Republic of the Philippines

BULACAN AGRICULTURAL STATE COLLEGE

Institute of Management
Pinaod, San Ildefonso, Bulacan

A Case Study on National Bookstore

Franchising
MKM 115

Submitted by:
Dela Cruz, Juvy F.
Dela Cruz, Melody P.
Dela Cruz, Rigenalyn I.
Dichoso, Shawn Edward L.
Flores, KC G,
Francisco, Gladys C.

Submitted to:
Mrs. Donaida B. Ramos
MKM 115 Instructor
A. COMPANY BACKGROUND

National Bookstore Inc (NBS) operates retail stores that offer books, office and school
supplies and office furniture in the Philippines with branches nationwide. The company's
subsidiaries are the the following: Anvil Publishing, Hong Kong based Metrobooks, and
Powerbooks. Established in 1930s, National Bookstore has its head office located in Manila.

National Book Store was founded in 1942 by Socorro “Nanay Coring” Ramos who won
the 2004 Ernst and Young Entrepreneur of the Year award. Serving as a partner in education and
profession to generations of Filipinos, National Book Store continues to be the undisputed
category leader with its various store brands such as Powerbooks, Bestsellers and National Book
Store Express. The stores provide the best and widest selection of educational, professional and
social communication products while at the same time offering the best value and convenience
for loyal “Laking National” customers. Today, Nanay Coring continues to lead National Book
Store as the company constantly seeks to reinvent the industry through the introduction of new
innovations, products and practices. Every member of the National Book Store family takes
special pride in the institution’s role as a staunch supporter and promoter of education and
reading. These lofty goals are best highlighted by the numerous projects of the National Book
Store Foundation which include the donation of books, libraries and school supplies to needy
schools and students nationwide.

B. LEADER /CEO/PRESIDENT
Socorro Ramos, Founder
Presentacion S. Ramos, Vice President

C. GROWTH OF THE COMPANY

Today, National Book Store is considered as the largest chain of bookstores in the
country. They have ventured into several businesses already such as a convenience-type store
named NBS Book Express, publishing companies named Cacho-Harmanos printing press, Anvil
Books and Capitol-Atlas Publishing, another bookstore named Powerbooks, music store named
Tower Records, and a department store named Crossings department store. Socorro's children
and relatives ran all these. National Bookstore plans to double its store network to 500 while
strengthening its online presence, hoping to build a synergy between virtual and brick-and-
mortar sales channels. A revamped website now allows shoppers to browse and purchase from
the store's online catalog and pick up the merchandise in physical stores.

D. LOCATIONS (NO. OF FRANCHISEE)

National Book Store has grown to become one of the country’s best-loved brands with
over 230 branches and over 2,500 employees. It continues to open more and more branches
every year, have launched exciting concept stores, as well as its own school.

National Book Stores can be found in:

National Book Store - Robinson Jaro

National Book Store - Ayala Cebu
National Book Store - Robinsons Las Pinas
National Book Store - Tanuan
National Book Store - Antipolo Victory Park
National Book Store - Binondo
National Book Store - Ayala Tagaytay
National Book Store - SM Batangas
National Book Store - Robinsons Naga
National Book Store - Mango Plaza Cebu
National Book Store - SM Sta. Rosa
National Book Store - Hypermarket Lapu-Lapu
National Book Store - Robinson Bacolod
National Book Store - SM North EDSA
National Book Store - Robinsons Cainta
National Book Store - Uptown Place Mall
National Book Store - Robinsons Cebu
National Book Store - Robinsons Antipolo
National Book Store - Katipunan
National Book Store - SM San Pablo
National Book Store - Robinsons Ormoc
National Book Store - SM Calamba
National Book Store - SM Lipa
National Book Store - Abanao
National Book Store - Abreeza
National Book Store - Ali Mall
National Book Store - Antipolo
National Book Store - Ayala Circuit Makati
National Book Store - Ayala Cloverleaf

E. BRAND REPUTATION
National Bookstore gives the option to its consumers to choose the products and brands
that suit their tastes and that fit in their wallet. National Bookstore products have become a
necessity for students and office workers. So much so, that Filipinos equate and refer to
bookstores as National, like how photocopying is equated to Xerox and marker to Pentel.
Filipinos rely so much on National Bookstore providing them quality products that Filipinos no
longer look at other bookstores in the market and instead, focus only on National Bookstore.
Since consumers know that what National Bookstore offers to them are their needs, the
consumers are willing to pay the prices set since using the products will maximize their utility.

F. HOW TO APPLY OR WHAT ARE THE REQUIREMENTS

Possible Cost of Investment and Franchise Fees
Initial Fee: 450,000
Contract Term: 10 years
Royalty Fee: 1% Gross Sales
Capital Requirement: 6.4 million
Franchise packages would require an investor to have a minimum amount of P6.4 million. In this
capital, they would already get the store’s equipment and construction and a franchise agreement
good for a good ten (10) years.

Step by Step Guide on Starting Your National Bookstore Franchise Business

1. Send bio data together with a letter of intent
2. NBEX reviews the franchisees application (NBEX is the convenience store format of the
National Book Store.)
3. Invitation to discuss further the franchise details
4. NBEX presents the franchise disclosure information
5. Proposed location will be visited and checked thoroughly
6. Receiving and signing of franchise agreement
7. Settle the franchise fee upon signing of franchise agreement
8. Start of outlet set-up and staff training
9. Pre-opening and marketing assistance by NBEX

National Bookstore Franchise Inclusions

 Use of operation manual

 Research and Development
 Site approval
 Opening Assistance
 Training for franchisee and staff
 Procurement program
 Use of trademark

G. CORE VALUES AND SOCIAL RESPONSIBILITY

Having Malasakit, being Innovative, having Dignity in what they do, being Service-
Oriented and striving for Excellence and working as Team. Having this mindset is key to their
success. Part of the company’s core values also is to help underprivileged children. Thus, in 2004
NBS has established the National Book Store Foundation, Inc. (NBSFI) as it’s social arm
responsible for the implementation of the company’s efforts to uplift the lives of underprivileged
children through education empowerment. NBSFI has different projects like project Aral that
aims to solicit and gather school materials which they distribute to students from the most
impoverished areas of the country. The other one is the Project Aklat Book Drive which is an
annual Christmas book drive that is being implemented in all national Book store branches. This
project aims to encourage NBS patrons to purchase and donate cheap but good quality reading
materials for distribution nationwide. They also have projects that helps construct libraries like
the Dry library: Mitch albom- NBSFI project and read out loud challenge.

Conclusion:
National bookstore is a successful franchise because stocks are non-perishable. The items
sold both have seasonal and everyday demand potential, which ensures a continuous flow of
customers. The contract term also lasts for 10 years and is renewable upon mutual agreement.
National Bookstore also provides marketing and operating assistance.

References:
https://www.franchisemarket.ph/franchise-listing/national-bookstore-express

https://mystorymysm.com/national-book-store/
https://reputation911.com/brand-reputation/
https://www.devex.com/organizations/national-bookstore-foundation-inc-49206
https://www.sunstar.com.ph/article/31313/Sports/Soriano-Socorro-Ramos-the-pillar-behind-
National-Book-Store
https://www.scribd.com/document/303060201/National-Bookstore-History
https://www.pinoymoneytalk.com/franchise-national-bookstore-express/
https://www.franchisemarket.ph/franchise-listing/national-bookstore-express/
https://essaylead.com/national-bookstore-a-profile-of-its-marketing-mix/
https://www.businessnews.com.ph/the-success-story-of-national-book-stores-socorro-ramos-
20151221/