Republic of the Philippines

Cagayan State University

Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

BookLAT: Linaw at Tanglaw

In partial fulfillment of the Requirements in

Strategic Management

Submitted by:
Balacanao, Schrynie Lon
Battad, Gerald Michael
Bucayu, Jeremy
Clemor, Kristal Gayle
De Leon, Lesterr
Delos Santos, Jaylord
Mallillin, Kaila Mei
Quilang, Chiara Mae
Rendon, Danilo
Ultu, Crystel Joyce

Submitted To:

Mrs. Antonia Josefa Taguinod, MBA

Bachelor of Science in Accountancy

 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

I. EXECUTIVE SUMMARY
BookLAT: “Linaw at Tanglaw” is a bookstore established in year 2022, located in Mabini
Street, Centro 04, Tuguegarao City. Their offers include not only a variety of educational reading
resources for higher education students but it also extends to offer a space for learning, a study
hub designed for effective and productive learning. Booklat empowers students in their
educational journey and encourages them to pursue education and self-improvement as they
envision to be the first to go-to destination when it comes to purchasing books and learning.

The target market for BookLAT primarily consists of undergraduate and post-graduate
students and also caters to individuals seeking a dedicated study hub designed for effective
studying. They are the first to offer a 24/7 availability in the area which serves as a cutting edge.
At present, the business faces threats of rise of E-books, seasonal demand, and changes of prices
in the market but plans to expand its business through e-commerce and partnerships with
institutions.

BookLAT uses a cost-based pricing with initially 40% mark up to cover expenses and
generate profit but is subject to adjustments depending on the customers buying behavior. They
also integrated a discount or reward-based approach pricing with their membership card for their
study hub users where points can be collected and can be used as a deduction when accessing the
study hub or a discount when buying books.

With students of higher education as their target market, the company utilizes flyers,
tarpaulins, social media promotions and participation in local events and book clubs to create a
strong community presence and foster trust and loyalty among customers. By sponsoring book
festivals and connecting with readers personally, BookLAT becomes a hub for literary activities,
building lasting relationships.

BookLat will use a 5-year action to achieve the company’s objectives. Their strategic
objectives focus on product and service enhancement, sales growth, customer satisfaction,
employee retention, and social responsibility. The company’s key performance indicators include
inventory turnover ratio, online transaction rate, reward earned points, customer satisfaction, staff
retention rate, and number of books distributed. With this, the company analyzes and evaluates
details of their operations to sustain their objectives and goals of expanding the business in their
future endeavors.
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

II. BUSINESS DESCRIPTION

BookLAT: Linaw at Tanglaw is a bookstore established in the year 2022, located at
Mabini Street, Centro 04, Tuguegarao City above the NAMI-MART Convenience Store, formed
as a partnership among business partners, Lesterr De Leon and Jaylord De Los Santos, general
partners, and Crystel Joyce Ultu as a limited partner. It offers a variety of educational reading
resources for undergraduate and post-graduate students to assist them in having a more productive,
and reliable source of information in their quest for additional knowledge. Additionally, it also
offers a space for learning designed to students to think more effectively and leverage their
productivity in a place with a peaceful environment.

III. VISION, MISSION, AND CORE VALUES

Vision
BookLAT: Linaw at Tanglaw envisions becoming the premier destination for knowledge seekers,
offering a boundless array of academic resources for higher education.

Mission
To empower learners on their educational journey by providing a diverse selection of quality
books, offering the highest standard of customer service, and fostering an environment that
encourages learners in pursuit of education and self-improvement.

Core Values
 Learning Excellence: Commitment to providing premium educational resources and
fostering an environment that promotes continuous learning and academic growth.

 Accessibility and Trustworthiness: Ensuring that our bookstore offers reliable,

credible, and diverse reading materials that are easily accessible to our customers,
encouraging a sense of trust and reliability in their pursuit of knowledge.

 Transformative Environment: Creating a space that encourages effective thinking,

productivity, and peace, aiming to enhance students’ learning experiences and empower
them to excel in their educational journeys.
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

IV. COMPANY ANALYSIS

STRENGTH WEAKNESSES
 Combination of Bookstore and Study  High Utility Cost
Hub  Inventory Management
 24/7 Availability
OPPORTUNITIES THREATS
 Availability of Partnership with  Rise of E-books
Educational Institution  Seasonal Demand
 Expansion in E-commerce  Increase in the Pricing of Suppliers
 Growing Student Population in the Area

V. STRATEGIC OBJECTIVES

Focus Area Objectives

1. Business Product and Service  Increase the bookstore's inventory by 20% annually
based on the demand of the books offered.

 To launch an e-commerce platform to complement

physical stores, providing customers with a seamless
2. Sales Growth
online shopping experience.

 To implement reward systems.

 To continuously redefine book sorting and culling

3. Customer Satisfaction procedures to further reflect customers’ interests and
enhance our provided collection of books.
4. Employee Retention  To build an effective management team.

 Introduce and establish the “Book Pantry” initiative

5. Social Responsibility every 6 months to enhance customer experience and
boost overall bookstore appeal.
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

VII. KEY PERFORMANCE INDICATORS

FOCUS AREA KPI TARGET

(Objectives)

Product and  Inventory Increase inventory by 20%

Services Turnover Ratio - If the present ITR is higher than the
 Increase in previous year, then the business will
Inventory increase its inventory by 20%.

Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory

Sales and Growth Increase in sales

 E-commerce  Online - To attain 3% online transaction rate.
 Reward system Transaction rate
 Reward Earned - When the total points given is higher
Points than 10,000 points.

Online Transaction Rate= (Number of Online Transaction/Number of website Visitor) x100

Total Given Points = Total Sales x 0.01

Customer Attain 4 to 5 ratings

Satisfaction Metrics:
 Reflect  Customer 1 – Very Unsatisfied
customer satisfaction score 2 – Unsatisfied
interest 3 – Average
4 – Satisfied
5 – Very Satisfied

CSAT = (sum of satisfaction score/total respondents)

Employee Regular employment

Retention  Staff Retention - At least maintain a 75% of Staff
 Effective Rate Retention Rate
management
team

Staff retention rate = [(number of employees at start of period - number of employees lost
during period)/number of employees at start of period] x 100

Social  Average number Long term community benefits

responsibility of books - When 75% of the books collected were
 Book Pantry distributed distributed.

Total no. Of Books Distributed % = Total Collected - Remaining / Total Collected

 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan
VIII. TARGET CUSTOMERS
Our primary target customers are undergraduates and post-graduates in Tuguegarao City,
Cagayan. They present an opportunity for our bookstore to meet their varied educational interests and
reading preferences.

IX. INDUSTRY ANALYSIS

Michael Porter’s Five Forces Model is adapted to get a perspective on the state of the industry.

The Threat of new Entrant: LOW

 The significant initial investment required to set up a bookstore may deter new competitors from
entering the market.
 The regulations and requirements for establishing a bookstore may discourage new entrants from
joining the market.

Threat of new Substitutes: HIGH

 The market has changed significantly as a result of recent technological developments resulting in
the growth of e-commerce. Nowadays, it's simple for anyone, especially students, to look for the
necessary books online and buy them immediately without having to visit a bookstore.
 Customers can now easily download soft copies of books needed through online sites.

Bargaining power of buyers: HIGH

 The high bargaining power of buyers in the bookstore industry is mainly attributed to their
sensitivity to prices. With the availability of other options, customers can easily compare prices
and reviews.
 If switching from one bookstore to another involves minimal effort or expense, buyers are more
likely to explore other options. Low switching costs increase the bargaining power of buyers as
they can easily transition to alternatives without significant consequences.

Bargaining Power of Suppliers: HIGH

 A bookstore relies heavily on a couple of major publishers for a popular and in demand titles to
achieve credibility and authenticity. Therefore, those publishing houses can dominate the market
and have a greater control over book availability and pricing.

Rivalry among Competition in the Industry: HIGH

 The bookstore industry is fragmented with many different stores, all fighting for the same
customers; hence, intensifies rivalry as we compete for market share and customer loyal.
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

X. COMPETITIVE ANALYSIS

BookLAT National Pandayan Rex Bookstore C and E

Bookstore Bookshop Bookstore

Company Established Founded in Pandayan Rex Bookstore is C and E

Profile 2022 that 1942, National Bookshop one of the established in
provided Book Store, founded in pioneers in the 1993 to
economical Inc. is the 1993 aims to educational engage
books and Philippines' supply the publishing primarily in
learning largest books educational industry in the the business
space for and supplies needs of Philippines that of reprinting
college store that has every learner. was founded in and
students. provided the 1950. distributing
consumer with foreign
quality medical and
Company educational science books.
Highlights commodities.

Location 2nd Floor, Second Floor, 51 Caritan 10 Arellano St. G/F AYC
NAMI- SM Center Hwy, Tuguegarao Building, San
MART Tuguegarao Tuguegarao City, Cagayan Jacinto de
Convenience Downtown Cagayan Ermita
Store Luna St. cor. Church corner
Building, Mabini St., College
Mabini St., Brgy, Avenue
Centro 4, Tuguegarao, Mabini Street,
Tuguegarao Cagayan Tuguegarao
City, City
Cagayan
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

Key The unique It has It is recognized Known by

Pandayan
Competitiv combination established a through its providing an
focuses on
e of bookstore reputation in specialization in extensive
providing
Advantage and study hub providing educational collection of
essential
that provides customers publishing academic
supplies
convenience educational enabling them to publication,
beyond books
for students needs with create and high- curriculum-
that might be
saving their competitive educational based
an advantage
time in prices and in- books. materials and
for those
purchasing store resources.
seeking a
and learning experience.
one-stop-shop
educational
shopping.
reading
materials.

Market Target Undergraduat Students, office Students, Accounting, Students in

Information Market e and post- workers, and office Business and medical
graduate art and book workers and Law Students courses
students enthusiasts art and book

Marketing Flyers, Online Social media Online Online

Strategy tarpaulins, Promotion, promotion promotion, content
personal partnership, such as and partnerships marketing,
selling, social community Facebook and with schools and Social Media
media engagement online other educational Engagement,
advertising websites. institutions. Email
and public Campaigns,
relations. Partnerships,
and
Virtual Events
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

Product Product Books and Books, Office Business, Medical

Office and
Information and offers a study and School Accounting, Books
school
Services hub Supplies, and Codal books and
supplies and
Office E-books
stationery,
Furniture
books, home
decor and
personal care
items.

Price and High quality Medium to Inferior Superior Quality Superior

Quality of books for High Quality of Quality and of books with quality of
structure affordable books for a high prices of relatively high books with a
prices. higher prices. books. prices. relatively high
prices.

Distributio Retailing Retailing Exclusive Exclusive

Retailing
n Channels distribution Distribution
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan
XI. MARKETING PLAN
Marketing Mix Decisions
Product:
a. BookLAT offers a range of educational books for undergraduate and postgraduate. This
includes textbooks, reference material, and a curated selection of literature.
b. The offering extends to serve a dedicated study hub designed for effective studying.

Price:
a. The pricing strategy for the books would be Cost- Based Pricing. Cost-based pricing
involves determining the selling price of a product by calculating the total cost associated
with its production or acquisition and adding a predetermined profit margin. In this case,
the selling price is determined by considering the expenses incurred in obtaining each
book, such as purchase cost, shipping, and handling. To establish the selling price, a 40%
markup is added to the total cost, covering these expenses and generating a desired level of
profit.

b. The pricing strategy for the membership card employs a Discount or Reward-Based
approach. With the loyalty card, customers enjoy special discounts, rewards, and
exclusive access to the bookstore’s study hub. The card fee is 250 pesos, allowing
members to utilize the study hub for 30 days (1 month). After this period, it is at the
member’s discretion whether to avail another 30 days or not. Points are accumulated
whenever customers avail books and the points awarded will vary on the cost of the books
they purchased.Additionally, these points can be applied as deductions towards accessing
the study hub and can also be utilized as discounts when purchasing books.

Place:
The physical location of BookLAT is strategically situated on Mabini Street, Centro 04,
Tuguegarao City, above NAMI-MART Convenience Store. The location is chosen for its
proximity to universities and colleges like CSU, USL, SPUP, and UCV, making it easily
accessible to the target audience.
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan

Promotion:
BookLAT’s promotion strategy centers on highlighting its unique selling points, emphasizing
educational excellence and community engagement. This comprehensive approach aims to
showcase the bookstore’s offerings and foster a strong connection with its audience.

 Social Advertising
Facebook, Instagram, and Tiktok will use as a platform, allowing us to showcase our books
visually, connect with readers and target specific audiences.

 Personal Selling
Through individual interactions, our staff can provide personalized recommendations, address
customer queries, and create a tailored shopping experience.

 Flyers and Tarpaulins

BookLAT will use flyers and tarpaulins offer larger outdoor displays for major releases or
promotions.

 Public Relations
Active participation in local events, book clubs, and higher educational presence creates lasting
relationship to the public.
 Republic of the Philippines
Cagayan State University
Andrews Campus
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
Caritan, Tuguegarao City 3500, Cagayan