De La Salle UniversityRamon V. Del Rosario College of
BusinessManagement and Organization Department
STERLING PAPERCASE STUDY
Submittedin Partial Fulfilment of the Requirements inMKT535M
Marketing Management
To:Ms. Regina Dy
By:Lim, Rapunzel Grace T.
10 March 2015Lets reminisce! Does your childhood memory involve
dragging your parents into a bookstore and hoarding every Spiderman
or Hello Kitty notebooks that you can see? Every month of June, I
hear mothers say Malapit na naman pasukan. Nako, bilihan na naman
ng school supplies.
I always ponder as to whether students and parents care about
the quality or makarami lang. Ive read an article about budget
school shopping, check it out at
http://www.rappler.com/nation/59314-back-to-school-shopping-divisoria.
Its headline caught my attention:
Back-to-school shopping with half-a-peso in Divisoriaby George
P. Moya Published on May 31, 2014For a typical wage earner, saving
50 centavos per notebook could mean a lotI remember that
note-taking only becomes enjoyable when my notebook has a smooth
surface. Ive interviewed a few students about their preferences and
they mentioned specific brands of notebooks such as Best Buy,
Sterling or Cattleya. But these are the privileged ones or those
from middle-income families. Would you rather buy a smooth writing
paper or hoard as many as you can regardless of quality?
Then theres the emergence of computers or notebooks. By
notebook, I mean the gadget. Lots of schools are now promoting
paperless quizzes and homeworks. We now utilize PowerPoint, Prezi
or any technological visual aid. Gone were the days when manila
paper or cartolina comes in handy during presentations. Ive seen
more students nowadays taking notes on their laptops rather than on
notebooks. Is the paper manufacturing industry in the country
declining?
PAPER MANUFACTURING INDUSTRY IN THE PHILIPPINESMany are of the
mistaken notion that the pulp and paper industry is in its sunset
stage because of the introduction of computer technology, internet,
and e-commerce to the business world. The paperless economy is
taking over. So they say.[footnoteRef:1] [1: Villafuerte, N.F.
(2014). Paper A blessing to mankind. Manila Bulletin. Retrieved
from: http://www.mb.com.ph/paper-a-blessing-to-mankind/]
Villafuerte emphasized that the paper industry is here to stay
regardless of the technological development. She shared that a
sentimental person like her chooses written love letters, Christmas
cards, birthday cards as memorabilia. These are more precious than
the emails and e-cards were now used to sending and receiving.
It is indeed unimaginable to live without newspapers, magazines
and books. Until now, I still prefer the good ol books than the
electronic ones. Villafuertes article PaperA blessing to mankind
presented interesting facts about the paper industry at
present:
In 1994, at least 17 pulp and paper manufacturers were included
in the top 1,000 corporations of the Philippines; The industry
imports heavily waste paper or recycled paper as its main raw
material for the manufacture of paper. Likewise, the industry also
imports finished paper products that are not available in the local
market or when the quality and price of the local finished products
are not competitive; There is need to match the incentives offered
by the Philippines vis--vis other Asian countries like Singapore,
Indonesia, Thailand, and Malaysia to the pulp and paper industry
like tariff duties as well as tax holidays. There is a need for our
local pulp and paper industry to invest more for research and
development particularly on experimentations on the maximum usage
of our own raw materials like indigenous fibers for the manufacture
of pulp and paper; The industry is composed of pulp and paper
mills. Pulp mills mainly produce paper making fiber from wood pulp
taken from timber. On the other hand, paper mills manufacture paper
from paper making fiber or waste paper; The industry gives
employment to about a million Filipinos more or less. The total
payroll amounts to less than P3 billion; The growth of the pulp and
paper industry grows proportionately with our economy; and To many
people, the pulp and paper industry is mainly identified with the
promotional materials that abound during our elections. The pulp
and paper industry is more than the paper requirements during our
national and local elections. Euromonitor International stated that
the writing instruments industry had a positive value growth last
year, 2014. Moreover, the change in basic education system to K-12
will be an advantage to performance of the said industry. It is
expected to record constant value performance, however, at a slower
pace than in 2014.
There are several players in the paper manufacturing industry.
Did you know that most well-known writing pads and notebooks in the
country are locally-made? One of the oldest and well-known paper
manufacturer in the Philippines is Sterling Paper. It is founded by
a Filipino-Chinese businessman who established his first shop at
Binondo, Manila.
COMPANY PROFILE: STERLING PAPER GROUP OF COMPANIESHistory and
GrowthSterling Paper Group of Companies started out as a
manufacturer of photo albums and stationaries. In 1946, Lim Seh
Leng established Central Book Store, Inc. (CBS, Inc.) at Binondo,
Manila. Today, the Sterling Paper Group of Companies has grown not
only in its paper products, but also through its other
ventures.
It has realized its mission statement of being the leading
company in its field by achieving total quality in its production
and by fostering strong bonds with its customers, suppliers and
employees.Sterling Products are exported to Hong Kong, Malaysia,
Singapore, India, Egypt, Latin America, South America and the
United States.Through his interest in photography, Lim Seh Leng
started Sterling Bookbinding business with the Sterling Family
Photo Album as its main product. Years later, he manufactured
letter sets, stamp albums, photograph books and grew his business
from two employees to thirty. His residence at Kalookan City also
became a business operation center. Lim Seh Leng also imported
school and office supplies around this time. In 1961, he changed
his companys name to Sterling Paper Products Enterprises and he
expanded his business abroad.Upon his demise, his wife, Maria Co
Chiao Ti Lim and their children: Henry, Joseph, Willy, Gerry and
Evelyn took over the operations. In 1970s, Sterling Notebooks was
introduced. Sterling Notebooks are one of the best quality and most
sought-after notebooks nowadays.
Because of the companys massive growth. A five-hectare
production plant was constructed in Marilao and a distribution
center in Meycauyan, both in Bulacan. Together with its expansion,
the company was incorporated into Sterling Paper Products
Enterprises, Inc.
In 1980s, Sterling started producing and selling gift wrappers
and greeting cards with the creation of StraightLines
International. More products were added to the lone such as notes,
bags, puzzles, board games and wall charts. Sterling Greetings was
then proudly introduced as the only completely Filipino greeting
card brand.
In 1984, Expressions branches were established with the first
one at Carriedo, Sta. Cruz, Manila. Expressions is a retail outlet
that sells school and office supplies, it also offers photocopy and
binding services, much like National Bookstore. Currently,
Expressions has 12 outlets and most of which are located at
accessible places, near the schools or inside the malls.
Through CBS Inc., Sterling continued to import well known brands
such as Pentel, Olympia Calculators and Orion Rulers for its school
and office supplies. Honsteel, Bristol and Singbee for its office
furniture and toys like Little Tikes.In 1992, Sterling entered in
the real estate industry with the creation of S.P Properties, Inc.
and among its ventures are the Sterling Industrial Park in
Meycauayan and Sterling Technopark in Carmona, Cavite.In 1996, the
company moved its main office to Makati City called Sterling Place.
It accommodated not only the Marketing, Finance and Administrative
Departments but also a showroom where all the products of the
company are showcased.Sterling Paper Group of Companies CEOHenry
Lim Bon Liong is the Chief Executive Officer of Sterling Paper
Group of Companies, S.P. Properties, Inc., SL Agritech Corporation
(SLAC), as well as a member of the governing council of the
Philippine Council for Agriculture, Forestry, and Natural Resources
Research and Development (PCARRD).SLAC is the leading research
development and production of superior hybrid rice company in the
Philippines. It is a subsidiary company of Sterling Paper Group of
Companies. SLAC was founded by Henry Lim Bon Liong in 1998. He is
the brains behind the sought-after Doa Maria rice. It is now the
major distributor and exporter of hybrid rice throughout the
country and abroad Malaysia, Singapore, and Indonesia.
Mission and VisionOur MissionWe would like to be a leading
company in our industry by achieving total quality in our
production and fostering strong bonds with our customers, our
suppliers and our employees.
Our VisionThe Sterling Paper Group of Companies will not only be
a leader in its respected industry in terms of sales and profits,
but in terms of innovation, cost-efficiency, rightsizing, less
bureaucratic and diversification to other product lines and field
of business in order to achieve a super business status in six
year's time.
"I strongly believe that if we work together we can achieve our
vision and in the process create a super business that will be
admired by our customers, our suppliers and our society."Mr. Henry
Lim Bon Liong Chairman and CEO
A SUBSIDIARY: STERLING PAPER PRODUCTS ENTERPRISE, INC.VisionTo
be the leader in all the industries that we are involved in,
through passionate quest for innovation, diversity and synergy.
Mission We are committed to foster strong bonds through customer
intimacy, and continually innovate to provide high quality products
and services. We are committed to give our suppliers sustainable
business assuring them of a long term and mutually beneficial
partnership. We are committed to provide our employees
opportunities for career growth, improvement of their way of life
and development of their skills by creating an avenue for employees
to share their ideas and talents in a stable and growing
organization. We are committed to deliver the best possible returns
to our shareholders investments. We are committed to better
community where we are involved with.
Three Strategic Pillars Operational ExcellenceTo efficiently and
effectively produce products and services at the right time, at the
right quality, and the right quantity and at the right place with
the least possible cost.
Customer Intimacy To develop and maintain good relationship and
strong bond with the Customers To determine customer needs and
provide quality products and services to assure customer
satisfaction and loyalty
Product LeadershipTo be a prime mover that leads the industry
and provides quality and innovative products with excellent designs
that meets customer needs.
Shared ValuesLeadership We listen, inspire and pave the way to
empower our peopleIntegrity - We uphold honesty, truthfulness and
consistency in every action that we takeTeamwork - We collaborate,
synergize and work harmoniously to achieve common goalsExcellence
We continuously strive to achieve the best output and exceed
expectationsRespect for each other We treat each other with mutual
trust and understanding in view of our individual
uniquenessReputation We work together to ensure that the company
maintains a positive image as a remarkable and impressive company
admired and respected by many.
Awards and RecognitionYear 2003 Most Outstanding Manufacturer of
Paper Products Awardee
Most Outstanding School and Office Supplies Brand Awardee(
Consumers choice awards and Dangal ng Pilipinas annual Awards)
Top Paper Products Manufacturer Award ( 18th Annual Consumers
Excellence Awards)
Outstanding Paper Products Manufacturer Award
Year 2004 SPPEI : Superbrands Seal of Excellence
Number 1 Stationery Award(2nd National Shoppers Choice Annual
Awardee)
Best Call Center Award(National Product Quality Excellence
Awards)
Year 2004 2005 Outstanding Paper Products Manufacturer 19th and
20th National Consumer Excellence Award
STERLING NOTEBOOKSterling Paper Products Enterprise, Inc.
(SPPEI) is one of the top manufacturers and distributors of paper
products in the Philippines. It has the most varied product
categories including notebooks, specialty papers, writing pads,
photo albums, coin banks, story books, game boards, coloring books,
and other school and office supplies. With more than 60 years of
manufacturing and product distribution experience, and equipped
with its own production plant and modern storage facilities,
Sterling Paper always meets and exceeds customer demands.
Sterling is also a respected brand in the international market.
Its quality products caters to the market abroad through its
affiliate, LSL International located in the USA, Japan, Taiwan,
Hong Kong, India Middle East, and to some South American countries.
Target Market and PositioningThe companys tagline is Definitely
High Quality, definitely Sterling. The company has been recognized
by various consumer groups in the Philippines. Sterling Paper was
bestowed the Super Brands Seal of Excellence for its unmatched
product quality.
Sterling Notebook is one of the oldest and most competitive
products in the market. SPPEI takes into consideration the
preferences of its consumers. Thus, the company offers a wide range
of notebooksfrom spirals with colorful designs to neutral ones.
SPPEI also manufactures affordable, quality and elegant planners
which are suitable for both students and professionals. The company
caters to the upper class and middle class market.
Marketing MixSPPEI aims to To efficiently and effectively
produce products and services at the right time, at the right
quality, and the right quantity and at the right place with the
least possible cost.
Because of the exquisite designs of its notebooks, Sterling
Notebooks are often often misconstrued as expensive. Guess what?
Sterling Paper products has a price range of as high as P200+ and
as low as P20. The company is big on advertising. In 2013, Kathryn
Bernardo signed a contract as the newest endorser of Sterling Paper
Enterprise Inc. With the presence of one of the most popular teen
celebrity and a role model for young girls in the country, Sterling
Paper became aggressive with its advertising campaign. Kathryn
Bernardo got to promote various products such as Sterling
Clipbinder for high school and college students, Sterling Hello
Kitty notebook for the younger girls, Kathryn planner and more.
The company is active on social media as well, having its own
website and twitter account @STERLINGNOTESPH where it announces
different events, activities and promos for Sterling Notebooks.
Sterling Papers promotions include Meet and Greet with Kathryn
Bernardo, a raffle to win a personalized Kathryn 2013 planner.
Sterling Notebooks are available at the most accessible
placesall Expressions retail outlets, as well as, National
Bookstore branches at the malls and near schools in Metro Manila,
Luzon, Visayas and Mindanao provincial areas.
CompetitionSterling Notebooks can compete with National
Bookstores Best Buy in terms of price, wherein the latter costs P20
per notebook. Another competition is Cattleya. This time Sterling
levels with Cattleya in terms with quality, but the former offers a
good quality product at a way more affordable price. A Cattleya
Notebook costs about P40.
PROBLEM STATEMENTWhether or not Sterling Notebook should tap
into the lower C and D market to compete with Divisoria notebooks
or maintain its trademark as the Definitely High Quality product at
an affordable price?
REFERENCES
Villafuerte, N.F. (2014). Paper A blessing to mankind. Manila
Bulletin. Retrieved from:
http://www.mb.com.ph/paper-a-blessing-to-mankind/
Writing Instruments in the Philippines. (2014). Euromonitor
International. Retrieved February 28, 2015, from:
http://www.euromonitor.com/writing-instruments-in-the-Philippines
Company Profile.(n.d). In Sterling Paper Group of Companies.
Retrieved March 1, 2015, from:
http://www.sterlingpaper.com/company-profile/
Mission and Vision.(n.d). In Sterling Paper Group of Companies.
Retrieved March 7, 2015, from:
http://www.sterlingpaper.com/company-profile/
About the CEO.(n.d). In Sterling Paper Group of Companies.
Retrieved March 7, 2015, from:
http://www.sterlingpaper.com/about-the-CEO/
Whats New.(n.d). In Sterling Paper Products Enterprises, Inc.
Retrieved March 8, 2015, from:
http://www.sterlingpaper.com/company-profile/
About Sterling Paper.(n.d). In Sterling Paper Products
Enterprises, Inc. Retrieved March 8, 2015, from:
http://www.sterlingpaper.com/sppei/#!/page_About
Portfolio .(n.d). In Sterling Paper Products Enterprises, Inc.
Retrieved March 8, 2015, from:
http://www.sterlingpaper.com/sppei/#!/page_Portfolio