Management Paper

Design & Arts Management (PROFES2)

An Overview of their Management and Company

Submitted by: Baligod, Patricia Chingkiat, Denise Dee, Isabelle Namalata, Lorenz Palaganas, Esmeralda Reyes, Alexandra AB-FDM DAM3

Submitted to: Ms. Anna Yu-Asensi Submitted on: 13th March 2012

Company Background
BENCH started out as a small business selling mens t-shirts consigning at department stores like Shoemart and Landmark back in 1987. This was common at that time wherein a brand would be known for just one item alone and when with underwear you think of JOCKEY, the same was true for t-shirts you thought of BENCH. The brand is actually a contraction of its founders name, Mr. Ben Chan, who is currently the companys Chairman and Chief Creative Director. Back then, he was solely responsible for the designs of the t-shirts and oversees the production of these garments. He runs this company along with the help of the couple Mr. Virgilio and Mrs. Nenita Lim until now (the latter being his sister). Mr. Virgilio Lim is in-charge of System and Operations while Mrs. Nenita Lim manages the companys finances. Also in the executive board is the couples son Mr. Brian Lim and the companys Over-all General Manager, Mr. Jude Ong.

BENCH established their first store at the Quad which is now more popularly known as Glorietta in Makati while another stand-alone store was built in SM North Edsa eventually. At that time BENCHs logo was of much literal take with an actual bench integrated on the logos design. Later on, the bench was dropped and the brand name stood by itself but not for long. Around the latter part of the 1990s, before the internet became a global phenomenon, BENCH joined in on the technology craze adding a / (slash) to their trademark signifying its

forward and futuristic vision for the brand. The logo in proliferation now is of the word or brand name bench/ in white color placed on top of a red rectangle. During BENCHs early years, there were still no major local fashion brands that existed. PENSHOPPE did join the market later on and became one of their early competitors but BENCH grew at an unparalleled rate. They were the pioneers in the use of celebrity endorsers. Their first endorser was the then relatively unknown actor Richard Gomez and it was of mutual benefit as their partnership both made them into household names. It is BENCHs strategy to tap up-and-coming actors to promote the brand. BENCH was also aggressive in publicity being the first fashion brand in the country to use television advertisements and utilize giant billboards for their exposure. Due to this, every company first was also a first for the entire industry as a whole. To date, BENCH is known as the Philippines most successful crossover in fashion and lifestyle. It adapted the global trend of fashion houses and labels reinventing themselves as lifestyle stores. From its humble beginnings, BENCH has now a wide range of products including Bench Tweeners for budding teenagers, Bench Body and Bath specializing in bath and fragrance products, and now HerBench offering a complete womens line, including fragrances and cosmetics. They also have a distinction of being virtually present in every retail space in the Philippines and have a vast network of stores and outlets that have also expanded worldwide, reaching as far as the United States, the Middle East and with concentrated efforts in mainland China.

Creative Industry Trends

ADVERTISING

BENCH has always been known for their humongous billboards plastered on all the major thoroughfares all over the metro and country. It also their companys strategy to bank on these up-and-coming stars from major television stations to endorse their brand to keep it fresh and current if you will.

The company focuses much of their attention on billboards and on newsprint, not so much on radio as a medium. They advertise frequently on all the leading magazine titles that are related to fashion and work with various advertising agencies to help conceptualize on their next advertising tactic. It is BENCHs primary objective to keep their ads creative and attractive. They keep tabs on the latest and they do follow trends. More recently they have asked international stars like Michael Trevino of the Vampire Diaries, Lucy Hale of Pretty Little Liars and popular singer-songwriter Bruno Mars to endorse the brand in line with their positioning as a global brand.

 ARCHITECTURE

Not

shy

away

from

admitting that they follow trends, BENCH manages to infuse whats going on in worldwide retailing

standards because of Mr. Ben Chans and his teams travels abroad. They

constantly seek inspiration by visiting other establishments while they also have an in-house architect and designer who works for them in doing the lay-out, interiors and exteriors of their branches and stores.

The current trend that BENCH is leaning towards is on the vintage, Americana vibe. They are geared more on the classic appeal of wood, complete with wooden floorings and vintage wallpapers for decorations on the walls FASHION DESIGN

Aside from having a team of in-house fashion designers and graphic designers and their constant collaborations with the biggest names in fashion design in the Philippines, BENCH prides itself with simple yet fashionable items. Everything has to go through Mr. Ben Chan before released in the market.

Mission and Vision Statement

VISION To be a recognized world brand among the best world brands.

Basically the vision of the company is to be a globally recognized Filipino brand that is at par and holds its own in the global and vast market in the world. It is without contestation that their vision is clear and focused so much so that judging from their 25 years of existence in the market; they have truthfully abided by their vision with the hopes of adding more feathers to their otherwise well-decorated cap.

MISSION When we create, we inspire, When we make, we innovate, When we lead, we serve.
BENCHs company mission is as concise and inspiring as it can get. It arouses positive feelings and emotions, motivates readers to action, and generates the impression that the company is worthy to be supported because it has a purpose. Although considering the 9 characteristics of a mission, the BENCH mission statement is highly philosophical and does not elaborate and specify on its customers, its market and such. Its very broad but is a reaffirmation of what should be expected of them.

4Ps in Marketing
PRODUCT As we all know, Bench offers a wide variety of products, from clothing pieces, cosmetics, lingerie, accessories and even snacks. Though the company caters to both class B and class C, they have a quite strict quality control. They make sure to provide the mass high/good quality pieces for affordable price range. Even to their sub-contactors factory, they station strict quality control personnel to make sure the production is well-guided. When it comes to the design of their products, Bench invests on their creative team by sending them different International fashion weeks to gather up from the latest trends and try to produce as much designs as they can, while Ben Chan himself makes the final say if its a go or not. Since Bench opened their doors to the international market, they also provided few adjustments to the size charts. Which the original size chart is specifically made for their Filipino consumers.When it comes to their packaging, Bench is starting to adapt the no plastic rule by only allowing paper bags every Wednesday. The company supports eco-friendly campaigns and trying their best to influence the Filipino mass on doing the same thing. PRICE Price is what bench standout from their competitors and thats what keeps their competitors in bay. Since they cater to class B and class C, their prices dont go overboard; Bench maintains the affordable price range for the mass. Though they wont spill how they arrive to the price mark-ups, they make sure that its still light on the pocket. For the quality Bench provides us and the affordable prices, that makes Benchs merchandise worth every penny and this is one possible reason why they are still leading the local market. PLACE As of now, Bench has opened over 300 branches worldwide and has their brand in almost every mall here in the Philippines. Regarding with where they manufacture their products, they have several factories (sub-contract) in India, China and here in the Philippines. All distribution points are centralized, they try to rotate and replenish their stocks as much as they can. As of attracting more customers, Benchs creative team tries to keep up with whats new and develop more innovative ideas on new interiors to their stores. They update and refurnish from time to time to catch peoples attention. PROMOTION Promotion is considered as of the most important branch of the 4Ps. Bench invests more on what they think is the most effective advertising medium, which is putting up billboards around the city. The company chooses wholesome personalities to promote their line. To be exact, they choose the up and coming and the It girls and boys in the industry. They trend to steer away from personalities with

bad reputation and issues. In short, they play on the safer side of the boat because they want to keep their brands wholesome image. Bench also started to utilize their promotions by the use of the internet. Like other brands, Bench also provided their customers with online shopping to their website. So people can easily access their products and their latest events. When it comes to the percentage of their income spent on advertising, they are willing to spend 3% just for it. Investing too much on promotion can be risky but then at the end of the day, it is worth every penny spent.

McKinseys 7S
SHARED VALUES All companies out there have a mission statement and a core value structure that they hold to. For the Bench Company, Loyalty, Commitment, and Integrity-these are the values that keep the employees working towards a common destination as a team and are important to keep their business alive. He believes that it is important to have the right core values in an organization in order to achieve excellence. STYLE There are many ways to lead and every leader has their own style. But for Bench, the style of their company is participative, which for them it is very effective because they follow a certain procedure or a policy that everything must be done accordingly. They are performing routine tasks over and over. It allows the team to provide input and opinions before making a decision, although the leader which is Ben Chan has the final say, but he gathers information from the employees before making the final decision. Every important tasks or projects it needs Ben Chan's approval first. STRUCTURE The Bench Company is a family run fashion and lifestyle business under a sole proprietorship type of business structure with Ben Chan, chairman and executive creative director, spearheading the company. Bench, which consists of 4,000+ employees, is divided into 15-16 departments such as Finance,

Creative, Legal and Visual, etc. The companys organizational structure is a mix of flat and hierarchical, where the top part of the structure is flat (wherein the CEOs of different departments are equal) and further down it is in a hierarchical structure (managers & staff). The decision making and controlling of the company is centralized with Mr. Ben Chan as a very participative and collaborative head, all decisions should be administered and approved by him. Memos and emails are the main lines of communication of the company. STAFF There are around 4,000+ in the company, from CEOs to department heads and outlet/branch staff. It differs in requirements when the company gets employees for their outlets and offices. In terms of getting new employees, theres a higher requirement, in terms of experience and academic background (should be a college graduate, etc.,) when for their department offices but when it comes to getting employees for their branches (branch managers, sales clerk) theres only a rigid physical requirement to meet. High school graduates are allowed to fill branch positions as well. Bench efficiently trains their employees to close the gap in required competencies. SKILLS The strongest skills represented within the company are creativity, loyalty and the ability to further innovate. The company is known for being budget friendly, especially against its competitors who have a higher price range such as Penshoppe and Folded & Hung. For Bench, they treat their employees as their best investments. Employees attend a Bench culture orientation and go through trainings as they grow in the company.

SYSTEMS Bench had always outdone their competitors because of their budget friendly prices and their accessibility to the consumers. The company assures that their prices will always be easy for all intended markets to afford without sacrificing quality. Bench, who had launch their website 8 years ago (2004), proudly boasts their accessibility to consumers by making them experience shopping Bench without leaving the house. The company also has their own Twitter and Facebook accounts, taking to account that social networking sites are the fastest way to connect with the consumers. STRATEGIES Bench has been spearheading innovation in the clothing industry throughout the years. Thats the reason why they have lasted for 25 years while their competitors have slowly waned down or completely shut down in the market. Bench always produces products that are branded as items customers must own and they always know how to market it as the hottest commodity for their consumers. They keep the brand fresh by always collaborating, always creating a buzz around them and mainly because they know how to satisfy their market.

SWOT Analysis
Strength Strong brand image Diversified company Well positioned stores Good promotional strategy Goal oriented company Captured a great amount of local market share

Weaknesses - Low brand recognition with high class citizens - Their products doesnt appeal to Class A citizens Opportunities Capture more market share annually Open up new branches in other countries Have a better brand recognition with higher class citizens Create new services New clothing line

Threats New clothing line of other competitors New competitors both local and foreign Economic threat in the Philippines Rapid change in fashion

Conclusive Recommendation
One of the surprising things we learned during our interview with Mr. Jude Ong was how BENCH was a family run business and that there were no partners and other investors involved. He told us that they really wanted to keep it this way to keep the executive decisions to them and to fully control where the company is headed to.

Although there is nothing wrong about having sole proprietorship and having Mr. Ben Chan as the sole creative drive in the company, we think it is high time for the company to consider having investors and shareholders take part in their company. Especially in their quest into becoming a global brand, it is highly recommended for them to look for interested and more established partners here and abroad to help them in this endeavor. Gaining a partner to help BENCH have a steady foothold in the international scene is risky, but in the end it is helpful and beneficial for them as well. With BENCH already capturing a great amount of local market share and a strong brand image, collaboration with another top retail line of international caliber should eliminate other local competitors.

Bench is a relatively tight-knit unit and they really work closely in giving their market the best products, fashionable clothes and newsworthy events. In this aspect, Bench has always succeeded and their achievements

have made them incomparable in the industry. Filipinos have long acknowledged them superior to the rest of the local clothing brands and they do not rest on their laurels in continuing their excellence and they are not complacent.

But when asked if they survey their market and ask for insights on what they feel their market still needs or is lacking off, Mr. Jude Ong realizes this as their weakness. Bench does not really have a system to address their customers needs and wants and just rely on Mr. Ben Chans gut feel on what to provide and offer for their market.

Truthfully so, Bench may know the pulse of what their Philippine market wants but if they are committed to providing to the international market amidst all the foreign competitors and fashion labels, they need to dedicate efforts into producing a research team that will dictate trends, advise them on strategies and guide them as to how to penetrate steadily and not haphazardly.

The international stakes are high and Bench is already at the pedestal of becoming the first internationally recognized, adored and patronized Philippine brand. All that Bench to do now is to have the sufficient resources, skills and game plan if they really in it to win the global market. Product

quality, pricing and advertising are areas Bench have to increase focus on to compete in the highly competitive and ever changing retail industry.

Pleasing the Philippine market is one thing while becoming a global clothing company is another. Bench is more aggressive than ever in this goal but everyone is behind them, everyone is a supporter for that Philippine brand that is soon-to-be synonymous to world class fashion.