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CHAPTER I

INTRODUCTION
History
In 1990, Prince Warehouse Club, Inc. is a chain of retail and wholesale
stores based in Cebu City, Philippines. Founded by Robert L. Go, Prince opened
the pioneering branch at the North Reclamation Area by converting a warehouse
into a store with a single cash register initially selling glassware, kitchenware,
plastic ware and other household items.
A year later, due to a growing demand from customers, Prince Warehouse
Club expanded into selling grocery items, gaining a wide range of customers and
wholesalers. After two years, in 1993, Robert Go opened the 2nd store at A.C.
Cortes, Mandaue City which has a bigger store size than the first. It was again a
successful venture, and was later assigned to Nelson L. Go, the brother who is
now managing the Prince Mandaue chain of stores.
Currently, the Prince group of stores is expanding outside cebu and to the
rest of Visayas and Mindanao. The chain has branches in North Reclamation
Area, Minglanilla, Danao, Argao, and MC CityHall in Cebu, Leyte branches in
Baybay, Maasin, Naval & Abuyog, Mindanao branches in Cabadbaran &
Oroquieta, Negros branches in Silay & Tanjay.
Today, the Prince group of companies upholds the empowerment of its
total workforce through a strong adherence to its values and commitment to
render the highest customer service satisfaction while being a household name
for quality low priced merchandise to the community served.

Prince Hyper-mart Naval


The Prince Hyper-mart Naval was established last November 25, 2011
and owned by Robert L. Go. The store is administered under Mr. Christian De la
Soga. It is located in Padre Inocentes St., Naval, Biliran proper and opposite to
Naval State University.
The Prince Group of stores vision is OTOP which means ONE TOWN,
ONE PRINCE. It has Core Values which is specifically named as Positive
Outlook, Results Driven, Integrity, GreeN, Customer Centric, and Extra Mile. That
is where the store name derived from. The bright red and yellow colors of the
Prince Hyper-mart represent its unique style and design in capturing its
customers attention. It really stands out and it is hard to miss out when one
travels through Naval. The company serves the underserved communities to
whom their products and service are needed the most.
Prince Hyper-mart provides a variety of merchandises. The store has a
selling area and it is composed of three departments: (1) Fast-MovingConsumer-Goods (FMCG), (2) General Merchandise (GM), and (3) Department
Store (DS). These three departments have different objectives in aiming their
target. The FMCG department is in-charge for daily needs products such as
noodles, canned goods, fun snacks, and the like. The GM is in control for nonfood products such as batteries, clothing, personal or beauty care products,
smoking accessory, etc. The DS is in command for furniture, appliances, home
furnishings, cosmetics, jewelry, paint and hardware, electronics, and sporting
items.

Marketing Strategy
Prince Hyper-mart is targeting to build up more outlets to double up their
target market share. Prince is aiming to have fifty (50) stores

all over the

Philippines by year 2020. It is very self-explanatory that the more stores they
have, the more opportunities they can get. Therefore, Prince Hyper-mart applies
strategies that define the approach, tactics and strategic plan to attract
customers and achieve its business goals. Each strategy consists of short- and
long-term plans outlining the methods and activities necessary to reach
milestones and goals. The Marketing Mix Strategy or 4Ps and Symbiosis
Strategy are employed to achieve their objectives.
The Marketing Mix Strategy or 4Ps
Prince Hyper-mart satisfies the products and services need of its target
market by applying the Marketing Mix Strategy: the 4Ps (Product, Price, Place,
and Promotion).
Prince Hyper-mart 4Ps
Product

Product Segmentation, Services offered: Remittance, Prince


Card, Dollar Exchange, E-load, PO Card, Gift Cheque

Price

Buy 1 take 1, Buy 4 free 1, Bodega Sale

Place

Near to school and located to naval proper

Promotion

Radio, flyers, social media advertisement, own web-portal


Figure 1. Prince Hyper-mart 4Ps

Product - The important thing to remember when offering menu items to


customers is that they have a choice. Prince Hyper-mart has a variety of

goods to display for customers selection. It also applies product


segmentation to organize its products so the customers can easily locate the
items they are looking for. Prince Hyper-mart offers special services such as
Remittance, Prince Card, Dollar Exchange, E-load, PO Card, Gift Cheque.

Price- Pricing is difficult and must reflect supply and demand relationship.
Pricing a product too high or too low could mean a loss of sales for the
organization. The customer's perception of value is an important determinant
of the price charged. Prince Hyper-mart has applied pricing strategy to
generate the maximum amount of profit possible, but not at the expense of
losing customers along the way such as Buy 1 take 1, Buy 4 free 1, Bodega
Sale.

Place - Place in the marketing mix, is not just about the physical location or
distribution points for products. It encompasses the management of a range
of processes involved in bringing products to the end consumer. Prince
Hyper-mart is settled where many people can see them. The location is easy
to find as it is near to school and located to town proper.

Promotion - The objectives of product promotion are to increase sales,


attract customers, improve product recognition and enhance brand identity.
Product promotion benefits to generate consumer demand by providing
needed information about product availability and uses. Prince Hyper-mart
promotes its supermarket by advertising on the radio, internet, flyers, etc.

Prince Hyper-Mart Latest Promotion

Pre-Summer Pahurot Promo ws the latest promo from March 18-27, 2016.
It offers up to 50% discount in selected Department Store items.

Prince Hyper-Mart Continuous Promotion

Bills Payment Service - Prince Hyper-mart offers newest Bills Payment


Service. Bills Payment made Easy, Secure and Hassle Free! Customers can
now

pay

their

bills

ranging

from

water

utilities,

power

utilities,

telecommunication, loans and financing, airline companies, insurance


providers, cable and internet. So theres no need for them to visit different
payment centers. The customers just have to go to the nearest Prince Hypermart Branch and pay ALL their bills.

Christmas Holiday Baskets - Prince Hyper-mart Christmas Season Promo


offers joyful toast and delightful ingredients for Christmas gatherings and will
completely make Christmas Season into joyful memories. Prince Hyper-mart
serves the better package and gift solutions for the special people in
customers wish list and spread Christmas cheer with Holiday Baskets filled
with good quality brands.
Symbiosis Strategy
When talking about Symbiosis, it means looking for the possibility of the

ultimate value proposition for a customer, which is impossible to produce alone.


Symbiosis model is considered as a major evolutionary concept and strategic
approach to collaboratively create value that would be impossible to deliver
alone. The idea of Symbiosis between customer and company can be described
with levels of synergy: a) product centric b) customer centric c) symbiosis.

Symbiosis can be based on direct collaboration between company and customer


or between companies creating value together for customer.
Prince has been supporting potential sari-sari owners who are willing to
have their own business but they do not have a capital to start with. Therefore,
Prince Hyper-mart conducts interview to individuals who are determined enough
to run a business and includes their names for background screening. When they
pass it, then Prince will put up a store and provide stocks at their own expense.
Granted individuals can have their Sari-Sari Store and they will get their stocks of
course from Prince. Hence, there will be a mutual relationship between Prince
and its granted customers.

Figure 2. Symbiosis Strategy

Competitive Advantage
Prince Hyper-mart Naval has great advantages compare to its
competitors. Moreover, Prince Hyper-mart has applied many edges in terms of
business strategies. Great advantages are the following:

Marketing Strategy. Prince Hyper-mart used the 4Ps and Symbiosis


Strategy for guiding its business into the development of financial goals.

Micro-financing program. This program is very promising for Prince


Hyper-mart as it builds good relationship between the company and its
customers by supporting loyal sari-sari storeowners who have limited
capital to grow their business.

Special services offered. Prince Hyper-mart offers special services such


as Remittance, Prince Card, Dollar Exchange, E-load, PO Card, and Gift
Cheque.

External Environment
The external environment of Prince Hyper-mart is those factors outside
the company that affect its ability to function. It includes the following:
1. Gradual development of economy in Naval, Biliran
2. Increase of sari-sari storeowners supported by Prince Hyper-mart
3. Increase of population, including foreigners, in Biliran Province
4. Government regulations in business establishments
5. Interruptions in internet connection
6. Advertisement works well in persuading customers
7. Business operation is very dependent on modern technology

8. Customers changeable preferences


9. Market activity of grocery business is very active
10. Calamities hinder business operations
11. Sometimes there is power outage that causes business interruptions
Internal Environment
An organization's internal environment is composed of the elements within
the organization including the following factors:
1. Marketing capabilities is properly observed
2. Operation is advantage by the use of modern technologies
3. Crowded premises for their displayed products
4. Training is required for the employees
5. Brand awareness and reputation
6. Small parking area
7. Encouraging organizational culture with customer centric
8. Company is conserving electricity for Eco-friendly
9. Company is financially stable
10. Proper documentation
11. Company offers discount through suki cards
12. Organizational structure is in need for improvement
13. Employees enjoy the benefits offered by the company
14. Vulnerable to vital staff being sick, leaves, etc.
15. Vulnerable to power interruption

Table 1
SWOT Analysis
Prince Hyper-mart Naval SWOT
Strengths
1. Company is financially stable
2. Marketing capabilities is properly
observed
3. Operation is advantage by the use of
modern technologies
4. Well-trained employees
5. Brand awareness and reputation
6. Encouraging organization culture with
customer centric

Weaknesses
1. Crowded premises for their displayed
products
2. Small parking area
3. Organizational structure is in need for
improvement
4. Vulnerable to vital staff being sick,
leaves, etc.
5. Vulnerable to power interruption

7. Proper documentations
8. Company offers discount through suki
cards
9. Employees enjoy the benefits offered by
the company
10. Company is conserving electricity for Eco
friendly
Opportunities
1. Gradual development of economy in
Naval, Biliran
2. Increase of sari-sari storeowners
supported by Prince Hyper-mart
3. Increase of population, including
foreigners, in Biliran Province
4. Government regulations on grocery
business
5. Advertisement works well in persuading
customers

Threats
1. Interruptions in internet connection
2. Business operation is dependent on
modern technology
3. Market activity of grocery business is
very active
4. Sometimes there is power outage that
causes business interruptions
5. Customers changeable preferences
6. Calamities hinder business operations

10

SWOT Statement
1. Company is financially stable and there is an increase of population, including
foreigners, in Biliran Province (S1 and O2)
2. Gradual development of economy in Naval, Biliran due to increase of sari-sari
storeowners supported by Prince Hyper-mart (S1 and O6)
3. Brand awareness and reputation because of increase of sari-sari storeowners
supported by Prince Hyper-mart (S5 and O2)
4. Vulnerable to power interruption because the companys operation is
dependent on technology (W5 and T2)
5. Marketing capabilities is properly observed as apparently seen in the increase
of population, including foreigners, in Biliran Province (S2 and O3)
6. Vulnerable to power interruption and it can be a threat as sometimes there is
power outage that causes business interruptions (W5 and T4)
7. Vulnerable to vital staff being sick, leaves, etc due to calamities that hinder
business operations (W4 and T6)
8. Increase of population, including foreigners, in Biliran Province and that is the
reason why Market activity of grocery business is very active (O3 and T3)
9. Operation is advantage by the use of modern technologies yet it is vulnerable
to power interruption (S3 and W5)
10. Operation is advantage by the use of modern technologies yet it is a threat
as business operation is dependent on modern technology (S3 and T2)