooks, such as Corona or Cattleya have smoother
and thicker leaves that National Book Store are usually offering. The prices of the two products
differ, with the branded products being more expensive. This reflects National Book Store's
Product line pricing as the more features or good quality a product has, the higher its price
should be. National Book Store also employs “Bundle Pricing” in which it bundles products at a
discounted price that's more convenient to consumers.

 Innovative Strategy
It is kind of strategy that deals on the development of the different assets of a company.
Companies should have an effective innovative strategy to achieve their future organizational
growth. It is very important to a company because it helps the company to achieve their long-
term success.
The National Book store Inc. has this kind of strategy for them to be continually profitable and
to maintain the loyalty of their customers. Just like for example, National Book Store are not
only aiming to provide the needs of the students and workers, but they also want to help the
environment. The company has this RED (Reduce Earth’s Destruction) bag where in it promotes
the way of reducing solid waste by limiting the use of plastic bags in retail stores. This new
reusable shopping bag can give a greater influence to the consumers of their products
especially to the students to save the earth and reverse the harmful practices when it comes to
solid waste into a good one. With the launch of this RED bag, National Book Store Inc. goal is to
bring change with the Filipino’s consumption practices and to do their part in taking care of the
environment.
The company is open to keep their products modernize. In fact, National Book Store try to offer
exclusive products to their customers by partnering with their vendors in developing lines and
creating their own private label brands, which is the Best Buy. In location, the company
continues to find locations, specifically near schools and universities, to easily access their
consumers and being profitable at the same time.

 Operational Effectiveness Strategy

This strategy talks about how a company operates their business in the most effective way. This
is in order to achieve the company’s objectives on time or in more fast way but still providing
the best quality products in order to satisfy the customers. There is no doubt why National
Bookstore became popular nationwide, as it offers the best quality product in more affordable
price which made their customers rely on their products, especially Filipino people. This only
means that the company’s operational strategy is effective.

 Technology Based Competitive Strategy

National Book Store, Inc. employs promotional strategies in order to stay in touch with their
consumers and to communicate with their target market. The fact that their brand is already
well-known in the Philippines. As we all know, product promotion can help to increase its
consumers and introduce its products through advertisements like sales talking to give their
consumers an idea about their products.
Although their promotional strategies are not aggressive like with other companies in other
industries, National Book Store, Inc. still uses promotions to remind customers of the
company's presence in the market, to keep the customers loyalty to the brand. National Book
Store employs a loyalty program called "Laking National" to emphasize the company's brand's
affinity with its most valued and loyal customers like students and office workers. Laking
National was founded to retain National Book Store's most valuable customers and to provide
additional value for the business they have provided over the years. Members of the Laking
National program earn points for the products they purchase and receive discounts on certain
items as well as privileges to use services from partner agencies. The company also capitalizes
on seasonal sales, particularly during the months of May and June, when demand for school
supplies is high.

 Adaptability Strategy
NBS Inc. has been experiencing unpredictable crisis in their business for the past 80 years. The
retail company did not give up on its goal of consistently serving and producing retail products
for its customers. Rather, they think of ways to solve those problems and reach out to their
customers. The pandemic has only recently begun, in the year 2020. Whereas the majority of
their buyers are unreachable, malls and other NBS branches have been impacted in the areas
where they are located.
According to the posted announcement on their social media accounts that have reached the
alligations, claims about National Book Store's closure of branches causes of pandemic in
"expensive malls" circulated on social media. "Only stand-alone shall stay, Going online".
National Book Store categorically denies the social media post and assures all of their partners
and customers that the story was not true. Despite the challenges posed by the COVID-19
pandemic, National Book Store is working tirelessly to adapt to the current situation and
continue providing books and supplies to every “Laking National”. According to the statement
provided by the company that the support given to them by their mall partners, especially
Ayala, Robinsons, and SM, in those malls most of their stores are located, has given them a
chance to focus their energies in trying to overcome this crisis and continue to serve their
customers and communities. While a small number of non-performing locations may be
evaluated for closure or downsizing as part of our normal course of business, the vast majority
of stores nationwide will remain open to serve the customer’s homeschooling, distance
learning, and work from home needs, with stringent protocols in place to ensure their
customers safety. They are strengthening their e-commerce platforms, NBS Site:
www.nationalbookstore.//com and our official stores on Shopee and Lazada, to make it easier
for the customers to shop online. They are also developing new channels to enable customers
to shop safely and conveniently from home, including Text to Order via SMS or Viber and Chat
to Shop on Facebook Messenger.
Since its inception nearly 80 years ago, National Book Store has overcome numerous challenges
and obstacles. Still, here they are making their way to the market to provide our needs. "We
remain committed to our promise of being your lifelong partner in learning, creativity, and self-
expression, and will strive to continue fulfilling this promise as best we can," National Book
Store stated. "Thank you to all our mall partners, banks, suppliers, and most importantly, our
loyal customers for your continued support during this challenging time." It has been proven
that National Book Store, Inc. provides us its adaptability competitive advantage and is well
prepared to adapt in today's volatile and unpredictable environment. They devised a strategy in
place for reaching out to their customers and meeting their needs during a crisis.

 The Information Advantage

The Information Advantage is one of the reason why a business leads to success. The use of
these information helps the company in order to stand out among its competitors. It is very
significant as it contributes to the company’s decision making and to catch up with current
trends in the economic field.
The National Book Store knew that their company become a huge and has an integral part
among the Filipinos’ lives. They give options to its consumers to choose the products and
brands that suit their tastes and that fit in their wallet. National Bookstore products have
become a necessity for students and office workers. So much so, that Filipinos equate and refer
to bookstores as National, like how photocopying is equated to Xerox and marker to Pentel.
Filipinos rely so much on National Bookstore providing them quality products that Filipinos no
longer look at other bookstores in the market and instead, focus only on National Book Store.
So, in my own perspective, these encouraged the company to become more consistent in every
product they produced and give what is best for their customers.

V. CONCLUSION
National Book Store is one of the most leading retail chain of books and other supplies such as
school supplies here in the Philippines. For more than 75 years, we can say that this business is
more than successful as it has an effective strategy and continuing the legacy as one of the top
retail business in the country. This term paper provides us learnings about on how this
company started up until it became successful. They provide a good service and quality product
for decades, and this company takes pride in its role as an institution that supports education
and enhances lives by providing the widest selection of educational, professional and social
communication products.
Furthermore, it is truly helpful that they are giving the affordable price level to their consumers
while giving the best quality on it. It is good that they are using their business with a purpose
while being profitable at the same time. Also, the National Book store has this advocacy and
community campaign wherein they spread love of reading and learning which is aligned with
their business and that can help their consumers specially students to be more aware about the
importance of education. Another thing is, as a business owner, we always think that the
competition in the market place is always. Many companies have the power to take you down
even your business is successful, because they are providing an effective and innovative
strategies.
As a student, we are not knowledgeable enough when it comes in the reality of business unless
we finally engage in it. Nevertheless, we recommend to always remember the most important
thing when you engaged in the business industry, and that is having an effective strategy. We
believe that having an effective strategy leads the business to its success, as it generates the
whole business and leads the business to the right path. These strategies must include the
marketing strategy, the perfect location suitable to your business, the proper distribution of
positions of employees and an effective long-term plan.
Business should always apply all the strategies mentioned above. Also, ensure that every
business owners are knowledgeable enough and have all the information needed for the sake
of their established business. Lastly, always remember that not everyone on the top, will always
remain on top. If the business wants to retain its position in the market, they must check what
are the needs and wants of the market considering their customer's preferences and to
innovate on time.
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