Thesis (Master in Management) University of the Philippines Mindanao, 2024

The home furnishings industry has experienced growth, but traditional brick-and mortar stores face challenges from online competition, especially among millennials. Low product differentiations adds pressure, highlighting the importance of customer loyalty and acquisition. Shifting consumer preferences present ongoing challenges for retailers, particularly in competitive markets such as Davao City. ETLC Home Furnishings Corp. (ETLC HF) has been in business for over 10 years. They manufacture their own furniture and retail it directly to customers, alongside a selection of appliances. Their business model targets both the upper lower class (Class D) and middle class (Class C), with most sales made on credit and offering flexible payment terms of up to 25 months. While the company is thriving, it struggles to expand its market share in Davao City. The owner acknowledges a lack of focus on marketing and relies heavily on freelance sales agents for sales, which has been the primary source of revenue. Furthermore, the organization exhibited low inventory turnover, extended collection periods, and diminished liquidity throughout the period from 2021 to 2023. To gain a competitive advantage and attract more customers, especially in the online market, the organization must adapt to online marketing and enhance its visual merchandising efforts to maximize sales. This strategic plan aims to maximize ETLC HF’s potential by increasing customer engagement, brand loyalty, and the customer’s willingness to pay. The conceptual framework of this strategic plan combines the business unit strategic- planning process of Kotler & Keller (2016) with the framework of Roggeveen et al. (2021), focusing on brand-consumer identity congruence. The plan involves defining the business mission, analyzing internal and external environments, and industry structure, utilizing Porter’s five forces for competitive analysis. Goal formulation targets identity congruence, while strategy formulation emphasizes creative merchandising and innovation. Implementation follows the Retailer-Consumer Identity Congruence Framework, with feedback and control mechanisms ensuring alignment with objectives. After analyzing the external and internal environments through External Factor Evaluation (EFE) and Internal Factor Evaluation (IFE), alternative strategies were developed. These strategies were generated by matching the strengths and weaknesses to the opportunities and threats (SWOT) of the organization. To identify the best strategy, a quantitative strategic matrix (QSPM) was utilized. Following QSPM analysis, the selected strategies focused on innovative merchandising approaches. These strategies aim to engage customers both offline and online, aligning with the organization’s goals of enhancing customer experience and increasing brand visibility. Implementation of these strategies is intended to address the identified issues within the organization.