In partial fulfillment of

the requirements of the subject

Management 6 – Business Policy

DIRECT SELLING INCORPORATION

A Case Study

Submitted by:

____________________________ ________________________________

Gloree Joy Gonzales Jerlyn Sale

BSA – 3 BSA – 3

________________________

Kaycee Louise Serue

BSA – 4

Submitted to:

_____________________________

Ma. Theresa R. Pineda, MBA

Professor
I. Introduction

One of the research methodologies is the case study which part of the
requirements for senior high and college students. Case study is a descriptive and exploratory
analysis of a person, group or event. It is a research strategy and an empirical inquiry that
investigates a phenomenon within its real life context. In business, they also conduct a case
study from time to time; it is a report of an organization’s implementation of something, such
as a practice, a product, a system or a service. This case study is all about providing executive
knowledges regarding the organization, markets and sales. It enables the executives of the
company to make better and rational decisions based on results provided by the study. This
case study includes the background of the Personal Collection, objectives, SWOT analysis,
alternative course of action to formulate strategies and policies to solve the problems of the
company in order to achieve the specific objectives. This study will provide valuable
information on consumer buying habits, for example, giving data on attitudes to products and
brands. This is also important for people who want to start up as it helps them assess if an idea
can support a business. This includes customer service satisfaction, product development and
effective marketing campaign to promote the products to market.

In making a case study, it is beneficial considering it provides insight and serves

as a reference guide for our future career. It is valuable tool that modern businesses possess
for improving daily operations. It improves our analytical ability through discussing business
policies and techniques and develops our skills of logical thinking, searching for relevant
information and evaluating facts about specific topic. Case study is innovative and interesting,
this consist of well presentation of techniques applies about business issues. Preparing a case
study provides opportunity for us to consider what went right, so we can do more next time. It
also considers what we could do differently such as thinking of improvements we can make
and new ideas to try on the next topic. Case studies boost our professional career in the future
and help us to build brand trust. It is effective in building trust because of the very fact they
present the view point of customers. Business case studies can describe the real success of a
business cooperation experience of a company, because case studies are written an
educational form for readers, their content must include as clear information as possible.

Personal Collection or PC is a direct selling company that known for giving

opportunities of its thousand dealers. It operates from mindset of hardworking people who
have discovered the Great-Life that is the ultimate purpose for doing business with PC. They
provide an excellent working environment, offer competitive pay, and conducts performance
based appraisals to all head office and branch employees. Personal Collection is also a multi-
level marketing or MLM. It is made in variety of ways including single or party presentation
but also through online and catalogs. Direct selling is a selling of products directly to the
consumer in a non-retail environment. The products sold through direct sale, are usually not
found in typical retail locations, which means finding a distributor is the only method to buy
the products or services. In direct selling there is a face to face interaction, presentation,
demonstration, and sale of products or service, usually at the home or office of a prospect by
the independent direct sales representatives. Direct selling is an effective way to build long-
lasting customer relationships and grow a flexible, low-cost business. It allows you to avoid
expensive overheads and reduce advertising costs.

People don’t like the feeling of having no money. At this day of living, high cost
of expenses was spent. The income is not enough for the family or for you to satisfy. The
need of having an extra income aside from the main source is badly needed; having an extra
income can satisfy one’s need or one’s family. With this thought, PC evolves. PC wanted to
help the jobless people to make an income and teach them how to run a business. PC wanted
Filipinos to experience the great life. Having their own house, can eat at least three meals a
day, having a good night sleep and can satisfy one’s needs and wants. PC helps Filipinos to
achieve the Great Life. PC wanted to achieve your dreams. PC is made to help people earn an
income. Through PC, you can meet other people and become a big family. You will be trained
to become a businessman or businesswoman. They train their dealers on how to manage a
business. Joining Personal Collection can help you to become successful.
II. Background of the Case Study

Personal Collection Direct Selling Inc. is one of the biggest Filipino-owned direct
selling companies in the country. The company was established on August 20, 2003 with the
introduction of its pioneer product, supported by a strong Research and Development
Department in the Home Care, Hair Care, Skin Care, Fragrance, Food Supplement and
Apparel Categories that suit taste of the Filipino consumers. Their ultimate purpose is to
delight their customers with superior value for money products and services. Personal
Collection commitment is to give better life for all the employees, dealers, suppliers,
shareholders and the communities where they operates, They envision to be a organization
that grow businesses and at the same time serves the purpose of enhancing the lives of
Filipino families.

From a single business idea in 2003, Personal Collection was born in a small
warehouse with less than ten employees. Driven by an intense hunger to improve the lives of
Filipinos, PC’s modest pioneer team worked tirelessly to tap dealers using their pioneer
products. Little by little, they grew. Every move they made created results that led to
significant progress until they made a name for themselves. Sixteen years later, they expanded
to over three hundred branches, had more than a thousand employees, showcased a thriving
product portfolio and created a stronger media and digital presence. But despite these
milestones, they would always to their mission of fighting for the little guy, of helping small
entrepreneurs provide a great life for their families.

Personal Collection is a challenging workplace in terms of leadership and

management. It is work places where you will be develop to be a strong one and independent.
Their company has hundred thousand of individuals who have the potential of becoming great
contributors to the company’s growth and success. They develop their skills, promote proper
training and equips with the right tools to help reach their full potential and become great
leaders. Personal Collection provides an excellent working environment. They reward
employees with regular bonuses, salary increases and promotions for their outstanding
performance. The company also endeavors to hire persons with disabilities (PWDs) who are
fit and qualified for the position and where the job requirements can be performed well. They
will teach you how to earn more than just by selling their products. The ways on how you can
get more and Higher Personal Collection Income are sources of earnings which include basic
discount (25%) on all items, Promo Discount on items that are on sale when sold, on time
payment which gives you 20% increase on your credit line, and recruitment gift.

Personal Collection Direct Selling Inc. helps their business partners to earn by
becoming franchise builders. They promote all training programs to all dealers through branch
posting, meetings, assemblies and other gatherings. They recommend promotional strategies
and activities needed for dealers to increase branch revenues. They conduct training programs
that focus on dealer development and prepare all logistics and materials needed for all branch
activities. Through their competitive salaries, premium benefits such as product incentives,
early retirement plan, cash bonuses and etc., training programs, promotions and collaborative
company culture, they are committed to the growth of each employee, allowing them and
their families to enjoy the Great-Life.

Personal Collection is a company with a Noble purpose of sharing a Great-Life to

everyone. The mindset of PC is to give their employees a Great-Life for their families.
Empower employees with an excellent working environment. Inspire dealers with best
earning opportunities. Delight the customers with superior value-per-money products and
services.
III. Statement of the Problems

Personal Collection or PC is greatly having its name to industry. As its dealer’s

increases throughout the year, the demand on the products also increases. It will provide a
higher income. After analyzing and evaluating the operation of our case study we come up
with the following problems:

1) Shortage of supplies
2) Not able to meet the sales target
3) Inconsistency of the quality of some of the products
4) Disorganized system of distribution of products
5) Lack of sales agents
6) Lack of knowledge and trainings of the dealers

IV. Objectives

As a Filipino owned Direct Selling Company Personal Collection or PC is gaining

popularity to Filipinos. As we through researching some problems regarding of our case
study, we were able to come up with the following objectives:

1) Collect payment above 90% of their sales

2) Empower employees with an excellent working environment
3) To compete internationally
4) Inspire our dealer with the best learning opportunities
5) Ensure the consistency of the quality of the product
6) To be able to meet customers’ satisfaction
V. SWOT Analysis

S W

1) Competitive Pricing 1) Loss of Talent/ Employee

2) Income Opportunities
2) Lack of Supply
3) Career Development
3) Decreased Revenue
4) Product Development

4) Marketing Cost
5) Innovative

5) Outdated Computer System

6) Above minimum salary

6) Employees Unmonitored Performances

O T

1) Population Growth 1) Competitors

2) New Markets 2) Customers’ Perceptions

3) Product Exports 3) New Entrants

4) Advertising 4) Product Imitations

5) Expo Events 5) Online Complaints

 6) Merge with Competitors 6) Government Restrictions
STRENGTHS

1) Competitive Pricing
Personal Collection offers affordable products to the dealers. The prices can
compete to the other brands of products. Affordable products with high quality ingredients
used.

2) Income Opportunities
Personal Collection offers monthly promos and promo booster to their products
with some free items to be given if the target is met. It is a source of another income to
those people who have high expenses.

3) Career Development
Employees can enhance their career through training and orientations that that
company offers. It will boost their confidence in dealing with the customers.

4) Product Development
This is a strategy that can improve existing products to heighten an existing
market or create new products that market seeks. New products will bring a new
innovation to customers.

5) Innovative
Personal Collection is continuously introducing new methods, new techniques or
system in terms of offering their products.

6) Above Minimum Salary

As for employees, Personal Collection offers good compensation for their trusted
employees.
 WEAKNESSES

1) Lack of Talent or Employee

Personal Collection’s employees often complain about their overtime. The
pressure of work is one of main reasons. Many of their employees resigned due to these
two mainly reasons. Most of their representatives resigned in a short period of time since
they were hired.

2) Lack of Supply
Most of their products are always out of stocks especially their best selling
products. It takes two to three months until they deliver. Branches receive delivery every
month but most delivered products are also available on their warehouse.

3) Decreased Revenue
Any decrease in revenue will result in a decrease in profits. Once a company’s
sales decreases below the total amount spent for expenses and cost of goods sold in a
given period, net loss will occur.

4) Marketing Cost
To promote products globally is through marketing. Promoting products is by
used of different media tools such as television, radio, magazine, newspapers, billboards
and internet. Advertising product is very costly and expensive that may lead to variability
of cash flow and high expenditures.

5) Outdated Computer System

This leads to crashes and system downtime that needs highly costs to support and
outdated system is prone to security hi-jacks.

6) Employees Unmonitored Performances

Company should always reach their people and be updated from lower groups up
to higher groups.
 OPPORTUNITIES

1) Population Growth
As the population increases, the more chances of recruiting dealers. As the
population getting bigger, the demand on products increases especially in personal and
homecare products.

2) New Markets
Philippines is made up of thousand islands, some areas is still unreachable from
out PC branches and dealers. It is favorable to PC if they can reach and recruit in some
areas here in Philippines. More places to reach, more people to recruit more consumer of
PC products, will result to higher sales and recruitments.

3) Product Exports
Exporting products can increase profits and be a great opportunity for the business
to increase sales potential.

4) Advertising
Through advertising, company can introduce a new product in the market,
increase sales, fights competition and it can help to educate customers about the product.

5) Expo Events
Personal Collection joins expo events for exposure of their products and services.
This helps to introduce what the company could offer in the market.

6) Merge with Competitors

One of the good opportunities is expanding the company with your competitors, it
benefit the two companies against other competitors in the market.
 THREATS

1) Competitors
Personal Collection has a lot of competitors. Aside from other direct selling
companies, there are also malls and stores. Some people often attracts to branded
products. The presence of competitors often lessens their sales and recruitments.

2) Customer Perception
Feedback from the dealers can affect the operations of the company. They
discouraged other people to join PC and reduce the recruitments. The bad reviews to the
products can cause serious problems to the company.

3) New Entrants
Competition decreases market share and shrinks customer base especially
competitors offer the same products.

4) Product Imitation
Using the brand name of the original brand of the existing products can dilute the
image of the original brand. Imitating a brand can damage the brand. Loyal customers can
no longer trust the products and can even weakening the existing association of the
product.

5) Online complaints
Anything that would be posted in regards of the PC services or products online
can easily be created an issue, that could go viral and it would be bad for the company.

6) Government Restrictions
Sudden change in certain regulations or standards with reference to governing
powers by limitations prescribed in laws and constitution. It may be from local
government units or national government.
VI. Alternative Course of Actions

As Personal Collection grow rapidly. There is a need of action in to meet the

demands of their consumers. Some alternative actions are as follows:

1) Conducting a customer feedback in order to see what products are defective and
in what reasons. In order for the products to be a good quality, there should be proper
testing and procedure to the changes. Ensure that the chemist have enough information on
the effectiveness of the products to have a good quality products.

2) Personality Development on the employees should be observed especially on the

PC branches. There should be proper trainings and seminar about people behavior and
attitudes. Having knowledge about their different personalities can help you solve
problems about the dealers.

3) Survey your past transactions on every recruits and having a summary on their
last order transactions. To those recruits, who does not have current transactions will be
contacted and encourage them to order again. By making a guide on hot to approach some
inactive dealers in order to bring them back.

4) Product distribution strategy, to prevent shortage of supplies first, be familiarized

and know your product distributors. Second, have the updated records of your sales and
also the history of the past distributions. Third, the marketing and production departments
should be in sync in terms of actual orders and forecasting the possible number of orders
in the future. TO ensure product availability, consider all the factors such as branch’
records of orders, know which branch has greatest demand up to least then that’s where to
most number of product goes.

5) Reliable company computer system, Personal Collection should invest for

computer system that holds the company’s information and hire IT tech who knows how
to access in terms of technology specially nowadays it is easy to hack someone’s
 information and use it against you. Having easy access, reliable company computer
system would lead to efficient workers and customer services.

6) Quality customer services, with advancing technology, just a click on your phone
you can contact or connect with other people. Just like on business, even if branches stay
only up to 8 hours a day, the customers are still coming 24/7 so we need people to
entertain them especially on virtual world. The PC should set up for this customers or
potential dealers such as operator on the business websites, who would be answering the
inquiries from social Medias. And also customer service booth on each branches, even it
is only information or inquiry clerk and the person should be assigned have a pleasing
personality and not the maldita because it has an effect in the customer’s or dealer’s
impressions.

7) The success of the company largely depends on how well employees and dealers
perform their tasks. The best place to start how to improve the performance of employees
is gaining an understanding. Here are the ideas how to manage and enhance the
performance and knowledge of employee and dealers in an organization:

a) Communicate clear expectations. Making sure dealers are clear about their
assignments means communicating those expectations well.

b) Consistency of performance appraisal. Regular and timely appraisals ensure

dealers and employees know where they stand at all times. Conducting performance
appraisal regularly also keeps goals in the forefront of daily tasks.

c) Take steps toward improving morale. Employees perform better when they are
satisfied with their jobs. Employees who understand how their role helps the company
succeed are often more will to do their very best.

d) Utilize the right technologies. Implement technology platforms that drive

performance and engagement daily. Technology is crucial in today’s workforce ,
especially if the staff is decentralized.
VII. Action Plans

Time Frame Actions Objectives

1) 2020 – 2021 Hire and train potential employees To provide service from
and dealers. well-trained and skillful
people to customers.

2) 2021 - 2022 Renovate storage room and change To maintain the quality
old equipment to new ones. product and ensure
availability.

3) 2023 - 2024 Creating and implementing To maintain loyalty of

programs of special deals for dealers.
loyalty memberships.

4) 2024 - 2025 Opening of outlet stores in every To serve long distance

Personal Collection branches. dealers.

5) 2027 - 2030 Increase sales by creating packages, To increase revenue and

deals and bundles. Offer free trials maximize overall profit
or demonstrations. margin.

6) 2030 - 2035 Tie ups and merges with local and To be globally competitive
international company. Have and product-service
different investors from different innovative.
industries.

VIII. Conclusions
 In connection with Personal Collection Direct Selling Inc. creating a case study
on them made us conclude that:

1) Companies just like a person, everyday it faces problems, issues, struggles and
conflicts and it can only be solved once it analyzed what really are the problems. We also
conclude that making a list for the solutions, conduct some research and how will it affect
in the surroundings.

2) We should always consider all the factors inside and outside of the company. We
therefore conclude that making a case study helps a student to know hot to identify and
disclose problems and solutions for one company.

3) We conclude that Personal Collection is a great company with their benefits for
the employees from insurance to salary. PC is results-oriented and performance based
ensuring that their company set up for success. PC is good company because it create
opportunities for the people to be more productive and more on social culture towards to
the customers.

4) We conclude that the decision-making processes are based on the lack of

knowledgeable information which leads in most cases to bad pricing policies that don’t
perform well as they ideally could and should. Pricing policy has direct impact on the total
business revenue and as such must be carefully thought out.

5) The operation on the branches is hectic and lack of funds. A need of detailed plan
about their delivery of products and a fair distribution of products. We conclude that the
outside factors are needed to analyze. An immediate action to these factors with proper
planning and execute at the right time.

IX. Recommendations
 A case study requires you to analyze, to investigate a business and its whole system. In
order to know the problems and possible effective solutions, we would like to recommend these
following:

1) Read and examine thoroughly the business you would like to do a case study.
Take notes, keep relevant facts and be attentive for the possible problems. Focus on what
do you really want or the purpose why you are doing the case study.

2) Uncover possible solutions, read also other resources, apply what you may
include from your own experiences. In drafting the case study, know what the start-up to
the end is. How would you like your readers see and the take outs they can get after
reading the case study.

3) Personal Collection should have a proper action on how to solve or evaluate the
feedback coming from the customers. The products especially their bestselling should be
available. They will be able to produce product that can satisfy the demand of dealers.

4) Personal Collection offers great opportunity to the people, mostly for housewives.
PC employees receive a lot of incentives but the pressure is too much and always
overtime. The processing of products should be followed strictly to avoid frequent
changes.

5) We would recommend the conduct of Training Needs Analysis including

organizational analysis, task analysis and person analysis while considering factors such
as: employees’ readiness to training, learning environment and transfer of learning.

6) Lastly, for Personal Collection, they should develop pricing strategies such as:
price maximization, market penetration, price skimming, economy pricing and
psychological pricing.