The PAL Shop: A proposed retail plan for a Philippine Airline gift shop

• Main Authors: Amador, Maria Ricelda P., De Guia, Ayeela Zera L., Garong, Rodrigo Antonio R.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17518
• Institution: De La Salle University

It is observed that passengers often ask for airline items from the cabin crew. A survey was then conducted in the domestic and international wing of the Centennial Terminal for the feasibility of setting up a souvenir/gift shop. 80% expressed interest (both domestic-and international-flight respondents) in various Philippine Airlines (PAL)-branded items like shirts, mugs, and key chains. It has been found that passengers aged 31-qbove have set higher budgets for airline items and are more likely to have bought airline items and other souvenir s from the airport; this group is the set target market of the store, which is further narrowed down to business and leisure flyers-the more frequent travelers. Surveys revealed that frequent are more likely to have bought airline items and souvenirs. The industry study showed that travel is increasing; that Filipinos like buying souvenirs or pasalubong to relatives and friends, although most are price-sensitive; there is more potential in selling airline items in the international market; all these are good signs for starting a store at the airport. The setbacks include tough competition from prolific souvenir stores at the airport, and the souvenir industry is not that developed yet. PAL is very much capable, in terms finances and competence, of expanding its current line of airline items (six items) to a proposed 21 different items in the store which include apparel, bags, desk/office items, aircraft models, and other miscellaneous items. The main goal of the store is to increase the airline’s service by addressing the observed desire of passengers, and to promote the PAL brand. The store will be set at the pre-departure area of the airport and merchandise will be set premium prices to reflect the elegance and premier of the airline. Banners, magazines, emails, online announcements, and an opening launch party will be used to promote the store which would lead to profits of Php450,000 for the domestic branch and Php730 000 for the international branch by the second year. The store, which is open everyday, will have five employees and it will be managed by the Product Research and Department of PAL. Total initial investment is estimated at Php23 million.