The Mariwasa Story

Founded in March 1966, MARIWASA is one of the pioneers in the Philippine ceramic tile industry.
Established by the brothers Emerson and Edison Co Seteng, the company was founded on a vision of
producing ceramic products: vitrified floor tiles and glazed wall tiles that would meet world standards
for beauty and durability. This vision was to be achieved by harnessing the skills, discipline and creativity
of the Filipino artisan.

With the technical assistance of leading Italian firms, MARIWASA set up its manufacturing plant along
Ortigas Avenue. A series of expansions through the years quickly brought the company to market
leadership. Their top of the line advanced tile manufacturing facility can produce minimum of 2,000
square meter output ceramic tiles.

MARIWASA holds the distinction of being the first to manufacture both wall and floor tiles in a vast
range of colors and sizes. With each MARIWASA tile comes a firm commitment to product excellence
that is fully supported by extensive research and development, innovative design and some of the most
modern production facilities and processes in the Philippines. In its long years of business operations
product distribution is done only through the company’s Exclusive Distributors namely: Go Soc & Sons &
Sy Gui Huat, Inc. in EDSA, Quezon City, Prima Mercantile, Inc. in Quezon Avenue, Quezon City and REY
Marketing, Inc. in Pasig City. Three exclusive distributors with direct major stockholders of Mariwasa
Manufacturing, Inc. Though dealers and retailers are positioned strategically throughout the Philippines
served with the interest of latter distributors.

In particular in those years in 1990 the new set of Marketing & Sales team is concerned that Exclusive
Distribution business practices as well as certain aspects of present channels of distribution could be
problematic. To increase sales revenue following the Ansoff Matrix concept model is essential for
marketing growth strategies.

Edison Co Seteng decision to increase sales revenue and open up new distributors is not an easy one.
Edison is not only has a major interest to the corporate perspective, he also has a deep affiliation of
Mariwasa Manufacturing, Inc. three exclusive distributors namely Go Soc & Sons & Sy Gui Huat, Inc.
whom his wife and relatives are the owners, Prima Mercantile, Inc. whom his sister-in-law & relatives
are the owners, and REY Marketing, Inc. whom the owners are his sons & daughter: Ronald, Edwin and
Yvette. Eventually major exclusive distributors businesses will be affected, thus Edison is worried that
some of Marketing & Sales team actions might have foreseen repercussions for the interest of affiliated
Mariwasa Manufacturing, Inc. company’s exclusive distributors.

However, Edison believes that Marketing & Sales team may be too eager to accommodate opening new
channel of distributors and apparently requested new ways of doing business. Confining or limiting to
only three exclusive distributors would not answer to augment the increasing production supply of
ceramic tiles of Mariwasa Manufacturing, Inc. Thus, the competition they are facing importers and
manufacturers emerging to the Philippine market. Other majority tile producers in the Philippines
include Guoco Ceramics, Inc. (Lepanto Brand Tiles) in Sto. Tomas Batangas, Fil-Hispano Ceramics, Inc., in
Valenzuela Bulacan, Pioneer Ceramics, Inc. (Pioneer/Tri-Little Dragon Brand Tiles) in Mandaluyong City
and Eurotiles Industrial Corp. (Eurotiles Brand Tiles) in Silang Cavite . In 1990’s year on year sales
revenue of Mariwasa Manufacturing, Inc. was receding and affected eventually due to market share
competition.

Questions:

What discreet actions that Mariwasa Manufacturing, Inc. shall adopt, the strategies to pursue, and to
make?

What policies or courses of action would you recommend to Mariwasa Manufacturing, Inc. that
produces ceramic tiles now facing massive production line output due to new line technology
production facility?

Who are the various stakeholders that Mariwasa Manufacturing, Inc. needs to consider as it adopts an
effective Marketing & Sales Channels of Distribution strategy?

What are the pros and cons of Mariwasa Manufacturing, Inc. adoption of an aggressive strategy in
combating Channels of Distribution? What recommendations would you give the company concerning
its Marketing & Sales Channels of Distribution policy?