Part 2 – Analyzing the Firm’s Marketplace Strategy

IDENTIFY YOUR COMPETITORS

 GMA Network, Inc.

 Inquirer Holdings Company

 Manila Bulletin Publishing Corporation

 TV5 Network Incorporated

 Sonshine Media Network International

PROFILE TEMPLATE

Formerly :

Bolinao Electronics Corporation (1946–1953, 1957–1967) Alto Sales

Corporation (1953–1957) Chronicle Broadcasting Network, Inc. (1956–

1957) ABS-CBN Broadcasting Corporation (1967–1972, 1986–2010)

Industry: Mass Media

Founded: June 13, 1946, (75 years ago)

Founders: James Lindenberg, Antonio Quirino, Eugenio López Sr. & Fernando López

Key Strategies and Goals:

As an organization, ABS-CBN affirms its mission of being in the service of the Filipino.

The Company is driven to pioneer and innovate because it knows that it helps more
Filipinos discover themselves and connect to one another. The Company opens

pathways to opportunities and brings people a step closer to their dreams. ABS-CBN is

firmly committed to pursuing excellence. The key elements to its business strategy are:

 Building on our core strength in content creation.

 Anytime, anywhere, in any device or medium

 Maintain a strong fiscal position and bring value to our stakeholders.

Divisions:

ABS-CBN Publishing, ABS-CBN Digital Media, ABS-CBN Entertainment, ABS-CBN

Events, ABS-CBN Foundation, ABS-CBN International ,ABS-CBN International

Production and Co-Production, ABS-CBN Radio, ABS-CBN News, ABS-CBN

Narrowcast, Dreamscape Entertainment, MOR Entertainment ,ABS-CBN Film

Productions, Inc. , ABS-CBN Center for Communication Arts, Inc. ,Star Music

SHORT HISTORY OF COMPETITORS

GMA Network - The origin of GMA Network can be traced back to Loreto F. de

Hemedes Inc. through DZBB, which started airing its radio broadcast on March 1, 1950,

and officially launched as a local radio station in Manila on June 14, 1950, and owned

by Robert La Rue "Uncle Bob" Stewart, an American war correspondent. Venturing into

television in the 1960s, Stewart started RBS TV Channel 7 (under the call letters DZBB-

TV) on October 29, 1961, becoming the Philippines' fifth terrestrial television station.
Originally, RBS's programming was composed of foreign programs from the United

States and it later produced local programs to cater to Filipino audiences. It produced

shows like Uncle Bob's Lucky Seven Club, a child-oriented show aired every

Saturdays; Dance Time with Chito; and various news programs like News at Seven. In

1963, RBS launched its first provincial television station in Cebu, DYSS Channel 7 (now

GMA Cebu). In the same year, from Loreto F. de Hemedes Inc, the firm was formally

renamed to Republic Broadcasting System, Inc. (RBS).

Inquirer Holdings Company - INQUIRER.net is the official news website of the

INQUIRER Group of Companies (IGC). Under the IGC umbrella are Philippine Daily

Inquirer, Hinge Inquirer Publications, Cebu Daily News, Inquirer LIBRE, Bandera,

INQUIRER.net, Inquirer Mobile, Print Town, DZIQ 990AM Radyo Inquirer, Delivery

Access Group, and Inquirer Digital Outdoor Media.

The website features breaking news 24/7 and the latest on issues and current event.

The website also highlights compelling commentaries on Politics, Entertainment, Sports,

Lifestyle, Business, and Technology, as well as stories around the world relevant to all

Filipinos overseas.

INQUIRER.net offers multimedia features, easy channel navigation, strong social media

presence and numerous engagement platforms that allow the readers to experience

content anytime, anywhere, always

Manila Bulletin Publishing Corporation - Manila Bulletin Publishing Corporation (MB)

was founded as the Daily Bulletin on February 2, 1900 for the purpose of engaging in

the publishing business. The Company was incorporated on June 12, 1912 as Bulletin
Publishing Company and re-incorporated on September 25, 1959 as Bulletin Publishing

Corporation. On June 22, 1989, the corporate name was amended to the present one.

When the MB started publication, the contents of the newspaper mainly centered on the

commercial and economic conditions in Panay and Negros. From then on, the

newspaper grew to become a national newspaper. The broad sheet, Manila Bulletin is

published seven days a week. MB also publishes the "Philippine Panorama", a Sunday

weekly magazine; "Style Weekend", a Friday weekly magazine; and "Travel Magazine",

every second and fourth Thursday of the month. Published daily are the tabloid

newspapers, "Tempo" in English and "Balita" in Filipino. Once every quarter, MB

publishes the "Digital Generation Magazine".

TV5 Network Incorporated - New stockholders led by businessman Edward Tan and

Roces's son Edgardo then began the arduous task of bringing the network back on the

air. The Securities and Exchange Commission granted their application for an increase

in capitalization and amendments to ABC's articles of incorporation and by-laws. They

were subsequently given a permit to operate by the National Telecommunications

Commission (NTC). ABC inaugurated its studio complex and transmitter tower in San

Bartolome, Novaliches, Quezon City in 1990 and began test broadcasts by the end of

1991, officially returning on air as the Associated Broadcasting Company on February

21, 1992, with ABC Development Corporation as the new corporate name. Its radio

counterpart, Kool 106 was launched at the same time. Later, it acquired a new franchise

to operate on December 9, 1994, under Republic Act 7831 signed by

then President Fidel V. Ramos. In 1999, ABC was awarded the channel 47 frequency

in Metro Manila, the last remaining UHF frequency in the market, christening it DWDZ-

TV. However, has been inactive since 2003.

Sonshine Media Network International - In July 2000, The Kingdom of Jesus Christ

officially launched its 24-hour cable network, "The Q Channel" (then also known as

"ACQ–TV, Q Channel"; not to be confused with GMA's sister free TV

channel QTV/Q (Quality TeleVision) launched in 2005 and now known as A2Z (11)

since 2020 and GTV (27) since 2021), bringing the Gospel of the Kingdom from Davao

City to key cities around the Philippines, which was carried by Sky Cable. On October 1,

2006, ACQ-KBN Sonshine TV is now on Nationwide with more than 500 cable TV

operators across the Philippines.

On January 4, 2009, ACQ-KBN Sonshine TV-37 in Santiago, Isabela as the third TV

station after the TV stations are TV-39 Manila and TV-43 Davao, ACQ-KBN Sonshine

TV-37 is launched after the first Global Thanksgiving and Worship presentation at the

Buenavista Barangay Hall in Santiago, Isabela and followed by on May 10, 2009, The

fourth TV Station as ACQ-KBN Sonshine TV-39 Butuan is launched after the first global

thanksgiving and Worship presentation at the Luciana Convention Center in Butuan

City.

In August 2010, ACQ-KBN Sonshine TV (merger of ACQ-KBN and Sonshine Media

Network International) was renamed again as simply "SMNI", the network now focuses

in Religious, News and Public Affairs programs carried from the now-defunct ACQ-KBN,

it also the network was launched with the new slogan "Alternative media, Alternative
power, it Sustains Life" (first slogan) and "Informs, Delivers, Transforms" (second

slogan) with a new station ID.

In January 2011, SMNI was launched with a new slogan "Where Everything is Possible"

with a new station ID.

On May 24, 2016, SMNI launched its own News and Public affairs channel as SMNI

News Channel and it is exclusively aired over Digital Terrestrial Television on UHF

Channel 40 in Metro Manila and its internet Live streaming.

On August 31, 2019, Philippine President Rodrigo Duterte signed Republic Act No.

11422 which renewed Swara Sug Media Corporation license for another 25 years. The

law grants SSMC a franchise to construct, install, operate, and maintain, for commercial

purposes, radio broadcasting stations and television stations, including digital television

system, with the corresponding facilities such as relay stations, throughout the

Philippines.

On January 26, 2022, the National Telecommunications Commission assigned the

network's television frequency on channel 43 which was formerly used by AMCARA

Broadcasting Network for ABS-CBN's DTT broadcast.

CRITICAL EVENTS

On May 5, media and entertainment company ABS-CBN was shut down, and KBP

President Jun Nicdao has since made a statement regarding how the shutdown of ABS-
CBN affects the Philippines amidst the battle against COVID-19 and in the broader

industry.

The shutdown of ABS-CBN eliminates an established source of reliable information at a

time when an informed populace is the first line of defense against the spread of

COVID-19.

Faced with a crisis of this magnitude, the Filipino people deserve accurate and timely

information about efforts of the scientific community to preserve health and programs of

the government to prevent hunger.

Studies conducted by Nielsen and Kantar, two of the most reputable media research

companies in the country, consistently show that free-to-air broadcasting is the most

effective and most efficient medium in disseminating information to the broadest

audience base.

Before being forced to go off-air, millions of viewers and listeners tuned into the ABS-

CBN network of television and radio stations to find out about measures to avoid

infection; data on the virulence of the virus; quarantine rules and restrictions; and when,

where, and how to get cash and food assistance from government units.

The loss of employment due to the shutdown of ABS-CBN adds a considerable burden

to an already-strained social welfare system. Towards this end, more than 200 nation-

states and territories with COVID-19 cases have all instituted measures curtailing the

movement of people resulting in the partial or total suspension of business activities and

the displacement of millions of workers.

This surge of unemployment is particularly pernicious for developing countries such as

ours with flimsy social safety nets propped up only by a scant stack of government

funds that is dwindling away, at an alarming rate, day by day.

 The shutdown of its broadcasting parent hampers relief efforts of the ABS-CBN

Lingkod Kapamilya Foundation at a time when government needs the private sector to

fill in gaps in social amelioration.

Amidst this crisis, the largest companies in the country have stepped up to contribute in

two major areas — the construction of quarantine and testing facilities, and the

distribution of relief goods. ABS-CBN was among these good corporate samaritans,

using its media network to solicit donations, in cash and in kind, that were distributed as

relief packages through its foundation.

This shutdown curtails the ability of ABS-CBN to accumulate and distribute aid at a time

when government is most in need of financial and logistical assistance from the private

sector to supplement its limited capabilities to provide amelioration to the poorest

Filipinos.

Free Market Competition In The Broadcasting Industry

The Philippine free-TV market is dominated by three major competitors — ABS-CBN,

GMA and TV5. ABS CBN and GMA account for 80 percent of viewership while

competing for the number one and number two spots. The continued shutdown of ABS-

CBN deprives audiences and advertisers of the benefits arising from competition;

specifically, the impetus to continuously raise the bar of programming excellence and

free market mechanisms reining in television advertising rates.

What is clear, however, are the deleterious effects of eliminating a major player in the

broadcasting industry:

1. Lack of competition limits the quantity, quality, and diversity of programming choices

for Filipino audiences.

Through the years, fierce yet healthy competition has fueled the drive for the top TV

stations to create news, public affairs, educational, sports, and entertainment programs

that have reaped accolades from local, foreign, and international award-giving bodies.

2. A virtual monopoly of the free-TV market removes the ability of advertisers to craft an

optimized media mix.

Effective advertising is contingent on maximizing reach while minimizing costs, and the

ABS-CBN shutdown makes it that much harder for advertisers to achieve both goals.

Media buyers have routinely maximized target audience rating points (TARPs) and

minimized costs per thousand (CPMs) by shopping for airtime from at least two

networks; an option which is now no longer available.

3. In the event that only some ABS-CBN viewers shift to GMA, there will be an overall

reduction in TV-viewing audiences.

Communication scholars all over the world have proposed theories that information-

seeking behaviors tend to remain stable over time. In practical terms, this means that

individuals tend to establish routines — referred to as “habits” in the academic literature

— in selecting when, where, and how to acquire information.

4. Consumption of ABS CBN’s content in their digital platforms will increase but

probably will not supplant its free-to-air broadcasting.

ABS-CBN has a massive digital footprint and a vast inventory of content distributed for

free and on demand over leased and owned Internet platforms.

Absent a congressional broadcast franchise license, ABS-CBN has reached out and

remained relevant to global and local audiences via its digital platforms. In similar

fashion, loyal consumers are also using these Internet platforms to preserve

connections with their favorite ABS-CBN programs and personalities.

5. A continued shutdown of ABS-CBN will slow down the transition to digital terrestrial

television and delay the availability of a nationwide emergency broadcast system.

Before its shutdown, ABS-CBN was a leading supporter of the transition to Digital

Terrestrial Television (DTTV), a government mandated undertaking that entails huge

investments coupled with considerable risks. By being an early-adopter of DTTV, ABS-

CBN is a major market force that compels other networks to follow suit, thereby

accelerating the digital transition timetable. Without an early-adopter willing to take the

risks inherent in shifting to new technologies, the transition to DTTV in the Philippine

broadcasting industry would be much slower.

While many Filipinos are discovering the expanded entertainment offerings of digital

television, few are aware of its most important feature — the ability to carry a nationwide

emergency broadcast system.

MAJOR CUSTOMERS

Based on Geographic

Based on Demographic
PRODUCTS AND SERVICES

Audience favorites: The 11 Top-Rating ABS-CBN Teleserye of All Time (2020)

 ESPERANZA

Starring: Judy Ann Santos, Wowie de Guzman

Airing: February 17, 1997 to July 30, 1999

All-time high rating: 67.0% (1997)

 PANGAKO SA 'YO

Starring: Kristine Hermosa, Jericho Rosales, Eula Valdes, Jean Garcia

Airing: November 13, 2000 to September 20, 2002

All-time high rating: 64.9% (2002)

 MULA SA PUSO

Starring: Claudine Barretto, Rico Yan, Diether Ocampo

Airing: March 10, 1997 to April 9, 1999

All-time high rating: 53.7% (1997)

 BASTA'T KASAMA KITA

Starring: Judy Ann Santos, Robin Padilla

Airing: May 26, 2003 to September 10, 2004

All-time high rating: 52.5% (2004)

 MARINA
 Starring: Claudine Barretto

Airing: February 23 to November 11, 2004

All-time high rating: 50.8% (2004)

 SANA'Y WALA NANG WAKAS

Starring: Kristine Hermosa, Jericho Rosales, Angelika dela Cruz, Diether

Ocampo

Airing date: May 19, 2003 to July 9, 2004

All-time high rating: 49.3% (2003)

 BITUIN

Starring: Nora Aunor, Cherie Gil, Carol Banawa, Desiree del Valle

Airing: September 23, 2002 to May 23, 2003

All-time high rating: 48.7% (2003)

 SAAN KA MAN NAROROON

Starring: Claudine Barretto, Rico Yan, Diether Ocampo, Leandro Munoz

Airing: April 12, 1999 to March 23, 2001

All-time high rating: 46.8% (1999)

 MARA CLARA

Starring: Judy Ann Santos, Gladys Reyes

Airing: August 17, 1992 to February 14, 1997

All-time high rating: 45.1% (1994)

 KRYSTALA
 Starring: Judy Ann Santos, Ryan Agoncillo

Airing: October 11, 2004 to April 22, 2005

All-time high rating: 43.1% (2004)

 SA PUSO KO, IINGATAN KA

Starring: Judy Ann Santos, Piolo Pascual

Airing: June 18, 2001 to February 14, 2003

All-time high rating: 42.7% (2003)

Top Rating of ABS-CBN Films

 Hello, Love, Goodbye (7.4)

 Dekada ’70 (7.5)

 Four Sisters and A Wedding (7.2)

 Fan Girl (6.7)

 The Hows of Us (7.7)

 One More Chance (7.5)

Services:

 Broadcasting

 Motion pictures

 TV production

 Cable televisionInternet

 Streaming service
  Broadcast syndication

 Record label

 Telecommunications

 Satellite television

 Film distribution

DESCRIPTION OF MANAGEMENT TEAM

LOPEZ, MARTIN L.
Chairman of the Board

ALMEDA-LOPEZ, AUGUSTO
Vice Chairman of the Board

KATIGBAK, CARLO L.
President and Chief Executive Officer

ALCANESES, MARIA LUISA S.

Data Privacy Officer

BARREIRO, ROBERTO V.
Head, Corporate Partnerships

BARTOLOME, MARIA ROSARIO S.

Head, Integrated Marketing and Customer Experience
BAYANI, NILDA L.
Head, Human Resources and Organizational Development

CERRADO, ALDRIN M.
Head, Global

CHOA, KANE ERROL C.

Head, Integrated Corporate Communications

DEL MUNDO, CARMELA GRACE C.

Head, Internal Audit

GAERLAN-CRUZ, MARIFEL
Assistant Corporate Secretary

LABAYEN, ROBERTO G.
Head, Integrated Creative Communication Management

LAMASAN, OLIVIA M.
Managing Director, ABS-CBN Film Productions, Inc. (Star Cinema)

LIQUIGAN, DENNIS MARCO A.

Head, ABS-CBN Music

LOPEZ, EUGENIO IV
Head, Digital

MIRANDA, RAYMUND MARTIN T.

Chief Strategy Officer, Chief Risk Management Officer, Compliance Officer

QUIASON, ENRIQUE I.
Corporate Secretary

REYES, MA. REGINA E.

Head, Integrated News and Current Affairs

TAN, RICARDO B. JR.

Group Chief Financial Officer

TRINIDAD, ROSANNA H.
Head, Integrated Sales

VENTOSA, ANTONIO S.
President and Chief Executive Officer, Sky Cable Corporation

VIDANES, MA. SOCORRO V.

Chief Operating Officer, Broadcast
OPERATING INFORMATION

ABS-CBN Corporation (ABS-CBN) is Philippines-based media and entertainment

company. The Company operates in three segments: TV and Studio, Pay TV Networks

and New Businesses. The TV and studio segment comprises broadcast, covering

content creation and distribution through free television and radio with Channel 2 and

DZMM as its platforms; global operations, which includes ABS-CBN International; film

and music production; cable channels, and publishing. The TV and studio segment

consists of local and global content creation and distribution through television and radio

broadcasting. The Pay TV Networks segment includes cable television services of Sky

Cable Corporation (Sky Cable) and its subsidiaries in Metro Manila and in certain

provincial areas in the Philippines. The New Businesses segment pertains to wireless

telecommunications business, digital terrestrial television (DTT), theme parks and home

shopping. The Company's investment in a theme park includes KidZania Manila.

Production process:

In 2011, ABS-CBN announced the development of a state-of-the-art studio complex

in San Jose del Monte, Bulacan, which is on par with Hollywood standards for a

projected cost of 6 to 7.5 billion pesos. A 120 hectare lot in San Jose del Monte,

Bulacan was acquired earlier that year for 75 million pesos. In 2014, it was announced

that the studio complex will consist of 10 sound stages and backlots each. The

company plan to build at least two sound stages a year for a cost of 600 million pesos

or 300 million pesos for each sound stage.

The proper of the project started in the first quarter of 2014 with its construction

commenced in May 2017. The production and support teams for both TV and feature

films began a three-year training program for the stages both in Hollywood and the

Philippines to ensure that production processes mirror the best practices in the world.

On December 12, 2018, after years of planning and training, ABS-CBN inaugurated its

new state-of-the-art studio complex which is revealed to be called Horizon IT Park. The

complex was designed by California-based architecture firm Bastien and Associates,

Filipino firm AIDEA, with a consultants from Hollywood-based Manhattan Beach

Studios. The Phase 1 of the project includes its first two sound stages sized at 1,500

square meters, with the first stage named for its chairman emeritus, Eugenio "Gabby"

Lopez III who is the brainchild of the new studio complex, The EL3 Stage. The complex

will also include backlots, facilities for its production and post-production and offices.

The new studios will be used for the upcoming teleserye The Faithful Wife, and its most

anticipated movie, Darna. A new soundstage was finally used for its reality singing

competition show, Idol Philippines, using the name as "Idol City".

Recruitment process:

The recruitment process varies widely depending on your role. You may be asked to

attend a series of phone, one-on-one, or panel interviews with recruitment managers

and department heads. Some roles require timed aptitude, IQ or personality tests, while

others do not. Previous employees noted that the entire process may take at least two

weeks to a month.
Our employees are the cornerstone on which the quality of our content is built. As such,

our work relies on constant teaching and learning. We train our people to become better

than ourselves. We define areas for development and take deliberate action to fill our

skill gaps; and we strive to create a workplace that attracts the talent that we need for

our continued success.

LABOR FORCE

ABS-CBN Corporation and Subsidiaries had 6,304 regular employees, 1,717 non-

regular employees and 2,720 talents and project-based employees as of December 31,

2016. ABS-CBN’s expected headcount growth is 8% within the next twelve months. The

Philippine Labor Code and other statutory enactments provide the minimum benefits

that employers must grant to their employees, which include certain social security

benefits, such as benefits mandated by the Social Security Act of 1997 (R.A. No. 8282),

the National Health Insurance Act of 1995 (R.A. No. 7875), as amended, and the Home

Development Fund Law of 2009 (R.A. No. 9679). Under the Social Security Act of 1997,

social security coverage is compulsory for all employees under 60 years of age. An

employer is obligated to deduct and withhold from each employee's monthly salary,

wage, compensation or earnings, the employee's contribution, and the employer, for its

part, makes a counterpart contribution for the employee, and remits both amounts to the

Social Security System (SSS). This enables the employees to claim their pension, death

benefits, permanent disability benefits, funeral benefits, sickness benefits and maternity-

leave benefits. The Social Security Act of 1997 imposes penal sanctions if an employer
fails to remit the contributions to the SSS. For corporate employers, the penalty is

imposed on its president and members of the board of directors.

Film Production and Distribution: The production and distribution of feature films is a

highly competitive business in the Philippines. Star Cinema competes for the services of

recognized creative talents, both artists and production staff, and for film rights and

scripts, which are essential to the success of a feature film. The Company likewise

competes with other feature film producers, including other Filipino studios, smaller

independent producers and major foreign studios such as Disney, Dreamworks, and

Warner Brothers. Success in the Philippine movie business depends on the quality of

the film, its distribution and marketing, and the public’s response to the movie. The

number of films released by the Company's competitors in any given period may create

an oversupply of product in the market, which may reduce the Company's share of

gross box office admissions. Star Cinema also competes with other forms of

entertainment and leisure time activities such as DVDs. Piracy also takes a

considerable chunk of the Company’s earnings potential.

STRATEGIES

As an organization, ABS-CBN affirms its mission of being in the service of the Filipino.

The Company is driven to pioneer and innovate because it knows that it helps more

Filipinos discover themselves and connect to one another. The Company opens

pathways to opportunities and brings people a step closer to their dreams. ABS-CBN is

firmly committed to pursuing excellence. The key elements to its business strategy are:
  Building on our core strength in content creation. While the technology, the

production process, and the medium used to access content evolve, ABS-CBN’s

core ability to create quality content that touches, inspires and empowers its

viewers must remain constant. The Company will continue building on its core

strength in content creation.

 Anytime, anywhere, in any device or medium. As ABS-CBN’s audience demand

greater control over how and when they will consume content, the Company will

ensure its continued relevance by distributing its content in the widest array of

platforms that technology will allow. The Company’s audience will be able to

reach ABS-CBN anytime at any place in any medium.

 Maintain a strong fiscal position and bring value to our stakeholders. The

Company will derive the most synergies possible between its content and

distribution businesses. The Company will ensure that it is able to optimize its

strength of content creation by being present in all platforms possible. In addition,

the Company will consciously operate more efficiently and cost-effectively, as it

delivers greater value to its customers, clients, partners, and shareholders.

MARKETING

In 2014, ABS-CBN streamlined the company’s brand positioning into four pillars:  (1) to

be in the service of the Filipino worldwide, (2) to foster personal connections,(3) to

create authentic stories, and (4) be transformational leaders. 

These will be evoked by four chosen ‘personalities’ for the ABS-CBN masterbrand:

imaginative, pioneering, embracing, and dignified – to fulfill its determined brand

promise of “creating the moments that transform, empower, and uplift,” as well as its

specific brand essence of narrating “authentic, transformational journeys.” 

In this light, the current logo no longer bears the serif element in both vertical and

horizontal versions to better reflect the brand’s visual identity that builds “strong visual

recognition and emotional connections with our audiences.” 

At the same time, a secondary graphic consisting of ‘sunrise’-like bleeding rings of the

logo  (in red, green, and blue), “based on the idea of the Filipino journey,” was

introduced to further strengthen its communications across different media. 

In 1986, after the People Power. revolution, ABS-CBN was practically a reborn

TV network having finally been freed from nearly 14 years of government control

under Martial Law. Immediately, they put together a pool of local and

international television shows and began broadcasting.

But by the end of 1986, ABS-CBN was the last placer among the five TV

networks back then. It was a severe blow to the company’s pride and they vowed

to turn the tables from then on. In fact, they wanted nothing less than to be the

number one network in the country.

To better understand their circumstances back in 1986, it would help to

understand the environment then. For one thing, cable TV was nearly unheard of.

It would be years before the advent of VCDs, much less DVD players. There

were no mobile phones and home computers were a rarity. Everybody went to

the movies if they wanted a treat (and air conditioning). Home video was a.

luxury that was only available to the upper-income earners (via videotape

players). For much of the country, home entertainment options were limited to

TV, radio, and reading materials.

It will also help to know who the key players were in the television industry.

These were:

 GMA-7. This television network was the acknowledged darling of the upper

and middle class. It provided them with quality TV shows especially top-rated

programs from Hollywood. By all intents and purposes, GMA-7 was the market

leader for the middle- and upper-middle classes.

 RPN-9. This television was the runner-up for the middle-class viewership.

They also provided local and international programming that was similar to

that of GMA-7.

 PTV-4. The government network. People joke that nobody watches its public

service programming and that it only gains viewers whenever there is a

basketball game or a boxing match. It is because they have broadcast rights

to the games of the Philippine Basketball Association and regularly bid for the

rights to broadcast popular boxing matches.

 IBC-13. The undisputed market leader. While GMA-7 dominated the upper-

class viewership, IBC-13 dominated the mass market. It was the popular

channel among the so-called “masa” thanks to its predominantly local TV

shows that featured the most popular actors and actresses.

So ABS-CBN entered an industry that was essentially dominated by two

networks: GMA-7 for the upper end and IBC-13 for the broad market. The

problem was that ABS-CBN had no clear identity and no clear message to tell TV

viewers that could answer the question of “Why should I watch you in the first

place?” To get out of this rut, the network needed to formulate a marketing

strategy.

The first step for them was to do a SWOT Analysis. SWOT stands for Strengths,

Weaknesses, Opportunities, and Threats. It is a way of cataloging the

environment that will allow you to spot potential avenues for strategy formulation.

ABS-CBN first drew up a list of their strengths, which included:

 Nationwide reach

 Huge financial resources, courtesy of its parent company

Of course, they would also draw up a list of their weaknesses, which included:

 Lack of clear position or identity in the market

 No loyal advertisers

The basic framework for any marketing strategy is summarized by the mnemonic

of STP: Segment, Target, and Position. First, identify the available market
segments. Next, select or target the most promising market segment among the

available options. Finally, position your product to that best suit the needs of the

targeted market.

Because ABS-CBN wanted nothing less than market leadership, they really had

only two possible courses of action: compete directly with GMA-7 for the higher

income class segments or compete directly with IBC-13 for the broad market.

This was the segmentation phase.

A quick scan of the strengths and weaknesses of these two competitors revealed

that:

 GMA-7 was well managed and cash-rich, which means that any attempt to

compete with them would be a long and arduous battle.

 On the other hand, while IBC-13 was very popular with the viewing public,

things were not so good behind the scenes: artists were unhappy because

they were not being paid enough or even on time, a lot of complaints versus

the management and the production quality, so the shows were pathetic.

Therefore, in terms of which network to target, it became clear that ABS-CBN

would have a better chance if it competed directly with IBC-13. This was the

targeting phase.

Finally, with a clear market segment to target, ABS-CBN addressed the key

question: What does the broad market, the “masa,” want?

The answer came through market research which quickly revealed a key insight:

the broad market watched IBC-13 simply because their favorite stars were all

there. In fact, this market did not even care whether or not the TV shows were

good or not, so long as their favorite stars were there. It was a star-oriented

behavior. This led to the final peg in the marketing cycle, the position. ABS-CBN

realized that they had to position themselves as the network of stars.

Now that the core marketing strategy was in place, it was time to plan the details

and the tactics that would flesh it all out.

By matching their strengths with the opportunities that the competitor scan

revealed, ABS-CBN soon came up with a strategy for competing against IBC-13:

 Use its key strength, namely its huge financial resources, to lure the unhappy

stars of IBC-13 toward its own camp with very attractive compensation

packages.

 Use its financial resources to build better quality programming.

 Relaunch itself as “The Star Network,” the network that you go to in order to

see your favorite stars.

The strategy worked. Through shrewd negotiations and promises that they would

become stars in their own shows, ABS-CBN managed to practically siphon all of

the most important TV stars of IBC-13. Soon, almost literally, there was nobody

left in the once-popular network.

As the revamped channel rebuilt itself, it also took advantage of an opportunity

that it had: the ability to ride on the success of its sister radio station, DZMM,

which was a popular medium for getting news. By turning its popular radio

newscasters into TV news personalities, they transformed TV news—which used

to be a stodgy and droll affair among all the TV channels—into a popular

infotainment medium. Viewers finally got to see what their favorite radio

newscasters actually looked like. These newscasters too became TV stars in

their own right.

In 1986, ABS-CBN finished the year in the last place. By 1987, they became the

number two network in the country and by 1988, they became the number one

TV network. From the last place to number one in just two short years. This was

a truly amazing turnaround and it was made possible through the shrewd use of

the principles of marketing.

PART 2.2

 What is the detailed global position of your business and that of your

competitor market share, strengths by product line and by region

today?

The Philippines’ ABS-CBN News were named among the World’s Top 10 Online Video

Publishers based on the social video analytics of Tubular Labs.

The Philippines’ two top media organizations outperformed media organizations from

around the world in terms of online views and clinched their respective spots for the

May 2020 listing for News & Politics.

ABS-CBN News of the Kapamilya Network, which switched to purely online

broadcast since May 6, 2020, following the cease and desist order from the National

Telecommunications Commission, ranked 7th, hiking 8 notches up from the 15th spot in

April. ABS-CBN News recorded 396.1 million views on Facebook and 144 million views

on YouTube.

The Top 3 spots were dominated by Indian news programs and organizations such as

Aaj Tak, ABP News, and IndiaTV. New York-based Now This claimed the 4th spot and

Now This Politics in 6th place. News 24, OTV, and ABC News took the last 3 spots in

the Tubular Top 10.

 What actions have your competitors taken in the past two years that have

changed the competitive landscape?

GMA Network is ABS-CBN Corp's major competitor. GMA's

documentaries are one of its most successful items. And people are

becoming fixated with viewing various documentaries. As a result, more

people are watching GMA, and ABS-CBN is striving to generate a show

that can compete with them. It change the whole landscape because

ABSCBN is losing some viewers and they need to work on it.

 What are you most afraid your competitor might do in the next two years to

change the landscape?

- ABS-CBN is still hoping to renew its operating license, but it is up to

the government to decide whether or not to do so. Because ABS-

CBN does not have a franchise, other networks will take advantage

of this. There is a possibility that they will get all the talents from

ABS-CBN and they will start to work on different network. It will

change the landscape because the main product of ABS is their

talent.