One Town, One Product (OTOP)

The concept of OTOP-Philippines is an adaptation of Japans successful One Village One Product (OVOP) project, which was started in 1979 as a form of peoples participation in the regional development of that country. Its success prompted other countries to adopt the concept as an effective tool for poverty alleviation. OTOP has been established in Thailand, Vietnam, Malawi, Cambodia, Pakistan, India, Bangladesh, and Indonesia.

What is OTOP-Philippines?
ONE TOWN ONE PRODUCT Philippines is a priority program of Her Excellency President Gloria Macapagal-Arroyo to promote entrepreneurship and create jobs. Through OTOP, local chief executives of every city and municipality take the lead in identifying, developing, and promoting a specific product or service which has a competitive advantage.

OTOP to assist 3 million entrepreneurs to generate 6 to 10 million jobs by 2010.

OTOP-Philippines supports MSMEs to manufacture, offer, and market distinctive products or services through the use of indigenous raw materials and local skills and talents. The Department of Trade and Industry advocates the OTOP ideals.

What is OTOP-Philippines?
OTOP
Private Sector MSMEs

(National)
Host Community Host Community

Private Sector MSMEs

OTOP (Town)
LGU (Town) LGU (Province)

Institutional Support Group (NGAs) Private Sector Host Community

OTOP (Chartered City)

LGU (City)

OTOP (Province)

OBOP (Brgy. Level)

LGU (Town) MSMEs

LGU (Province)

What assistance is provided in OTOP Philippines?

OTOP-Philippines offers a comprehensive assistance package through a convergence of services from local government units (LGUs), national government agencies (NGAs), and the private sector. This includes:

Business Counseling / Advisory Assistance; Document Processing Assistance; Skills and Entrepreneurial Training; Raw Material Sourcing; Product Design and Development; Appropriate Technologies; and Marketing Assistance

Who may avail of the assistance?

The program targets Micro, Small and Medium Enterprises (MSMEs) with an asset size of not more than P100 million, which account for about 99% of business establishments.

Who supports OTOP-Philippines?

The mayors, as the OTOP Chief Executive Officers, identify the specific product or service and make available all forms of assistance. The following key NGAs provide the necessary support for the LGUs in the implementation of the OTOP Program:

Department of Agriculture (DA) Department of Environment and Natural Resources (DENR) Department of Interior and Local Government (DILG) Department of Agrarian Reform (DAR) Department of Science and Technology (DOST) Department of Tourism (DOT) Technical Education Skills Development Authority (TESDA) Department of Trade and Industry (DTI)

These agencies work hand in hand with other government offices and the private sector to sustain the program.

What makes OTOP-Philippines succeed?

OTOPs competitive advantage are the following key elements: Dedicated LGUs Reliable Raw Material Supply Rich Local Culture and Tradition Local Talents and Skills Ready Market for Products/Services Aggressive Core of Producers / MSMEs / Private Sector Convergence of Government Services

OTOP Operational Plan Framework

Strategy 1 MARKET DEVELOPMENT Goal Indicator: Increase in domestic and export sales Program Components: 1. Marketing Plan
(MPs, database, & market information)

2. Market Expansion
(trade fairs, trade missions, market matching, market consolidation, pasalubong centers)

3. Product Development and Promotions

(product development, promo collaterals, & branding program)

OTOP Operational Plan Framework

Strategy 2 IMPROVE BUSINESS DEVELOPMENT Goal Indicator: Increase in investments and jobs Program Components: 1. Financing Access
(finl. brokering, finl. software devt. & funding fora)

2. Investment Promotion
(business missions, business matching, investment for a/clinics)

3. Business Studies and Research

(PIS/FS, & product research)

OTOP Operational Plan Framework

4. Business Registration Enhancement

(advocacy & promotion, LGU procedures & systems study)

5. Industry Clustering
(advocacy & promotion, industry cluster mobilization)

6. Product Accreditation

OTOP Operational Plan Framework

Strategy 3 DEVELOP AND IMPLEMENT ADVOCACY PRORAM TO ENHANCE AWARENESS AND SUPPORT TO OTOP Goal Indicator: OTOP Philippines become word of mouth (WOM), & a way of life (WOL) Program Components: 1. OTOP IEC Plan
(OTOP webpage, promo collaterals, advocacy plan & roadshows, & tri-media campaign)

2. OTOP Classification and Grading System

OTOP Operational Plan Framework

Strategy 4 CAPABILITY BUILDING FOR LGUs/ STAKEHOLDERS AND MSMEs Goal Indicator: All municipalities have OTOP products/services by 2010 Program Components: 1. LGUs/Stakeholders Training
(managerial, quality & productivity trainings)

2. Capability Build Up for LGUs & Stakeholders

(benchmarking, OTOP conferences, e-Mentoring)

3. Capability Building for MSMEs

(benchmarking, training programs, expert dispatch service program)

DTIs
Support

BUSINESS DEVELOPMENT SERVICES

Financial Brokering Business Counseling Business Consultancy

Advisory Assistance Information Services Other Business Development Services

DOCUMENT PROCESSING ASSISTANCE/FACILITATION

Business Name Registration Local Investment Board (LIB) Application Board Of Investment (BOI) Application Foreign Investment Act (FIA) Application Export Processing & Documentation

ENTREPRENEURIAL/ BUSINESS MANAGEMENT TRAINING

Entrepreneurship Training Effective Marketing & Selling Techniques Costing & Pricing ISO 9000 Quality Management System ISO 22000 Food Safety Management System Effective Customer Relations Good Manufacturing Practices (GMP) 5S of Good Housekeeping Hazard Analysis and Critical Control Point (HACCP) Other Capability Building Assistance

MARKETING ASSISTANCE

Market Promotion * Local & International Trade Fairs & Exhibits * Selling Missions

* OTOP Island Fairs Market Matching * Producer & Buyer Matching Trade Facilitation & Brokering * Subcontracting * Pasalubong Centers Product Branding

PRODUCT DESIGN AND DEVELOPMENT

Product Clinic & Prototyping Packaging & Labeling Techniques Product Trends

Thank You!