Market week participation as a promotional tool for stuffed toy exporters

• Main Authors: Altonaga, Enrico, Bringas, Kenneth, De Leon, Myla, Hernandez, Tricia, Juan, Rommel, Maceda, Manuel, Magtoto, Joyce, Manalo, Carlo, Ng, Roswell, Razonable, Cecile, Vergel de Dios, Francis V.
• Format: text
• Language: English
• Published: Animo Repository 1993
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16744
• Institution: De La Salle University

The growing importance of achieving an export-led growth is worth considering. As shown by many Asian countries today, pursuing strategies designed to promote exports reveal productive results. For one, the country's Asian neighbors, such as HongKong, Singapore, Japan, Taiwan, South Korea, Malaysia and Thailand have achieved tremendous economic progress over the last decade. This is primarily because government policies were directed towards trade reforms, particularly trade liberalization and promotion. The utter relevance of export promotion has brought about the development of this study which aims to establish the effectiveness of Market Week participation as a promotional tool for stuffed toy exporters. The export potentials of this particular export product category cannot be discounted. The mere fact that most Filipino craftsmen are endowed with indigenous styles and designs with their work provide the country with comparative advantage relative to other competitors. Coupled with lower labor costs and increasing government support, through auxiliary government agencies (PHILTOY, DESIGN CENTER OF THE PHILIPPINES, etc.) and the liberalization of trade and exchange rates, further suggest the progressive trend of stuffed toy exports in the future. The study is basically a research paper where primary as well as secondary data were used, through survey results, CITEM documentations and pertinent research materials. The study consists of six parts, namely: Introduction, International Market for Stuffed Toys, Current Situation of the Philippine Stuffed Toy Industry, Market Week Analysis, Conclusion and Recommendation. Relevant findings of the study reveal main international markets for locally manufactured stuffed toys include the U.S., U.K., Germany, France and Japan. The size of the overseas markets is considered to be sufficient. Serious competition exists with Korea, Hongkong, Taiwan and Thailand because of their advantages on advanced technology, availability of raw materials and export-oriented strategies. Furthermore, the export market for stuffed toys is generally getting bigger with stuffed toys accounting for 70% of toy exports during 1990 as compared to 60% in the past years. Raw materials, however, are still sourced from other countries. Distribution channels are basically traditional such as boutiques, giftshops, department stores, etc., although with more attractive displays. In addition, channels of distribution may be done through wholesaling, retailing or trading. The target market is predominantly the export market, where children, mothers and women ages 13-19 are the target consumers. Cost competitiveness, on the other hand, on stuffed toy exports lie on entailed labor costs and shipping costs. Significant findings from the Market Week Analysis have been recorded. Total number of exhibitors, buyers and booked orders for toys and games have been increasing from the 13th to the 17th Gifts, Toys, Housewares, and Fashion Accessories Market Week. Evaluation of the fair proper by selected stuffed toy companies are encouraging. In relation to the fair's assessment, the participants' objectives for attending have been met. Generating immediate sales topped the list, followed by meeting existing buyers, observing market trends, exploring new prospects, market testing new products and exploring joint ventures have been considered. The average growth rate of booked orders from selected stuffed toy companies are favorable with Podden leading them all with a high 7.26 growth rate while Lara's hitting a low -0.18 growth rate of booked orders. The average return on investments, on the other hand, are relatively high with Benjo y topping the list with a 2,561.77% ROI and Auralyn's registering a very low -36.25% ROI. In spite of the overwhelming levels of ROI recorded by each company, it is imperative to note that earnings (booked orders) are in dollars, expenses are in pesos which only involve those within the period of the Market Week, and the future costs of production for booked sales consummated have not been accounted for, these reasons caused such high rates of ROIs. The Cost per Visitor Reached (CVR), another measuring tool for determining the Market Week's effectiveness, have posted a decreasing trend for all stuffed toy exporters from the 15th-17th Market Weeks except for Podden, suggesting an increase in the number of contacted buyers. Moreover, the regression analysis specifies the importance and significance of increasing booked sales vis-a-vis the exhibitors' participation, such that an increase in buyers and booked orders will likely result to an increase in exhibitors' attendance during the Market Week. Finally, the study concludes that, indeed, Market Week participation is truly an effective tool in promoting stuffed toy exports based on the findings and analysis made on the 13th to the 17th Gifts, Toys, Housewares, and Fashion Accessories Market Week. Specific measures to improve the Market Week have been recommended and other areas for further research have also been pointed out. The study is basic