October 2019

Gugma Weaves; Marketing Communications Plan

Prepared by: Karylle Young

TABLE OF CONTENTS PAGE NUMBERS

 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

 The Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-

 Communication Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

 Metrics and Targets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

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Executive Summary

The following is an integrated marketing communications plan designed for the company
Gugma Weaves. This plan includes a situational analysis of the company, various
communications strategies to be applied, and the strategies applied to the 4 Ps namely,
product, price, place, and promotions. Furthermore, the metrics and targets to be used to
assess the progress and performance of the marketing plan will be discussed.

Gugma Weaves was founded by Mikeel Araña and Adelle Pacificar, who are both hablon
enthusiasts. “Hablon is a local textile produced in different towns in Iloilo and is considered a
heritage industry in the province.” (Santos, 2017). The appreciation and love for the Visayan
heritage inspired these young entrepreneurs to pioneer this heritage industry and bring the
Visayan culture back to life. The company aims to “incorporate the art and craft of weaving
hablon with every day modern lifestyle. Aside from that, Gugma Weaves wants to produce
quality products that will also help local communities especially in Dueñas, Iloilo. Gugma
Weaves offers various products made of handmade weaves like scarves, wallets, laptop
sleeves, lanyards, and handbags.” (Santos, 2017).

The main objective for this marketing plan is to develop brand awareness among potential
customers and create a strong brand image. Since Gugma Weaves is a relatively new player in
the industry, both these factors play an important role in influencing sales volumes and the
market share of the company.

The Challenge

Repositioning the products of Gugma Weaves would be the main challenge that will be
addressed by this plan. Gugma Weaves is a new company, offering a variety of hand-woven
products made with the local textile, hablon. Even then, the demand for traditionally-made,
locally-weaved products is not that high because Filipinos nowadays prefer international brands
or products. This means that Gugma Weaves needs to reposition their brand image and
products as hip or trendy to remain relevant in today’s modern society.

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Situation Analysis

3.1. Environmental Analysis

Political - The Philippines is a small country and generally, it has an amply stable political
atmosphere in terms of business. The country has taxation laws in place; one such tax is the
corporate tax in place which is at 30%. The Philippines also has a Labor Code which deals with
employment practices and the like. Another relevant political factor is the Intellectual Property
Code which deals with patents, trademarks, and copyrights including businesses.

Economic - The Philippines is a stable enough country although in recent years, economic
growth has been slowing down. The poverty rate of the Philippines on the other hand has
slowly reduced in this year which is a positive sign for businesses because it means that the
people have more spending power. Since one of Gugma Weaves’s aims is to help
economically-challenged individuals, factors influencing labor market conditions influence this
goal.

Socio-Cultural - Filipinos are known for patronizing international products rather than their
own. This mindset and attitude towards local products affect Gugma Weaves since they are a
local industry that is trying to revive the Visayan heritage of hablon weaving that is in danger of
becoming obsolete.

Technological - Gugma Weaves uses the traditional method of hand-weaving to create their
products and today’s advancing technology might affect how people perceive the company.
People might think that Gugma Weaves is outdated and the products are old-fashioned. There
is also the possibility that because of the rarity and the novelty of having a hand-woven product,
people will be inclined to buy more of the company’s products.

3.2. Company Analysis

Product/Brand Resources; Strengths and Weaknesses

Products of Gugma Weaves are not usually seen in the market and that could either be a
strength or a weakness. People might find value in their products since they do focus on the
Philippine heritage. Those who are enthusiasts of the culture here in the Philippines would
appreciate their products and the process of creating said products. However, because Filipinos
today have little appreciation for culture, partly because of colonial mentality, they will have a
hard time positioning their products to entice locals to buy their products. Filipinos are more
prone to buy products from brands outside of the country because they perceive these products

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as more reliable than their own products.

3.3. Market Analysis

Market A - Tourists

This is the most viable market segment for the company because there is more probability that
the people in this segment would appreciate local products more because it is unavailable in
their own countries, making it more valuable to them. Usually, tourists bring souvenirs home as
remembrance and the products of Gugma Weaves would be perfect as a souvenir as it is both
functional and is a physical reminder of the Philippine heritage.

Market B - Teens/Millenials

Surprisingly, teens would be a segment because they are the ones most easily influenced by
media channels, especially social media. Once a product is hyped on the internet or in social
media sites, most teens and millenials would be curious as to what this product is. Teens and
millenials have this desire to fit in with what’s trendy and if Gugma Weaves reposition itself as
that kind of brand, for example by being part of advocacies teens find important nowadays, they
can be able to garner attention and the support of this segment.

3.4.SWOT Analysis

Strengths - The company can offer a variety of products and can customize or personalize
products for customers. It has an advocacy that it is bringing awareness to which means the
company has clearly defined goals and objectives. Currently, it is the only company in the Iloilo
area who offer heritage products which may appeal to tourists and culture enthusiasts in the
area.

Weaknesses - The company has a small market segment to serve and faces difficulty in
garnering attention from the people. They offer products that are functional but not innovative
enough for people to need it. They are not that known yet and it seems that they have yet to
implement any advertising strategies.

Opportunities - Since the company is based in Iloilo and there are no other company that
offers the products they do in that area, they are the sole caterers in that area. They can be
able to adjust their prices without pressure.

Threats - I consider their products as souvenirs and thus other companies who are in that
segment are a threat to the company. Their products are more expensive than these other

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companies which can decrease the probability of people purchasing from them and would
choose to purchase from other companies.

Communication Strategy

4.1. Positioning Statement

Gugma Weaves will be repositioned as a sustainable and trendy company offering heritage
products of the Philippines for tourists.

Gugma Weaves needs to be repositioned as this because tourists in the Philippines are usually
young solo travellers or couples from other countries. People in this segment are more likely to
appreciate the company’s products. The company will also need to ride with the trends
nowadays; most companies are trying to be sustainable to be more environment-friendly and so
Gugma Weaves would also dabble with this situation to gain attention from people and at the
same time, build partnerships and affiliations with other companies.

4.2. Target Market

As mentioned previously, Gugma Weaves would be targeted towards tourists who are visiting
the country. This is because the products being offered by the company can serve as
souvenirs. When one also include the fact that the company would have a hard time garnering
attention from the locals, it is only reasonable to offer the products to foreigners.

4.3. Product Strategy

Gugma Weaves offer many products but they mostly create wallets, bags, scarves, etc. made
out of the hablon material. Usually hablon can be weaved with various designs and patterns, so
there will be something for everyone to choose from. Their packaging would be from recycled
materials or paper to minimize the use of plastic. The design of the packaging of the product
would be minimal and clean.

4.4 Price Strategy

The products of the company would be priced according to size and function. For example,
small wallets can be sold for P150.00, but medium or big-sized wallets can be sold for P450.00.
Other products, especially wearable products like scarves, shawls, cover-ups, can be priced
higher because they require more material and are more difficult to weave.

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4.5. Place Strategy

The products of the company would be distributed in showrooms, such as the Negros
Showroom and even in department stores because department stores usually have a section
for souvenirs and local products. The company could also put up an online store for those
interested to order online since the company’s products can be given as gifts.

4.6 Promotions Strategy

Communications Objectives

Since the company is trying to appear as a trendy brand, it is important to utilize social media
applications since that is the most famous media channel nowadays. People are seeking
information from social media sites and there would be a higher chance of success if they
advertise there.

Above-the-line Strategies

The company can place ads in magazines, especially in articles focusing on lifestyle or travel.
In this way, they can be able to reach the people who are potential customers and who would
possibly be interested in their products.

Below-the-line Strategies

The company should use social media as a strategy because word spreads fast in the internet.
Additionally, a lot of people nowadays are connected online and the company’s popularity

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