FAR EASTERN UNIVERSITY - MAKATI

Master in Business Administration

Prepared by:

Espanola, Kasmir Leigh G.

Villarba, Lyngie R.

January 26, 2019

Prof. Angelo A. Abejero
 I. Executive Summary

This report aims to show and provide a Marketing Plan for Fisher Mall and highlight the
integration of SMEs in the shopping mall in the Philippine setting. This report also contains marketing
plan components including business analysis, situation/market trend in the retail industry, and
competitor analysis. Fisher Mall’s objective, marketing strategies in terms of 4 Ps marketing mix is also
included in this paper.

II. Current Market Situation

 The Company

Fisher Mall is a project of Irma Fishing which is considered as country’s largest galunggong
supplier working in food retailers, food products, restaurants and seafood business activities.The Fisher
Mall is a new player in the Philippine mall industry, focused on developing and operating shopping,
dining, and entertainment havens to cater to the needs and wants of Filipino families.The first Fisher
Mall is an approximately 110,000 sqm. indoor-mall with an open-air fashion and lifestyle extension area,
located along Quezon Avenue corner Roosevelt Avenue, in Quezon City. It opened on January 29, 2014.
It offers a unique and exciting shopping experience with products cheaper than in wet markets or bigger
supermarket chains.It houses over 250 boutiques, restaurants, kiosks, and government and service
establishments, five world-class cinemas, a top-of-the-line VIP cinema and gaming center, a well-stocked
Supermarket and Department Store, and function areas capable of accommodating different types of
events and exhibits.Mallgoers will also be treated to a space allotted for fashion-forward trends as well
as small retailers.

Fisher Mall is a family-owned establishment which was named to reflect the family’s well
established roots and heredity in the fishing industry. The family ventured into this retail business, with
the vision of being at the forefront of mall development by providing a unique and constantly innovating
customer experience and “Creating a place for each family to Find All and Be All”.Total customer
satisfaction is constantly in their minds when they are designing the mall, building the amenities and
choosing all the equipment to harness in the mall. They are committed to the principles of quality,
beauty, functionality and completeness.The commitment for only the best is a reflection of the family’s
attitude toward business.Fisher Mall and its entertainment zones are operated by Mallers Management
Corporation headed by its President Robert Raymond Del Rosario and co-chaired by Paul Gerard Del
Rosario. Amongst the anchor stores is the Fisher Fashion Store, the department store under the helm of
AileenetteMoleen Perez-Del Rosario, President of Clothers Asia. Fisher Supermarket is managed by
Roberto Alfonso Del Rosario, President of Fisherfoods Corporation.

 Situation Analysis, Market Trends

Fisher Mall made an impact in the retail industry because as per the President, they understand
the needs of small-medium enterprises starting up in retail. Looking at the economy, the company was
given two credit ratings because of the growth of the middle class sector and jobs are increasing. They
are after the growing consumption spending in the country so they will expand their presence in the
supermarket and mall business.

The 2017 List of Establishments of the Philippine Statistics Authority (PSA) recorded a total of
924,721 business enterprises operating in the Philippines. Micro, small and medium enterprises
(MSMEs) account for 99.56% (920,677) of the total establishments, of which 89.59% (828,436) were
microenterprises, 9.56% (88,412) were small enterprises, and 0.41% (3,829) were medium enterprises.
Large enterprises made up the remaining 0.44% (4,044).

MSMEs generated a total of 4,922,251 jobs in 2017 versus 2,909,838 for the large enterprises.
This indicates that MSMEs contributed almost 62.9% of the total jobs generated by all types of business
establishments that year. Of these, 30.3% or 2,369,748 jobs were generated by micro enterprises; 25.9%
or 2,024,470 by small enterprises; and 6.7% or 528,033 by medium enterprises.

However, they face a host of growth challenges—including lack of technical capacity, difficulty in
accessing regional markets in ASEAN and, notably, a lack of access to finance—leaving them accounting
for just 35 percent of GDP.Most SMEs’ financing needs exceed the small loans that microfinance
institutions provide. Yet larger commercial banks often find it too expensive to lend to SMEs because
the cost of assessing whether an SME is creditworthy is high relative to the return banks could earn by
lending to them. Many banks also perceive SMEs as being too risky and more likely to default on loans.
Promoting SME growth is a central focus of national policy and all banks are mandated to set aside at
least 8 percent of their total loan portfolios for SMEs. The Development Bank of the Philippines (DBP) is
a development banking institution mandated to provide medium and long term loans to SMEs. In 2013,
DBP began to roll out its new Retail Lending Program for Micro and Small Enterprises in 45 bank
branches across the country. Under this program, DBP will make lending decisions using credit scoring
software, which will determine loan approvals based on verifiable client information and an objective
credit score, replacing the current approval process which relies on loan officers’ perceptions about
applicants’ creditworthiness.The recent trends in value added by SMEs in the country and their sales
indicate a growing share. SMEs as a whole have been steadily growing year after year with the overall
industrial growth, as indicated by relevant factors, including the number of establishments and the
number of employees. Nevertheless, compared to the absolute number of establishments and
employment, SMEs hold relatively small share of value added and sales, less than 30%, thus suggesting
their development potential in the country.

 Consumer Behavior

Shopping malls are an emerging trend in the global arena. The first thing that comes in our mind
about the shopping malls is that it is a big enclosed building housing a variety of shops or products.
Increased visibility and consumption of upscale brands have made consumers aware of the variety of
choices available. Malls play a major role in consumers’ lifestyle and serve their needs for socialization
and recreational activities, entertainment and even societal status. That role is expected to further grow
in the future as individuals increasingly integrate their personal lives with the consumption of products,
brands and experiences.
FT Confidential Research’s fourth-quarter 2017 survey of 1,000 urban Filipinos confirmed their
attachment to malls. The survey showed that 11% of respondents visit malls every day, the most across
the ASEAN-5 economies. Almost a quarter of our respondents will visit malls more often in the next 12
months, with 68% saying that the frequency of their visits will remain the same. Slightly more than a
quarter also said that they would spend more in malls, while almost half said their spending would
remain the same.
In 2016, the Philippines recorded an impressive economic growth rate of 6.8% and this
momentum is expected to continue. By the World Bank’s definition, the Philippines remain a lower
middle income country at present, with a considerable income gap between it and richer ASEAN
countries such as Thailand and Malaysia. However, if the current level of economic growth can be
sustained, the Philippines is on track to become an upper-middle income country by 2022.
 The chief factors fueling the country’s current consumption power are foreign receipts from
overseas remittance and business processing outsourcing (BPO) services.The industry is driving income
growth, as BPO jobs are among the highest-paying jobs at all levels.Final consumption expenditure of
the Philippines almost tripled in the decade up to 2015 anchored by strong economic growth, consumer
confidence with the Philippines is now at a 10-year high and it topped world rankings in 2016.

Generally speaking, Filipino consumers still make use of the informal sector, mainly in the form
of sari-sari stores (small neighborhood stores), in order to shop for groceries and personal care
products. Sari-sari stores offer low prices and a greater degree of convenience to consumers. Increase in
purchasing power, modern retail in the country is expanding rapidly; hence it is projected that by 2020
the total retail value will also increase.

Filipino urban dwellers usually visit large shopping malls in city centres for big ticket items and
quality products. They regard visiting shopping malls as a weekend leisure activity which involves family
and friends. Additionally, more than 80% of Filipinos are Catholic. It is not uncommon to find chapels in
large shopping malls, alongside shops and restaurants.The majority of foreign retailers with stand-alone
stores such as H&M, Uniqlo and Forever 21 have entered the Philippine market by forming partnership
with local businesses. Smaller brands and SMEs, including those from Hong Kong, could work with local
retail operators to supply their supermarkets and department stores.
  Competition

The country's top three retailers, Ayala Land Inc., SM Prime and Robinsons Land, are planning to
launch more shopping malls and account for the bulk of the new retail space in 2018 on the back of
rising incomes.It also said that approximately 600,000 sqm of new retail space are in the pipeline, with
75.2 percent to be delivered by the top three players.It also said that approximately 600,000 sqm of new
retail space are in the pipeline, with 75.2 percent to be delivered by the top three players.Aside from the
upcoming malls, the retail industry is also expected to shift its attention to the casinos in Entertainment
City, as this will be the new home of several luxurious brands once its retail sections become fully leased
out within the next year or two.

Shopping malls in the Philippines have mostly been developed by local conglomerates such as
the Ayala Malls, SM Supermalls, Robinson Malls and the CityMalls. Very often these giants operate
subsidiary supermarkets or department stores inside their malls. They also form partnerships with
foreign retail brands to introduce international brands into the malls. It is also worth noting that Filipino-
Chinese citizens are influential in the retail sector. For example, the SM Group and the up-and-coming
DoubleDragon Properties are Filipino-Chinese owned.

The retail landscape of the Philippines is already rather competitive. Both local and foreign
retailers are eyeing this burgeoning market and have been utilizing various marketing and promotional
initiatives. Major international fashion retail brands such as Zara, H&M and Mango have already gained
a foothold within the country. Furthermore, Japanese investment has taken place in a wide range of
retail sectors including convenience stores, fashion, home & lifestyle.

 Porter’s 5-Forces Model

 Threat of New Entrants – Medium

- Presence of more established malls
- Government regulations/policies
 Buyer’s Power- High
- Variety of products and services
- Strong quality of fish and affordable
- Customer could bargain for lower price
 Supplier’s Power – High
- Own supply of fish and seafood
- Being country’s largest galunggong supplier
 Threat of Substitute
- Wet markets or bigger supermarket chains nearby
- More established malls within QC such as SM North and Trinoma
- E-commerce
 Industry Rivalry
- Presence of more established malls
 SMEs, especially start-ups, have lower probabilities of survival than larger firms, leading to high
rates of market entry and exit across nearly all economic sectors.

III. Opportunity and Issues Analysis

Strength Weakness
S1–One of the few retail companies to incorporate W1 - Low market sharein retail industry
SMEs compared to their competitors
S2 - Own supply of fish and seafood products W2 - Difficulty in accessing regional areas
S3 - Strong quality of fish at more affordable prices W3 - Production capacity at medium-level
S3 - Have resources for expansion W4 - Consumer loyalty not yet established
S4 - Fewer "pass on" cost, low price W5 - No control on SMEs operation
S5- Differentiation of product and services W6 - Less popularity and reputation compared
S6 - Monumental increment in economic growth to others/competitors
S7 - Offers a safe and secure shopping W7 - Less number of branded shops compare to
environment other established malls
Opportunities Threats
O1 - Robust economy, growing middle class T1- Higher competition/presence of more
O2 - Retail industry is profitable business established malls
Q3 - Increase jobs for SMEs T2 - Expansion of competitors could monopolize
O4 - Could resort to PSE if low on capital consumers
O5 - Good competition means better product T3 - Inflation rates continue to increase
andservices T4 - Emergence of E-Commerce
O6- Credit access for SMEs
O7 - Branch expansion (local & international)
O8 - Can expand w/ more number of branded
shops/int’l products to cater class A and B

IV. Strategic Marketing Objectives

o Maintain the reputation as country’s largest galunggong supplier.

o To become the industry standard of freshness while maintaining more than reasonable
prices
o Achieve the largest target market percentage and market shares.
o Increase the sales and revenue
o Promote SMEs to the market

V. Marketing Strategy

 Target Market
a) Class C & D, middle class families with total 69% share
b) All kinds of shoppers
  4 P’s of Marketing Mix

o Product-Given its strong quality of fish and seafood products, they should maintain
supplying of wide variety of fresh and hard to find seafood products. SMEs as their
product could be competitive advantage as there are only few shopping mall with this
kind of enterprise, majority have foreign-branded stores. There will have variety of
affordable products and services in different industries that can be offered to the
shoppers.
o Price- Products and services should be based on the demographic ability of the people
to buy. Given its strong quality of fish and seafood products, they should serve the daily
marketing needs of customers at the most and competitive prices and maintain more
than reasonable prices. Bargaining power of consumers with SMEs is very high.
o Place- They should expand their presence to residential areas, BPO centers and
terminals where they could provide shopping mall amenities and especially small and
medium enterprises. SMEs have closer interaction with customers, dealing more directly
to them enables to meet their needs more accurately increasing customer visits.They
must strategically locate in private and public transportation terminals where
consumers frequent daily.
o Promotion- They should also consider offering one stop shop 24/7, not just opening
7am to 10pm.Have leverage on social media: Facebook, Instagram and Pinterest, which
are the most consumer–centric network. While hiring celebrities to be the brand
ambassadors, Fisher Mall has an option to hire YouTube influencers who are very
specific with reviews that can provide raw and genuine information about the mall.

VI. Conclusion

Fisher Mall will remain to its high quality standard offering a fresher choice of fishery and
agricultural products at more affordable prices and in able to maintain its leading status in the country’s
local fish trade industry by ensuring that the product will continuously improving and address the need
of the consumers. Leverage their existing intensive distribution channel relationships to ensure that
Fisher Mall receives the most effective placement. Promote by investing on quality advertising to attract
more ventures, expand its network/market, expand their presence in the supermarket, mall business,
small and medium enterprises. With SMEs, their size and simpler structure enables them to adapt to
changes and also will be able to detect small market niches.