Growth Opportunities of Jhaymarts Industries, Inc.

1

Chapter 1

INTRODUCTION

Background of the Study

Water is one of the most important of all natural

resources. It is vital for all-living organisms and major

ecosystems, as well as for human health, food production

and economic development. Over the years, water end-users

and consumers have been very particular with the three

important factors in any water supply: the water quality,

the quantities available and the location of the water

supply relative to the points of use. The Chinese may have

invented the earliest pipeline about 400 B.C. which was

made of hollow bamboo and used to transport water. People

are becoming particular on which piping materials works

best and safest to use because of an issue compounded by

the age of water pipes that have now collected layers of

deposits. Thus, health hazards issues were attached to the

selection of piping materials. During the 19th and 20th

century, lead was used very widely; after World War II,

2

copper became a pre-dominant material for domestic water

service and distribution with galvanized pipe and plastic

pipe being alternatives. Over the years, there has been an

increase in the demand for water consumption as water is

supplied for use in homes and industries, for irrigation,

for extinguishing fires, for street cleaning, for carrying

wastes to treatment facilities and for many other purposes

(Grolier International 1992).

In the United States, the average residential daily

water demand is 100 gallon (380 liters) per person or it

can go as high as 500 gallon (1900 liters) per person

withdrawn from underground and surface sources. In the

Philippines, the average water production is 175 liters per

day per capita. In a 2004 sample of 45 water service

providers, the National Water Resources Board found an

average consumption of 118 l/d/c. The highest consumption

was recorded in the East Zone of Metro Manila with 232

l/d/c.

3

In 2004, about 3.5 billion people worldwide (54% of

the global population) had access to piped water supply

through house connections; 1.3 billion (20%) had access to

an improved water source through other means than house

connections including standpipes, water kiosks, protected

springs and protected wells; and more than 1 billion people

(16%) did not have access to an improved water source,

meaning they have to revert to unprotected wells or

springs, canals, lakes or rivers to fetch water. In 2000,

the Philippines reported that the community water system

was the households’ main source of water for drinking

and/or cooking and about 46.3 % of households used water

from a faucet connected to a community water system while

the 53.7% of households drew water from other means

(spring, lake, river, rain, deep well, dug well, bottled

water, peddler) (NSO 2000). In Mindanao, the number of

households with access to safe water is 3,043,351 families

or 80.45% in 2006 and 2,971257 families or 80.69% in 2005.

Region XI has the highest rate of households with access to

4

safe water (447,026 families or 80.51% in 2006 and 483,830

families or 84.05% in 2005) while the Autonomous Region in

Muslim Mindanao (ARMM) Province has the lowest rate of

households with access to safe water (281,820 families or

55.30% in 2006 and 223,271 families or 45.51% in 2005) and

this is due to the peace and order condition in ARMM areas

where political conflict and racism exist. For the years

2007 to 2010, one of the priority development programs of

the Davao City Government is the water and sanitation

projects with an allotment of P1, 391,882 project cost

which includes the construction of water reservoir,

installation of water pipeline, water tank and provision of

potable water system, deep well, submersible pump,

installation of culverts, restructuring and rehabilitation

of pipeline and many others (LDIP 2008-2021).

The Philippine Government intends to reach 92–96% of

potable water coverage by year 2010. According to the

United Nations Development Program (UNDP), the aim of the

Millennium Development Goals (MDGs) is for 86.6% of the

http://en.wikipedia.org/wiki/Millennium_Development_Goals

5

population to have access to safe water supply (National

Economic and Development Authority, 2004).

Jhaymarts Industries, Inc. (JII), a Davao based

corporation is known as the pioneer manufacturer of

polyethylene pipes in Mindanao. It has a potential market

to explore and expand the offering of its products and

services. Its awareness of the socio-economic profile of

the business and industry sector and its recognition of the

increasing number of people who do not have access to safe

water and of areas where no improved water source are

provided open a growth opportunity towards the probable

sales growth and increase in production of Jhaymarts

Industries, Inc.

However, since its inception, no study has been made

to gauge the growth opportunities for JII. Hence, this

study.

6

Statement of the Problem

This study was conducted to examine the status of the

Company in relation to its employees’ and customers’

evaluation as to the Company performance. It aimed to

answer the following:

1. What is the status of JII in terms of the following:

a. Articulation of vision; mission; organizational

structure; human resources and product lines;

b. Marketing practices adopted by JII as to the four

(4) marketing mix such as product, price, place, and

promotions as perceived by the employees; and

c. Sales revenue and production in units?

2. What is the profile of the customers and the

competitors as to the four Ps of Marketing?

3. What are the future demands of polyethylene pipes?

4. What are the growth opportunities of JII as to:

a. Customers’ segmentation;

b. Product diversification; and

c. Marketing strategies?

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Objectives of the Study

The main objective of this study was to identify

growth opportunities for JII in terms of customers’

segmentation, product diversification and marketing

strategies that will contribute to the increase of sales

and production growth of the Company. In order to achieve

the main purpose of the study, there is a need for a

deliberate evaluation of the profiles of the Company vis-à-

vis its competitors’ and customers’ profile and establish

if there is a concrete and actual demand for its products

in the years to come.

Significance of the Study

On a large scale, the importance of this study is

purely as an information-drive and awareness to probable

users and readers. The study, in general, provides

understanding on the water pipe industry and the socio-

economic conditions of the business and industry that will

8

guide the users in its attempt to explore the growth

opportunities. The results of this study will be

beneficial to the following groups:

Stockholders and Owners. The study will guide them in

setting direction and goals. The top management would be

able to evaluate their over-all performance if a larger

concept and scope of the industry is presented. A global

and local perspective provides them with a deeper

understanding of the business.

Marketing Department. This will offer the team a

substantial awareness and understanding of the water pipe

industry. Seeing it from a different perspective, the study

will guide them in the formulation of new and viable

marketing strategies.

Production Department. This will help the team in the

conduct of advance planning and in the formulation of

strategies on how to effectively produce products given the

condition and status of the wastepipe industry. The team

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can also resort to effective cost-cutting measures yet

still produce quality outputs.

Researchers. This will offer great learning and

understanding of the historical and current condition in

the local and global level as well as provide more

understanding on the flow and cycle of business.

Actual and Potential Clients and Customers. This will give

a clearer background of the company and its products.

The Private Sector. This will give them information and

updates regarding the socio-economic conditions of the

country and the specific areas covered which could be

useful for future decision making.

The Government. This will provide an understanding of a

better linkage of government sectors to the private sectors

to boost the economic growth of the country.

Other Users and Sectors. This study will present a

different and clearer angle of the wastepipe industry and

its current condition.

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Scope and Limitation of the Study

The study was limited to JII customers from the

following markets: industrial, commercial,

residential/individual, government/LGUs/NGO and

contractors/plumbers/developers. Furthermore, it was

limited to the sales and production performance of JII

during the years 2000 to 2008. Thus, the data was

limited to what was available and what the Company was

willing to declare.

Definition of Terms

The following terms were operationally defined in the

study:

Business Operation refers to the business

activities of the

Company which include but are not limited to production of

the products, sales and advertising, financial and

administration and customer service.

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Customers refer to persons who buy goods or services

especially on a regular basis.

Customers’ Segmentation refers to the grouping or

categorization of customers.

Competitors refer to persons or groups who engage in a

rivalry between two or more businesses striving for the

same customer or market.

Future Demands refer to the probable orders or demands

for JII’s product and services from its existing and

potential additional market.

Growth Opportunities refer to the successful

development of innovative products that enable growth and

create market opportunities.

Human Resources refer to the “human capital” or the

people in an organization.

Marketing Practices refers to the Company’s current

marketing strategies or styles in selling and promoting the

products to its customers and other channel distribution

such as dealers, outlets, free-lance agents and consignees.

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Marketing Mix refers to the four elements of marketing

which a marketer can use to craft a marketing plan.

Marketing Strategies refer to the means by which

marketing objectives will be achieved through a framework

that are generally concerned with the 4 Ps.

Mission Statement refers to the over-all aim of the

business, a simple statement of the Company’s reason for

being.

Organizational Structure refers to a plan for the

systematic arrangement of work in the organization.

Polyethylene Pipe refers to the main and prime

products produced and manufactured by the Company.

Place refers to the location or site of the Company

where it conducts its business operation.

Price refers to the amount of money paid by the

customers of the Company in exchange for the acquisition of

the products.

Product refers to the main and prime products produced

and manufactured by the Company.

http://en.wikipedia.org/wiki/Marketing_plan

13

Product lines refer to the whole range of products

marketed by a Company.

Product diversification refers to the act of moving to

a different line of business, perhaps, to entirely

unfamiliar products, market or even levels in the product

marketing system.

Profile refers to the business standpoint of their

competitors in

terms of the Marketing Mix or 4 Ps and the customer

segmentation or grouping.

Promotion refers to the advertising, sales

promotion, publicity, and personal selling, and to the

various methods of promoting the product, brand, or company

of JII.

The Company refers to Jhaymarts Industries, Inc.

(JII).

Vision Statement refers to where the Company wants to

go.

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Publicity

http://en.wikipedia.org/wiki/Sales_promotion


http://en.wikipedia.org/wiki/Advertising

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Acronyms

NSO - National Statistics Office

NSCB - National Statistical Coordination Board

MEDCO - Mindanao Economic Development Council

LWUA - Local Water Utilities Administration

DCWD - Davao City Water District

Chapter 2

REVIEW OF LITERATURE AND THEORETICAL FRAMEWORK

This chapter presents the related literature and

studies, the theory base, the conceptual framework and the

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research assumptions which intensify the relevance of the

study.

Related Literature and Studies

Vision and Mission Statement, Organizational Structure,Human Resources and Product Lines.

Vision Statement. Essentially, a vision statement

takes into account the current status of the organization,

and serves to point the direction of where the organization

wishes to go. It answers the question, “Where do we want to

go?” What you are doing when creating a vision statement is

articulating your dreams and hopes for your business. It

reminds you of what you are trying to build (Walker, 1999).

Mission Statement. A mission statement will broadly

describe an organization's present capabilities, customer

focus, activities, and business makeup. It is more

concerned with the overall aim of the business, a simple

statement of the company’s reason for being. It is a brief

description of a company's fundamental purpose. It answers

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the question, "Why do we exist?” It articulates the

company's purpose both for those in the organization and

for the public (Walker, 1999).

Organizational Structure. One of the most challenging

tasks of a business may be organizing the people who

perform its work. A business may begin with one person

doing all the necessary tasks. As the business becomes

successful and grows, however, there is generally more

work, and more people are needed to perform various tasks.

Through this division of work, individuals can become

specialists at a specific job. Because there are several

people—often in different locations—working toward a common

objective, "there must be a plan showing how the work will

be organized. The plan for the systematic arrangement of

work is the organization and is comprised of functions,

relationships, responsibilities, authorities, and

communications of individuals within each department"

(Sexton, 1970).

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Human Resources. This is an increasingly broadening

term that refers to managing "human capital," the people of

an organization. The field has moved from a traditionally

administrative function to a strategic one that recognizes

the link between talented and engaged people and

organizational success. The more traditional usage within

corporations and businesses refers to the individuals

within a firm or agency, and to the portion of the

organization that deals with hiring, firing, training, and

other personnel issues, typically referred to as human

resources management.

Product Lines. This generally refers to the whole

range of products marketed by a company. This is also

explained as a group of related products marketed by the

same company that differ only in size or style.

Marketing Practices and Marketing Mix.

Marketing. Marketing is the process of planning and

executing the conception, pricing, promotion and

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distribution of ideas, goods and services to create

exchanges that satisfy individual and organizational

objectives. A market-focused or customer-focused

organization first determines what its potential customers

desire, and then builds the product or service (John Wiley

& Sons, Inc., 1976).

In popular usage, "marketing" is the promotion of

products, especially advertising and branding. However, in

professional usage the term has a wider meaning which

recognizes that marketing is customer centered. Products

are often developed to meet the desires of groups of

customers or even, in some cases, for specific customers.

In addition, the marketing department of a business is

responsible for the physical distribution of the products,

determining the channels that will be used, and supervising

the efficient flow of goods from the warehouse (Kotler,

1997). Figure 1 shows the picture of the basic concept of

marketing.



http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Product_(business)

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Promotion

Goods and services Goods andservices

Figure 1. Basic Marketing Diagram

Marketing Practices. Marketing theory and practice is

justified in the belief that customers use a product or

service because they have a need or because it provides a

perceived benefit. The term "marketing mix" or the concept

of the marketing had described the marketing manager as a

"mixer of ingredients" (Neil H. Borden, 1964).

The ingredients in Borden's marketing mix include

product planning, pricing, branding, distribution channels,

personal selling, advertising, promotions, packaging,

display, servicing, physical handling, and fact finding and

analysis. This is simplified into major marketing decisions

which are now classified into four categories namely

product, price, place, and promotion. These ingredients are

Customers

http://en.wikipedia.org/wiki/Customer

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now known today as the 4 Ps of marketing that marketing

managers can control in order to best satisfy customers in

the target market.

These four Ps are the parameters that the marketing

manager can control, subject to the internal and external

constraints of the marketing environment. The goal is to

make decisions that center on the four P's on the customers

in the target market in order to create perceived value and

generate a positive response. The four Ps are:

Product Place

TargetMarket

Price Promotion

Figure 2. The Marketing Mix

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Product. The product aspects of marketing deal with

the specifications of the actual goods or services, and how

it relates to the end-user's needs and wants. The scope of

a product generally includes supporting elements such as

brand name, functionality, styling, quality, safety,

packaging, repairs and support, warranty and accessories

and services.

Price. This refers to the process of setting a price

for a product, including discounts. The price need not be

monetary - it can simply be what is exchanged for the

product or services, e.g. time, energy, psychology or

attention. Some examples of pricing decisions to be made

include pricing strategy (skim, penetration, etc.),

suggested retail price, volume discounts and wholesale

pricing, cash and early payment discounts, seasonal

pricing, bundling, price flexibility and price

discrimination.

http://en.wikipedia.org/wiki/Price

http://en.wikipedia.org/wiki/End-user

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Place. This refers to how the product gets to the

customer; for example, point of sale placement or

retailing. This is also sometimes been called Placement or

distribution, referring to the channel by which a product

or services is sold (e.g. online vs. retail), which

geographic region or industry, to which segment (young

adults, families, business people), etc.

Some examples of distribution decisions include

distribution channels, market coverage (inclusive,

selective, or exclusive distribution), specific channel

members, inventory management, warehousing, distribution

centers, order processing, transportation, reverse

logistics and promotion Decisions.

Promotion. This includes advertising, sales promotion,

publicity, and personal selling, and refers to the various

methods of promoting the product, brand, or company.

Marketing communication decisions include promotional

strategy (push, pull, etc.), advertising, personal selling


http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Publicity



http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Retailer

23

& sales force, sales promotions, public relations &

publicity and marketing communications budget.

Promotion has four distinct elements – advertising,

public relations, word of mouth and point of sale. A

certain amount of crossover occurs when promotion uses the

four principal elements together, which is common in film

promotion.

Sales and Production Performance

Sales Performance. One indicator to determine the

success of the company operation is in terms of sales

performance. This means that the company has successfully

sold its products and the customers have continually

patronized and used/consumed the products. Thus, a sale

occurs which is the pinnacle activity involved in selling

products or services in return for money or other

compensation. It is an act of completion of a commercial

activity.

http://en.wikipedia.org/wiki/Selling

http://en.wikipedia.org/wiki/Point_of_sale

http://en.wikipedia.org/wiki/Word_of_mouth

http://en.wikipedia.org/wiki/Public_relations

24

Production Performance. Another good indicator for

success in company operation is controlled production.

Production means the development and creation of goods and

services using resources to stimulate exchange. It is the

physical output of a manufacturing or service company.

Production involves three processes – raw materials, work

in process and finished goods. The means of production

refer to the concept which combines the means of labor and

the subject of labor. Means of labor simply determines all

the things which require labor to transform it. Subject of

labor means the material to work on. Production, therefore,

is the combined resources and equipment needed to come up

with goods or services. Production of goods also requires

best timing such that the inventory level does not exceeds

the maximum amount of products ordered and sold. The level

of production should be maintained in order to avoid

overstocking of inventory. Top management prefers that

operation fund be in active position than overstocking of

inventory.

http://www.britannica.com/EBchecked/topic/477991/theory-of-production

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Finding Target Market Opportunities with MarketSegmentation

What are Attractive Opportunities? According to Mc

Cathy (1996), this involves finding attractive target

markets with emphasis on finding breakthrough opportunities

that helps innovators develop hard-to-copy marketing

strategies that will be very profitable for a long time.

Finding breakthrough opportunities is important because

imitators are always waiting to “share” the profits –if

they can. Even if a firm cannot find a breakthrough

opportunity, it should try to obtain a competitive

advantage to increase its chances for profit and survival.

Competitive advantage means that a firm has a marketing mix

that the target market sees as better than a competitor’s

mix.

Sometimes, a firm can achieve breakthrough

opportunities and competitive advantage by simply fine-

tuning its marketing mix(es). Sometimes, it may need new

facilities, new people in new parts of the world, and

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totally new ways of solving problems. But every firm needs

some competitive advantage so the promotion people have

something unique to sell and success does not just hinge on

low prices. Mc Carthy (1996) elaborates:

Types of Opportunities to Pursue. Most people have

unsatisfied needs and alert marketers who see these needs

find opportunities all around them. The four broad kinds of

opportunities, market penetration, market development,

product development, and diversification are shown in

Figure 3.

Present Products

New Products

Market Product Present Markets Penetration Development

Market New Markets Development Diversification

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Figure 3. Four broad Kinds of

Opportunity

Market Penetration. It means trying to increase sales

of a firm’s present products in its present markets –

probably through a more aggressive marketing mix. The firm

may try to increase the customer’s rate of use or attract

competitor’s customers or current non-users. For example,

new promotion appeals alone may be effective. A firm may

need to add more stores in present areas for greater

convenience or cut prices to appeal to more people.

Market Development. It means trying to increase sales

by selling one’s present products in new markets. Firms may

try advertising in different media to reach new target

customers. Or they may add channels of distribution or new

stores in new areas, including overseas. Market development

may also involve searching for new uses for a product as

when Lipton provides recipes showing how to use its dry

Soup mixes for chip dip.

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Product Development. It means offering new or improved

products for present markets. By knowing the present

market’s needs, a firm may see totally new ways to better

satisfy customers. Computer software firms like Microsoft

boost sales by introducing new versions of popular

programs. Microsoft also develops other types of new

products, including computer books for its customers.

Diversification. It means moving into totally

different lines of business-perhaps entirely unfamiliar

products, markets or even levels in the production

marketing system.

How to Identify Consumers and Reach Consumers?

Basically there are two ways to identify consumersthrough(1) market segmentation (2) targeting. The way to reach

consumer is through product positioning and repositioning.

Segmentation. First, the over-all market is divided

into market segments, where each segment has one or more

important characteristics in common, characteristics that

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set it apart from others. Once the relevant market segments

have been identified, a profile of each segment is

constructed.

Dimensions for Segmenting Industrial Markets by

Organizational “Demographics”. This means that like

people, businesses can be segmented using measurable

characteristics. These include what industry they are in,

the number of companies in that industry, the total

quantity of goods purchased and the manufactured values of

those goods and this uses the End-Use Application where

industrial marketers must consider how their products will

be used by different customers. They must focus on

identifying different end-use applications for these

offerings.

Targeting. The marketer next evaluates the segments he

or she has identified in terms of their relative

attractiveness and his or her ability to meet each

segment’s unique needs. On the basis of this analysis the

company decides which segments to target.

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Positioning. After the selection of a target market

segment (or segments), a good or service is developed to

meet the segment’s needs and the benefits of the offering

are communicated and delivered in a way that will appeal to

segment members. This involves the creation of a marketing

mix that is calculated to closely match the needs of all

segments and to provide a competitive advantage (image

advantage, product advantage, service advantage, people

advantage) over rival offerings in the minds of segment

members.

Repositioning. This occurs when (1) a brand’s original

“personality” is altered to appeal to a different segment,

(2) when too many competitors are stressing the same

attributes and (3) when the original market evaporates or

in unreceptive to the offering (Mc Carthy, 1996).

Socio-Economic Profile of the Philippines, Mindanao, RegionXI and Davao City.

There are probable growth areas for the Company to

explore and consider. Comprehensive data, from the NSO and

31

NSCB (2005-2009) is shown which presents the statistical

history of the Philippines, Mindanao, Region XI and Davao

city socio-economics indicators.

Philippines. The Philippines is an archipelago country

of 7,100 islands with a land area of 30 million hectares.

It showed that the country has an increasing total

population of 68.6 Million in 1995, 76.5 Million in 2000

and 88.5Million in 2007. Its annual population growth rate

is 2.02 per cent. Figure 4 and 5 show the population growth

of the Philippines from 1977 to 2025. Fifty five per cent

(55%) of the population is estimated to live in urban areas

while 45 % lives in rural areas. Continuous migration to

highly urbanized centre has increased the number of urban

dwellers who flocked to cities looking for employment

opportunities in the industry, commercial and service

sectors. In large cities like Metro Manila and Cebu, urban

dwellers represent about 59% of the city's population.

32

Figure 4. Growth of Population

Figure 5 shows the Philippine projected populations in

the coming years and shows the increase in population by

three main island of Luzon, Visayas and Mindanao. The

Philippine is expected to grow around 95 Million in 2010,

103 Million in 2015, 118 Million in 2020 and 120 Million in

2025.

33

Figure 5. Projected Population Growth

Mindanao. The island was regarded as the Island of

Promise and has become a “gateway to opportunity” for the

Philippines and for international investors eyeing

opportunities in agribusiness, industry and tourism. Among

the three main islands, Mindanao has the biggest total land

area of “120.8 thousand square kilometers” located in the

heart of the Asia-Pacific region. From the Spanish era up

to the present, it remains underdeveloped compared to

Luzon. The problem on peace and order due to the political

conflict and racism issued had been seen as the main

factors of the sluggish development of the island in view

34

of the fact that beliefs and cultural diversities between

native inhabitants and migrants exist within it (MEDCO

2009). Mindanao is composed of Regions IX to XIII and the

ARMM.

Table 1 shows the Mindanao Population from year 1995

to 2007. Mindanao shows a registered total population of

16.2 Million in 1995, 18.1 Million in 2000, and 21 Million

in 2007. Per records of NSO, the annual population growth

rate is 2.44 %. Mindanao is composed of Region IX, X. XI,

XII, Caraga Region and Autonomous Region in Muslim Mindanao

(ARMM). The population is expected to double within the

period of about three decades (NSO 2009).

Table 1. Mindanao Population

Regions 2007 2000 1995Region IX-

Zamboanga

3,230,094 2,831,412 2,567,651

Region X –

Northern Mindanao 3,952,437 3,505,558 3,197,059Region XI-Davao

Region

4,156,653 3,676,163 3,288,824

Region XII –

SOCCKSARGEN

35

3,829,081 3,222,169 2,846,966Region XIII-

Caraga

2,293,480 2,095,367 1,942,687

ARMM 4,120,795 2,803,945 2,362,300Total 21,582,540 18,133,714 16,205,487

As shown, Figure 6 depicts the population distribution

of the three main islands of the Philippines where Luzon

contributes 56%, Mindanao contributes 24%, and Visayas

shares 20%. It covers the population distribution period

from 2000-2007.

Figure 6. Population Distribution

36

Region XI or Davao Region. This region has the

highest registered population in the island of Mindanao

with a total of 4,156,653 in 2007, 3,676,163 in 2000, and

3,288,824 in 1995. Figure 7 shows the total population

and annual growth rates of Region XI.

Figure 7. Total population and annual growth rates

Region XI is composed of four (4) provinces of Davao

del Norte, Davao Del Sur, Davao Oriental and Compostela

Valley. It has six (6) cities, 43 municipality and 1,162

barangays. As shown in Table 2, Region XI recorded the

highest number of families both in urban and in rural, to

wit:

Table 2. Highest Number of Families Both inUrban/Rural

37

Area 1991 1994 1997 2000 2003Region

XI

478,0

00

508,

800

556

,800

603,

728

602,

000

Mindanao 2,672,40

0

2,855,0

00

3,185,

700

3,489,

501

3,764,0

00

Phils. 11,975,30

0

2,755,0

00

14,192,4

00

15,071,9

41

16,268,00

0

Davao City. It was on March 16, 1936 when Assemblyman

Romualdo Quimpo sponsored a bill in Congress making Davao a

chartered city. It was on October 16, 1936 that President

Manuel L. Quezon signed the bill into law and on March 1,

1937, the formal inauguration was held (Socio-Economic

Indicators 2007-2010).

The city is the biggest in Southern Mindanao in terms

of population area. As of June 2006 statistical data, Davao

City has three (3) congressional districts and 182

barangays. Barangay Buhangin was the City’s biggest

barangay in terms of population size for the year 2007 and

2000 statistics.

38

Table 3 shows the population growth of Davao City for

the year 1995, 2000 and 2007 and its corresponding

percentage of increase of population growth. As shown,

Davao City recorded a population of 1 M in 1995, 1.1

Million in 2000 and 1.3 Million in 2007.

Table 3. Population of Davao City

Population % of increase2007 1,363,337 18.852000 1,147,116 13.931995 1,006,840 -

Davao City’s population is projected to increase

1,567,719 in 2011, 1,753,445 in 2015 and 2,016,842 in 2020.

It is now one of the fastest growing cities in the

Philippines. Davao City now, being the capital of the Davao

Region, is the biggest urban market in the growth polygon

called BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines

East Asean Growth Area). Its business sector is very

promising, thus, Davao City got the award for Most

Competitive Metro City in the Philippines for the years

2001, 2003, 2005. The City was adjudged using indicators

39

such as quality of life, cost of doing business, dynamism

of the local economy, infrastructure, linkages and

accessibility, and quality of workforce

One of the credentials of Davao City why it became

the Asia-Pacific ideal for tourism and investment is its

tap water. It has been tested internationally for quality

against all major bottled waters sold in the market and was

adjudged the best in terms of cleanliness, safety, mineral

content and taste. This was certified by no less than the

World Health Organization.

Theory Base

This study was anchored on the concept of Product-

Market Growth Matrix. It involves developing growth

strategies for each of its business units that support the

firm’s overall growth objectives. This process focuses on

the firm’s product mix and determines whether the firm

would be better off putting its resources into existing

products or trying to grow by developing or acquiring new

40

products. It also relies on an assessment of the growth

potential of existing markets and new markets. Combining

these options provide four different fundamental marketing

strategies such as a.) Market penetration; b.) Market

development; c.) Product development and d.)

Diversification.

Also, this study was anchored on the principles of

marketing and marketing concept. The overall operation is

understood by a fact that it entails the analysis of

customers, competitors, and companies, combining this

understanding into an overall understanding of what

segments exist, deciding on targeting the most profitable

segments, positioning your products, and then doing what's

necessary to deliver on that positioning (Marketing).

Further, an organization aims all its efforts at satisfying

its customers – at a profit and for a social

responsibility. They have a concept that firms exist to

serve the customers and, more broadly, the needs of the

society. It incorporated a marketing orientation that means

41

instead of just trying to get customers to buy what the

firm has produced, a marketing-oriented firm tries to

produce what customers need. (Marketing Concept).

More so, this study was anchored on the concept of

marketing strategies which means a `game plan', by which

marketing objectives will be achieved and, in the framework

that we have chosen to use, are generally concerned with

the 4 Ps. In principle, these strategies describe how the

objectives will be achieved. The 4 Ps are a useful

framework for deciding how the company's resources will be

manipulated (strategically) to achieve the objectives. It

should be noted, however, that they are not the only

framework, and may divert attention from the real issues.

The focus of the strategies must be the objectives to be

achieved - not the process of planning itself.

Conceptual Framework

The conceptual framework presented in Figure 8 depicts

the growth opportunities for JII to consider and explore in

42

order to improve its financial performance in terms of

sales and production, enhance its marketing strategies and

increase its customers. To establish growth opportunities,

there is a need to assess and evaluate the company status,

its customers and competitors and be updated with the

current and future demands for polyethylene pipes.

Growth Opportunities of Jhaymarts Industries,

Inc. (JII), Davao City

- Customer Segmentation - Product Diversification

- Marketing

43

Figure 8. Conceptual Framework of

the Study

Research Assumptions

The following research assumptions were made:

1. That JII has potential growth opportunities to explore

in increasing its current client base if it

intensifies its coordination and linkage with

Government, NGOS, Local Government Units and

Cooperatives and other firms/ sectors in the society

who contribute to the growth of the City and the

adjacent communities.

44

2. That JII has potential growth opportunities if

company’s resources expressed in Marketing Mix or the

4Ps will be manipulated (strategically) to achieve the

Company’s goal and objectives as expressed in its

vision and mission.

Chapter 3

METHODOLOGY

This chapter presents the description of the methods

used, source of data, data gathering instrument, sampling

45

technique, procedure of the study, and the statistical

treatment.

Method Used

This study used the descriptive-evaluative research

and descriptive-survey research. Descriptive method of

research describes the status of events, people or subjects

as they exist. The objective of the descriptive-evaluative

study is to judge the “goodness of a criterion measure”.

Survey research is used to describe the current or

prevailing conditions, opinions, attitudes, impressions,

perceptions of a group of people or description of objects

(Padua 2000).

Sources of Data

The primary source of data consisted of the responses

of the JII employees and customers to the survey the

questionnaire. On the other hand, the secondary source of

data was drawn from the following: records of NSO, NSCB,

46

Davao City Planning Office and MEDCO; the brochure of the

company’s competitors; and the financial statement, sales

and production records of JII.

Data Gathering Instrument

The questionnaires used in the study were adapted

from the study of Romeo Dequito (2007). These were two sets

of questionnaires. The first set of survey questions was

for the employees of JII while the second set was for the

customers of JII. Both sets had two parts.

Part I of set A measured the status of JII’s in terms

of the articulation of vision-mission, organizational

structure, product lines and human resources. Part II of

sets A and B determined the status of the marketing

practices employed by JII.

Table 4. Likert Scale on the Articulation of Vision-Mission, Organizational Structure, Product Lines and HumanResources of JII as Perceived by Employees that includetheir Rating, Range Interval, Verbal Description andInterpretation

Rating RangeInterval

VerbalDescription

Interpretation

5 4.50-5.00 Strongly Agree When the statement meets

47

(SA) significant direction and therespondents perception is 80%to 100%

4 3.50-4.49 Agree (A) When the statement meetssignificant direction and therespondents perception is Whenthe statement meets significantdirection and the respondentsperception is 60% to 79%

3 2.50-3.49 Uncertain (U) When the statement meetssignificant direction and therespondents perception is 40%to 59%

2 1.50-2.49 Disagree (D) When the statement meetssignificant direction and therespondents perception is 20%to 39%

1 1.00-1.49 StronglyDisagree SD)

When the statement meetssignificant direction and therespondents perception is lessthan 20%

Table 5. Likert Scale on the Status of Marketing PracticesEmployed by JII as to Product and Place for Employees andfor Customers


VerbalDescription

Interpretation

5 4.50-5.00 Very Satisfied(VS)

When the statement meetssignificant direction and therespondents perception is 80%to 100%

4 3.50-4.49 Satisfied (S) When the statement meetssignificant direction and therespondents perception is Whenthe statement meets significantdirection and the respondentsperception is 60% to 79%

3 2.50-3.49 ModeratelySatisfied (MS)


48

2 1.50-2.49 Unsatisfied(U)


1 1.00-1.49 VeryUnsatisfied(VU)


Table 6. Likert Scale on the Status of Marketing PracticesEmployed by JII as to Price for Employees and Customers


VerbalDescription

Interpretation

5 4.50-5.00 VeryReasonable(VR)


4 3.50-4.49 Reasonable (R) When the statement meetssignificant direction and therespondents perception is Whenthe statement meets significantdirection and the respondentsperception is 60% to 79%

3 2.50-3.49 ModeratelyReasonable(MR)


2 1.50-2.49 Unreasonable(U)


1 1.00-1.49 VeryUnreasonable(VU)


Table 7. Likert Scale on the Status of Marketing PracticesEmployed by JII as to Promotions for Employees andCustomers


VerbalDescription

Interpretation

49

5 4.50-5.00 HighlyPracticed (HP)


4 3.50-4.49 Practiced (P) When the statement meetssignificant direction and therespondents perception is Whenthe statement meets significantdirection and the respondentsperception is 60% to 79%

3 2.50-3.49 ModeratelyPracticed (MP)


2 1.50-2.49 SeldomPracticed (SP)


1 1.00-1.49 NeverPracticed (NP)


Sampling Techniques

The researcher identified that the respondents of this

study covered the JII employees and their customers. For

employees, all the rank and file and the supervisory

positions were identified as respondents. The President and

the Finance Officer waived their participation as

respondents.

Shown in Table 8 is the Summary of Respondents, both

the employees and customers in terms of population and

50

sample size. It also shows the percentage of actual

response to total population in terms of employees and

customers.

Table 8. The Respondents

Operation

Employees Customers

PopulationSampleSize Population

SampleSize

Rank and file 25 25

Supervisors 7 7

President and Managers 3 1

Total 35 33

Percentage 100% 94%

Market

Industrial 12 10

Commercial 136 15

Residential/

Individuals 188 12

Government/LGUS/NGOS 99 17

Contractors/Plumbers 58 16

Total 35 33 493 70

Percentage 100% 94% 100% 14.20%

Procedure of the Study

51

A systematic and orderly procedure is necessary in

conducting a scientific research (Nadela, 2000). Therefore,

the accomplishment and completion of the study was based on

the following procedures. The researcher sought the

approval and permission of the President, Finance and

Administrative Officer, Marketing Officer and the

Production Supervisor to conduct the study, to gather

pertinent and relative data, to interview the officers and

staff concerned, and to visit the production and sales

area. This was followed by the adoption of the interview

guide and questionnaires adapted from Dequito’s (2007)

study which were used in gathering primary data (see

Appendix B and C). Data gathered were analyzed and

interpreted. Conclusions and recommendations were executed

and established.

Statistical Treatment

The data and information gathered were analyzed and

interpreted using statistical tools. To determine the

52

status of the Company, the weighted mean and percentage

were employed. The same statistical tools were used to

describe the profile of the customers and the competitors

as to the 4 Ps of marketing.

.

Chapter 4

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter deals with the results of the study which

are presented, analyzed and interpreted as follows:

53

Status of Jhaymarts Industries, Inc. (JII)

The Company is a Davao City-based corporation known

as the pioneer manufacturer of polyethylene pipes in

Mindanao. It is the first HDPE pipe manufacturer in the

Philippines given the Certificate of Quality by the Bureau

of Product Standards, the P.S. mark with License No. 1149

Serial No.: 001523.

The Company was established in 1992 as a pioneer with

only half million pesos initial capitalization to

manufacture plastic pipes for pressurized water system. Its

owners availed of the government’s Kalakalan 20 program of

then President Cory Aquino with a total manpower of only 10

employees. The Company is a recipient of the Morning-GMA 7

Negosyanteng Pinoy Award in 1999.

Articulation of Vision. The JII’s vision is

articulated to become a dynamic business community

committed to the welfare and progress of the society

54

adhering to the principles of solidarity and subsidiary in

accordance with the will of the Divine Providence.

As shown in Table 9, the employees rated items number

one (1) and three (3) with highest mean of 4.42 and item

number five (5) with lowest mean of 4.19. The employees

in general “AGREE” with an over-all mean of 4.31 that the

over-all vision of the Company takes into account and

reflects the current status of the organization and serves

to point where the organization wishes to go. However, the

employees need to know more what the Company currently

aspires for and what the management will try to pursue in

the years to come. They wanted to see what the Company’s

plans are, for them and for the business.

Table 9. Employees’ Perception on Articulation of Vision

Items Mean Description

1.The vision statement is clear andunderstandable to all employees

4.42 Agree

2. The vision clearly pictures the currentstatus of the organization

4.23 Agree

3. The vision serves to point the directionwhere the organization wishes to go

4.42 Agree

4. The vision of the company is a very clearguide to achieve the company long-term goal

4.31 Agree

55

5. The vision is articulating the dreams andhope for the business and what the managementis trying to build.

4.19 Agree

OVER-ALL 4.31 Agree

Articulation of Mission. The JII’s mission statement

is articulated as follows: (a) In pursuit of serving with

the highest standards of products and services in the

field of water conveyance, use and conservation, they

remain dedicated to their foundational aims (b) To provide

the community and the society with the utmost quality

products and services in recognition of our social

responsibility and the belief that our people are our most

valued resource (c) To ensure new and existing developments

in water systems through research of technological

innovations so as to respond better and quicker to the

changing world (d) To form committed professionals by

fostering an environment where they work and grow together,

each achieving continuous and professional competence.

As shown in Table 10, findings revealed that employees

rated item number four (4) with highest mean of 4.46 while

56

item number three (3) was rated with lowest mean of 4.19.

The employees generally “AGREE” with an over-all mean of

4.31 that the over-all Mission described the organizations

fundamental purpose. However, the employees wanted to know

more re the role of the Company in society and in the

organization.

Table 10. Employees’ Perception on Articulation of

Mission.


1. The mission statement is made know to all employees as a guide why the company exist

4.34 Agree

2. The mission is concerned on the overallaim of the company

4.23 Agree

3. The mission articulates the company’spurpose both for the organization and for thepublic

4.19 Agree

4. The mission statement best describes thecompany’s present capabilities, customerfocus

4.46 Agree

OVER-ALL 4.31 Agree

Articulation of Organizational Structure. The

organizational structure of JII’s and the specific role and

responsibilities of officers and staff are shown in

Appendix D.

57

As shown in Table 11, the perception of employees on

the Company’s organizational structure showed that item

number one (1) had the highest mean of 3.96 while item

number four (4) got the lowest mean of 3.57. Generally, the

over-all rating was “AGREE” or 3.76 which means that the

employees in general were agreeable that the organizational

structure was clearly defined. However, the employees

wanted to understand and know their functions and

responsibilities.

Table 11. Employees Perception on Articulation ofOrganizational Structure

Items Mean Description1. The organization structure of thecompany is visible at the operation area

3.96 Agree

2. The organization structure is made knownor is clear to all employees

3.76 Agree

3. The organization structure is understoodby all employees that there is a need ofdivision of works and individuals canbecome specialist at a specific job

3.76 Agree

4. The organization structure is understoodas a plan for the systematic arrangement ofwork. That an organization is comprised offunctions, relationships, responsibilities,authorities, and communications ofindividuals within each department

3.57 Agree

OVER-ALL 3.76 Agree

58

Articulation of Human Resources. The Company’s

policies and governing rules and regulations in handling

its human resources are presented in detail in Appendix

D.

Table 12 shows the perception of employees on

Company’s human resources. It reveals that item number two

(2) had the highest mean of 4.03 while item number one (1)

had the lowest mean of 3.50. The over-all rating of the

employees was “AGREE” or a mean of 3.78 which implies that

the employees generally agreed that the Company’s

underlying policies and governing rules and regulations in

handling its human resources was clearly defined. The

employees believed that they should receive a copy of a

handbook for their protection.

Table 12. Employees Perception on the Articulation of HumanResources

Items Mean Description1. The company policies and rules are madeknown to all employees. A handbook isdistributed to all employees

3.50 Agree

2. The company conducts regular meeting toall employees to discuss all problemsrelated to human resources

4.03 Agree

59

3. The company updates all employeesregarding the company activities and long-term plans

3.69 Agree

4. The company is open to open-negotiationto all employees and to its respectiverepresentatives

3.92 Agree

OVER-ALL 3.78 Agree

Articulation of Product Lines. The main products

manufactured by the Company are high density polyethylene

pipes (HDPE), low density polyethylene pipes (LDPE). The

recycled materials are reused and reprocessed to produce

storm drain pipe for drainage and wastewater lines. Tables

13 to 15 show the product lines of the Company and its

corresponding uses, advantages, product application,

standard, material sizes and colors.

Table 13. Classification of Product Lines According to its

Uses

Product Lines UsesHigh density polyethylenepipes

Transmission lines, trenchless lines,distribution lines, service connectionlines, irrigation lines, well casingand fish cage

Low density polyethylenepipes

Used for main, sub-main, and lateralline where emitters (sprinkles ordrippers) are inserted for irrigationsystems.

Storm drain piping System

Used as best substitute for the heavy,low efficient and high installation and

60

maintenance cost, cement culvertsOther productsCompression fittings, Buttfusion fittings, SocketFusion Fittings,Electrocution fittings,Valves, water meter,Irrigation supplies

Used as fittings and attachments to themain pipes such as HDPE LDPE and stormdrain pipes

Table 14. Classification of Product Lines According to itsAdvantages

Product Lines AdvantagesHigh density polyethylenepipes

- It can be heat fused together to forma joint that is as strong or strongerthan the pipe itself and is LEAK free - flexible and fatigue resistant-does not corrode, tuberculate orsupport biological growth- cost effective and with long andpermanent estimated service life of50-100 years- the allowable water leakage is zerorather than typical leakage rates of10% to 20% for PVC and ductile iron

Low density polyethylene

pipes

-It contains a minimum of 2% carbonblack for UV stabilization to withstanddirect sunlight in unburiedapplications

Storm drain piping system It featured corrugated outside wall towithstand external pressure and plaininside wall for smooth flow

Table 15. Classification of Product Lines According to itsProduct Application, Standard, Material Sizes and Color.

ProductLines

Application Standard Material Sizes Color

HDPE Potable water maindistribution andservice connectionsystem,plantations, aqua

Conformingto ISOseries, SDRPR based oncontrolled

Type IV,Class C,Grade PE3408 withhydrostati

-16mmto 110mm- ½inches

Black

61

farm outsidediameter

c designof 800psiExtrusionCompoundconformingto ASTM1248

to 3inches

HDPE(Nonpressuredpipes)

General purpose(electrical,drainage)

Recycledpolyethylene resins

½ inchto 8inches

Grayblack

LDPE Irrigationlaterals and sub-mains

Conformingto ISOSeries

LowDensity,virginresins,ultravioletstabilized

12mm to25 mm

Black

StormDrain

Drainage andwastewater lines

Compoundedpolyethylene resins

200 mmto 900mm

Black

Table 16 shows the perception of employees on the

Company’s product lines and showed that item number one (1)

has a highest mean of 4.15 while item number five (5) got

the lowest mean of 3.81. The over-all rating of the

employees was “AGREE” or 3.97 which means that the

employees generally agreed that the product lines of the

Company represent the whole range of products marketed by

the Company to its customers. The customers assessed that

the Company was responding to market demands of the product

62

by ensuring the new developments in the water system to

respond to the changing world.

Table 16. Employees Perception on the Articulated Product

Lines

Items Mean Description1. The company provides continuous marketdemand for the product

4.15 Agree

2. The company is open and implements toproduct innovation

3.96 Agree

3. The company maintains availability of allproduct lines

4.00 Agree

4. The company solicits product demands fromcustomers

3.84 Agree

5. The company sells units based on customers’demand

3.81 Agree

6. The company provides customer variety ofchoices for the products

4.07 Agree

OVER-ALL 3.97 Agree

Marketing Practices Adapted by the Company .The Four

Ps of marketing are the parameters that the marketing

manager can control, subject to the internal and external

constraints of the marketing environment. The goal is to

make decisions that center on the four Ps and the status of

marketing practices of the Company are expressed as

follows:

63

Product. The Company continuously tapped international

companies from Israel, Singapore, South Korea and others by

bringing in the latest products and technology to

complement its pipes and fittings thus making the company a

comprehensive water system provider.

Also, they offer free technical assistance, free

consultation and free design and customer area survey as to

the appropriate product specification (only for initial

offering to the customer), free delivery, installation and

supervision during project implementation, free product

presentation and actual demo and after sales services and

product warranty/guarantee for five (5) years or more and

offer repair and replacement (for items with factory

defects).

Table 17 shows the employees’ feedback on the product

and it reveals that the employees rated items number one

(1) and two (2) with the highest mean of 4.31 while item

number five (5) got the lowest mean of 3.62. The over-all

rating is a mean of 4.10 or “SATISFIED”. From the

64

employee’s viewpoint, they were satisfied in terms of the

quality and how their products met the specifications of

the end-user’s needs and wants. However, the employees

assert that free items and accessories must be considered

and was deemed important.

Table 17. Employees Perception on the Marketing Practicesas to Product


1. The quality of the products 4.31 Satisfied2. The warranty of the products afterdelivery and use

4.31 Satisfied

3.The product orientation, instruction anddemos

4.07 Satisfied

4. The availability of the product lines 4.19 Satisfied5.Extension of free items and accessories 3.62 SatisfiedOVER-ALL 4.10 Satisfied Price. There is an on-going “price-war” among its

leading major competitors, Jhaycor Industries, Inc. and

Techno Trade Resources (Davao), Inc. To address this

concern, the Company has developed, for its low and non-

pressure pipes, the use of 100% recycled plastics from

waste to produce a more efficient drainage pipes replacing

the heavy drainage cement culverts and the open canals in

conveying irrigation water. Another product developed is

65

the low-pressure pipe for irrigation of small farms. These

have made the costs of infrastructure projects affordable

especially to small farmers at the same time putting back

to use plastic wastes, which are otherwise harmful to the

environment. The sample price list is shown in Appendix G.

Data in Table 18 illustrates that employees rated item

number one (1) to be the highest mean of 3.76 while items

number three (3) and five (5) with the lowest mean of

3.50. The survey results showed an overall rating of 3.62

mean or the employees believed that the Company’s price was

somewhat “Reasonable”.

Table 18. Employees Perception on the Marketing Practicesin terms of Price

Items Mean Description1. Product promotional pricing

3.76 Reasonable

2. Cash discounts 3.65 Reasonable3. Seasonal discounts 3.50 Reasonable4. Quantity discounts 3.69 Reasonable5. Credit lines and terms 3.50 ReasonableOVER-ALL 3.62 Reasonable

Place. The Company has maintained one office for

administrative, sales and accounting concerns and one

manufacturing plant for the production and delivery of

66

products. The wastepipes and accessories are now marketed

in various areas of Visayas and Mindanao. To market its

product, the Company uses a scheme (see Figure 9) to enable

the product to reach its high valued customers.

Figure 9. Distribution Scheme

The results on the employees’ perception on the

marketing practices of the Company in terms of place are

shown in Table 19. The employees rated items number three

(3) and two (2) with the highest mean of 3.62 while item

number five (5) with the lowest mean of 3.34. Generally,

the employees rating for their Company’s place is a mean of

3.53 or “SATISFIED” except for the parking space wherein

Sales Office Warehouse

MarketingAgents

Dealers Walk-in

Private Co./Govt. Sectors

ContractorsHard wares

Free Lance Agents

Plumbers/Individual Homeowners

67

they are somewhat moderately satisfied. The employees

believed that they were enjoying the comfort of a

ventilated area and an accessible store. But, they were

also reiterating the need for a better and wider parking

area.

Table 19. Employees Perception on the Marketing Practicesin terms of Place.

Items Mean Description1. Store lay-out 3.50 Satisfied2.Ventilation or air- conditioned

3.62 Satisfied

3. Accessibility of the store/plant

3.62 Satisfied

4. Customer amenities/lounge area

3.54 Satisfied

5. Parking area 3.34 Moderately satisfied6. Cleanliness and sanitation 3.54 SatisfiedOVER-ALL 3.53 Satisfied

Promotion. The JII promoted the company and products

intensively especially during its early years. In every

December of every year, they consistently give promotional

items to their valued customers, dealers and agents. In the

past, they even became major and minor sponsors for events

introduced by some highly valued customers. They normally

68

participate in exhibits and other activities as a chance to

promote their products and services. Recently, JII

participated in the 4-day Consumer Fair in observance of

the Consumer Month launched by the regional office of the

Department of Trade and industry (DTI)- Southern Mindanao

which was anchored on the theme “ On the healthy and Safe

Sides of Living”.

The Company gives commission to third party (plumber,

contractor and walk-in) and sales commission (marketing

supervisors and agents) to encourage sales personnel (in-

house and outsider) to excel in selling their products.

They even enticed their sales staff with a free trip abroad

as additional incentive if they meet the sales quota.

Table 20 shows the impression of the employees in

terms of the Company promotion. They evaluated item number

two (2) with the highest mean of 3.88 while item number

five (5) with the lowest mean of 1.65. The over-all rating

was 3.25 or moderately practiced. The over-all rating was

deemed affected by the employee’s observation that posters,

69

banners, flyers, telephone and internet were moderately

employed as means of promotion and television was seldom

practiced. The employees believed that salesman and

commission agents helped boost their selling activities and

television might be considered as an effective tool of

promoting the company.

Table 20. Employees Perception on the Marketing Practicesas to Promotion.


1. Direct Personal selling activities

3.85 Practiced

2. Salesman and commission agents

3.88 Practiced

3. Posters, banners, and flyers 3.31 ModeratelyPracticed

4. Radio and newspaper advertising

3.42 Practiced

5. Television 1.65 Seldom Practiced6. Telephone marketing 3.38 Moderately

Practiced7. Internet or web advertising 3.26 Moderately

PracticedOVER-ALL 3.25 Moderately

PracticedSales Performance of Jhaymarts Industries, Inc.

A sales performance is one indicator to gauge the

success of the company’s operation and this means that the

company has successfully sold its products and customers

70

have continually patronized, used or consumed the products.

Figure 11 shows the sales performance of the company for

the period covering 2000 to 2008.

Figure 10 shows a tremendous or unusual increase in

sales from the year 2003-2004. This was an election period

where various government/non-government projects were

budgeted and carried out.

Figure 10. Sales Performance from 2000-2008

Production Performance of Jhaymarts Industries, Inc.

Another good indicator for a success in company

operation is a controlled production. Production,

71

therefore, is the combined resources and equipment needed

to come up with goods or services.

The Company participated in government bidding and

sometimes, the bidding was won by competitors who offered a

lower price. Thus, in 1991, there was a significant

increase in production in anticipation of the election

period in 2003 and 2004. Based on the historical data of

the Company in prior years, the election period created a

significant and unusual increase in JII’s sales and

production.

Table 21 shows the company’s production report from

year 2001 to 2008. The production report shows the four

saleable pipes of the Company.

Table 21. Production Report 2001-2008

Year Pressurized Pressurized Storm Standard

(in meters)HDPE

(in meters)LDPE

(in meters)Drain

(in meters)

2001 907,776.11 3,650.26 186,804.262002 633,622.47 5,722.78 212,796.04 2003 688,858.51 2,223.75 211,724.89

2004 685,552.33 7,787.92 180,530.44

2005 283,102.38 16,474.87 192,546.68 87,087.50

72

2006 252,502.37 7,259.78 83,000.00 26,957.652007 139,991.57 3,183.10 69,495.25 160,037.80

2008 105,091.54 13,917.50 204,572.50 216,389.60

Profile of the Customers and Competitors

This section discussed the profile of the customers

and competitors in terms of the status of the 4 Ps of

marketing such as the product, price, place and promotion.

The data was purely dissected from the results of the

survey questionnaire presented in Appendices E-I.

Profile of the Customers. Customers were categorized

or segmented as 1.) Industrial market which includes

clients or company who are into processing or manufacturing

of goods/products for sale; 2.) Commercial market which

includes clients or company producing non-industrial

commodities or other private firm; 3.) Residential market

which includes residential and individual clients who are

mostly walk-ins, referrals and family/employee

acquaintances; 4.) Government/LGUs/NGOs market which

includes purchases from the sector of our government, local

73

government units, non profit organizations and

cooperatives; and 5.)Contractors/Plumber/Developer Market

which includes purchases from the contractors, plumbers and

those real estate developers.

Majority of the customers from all markets are users

of HDPE and LDPE pipes, storm drain, sanitary drainage pipe

and accessories like fittings, water meter, connectors and

adaptors and most of the customers have been buyers of such

for more than three years now.

Product. As revealed in Table 22, the Customers

evaluated item number one (1) with the highest mean of 4.56

while item number five (5) got the lowest mean of 4.08.

The over-all rating was a mean of 4.36 or “SATISFIED”. The

over-all result showed that generally, the customers were

“very satisfied” with the quality of the products and the

availability of the product lines. However, they were

reasonably “satisfied” with the product warranty,

insurance, product orientation/demos and with the extension

of free items and accessories.

74

Table 22. Customers Perception on the Marketing Practicesas to Product

Items Mean Description1. The quality of the products 4.56 Very Satisfied2. The warranty of the products after delivery and use

4.45 Satisfied

3. The product orientation, instruction anddemos

4.22 Satisfied

4. The availability of the product lines 4.50 Very Satisfied5. Extension of free items and accessories 4.08 SatisfiedOVER-ALL 4.36 Satisfied

Price. Table 23 shows the customers’ perceptions in

terms of price. It shows that item number five (5) got the

highest mean of 4.12 while item number three (3) has the

lowest mean of 3.53. The over-all rating was a mean of

3.95 which means that customers believed that the Company’s

price was deemed “reasonable”. The customer applied for

credit lines and was approved upon compliance with the

requirements set by the Company. This is extended to

customers who can pay their payables religiously. Seasonal

discount was seldom practiced or provided to customers.

This is offered on a case to case basis. A cash discount

75

was reiterated by some customers for possible

implementation.

Table 23. Customers Perception on the Marketing Practicesin terms of Price

Items Mean Description1. Product promotional pricing 4.06 Reasonable2. Cash discounts 4.00 Reasonable3. Seasonal discounts 3.53 Reasonable4. Quantity discounts 4.02 Reasonable5. Credit lines and terms 4.12 ReasonableOVER-ALL 3.95 Reasonable

Place. The opinion of the customers in terms of place

is shown in Table 24. The results shows that the store’s

lay out (item 1) got the highest mean of 3.95 while its

parking area (item 5) has the lowest mean of 3.40. The

over-all rating was a mean of 3.69 or the Customers

believed that they were somewhat satisfied. The customers

were satisfied with the store lay-out because the sales and

customer area were provided? and the manufacturing plant is

separate from the sales and accounting office. However,

the customer’s amenities/lounge area and parking area left

76

much to be desired; the customers were only moderately

satisfied.

Table 24. Customers Perception on the Marketing Practicesin terms of Place

Items Mean Description1. Store lay-out 3.95 Satisfied2. Ventilation or air-conditioned 3.88 Satisfied3. Accessibility of the store/plant 3.75 Satisfied4. Customer amenities/lounge area 3.43 Moderately

Satisfied5. Parking area 3.40 Moderately

Satisfied6. Cleanliness and sanitation 3.71 SatisfiedOVER-ALL 3.69 Satisfied

Promotion. Table 25 shows the impression of Customers

in terms of the Company promotion. The customers evaluated

item number one (1) with the highest mean of 3.88 while

item number five (5) got a lowest impression of 2.27 mean.

This resulted to an over-all rating of a mean of 3.34 or

moderately practiced. The over-all rating was affected by

the general opinion of the customers that salesman and

commission agents, radio, newspaper advertising, and

telemarketing were moderately practiced.

The customers assessed that the company did fairly in

its direct personal selling activities. The Company sales

77

representatives were able to reach the customers. However,

the Company can intensify its promotional campaign to reach

all sectors or its target market if they will consider

radio, television and newspaper as additional means of

promotion. The role of a salesman, commission agents and

telemarketers can be intensified.

Table 25. Customers Perception on the Marketing Practicesas to Promotion.

Items Mean Description1. Direct Personal sellingactivities

3.88 Practiced

2. Salesman and commission agents 3.48 Moderately Practiced3. Posters, banners, and flyers 3.65 Practiced4. Radio and newspaper advertising 3.25 Moderately Practiced5. Television 2.27 Seldom Practiced6. Telephone marketing 3.35 Moderately Practiced7. Internet or web advertising 3.50 PracticedOVER-ALL 3.34 Moderately Practiced

Profile of the Competitors. Competition is just a

normal and a healthy activity in almost all business

ventures. One product is created, and eventually, the same

or almost a replicate of this would also come out from a

competitors’ own creativity and design.

The company identified Jhaycors Industries Inc. and

Techno trade Resources (Davao), Inc. as its major

78

competitors’ in Davao City. The industry is highly

competitive because of the increased demand for water

consumption as water is supplied for use in homes and

industries, for irrigation, for extinguishing fires, for

street cleaning, for carrying wastes to treatment

facilities and for many other purposes.

A comparison of the products, price, place and

promotion are presented in Appendix F to I and are

interpreted below.

Product. The comparison of the product lines of the

three major players are shown in Appendix F. Comparative

study showed almost the same product lines manufactured and

produced except for Techno trade Resources, Inc. which

produced metal plas roofing, basically roofing materials.

Price. Comparison of prices is shown in Appendix G.

There is an on-going “price-war” among the leading major

competitors, Jhaycor Industries, Inc. and TecnoTrade

Resources (Davao), Inc. and with Jhaymarts Industries. Per

comparative data presented, JII showed higher prices but

79

provide and extend up to 50 % discount to all its customers

(walk-in, company accounts or individuals/residential) .

Place. The result of the comparison of the place for

distribution is presented in Appendix H. It was noted that

Jhaymarts Industries and Jhaycor Industries, Inc.

maintained one manufacturing plant and sales office only in

Davao City. Techno trade Resources, Inc. however,

maintained five branches ( in the cities of Davao, Cebu,

Makati, General Santos and Cagayan de Oro).

Promotion. The comparative data for the promotional

activities of the three leading distributors and

manufacturers of polyethylene water pipes are likely

similar in nature and is shown in Appendix I. Other

promotional activities especially for competitors of JII

were not disclosed by the leading competitors.

Future Demands for Polyethylene Pipes

The future demands depend on the probable orders or

demands of JII’s product and services from its existing and

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potential additional market. The following data outlines

concretely the future demands of polyethylene pipes of

Jhaymarts Industries, Inc. The demand is in relation to the

need to construct or install or improve a water supply

system. This demand could be met by the JII through its

main products

and services to probable customers at a reasonable

price without

sacrificing the quality of their products.

The National Irrigation Administration (NIA)

The National Irrigation Administration cited the

status of irrigation development as of December 2007 as

disclosed in Table 26. As shown, the Philippines has total

irrigable area of 3,126,340 hectares and available

irrigable area of 1,691,743 hectares 54.10%. The remaining

45.9% represents the irrigated area or hectares used by

national, communal and private. The available irrigable

area suggests probable projects that JII can bid for and

undertake because of its products and services.

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Table 26. Status of Irrigation System

Breakdown of TotalIrrigable Area

Location

Total Irrigabl

eArea

(hectares)

Available

Irrigable

Area

ServiceNational

AreaCommunal Privat

e

%of Devt

Phils. 3,126,340 1,691,743

706,377 554,020 174,200 45.90

Luzon 1,834,950 862,642

457,117 373,854 141,337 52.90

Visayas 332,370 172,160

76,178 71,528 12,504

48.20

Mindanao 959,020 656,941

173,082 108,638 20,359

31.50

Southern-XI

149,610 93,867

32,161 15,639 7,943

37.20

Proposed Projects of Local Water UtilitiesAdministration (LWUA) for 2010 Onwards

The company operation is limited to areas in the

Visayas and Mindanao. It is eyeing the possibility of

expanding its services to include Luzon and the global

markets. This is because there are more players in the said

markets and freight cost is pre-arranged to be free.

However, JII is still in the process of evaluating the

merits of expanding in the Luzon area.

82

The LGUs were encouraged to form utilities called

Water Districts. This would operate with a certain degree

of autonomy from LGUs. They would receive technical

assistance and financial support from the newly created

LWUA. Furthermore, the LWUA issued a report that as of

2007, there were 598 total number of water districts formed

in the Philippines since 1973. LWUA continues to assist

all the water districts in the Philippines and continues to

undertake local community water system projects in 2010

onwards.

As shown in Table 27 and as assessed and evaluated,

there is a future demand for polyethylene pipes on these

proposed LWUA projects and the Company has a chance to

acquire these projects either by partnering with the

contractors who will join the bidding program of LWUA or by

participating in the biddings for the proposed projects.

It’s proposed projects are now located in various

areas in the Philippines especially in the 40 towns of ARMM

which need assistance for its water system and in Luzon

83

areas specifically in Lubao, Pampanga, Gamay, Northern

Samar, Morong, Rizal, Tanay Rizal and Teresa Rizal.

Table 27. LWUA Proposed Projects

Areas Projects Amount

40 towns of the Autonomous regionof Muslim Mindanao (ARMM)

Mobilizing its resources to develop potable water supply system in the remaining area that are still without a modern water system

PhP 20 Million

Lubao, Pampanga Water supply improvement project to provide water to anadditional 1,800 residents of the coastal barangays.

6.7 Million

Gamay Water District in Gamay, Northern Samar

Design and Construction of Water Supply Project – Pipelines and other related works and spring source improvement and disinfection

7.5 Million

Morong Water District , MorongRizal

Design and Construction of Water Supply System Project- Deep well, Pipelines, ElevatedSteed Tank and other Related works

8.4 Million

Teresa Water District, Teresa,Rizal

Design-Build for Teresa Water District- design and construction of Water Supply Project

7.5 Million

The Existing Water System in Davao City.

84

As shown in Table 28, the existing water system in

Davao City is composed of the Districts and Barangays of

Davao City that need an improved water system (Davao City

Planning and Development Office, 2008). Davao City water

users are now categorized as using water supply as levels

I, II and III (see Table 28). There are residents and areas

where piped water supply with private water point are not

available especially in areas like Talomo district, Bunawan

District, Toril District and Tugbok District (DCWD

Corporate Planning 2009).

From available data from DCWD, Table 28 shows existing

water system per district and each district is composed of

barangays.

Table 28. The Existing Water system in Davao City

Districts Level 1 Level 2 Level III

Talomo 105 3 14Poblacion - - 40Agdao - - 11Buhangin 26 17 6Bunawan 44 13 2Paquibato 3 27 -Baguio 2 13 2Calinan 15 34 4

85

Marilog 3 34 1Toril 128 45 5Tugbok 19 30 9Total 345 216 94

Legend: Level I - stand-alone water points, e.g., hand pumps,shallow wells rainwater collectors

Level II - piped water with a communal water point, e.g.,bore well, spring system

Level III - piped water supply with a private waterpoint, .e.g., house connections

Proposed Project and Program Under the LocalDevelopment Investment Plan Covering 2008-2010 and Embodiedin the Davao City Comprehensive Development Plan of 1996-2021.

Table 29 shows the proposed projects under the local

development investment plan covering the 2008-2010 with the

trusts and priorities embodied in the Davao City

Comprehensive Development Plan from 1996-2021 which covers

the city departments, barangay council, concerned national

line agencies and the members of the City Council (LDIP

2008-2021).

It was disclosed that out of the total project cost of

Php 1,391,882,000, there is a Php 1,165,822,000 Million

http://en.wikipedia.org/wiki/Hand_pump

86

projects worth of which the Company or JII could

potentially offer its services and could sell its main

products such as the polyethylene plastic pipes and storm

drain. The Company can only extend its services and offer

its products for projects such as construction,

development of water system and water pipeline,

installation of free flowing water system and installation

of storm drain and culverts. However, if it would

participate in the bidding program of the government or

local government units, they prefer to produce quality

standard of products to be quoted at reasonable price.

Table 29 shows the total LDIP proposed projects and cost

involved during the period 2008 to 2010.

Table 29. LDIP Proposed Projects 2008-2010

Projects/Programs District

Total Cost (Php)

Project Cost

Construction of water reservoir,proposed drilling, pipeline andinstallation of pump

1 207,034,000

-

Drilling of water system, constructionof water system, rehabilitation of thepipelines and surface type of reservoir,stand post and pipelines, completion ofdeep well, artesian well, improvement ofwater system

2 257,098,000

253,285,000

87

Improvement of water system,installation of culverts, constructionof water system/water tank, constructionof artesian well, construction ofoverhead tank, installation ofreservoir, rehabilitation of watersource, construction of an elevatedreservoir, etc.

3 927,751,000 912,537,000

Grand Total 1,391,882,000

1,165,822,000

Growth Opportunities of Jhaymarts Industries, Inc.

Brunner (2006) disclosed that the successful

development of innovative products (goods, services, or

programs) that enable growth and create market

opportunities requires that products meet the needs of

customers. This also involves finding attractive target

markets and with emphasis on finding breakthrough

opportunities that helps innovators develop marketing

strategies that will be very profitable for a long time.

Sometimes, a firm can achieve it through a totally new

approach in solving problems (Mc Carthy, 1996).

The need for water pipes continues to exist as long as

there is a demand from users or buyers and JII will

88

continue manufacturing or producing for these valued

reasons.

The growth opportunities of the Company are discussed

in terms of customer segmentation, product diversification

and marketing strategies.

Customers’ Segmentation. The Company by means of

trying to increase sales and production has the option to

sell its present products in a new market or continue

selling its present products in its present market through

a more aggressive marketing mix. The company has been able

to capture all possible markets in the business sector. The

existing customers of the Company are now segmented in the

Profile of the Customers and in Appendix E.

The data gathered does not automatically indicate that

the entire population or prospective customers will become

the customers of Jhaymarts Industries, Inc. This will

depend on successful business proposals to the customers or

market.

89

Table 30 shows a projection on the probable increase

of customers from Residential/Individual market in the

future years. It shows the increase in the Philippine

population from year 1995 to 2025. From 1995 to 2007, the

population has continuously increased from 68.6 million in

1995 to 76.5 million in 2000 and 88.5 million in 2007.

Given the annual population growth rate in the country, the

NSO has projected an increase of 90 million in 2010, 105

million in 2015, 110 million in 2020 and 120 million in

2025.

Table 30. Philippine Population from 1995 to 2025.

Philippines Actual Population Projected PopulationYear 1995 2000 2007 2010 2015 2020 2025Population (in

million)

68.6 76.5 88.5 90 110 115 120

Table 31 shows the 2000 Census survey on the status of

water supply in the three main islands of the Philippines

in terms of the number of households by main source of

water supply for drinking and cooking. The data implies

that there are still households who have yet to enjoy the

90

convenience of a community water system and rely on other

sources of water supply. These households belong to both

the residential and individual markets.

The data shows the sources of water supply in the

three main islands of the Philippines such as Luzon,

Visayas and Mindanao.

Table 31. Distribution of Households by Main Source of

Water Supply

Sources of WaterSupply

Luzon Visayas Mindanao Total

Own use faucet,

community water

system

2,892,722

542,108 740,969 4,175,799

Shared faucet,

community water

system

1,527,863 686,454 735,743 2,950,060

Own use tubed/piped

deep well 1,022,593 175,239 191,841 1,389,673Shared tubed/ piped

deep well 1,402,010 550,622 452,873 2,405,505Tubed/piped shallow

well 681,563 194,095 222,894 1,098,552

Dug well 442,853 425,399 341,067 1,209,319

Spring, lake,

river, rain, etc. 319,618 339,228 691,871 1,350,717

Peddler 244,963 69,408 34,265 348,636

91

Bottled water 44,42

4

7,710 3,065 55,199

Others 143,194 80,509 67,883 291,586

TOTAL 8,721,803 3,070,772 3,482,471 15,275,04

6

Table 32 shows the total number of registered domestic

corporations and partnerships from year 1992 to 2007. The

Board of Investment (BOI) reported that from 1992-1997,

the amount of initial capital investment of newly

registered entities amounted to P 7.6 Million pesos while

the amount of registered equity investments in foreign

equity investments totaled to P 25.6 Million pesos. This

could open opportunities to increase JII’s share in the

Industrial, Contractors /Plumber or Developer or Commercial

Markets.

Table 32. Number of Registered Domestic Corporations andPartnerships

Area 1992-1995 1996-2000 2001-2005 2006 2007Luzon 50,916 64,054 46,097 12,461 13,966Visayas 3,456 6,021 2,85

0 48

8 243

Mindanao 1,282 3,670 2,672

86

188

92

Region XI 408 1,976 1,892

32

58

Philippines 55,654 73,745 38,937 13,035 14,397

Table 33 presents the water production of water

districts in the country’s three main islands. As shown,

Luzon area has the highest water produced at 195,282,824

cubic meters with a share of 52.38% followed by Mindanao at

99,892,385 cubic meters or 26.02% and Visayas at 77,630,789

or 20.82%. Luzon’s rank as the highest in water production

could interest JII since it has yet to penetrate the Luzon

market. This sector will belong to Government/LGUS/NGOs

market

Table 33. Production of Water Districts

Location Water Produced(in thousand cubic

meters)

Percentage toTotal

Luzon 195,282,824 52.38%Visayas 77,630,789 20.82Mindanao 99,892,385 26.80Philippines

372,805,998 100.00

Table 34 shows the 2007-2008 historical production and

consumption of the Davao City Water District (DCWD), one of

93

JII’s current customers from the Government/LGUS/NGOs

market.

Table 34. Production and Consumption of DCWD Clientele.

(In cubic meter) 2008 2007Production 79,206,193 77,857,219Consumption 56,663,464 53,971,679% Consumption toProduction

71.54% 69.32%

An increasing trend in the total number of connections

of consumer of DCWD clientele during 2003 to 2008 period is

shown in Table 35. This implies an increase in the

potential amount of products and services which JII can

offer to the DCWD.

Table 35. Total Number of Connections of DCWD

Number ofConnections

Domestic Commercial Industrial Others Total

2003 132,987 5,089 343 17 138,436

2004 137,569 5,163 359 21 143,112

2005 141,821 5,209 568 20 147,618

2006 145,233 5,215 591 17 151,0562007 150,320 5,331 587 12 156,2502008 152,561 5,385 613 12 158,571Total 860,491 31,392 3,061 99 895,043

Source: DCWD Corporate Planning, 2009

94

Product Diversification. The Company can resort to a

more aggressive marketing mix to improve its financial

performance and operation. They can either resort to

product development through which the Company can offer new

or improved products for its present market or come-up with

a product diversification which means shifting to an

entirely different line of business, or products.

The Company aims to provide the highest standard of

products and services in the field of water conveyance and

to ensure new and existing developments in water system

through research of technological innovations so as to

respond to the changing world. For these, they opted to

concentrate on this type of product than venture to a

totally different line of business like the manufacture of

plastic home wares and roofing materials. The Company’s

direction is concentrated more on product development

rather than product diversification in its bid to be known

95

as a specialist or expert in providing and improving water

systems.

Marketing Strategies. Favorable market and competitive

conditions clearly enhance market performance but these

factors do not explain why some firm’s marketing strategies

are successful and others are not. Successful strategy

choices are guided by the evaluation of market structure

and growth rates, the difference in the needs of buyers,

the structure and intensity of competition, the

organization’s skills and resources and other important

situational factors. For effective marketing strategies,

the company has to consider the following:

Market Analysis and Market Segmentation. A better

perspective can help the Company analyze and identify

customer groups as to their different needs. They can

effectively guide their customers by intensifying its

product awareness program like launching a campaign through

newspaper, television and radio for a safe water system

through the use of polyethylene pipes. A segmentation

96

analysis allows them to identify markets where they can

offer volume discounts at a reasonable price without

sacrificing the quality of their products. The

government/LGUS/NGOs and cooperative markets relies only on

budget allocation and may purchase their products at a

lower price but JII can counter offer volume purchase since

this group is noted for huge purchases because of the scope

of its projects - it could be both local and national.

They can also intensify their linkage with the group of

contractors, plumbers and developers. They can provide more

technical support to this market which has a wider scope of

linkage with other markets or sectors in the community and

has a greater chance to penetrate community projects.

Industry Structure, Competition and Competitive

Advantage. The Company understands the structure of the

water system industry and its competitors because they are

the pioneer manufacturer in Mindanao. There is an on-going

price war in the market which had driven some customers to

shift to its competitors because of price difference.

97

However, the Company’s image as a producer of a high

quality product coupled with an intensive campaign on

product safety could influence the customers’ preference

for quality over price. What the Company can do is resort

to a competitive advantage by offering superior value to

customers through (1) producing standard products in

accordance with the customers’ specification at a price

competitive to their competitors and/or (2) unique

benefits that could more than offset a higher price like

extension of a longer warranty period or a 30-day money

back guarantee and a guaranteed 24-hour on-site service.

Market Positioning Strategies. The Company must be

able to know which customers to target and what their

specific needs are. This means that each market segment has

a unique and different needs to address thus, the Company

must provide a different approach and employ distinct

marketing positioning strategies for each market. It needs

to select a positioning strategy for the 4 Ps (product,

price, place and promotion) for what is more appealing to

98

each group of targeted buyers. There is a need to introduce

different strokes for different market segment.

Rapid Growth Approach. Reducing or rapidly expanding

the number of employees of a company or business units

while retaining the existing product mix and market scope

is one form of strategic response. This change affects the

size of the organization. At present, there are more or

less 493 existing clients against seven (7) sales office

/field representatives. This means that each

representative attends to 70 clients inclusive of out-of-

town clients. Also, the Company might consider opening up

sales or satellite office in hot key areas like Cagayan de

Oro City, Zamboanga City, General Santos City and one in

Visayas to speed up its delivery and after-sales services

to clients. With this response, there will be a need to

hire or increase additional employees for quick and better

services to its existing and upcoming clients.

Changing Market Scope. This situation involves

changing market focus using the same product mix.

99

Illustrative actions include expanding into new

international market or altering domestic geographic scope

and targeting new customer groups. At present, its market

is limited to the Visayas and Mindanao. The Company might

opt to open a manufacturing plant and a sales office in

Luzon so as not to lose the potential market in that area

and to minimize freight cost and other related expenses.

Chapter 5

SUMMARY, CONCLUSIONS AND RECOMMENDATION

This chapter presents the summary of findings, the

conclusions drawn and the recommendations formulated by the

researcher.

Summary

This study was primarily conducted to identify the

growth opportunities for JII that will contribute to its

100

sales and production growth knowing its pursuit of serving

the customers, the community and the society with the

highest standard.

Specifically, the study was conducted to determine

the (1) company status in terms of the articulation of

vision and mission, organizational structure, human

resources and product lines; the marketing practices

adapted and the sales and production performance, (2)

the profile of JII’s competitors and customers, and (3)

the future demands for the polyethylene pipes.

The study employed the descriptive-evaluative research

method to describe the status of events, people or subjects

as they exist and the descriptive-survey research method

which to describe the current or prevailing conditions,

opinions, attitudes, impressions, perceptions of a group of

people or description of objects.

The general findins of the study are discussed as

follows:

101

Status of Jhaymarts Industries.

Articulation of Vision, Mission, OrganizationalStructure, Human Resources and Product Lines

In terms of the employee’s perception on the Company

Vision, Mission, Organizational structure, Human resources,

and Product lines the employees rated it as “AGREE”.

Majority of the employees believed that the Company Vision

and Mission clearly reflect the current status of the

organization, its long-term goal and direction, its

fundamental purpose and contribution in the community and

society. For them, the underlying policies, governing rules

and regulations in handling its human resources was clearly

defined. More so, they generally agreed that the product

lines of the Company represent the whole range of products

marketed by the Company to its customers.

A significant number of employees agreed on the

importance of a well- understood organizational structure,

the intervention and direction of a human resource group

and product lines orientation and updates. However, there

102

were some employees who need a visible picture to

understand and internalize fully the Company and product

profile. These employees believed that they still need a

re-introduction to and re-briefing on the vision and

mission statement of the Company.

Marketing Practices Employed by JII in terms ofProduct, Price, Place and Promotion as evaluated by theEmployees and Customers

The Marketing Practices employed by Jhaymarts

Industries, Inc. were generally evaluated by employees and

customers as “ Satisfied” as to products, “Reasonable” as

to price, “ Satisfied” as to Place, “ Moderately Practiced”

as to promotion.

Majority of the employees were satisfied in terms of

how their products met the specifications of the end-user’s

needs and wants. On the other hand, customers from the

Industrial, Residential/Individuals and

Contractors/Developers markets strongly assert that product

103

quality and after sales services were more important and

essential for them to continue their patronage of the

Company’s products and services.

Commercial and Government/LGUs/NGOs however, consider

Pricing as far more important to continue buying from the

Company. Hardwares, in particular, need competitive prices

so that they could sell the products at a profit. On the

other hand, the Government and LGUs market was very

particular on price since in government projects, contracts

are awarded to the lowest bidder.

General observation showed that both the employees and

customers were “moderately satisfied” with the company’s

parking area and customer/lounge area.

The over-all rating with regards to the promotion was

deemed affected by the employees’ observation that posters,

banners, flyers, television, telephone and internet were

moderately employed as means of promotion. The general

opinion of the customers was affected by the fact that

salesman and commission agents, radio, newspaper

104

advertising, and telemarketing were moderately practiced

and television was seldom practiced.

Sales and Production Performance of JhaymartsIndustries, Inc. for the period covering 2000-2008.

There was a tremendous increase in sales and

production from the year 2003 to 2004. This was an election

period where various government and non-government projects

were implemented. Based on the historical data of the

Company in prior years, election period usually results to

significant and unusual increase in sales and production.

Profile of the Customers

The Company’s identified major competitors in Davao

City are Jhaycors Industries Inc. and Techno trade

Resources (Davao), Inc. The industry in highly competitive

because of the increased demand for water consumption as

water is supplied for use in homes and industries, for

irrigation, for extinguishing fires, for street cleaning,

105

for carrying wastes to treatment facilities and for many

other purposes.

The comparison of the Product lines of the three major

players showed almost the same product lines manufactured

and produced except for Techno trade Resources, Inc. which

produced metal plas roofing, basically roofing materials.

The comparison of Prices noted the on-going “price-

war” among the leading major competitors, Jhaycor

Industries, Inc. and TecnoTrade Resources (Davao), Inc. and

with Jhaymarts Industries. Per comparative data presented,

JII showed the highest prices but provide and extend up to

50 % discount to all its customers (walk-in, company

accounts or individuals/residential) .

The results of the comparison of the place for

distribution noted that both Jhaymarts Industries and

Jhaycor Industries, Inc. maintained one manufacturing plant

and sales office only in Davao City. Techno Trade

Resources Inc. however, maintained five branches namely in

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the cities of Davao, Cebu, Makati, General Santos and

Cagayan de Oro.

The comparative data for the promotional activities of

the three leading distributor and manufacturers of

polyethylene water pipes were similar in nature. However,

other promotional activities, especially for competitors of

JII, were not disclosed by the JII’s competitors.

Future Demands of Polyethylene Water Pipes.

The need for water pipes continues to exist as long as

there is demand from water users. The Company will continue

manufacturing and producing polyethylene pipes as long as

there is a demand to produce it. The study revealed real

future demands of polyethylene pipes and other product

lines of Jhaymarts Industries, Inc. The demand is in

relation to the need to construct or install or improve a

water supply system which gives JII the opportunity to

offer its main products and services to probable customers

at a reasonable price without sacrificing the quality of

their products. The future demand comes from the following:

107

The National Irrigation Administration cited the

status of irrigation development in the Philippines which

has a total available irrigable area of 1,691,743 hectares.

The available irrigable area suggests of probable projects

that JII can undertake and enter into a bidding program and

which JII products and services can also be offered.

LWUA issued a report that as of 2007, there were 598

total number of water districts formed in the Philippines

since 1973. As assessed and evaluated, there is a future

demands of polyethylene pipes on these proposed LWUA

projects and the Company has a chance to get these projects

either by partnering with the contractors who will join the

bidding program of LWUA or the Company can voluntarily

engaged in the bidding program.

The existing water system in Davao City is composed of

the Districts and Barangays of Davao City in need of an

improved water system. There are residents and areas where

piped water supply with private water point has yet to

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reach especially in areas like Talomo district, Bunawan

District, Toril District and Tugbok District.

The study reveals that there are proposed projects

under the LDIP covering the 2008-2010 with the thrusts and

priorities embodied in the Davao City Comprehensive

Development Plan from 1996-2021. This data disclosed that

out of the total project cost of P1. 4 Million, there is a

P 1.16 Million worth of projects which the Company could

offer its services such as installation, improvement and

rehabilitation of water system, construction of water

pipeline, installation of free flowing water system and

installation of storm drain and culverts. Also, the Company

could sell its main products such as the polyethylene

plastic pipes and storm drain.

Growth Opportunities of Jhaymarts Industries, Inc.

The study assessed and evaluated that there is a

growth opportunity for Jhaymarts Industries Inc. as

manifested in the results of the research study.

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Customers’ Segmentation. Based on the data gathered,

there is a probable increase of customers from

Residential/Individual market in the coming years based on

the increasing trend of population from year 1995 to 2025.

The actual population count reveals 68.6 Million in 1995,

76.5 Million in 2000 and 88.5Million in 2007. The projected

population of the Philippines by the year 2010 to 2025 are

90 Million in 2010, 105 Million in 2015, 110 Million in

2020 and 120 Million in 2025.

The latest Census survey on the status of water supply

in the Philippines reveals that there are still households

who have yet to enjoy the community water system and still

rely on other means. Based on actual survey, there are 5.9

Million households who are still using tubed/piped deep

well and around 2 Million who are using other source of

water supply such as dug well, spring, lake, river, rain ,

peddler and bottled water. These households belong to the

residential and individual market.

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The study shows that the total number of registered

domestic corporations and partnerships from year 1992 to

2007 is around 196,038. This may contribute to the increase

of market share under Industrial market, Contractors

/Plumber or Developer Market or Commercial Market of JII.

Further more, the study disclosed that water

production of water districts and data revealed that Luzon

area has the highest water produced at 195,282,824 cubic

meters with a share of 52.38% while Mindanao is the second

with 99,892,385 cubic meters or 26.02% and Visayas is last

in water production with 77,630,789 or 20.82%. The bulk of

the Luzon market consists of Government/LGUS/NGOs market.

Also, the study reveals the increasing production (77

Million cubic meters in 2007 to 79 Million cubic meters in

2008) and increasing consumption (53 Million cubic meters

in 2007 to 56 Million cubic meters in 2008) of DCWD. There

is a reported increasing trend of the total number of

connections of consumer of DCWD clientele from 2003 to 2008

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which totals to 895,043 connections. DCWD is a current

customer of JII under the Government/LGUS/NGOs market.

Product Diversification. The Company can resort to a

more aggressive marketing mix to improve its over-all

performance and operation. The Company aims to provide the

highest standard of products and services in the field of

water conveyance and to ensure new and existing

developments in water system through research of

technological innovations so as to respond to the changing

world. For these, they opted to concentrate on this type of

product than venture to a totally different line of

business like manufacturing of plastic home wares and

roofing materials. The Company’s direction is to be known

as a specialist or expert in providing and improving water

systems.

Marketing Strategies. A better perspective can help

the Company analyze and identify customer groups as to

their different needs. Each market segment has unique and

different needs to address thus, the Company must provide

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different approach and marketing positioning strategies for

each market.

They can effectively guide their customers by

intensifying the product awareness program. A segmentation

analysis allows them to identify markets where they can

offer volume discounts at a reasonable price without

sacrificing the quality of their products.

To address the on-going “price-war “ issue among

competitors, the Company can resort to a competitive

advantage by offering superior value to customers through

(1) producing standard products per customers specification

at a price competitive to their competitors and/or (2)

unique benefits that more than offset a higher price.

Reducing or rapidly expanding the number of employees

of a company or business units while retaining the existing

product mix and market scope is one form of strategic

response. This change affects the size of the organization.

With this response, there will be a need to hire or

increase the number of employees for quick and better

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services to its existing and upcoming clients if they would

like to add satellite offices in hot key areas.

The Company could consider changing its market focus

using the same product mix. Illustrative actions include

expanding into a new international market or altering

domestic geographic scope and targeting new customer

groups. At present, the market is limited to the Visayas

and Mindanao. The company might opt to open a manufacturing

plant and a sales office in Luzon so not to lose potential

market in that area and to minimize freight cost and other

related expenses.

Conclusions

Based on the foregoing findings, the following

conclusions were drawn:

The water pipe industry is highly competitive because

there is an increasing demand for water consumption as

water is supplied for use in homes and industries, for

irrigation, for extinguishing fires, for street cleaning

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wastes to treatment facilities and for many other purposes.

This demand for water consumption is very much influenced

by the (1) increasing number of water-end or market users

identified as the industrial market,

residential/individuals market,

government/LGUs/NGOs/cooperative market and

contractors/plumbers/developer market and (2) the

increasing number of proposed and approved projects,

programs and activities geared towards the development and

improvement of water system in national and local

communities.

There are growth opportunities for Jhaymarts

Industries, Inc. as there is a real future demand for

polyethylene pipes and other products of the Company. The

assessment of the status of the company and its customers

and competitors disclosed a very informative and

substantial data so the Company can conclude that these are

important variables to consider and determine that indeed

they have growth opportunities. These opportunities are in

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terms of customer segmentation, not in product

diversification but more in product development or

improvement, and intensifying their marketing strategies to

achieve the Company’s goal and objectives as expressed in

its Vision and Mission.

Recommendations

Given the foregoing findings, the researcher

recommends the following:

Vision-Mission, Organizational Structure, Human

Resources and Product Lines. The management is considered

as the guide and inspiration of the employees to share in

the vision-mission of the Company. The employees must

observe within the working area and in the actions of top

management where the Company wants to go and what it wants

to happen. The need to re-echo and re-orient the employees

of the Vision-Mission would let them know the direction of

the Company in fulfilling its short and long term goals.

Thus, it is highly recommended that twice-a-year, a seminar

116

workshop or update report which will include the Company

profile (vision-mission, organizational structure, human

resource guidelines) and Product orientation be conducted.

Marketing Practices

Product. Product awareness or product knowledge is

very important to prospective and valued existing clients.

It attracts the interest of more potential clients. To

increase client base, a product awareness activity is

suggested to management. It could either be pre-conducted

to prospective companies during their in-house activities,

to schools, through an advertisement (in cinemas or radio)

or sponsorship of socio-economic and environmental related

activities of the clients especially in the sectors of

government, LGU’s, NGOs, cooperatives and high valued

private firms. An after-sales services and technical

assistance to the product installation is very important to

ensure the loyalty of the customers because this is the

Company’s chance to bond with customers’ key personnel and

show how good their products and services are.

117

Price. Since there is an on-going “price-war” in the

market and some customers dive-in the competitors offer, a

quantity discount with promotional items can be offered. If

the company cannot compete in the on-going “price-war”

because of “product quality” issue or adherence to “ISO

quality standard ” , then the sales representative can

push the “quantity discount” scheme or can extend longer

credit terms (i.e. two or three months to pay).

Place. Some customers prefer a relaxing customer

amenities/lounge area where they are entertained while

waiting to be served. A good couch, a television and radio,

and magazine or book stand will please them. A wider

parking area suits the well-to-do officers and highly

valued clients. This kind of comfort would make them love

to come back and visit the store room. The management

could consider the possibility of looking for a wider and

bigger office.

Promotion. All products are good and some are better;

however, there are client who prefer excitement in the

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decision to buy because of promotional items and

activities. Some respondents complain of not receiving any

product and price list updates and not being visited by a

Company sales representative. A once-a-month ocular visit

to Davao based or out-of-town clients is suggested . There

are some clients who are enticed if client call or ocular

visit is made so they can freely express their desires and

wants. The Company must allocate a budget for quarterly

advertising through radio and television to increase

product awareness.

Production Performance. A suggestion is addressed to

top management to upgrade its machines. In addition to

current product lines, the upgrading would enable the

Company to manufacture or process new products that could

be aligned to existing products.

Sales Performance. At present, the market is limited

to the Visayas and Mindanao;the management can undertake to

set up sales or satellite offices in hot keys areas or

cities in Mindanao and Visayas to speed up its delivery and

119

after-sales services to clients and to minimize expenses

involved in administration, transportation, delivery and

promotion. If the management is already financially ready,

it can increase its capital requirement by (1) bank

borrowing or (2) additional capital inflow from the Company

stockholders (3) look for more stockholders preferably

those that match the business operation like construction

supplier, housing developers or the like. If this happens,

it is also recommended that they open a manufacturing plant

and a sales office in Luzon so not to lose their

potential market and to minimize their freight cost and

other operating expenses. There is a need to expand and

widen the scope of operation and a need to increase its

financial resources to carry out all of these plans. There

are several projects and programs supported by LWUA and

both private/public water districts which JII’s products

could supply and could compete.

Future demands and Growth Opportunity. The future of

the polyethylene pipes industry promises the manufacturers

120

and producers of the product great and high hopes. Thus,

there will be more consumption of water from residential,

commercial, industrial, government/NGOs/LGUs/cooperative

and contractors/ developers/plumbers markets. These sectors

in our society are the probable clients for the

polyethylene pipes. The LWUA and the water districts in the

whole archipelago reported a significant increase of water

production, consumption and water connections and the

National Irrigation Administration reported a potential

irrigable area. Therefore, water distribution from urban to

rural areas is expected to increase.

As noted further, there are still areas in Luzon,

Visayas and Mindanao where the source of water supply is by

means of shallow/ dug well, spring, lake, river, and

peddler. There are various projects and projects supported

by LWUA, Davao City Comprehensive Development Plan and

various water districts which the Company can strongly

intensify and increase its involvement and linkages either

by direct or indirect affiliations with the Contractors,

121

Plumber and Developers market and with the national and

local government and non-governmental sectors.

More so, the Company must now focus in intensifying

its growth opportunities in terms of customer segmentation,

product development or improvement, and marketing

strategies to achieve the Company’s goal and objectives as

expressed in its Vision and Mission.

The above-mentioned are suggestions that are geared

towards an increase in sales and production through the

strengthening and improvement of the four (4) marketing Ps

of the Company. However, such suggestions are not mandatory

and the final decision of the top management still

prevails. At present, the top management decided not to

distribute and participate in foreign and Luzon markets due

to the high costs involved in freight and handling or

delivery of the products which are pre-negotiated by the

customers as free. While there are more competitors in that

area, the top management is confident that they are

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producing high standard and high quality products which has

been proven by award and recognition from Europe.

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130

APPENDIX A

Letter for the Finance Manager

June 25, 2009

Mrs. Janet Q. EstepaFinance ManagerJhaymarts Industries, Inc.Matina, Davao City

Dear Madame;

Greetings!

This is to seek your approval regarding my thesis project as thefinal requirement to comply the masters in businessadministration program of University of Southeastern Philippines(USEP).

I have decided to choose your Company as my understudy whichwill focus on the growth opportunities of Jhaymarts Industriesto boost your marketing aspect.

In the course of my research, I will be conducting an interviewto some of the officers and staff and visit your office andmanufacturing area. The research will also involve gathering ofdata, information and materials pertinent to complete thethesis. Also, a survey form will be used as a tool to obtainpertinent information from your employees and customers.

Rest assured whatever data that we will obtain from your officeand customers will be handled carefully and professionally.

Your outmost support is needed.

131

Thank you very much.

(SIGNED)REVELYN S. TOMAS

APPENDIXB

Survey Questionnaire(For Jhaymarts Industries, Inc. Employees)

Dear Respondents,

The researcher is a candidate for Masters of BusinessAdministration (MBA) at the University of SoutheasternPhilippines (USEP). And a study is conducted that focused on themarketing and sales performance of your company. On this light,I would like to respectfully ask your cooperation by answeringthe attached questionnaire. Rest assured, all data that will begathered will be handled carefully and professionally. Thank youfor your outmost support and understanding.

Sincerely yours,

Revelyn S. Tomas, CPAMBA StudentUSEP

132

Name of the Employee :_________________________________________Department :_________________________________________

PART I. ARTICULATION OF VISION, MISSION, ORGANIZATIONALSTRUCTURE, HUMAN RESOURCES

Direction: The purpose of this questionnaire is to know theStatus of Jhaymarts Industries in terms of the Articulation ofVision and Mission Statement, Organizational Structure; Humanresources and product lines. Please check the number whichcorresponds to the number below and indicate how strongly eachapplies to you. Please don’t leave any item unanswered.

5 – strongly agree 4- agree 3- uncertain 2- disagree 1- strongly disagree

VISIONQuestions

54 3 2 1

1.The vision statement is clear andunderstandable to all employees2. The vision clearly pictures the currentstatus of the organization 3. The vision serves to point the directionwhere the organization wishes to go4. The vision of the company is a very clearguide to achieve the company long-term goal5. The vision is articulating the dreams andhope for the business and what the managementis trying to build.

133

MISSIONQuestions

54 3 2 1

1. The mission statement is made know to allemployees as a guide why the company exist2. The mission is concerned on the overall aimof the company3. The mission articulates the company’spurpose both for the organization and for thepublic4. The mission statement best describes thecompany’s present capabilities, customer focus

ORGANIZATIONAL STRUCTURE

5 – strongly agree 4- agree 3- uncertain 2- disagree 1- strongly disagree

Questions 5

4 3 2 1

1. The organization structure of the company isvisible at the operation area2. The organization structure is made known oris clear to all employees3. The organization structure is understood byall employees that there is a need of divisionof works and individuals can become specialistat a specific job4. The organization structure is understood as aplan for the systematic arrangement of work.That an organization is comprised of functions,relationships, responsibilities, authorities,and communications of individuals within eachdepartmentHUMAN RESOURCES

134

5- strongly agree 4- agree 3- uncertain 2- disagree 1- strongly disagree

Questions 5

4 3 2 1

1. The company policies and rules are madeknown to all employees. A handbook isdistributed to all employees 2. The company conducts regular meeting to allemployees to discuss all problems related tohuman resources3. The company updates all employees regardingthe company activities and long-term plans4. The company is open to open-negotiation toall employees and to its respectiverepresentatives

PRODUCT LINES 5- strongly agree 4- agree 3- uncertain 2- disagree 1- strongly disagree

Questions 5

4 3 2 1

1. The company provides continuous market demandfor the product2. The company is open and implements to productinnovation3. The company maintains availability of allproduct lines4. The company solicits product demands fromcustomers5. The company sells units based on customers’

135

demand6. The company provides customer variety ofchoices for the products

PART II. MARKETING PRACTICES

Direction: Listed below is the Marketing Practices of Jhaymart’sIndustries, Inc. Rate the company as to the quality of thefollowing according to the numerical scale and verbalinterpretation:

AS TO PRODUCT 5- very satisfied 4- satisfied 3- moderately satisfied 2- unsatisfied 1- very unsatisfied

Questions 5

4 3 2 1

1. The quality of the products2. The warranty of the products after deliveryand use3. The product orientation, instruction anddemos4. The availability of the product lines5. Extension of free items and accessories

AS TO PRICE 5- very reasonable 4- reasonable 3- moderately reasonable 2- unreasonable 1- very unreasonable

Questions 5

4 3 2 1

136

1. Product promotional pricing2. Cash discounts3. Seasonal discounts4. Quantity discounts5. Credit lines and terms

AS TO PLACE 5- very satisfied 4 - satisfied 3- moderately satisfied 2- unsatisfied 1- very unsatisfied

Questions 5

4 3 2 1

1. Store lay-out2. Ventilation or air-conditioned3. Accessibility of the store/plant4. Customer amenities/lounge area5. Parking area6. Cleanliness and sanitation

AS TO PROMOTION 5- highly practiced 4- practiced 3- moderately practiced 2- seldom practiced 3- never practiced

Questions 5

4 3 2 1

1. Direct Personal selling activities2. salesman and commission agents3. posters, banners, and flyers4. radio and newspaper advertising5. television

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6. telephone marketing7. internet or web advertising

Thank you for your outmost support and cooperation!

APPENDIXC

Survey Questionnaire(For Jhaymarts Industries, Inc.-Customers)

138

Dear Respondents,

The researcher is a candidate for Masters of BusinessAdministration (MBA) at the University of SoutheasternPhilippines (USEP). And a study is conducted that focused on themarketing and sales performance of Jhaymarts Industries, Inc. Onthis light, I would like to respectfully ask your cooperation byanswering the attached questionnaire. Rest assured, all datathat will be gathered will be handled carefully andprofessionally. Thank you for your outmost support andunderstanding.

Sincerely yours,

Revelyn S. Tomas, CPAMBA StudentUSEP

Name of the Company/Customer:________________________________________Address of theCompany :_________________________________________Authorized name of the Company Representative:__________________________Customer Type: (Please check)

_____Industrial ____Commercial _____Residential/Individuals

____Government/LGUs/NGOs _____Contractors/Plumbers

Products ordered from the Company(Pls. Specify):___________________________________________________________

Number of years with the Company (please check):

Less than a year ________ ________more than threeyearsMore than a year ________More than two years _________

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PART I. MARKETING PRACTICES Direction: Listed below is the Marketing Practices of Jhaymarts Industries, Inc. Rate the company as to the quality of the following according to the numerical scale and verbal interpretation. AS TO PRODUCT 5- very satisfied 4- satisfied 3- moderately satisfied 2- unsatisfied 1- very unsatisfied

Questions 5

4 3 2 1

1. The quality of the products2. The warranty, insurance and registration ofthe products after delivery and use3. The product orientation, instruction anddemos4. The availability of the product lines5. Extension of free items and accessories

AS TO PRICE 5 - very reasonable 4 - reasonable 3 - moderately reasonable 2 - unreasonable 1 - very unreasonable

Questions 5

4 3 2 1

1. Product promotional pricing2. Cash discounts3. Seasonal discounts4. Quantity discounts5. Credit lines and terms

140

AS TO PLACE 5 - very satisfied 4 - satisfied 3 - moderately satisfied 2 - unsatisfied 1 - very unsatisfied

Questions 5

4 3 2 1

1. Store /plant lay-out2. Ventilation or air-conditioned3. Accessibility of the store/plant4. Customer amenities/lounge area5. Parking area6. Cleanliness and sanitation

AS TO PROMOTION 5 - highly practiced 4 - practiced 3 - moderately practiced 2 - seldom practiced 1 - never practiced

Questions 5

4 3 2 1

1. Direct Personal selling activities2. salesman and commission agents3. posters, banners, and flyers as promotionalmaterials4. radio and newspaper advertising5. television6. telephone marketing7. internet or web advertising

Thank you for your outmost support and cooperation!

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APPENDIX D

ORGANIZATIONAL STRUCTURE Jhaymarts Industries, Inc.

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The President is the overall in-charge of the whole

operation. He conducts meeting every Monday at the Plant

office together with his plant supervisors and men in

operation.

The Finance and the Administrative Officer handles and

reviews the financial operation of the business (cash

flows, budgeting, forecasting). She initially checks and

approved all the transactions affecting the finances,

operating expenses of the company. The President is the

President

Finance/Administration/HR Officer

FinanceSpvr.

AccountingSpvr.

Production

Marketing Spvr.

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final approval especially concerning major expenses and

capital expenditures which are deemed essential for the

continuous operation. The task of people administration and

factors affecting the human resources are also her

responsibilities.

The accountant keeps the bookkeeping and the records

of the company operation from sales, revenues, operating

expenses. Monthly, he generates trial balances and prepares

the financial statement for internal and external purposes.

He complies with the BIR regulatory requirements such

as the VAT remittances and income taxes. He also prepares

and assists in the compliance of the SEC and DTI

requirements.

The Marketing Supervisor handles the marketing

department and supervises the activities of the salesman

and monitors transactions with their clients, customers and

competitors. He conducts field visits and product

demonstrations to customers to address quickly their

concerns. He also represents the Company whenever they

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participate in the government bidding. He also monitors

and checks the payment and collectibles from trade

customers. He delegates the collections to his salesmen

and marketing office staff.

The Production Supervisor is the over-all in-charge

of the Warehouse operation from accommodation of orders,

manufacturing of pipes, monitoring of inventory level (in-

out, stock-level) and the delivery of stocks to the

customers. He supervises number of men in the operation

whose task consist mainly of production of pipes, cleaning

of the warehouse site, equipment and warehouse maintenance

loading of stocks in the vehicles and unloading of

production materials

The liaison and support staff of the operation is the

one who initially entertain walk-in clients, potential

clients and accommodate request and inquiries of existing

clients. They are the legwork of the operation that does

the dirty work everyday.

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For JII’s, the underlying policies and governing rules

and regulations in handling its human resources are given

below:

For recruitment policy, each department head requests

for their demand of additional manpower. The requesting

department heads interview the prospect candidates and

recommends who will be taken in for the position. The

Administrative officer will be the one to accommodate and

process the pre-employment requirements.

For employee benefits, on top of the basic salary and

overtime pay, the employees receive monthly commission

based on the shared percentage on the sales profit of the

company. This is shared equally by all employees and is net

of leaves/absences for the payroll period. The employees

also enjoy additional benefits such as sick leave and VL

(cash convertible) SSS, Phil health, Phil AM Healthcare

with a 50%-50% sharing.

For training, the company holds in-house training and

seminars that are conducted by invited speakers and key

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company officers. The company continuously organized

seminars and trainings especially for plumbers and

irrigation technicians tapping local and international

lecturers in the field of water system, irrigation, hi-tech

farming and others such as workshops on preventive

maintenance of warehouse and vehicles, proper use of fire

extinguisher, values orientation seminar and seminars

offered by Dept. of Labor and employment (DOLE), SSS, PAG-

IBIG, BIR.

For protection of employees, the employees created the

so-called Labor Management council (LMC) composed of six

(6) employees namely and the President. Employee’s

representatives are composed of production supervisor,

maintenance supervisor, two sales representative and two

delivery personnel. All the proposal of the board of

directors and top management are being coursed through and

deliberated by the LMC . Any employees concerns such as

salary increase, suspension and proposal of new company

policy ( example is the change of Healthcare sharing from

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100% company accommodated to 50% company-50% employees).

Every Monday of the week, there is a Monday morning general

meeting with the President. This is their time to discuss

and elevate to the President concerns relative to sales and

production requirement, delivery and some HR issues and

problems.

For handling of violations, all company related

violations of all employees such as insubordination, AWOL,

loss of items/stealing, anomalies, not following

instructions on deliveries and productions are given

appropriate actions such as 1st offense – warning or

memorandum (for case of loss items, employees are asked to

pay for the cost of it), 2nd offense – suspension, 3rd

offense – longer days of suspension and 4th offense –

termination.

As to the roles and duties, the company makes clear

that the roles, functions and duties of each employee are

known to them. As noted, most of the employees are in

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service with the company for longer years now.

Especially the production personnel (the operation and the

delivery crew), the firm’s operating processes are made

clear to all of them. The production personnel are flexible

in all types of job or are trained to be a well-round

staff. In-case one is absent, automatically, anybody can

be pulled out to replace.

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CURRICULUM VITAE

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Revelyn Sayod Tomas

Birthday : October 25, 1970Address : Stone rock Village, Catalunan Grande, Davao City Mobile No. : 0906-9457496Home Phone : (082) 304-1647Email : [email protected]

Education

2006-2009University of Southeastern Philippines(USEP) Barrio Obrero, Davao CityMasters in Business Administration

1987-1991Ateneo de Davao UniversityBachelor of Science in CommerceMajor in Accounting

1983-1987Davao City National High SchoolF. Torres Street, Davao City

1977-1983Kapitan Tomas Monterverde Sr. Elementary SchoolPonciano Street, Davao City

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Experience

June 2008 – Jan 2009 CHIEF ACCOUNTANT

Halifax Davao Hotel, Inc.(Owner of Marco Polo Davao)

Claveria Street, Davao City (082) – 221-0888

February 5-April 18, 2008 ACCOUNTING HEAD Nakayama Technology Corporation Brgy. Cogon, Diversion Road, Digos City

(082) 553-8701-702

2003- February 2008 MARKETING SUPERVISOR

ST. PETER LIFE PLAN, INC. 2/F Valgosons Building, Davao City (082) 222-8674

2000-2002 FACULTY INSTRUCTOR

ATENEO DE DAVAO UNIVERSITY Jacinto Street, Davao City (082) -222-2411

1998-2000 REGIONAL ACCOUNTANT/ ADMINISTRATIVE HEAD

ISLA COMMUNICATIONS, INC. (now merged with Globe Telecom)

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1992 -1995 JUNIOR STAFF AUDITOR

SGV, GORRES, VELAYO & CO. 8/F, Pryce Tower, Pryce Business Park J.P. Laurel Avenue, Davao City (082) -227-30

Growth Opportunities of Jhaymarts Industries, Inc.

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