CHAPTER 2: MARKETING ASPECTS

2.1 Demand Analysis

2.1.1 Uniqueness of Business

Parcel to Go’s uniqueness is the convenience it can give to various business

owners particularly the retail business owners. The convenience it can give is the
package deal of printing design or customization and the manufacturing of the
packaging, because business owners tend to go to manufacturers to get the packaging
as well as to the printing shops that does the design and customization of their
packaging. Parcel to Go will do both manufacturing and the designing, so it would be a
convenience for a lot of business owners because time is important for every
entrepreneurs and parcel to go will not waste their time.

2.1.2 Demand in Business

The packaging industry is one of the businesses in demand most especially

today, because of the growth of small businesses particularly the retailers. Packaging
became a part of every retail businesses, for holding and protecting every product that
they sell. Packaging demand have risen due to its use in the retail market and the
appearance which attracts the sights of every customers, and at times it became the
reason why customers always buy from them. Paper bags, stickers, wrappers, and
cards are now a trend in the retail business not just in the Philippines but in the whole
word, because it shows appreciation for the buyer and protection of the product, and at
the same time it helps promote the business name and identity through its personalized
packaging . Thus businesses are making their packaging great because it represents
the company’s products and identity.

2.1.3 Demand Factors

 Online businesses tend to buy packaging because most of their transactions are
done through online and shipping is the only option.
  Retail businesses like sneakers, apparels, bags, toys, and jewelry stores are
using different types of packaging and they mostly use Parcel to Go’s products
like paper bags, stickers, wrappers, and cards.
 Almost every packaging products that the company sells are made of paper, so
it’s very convenient and eco-friendly because it’s biodegradable and it will not
pollute the environment unlike plastic waste.
 Aesthetics are trendy and examples of it are the stickers, cards, and wrappers
that is mostly used for the products presentation and for customer appreciation.
 The uniqueness of it that it accepts personalization/customization and both the
package and designs are in one deal.

2.1.4 Proof of Demand

It is also included in the top 150 profitable and in demand business of 2021

Source: https://grit.ph/business-ideas/
Search Articles (proper citations) Local Target Market

According to Roberto Batungbacal, a country director for Dow Chemical Pacific,

said that the manufacturing growth of packaging industries continues to be strong. “A lot
of this has to do with investments already in place and new ones starting up. We do
have With continued economic growth and strong demographics we have a robust
market primed for future expansion.” The steady growth of the industrial sector should
continue, and more than likely to accelerate, as ongoing economic growth and
increased spending on major infrastructure projects drive up domestic demand for raw
and finished goods. The packaging sector in the Philippines is expected to reach 69
billion units by 2024 at a compound annual growth rate (CAGR) of 3.3% for the forecast
period of 2019-2024 (GlobalData, 2020). Study shows that flexible packaging was the
most consumed material in the packaging industry of the Philippines with the market
share of 34.9% in 2019. (GlobalData, 2020). The pandemic made a big impact on
different industries in the Philippines shaken by the lockdown, social restriction
regulations and continued to reduced social interaction. According to Euromonitor
International (2020), small and flexible types of packaging has proven to be popular
across a range of products in 2019, especially products which are ecofriendly. With the
rising demand in plastic and paper pouches for delivery and product packaging it
continues to grow as online businesses flourish within the country.

2.1.5 Survey of Customer Demand (doc format)

According to the Survey Form conducted to 30 respondents who were business

owners, here are the questions answered in relating to the demand of the products.
 Product Demand
30

25

20

15

10

0
Stickers Paper bags Cards Wrapping Paper

Product Demand

Figure 1. shows the percentage of the respondents who chose which product is
the most useful? The chart shows that 83.3% or 25 of the respondents answered “paper
bags”, 16.7% or 5 respondent answered “stickers” while no respondents answered to
the cards and wrapping paper.

Figure 2. shows the percentage of the respondents who answered the question about
the pricing of the products provided by Parcel to Go. The chart shows that 90% or 27
respondents answered “just right”, 6.7% or 2 respondents ``answered undervalued
(price should be higher)”, 3.3% or 1 respondent answered “overvalued (price should be
lower)” and no respondent answered “not commensurate to the perceived value of the
item.”
 Figure 3. shows the percentage of respondents answering the question “Does
these products provide convenience for your business?”. The chart shows only 93.3%
or 28 answered “yes” while 6.7% or 2 respondents answered “no” to the prompt.

To summarize, the most voted/demanded product of parcel to go is the Paper

Bags and for the price, most of the respondents answered “Just Right” which we
conclude that the price is appropriate for the product demanded. In the last chart where
the question is “Does these products provide convenience for your business?” It shows
that most of the respondents answered “yes”. Which shows that Paper bag packaging is
the most demanded product than the stickers, cards and wrapping paper accordingly.

2.1.6 Online Data Gathering (Questions)

The instrument we used in gathering data from our target respondents is Google
Forms. We used this type of data gathering instrument to accumulate accurate data and
also in a fast and efficient manner. We used google forms to ask questions about our
products and services offered in Parcel to Go that will help in the decisions and actions
that will benefit to the growth of our business. For our survey we proposed 10 questions
to be answered by the respondents and these are the questions as followed:

1.) Is the product idea okay?

2.) Are the purposes of the products clear?

3.) Do you think the materials used in our products are durable and long-lasting?
4.) Do these products provide convenience for your business?

5.) Is the size of the products (small, big, Just right)

6.) Is the appearance (appealing, boring, just right)

7.) Which product is the most useful?

8.) The value of the item/services relative to the tentative price is (Undervalued
(price should be higher) Not commensurate to the perceived value of the item
Overvalued (price should be lower) Just Right)

9.) Over-all rating on the sample product (excellent (no improvement needed), okay
(needs minor improvement) not okay (needs major improvements), and not
recommended for further production.)

10.) Other recommendations if any

2.1.7 Survey Summary

According to the data that we have accumulated from the google form, we have
garnered 43 responses from respondents with an age range of 16-46. 27 or 62.8 % of
the respondents were non-DC students, while 16 or 37.2 % of the respondents were DC
students or personnel. Majority of the respondents were business owners which is 30 or
69.8% and only 13 or 30.2% were not. Most of the business owners ventured into food
businesses, while others were into clothing, arts and crafts and even autoshop.

The following results were identified:

Figure 1
 Figure 1 Shows the percentage of respondents answering the question “is the
product, okay?” the chart shows 100% of the total respondent answered “yes” to the
prompt.

Figure 2

Figure 2 Shows the percentage of respondents answering the question “are the
purposes of the products clear?” The chart shows 100% of the total respondents
answered “yes” to the prompt.

Figure 3
 Figure 3. shows the percentage of respondents answering the question “do you
think the materials used in our products are durable and long-lasting?”. The chart shows
only 93.3% or 28 answered “yes” while 6.7% or 2 respondents answered “no” to the
prompt.

Figure 4

Figure 4. shows the percentage of respondents answering the question “Does

these products provide convenience for your business?”. The chart shows only 93.3%
or 28 answered “yes” while 6.7% or 2 respondents answered “no” to the prompt.
 Figure 5

Figure 5 shows the percentage of respondents answering the question “is the
size of the products: small, big, just right”. The chart shows 90% or 27 respondents
answered “just right”, 6.7% or 2 respondents answered “big” and only 3.3% or 1
respondent answered “small” to the prompt.

Figure 6

Figure 6 shows the percentage of the respondents who answered the question
“is the appearance: appealing, boring, just right”. The chart shows that 73.3% or 22
respondents answered “just right”, 26.7% or 8 respondents answered “appealing” and
no respondents answered boring.

Figure 7

Figure 7 shows the percentage of the respondents who answered the question
“Which of the products is the most useful? Stickers, paper bags, cards, or wrapping
paper”. The chart shows that 83.3% or 25 of the respondents answered “paper bags”,
16.7% or 5 respondent answered “stickers” while No respondents answered cards and
wrapping paper.

Figure 8

Figure 8 shows the percentage of the respondents who answered the question
“The value of the item/service relative to the tentative price is: Undervalued (price
should be higher) Not commensurate to the perceived value of the item Overvalued
(price should be lower) Just Right”. The chart shows that 90% or 27 respondents
answered “just right”, 6.7% or 2 respondents ``answered undervalued (price should be
higher)”, 3.3% or 1 respondent answered “overvalued (price should be lower)” and no
respondent answered “not commensurate to the perceived value of the item.”

Figure 9

Figure 9 shows the percentage of the respondents who answered the question
“Over-all rating on the sample product: excellent (no improvement needed), okay
(needs minor improvement) not okay (needs major improvements), and not
recommended for further production”. The chart shows that 56.7% or 17 respondents
answered “excellent (no improvement needed)”, 43.4% or 13 respondents answered
“Okay (Needs minor improvement) while no respondents answered “not okay (needs
major improvements” and “not recommended for further production.

For the 10th question

Recommendations were, custom box and flexible materials that would handle cold
products.

2.2 SWOT Analysis

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Strong Free Cash Lack of strong Continuous Changing trends in
Flow reputation expansion for online economy
sales
High level of Not highly Development of Fluctuating raw
customer satisfaction successful at wholesale materials prices
integrating firms distribution
with different work relationship
culture.
Quality Product with Not very good at Economic uptick Intense
reliable resources product demand and increase in competition
forecasting leading customer spending
to higher rate of
missed
opportunities
compare to its
competitors.
Strong dealer New customers Growing strengths
community from online channel of local distributors

Strong distribution Organization’s core Changing

Network competencies can consumer buying
be a success in behavior from
similar another online channel
products field
Highly successful at New trends in the
Go to Market consumer behavior
strategies for its can open up new
products market for the
Packaging
Corporation of
Parcel to Go
Highly experienced
owner and Operators

2.2.1 Strengths

 Strong Free Cash Flow. Packaging Corporation of Parcel to Go has strong free
cash flows that provide resources in the hand of the company to expand into new
projects.
 High level of customer satisfaction. the company with its dedicated customer
relationship management department has able to achieve a high level of
customer satisfaction among present customers and good brand equity among
the potential customers.
  Quality Product with reliable suppliers. It has a strong base of reliable supplier
of raw material thus enabling the company to overcome any supply chain
bottlenecks and result to credible product for customers satisfaction.
 Strong dealer community. It has built a culture among distributor & dealers
where the dealers not only promote company’s products but also invest in
training the sales team to explain to the customer how he/she can extract the
maximum benefits out of the products.
 Strong distribution network. Over the years Packaging Corporation of Parcel
to Go has built a reliable distribution network that can reach majority of its
potential market.
 Highly successful at Go To Market strategies for its products.
 Highly experienced owner and Operators. The company possess a competent
leader and responsible operators maintaining a good delivery and innovative
services.

2.2.2Weaknesses

 Lack of strong reputation. Although with a great product, building a strong

credible reputation is needed for better connections.
 High attrition rate in work force. compare to other organizations in the industry
Packaging Corporation of Parcel to Go has a higher attrition rate and have to
spend a lot more compare to its competitors on training and development of its
employees.
 Not very good at product demand forecasting leading to higher rate of
missed opportunities compare to its competitors. One of the reason why the
days inventory is high compare to its competitors is that Packaging Corporation
of Parcel to Go is not very good at demand forecasting thus end up keeping
higher inventory both in-house and in channel.

2.2.3 Opportunities

 Continuous expansion for online sales. Online sales is currently a catch for
customers leading to dominance of online business and packaging to grow.
  Development of wholesale distribution relationship. This can open to
increase growth sales and good reputation related to the other companies.
 Economic uptick and increase in customer spending. after years of
recession and slow growth rate in the industry, is an opportunity for Packaging
Corporation of Parcel to Go to capture new customers and increase its market
share.
 New customers from online channel. Over the past few years the company
has invested vast sum of money into the online platform. This investment has
opened new sales channel for Packaging Corporation of Parcel to Go. In the next
few years, the company can leverage this opportunity by knowing its customer
better and serving their needs using big data analytics.
 Organization’s core competencies can be a success in similar another
products field. A comparative example could be - GE healthcare research
helped it in developing better Oil drilling machines.
 New trends in the consumer behavior can open up new market for the
Packaging Corporation of Parcel to Go. It provides a great opportunity for the
organization to build new revenue streams and diversify into new product
categories too.

2.2.4 Threats

 Changing trends in economy. Changes in customer behavior, government

regulations, and factors in economy can negatively impact company sales.
 Fluctuating raw materials prices. Rise in materials prices can affect the profit
and pressure that may soon lead to bankruptcy.
 Intense competition. Stable profitability has increased the number of players in
the industry over last two years which has put downward pressure on not only
profitability but also on overall sales
 Growing strengths of local distributors also presents a threat in some
markets as the competition is paying higher margins to the local distributors.
  Changing consumer buying behavior from online channel could be a threat to
the existing physical infrastructure driven supply chain model.

2.3 Competitive Analysis

2.3.1 Direct Competition

Business Name Location Price Range

1. Dexact Photo and DRE Bldg. 958 P. Ocapo Php 100.00 - Php 6000.00
Graphic Services St. Manila City

2. CMYK Print House Cagayan Del Pan St. Sta. Php 80.00 - Php 4600.00
Ana Manila City

3. Purity Printers Yakal St. Sta. Cruz Manila Php 140.00 - Php 1100.00
City

4. Blue Jeepney Apacible St. Brgy. Paco Php 135.00 - Php 2179.00
Digital Printing Manila City
Services

5. Yupo Printing Inc. Paz Mendoza Guanzon St. Php 80.00 -Php 1675.00
Manila City

2.3.2 Indirect Competition

1. Goodwill Bookstore Legarda St. Quiapo Manila Php 55.00 - Php 650.00
City

2. Nation Book Store Dr. Paz Mendoza Guanzon Php 78.00 - Php 881.00
St. Paco, Manila City
Reference:

GlobalData (2020, Dec 18). Philippines’ packaging market to reach 69 billion units at
3.3% CAGR by 2024. https://www.globaldata.com/philippines-packaging-market-reach-
69-billion-units-3-3-cagr-2024-says-globaldata/

Oxford Business Group (2020). Philippines' manufacturing industry bolstered by

growing demand. https://oxfordbusinessgroup.com/overview/gearing-industry-bolstered-
manufacturing-and-increasing-demand

Euromonitor International (2020, November). Packaging Industry in the Philippines.

https://www.euromonitor.com/packaging-industry-in-the-philippines/report