Xavier University - Ateneo de Cagayan

School of Business and Management

A.Y. 2021-2022

MRKM 7 Retail Management

Submitted by:

Group E
Borinaga, Mark Joseph
Echem, Martin Jason
Jampit, Resel
Luntayao, Larabelle Adrianne
Sarines, Jan Mico
Zia, Kessiah Aimi

Submitted to:
EnP Edgardo A. Palasan, REA, REB, MBA
COMPANY BACKGROUND

Retail is the source of Sm's substantial market presence in the Philippines.

Positioned in Downtown Manila, the first Shoemart store opened in 1958 by its
chairman Mr. Henry Sy. Sr. which sells a variety of shoes from both countries and
abroad. His business system was still remembered by his loyal shoppers and
employees. Thus his innovative approach to his customers and its service boosts to
build a highly recognized brand which makes Shoemart to grow and develop into a
full-service department store, hence, he changes its brand name into simpler and
more appropriate that used today as SM.

Mr. Sy committed to providing a one-stop shopping experience by expanding his

product line in an effort to enrich the lives of his clients. The company's slogan,
"We've Got It All For You," has evolved into a guiding philosophy for the standard of
customer service that SM upholds to this day and has contributed to its rise to fame.
For more than 60 years, SM has built up generations of devoted consumers, many of
whom still refer to the business with affection as Shoemart.

On the other hand, Mr. Sy entered the food retail industry in the middle of the 1980s
as part of his commitment to bringing mall patrons more convenience. The first SM
mall on North EDSA had the original SM Supermarket as an anchor tenant.

Vision
To build an ecosystem of sustainable businesses that are catalysts for
responsible development in the communities we serve
Mission
We will provide a consistently high standard of service to our customers, look
after the welfare of our employees and deliver sustainable returns to our
shareholders, at all times upholding the highest standards of corporate governance
and environmental stewardship in all our businesses

Organizational Chart
Product and Services

SM Retail, Inc. is the country’s largest and most diversified with its food (SM
Markets, WalterMart, Alfamart) , non-food (THE SM STORE) and specialty retail
stores (SM Appliance Center, Ace Hardware, Toy Kingdom, Baby Company, Our
Home, Homeworld, Watsons, Kultura, Sports Central, Pet Express) which are
leading players that provide consumers with an aspirational lifestyle, reliable service,
quality products and consistent convenience.

SM Retail now comprises market leading brands across food retailing, department
stores and specialty retailing. Specialty retailing now includes a wide assortment of
quality products offered through stores such as Ace Hardware, SM Appliances,
Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company, Sports
Central, Pet Express and others.
Operations (Application of Retail Mix)

Merchandise

With numerous locations across the country, SM Store is the largest chain of
department stores in the Philippines. They provide a wide variety of items for the
home, as well as clothing for men, women, and children, as well as a variety of
cosmetic goods. Along with these, you can also acquire stationery, electronics,
snacks, toys, hardware, and many more.

Customer Service

The SM Store has been a longtime preferred one-stop shop with the best product
selection, shopping convenience, and price since it opened in 1958. Along with
selling goods, SM Store also offers a variety of services, including bill payment,
tickets, remittance, currency exchange, free gift wrapping, garment modifications,
home delivery, Click & Collect, and most recently, Personal Shopper. Right now Sm
retail Inv generates a new strategy which is the “clicks'-to-bricks'”. The click signifies
their online platform of selling, and the bricks indicate the in-store selling.

Price

The SM retail store has a wide variety of merchandise and services that they can
offer. Upon its focus on providing their customers with all their needs and
satisfaction, they deliver excellent, affordable, and applicable items to their
customers in a responsible manner.

Advertising and Promotion

The president of SM Supermalls, Mr. Steven T. Tan, was asked to offer operational
tactics that could be used in the transition under the new circumstances. SM China
was ranked on the List of Marketing Innovation when Mall China announced its 2021
Professional Competitiveness List during the forum. Consumers have begun to
reevaluate their consumption patterns, consumption settings, and consumption
objects as a result of the pandemic. Additionally, mall contents and what draws
customers inside will alter. SM now divides its innovative ideas and techniques into
four primary categories: expanding its tenant mix, developing omni-channel services,
marketing to new customer segments, and generating new motivations for people to
visit malls.

The SM Store is part of SM Retail, Inc., a significant player in the retail industry in the
Philippines. SM Retail has come a long way since its founder, Henry Sy Sr., realized
his dream to open a shoe store in Manila in 1958. Today, SM's retail operations are
the country's largest and most diversified, with food, nonfood and specialty retail
stores. The SM Store continues to enhance the way it engages with its loyal
customers. This has included investments in its online shopping platform, ShopSM,
allowing customers to shop anytime, anywhere. As customers browsing and buying
behaviors have expanded, so too has The SM Store's complexity in planning
merchandise across channels. In order to delight customers with the right
merchandise while consistently meeting financial goals, the Aptos solution will
provide end-to-end support for The SM Store's merchandise financial planning
activities. This includes strategic planning and budgeting, planning by attributes,
buying and assortment strategy, in season management, and more.

SM malls are by seeking assistance from on-ground concierge and guards, or by

engaging in the strategically placed digital directories. With this, SM found the need
to further improve assistance with new technology. At the core of SM Supermalls is
customer service -to make shopping experience easy, enjoyable, and seamless. The
company understood the customer's point-of-view, and the introduction of the
country's first-ever smart customer service robot is a great way to deliver customer
service in a fun, novel way. In 2019, one of SM's key digital marketing goals is to
provide its customers with an enhanced and frictionless customer experience. It was
a threefold strategy that involved customer assistance, gamification and fun, and
serving targeted content.
Store Layout and Design

SM Engineering Design and Development is the architectural and engineering arm of

the Group's Retail and Mall properties, responsible for the development and
modernization. In the Philippines, where shopping is considered a form of recreation
and entertainment, department stores and malls are gathering places. People listen
to the buzz, and go to the venues that offer the most fun, excitement and distinctive
shopping experiences. When Shoe Mart (SM), the country's largest department store
chain, recognized this new reality, their stores hadn't been updated in more than five
years. But rather than simply modernize interi- ors, SM jumped at the opportunity to
revitalize their brand, using the shopping environment itself as a critical element in
appealing to customers new and old.

Point Design's newly conceptualized SM Department Stores now sport a fresh,

sophisticated and exciting design that offers a hard-working platform for
merchandise.
Bright colors combine with dramatic lighting to give the stores' wares greater appeal,
and attract customers to explore and spend time in their vibrant spaces. Though
designed primarily to move goods, SM's playful, fashionable environments also,
importantly, make customers feel good and the shopping experience enjoyable. And
while customers can feel excited about the new design, they're also reminded that
SM remains the store they've come to know and count on all these years.

The Point Design team is proud of the fact that their designs for SM not only look
great, but also make shopping easier and more fun for customers - and have
increased sales.

Location

In the 1980s, the company diversified and ventured into the supermarket and home
appliance store business. It opened the first "Supermall" store in 1985 in Quezon
City called SM City North EDSA. SM Supermalls is one of Southeast Asia’s biggest
developers and operator of 79 malls in the Philippines. There are existing SM
supermalls in Metro Manila, Calabarzon Region 4A, Central Luzon, Cagayan Valley,
Ilocos Region, Bicol Region,Mimaropa Region 4B, Visayas, Mindanao.

Environmental Sustainability Programs

This platform that SM corporation is made to help in creating sustainability programs

is where the company will do their best on keeping the environment safe and to keep
the people living with a clean environment. By this initiative they provide a greener
and more sustainable environment to the people, customers, community, and to the
country. When the environment is healthy, not only a lot of people will hang out more,
but also people can start their own business without being afraid of being sick and
harmed from the toxic environment.

There are three (3) pillars of SM Green Movement which are to boost sustainability
programs and create a healthy environment for everyone. The green planet which
builds and creates green spaces by designing and providing practical solutions for
clean energy, water conservation and management. Building resilience in climate
change and managing footprint for climate action is the motivation. Green Living,
together with many brands of SM invites everyone to a greener shopping experience
through SM Green Finds that makes eco-friendly products that are locally made with
natural ingredients that are affordable and easier to find. Green culture which
promotes culture of learning and leadership to inspire and bring practical green
innovations to serve customers and communities better everyday. Through this
sustainability school SM corporations develop skills and knowledge building rising
champions among people towards their journey for greenery tomorrow.

GREEN PLANET

The SM is not all about selling a lot of different kinds of products to the customers.
SM also do their best on creating a clean environment in their place. So that not only
it will attract a lot of customers, but also to hang around the place without fear of
being harmed from the toxic environment.
Greener Future with Geothermal Energy

SM Green Movement leap a huge step in the realm of renewable energy, As they
welcome (PGPC) or Philippine Geothermal Production Company, Inc. This operates
the Tiwi Mak-Ban steam fields, Tiwi is a geothermal steam that is first in the field
development in Southeast Asia followed by Mak-Ban which have been both
operational since 1979.

According to Frederic C. DyBuncio, president and chief executive officer of SM

Investments Corporation, "As a leading sustainability advocate, SMIC is pleased to
invest directly in clean renewable energy-related production, which is a national
priority and consistent with our commitments to environmental stewardship and
combating climate change."

They produce enough geothermal steam collectively to provide about 300 MW of

power. According to the framework developed by the Task Force on Climate-Related
Financial Disclosures (TCFD), PGPC is anticipated to provide sizable carbon offsets.
Geothermal energy is more sustainable than any other form of energy because it
originates from the heat of the Earth's core.

GREEN LIVING

SM sells their products to the customers, made with eco-friendly goods and the price
will be affordable, so that the customers not only save their money but also that the
products are not going to harm the environment. These products were locally made
and also hand made that extracts from natural resources that were resourcefully
made that helps to promote creativity and livelihood to our local artisan.
Green Finds

The SM Green Finds is one of the many initiatives under the SM Green Movement — a
collective effort of SM, together with its partners, customers and communities to
advocate and promote green living, green culture and a green planet. SM Green Finds
promotes clean beauty and technology, sustainable fashion and eco-friendly home tools
to its customers. They offer products made from natural ingredients that are
resourcefully made, promote local artisans and support community livelihood. According
to the United Nations Environmental Program, in order to live sustainably, one must
have an understanding of how lifestyle choices impact the world. Through the SM Find
initiative, it is easier for customers to choose products that consider the well-being of
communities and the planet everyday. SM has been working with thousands of supplier
partners for locally and sustainably made products, and has engaged its customers and
communities to take part in keeping the environment clean through its programs like
Trash to Cash and coastal cleanups. It has contributed to protecting natural
environments by rehabilitating hectares of mangroves and working toward the
declaration of marine protected areas.

Through the SM Green Movement, SM takes its commitment further by creating practical
solutions to make green living easier for everyone it serves.

From installing solar panels with 10.6 megawatts capacity to recycling an average of 8.7
million cubic meters of water in 2021; building malls with water catchments to innovating
designs such as building SM Marikina on stilts for climate resilience; SM has been in the
business of creating green spaces for Filipinos to enjoy.

With the SM Green Movement, the company expects more innovative green spaces to
rise. The newest addition to SM group's roster of green spaces is the new SM Retail
Headquarters in Pasay City.
GREEN CULTURE

SM gives education to many people on not only on how to take care of the
environment, but also to give education skills on making craft items to the people, in
order for them to find creative ways to recycle a product and to sell to the customers.

Sustainability School

The goal of sustainable schools is to consume or lessen the consumption of natural

resources such as energy and water, and produce less waste that aims for efficient
resource institutions. Through the collective efforts of SMIC among partners,
communities, and customers towards this initiative makes people knowledgeable
about this matter. The impact of this program is to provide better access to
education, health care, food security for farmers training and social inclusion. This
program includes online assessment which is self-paced and takes approximately
one hour to complete each level. Then it produced some information that gets
practical skills and knowledge from experts in the SM Group.

This program provides exclusivity and free for SM employees. And after
accomplishing this activity it provides a usable certificate on resume or open for
usage on Linkedin. There are three (3) level tests to accomplish this activity, the
basic level in which people can learn the foundational concepts of sustainability and
governance, social and environmental topics. The second one is an intermediate
level that deepens people's knowledge as a practitioner and as a reporter. Then the
last level is Advanced level that helps people become a confident practitioner with
hand-s on application guide. This program breaks down and simplifies sustainability
concepts and calculations and resource management and the environment that
enhance people's knowledge about sustainability.
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