Supermarket MAY BE THE Filipino Immigrants In The Uk Marketing Essay

On the 10th of January 2010, Pinoy Supermarket, a wholly Filipino managed firm, had efficiently opened up its door to the Filipino Uk Community as the hottest and latest addition of Filipino store in London. Its address reaches 10 Hogarth Road, -a minute walk from Earls Courtroom tube train station and bus stop.

Pinoy supermarket is situated in a traditionally and mostly Filipino traditional at Earls Judge Road. Filipino business organizations in the region include two Filipino bankers, particularly: the Philippine National Standard bank (PNB) and Standard bank of the Philippine Islands (BPI); five money transfer company; four Filipino supermarkets; two Filipino restaurants; and many other businesses in travel and personal treatment. A lot of the Filipinos from London and the countryside often converge at EarlїЅs Court Highway to avail themselves with the services offered in the region. And since this place is also called the їЅManilaїЅ of the Filipino Uk Community every Filipino business enterprise prefers to start shop within the vicinity of Earls Courtroom Road.

Prior to the acquisition of the premises of Farochelin Band of Companies this past year, the existing location of Pinoy Supermarket is recently occupied with a subsidiary of Farochilen, authorized as Tatak Filipino and other Oriental Foods, Ltd. It is one of the oldest Filipino Supermarket in Earls Judge Road founded in later 1980їЅs. Most of the Filipino customers thought throughout their recent trip to the store that it's still part of Farochilen and appreciates the modern designs of the store, and feel delight when prepared that the store is under new ownership.

Pinoy supermarket generally sells Filipino Foods and non-alcoholic refreshments such as rice in whole or flour; raw and ready-to-eat noodles; sardines and other canned foods; natural powder and liquid seasonings; frozen fish, pork and beef meat, processed meats and sausages; sweetened and maintained fruits in bottle or can; drinks in can, bottle or pouch; milk and powdered drinking alcohol chocolate; and other oriental goods.


The Primary MARKETPLACE (PTM) of Pinoy Supermarket is the Filipino immigrants in the UK. The demographics of its PTM cover all degrees of each variable, namely: from baby to pensioner; unusual to high earning experts and businessman; travellers, momentary and resident or Filipino English; Londoners and countryside; and of different spiritual affiliation. There is absolutely no emphasis on psychographics and behavioural segmentation.

The Secondary MARKETPLACE of Pinoy Supermarket is the Orientals or Asia-pacific immigrants, such as: Thais, Malaysians, Indonesians, Chinese language, Japanese and Koreans.

Information about the EXACT market size of Filipino immigrants in britain, specifically in London, is unavailable at the moment due to insufficient database and market research. The amount of retail stores held by Filipinos in the UK is small & most often still make use of manual data handling and less reliance on any business software due to the high cost involve. Hence, there is a need to obtain an estimation of the total market probable of Filipino products, which are sold by Filipino merchants, from statistical information and derive a conventional number after reckoning several assumptions. However, this is entirely an estimate to simplify the research with the info at hand. Listed below are the basis for the assumptions used

1. Income- Based on the UK Government, Country wide Figures Office (NSO), the common annual Gross Throw away Household Income (GDHI) per brain in the united kingdom is їЅ14, 317 as of 2007. This is shown in Table 1A in the annex section. Most Filipinos who have been working in the united kingdom, particularly those who were applied on Medical and Health services, has income level almost twice as much as GDHI. To be able to simplify the computation, the published April 2009 GDHI of 2007 is utilized as the average income per head.

2. Expenditure- Base on the Family Expenses Survey (FES) from NSO, the FOOD AND NON-ALCOHOLIC bills by 2008 is 16% of the full total expenditure. This is shown in Stand 4. 2 in the annex section. The computation of costs is equal to the GDHI since most Filipinos in the united kingdom tend to spend the remaining income after making a remittance or money copy to their young families in the Philippines.

3. Population- By 2007, the total volume of Filipinos in the United Kingdom is 203, 035. Table 30 in the annex section presents this data. An assumption of 10:2 ratio or 80 percent of the total Filipino UK society is economically energetic or having a jobs. Most of the Filipinos in the united kingdom have either citizen or short-term with work permit or undocumented, and of working get older. Both Parents of an Filipino family are also employed either one is working full or part-time.

The table below shows the ESTIMATED MARKET SIZE of Filipino retailers in the UK as computed using the assumptions.

Table 1

Estimated Market Size of Filipino Retailers

Population : Gross 203, 035

Population: Economically Active/EA at 80% (Gross x 80%) 162, 428

GDHI (2006-2007) їЅ14, 317. 00

Expenditure- FOOD. . . at 16% (GDHI x 16%) їЅ2, 290. 72

Market Estimate/ME (EA x ME) їЅ372, 077, 068. 16

For Pinoy Supermarket, this їЅ372 million worth of Market is a їЅsilver mineїЅ. There's a huge potential for expansion in its market, which is Filipino immigrant, since it barely share less than a fifth of 1% or 0. 2% of the complete market, foundation on its current sales.

Most Filipinos buy their groceries from major supermarkets such as Tesco, Sainsbury and ASDA, and usually, they only buy for Filipino goods when they miss and desire Filipino delicacies.


It is essential for Pinoy Supermarket to identify itself from your competition. It has recently grouped its market topic which is the Filipino immigrant in the UK. However, there are a number of Filipino store offering the same Filipino products and competitive pricing policy. It must therefore explain its unique selling proposition.

The Unique Advertising Proposition (USP) of Pinoy Supermarket has been a їЅOne Stop ShopїЅ for Filipino customers.

The Main Indications for Differentiation are

1. The range of product lines of Filipino Products. It will need to have all the known Filipino products in the Philippines. When some products do not comply with the UK food and safe practices standards, it should provide Filipino manufacturers the required information to meet the UK features.

2. The number of products proposed by UK Supermarkets. There is no need for Filipino customers to buy their groceries from leading UK supermarket if Pinoy Supermarket can also sell all the products they want at competitive price. They are able to have almost all their groceries, -both Filipino and local products at Pinoy Supermarket without having to go someplace else.

3. Store Location. The convenience in conditions of convenience of the store is also important since the closeness of store to the Filipino customerїЅs house, takes on an important role in their buying habits. Hence, there's a need to start or acquire stores close to the high pavements and town centres where huge numbers of Filipinos often do their shopping after work or at weekends.

4. Allied Services in Money Transfer and Cargo Forwarding. The main activity for Filipinos is sending their hard earned money and UK goods, as presents or surprise in bulk, to their individuals in the Philippines. Pinoy Supermarket has a sister company, called DIRECT MONEY Copy (DMT) situated inside its store at the cellar level. DMT offers services such as money transfer, pension payments, and since a certified agent of Western Union. Majority of Pinoy Supermarket customers are clients of its sister company the DMT. There is another company which has been planned to start this year and will have its office in another of the store premises. The new firm will offer you cargo forwarding in bins of varying sizes to be sent right at the house of receiver in the Philippines.


Pinoy supermarket has three other competitors near its location, one just next door and two others on Kenway Street. To further emphasize the value of Pinoy SupermarketїЅs USP as a key factor of its success, a graph below tracts its current position and its competition.

Table 2

Pinoy Supermarket USP Comparison

USP Indicators Pinoy Supermarket Manila Supermarket Tindahang Pinoy Divisoria Superstore

Range of Filipino products Complete* Complete* Complete* Complete*

Range of Local products None None of them None None

Store location Limited** Small** Small** Limited**

Allied Services: Money Copy Full services nothing Full Service limited***

Cargo Forwarding nothing none of them none none

* All suppliers of Filipino products will be the same to all or any the stores and hold only UK approved products.

** Only 1 store can be found.

***Only European Union emerges.

The data uncovers that Pinoy Supermarket hasn't totally differentiated itself from Tindahang Pinoy. Both stores offers and will be offering the same products and services to Filipino customers. This means that the value of realigning Pinoy SupermarketїЅs tactical priorities into the fulfilment of its USP at the soonest possible time.

Pinoy Supermarket has other indirect rivals in the region such as off-licence stores and leading supermarkets such as TESCO and Sainsbury. These stores do not sell any Filipino products but has significant effect on the sales of Pinoy Supermarket if Filipino customers buy the majority of their goods from the said stores and have less money left to invest for Filipino products.

SWOT Analysis


The owners of Pinoy Supermarket have years of experience in working a supermarket providing Philippine products to Filipino customers overseas. Their degree of knowledge and skills is high and reckoned as expert on this field by their counterparts. They have a store in Riyadh, Saudi Arabia, where these were themselves once International Filipino Worker (OFW). The sister store of Pinoy Supermarket in Riyadh acquired already been working for many years.

The Store in Riyadh has an importation business due to the unavailability of local dealer and supported by the money transfer and cargo forwarding business. Pinoy Supermarket has this competitive advantage by simply following business design of its sister store in Riyadh.

Presently, Pinoy Supermarket is backed by its sister company, the Direct Money Copy Ltd. (DMT). The existence of DMT inside the store experienced help Pinoy Supermarket increase its sales by two folds in recent weeks and continuously break prior sales records.

In terms of display area, Pinoy supermarket has double the square foot area than its competitors. It could accommodate twice the amount of product lines currently performed by other Filipino stores. And, it offers four huge coolers and three mid size freezers. Its rivals have only typically two coolers and freezers.

Filipino customers are also make an impression by the spacious, modern and organize design of the store. They can spend additional time selecting the products they consider to buy and not to stress about being push around in a queue because the store has enough space to accommodate every customer. With every product given a good screen, this visual effect will eventually translate into sales.

There are CCTV camcorders on every corner of the store giving a complete view to every activities occurring within the store. These CCTV cameras at Pinoy Supermarket will functions as deterrents to any potential security risks and thief issues. This security system can be remotely watched even overseas.


As a new player, the market show of Pinoy Supermarket is small in comparison to its competitors. It requires an effective strategic plan in every its business functions to be able to constantly and gradually gain some significant portion of its market.

The huge region of Pinoy Supermarket includes more staff is required to package with merchandising compared to just almost a standalone operation on other stores. This means an additional cost to the stores daily procedures. And since they have two levels, - the ground floor and cellar, customers sometimes confirms it uncomfortable to make use of the stairs just to buy a few things they want.

The products and services provided by Pinoy Supermarket didn't differentiate itself from its competition. The clients could hardly identify it from Tindahang Pinoy and acquired perceived some of its products set marginally expensive than the rest of Filipino stores.


With an estimated їЅ397 million worth of Market, you can find huge revenue potential if Pinoy Supermarket can also offer products sold by major supermarket at competitive price since rather than just making sales out of Filipino goods they can also catch the Filipino market presently patronizing UK stores. Why would Filipino customers go to local supermarkets if they can own it all with a Filipino store?

The core business is on Filipino products and to be able to support and increase sales, products made available from local supermarkets must also be provided at competitive price. Simply by providing a range of affordable and cheapest product for each and every product line made available from leading supermarkets, Filipino customers will choose to buy all their goods at Pinoy Supermarket.

There is also a need to localize the product type of the store, if the store is near a active area like a tube place, the store may opt to make an application for an off certificate in order to add sales. About 20% of customers who walk in the stores where other nationalities and usually just remaining because these were looking for products that your store doesn't have, but are usually open to all local stores.


The local Manila Supermarket had started engaging in a so called price lowering scheme to keep existing customer from turning to Pinoy Supermarket. One customer devoted to them had been over heard by one of the personnel of the new store chanting їЅours is cheaper than yours", (їЅMas mura kamiїЅ). This is a real problem to the new store since the real motive of the price reduction scheme is not really to increase sales but to get an advantage over the competition through communicating a note to the present and prospects the idea of їЅbetter value for moneyїЅ as a setting-, which is meant to be one of the elements for the brand setting of Pinoy Supermarket.

Due to the closeness of Manila Supermarket to Pinoy Supermarket, most customers had developed a behavior of shopping for some products in one store and the others with Pinoy Supermarket. This craze is actually alarming since it includes a loss of sales for Pinoy Supermarket. A deeper research will reveal that this is basically due to a perceive price variance from both stores. The clients possessed made a list in their brain which products are most likely cheaper from each store. Hence, there is a damage on sales for Pinoy Supermarket even if the difference seen by the customers in prices is merely a subject of notion.

Shall Pinoy Supermarket take part in a price war? If Pinoy Supermarket will provoke or react to price competition, it'll certainly erode a substantial portion of its profits and over time will deteriorate its money. It is a lot more effective to focus on increasing the volume of sales per purchase per customer. Pinoy Supermarket provides savings if products were bought in pairs, bundles or communities. It can even have a promotional tie up up with DMT. An gathered amount of purchase of їЅ500 from Pinoy Supermarket will entitle a customer for a voucher of їЅ5 money transfer charge, which is the minimal charge for a single remittance exchange of less than a thousand pounds. Rather than involving in a price warfare, Pinoy Supermarket can just simply allocate a budget for sales campaign program. These can be executed as long as it is economically viable.

The the very first thing to be developed by Pinoy Supermarket at this early stage of its business period is to create a loyal customer bottom part. These faithful customers will assists as champions and reckon Pinoy Supermarket as one of their own. Independently way, they enhance and defend Pinoy Supermarket without being compelled nor paid. The ultimate way to develop these dedicated customers is to determine a good and long-term romance with customers atlanta divorce attorneys aspect of the stores purchase with them. The Filipino has its term for this known as їЅSUKIїЅ- faithful customer.

PESTEL Analysis


There can be an upcoming standard election by the center of this year. When the Labour get together losses the majority seat inside your home of Commons towards the conservative, the long many years of pro-immigration insurance plan of UK will come to a finish. The conservatives had been known in building rough barriers in the admittance of immigrants and even possessed maintained a critical stance towards European Union. This would mean a steady NET decline in the amount of Filipino immigrants in the united kingdom, particularly those with temporary permit to remain, which comprises 1 / 2 of the total inhabitants. This translates to a steady reduced amount of the market size of Filipino immigrants for Filipino vendors like Pinoy Supermarket.


The recent financial crisis reckoned as the worst since the deep melancholy in 1929 has less influence on Filipino immigrants except for students, since majority of them work in medical and health services, hotel and restaurants, and affluent home. And they have been very resilient since most Filipino has at least 2-3 jobs in weekly. The resiliency of Filipino immigrants provides security to the sales of Filipino vendors especially Pinoy Supermarket.


Filipinos are incredibly adaptive to any culture. They are able to merge well and adapt to sociable requirements in the environment they are in. Thus, the social diversity of London will have no significant effects along the way of life of most Filipinos in the UK. They will still continue steadily to patronize Filipino products.


The option of business hardware and software in the market will provide an opportunity for Filipino merchants to accomplish a good profit percentage through proper control of their inventory. Hence, the investment created by Pinoy Supermarket using one of the point of deal system will help it increase processing customer buys and automate its information system. This requires good customer support and efficiency in its operation, which translates to sales and profitability.


Reduction of carbon footprint is one of the highly emphasize issues regarding climate change. It is apparently a concern of conserving energy and normal water usage for business establishment since an increase in the consumption of energy, electricity and drinking water, also increases directly or indirectly carbon emissions. Evidently, Pinoy Supermarket will it really share by minimizing the use of electricity which is one of the biggest adjustable cost in its procedure.


There are limitations as to the sort of products a store can sell. The existing business set-up of Pinoy Supermarket is limited to Food and non-alcoholic beverages. It means it cannot sell Filipino beers and hard liquors such as San Miguel Beverage and Tanduay, which are known їЅCash CowїЅ brands in the Philippines. It could neither sell cigarettes like Champion and Hope, from the Philippines. These brands of products had been sought after by Filipinos in the UK.

It is not also possible to sell all known brands from the Philippines since a few of the product didn't meet European union and UK requirements. Thus, Pinoy Supermarket can only just sell Filipino products which have been duly approved for sale in the united kingdom.

Excerpts of Implementation Plan

Strategy Goal/Objective Timetable

I. Better Than others Strategy Differentiation from Rivals/ Brand Setting to be remembered as Market leader inside a yr and a one half 01 April 2010 - 01 September 2011

a. Selection of Filipino Products

b. Selection of Local Products

c. Store Location

d. Allied Services: Remittance/Forwarding

II. Revenue Strategy I. Increase Volume of Sales by 7% monthly with in the 1st half of the year II. Reduced amount of operational expenses 15 April 2010- 15 Sept 2010

Volume Improvement

a. Sales Stimulation

"Voucher for a Free Money Transfer Fee" This however is at the mercy of the accumulated purchase as shown on the receipts i. e. , їЅ500 for a їЅ5 Free Voucher

b. System Advertising 01 April 2010- Continuous

"Materials for cooking are sold as a set at less price than bought individually"

Margin Improvement 01 April 2010- Continuous

a. Repricing

"products are sold in size than retail at lesser or discounted price i. e. , 4 packs of noodles for їЅ1 rather than їЅ1. 09in total when bought individually"

b. Cost Control NA

"Suppliers will be asks to provide their own merchandiser to display their items"

"Work with and develop Multi skilled workforce" 10 April 2010- 10 March 2010

"Assert discount rates from Supplier for their products. The discount rates will enhance the profit of the store" NA


Pinoy Supermarket is the hottest Filipino store reselling an array of Filipino products in London, UK. Its market specific niche market is Filipino immigrants who were either permanent citizen, non permanent or undocumented and most are economically effective or used. However, there is a need for Pinoy Supermarket to position itself for development since it includes only significantly less than 1% share of the estimated market size of їЅ397 million pounds.

Its unique providing proposition to be їЅa one stop shopїЅ for Filipino customers will effectively differentiate itself from the competition. By carrying a wide range of Filipino and local products, and offering of services in money transfer and cargo forwarding under one rooftop, it will permit it to draw in and hold on to Filipino customers and little by little catch more market talk about.

Customer commitment should be one of the key factors for success signals to be developed by Pinoy Supermarket since at some point in time other Filipino vendors will challenge its primary business competence with added variants. At the level of the competition, Pinoy Supermarket can out manoeuvre its competitors primarily due to its huge devoted customer basic.

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