Promotion Strategic Alternatives

1 2
Pricing based Experience based
promotion promotion
Key External Factors Weight AS TAS AS TAS
Opportunities
1. Market recovery 0.09
Balikbayan 0.12 2 0.24 4 0.48
3. Construction of new airports in the Philippines 0.07 3 0.21 4 0.28
4. Emergence of new imported products 0.09
5. Technological innovations 0.09
6. Opportunity of new distribution channels 0.10

Threats
1. Asian financial crisis 0.10
2. Lower tariffs on imporated merchandise for domestic
0.06
retailers
3. Aggressive marketing campaign by competitors 0.05
4. Increasing number of direct local competitors 0.06 2 0.12 4 0.24
5. Products substitute available in the market 0.05
6. Volatile dollar currency 0.12

Total 1.00

Key Internal Factors Weight

Strengths
1. Tax free import privileges 0.15
2. Carries 60 different brands and 2700 different kinds of
0.10 3 0.3 3 0.3
merchandise
3. Strong international brand 0.10 3 0.3 4 0.4
4. Location advantage 0.07 3 0.21 4 0.28
5. Flexible and lean new company 0.06
6. Supply chain advantage 0.10

Weaknesses
1. 12.5 months worth of inventory 0.08
2. Great effect of dollar currency changes on sales 0.12
3. Limited experience of TRL 0.06
4. Higher prices compared to domestic products 0.06
5. No definite price positioning 0.10

Total 1.00 1.38 1.98