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Colegio San Agustin Bian

College Department
Southwoods City, City of Bian, Laguna

Handumanan Advocacy, Inc.


I.

Executive Summary
This proposed business venture will be carried out along with the social mission of
supporting the efforts of
people in rural areas for a sustainable living. The
introduction in the market of hand-woven cloth shall be used as the launching pad of
the advocacy. This will be introduced as Handumanan, a couture clothing brand made
of Filipino traditional hand woven cloth to be innovated into creative garments suitable for
the modern generation. Handumanan means sweet remembrance and thus shall

showcase collection pieces out of the use of the hand-woven fabric.


Estimated cost for the implementation of the marketing plan is P700,000. This shall
cover rental of sewing machine and the working capital such as raw materials, labor
and other direct and indirect costs covering administrative and marketing expenses.
The cloth shall be woven exclusively by master weavers of Bugasong, a town in
Antique Province and Miagao, also a town in Iloilo Province based on the design and
color specification of the social enterprise. Development of garment design will be
done in-house in Binan, Laguna and production will initially be subcontracted to
nearby dress shops depending on the intricacies required on the garment design.
The products will be launched as couture clothing collection by creating a campaign that
will stir the nationalistic pride inherent in each and every Filipino T argeted market
would be the upper to middle income bracket who can afford to buy and sustain their
preferences for high fashion and unique quality garments and accessories.

II.

Situational Analysis
A. Company Analysis
Handumanan Advocacy, Inc. shall be a newly established firm to be registered
with the Securities and Exchange and Commission (SEC) with an authorized
capital stock of ONE MILLION PESOS (Php 1,000,000) divided into 1,000,000
shares with the par value of ONE (P1.0) pesos per share where twenty-five (25%)
percent or TWO HUNDRED FIFTY THOUSAND PESOS (P250,000) of the
authorized capital stock shall be subscribed.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

The following are the incorporators/stockholders of the corporation as of 24


September 2014:
Subsriber

Nationalit
y
Filipino
Filipino
Filipino
Filipino
Filipino

No. of Shares
Subscribed
50,000
50,000
50,000
50,000
50,000
250,000

Frederick Valdevieso
Ruel Rosillon Jr.
Katelyn Rose Duran
Girlie Orlanda
Ben Santos
Total
*In accordance with The Corporation Code of the Philippines

Amount
Subscribed
P 50,000
50,000
50,000
50,000
50,000
P 250,000

Amount
Paid-up
P 12,500
12,500
12,500
12,500
12,500
P 62,500

The members of the Board and Senior Management are the following:
Nationality
Frederick
Valdevieso
Ruel Rosillon Jr.
Katelyn
Rose
Duran
Girlie Orlanda
Ben Santos
Prof.
Ronald
Hontiveros

Filipino
Filipino
Filipino
Filipino
Filipino

Board of
Directors
Chairman

Company
Position
President/CEO

Member
Corporate
Secretary
Member
Member

VP/COO
Secretary/Legal
Officer
Treasurer
Admin/Support
Management
Consultant

The members of the Board and key officers of the Handumanan Advocacy, Inc.
are currently first year students candidate for Bachelors Degree in Business
Administration major in Marketing Management at the Colegio San Agustin
Binan under the supervision of Professor Ronald Untiveros.
They have organized themselves to pursue a common advocacy of helping the
people of Antique and Iloilo by providing a sustained livelihood support through
the operation of the Handumanan Advocacy, Inc.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

B. Market Analysis
1. Macro Analysis
Please refer to Appendix 1
2. Micro Analysis
a. Bugasong, Antique
The municipality of Bugasong is located at the center of Antique which is 43
kilometers away from San Jose, the provincial capital and 140 kilometers
away from Iloilo, the regional capital. It is classified as a third class
municipality with farming as the dominant activity and primary source of
income of households. Bugasong is famous for its handloom weaving located
in Bgy. Bagtason known for its handwoven patadyong. Its best sellers are
handkerchief called tubao, the plain patadyong known as yano and the
patadyong with embroidery called as pinilian. A known producer and
maker of quality woven products in Antique is the Bagtason Loom Weavers
Associations (BLWA). The patadyongs are also made into shawls, leis, scarfs,
wallets, hats, bags and table runners which BLWA can also personalize the
designs and colors according to the requirements of its customers.
The art of patadyong weaving is very intricate. The weavers start by
determining how many meters and pieces can be made with or without the
design. Then they combine different colors of the threads according to the
chosen color combination if clients would want it personalized and trendy. For
the standard patadyong design, the threads are mixed to capture the tones of
nature and also to show personal status. The weaving is done by interlacing
the different colors of threads through a wooden handloom which is locally
called as tiral or habulan. Earth colors are a standard pick in making the
patadyong: blue, green, yellow are among those.
Finished products are available at the BLWA compound at much cheaper
price. If bought in the market, price of shawls can go as much as Php 450.00,
leis at Php100.00, scarfs at Php180.00 and patadyong at Php850.00.
BLWA weavers continue to practice the old process of patadyong weaving
despite the availability of modern weaving machines.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

b. Miag-ao in Iloilo
Miag-ao is under the 1st District of Iloilo which is primarily an agricultural
town, with rice as its primary crop. However, it has been known for its
traditional industry which is the hablon, a hand-woven textile made of
cotton, abaca, pineapple or silk. Hablon is derived from the Hiligaynon word
habol, meaning to weave, and hablon refers to both the process of weaving
and its finished products.
The history of hand-loom weaving practices in Iloilo started when weaving
materials were introduced during the barter trade with the Chinese. Weaving
became a major export for Iloilo in the 1850s with Iloilo then known as the
"textile capital of the Philippines" for its production of pia (pineapple fibers),
silk, jusi (combined weaving of pia and silk), and sinamay (combined
weaving of abac and cotton). It was due to the opening of the port of Iloilo
which boosted the popularity of Ilonggo fabrics on the international scale.
However, weaving declined by the end of the century (1880s) with Ilonggo
entrepreneurs shifting capital to growing sugarcane, and the availability of
cheap machine-made British cotton cloth.
Today, local weavers have found a niche market in specialty fabrics such as
hablon. Specialty fashion materials in the market during the 1980s and 1990s,
brought in a renewed demand for hablon. The government through the
Department of Trade and Industry has also helped revive the weaving industry
in Iloilo through adaptive local skills training and other investments. The
hablon weaving industry has traditionally been dominated by skilled women
working in numerous weaving cooperatives, particularly in the town of
Miagao in Iloilo. The loom weaving skills are passed down from mother to
daughter, and the daughters are expected to help their families in becoming
involved with the trade as they get older. Thus, there is a tendency for
younger women to be complacent about educational pursuit since after
graduating high school, girls are expected to replace them in production
centers and become providers for the family.
Loom weavers can finish three to five meters a day, working for four to five
days a week. They are being paid at an average of 45 pesos per meter for
weaving and P3 per meter for warping. Total cost of hablon cloth is P114.15
per meter, which can be sold commercially at P250 to P350 per meter,

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

depending on the quality of materials used. They can produce hablon at a net
profit of 35% which only requires labor, materials and minimal overhead, and
administrative and marketing costs. Major cost component are the raw
materials.
The major hablon producers in Miag-ao include Indag-an Multi-Purpose
Cooperative, Connie Hand-woven Products, Factos Hand-woven Products,
Natinga Hand-woven Products, Valencia Hand-woven products, Miag-ao
Hablon Weaving, Miag-aos Warps and Wefts.
Today, hablon is used in barongs - a traditional men's formal wear, gowns and
shawls to bags, belts, decorative linens for the home, and other accessories
sold locally and internationally. High-end customers such as local and
international fashion designers and boutiques value the craftsmanship and fine
texture of hablon products which enables most Miag-ao producers to
command higher market prices. Corporate buyers such as airline companies,
schools and government offices prefer made-to-order hablon cloth for their
office uniforms. Local customers, on the other hand, are frequent buyers who
normally buy home and other accessories with unique designs. These
examples only prove the general acceptability of hablon products in the
market.
Finished products are usually displayed in the cooperatives display room or
in fashion boutiques, showrooms, and tiangge. Personal marketing is often
used to get direct orders from the customers and products are delivered to
clients via public transportation such as motorbikes and jeepneys. Products are
also promoted through trade fairs and festivals organized by local government
unit and the national government agencies like the DTI. Product brochures are
also used to reach a wider market base.
Based on the study conducted by the Philippine Commission on Women in
2013 related to value chain analysis, the following are the identified
challenges confronting the Hablon-Making Industry of Miag-ao:
1. Stable supply of affordable raw materials (i.e. thread yarns) - producers
are currently dependent on imported raw materials from China and
Thailand.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

2. Fast lab-to market business cycles other business opportunities could not
be fully explored due to the manual processes and limited financial
capacity of the operators.
3. Limited designs of hablon some producers do not keep a large number
of variety of designs which could diminish hablon market shares in the
local textile industry.
4. Skilled hablon designers working as overseas Filipino workers (OFWs) this will diminish the number of local designers unless the industry is
linked to a learning institution that will help build local in fashion
designing pool.
5. High-interest rate for micro-credit producers find difficulty paying loans
especially during lean months.
By taking into consideration the identified opportunities and threats faced by
the textile and the local weaving industry, a business plan is developed to
transform these challenges and create business opportunities for the hablon
products under the brand name Handumanan.
C. Competitor Analysis
The Handumanan Collection could stand on its own as unique handcrafted
products incomparable to machine fabricated materials. There are other similar
creative hand woven materials in the Philippines such as the Tinalak of South
Cotabato, among others, which have established its own niche of buyers and
would not pose a threat in launching the Handumanan collection.

III. Strategic Marketing Plan


A.

Market Segmentation
The Handumanan Advocacy, Inc. shall implement a geographic segmentation of
the Philippine market targeting primarily the main metropolis of the Philippine
archipelago such as Makati City and Manila for Luzon, Cebu City for Visayas and
Davao City for Mindanao where most of the high end malls and the countrys
socialites and fashion conscious residents thrive.

B.

Target Market

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

Since the products will be launched as couture clothing collection, targeted market would
be the upper to middle income bracket who can afford to buy and sustain their
preferences for high fashion and unique quality garments and accessories.

C.

Positioning
For fashion enthusiast and high end markets, Handumanan collection shall be a couture
clothing brand made of Filipino traditional hand woven fabric innovated to bring the
creativeness demanded by the modern generation. It is not only highlighting the style but
also the craftsmanship and authenticity of Philippine Culture. Handumanan collection
brand shall be a symbol of the richness of indigenous aesthetics.

IV. Marketing Mix Strategy


A. Product
Handumanan collections are products made from hand woven cloth made in the Visayas.
Hinabol or Pinilian is the local name of this product produce in a small barangay of a
town in Antique and referred to as hablon by weavers in Miag-ao, Iloilo. This unique
traditional craft is one of the treasured art of the Philippines long before the Spanish
influence. Made of colorful cotton threads using an equipment called Tiral. Workers
wove to make outstanding checkered design accented by metallic threads to give shinny
effect on its finish product. On the older days the main finish product of hinabol is a
wraparound skirts for women, especially for the elders. Man also use this for their camisa
and trouser. Today, there are few remaining craftswomen making this cloths. Thanks to
the support of an Organization that supports the remaining women creating the cloths the
folk crafts heritage is somehow preserved.
Considering the value and significance of this cultural craftsmanship, the company
decided to make Handumanan as the launching product of the company. This is to
remind the Filipino people of the existence of a wonderful work of art of the. By creating
demand for these products through incorporating modern innovative designs and
developing various by-products, the authentic Visayan hand woven cloths will be
highlighted that will uphold the Philippine cultural heritage. Not only this, by engaging
on this business, we could give opportunity and empower the talented craftswomen of
Antique and Iloilo. This could be a source of livelihood and outlet for creativity for the
younger generation of skilled weavers.
As we launch our campaign, using this hand woven cloth as the companys main symbol,
we shall be releasing our collection of couture clothing and other apparel that will fit the
requirements of modern Filipinos.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

The Handumanan collection will initially comprise of the following product mix:
Product Type
Barong
Gowns
Accessories

Volume
200
200
100
500

Product Mix
40%
40%
20%
100%

B. Price
Handumanan Collection provides the essence of ownership through its couture
style and the uniqueness of the handcrafted fabric. The idea that the product has
limited stocks and that only Handmanan Advocacy, Inc. is engaged in the
distribution of the Visayan cloth and its by-products is expected to stir interest and
create demand. Moreso, the value of patronizing the product creates a sense of
pride of personally helping and upholding the richness of the countrys culture
and arts. Compared to the price of competitors of garments made from machinemade textiles, the Handumanan collection would command higher prices. But in
terms of authenticity, craftsmanship and creativeness, Handumanan collection
would stand out on its own in the clothing industry being part of the Philippine
Heritage.
The Handumanan collection will be valued as follows:
Product Type
Barong
Gowns
Accessories

Estimated Cost (per unit)


P 1,500
2,000
500

Projected Price Range


P2,500 to P3,500
P3,000 to P8,000
P1,000 to P2,000

C. Place
For its initial launching, the Handumanan products will be showcased in show
rooms of high-end shopping malls (such as Rustans Boutiques and its branches)
including the Gaisano, SM and Ayala Malls in the major cities of the country. The
company will be using the distribution network of these shopping mall owners to
make the product available in the three major island groups of the country, Luzon,
Visayas and Mindanao. Aside from the mall, the products shall also be marketed
using the Handumanan website where interested clients can order personalized
clothing apparel.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

D. Promotion
The goal is to make the product relevant in todays socialite culture. This
particular market is more involved and enthused when it comes to collecting
pieces that are one of a kind, calling it couture fashion. To achieve this, we shall
be creating a campaign that will stir the nationalistic pride inherent in each and
every one of them.
The campaigns direction will focus on the theme Inangbayan touching on the
vital role of women in the country. With the theme alone, we shall be gathering
support from many womens group who is always thrilled to showcase the
different talents Filipinas. The product shall be a symbol of the richness of
indigenous aesthetic. With a social mission endorsing our project, it will be
relatively easy to justify every purchase to the consumers. Every piece will be a
limited edition work of art.
The first step of the campaign is awareness. Our plan is to invite one of the most
prominent advocates of enriching the local industry, Mr. Carlos Celdran, to help
with the promotion. He has openly offered free endorsements for local products.
Mr. Celdran is popularly known for managing and operating Walk This Way, the
company that hosts walking tours of Manila. Combining humor and costumery
into the history of the capital city, these are attended not only by tourists but also
by locals who want to see Filipino culture in a different light. He alone can start
an uprising in social media.
Then a fashion show shall be staged to launch the product, partnering with
Michael Cinco, another well know Filipino couture fashion designer. This will put
the product itself under the radar of prominent art collectors and fashion
enthusiasts, our target market.
Through intensive work on press releases, a page in a broadsheet with a
nationwide reach, a feature in different magazines, creating social media buzz,
and involving different NGOs for women, we expect to achieve the needed media
mileage for our products.

IV Distribution Strategy
A. Distribution Objective

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

The main objective of this distribution plan is to make flow of Handumanan


products from the place it was made to its target market throughout the country. It
is important that the product is readily available to the public to consume. It is
also the goal of the company to create a well-planned distribution strategy that
will minimize expenses and other variables that can be hindrance to the success of
the company. This is also to penetrate indifferent geographical areas without
having problem in warehousing and storage. With this distribution plan, products
can be properly stored, handled, and in good condition when it reach in the
consumers.
B. Distribution Channel Strategy
1. Pattern of Distribution
Selective Distribution is chosen to be the pattern to be used in this distribution
plan. With this, the company can only chose most appropriate or best-performing
outlets and focus effort on them. Handumanan products is targeting high fashion
industry and some specific target market. Using Alternative distribution, it will
centers the selling effort of Handumanan on a couple of outlets instead of
dispersing it over innumerable negligible ones.
The company can build good working relationship with channel members since it
will only focus on selective areas. It will gain optimum market coverage and more
control but at a lesser cost than intensive distribution.

2. Distribution Net and Structure


a. Sales Channels
Handumanan aside for personal selling, in order to reach wider target market, will
also penetrating the comprehensive market via distribution channels such as
exclusive distributors, online stores and direct sellers. By choosing well known
company in each field, Handumanan can sell its products in market places that

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

have a good reputation in industry that can help give good impression in favor for
the company that will help to build brand reputation.
b. Delivery Channels
In order to have fast delivery, proper coordination is required by Handumanan. All
new items and orders will be sent via Delivery Company prior to lunching of its
collection monthly. Delivery is always at the end of the month.
c. Service Channels
Return and exchange policy of the distributors will be followed. There will be
also a support team of the company that will handle complaint and other costumer
service matter. Each product will have company detail in in its packaging in case
of inquiry and other problem.
3. Roles of Each Distribution Channels
Each distribution channels holds very important role to the company. They are the
one who will fill the gap between the company and its target market. They will
serve as agent of Handumanan that will face possible client. They are the front
liner of the company that can help Handumanan to know and gather more
information in order to understand its client. Distribution Channels will be the
secondary marketing agents. Lastly they are the service provider of the company.
They don't simply offer items; they give building support and post-retail benefits,
diminish costs, and upgrade forms, and additionally oversee inventories, all of
which makes esteem for producers and clients alike.
4. Product/ Service Mix per Distribution Channels
Distributor (SM Department Store) Barongs, Filipiana and Gowns
Direct Selling (Natasha) Bags, Wallets and Other Accessories
Online Store (Zalora) All Items since it will also cover those interested abroad
5. Pricing Policy for each Distribution Channel
To have a synchronize pricing, both SM department store, Nathasha and Zalora,
Handumanan will provide pricing rules (Please refer to Pricing). This is to prevent
any conflict to both distribution channels and the company. In the said pricing
policy, all aspect of expenses will be considered and reasonable mark-up
percentage will apply.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

6. Operational Policies and Procedures


Handumanan will follow distribution agreement given by Distribution Channels
yet the company will also propose agreement between the company and
distributors that will help to create healthy business environment.
Please Refer to Appendix 1 for the agreement and policy model between
Company and Distribution Channels.
7. Key Performance Indicators
Part of Handumanan Key Performance Indicator (KPI) is creating a company
goal. After deciding the company goal, it's possible to provide a set of common
performance indicators in order to check whether the company goal is being
follow.
Please refer to Appendix 2 for example of the Goal and common KPI.
8. Channel Conflict Management
In order to minimize conflicts, Handumanan will only choose exclusive contact
on each distribution channel. SM Department Store as Main Distributor for
barong, filipiana and gown, Natasha for bags, wallets and other accessories and
for online store, Zalora will cover all the items.
Each of the Distribution channel will be having schedule of delivery of new
release collection and order. There will be proper guidelines in ordering new set
of products that each distribution channel needed.

V Contingency Plan
If the competition increases advertising or our sales are less than expected, we are
prepared to add as much Php 150,000 to our advertising budget. Digital marketing
will also use extensively.
Handumanan will also join various cultural event to promote the product.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

There will be production controller in order to make sure that the production is
following the time frame and a quality controller to ensure the quality of work.

HANDUMANAN COLLECTION
By: Handumanan Advocacy Inc.

Colegio San Agustin Bian


College Department
Southwoods City, City of Bian, Laguna

A Final Paper in Cost and Distribution Management

Submitted by:

Frederick S. Valdeviesso
Ruel Rosillon Jr.
Girlie Orlanda
Katelyn Duran