MarketAnalysis SustainableFurniture HIRAYA

SILLIMAN UNIVERSITY
SENIOR HIGH SCHOOL

ACCOUNTANCY, BUSINESS, AND MANAGEMENT (ABM)
INQVEST AND IMMERSION
SECTION BB GROUP 4
A Market Analysis on HIRAYA: Assessing the value of Recycled

Polyethylene Terephthalate (rPET) Furniture in the Philippine market
through determining the possible target consumers and their perceptions
and preferences
Submitted by:
ALMANNAI, RAMI RASHID

BARLUADO, CARIZZA GAIL
CREDO, MARIANNE ABHIGAIL
CULANAG, RYZELLE CATHERINE
DINOPOL, ENRICA MARIANNE
LERIO, SHANE
RONATO, LEIRA CAMILLE
Submitted to:
Ms. Ria Frances Malinao

Course Instructor
APRIL 2021
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ABSTRACT: HIRAYA is a brand conceptualized by the proponents of this study through making
a link between various aspects. The design problem being the waste management issues of the
Dumaguete City Dumpsites, was coupled with the flourishing opportunities in the Philippines’
furniture industry and the growing notoriety of sustainability within consumer preferences.
Altogether, it yielded the product of rPET-sourced Sustainable Furniture, or furniture made from
recycled plastic. However, determining the target market for this is a challenge to be faced. In
addition, with factors such as the presence of intense competition, there is a need to forecast
whether or not the proposal can gain traction in the market. It is also imperative to understand the
preferences and perceptions of the consumers towards the product. With that, this study seeks to
answer questions pertaining to the aforementioned concerns. The study takes on a quantitative
route with the utilization of a combination of descriptive and survey designs. Using an online
survey questionnaire via Google Forms, this study was conducted in Dumaguete City, Negros
Oriental, Philippines with 100 individuals as the target number of respondents. The respondents
came from a wide range of age and income-level groups, having all levels in the spectrum
represented. After analyzing the data yielded from the survey, it was concluded that the proposal
can truly gain traction and earn a place in the market, with the target markets being businesses
from the hospitality industry, household families and individuals from middle middle-income to
rich levels, and consumers with values-driven lifestyles. It was also determined that the most
valued factor by consumers is durability, followed up by environmental-friendliness, and price.
Afterwards, a complete action plan was arranged, covering courses of action from before, during,
and after the launch of the product.
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TABLE OF CONTENTS
Introduction 1
Rationale of the Proposal 1
Overview of the Proposal and the Company 3
Research Problem 6
Research Objectives 6
Methodology 7
Research Design 7
Research Environment 7
Research Participants 8
Research Instruments 8
Scope and Limitations 9
Data Analysis and Findings 10
Industry Analysis 10
Competitive Analysis 11
Customer Analysis 16
Primary Data 17
Conclusion and Action Plan 53
Conclusion 53
Action Plan 54
Bibliography 58
Appendices 60
Consent Letter 60
Survey Form 61
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1.1 INTRODUCTION
Rationale of the Proposal
The consumers of today have fundamentally changed their purchasing behaviors and
preferences, ultimately advancing the value of sustainability in the market. According to the
Institute for Business Value (2020), the demand for goods sourced from ethical and
environmentally-conscious means are at a tipping point, with 40% of the world’s population
classified as “purpose-driven consumers”, or consumers defined as those who seek products that
align with a sustainable lifestyle. However, sustainability is, more often than not, associated with
a premium price. Elaborating on this concept, sustainability not only concerns the source of the
materials and the processes in the creation of the product itself, but also the entire aspect of the
value chain, from the welfare of the employees to the impact towards the environment
(Bumgardner & Nicholls, 2020). The costs in ensuring that all parties involved in the production
are treated under fair and ethical conditions are what constitutes the higher price tag on ethically-
labeled products. However, by investing in sustainable goods, it promotes responsible
consumerism that, according to the 40% purpose-driven consumers, is imperative in our modern
society (Institute for Business Value, 2020).
On the other hand, the cheaper tag on conventional products is characterized by various
harmful and exploitative business practices. Cummins (2020) states that cheaper or “fast”
furnishings are able to remain at a low price point due to outsourcing, wherein companies transfer
the manufacturing process overseas, most often in third-world countries, where labor is
significantly cheaper. In these circumstances, the laborers work in poor conditions that
compromise their health and safety, on top of them not receiving proper compensation for the
extensive periods of time they operate in (Cummins, 2020). In addition, fast furniture is cheap
because they generally do not hold up long, with them usually made from particle boards only
covered with laminate or veneers, along with the fact that the mass-production procedures utilized
do not enable laborers to apply precision and skill on the items (Bischof, 2019). Another factor
that generates the downside of conventional furniture is its composition of volatile organic
compounds (VOCs) found in the materials and surface treatments, which through long-term
exposure, causes respiratory illnesses (Yan, Zhai, Shi, Hu, Yang & Zhao, 2019). Accumulating all
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these accounts, it supports the notion that investing in sustainable furniture possesses more
advantageous qualities than conventional ones.
In a domestic scope, the Philippines’ furniture industry in particular has been a flourishing
sector, as its success reaches not only domestically, but also in the international market. With the
growing notability and demand of Filipino craftsmanship worldwide, it indicates the presence of
great opportunities in this field. Aside from the business model that utilizes mass production of
standardized styles, there has been an increasing trend in specialization, wherein firms deliver
customer-specific orders and therefore have the flexibility to produce pieces according to the
needs, wants, and tastes of their customers (Department of Trade and Industry, 2014). There is a
great advantage with this direction for the industry, as specialized furniture not only holds higher
value, but also has a wide range of potential clients from families to hotels, restaurants, real estate
developers, and tourism-based establishments.
It is important to note that since the commencement of the COVID-19 pandemic, there has
been a significant change in consumer behavior, manufacturing trends, and the overall direction
of the industry. According to Lectra (2020), the expectations for companies to uphold socially
responsible values and practices has increased tremendously, as consumers are adamant on
purchasing items that are ethically or sustainably sourced. The consumers of today are now
steering towards eco-friendly consumption, and this includes furniture choices. Aside from the
mentioned change, there has also been another effect caused by the pandemic. An Agence France-
Presse (2020) database shows that nearly 58% of the world’s population are staying at home, thus
influencing the sudden desire of consumers to improve their living space. The rise of at-home
activities and endeavors such as working-from-home and home-schooling has truly evoked the
consumers’ interest in investing in home furnishings.
The last critical detail that is deemed necessary to be mentioned in this paper is the actual
design problem, as it was pivotal in the process of conceptualizing the proposal. Waste
management, disposal, and segregation issues are currently standing as one of the most alarming,
persistent, and deep-rooted issues faced by both the local government and the citizens of
Dumaguete City, Negros Oriental. For the past thirty years, attempts at arriving at a conclusive
solution for these problems have been unsuccessful, as only incremental improvements and band-
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aid remedies have been put into action. As a consequential outcome of the mismanagement, it has
inflicted various adverse health and environmental implications, which puts the entirety of the
citizens of Dumaguete City, especially the site’s nearby residents, at a great risk.
According to Emmanuel (2018) in his article on the Dumaguete Dumpsite, plastic is a type
of waste that will release toxic substances such as phthalates, bisphenol, and organotin compounds
throughout time. In turn, the aforementioned substances are known to inflict various effects to the
human body, putting the risk of hormonal interference, cancer, central nervous system dysfunction
to occur in much higher probabilities (Emmanuel, 2018). Additionally, recent reports from the
Dumaguete City Government (2018) official website states that 43% of the waste in the site are
non-biodegradable, with the majority being from plastics, thus emphasizing particular need for
plastic waste to be taken into higher attention.
Overview of the Proposal and Company
Figure 1: HIRAYA Table and Chair Set 1
Through the design problem, which is the waste management issues in Dumaguete City,
Negros Oriental, the proponents were inspired to create a product that can address such. In addition
to this, the growing potential of the furniture industry in the Philippines and the demand for
sustainability also further propelled the proponents to come up with the proposed product. By
combining the concern for the state of the Dumaguete City Dumpsite and the opportunities found
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in the furniture and sustainable sector, the concept of the brand HIRAYA Furnishings was
idealized. The name, from olden Tagalog origins, is reckoned a best fit due to it being a translation
of the phrase, along the words of, “reach the future.” As the proponents envision that through this
innovation, our ecologically-diverse world will prosper as infiltrated systems such as landfills and
dumpsites will be significantly reduced, the future will truly be a guarantee not only for us, but
also for the next generations to come.
Figure 2: HIRAYA Table and Chair Set 2
The products of HIRAYA are greatly dependent on a particular material, this being
Recycled Polyethylene Terephthalate. Polyethylene Terephthalate (PET) is a thermoplastic
polymer, mainly composed of ethylene glycol and terephthalic acid, that is widely used for
packaging foods and beverages, such as carbonated drinks (PET Resin Association, 2015). In
common terms, PET is what composes plastic bottles, which is the prominent waste group that can
be found in the Dumaguete City Dumpsite. This type of plastic is immensely flexible in terms of
use, as its compound allows it to be recycled and reused for another cycle of production. In such
cases that these are reused, its technical name becomes Recycled Polyethylene Terephthalate or
rPET.
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There are several limitations that can impose difficulty in the said reutilization process, and
can impose difficulty when introducing this proposal to the market. The measures done in
recycling PET bottles involves an immensely tedious and extensive procedure that requires both
machinery and human resource work. The first to be considered is that plastic bottles have different
variations due to the additive components that will be adopted, leading them to have different
levels of molecular weight in the polymer chains (Gupta, Shukla & Agarwal, 2019). In turn, this
forces recycled plastic to undergo an evaluation process that can classify and separate them
according to their level of molecular weight, which further implies the need for them to undergo
different intensities during its dissolving and preservation process (Gupta, Shukla & Agarwal,
2019). Another issue is that considering the fact that these plastic bottles will come from the
Dumaguete City Dumpsite, there is a need for them to undergo an extensive sorting, sanitizing,
grinding, rewashing, dehydrating, and melting process that should be done in utmost care due to
the possibility of antimony leaching which can cause cancerous illnesses to the staff
(Radhakrishnan, Vetrivel, Vinodkumar & Palanisamy, 2019). These processes are only concerning
the conversion of plastic bottles to rPET and excluding the actual process of injecting the rPET
compounds into a mold for the furniture to take structure. Taking all of these steps into account
implies that the proposal of the Sustainable Furniture truly has numerous cost components that
influences it to have higher prices than conventional furniture, which can be a major factor that
can either influence the consumers to purchase the product or not. Nevertheless, the proponents
see great potential in the proposal.
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1.2 RESEARCH PROBLEM
The main concern of this proposal, which is also the primary purpose of this analysis, is
determining the possible target market of the Sustainable Furniture, and whether or not the
proposal can gain a place in the market. It can be hypothesized that the individuals who can serve
as its consumers are those who value sustainable and ethical products. However, unless proved
through quantitative data, this will only remain as an assumption. Another point of concern is in
the competitive aspect, since it is apparent that the furniture industry of the Philippines possesses
a wide array of promising brands as contenders. There is also a particular need to determine what
factors are deemed important to the consumers in order to assert specific measures that can address
such. Style, being a subjective matter, will not be mentioned in this paper. Instead, matters
pertaining to the perceived importance of the factors such as durability, price, environmentally-
friendliness, accessibility, and consumer advertising will be discussed. It is hoped that through this
analysis, the aforementioned concerns will be addressed.
1.3 RESEARCH OBJECTIVES
The proponents formulated the concept of rPET Sustainable Furniture as a product of

integrating the concern over the state of the Dumaguete City Dumpsite with the growing
opportunities for the furniture industry and the sustainable business model. Despite the stable
position of the sector, there is still a great need to assess customer perceptions and attitudes towards
the idea of furniture made from recycled plastic materials, as it is still a new concept especially in
the Philippines. With that, this study aims to discover the target market for this specific product.
Additionally, the study also aims to answer questions pertaining to the value and attractiveness of
plastic waste-sourced furniture in the market. Through the data-collection procedures in this study,
it is hoped that the following questions will be answered:
1. Who is the target market for rPET Sustainable Furniture?

2. Will the concept gain traction and earn a place in the market?
3. What are the perceptions and preferences of the consumers towards the proposal?
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1.4 METHODOLOGY
The methods and procedures for data collection of study will be thoroughly defined. The
researcher will determine the specific procedures or techniques used to identify, select, process,
and analyze information in order to answer the previously determined research questions. A
detailed explanation of the research design, research environment, research participants, research
instruments, and research procedures will also be given.
Research Design
This study is designed as quantitative, a type of business research that can be used to
systematically investigate the market through gathering quantifiable data and performing
statistical, mathematical, and computational techniques, in order to objectively deduce the value
of sustainable furniture in the Philippine market as well as determine its possible target consumers.
Furthermore, the study uses a descriptive research design as it can determine the perceptions and
preferences of the consumers, which results will answer questions pertaining to the proposal’s
potential to earn a place in the market. Through a factor analysis data technique, the underlying
interrelation of the variables will also be determined, which can aid in determining the target
market of the proposal.
Research Environment
The study takes place in Dumaguete City which is identified to be the capital of the Negros
Oriental province. In a larger scope, the city is a part of the Central Visayas region, found at the
center of the Philippine archipelago. The research environment was selected mainly due to its
locality, familiarity, and relevance to the proponents. In addition, the selected research
environment is also deemed beneficial to the results of the study as Dumaguete City is a generally
diverse area in terms of citizens’ age and economic classifications, which enables the findings of
the survey to come from a diverse pool of respondents. However, it is important to note that due
to the COVID-19 pandemic, the research will be conducted online.
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Research Participants
As this study seeks to determine the possible target consumers of the proposed product, the
sampling method that will be used is the quota sampling technique, which is done by dividing the
population using key variables and drawing a sample from each variable. The key variables
determined range from senior high school and college students, working young adults, up to
middle aged adults, thus the age range being from 18 years old and above. The mentioned key
variables were selected as the proponents find that the study will yield realistic and unbiased results
if a wide-range of individuals coming from different backgrounds will be identified as the
respondents. Upon adding all the respondents from the different key variables, the total target
number is 100. The researcher believes that this determined number will be sufficient in obtaining
necessary data and information.
Research Instruments
The research instrument that will be utilized in this research is an online questionnaire
through the Google Forms application. The questionnaire will contain a series of questions
formulated for the respondents to answer several questions, which will then be collected to obtain
statistical information. Each question offers a number of probable answers from which the
respondents, on the basis of their judgement and preferences, will choose the best answer. The
questionnaire will also be made up of both factual and opinionated questions. In addition, the
research instrument will utilize both nominal and ordinal scales to gather data. Furthermore,
responses that will be yielded by this instrument will then be presented in corresponding numerical
forms such as numbers, graphs, and percentages, and will be subject to statistical analysis.
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1.5 SCOPE AND LIMITATIONS
This study will be conducted with individuals from Dumaguete City, Negros Oriental as
respondents. The individuals will come from various age and income-level groups in order to
properly determine the proposal’s target market/s. The research instrument that will be utilized in
order to acquire the necessary data is an online survey, specifically the Google Forms application.
To add, this particular research focuses only on determining the target market for the proposal, as
well as their corresponding perceptions and preferences. Finding the results of the previously
mentioned objectives are requisite in assessing another high-level concern, which is whether or
not the proposal can actually gain traction in the market. The overall findings of this study will
lead the proponents to the necessary call of actions for matters regarding the proposal.
One of the main limitations for this study pertains to time. The other concerns outside of
the determined objectives could not be looked into considering that the study will be conducted in
less than two months only. Another important limitation is regarding the number of respondents.
Realistically, a survey with our Research Environment, which is Dumaguete City, should have a
target number of 14,000 for the respondents given the estimated 140,000 individuals as its
population. However, taking into account that this paper is hypothetically made by secondary-
level students, it is not feasible at our reach. Thus, while 100 is a considerably justifiable number
of respondents for our level as proponents, it may not be enough to gauge accurate findings, as
such can be attained through considering other elements, such as geographical considerations and
the like.
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2 DATA ANALYSIS AND FINDINGS
Industry Analysis
As seen last year, the economic effects of the pandemic were inescapable, with supply
chain disruptions and reduced orders affecting the global manufacturing sector - including the
furniture industry. The Philippines did not escape unscathed with the Philippine Statistics
Authority (2020) reporting that the furniture industry’s contribution to manufacturing Gross Value
Added (GVA) was at 0.4% in 2020 from 0.5% in 2019. The pandemic also didn’t help the
country’s furniture exports, going down to USD 499.014M in 2020 from USD 550.64M in 2019
(Philippine Statistics Authority, 2021). However, even before the pandemic, the industry’s
contribution to manufacturing GVA and exports were already declining. One possible reason cited
for the pre-pandemic decline was the loss of overseas buyers, forcing the industry to rely on the
domestic market even as it continued to look for new markets abroad.
Despite this, the Philippine furniture industry still has huge potential, given that it is one of
the most artistic industries in the country. The creativity and industriousness of the Filipino is the
cornerstone of the longstanding success of this industry and highlights the importance of creative
design. As such, local furniture companies - tapping qualities of Filipinos in manufacturing high-
quality furniture - has made the Philippines the “Milan of Asia.” It should be noted that this labor-
intensive industry provides for 2.1M indirect workers nationwide and supplies business to 5.4M
in its supply chain (Department of Trade and Industry, 2014).
There are various sources of demand for furniture items in the Philippines. Coupled with
the consistent high growth of the country’s economy and Filipinos’ purchasing power, the
Philippines’ Department of Tourism (2019) reports strong demand for tourism in the country.
Since tourism-based enterprises - such as hotels, restaurants, museums and leisure service
providers - face growing needs to update their amenities, the demand for unique furniture items is
also increasing. At the same time, the property sector’s strong growth and families’ easier access
to housing credit also increase demand for household items - most important of which is furniture.
Thanks to the prominence of online commerce, these sources of demand are still viable consumers
as there are various alternative means to access catalogues and obtain furniture.
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Despite the hit COVID-19 imposed on the industry, the sector’s experts find that the
downward trend will not last for long. As claimed by the chairman of the Chamber of the Furniture
Industries of the Philippines, Zuluaga (2020) finds that the industry is still at a greater upper-hand
to bounce back. In support of this claim, the executive of the same organization, Valenzuela
(2020), finds that there is an utmost need for innovation in the industry at this period, needing
support from technology-based methods. Lastly, Valenzuela (2020) emphasizes that the industry
must view the importance of the paradigm shift occurring in the minds of the consumers, where
the previously determined general needs and wants of consumers have started to lean towards a
more values-driven point of view.
Taking everything into consideration, including post-pandemic forecasts, the proponents

find that the furniture industry is still able to maintain stability, as its hold not only concerns the
domestic consumers, but also the wide-world market. In addition, as the products of HIRAYA
possess qualities that can satisfy values-driven needs and wants, it can be said that it can stand in
the industry with great potential.
Competitive Analysis
The furniture industry in the Philippines comprises several players of various sizes, which
have rightfully earned a place in the market after their years of operation. Department of Trade
and Industry (DTI) undersecretary Manalo (2017) said that the DTI aims to provide marketing
support to the country’s small and medium enterprises (SMEs) in the furniture and furnishing
industry and promote innovative products designed by the Filipinos from various regions of the
country. With the given facts at hand, HIRAYA is definitely not immune to the presence of these
competitors whether direct or indirect. However, what makes Hiraya have an edge over its
competitors is that it distributes furnishings made out of rPET-sourced material, a concept that
only a very few in the world utilize, and one that only the brand carries in the domestic market.
The uniqueness of the proposal, hand in hand with the values and durability it manifests, gives the
brand an upper hand in comparison to its competitors. Aside from the fact that HIRAYA sells
furniture, the company also seeks to uphold professional customer service and expert after-sales
support. These are some of the factors that other competitors do not have.
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It is important to take into consideration the competitive review, as it identifies the certain
direct and indirect competitors HIRAYA may have in the field, as well as what they offer to the
market. Before citing the various players for the competitive review, a short description of what
constitutes a competition to be direct or indirect will be discussed. In simple terms, direct
competitors are companies who offer a similar type of product or service which, more or less,
attracts the same target market (Keenan, 2019). On the other hand, indirect competitors, otherwise
known as secondary competitions, are those whose products and services have different
characteristics and approaches but could nonetheless potentially satisfy the same needs and wants
of the consumers (Keenan, 2019). Having established that, the direct and indirect competitors of
HIRAYA will be discussed in the succeeding sections.
Direct Competitors
Junk Not
Based in Biñan Laguna, Junk Not is a brand that sells furniture, as well as
other items such as household decorations, bags, and the like. This company is
categorically the lone direct competition of HIRAYA in the domestic market. It is
identified as such due to the fact that it also uses recycled plastic as its material, and
its owner has the same vision as of the proponents of this proposal - which is to
address plastic waste issues in the dumpsites. It also has, more or less, a similar tag
as of HIRAYA, within the Php5,000 and above price-point. However, there are a
few differences between the furniture of Junk Not and HIRAYA.
First off, though both Junk Not and HIRAYA use materials sourced from
recycled plastic, Junk Not’s furniture uses recycled plastic in order to weave them
together and afterwards, incorporate it with a wooden base. On the other hand,
HIRAYA uses the plastic into undergoing an extensive breaking-down and
restructuring process that ends with a finished product as durable as steel. In the
durability department, HIRAYA is dominant. However, one factor that Junk Not
sweeps is in the creativity aspect. Their pieces are definitely more colorful, as the
different elements create a woven pattern. Nonetheless, with the great prominence
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of minimalistic styles in recent years, the proponents see HIRAYA attracting a
greater wave of consumers.
Indirect Competitors
The indirect competition of HIRAYA is quite literally the different companies that
offer furniture, regardless of whether or not such is sustainable. Though not sharing the
same particular eco-friendly characteristics of HIRAYA, they are still considered as major
competitors due to the fact that they are able to perform the same functions. Furthermore,
as it was mentioned that there are various players in the Philippines’ furniture industry,
only three indirect competitors will be mentioned in this paper. Regardless of this number,
these companies are worth noting as they occupy the top three spots in the furniture
industry in terms of market share (Statista, 2021).
Mandaue Foam
Mandaue Foam is inarguably the largest furniture retailer in the Philippines.

What makes them appealing to expansive segments of consumers is that they offer
a wide range of products, possessing a, likewise, wide range of prices. Aside from
affordable and high-quality foams and mattresses, they also manufacture stylish
furniture, such as bed frames, beanbags, among many other things. Their pieces
come in a mix of classic and contemporary styles designed by local craftsmen.
What also makes them have such a large hold on the market is their strategy with
their extensive store locations, having a total number of 25 showrooms and
branches, with further plans of expanding.
Philux
For over 30 years now, Philux, one of the leading Filipino furniture
manufacturers and retailers, has earned a significant place in the industry that they
have already inspired interior designers and discerning homeowners with their
prized cutting-edge creations. Today, Philux Inc. employs highly skilled Filipino
workers in its manufacturing plant in Manila and has several showrooms located in
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Power Plant Mall in Rockwell, LRI Design Plaza, SM North Edsa, SM Megamall,
and Shangri-La at The Fort in BGC. Manufactured from premium Mahogany, Ash,
and Walnut, their pieces are local luxuries that are strongly characterized by refined
aesthetics and a unique feel born of harmonious fusion between design, which the
company takes pride in.
SM Our Home
SM Group’s Our Home is one of the leading furniture retailers in the

Philippines, offering an array of affordable yet stylish furniture pieces, decors, and
home accessories. The company has an upper-hand, as they are owned by the
country’s largest mall developer. Therefore, it is inherent that Our Home is able to
have a large number of store visits due to their locations in the various SM Malls
in the Philippines, and furthermore, a large number of sales.
STRENGTHS WEAKNESSES
o HIRAYA’s concept is unique and distinct o The company is a start-up company, thus
o It manifests sustainable, ethical, and having high start-up and developmental
environmentally-conscious values – a costs. The company has also no seasoned
concept that is gaining prominence among experience.
consumers o Because of the various cost components,
o The minimalistic image of HIRAYA is HIRAYA’s prices are relatively high
timeless and resonates with a wide-range compared to domestic competition.
of individuals o There is a great need for man-power due
o HIRAYA sees importance in solidifying to the extensive production process of
customer relations through professional HIRAYA furniture.
customer service and after-sales
assistance
o HIRAYA’s furniture are BIFMA and
Green Seal certified
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o The furniture of HIRAYA have proven
long-lasting durability
o HIRAYA has an abundance of raw
materials, as this comes from the
dumpsite.
OPPORTUNITIES THREATS
o There is a growing number of values- o The COVID-19 pandemic continues to
driven consumers who desire products threaten economic stability, affecting
that can accompany their sustainable every business and individual, including
lifestyle HIRAYA.
o Sustainability is a concept that popular o There is an intense pool of competitors in
media is putting attention to. the domestic market, all being skilled.
o Online commerce is at its peak, making o Uncertainty in the economy may induce
HIRAYA have a big potential to reach a fluctuation, possibly affecting the profit
wide audience. and cash-flow operations of HIRAYA.
o The strong force of the furniture industry
of the Philippines can benefit the
company.
o The furniture industry of the country is
already prominent and relied upon even
beyond domestic borders, often being
touted as the “Milan of Asia.”
o HIRAYA can garner governmental
support due to the company utilizing
waste materials of the community.
Figure 1: SWOT Analysis of HIRAYA
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Customer Analysis
Identifying, analyzing and evaluating the target consumers is a vital aspect of the proposal
that the proponents find imperative and requisite in order to advance in the creation of a marketing
strategy for HIRAYA. The question pertaining who the target market is can be found as one of the
three research questions for this proposal, and with that, it is through this section of the paper that
seeks to address that. This customer analysis seeks to uncover the target customers, identify their
corresponding needs, and further specify how HIRAYA’s product can satisfy these needs. Two
aspects will also be outlined - through a demographic profile, or a description of the target
consumer’s demographic attributes of age and income-level, as well as the behavioral profile, or
pertaining to what certain consumer lifestyle can appreciate the proposed product.
It is important to note that the proponents have already previously determined that
HIRAYA will cater to different markets, with one of these already identified, and the other still in
the process of discovery through analyzing the data yielded from the online survey. The previously
identified target consumers for HIRAYA furniture are establishments in the hospitality industry,
specifically food and beverage, hotel, and other tourism-based and leisure-providing firms. As
mentioned earlier in this paper, the furniture industry is heavily functioning through supplying
these businesses with their products, providing them with their needs of having styling yet
comfortable furnishings in order to satisfy the consumers of the said businesses. Aside from the
aforementioned target market, HIRAYA seeks to appeal to household families and individuals.
The specifics however, such as their demographic and behavioral characteristics, will be discussed
in the succeeding paragraphs.
Through analyzing the data from the conducted survey, it was found that the demographic
characteristics of the household target consumers are individuals from the middle middle-income
up to the rich bracket, with no specifics of age. Because furniture is a product that can be
considered an essential regardless of what stage of life an individual is in, there is no need to limit
the age of the target market. This can be supported by the results of the survey, wherein all age
groups showed interest towards the proposed product, and no particular group stood out. On the
other hand, there is a need to identify income-level limitations for the target market of HIRAYA.
As mentioned earlier in the paper, specifically in the overview of the proposal section, the products
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of HIRAYA will possess a price tag relatively higher than conventional furniture. With that,
through the survey which contained questions that can answer the matters at hand, it was seen that
individuals from the lower middle-income, low-income, and poor bracket did not show interest in
the product.
In regards to the needs, wants, and preferences of the target consumers, it was also
addressed by the results of the survey. Aside from style, which is an obvious factor that is
subjective to each and every consumer, it was found that consumers highly value their needs of
having durable, environmentally-friendly, and reasonably-priced furniture. This can segway to the
behavioral demographic of the target market, as it is concluded that the target consumers of
HIRAYA are individuals who possess values-driven lifestyles, or lifestyles that dedicate to
sustainability and ethics.
Targeted Segment Specific Descriptions
Firms from hospitality Restaurants, Hotels, Museums, Parks,

industry Resorts, Leisure-providing businesses
Household families and From Middle middle-income, Upper middle-

individuals income, Upper-income, and Rich classes; No
age limitations
Values-driven individuals Individuals who lifestyles dedicated to

sustainable, ethical, and environmentally-
conscious means
Figure 2: Summarized descriptions of HIRAYA’s target consumers
2.4 Primary Data
The survey comprises several sections, with each section aiming to obtain different types
of information. The first section contains only three questions, collectively placed to record the
personal profiles of each and every respondent. The second section, on the other hand, has five
further subsections, namely durability, price, environmentally-friendly, accessibility, and
consumer advertising. This certain section seeks to obtain the levels of assessment of the
respondents’ preferences towards the five aforementioned factors. Furthermore, the third section
17
entails the respondents to rank the five factors in accordance with their perceived importance, and
lastly, the fourth section, contains two questions answerable by yes or no. Though the fourth being
the shortest section, it is deemed to gather the most important data. The results of each section will
be thoroughly discussed in the following paragraphs.
SECTION 1: Personal Profile of Respondents
The total number of individuals who served as the respondents of the online survey
questionnaire summed up to 100. These individuals came from a wide range of age and income-
level groups.
Figure 3: Pie chart of age groups of respondents
Age Classification Frequency Percentage
18-24 Tertiary-level Students 39 39%
25-39 Young Adults 37 37%
40-59 Middle-aged Adults 19 19%
60 and above Old-aged Adults 5 5%
Total 100 100%
Figure 4: Age classifications of respondents with corresponding frequencies and percentages
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Figure 5: Pie chart of income-level groups of respondents
Income Range Classification Frequency Percentage

(Monthly)
Below P 10,957 Poor 9 9%
P 10,957 - P 21,914 Low-income class 10 10%
P 21,914 - P 43,828 Lower middle-income class 25 25%
P 43,828 - P 76,669 Middle middle-income class 13 13%
P 76,669 - P 131,484 Upper middle-income class 8 8%
P 131,484 - P 219,140 Upper-income class 16 16%
P 219,140 and above Rich 19 19%
Total 100 100%
Figure 6: Income-level classifications of respondents with corresponding frequencies and percentages
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Age
Total per
Income level 18-24 25-39 40-59 60 and above income-level
Poor 7 1 1 0 9
Low-income class 4 5 1 0 10
Lower middle- 7 5 3 1 16
income class
Middle middle- 8 14 3 0 25
income class
Upper middle- 4 5 7 3 19
income class
Upper-income 5 5 2 1 13
class
Rich 4 2 2 0 8
Total per age 39 37 17 5 100

group
Figure 7: Cross-tabulation of respondents’ income-level and age group classifications
Given the findings above, it can be seen that, more or less, the survey was well-distributed to be
able to represent the different economic classes and age groups of the Philippines. There are certain
limitations that make it difficult to have an equal distribution, but nevertheless, the survey was able to gather
a substantial amount of representative data.
It is imperative to address matters regarding as to why tertiary-level students, or individuals aged

18-24, are identified in this study as possible target consumers and therefore included as a key variable
during the segmentation process. Considering the age levels of the proponents themselves, it was deemed
probable for that certain age group to be consumers for HIRAYA Furnishings. In this level, it is seen that
the individuals are starting to be given personal autonomy for their preferences by their guardians, and this
may include their furniture choices. Despite them probably not having a personal source of income, the
proponents envision that their family incomes can be a source for their purchasing power.
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SECTION 2: Level of Assessment of the Determined Factors
As the results of the respondents’ profiles have been presented, the succeeding parts of the paper
are to discuss the results and interpretations of the second section. This section is composed of or five
subsections, each dedicated to the five determined factors.
A. Durability
1. When I buy furniture, it is important to me that it will last me a long time.
Figure 8: Line graph of results of respondents’ answers for A1.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Strongly Agree 33 37 18 5 93
Agree 5 0 1 0 6
Neutral 1 0 0 0 1
Disagree 0 0 0 0 0
Strongly Disagree 0 0 0 0 0
Figure 9: Cross-tabulation of results of respondents’ answers with their age groups for A1.
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Income-level
Scale Frequency
Poor Low Lower Middle Upper Upper Rich
income middle middle middle income
income income income class
Strongly 7 9 24 12 8 15 18 93
Agree
Agree 1 1 1 1 0 1 1 6
Neutral 1 0 0 0 0 0 0 1
Disagree 0 0 0 0 0 0 0 0
Strongly 0 0 0 0 0 0 0 0
Disagree
Figure 10: Cross-tabulation of results of respondents’ answers with their income-level for A1.
The digits above show an absolute illustration that the great majority of the respondents
have the need that their purchased furniture be able to hold up for a long period of time. It can be
interpreted that regardless of age or income level, consumers value products that are long-lasting
and resistant.
2. When I purchase furniture, I want to know the process of how it’s made to ensure of its quality.
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Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 17 9 5 1 32
Neutral 9 10 2 1 22
Disagree 0 1 1 0 2
Figure 12: Table of results of respondents’ answers for A2.
Income-level
Scale Frequency
Strongly 3 3 13 4 3 5 12 43
Agree
Agree 5 3 8 4 1 8 3 32
Neutral 1 3 3 5 4 2 4 22
Disagree 0 1 1 0 0 0 0 2
Strongly 0 0 0 0 0 1 0 1
Disagree
The data gathered for this question translate to a rather scattered notion, where the results
show no support for a lone absolute side. Instead, as the majority of the respondents either strongly
agree, agree, or are neutral, an impression can be extracted that consumers generally want to be
informed of how their products are made, or at least what they are made of, in order to be assured
of its quality.
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3. When I purchase furniture, I prefer to buy products that went under quality testing.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 6 7 0 1 14
Neutral 5 7 1 1 14
Disagree 0 0 1 0 1
Figure 15: Cross-tabulation of results of respondents’ answers with their age groups for A3.
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Income-level
Scale Frequency
Strongly 6 8 19 6 5 11 16 71
Agree
Agree 1 1 3 3 1 4 1 14
Neutral 2 0 3 4 2 1 2 14
Disagree 0 1 0 0 0 0 0 1
Strongly 0 0 0 0 0 0 0 0
Disagree
Based on the above, it can be interpreted that whether or not a consumer may belong to the
lowest or highest income-level or age group, they want to be ensured of a product that surpasses
quality testing.
B. Price
1. I am willing to spend a little bit more to be more environmentally conscious.
Figure 17: Line graph of results of respondents’ answers for B1.
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Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 17 8 5 0 30
Neutral 6 8 2 1 17
Disagree 2 1 0 0 3
Figure 18: Cross-tabulation of results of respondents’ answers with their age groups for B1.
Income-level
Scale Frequency
Strongly 4 4 10 9 3 6 14 50
Agree
Agree 3 4 9 2 2 7 3 30
Neutral 2 2 5 2 2 2 2 17
Disagree 0 0 1 0 1 1 0 3
Strongly 0 0 0 0 0 0 0 0
Disagree
Figure 19: Cross-tabulation of results of respondents’ answers with their income-level for B1.
The results of this question also gathered scattered notions, where there are responses from
four of the levels of assessment. However, the majority of the respondents sway to the neutral-
positive area of the spectrum, thus it can be assumed that the rather general consensus of consumers
are willing to spend more as a conscientious attempt towards the environment.
26
2. Reasonable pricing affects my desire to purchase a product.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 5 7 1 0 13
Neutral 3 0 0 0 3
Disagree 0 0 0 0 0
27
Income-level
Scale Frequency
Strongly 5 8 22 11 7 13 17 83
Agree
Agree 2 2 2 2 1 2 2 13
Neutral 2 0 1 0 0 0 0 3
Disagree 0 0 0 0 0 0 0 0
Strongly 0 0 0 0 0 1 0 1
Disagree
The data above give an absolute impression that consumers will always be mindful of the
price on products, and that consumers are generally critical in regards to this factor. It can also be
said that consumers take note of the value of an item, therefore, a hefty sum can still be justifiable
if the product is deserving of such.
3. I would rather spend on high-priced furniture that will last me a long time than spend on
cheaper furniture that can only be used in a short period of time.
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Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 5 10 2 0 17
Neutral 6 1 2 0 9
Disagree 0 0 0 0 0
Income-level
Scale Frequency
Strongly 5 5 20 9 4 12 19 74
Agree
Agree 1 2 5 3 3 3 0 17
Neutral 3 3 0 1 1 1 0 9
Disagree 0 0 0 0 0 0 0 0
Strongly 0 0 0 0 0 0 0 0
Disagree
Similar to the interpretation of the previous item, the digits above show that a great majority
of consumers find a high price justifiable if the item has deserving qualities, such as it being long-
lasting.
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C. Environmentally Friendly
1. I find myself wanting to buy from companies that sell products that address environmental
issues.
Figure 26: Line graph of results of respondents’ answers for C1.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 10 12 2 1 25
Neutral 7 4 2 1 14
Disagree 0 1 0 0 1
Figure 27: Cross-tabulation of results of respondents’ answers with their age groups for C1.
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Income-level
Scale Frequency
Strongly 5 5 14 7 2 8 18 59
Agree
Agree 1 3 4 4 4 8 1 25
Neutral 3 2 6 2 1 0 0 14
Disagree 0 0 1 0 0 0 0 1
Strongly 0 0 0 0 1 0 0 1
Disagree
Figure 28: Cross-tabulation of results of respondents’ answers with their income-level for C1.
When analyzed, the numbers shown are scattered among all five of the levels of
assessment. However, a great majority of individuals identify to have willingness to purchase if
there are beneficial environmental causes that are affiliated with a certain product. It can be noted
especially in the Rich income-level class, as it has an 18:1 ratio of them strongly agreeing to the
prompt of question C1.
2. I feel satisfied if I purchase from companies that care about sustainability.
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Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 9 12 3 1 25
Neutral 2 1 1 0 4
Disagree 1 0 0 0 1
Income-level
Scale Frequency
Strongly 6 7 16 10 3 12 16 70
Agree
Agree 2 2 8 3 4 3 3 25
Neutral 1 1 1 0 0 1 0 4
Disagree 0 0 0 0 1 0 0 1
Strongly 0 0 0 0 0 0 0 0
Disagree
After analyzing the numbers, it can be concluded that consumers generally feel personal
satisfaction when aware of the good implications their purchases may have. Based on the tables,
this is true irrespective of their income level of age group. This data will be especially beneficial
when determining the behavioral profile of the target consumers of the proposed product.
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3. I am conscious about the impact of my purchases on the environment.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 16 11 3 1 31
Neutral 6 7 2 1 16
Disagree 0 0 0 0 0
33
Income-level
Scale Frequency
Strongly 4 3 13 6 2 9 15 52
Agree
Agree 4 3 5 5 5 6 3 31
Neutral 1 4 7 2 0 1 1 16
Disagree 0 0 0 0 0 0 0 0
Strongly 0 0 0 0 1 0 0 1
Disagree
Same as a few of the previous results, there are no absolutes in regards to this certain
question. However, a great majority of respondents identify in the neutral-positive spectrum. With
that, it can be said that consumers of today are generally conscious, or at least more aware, of the
impact of their purchases on the environment.
D. Accessibility
1. I am willing to wait for the manufacturing time of the made-to-order sustainable furniture.
Figure 35: Line graph of results of respondents’ answers for D1
34
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 9 10 4 1 24
Neutral 11 3 2 0 16
Disagree 2 0 0 0 2
Figure 36: Cross-tabulation of results of respondents’ answers with their age groups for D1.
Income-level
Scale Frequency
Strongly 3 5 11 8 5 8 17 57
Agree
Agree 4 2 5 2 1 5 1 24
Neutral 2 3 9 2 2 2 0 16
Disagree 0 0 0 1 0 0 1 2
Strongly 0 0 0 0 0 1 0 1
Disagree
Figure 37: Cross-tabulation of results of respondents’ answers with their income-level for D1.
Through the obtained data, it can be said that a majority of consumers are generally willing
to wait for their products, such as furniture, to arrive, and are even still willing to purchase despite
them being pre-order or made-to-order items. However, there are a few things that were observed.
The first is that the results were significantly scattered in the 18-24 age bracket or tertiary students
classification compared to any other age group. This may imply that the younger generation are
truly more prone to needing instant gratification with their purchases. Another is that when
35
analyzing the ratio between the answers and the respective income-level groups, the Rich are
particularly definitely willing to wait for their purchases.
2. When I purchase a product online, it is important that I am able to navigate through the website
easily.
Figure 38: Line graph of results of respondents’ answers for D2.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 5 4 3 0 12
Neutral 3 0 0 0 3
Disagree 0 0 0 0 0
36
Income-level
Scale Frequency
Strongly 6 9 21 11 6 15 17 85
Agree
Agree 1 1 3 2 2 1 2 12
Neutral 2 0 1 0 0 0 0 3
Disagree 0 0 0 0 0 0 0 0
Strongly 0 0 0 0 0 0 0 0
Disagree
The results of this question elicit a landslide response, with a vastly great majority of
respondents strongly agreeing that a commercial website must be easily navigated through. This
result can be interpreted that consumers generally desire shopping with ease and convenience.
3. I find myself wanting to buy from companies that are able to ship nationwide.
Figure 41: Line graph of results of respondents’ answers for D3.
37
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 6 5 1 0 12
Neutral 5 1 1 0 7
Disagree 1 0 0 0 1
Income-level
Scale Frequency
Strongly 7 7 19 9 6 14 17 79
Agree
Agree 1 2 5 4 0 0 0 12
Neutral 1 1 1 0 2 1 1 7
Disagree 0 0 0 0 0 0 1 1
Strongly 0 0 0 0 0 1 0 1
Disagree
With no need of immense analysis, the results show that the majority of the respondents
strongly agree that a firm should be offering nationwide shipping. This can lead to the notion that
consumers desire accessibility with products, that despite an offering not being available in their
respective direct localities, they are still inclined to purchasing them as long as they are able to.
38
E. Consumer Advertising
1. When I see advertisements about environmental issues, I find myself wanting to buy from
companies that sell products that address these issues.
Figure 44: Line graph of results of respondents’ answers for E1.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 10 14 3 1 28
Neutral 7 5 3 0 15
Disagree 2 0 0 0 2
Figure 45: Cross-tabulation of results of respondents’ answers with their age groups for E1.
39
Income-level
Scale Frequency
Strongly 4 3 14 7 2 8 16 54
Agree
Agree 2 4 6 4 4 5 3 28
Neutral 3 3 5 2 0 2 0 15
Disagree 0 0 0 0 1 1 0 2
Strongly 0 0 0 0 1 0 0 1
Disagree
Figure 46: Cross-tabulation of results of respondents’ answers with their income-level for E1.
Though the responses being more scattered among the levels of assessment, the greater
majority still lies in the neutral-positive range. With that, it can be interpreted that advertisements
that explicitly demonstrate environmentally-related approaches elicit consumers’ desire to
purchase the product being advertised.
2. I prefer it to be advertised online such as (ex: Online Pubmats & Ads) in my social media
accounts, email, and more.
40
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 11 9 7 2 29
Neutral 10 13 8 3 34
Disagree 3 4 0 0 7
Income-level
Scale Frequency
Strongly 2 1 10 6 2 4 2 27
Agree
Agree 3 5 5 2 2 3 9 29
Neutral 3 3 9 3 4 6 6 34
Disagree 1 1 1 1 0 1 2 7
Strongly 0 0 0 1 0 2 0 3
Disagree
41
3. I get persuaded to buy products when influencers promote it.
Age
Scale Frequency
18-24 25-39 40-59 60 +
Agree 4 8 4 1 17
Neutral 18 10 11 2 41
Disagree 2 5 1 2 10
42
Income-level
Scale Frequency
Strongly 0 2 8 1 2 1 1 18
Agree
Agree 1 2 1 6 2 4 6 17
Neutral 8 4 7 8 2 7 8 41
Disagree 0 1 4 3 0 1 3 10
Strongly 0 1 5 1 2 3 1 14
Disagree
Both questions E2 and E3 produce a similar notion, as they are inarguably the questions
that gained the most scattered response. Majority of respondents find these advertising-related
particulars to be not much worthy of attention, with the greater part of the respondents taking the
neutral side. With that, it can be said that advertising is an aspect of business that is perceived as
so-so by consumers, and that they do not really have exclusive preferences towards such.
SECTION 3: Ranking the Factors in Terms of Importance
In this section of the analysis, the proponents will be able to recognize what factors are
perceived to be most important up to least important. This is a necessary aspect for the study, as
the proponents will have an understanding on what factors will be prioritized during the product
creation process.
Figure 53: Line graph showing the results of the ranking of factors in terms of importance.
43
Most Important
Age
Factors Frequency
18-24 25-39 40-59 60 +
Durability 21 23 12 2 58
Price 13 8 4 0 25
Environmentally Friendly 12 11 9 3 35
Accessibility 14 10 5 0 29
Consumer Advertising 4 4 1 0 9
Figure 54: Cross-tabulation of results of respondents’ answers with their age groups for Most
Important Factors.
Income-level
Factors Frequency
Durability 5 5 12 11 6 11 8 58
Price 4 3 8 3 1 5 1 25
Environ- 3 3 6 6 1 8 8 35
mentally
Friendly
Accessi- 3 4 9 5 1 7 0 29
bility
Consumer 1 0 3 4 0 0 0 9
Adverti-
sing
Figure 55: Cross-tabulation of results of respondents’ answers with their income-level for Most
Important Factors.
44
Fairly Important
Age
Factors Frequency
18-24 25-39 40-59 60 +
Price 11 12 7 2 32
Consumer Advertising 18
Figure 56: Cross-tabulation of results of respondents’ answers with their age groups for Fairly
Important Factors.
Income-level
Factors Frequency
Durability 2 5 7 2 0 2 10 28
Price 2 5 9 6 4 5 1 32
Environ- 2 3 5 3 1 4 9 27
mentally
Friendly
Accessi- 2 3 5 1 1 2 3 17
bility
Consumer 2 5 4 1 0 6 0 18
Adverti-
sing
Figure 57: Cross-tabulation of results of respondents’ answers with their income-level for Fairly
Important Factors.
45
Important
Age
Factors Frequency
18-24 25-39 40-59 60 +
Price 11 16 8 2 37
Figure 58: Cross-tabulation of results of respondents’ answers with their age groups for
Important Factors.
Income-level
Factors Frequency
Durability 2 0 6 0 2 2 1 13
Price 2 2 6 4 3 5 15 37
Environ- 4 1 11 1 4 4 2 27
mentally
Friendly
Accessi- 0 2 7 3 3 1 2 18
bility
Consumer 2 1 6 0 2 1 2 14
Adverti-
sing
Figure 59: Cross-tabulation of results of respondents’ answers with their income-level for
Important Factors.
46
Slightly Important
Age
Factors Frequency
18-24 25-39 40-59 60 +
Price 4 1 0 1 6
Figure 60: Cross-tabulation of results of respondents’ answers with their age groups for Slightly
Important Factors.
Income-level
Factors Frequency
Durability 0 0 0 0 0 1 0 1
Price 1 0 2 0 0 1 2 6
Environ- 0 3 3 3 2 0 0 11
mentally
Friendly
Accessi- 4 0 4 4 3 4 14 33
bility
Consumer 1 1 5 1 2 1 2 13
Adverti-
sing
Slightly Important Factors.
47
Least Important
Age
Factors Frequency
18-24 25-39 40-59 60 +
Price 0 0 0 0 0
Figure 62: Cross-tabulation of results of respondents’ answers with their age groups for Least
Important Factors.
Income-level
Factors Frequency
Durability 0 0 0 0 0 0 0 0
Price 0 0 0 0 0 0 0 0
Environ- 0 0 0 0 0 0 0 0
mentally
Friendly
Accessi- 0 1 0 0 0 2 0 3
bility
Consumer 3 3 7 7 4 7 15 46
Adverti-
sing
Figure 63: Cross-tabulation of results of respondents’ answers with their income-level for Least
Important Factors.
After analyzing the mass of data as seen above, it can be deduced that consumers find
durability as the most important factor, environmentally-friendly as a fairly important factor, price
48
as an important factor, accessibility as slightly important factor, and consumer advertising as the
least important factor.
Rank Factor
Most Important Durability
Fairly Important Environmentally-Friendly
Important Price
Slightly Important Accessibility
Least Important Consumer Advertising
Figure 64: Table showing the factors’ ranking in terms of importance, as perceived by the consumers.
With these data, the proponents now know what consumers value the most. Of course, all
five of these factors are essential parts of a product and still should be considered during the action
planning process. However, it helps to know what should be given utmost emphasis based on the
consumers’ lens.
SECTION 4: Other Questions
This last section is deemed to be one of the most integral out of all the items in the
questionnaire. This is due to the fact that this will yield information as to whether or not the
proposal actually has a place in the market if it were to be launched. This section will also
contribute to the search of what the target market of this proposal will be.
1. If the product were available today, would you be willing to purchase the product?
49
Figure 65: Line graph showing results of respondents’ answers for willingness to purchase.
Age
Response Frequency
18-24 25-39 40-59 60 +
Yes 30 32 14 5 81
No 9 5 5 0 19
Neutral 0 0 0 0 0
willingness to purchase.
Income-level
Response Frequency
Yes 5 8 17 12 8 13 18 81
No 4 2 8 1 0 3 1 19
Neutral 0 0 0 0 0 0 0 0
willingness to purchase.
These data show that the proposal will certainly be able to gain traction in the market with
the ratio of the results being 81:19 - a fairly wide gap. However, it is important to also analyze the
results showing which income-level groups are not so keen on the idea of the proposal. Figure 67
shows that, when summarized and rationed, the respondents who responded ‘No’ come from the
lower-middle income to poor spectrum. This data may lead the proponents to know that these
groups are not part of the target market for this proposed product.
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2. Will you be willing to tell your acquaintances about this product if it existed?
Figure 68: Line graph showing results of respondents’ answers for willingness to share to
acquaintances.
Age
Response Frequency
18-24 25-39 40-59 60 +
Yes 36 35 18 5 94
No 1 2 1 0 4
Neutral 2 0 0 0 2
willingness to share to acquaintances.
Income-level
Response Frequency
Yes 9 9 22 13 7 15 19 94
No 1 1 0 1 1 0 4
Neutral 0 0 2 0 0 0 0 2
willingness to share to acquaintances.
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With no need of immense analytics, it can be concluded that consumers will still generally
want to share information about a certain product to their acquaintances, regardless if they
themselves want to purchase it. This piece of information assures the proponents that the concept
of the proposal will be intriguing to the consumers, which is still an important angle to have, since
the success of a product can be attributed to the level of attention and interest it garners.
52
3 CONCLUSION AND ACTION PLAN
Conclusion
After the completion of the various processes and measures done in this study, the
determined research questions were all addressed. It is therefore concluded that the proposal of
HIRAYA, or rPET-sourced sustainable furniture, is a concept that can truly stand in the market if
launched, as it is able to gain traction due the various positive features and characteristics it
possesses. In consideration of the industry that HIRAYA is categorized in, which is the furniture
industry, it puts the proposal to have major potential due to the fact that the industry itself has
bountiful opportunities within it as well. Despite the adverse economic effects that the COVID-19
pandemic has induced, the furniture industry is still a strong force, having both the domestic and
international markets on its back. In another perspective, in the aspect of competition, HIRAYA
is deemed to have a competitive advantage, due to a plethora of reasons. Examples of such is that
the proposal utilizes a unique and innovative concept distinct from the competition, it manifests
sustainability, ethics, and environmental consciousness, which are values that are now prominent
within consumers and society in general, and it also has attributes in terms of durability and
accessibility.
It is also concluded that the target markets for HIRAYA will be businesses from the
hospitality industry, household families and individuals from the middle middle-income, upper
middle-income, upper-income, and rich brackets, as well as consumers who live values-driven
lifestyles. The furniture of HIRAYA are also able to satisfy their particular needs and preferences.
In terms of sustainability, the consumers desire that their furniture be long-lasting, while they are
also generally leaning towards having furniture that went under quality testing, and that they know
are made of quality materials. In the aspect of price, it is determined that consumers are always
critical buyers, but that they are willing to purchase expensive items if they have a value worth the
tag. Regarding the factor of environmental-friendless, it can be implied that most people are
conscious of their footprint on the environment, and thus are generally open to purchasing
products, such as furniture, that can address such. Accessibility is also a factor that consumers
value, as they want to maintain convenience when buying items. Last but not least, advertising is
53
a factor that does not really spark a significant reaction from consumers. Though it can be said that
they do not mind advertising, it is not a factor that they are all-too particular with.
There is a need to acknowledge that the proposal may come off as elitist, or in other words,
only directed to the elite or financially capable while individuals in the poor spectrum are being
ignored. The proponents genuinely resonate with that notion however, it is important to note that
this written proposal is only an initial study regarding the brand. Ideas and concepts regarding such
are well-accepted and recognized by the proponents, but are subject to further research and study.
There is an imposed limitation by rPET technology seeing that there are still no current cost-
reducing methods to arrive at the same product but lower price-points. Nonetheless, the proponents
are looking forward to developing HIRAYA as an inclusive brand to all income levels in the
foreseeable future.
All in all, the proponents find HIRAYA to be in a favorable position. It is concluded that
the proposal is truly an intriguing concept that, although one may not purchase the furniture, they
will still feel the need to share it to other acquaintances. These findings assure the proponents that
HIRAYA does have the potential to earn a significant amount of market share.
Action Plan
Following the positive note that the above-mentioned conclusions of the study have
emulated, these findings will be used by the proponents to create the necessary courses of action
to be taken during HIRAYA’s launch. The proponents find that a series of objectives will be taken
note of when creating the action plan, with each objective focusing on different aspects of the
product launch.
First off, before the products of HIRAYA will be released into the market, the proponents
will apply for certifications that can verify the furniture’s quality as well as the authenticity of its
sustainability claims. This will highly benefit the company, as there will not be any doubts
regarding the products of HIRAYA. The specific certifications that will be sought are from the
Business and Institutional Furniture Manufacturers Association (BIFMA) and Green Seal. BIFMA
is a non-profit organization that works to develop industry standards and advocate for sustainable
environments. To receive a BIFMA Level certification, the proponents will submit HIRAYA’s
54
products to a third-party evaluation process. A qualified expert will determine whether the product
and the company itself meets BIFMA standards for promoting better health and a cleaner
environment. On the other hand, the Green Seal is also another prestigious title. This organization
uses scientific methods to measure certain criteria and ensure compliance with green standards.
Receiving both certifications will steer the company towards the right direction, and will guarantee
an audience, especially values-driven consumers.
Following the reception of the two certifications, the next processes will be concerned with
ensuring clear accessibility for the consumers. This pertains to the development of the brand
website and the negotiations between the HIRAYA and logistic companies on what type of courier
will be utilized during the delivery of the products. Establishing these particular notions will aid
HIRAYA to have a smooth and hassle-free launch for both the company and the consumers.
When the concerns regarding accessibility will be settled, it will be the time for marketing
efforts to roll out. Promotional efforts will be taken to new heights to create hype for the HIRAYA,
which will be done through online efforts such as the brand website. Other social media platforms,
mainly Facebook, Instagram, and Twitter, will present teaser information about the product as well
as availability dates and locations. The company will also release informational videos through the
YouTube platform which will give more facts regarding the furniture. It is after this that HIRAYA
will officially launch two products as for the time being, the Sustainable Chair and Table. A tagline
will be associated with the company, with this being “Own Your Impact”, which refers to the
positive environmental implications that the product manifests.
In the times following the launch, employees, especially customer-handling ones, will be
intensively trained to become educated on the brand and to be able to address the best customer
needs. By this time, the online customer service will be strengthened by having such trained
employees receive and respond to customer messages and inquiries. This is a vital aspect that must
be established by HIRAYA as the positive qualities of the products will be diminished if the
importance of customer assistance efforts will not be acknowledged. This is the time where in
after-sales accommodations will be encouraged.
55
To make the product known and spark positive word-of-mouth, product samples of the two
HIRAYA products will be given to selected individuals such as YouTubers who cater to values-
driven individuals, opinion leaders, influential bloggers, and celebrities. Promotional efforts will
still continue with a mobile ad campaign that can provide additional support to the brand, driving
traffic to its website and social networking sites. In addition to this, the owners will promote the
products to certain businesses in the hospitality industry such as restaurants, hotels, and resorts to
persuade them into using HIRAYA’s furniture for their respective firms.
In the succeeding months, creative development will be done as HIRAYA plans to launch
new features and products. The brand will be looking into launching a customization option
wherein customer-specific orders can be taken, manipulating either the dimensions and color of
the furniture. In addition to this, HIRAYA will also develop an expansion of the collection, adding
shelves and new chair and table styles. The owners, the creatives, and the core technology team
will spearhead this process for the next 5 months for its planned launch afterwards.
To commence the action programs for HIRAYA’s first year since its launch, a new study
will be conducted to assess customer satisfaction. In this, a new set of surveys will be executed to
analyze both the positive and negative experiences by the customers. This will be done in order
for growth to take place in the company, as well as to strengthen customer relations, assuring them
that the brand is more than happy to acknowledge room for improvement.
56
Steps Action Plan
1 Requesting and acquiring BIFMA and Green Seal certifications in

order to verify quality and authenticity of sustainable claims of
HIRAYA furniture.
2 Developing accessibility objectives, including the establishment of a

solid website and logistic plan.
3 Establishing promotional efforts to create media hype in platforms

such as Facebook, Instagram, Twitter and YouTube. The promotional
materials will be online pub mats, promotional videos, and the like.
4 Official launch of HIRAYA with the Sustainable Chair and Table, with
the tagline “Own Your Impact.”
5 Solidifying customer support through intensive employee training.
6 Promoting positive word-of-mouth through commissioning influential

individuals to promote the brand, strengthening ad campaigns, and
communicating with businesses in the hospitality industry.
7 Beginning of product innovation and development processes;

HIRAYA will look into releasing a customization option and
expanding to new styles for the chairs and tables and introducing
shelves into the collection.
8 Conduct a study in order to assess customer satisfaction and elicit data

that can aid the company for improvement and growth.
Figure 71: Table showing a summarized action plan for HIRAYA’s first year in the market
57
4 BIBLIOGRAPHY
Agence France Presse. (2020). Coronavirus: 4.5 Billion People Confined. Barros.
https://www.barrons.com/news/coronavirus-4-5-billion-people-confined-01587139808
Bischof, H. (2019, March 6). Fast furniture: what’s wrong with it and 7 ways to make better
choices (for you and the planet). Medium. https://heidi-
bischof.medium.com/fastfurniture-whats-wrong-with-it-and-how-to-start-giving-a-crap-
about-our-planet-and-eb780bf74de9
Bumgardner, M., Nicholls, D. (2020). Sustainable practices in furniture design: A literature study
on customization, biomimicry, competitiveness, and product communication. Forests,
11(12): 1277. https://doi.org/10.3390/f11121277
Cheung, J., Haller, K., & Lee, J. (2020, June). Who are the 2020 consumers? Meet the 2020
consumers driving change. https://www.ibm.com/downloads/cas/EXK4XKX8
Cummins, E. (2020, January 15). Fast furniture is an environmental fiasco. The New Republic.
https://newrepublic.com/article/156208/fast-furniture-environmental-fiasco
Dumaguete City Government Official Website. (2018, March 13). DENR to review dumpsite
closure plan. https://dumaguetecity.gov.ph/2018/03/13/denr-to-review-dumpsite-
closureplan/
Emmanuel, J. (2018, July 27). The road to zero waste. Silliman University.
https://su.edu.ph/reflections/the-road-to-zero-waste/
Gupta, R.,& Shukla, V.K. (2019). Sustainable Transformation in Modest Fashion Through
“RPET Technology” and “Dry-Dye” process, using Recycled PET Plastic. International
Journal Of Recent Technology and Engineering,3(3).
https://doi.org/10.35940/ijrte.A1432.09831
Lectra. (2020). The Furniture Industry Post Covid - 19. Lectra.
https://www.lectra.com/en/library/the-furniture-industry-post-covid-19
Lopez, E. (2020, December 5). Philippine homeowners power furniture stores through Covid-19
with ‘fixer-upper’ plans. SCMP. https://www.scmp.com/week-
asia/people/article/3126860/its-our-lifestyle-sheng-siongs-lim-hock-leng-why-
singapores-mighty
58
Lopez, R. (2021, March 9). Message of Secretary Ramon Lopez, ASEAN International Furniture
and Furnishings show VX 2021. Department of Trade and Industry.
https://www.dti.gov.ph/speeches/message-of-srml-asean-international-
show/?TSPD_101_R0=650ae49c8d8619ba1249afe8de01b3f6wF8000000000000000026
d46967ffff000000000000000000000000000060757cc4003c41975f0843e41b41ab2000e9
66ab03cd8bd88d1e04a11beddc3150d59f58424284b90bc62a86fb42adf7a2088b755b020a
28003a4ae3c7bcc965d10ccd9be25025cb3d48cedc96a874ec483948817ebcba04e83aafdf5
214e519c7
Hu, Y., Shi, P., Yan, M., Yang, H., Zhai, Y., & Zhao,H. (2019). Emission of volatile organic
compounds from new furniture products and its impact on human health. Human and
Ecological Risk Assessment: An International Journal, 25:7, 1886-1906.
https://doi.org/10.1080/10807039.2018.1476126
Keenan, M. (2019, December 20). What is direct and indirect competition? Many Chat.
https://manychat.com/blog/indirect-competition
PET Resin Association. (2015). An introduction to PET.

http://www.petresin.org/news_introtoPET.asp
Philippine Furniture Industry. (n.d.). Securing The Future of Philippine Industries. Industry
Government Philippines. http://industry.gov.ph/industry/furniture/
Radhakrishnan, S., Vetrivel, P., Vinodkumar, A., Palanisamy, H. (2019). Recycled Polyester –
Tool for Savings in the Use of Virgin Raw Material. Environmental Engineering.
https://doi.org/10.1007/978-981-13-9578-9
Statista. (n.d.). Furniture & Homeware.
https://www.statista.com/outlook/dmo/ecommerce/furniture-appliances/furniture-
homeware/philippines
Valenzuela, S. (2021). Trade groups share insights, best practices to overcome COVID-19
impact. Philippine Chamber of Commerce and Industry: The Voice of Business.
https://www.philippinechamber.com/best-practices-to-overcome-covid-19
59
5 APPENDICES
5.1 Consent Letter
Dear Respondent,
Good Day!
We, Grade 12 students of the ABM Strand of Silliman University Senior High School, are
currently conducting a research entitled "A Market Analysis on Recycled Polyethylene
Terephthalate (rPET) Furniture: Assessing the value of sustainable furniture in the Philippine
market through determining the possible target consumers and their perceptions and preferences"
for the completion of the requirements in our Inquiries, Investigations and Immersion subject.
This study aims to determine the possible target market for our product proposal, the rPET-
sourced Sustainable Furniture. In addition to this, the study also aims to discover the perceptions
and preferences of the consumers towards the proposed concept, which is deemed requisite in
order to arrive at an answer for the previously mentioned goal. Through the analyses that will be
conducted using the gathered data, the researchers will be able to assess the value of the sustainable
furniture in the market, whether or not it can attain a share.
Participation in this study is completely voluntary. At any point in time you decide to
withdraw from participation in this study, you may do so without penalty. The findings concluded
by the researchers from this study may be published for public consumption and educational
purposes to enlighten others in this aspect for future studies.
Thank you for your time and God Bless!
Respectfully Yours,
Noted by:
Rami Almannai
Carizza Barluado
Marianne Credo
Ryzelle Culanag
Enrica Dinopol
Shane Lerio
Leira Ronato
RESEARCHERS
60
5.2 Survey Form
SECTION 1: Personal Profile of the Respondents

1. Age
o 18 and below
o 18-24
o 25-39
o 40-59
o Other: _______
2. Monthly family income (Please round off your numbers i.e. P15,000.00)
o Below P10,957 monthly income
o P10,957 to P21,914 monthly income
o P219,140 and above monthly income
61
SECTION 2: Level of Assessment of the Determined Factors
Instructions: Please shade the box that corresponds to your level of agreement to the given
statement.
A. Durability
When I buy furniture, it is important to me that it will last me a long time.
When I purchase furniture, I want to know the process of how it’s made to ensure of it’s quality.
When I purchase furniture, I prefer to buy products that went under quality testing.
B. Price
I am willing to spend a little bit more to be more environmentally conscious.
62
Reasonable pricing affects my desire to purchase a product.
I would rather spend on high-priced furniture that will last me a long time than spend on cheaper
furniture that can only be used in a short period of time.
C. Environmentally Friendly
I find myself wanting to buy from companies that sell products that address environmental
issues.
I feel satisfied if I purchase from companies that care about sustainability.
I am conscious about the impact of my purchases on the environment?
63
D. Accessibility
I am willing to wait for the manufacturing time of the made-to-order sustainable furniture.
When I purchase a product online, it is important that I am able to navigate through the website
easily.
I find myself wanting to buy from companies that are able to ship nationwide.
E. Consumer Advertising
When I see advertisements about environmental issues I find myself wanting to buy from
companies that sell products that address these issues.
I prefer it to be advertised online such as (ex: Online Pubmats & Ads) in my social media
accounts, email, and more.
64
I get persuaded to buy products when influencers promote it.
SECTION 3: Ranking the Factors in Terms of Importance

Rank which factors affect your purchasing as a consumer:
1 - Least Important 2 - Slightly Important 3 - Important

4 - Fairly Important 5 - Most Important
65
SECTION 4: Other Questions
If the product were available today, would you be willing to purchase the product?
o Yes
o No
Will you be willing to tell your acquaintances about this product if it existed? *
o Yes
o No
66

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SILLIMAN UNIVERSITY

SENIOR HIGH SCHOOL

A Market Analysis on HIRAYA: Assessing the value of Recycled

ALMANNAI, RAMI RASHID

Ms. Ria Frances Malinao

Rationale of the Proposal

Overview of the Proposal and Company

Figure 1: HIRAYA Table and Chair Set 1

Figure 2: HIRAYA Table and Chair Set 2

1.3 RESEARCH OBJECTIVES

The proponents formulated the concept of rPET Sustainable Furniture as a product of

1. Who is the target market for rPET Sustainable Furniture?

Taking everything into consideration, including post-pandemic forecasts, the proponents

Mandaue Foam is inarguably the largest furniture retailer in the Philippines.

SM Group’s Our Home is one of the leading furniture retailers in the

Figure 1: SWOT Analysis of HIRAYA

Targeted Segment Specific Descriptions

Firms from hospitality Restaurants, Hotels, Museums, Parks,

Household families and From Middle middle-income, Upper middle-

Values-driven individuals Individuals who lifestyles dedicated to

Figure 2: Summarized descriptions of HIRAYA’s target consumers

2.4 Primary Data

SECTION 1: Personal Profile of Respondents

Figure 3: Pie chart of age groups of respondents

Age Classification Frequency Percentage

18-24 Tertiary-level Students 39 39%

25-39 Young Adults 37 37%

40-59 Middle-aged Adults 19 19%

60 and above Old-aged Adults 5 5%

Total 100 100%

Figure 4: Age classifications of respondents with corresponding frequencies and percentages

Income Range Classification Frequency Percentage

Below P 10,957 Poor 9 9%

P 10,957 - P 21,914 Low-income class 10 10%

P 21,914 - P 43,828 Lower middle-income class 25 25%

P 43,828 - P 76,669 Middle middle-income class 13 13%

P 76,669 - P 131,484 Upper middle-income class 8 8%

P 131,484 - P 219,140 Upper-income class 16 16%

P 219,140 and above Rich 19 19%

Total 100 100%

Figure 6: Income-level classifications of respondents with corresponding frequencies and percentages

Total per age 39 37 17 5 100

Figure 7: Cross-tabulation of respondents’ income-level and age group classifications

It is imperative to address matters regarding as to why tertiary-level students, or individuals aged

1. When I buy furniture, it is important to me that it will last me a long time.

Figure 8: Line graph of results of respondents’ answers for A1.

Figure 11: Line graph of results of respondents’ answers for A2.

Figure 12: Table of results of respondents’ answers for A2.

Figure 14: Line graph of results of respondents’ answers for A3.

1. I am willing to spend a little bit more to be more environmentally conscious.

Figure 17: Line graph of results of respondents’ answers for B1.

Figure 20: Line graph of results of respondents’ answers for B2.

Figure 23: Line graph of results of respondents’ answers for B3.

Figure 26: Line graph of results of respondents’ answers for C1.

2. I feel satisfied if I purchase from companies that care about sustainability.

Figure 29: Line graph of results of respondents’ answers for C2.

Figure 32: Line graph of results of respondents’ answers for C3.

Figure 35: Line graph of results of respondents’ answers for D1

Figure 38: Line graph of results of respondents’ answers for D2.