MARKETING SITUATION

Business Review

The Islands Group traces its history back to the early beginnings of Islands Souvenirs in Cebu
in 1992. The Islands Group is all about making travel in the Philippines an unforgettable
experience. Plain and simple passion for service, understanding what the market needs, and
drive to deliver great value have shaped the Islands Group into the multi-awarded brand it is
today.

Mission

“To provide a premium quality souvenir items that are practical and creatively designed and
packaged in vibrant retail environments”

Packaged in vibrant shopping environments, it transformed the way that souvenirs were sold
completely. Today, Islands Souvenirs has captured a significant share of the souvenir market
and has become the most awarded souvenir brand in the Philippines. Its retail operations
have expanded to over a hundred stores in various high-traffic tourist locations in the
Philippines.

Vision

“To be Asia’s number one recognized souvenir provider operating around all over the Asia
with excellent strong customer base”
 
With tourism in the upswing, the Islands Group has recently experienced unprecedented
growth, having launched several exciting new concepts over the past few years. Aside from
the Islands Group’s strengths in understanding the market, this can also be attributed to the
robust and ever-developing tourism industry in the Philippines. In the year 2010 alone, the
Philippines had reached a new record for highest number of visitors. With the economy’s
positive outlook, this number is only expected to grow.
 
 Competitive Review

Island Souvenirs wants to expand to Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta
12160, Indonesia.

POLITICAL FACTORS
The political system of the country is democratic and the president and vice president of the
country are elected through parliament. It is declared the Republic and their rules and
regulations are developed under Roman-Dutch Law. The president and vice president are
elected after five years and president has authority to appoint his cabinet through votes of
public.

ECONOMICAL FACTORS
Indonesia is developing country and the government has taken various serious steps to
increase the GDP growth in few years. The government spends only 23.5% on their GDP and
they have the revenue of $92.62 billion and their expenses are about $98.88 billion. Indonesia
has the reserves of crude oil and natural gas and it is at the 8th position in exporting the gas.
Indonesia has made significant development and it has robust GDP growth to 6.1%. This
country earns the GDP growth of 14.4% from agriculture, 48.1% from industry and 37.5%
from service sector. It has given specific attention on FDI and has good inflow of FDI with
$67.3 billion, which shows its consistently increasing side and strength in their economic
sector.

SOCIAL FACTORS
Indonesia has large population, which is increasing steadily with the ratio of 1.13%. They
have good average life, which is over 70 years. Most of the people live in urban areas. Most
of the people are concerned with agriculture and industry and they are working for the
development of their country. The government has given specific attention to education and it
has impressive literacy rate of 90.4%. This country spends 3.6% of its GDP on its education.
Government has its own public schools and colleges, where the students can get education at
the nominal fee charges. It has developed some universities, in which education is given to
the students in different disciplines and the students are taking interests in getting more and
more education, which is necessary for their survival as a nation in this world.
TECHNOLOGICAL FACTORS
Indonesia has developed their own transport system and they have 139 airports, railways and
water ways to go to other parts and islands of the country. As it is located in the ocean, so
there are many big and small ports and it has the biggest merchant marine of 971 in which
114 are registered with foreign countries. This country has developed its communication
system and various new brands of the smart phones are available there. The government has
adopted the effective broadcasting technology. They have their 54 TV channels in which 11
are national TV networks and some are located in the private sector.

COMPETITOR ANALYSIS

Khas Jakarta

The shop is located within a huge shopping mall. It’s located in Jl. Thamrin Boulevard
blok H5 no. 6 | Thamrin City Lantai 1, Jakarta 11110, Indonesia. The shop has it all, a
complete one stop shopping to find Jakarta’s local food, a simple key chains, magnets, t-
shirts and some others souvenirs with affordable price.

Pasaraya, the Pride of Indonesia

It is located in Blok M Jln. Iskandarsyah II 2 | Kebayoran Baru, Jakarta 12160, Indonesia.

They provide smallest wood carving pencils, book marks to sterling silver signature creations,
must-buy masks, sarongs, cool casual bags to carry around, place mats, batik and
handicrafts with a lower price.

Batik Keris

It is located in Soekarno-Hatta Airport, Jakarta, Indonesia. They sell Batik dress and scarf for
women or men with affordable price. In addition to nice batik clothes, they also have unique
carvings, metal figures, shadow puppets, key chains and other trinkets.
External Environment Analysis

 Threat of new entrants

o large capital and time for startup
o Adopting the culture

 Supplier power
o lots of suppliers for raw materials
o supplier size includes local and international areas for import

 Competitive rivalry
o customer loyalty depends on the convenience of location
o competitors have lower quality of concrete and cement

 Buyer power
o higher quality of tshirts
o low pricing compared to other competitors
SWOT ANALYSIS

HELPFUL HARMFUL

INTERNAL
STRENGTHS WEAKNESSES

 Higher quality and innovative  Seasonal bead off of the

products demand of their merchandises
 Safety- focused  Pricing perception
 Comfy merchandises
 Customer-focused
EXTERNAL

OPPORTUNITIES THREATS

 Expand in international  Increasing market competition

markets  Similar products are
 Technology Advancement everywhere
 Increasing investments  Low Revenues